Pricing and Revenue management
Tom Y
5.CulinarianCookwareDiscussionQuestions.docxDiscussion Questions for Culinarian Cookware Case
In analyzing this case, your main task is to assess Culinarian’s past price promotions and on this basis, recommend what Brown/ Janus should do this year. More broadly, the issue the Culinarian managers face is to determine what role, if any, price promotion should play in Culinarian’s pursuit of long-term sales growth goals. Please address each of the following questions.
1. Briefly analyze consumer behavior in the cookware market. How is cookware purchased and sold (from both the end consumer and the channel members’ perspective)? What are the implications for Culinarian’s marketing strategy?
2. What are Culinarian’s strengths and weaknesses? Why has the company been successful?
3. Was the 2004 promotion profitable for Culinarian? Calculate the profitability using Brown’s logic and then calculate profitability using the consultant’s model. How would you calculate profitability? Provide your response in a structured way.
4. Should Culinarian run a price promotion in 2007? If so, what should be the specifics of such a promotion (e.g., product scope, discount rate, timing, communication)? If a price promotion is not suitable, think about another type of sales promotion (e.g., manufacturer rebate program, gift with purchase, sweepstakes, product placement, etc.) to recommend.
