Culinarian Cookware Case Study Essay

To some extent, it makes sense. Culinarian takes a good advantage of utilizing push furtherance for their premium cookware products. Beca substance abuse 55% of consumers with income over $75000 would be drawn to stores with attractive displays or informed staff to shop for cookware. In addition, 20% of them would respond to a sale and only 10% would respond to multimedia advertising. At the same time, Culinarian have sales 12 visits per year while other competitors only have 6. It also offers a higher retail border for its products which is 52% and builds an incentive program for retail clerks. According to the above analysis, the majority of the market would respond positively to the push tactics. However, Culinarians pull promotions are relatively ineffective. Managers of Culinarian always focus so much on advertising expense which is higher than average, that is, 4% of sales versus 3% of premium competitors. Meanwhile, some of them ignore that hurt promotions are beneficial t o a pull strategy.3. Was the 2004 promotion profitable? Calculate the profitability using Browns and theconsultants logic. How would you calculate it?According to the practice incremental contribution impact =(actual units * actual contribution forecast units * normal contribution) We can calculate the profitability of Browns $23.76 * 184,987units $33.36 * 59,871units = $2397994.56 The consultants $10.35 * 184,987units $19.95 * 119,504units = $469489.35 number contribution Nonpromoted 20% promotionBrown $33.36=($72-$38.64) $23.76=($62.4-$38.64)The consultant $19.95 $10.35So, according to Browns logic, the promotion of 2004 is profitable. However, using the consultants logic, it can conclude that it upset profit.4. . What are some other possible promotion strategies for Culinarian? Recommend whetherCulinarian should run a 2007 price promotion. Which promotion/terms (which products topromote, how, how much, when, how frequently, and for how long) would you suggest.Other promotio n strategiesA. We can use contests as a promotion strategy for Culinarian. Because people like to win prizes, if consumers take part in those contests, it has a good opportunity to promote its gull and put its logo and name in front of the public rather than make money through a hard-sell campaign.B. Another way is to encourage genuine customers to refer new customers to shop Culinarians products, which is the referral incentive program. We can use free products, big discounts and cash rewards as the incentives you can use. It is a great promotion strategy to leverage Culinarians customer base.Suggestions of 2007 price promotionThe company should run a price promotion in 2007. It can promote the boxed in(p) set of cookware, because considering cookware bought as gifts would help gain more market shares. And the promotion should occur from April to July, in order to capture the majority of the wedding market. approximate that if a person buy a 5 tour set for a wedding , and then the newly married couple may assume some more items and would purchase them at full retail. This Price promotion will not cheapen the prestigious image because the cookware will so far be priced in the premium cookware price range. Besides, it still should be a 20% discount for consumers who purchase on all 5 piece sets or sometimes 3 or single piece items and retailers can take a 48% margin on the items.