Professional Documents
Culture Documents
SALES PROMOTION
Customer spread across all income levels with customers inclined more towards
aesthetics of the cookware eg. designer cookware matching the kitchen etc.
Professional chefs were inclined towards buying copper based cookware because
of superior heating technology
Price sensitive customer
Product quality & durability are key factors while buying cookware
Cookware was majorly a gift item as 55% either received cookware as a gift or
purchased it as a gift so its sales were seasonal in nature
Major motivators: 30% would be motivated to buy new cookware because of a
price discount; 20% would be motivated to buy because of a free gift with
purchase.
Customers attracted by attractive displays, well informed sales staff, sales, adv.
Channels for selling:
Strengths
Weakness
Competitive advantage in the form of
first mover advantage and patented Constant pressure of promotions from
technology other manufacturers throughout the year
Strong dealer support due to high The unaided brand awareness for
margins Culinarian was lesser than its main
competitors Le Gourmand and Robusto
Desired brand perception of being a
high quality product Low penetration in low to middle income
customers due to premium image and
Favoured and endorsed by experts selective channel distribution
Favourable market trends: Copper Cannibalization amongst brands due to
cookware, premium cookware price difference
matching kitchen décor
Control over advertising mediums:
Double the visits by account managers Culinarian products and promotions
to major accounts and retail seldom advertised by the trade
merchandising incentive program.
WHAT ARE CULINARIAN’S STRENGTHS AND WEAKNESSES?
WHY HAS THE COMPANY BEEN SUCCESSFUL?
Profitability Analysis
Consultants Brown
CX1 Unit Sales (March-May 2004) 184987 184987 119504 59871 184987 119504
Average Unit Variable Costs 52.05 38.64 52.05 38.64 38.64 38.64
Total CX1 Sales Contribution (A*D) 19,14,615 43,95,291 23,84,105 19,97,297 43,95,291 39,86,653
Actual Sales Contribution less normal sales contribution (4,69,489) 23,97,995 4,08,638