Culinarian Cookware

1. Through consumer research, Culinarian Cookware was able to identify the consumer segment(s) that favored their products. Study results showed that 75% of their customers were between the ages of 30 and 55, with 82% of buyers being women. Additionally, 70% of households who purchased Culinarian products had a household income greater than $75,000, and 60% considered cooking to be their number one hobby. When customers consider purchasing Culinarian Cookware, they undergo the typical consumer buying/decision-making process. The first step is “Need Recognition”, where a customer realizes that they have a need for new/updated cookware for their home. Second, a customer begins the “Information Search”, and gathers information on cookware through trade publications, celebrity endorsements, family and friends, etc. Third, the customer begins the “Evaluation of Alternatives”, considering the pros/cons for Culinarian Cookware as well as the competing brands. Next, the consumer settles on a Decision/Purchase after gathering information and comparing alternatives. Finally, the customer undergoes Post-Purchase Evaluation, by using the product, showing it off to friends, and continuing to monitor how it compares to new products for the next several months.

2. When evaluating Culinarian’s strengths and weaknesses, it is clear that their greatest strength is their ability to produce high-quality products with advanced performance technology. They have consistently proven to be the leader in terms of product innovation in the culinary field. Culinarian also benefits from a consistent marketing image, strong brand awareness and company reputation, and experienced sales managers. These attributes have given Culinarian the advantage of having strong relationships with product retailers. Some of Culinarian’s key weaknesses are their monotonous promotions, weak advertising and promotion, outdated brand-image positioning, and flawed data from consulting studies on price promotion. It makes more sense for Culinarian to use a “push-style” promotion, since their customer base is affluent, product-knowledgeable, and discerning. Techniques such as attractive displays, highly knowledgeable staff, and cooking demonstrations would all appeal to the target consumer base. Furthermore, consumers who already own Culinarian Cookware might react negatively if they feel the product has been cheapened or quality compromised.

3. According to Brown’s calculations, the 2004 promotion was profitable at $2,397,994.56. However, the consultant’s calculations were in the negative at (-$469,489.35). (Calculations in Appendix). [Exhibit A]

4. An alternative promotion method that Culinarian might consider is a customer referral-incentive program. They could use exclusive discounts, prices, or store credit to entice consumers to spread the word and promote Culinarian Cookware products first-hand. The benefit of this type of promotion is that

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