Case Problem:

1. Difference views between Donald Janus (the vice president of Culinarian Cookware) and Victoria
Brown (the senior sales manager) about whether to run a price promotion in 2007 or not?
2. If yes, what merchandise to promote and on what terms?

STRENGTHS WEAKNESSES
 Industry leader in cookware technology  Advertising and lack of brand awareness
 Strong brand name in quality and highest  Management differences on price
product quality promotions
 Strong relationships with retailers  Limited distribution channels
 Enthusiasm of consumer feedback  Loss of market share due to brand
 Consistent marketing image and message awareness
 Strong research and development  Seasonal sales swings
 Infrequent campaigns and lack of
consistent product promotion
OPPORTUNITIES THREATS
 Increase advertising budget  New market entrants
 Increase retailer giveaways and product  Loss of large retailers and distribution
promotions channels
 Targeting new premium cookware  Competitor advertising
demographic to build new relationships  Low home sales
and brand awareness  Uncertain economy
To solve the problem, first thing to do is doing the SWOT Analysis.

Second thing is define the recommendations / strategies that company (Culinarian Cookware) should
do to solve the problem:
1. Culinarian Cookware should run a price promotion in 2007, because:
 Based on the data from the case (Exhibit 4), as per Culinarian Unit Orders record from
2002-2006, sales in fall of each year was comparatively higher when price promotion
was introduced in 2004.
 Survey also suggests that brand awareness of Culinarian Cookware is the lowest among
competitors.
 As retailers tend to purchase more units during price promotions.
 Survey shows that 70% of consumers felt the price discount was important or very
important in their purchase decision.
2. Culinarian Cookware should consider price promotion on “The Professionals Grade Collection
PROX1” by advertising price promotion using famous celebrity chef, because:
 A price discount on the premium product and advertised by a famous celebrity chef will
keep the brand value and at the same time increase product sale.
 Direct price promotion without using famous celebrity chef on Culinarian premium
product will degrade their brand value.