Culinarian

Cookware
Case Analysis & Solution

Group AI-2
•21F616 – Divanshu Pahuja
•21F623 – Ishani Saha
•21F623 – Jonpelli Sai Krupan
•21F629 – Linmay Haresh Pimparkar
•21F641 – Pranav Prakash
•21F663 – Vritti Sahdev
Product Description and Segmentation

75% of the customers are aged between 30-55

• Professional Grade collection ($300)
• Patent copper construction
PROX1

• The Advance Chef collection ($250) 82% of the customers are women

• Steel exterior with aluminium center
SX1

• The Classic collection ($200) 70% had household income above

DX1
• Aluminium exterior and center
$75000

• The Tyro collection ($150) 60% of the customers considered

• Least advanced technology
CX1 cooking to be their number 1 hobby
Performance Of The Company

Sales in 2002 Sales in 2003 Sales in 2004 Sales in 2005  Sales in 2006 Chart Title
Product
(IN 000’S) (in 000’s) (in 000’s) (in 000’s) (in 000’s)
1200

1000

PROX1 72.42 73.52 81.5 74.64 73.49 800

600

400
SX1 70.59 40.02 51.65 65.69 65.6 200

0
Sales in 2002 Sales in 2003 Sales in 2004 Sales in 2005 Sales in 2006
(IN 000’S) (IN 000’S) (IN 000’S) (IN 000’S) (IN 000’S)
DX1 215.96 330.36 397.28 484.59 600.82

CX1 266.04 397.21 459.8 356.98 389.14 PROX1 SX1 DX1 CX1 TOTAL
 Competitor Analysis
Name of Market
Competitor Product Type Share Ad Spend Promotional Activites
Price promotion
Star Chef Mid level and low end 18% 4% of sales i.e. $13 corresponded with
product million  seasonal peak sales
Price promotion
Mid level and low end 4% of sales i.e. $10 corresponded with
Kitchen Select  14% million
product seasonal peak sales

Offered gift with

Le Gourmand Premium 4% 3% of sales  purchases

Offered gift with

Robusto Premium 3% 3% of sales  purchases
Product Impact Analysis PROX-1

In  2004 In  2004 In 2005

In 2004 
In 2003 Spring (with Fall In 2005 Spring Spring (without
Levels Spring  Spring (without discount) (with discount) Discount)
discount) b

MRP $150 $150 $120 $150 $120 $150

Manuf. Selling price
(52%/48%) 72 72 62.4 72 62.4 72
Costs 52.05 52.05 52.05 52.05 52.05 52.05
Contribution 19.95 19.95 10.35 19.95 10.35 19.95
Qty sold
(in 000’s) 174.67 150.32* 275.44 184.36 204.23 110.28**
Revenue (000s) 12576.24 10821.6 17187.46 13273.92 12743.95 7940.16
Total
profit/contribution 3484.66 2998.88 2850.80 3677.98 2113.78 2200.10
(000s)
Profit lost 0 0 148.08 0 86.36 0

* The quantity sold during 2004 from March-May was 24% less than the quantity sold in 2003 from March- May. Calculations for quantity
sold have been made accordingly
** For the year 2005, the quantity sold without promotion was reduced from the original sales value in the proportion as 2004.
Product Impact Analysis PROX-1

In  2004
In 2004  In 2005  In 2005 Spring
In 2003   Fall
Levels Spring  Spring Spring (with (without Discount) 
Discount)

MRP $200 $200 $200 $160 $200

Manuf. Selling price
(52%/48%) 96 96 96 83.2 96

Costs 69.4 69.4 69.4 69.4 69.4

Contribution 26.6 26.6 26.6 13.76 26.6
Qty sold 107.83 129.39 265.89 207.02 158.50*

Revenue (000s) 10351.68 12421.44 25525.44 17224.06 15216.26

Total
profit/contribution 2868.28 3441.77 7072.67 2848.6 4216.1
(000s)
Profit lost 0 0 0 1367.5 0

*- Quantity sold was calculated based on previous year growth.

Product Impact Analysis PROX-1

In 2005
In 2003  In 2004  In  2004 In 2005  Spring  (without
Levels Spring  Spring Fall Spring (with discount)
discount)

MRP $250 $250 $250 $200 $250

Manuf. Selling price $120 $120 $104 $120
(52%/48%) $120

Costs 86.75 86.75 86.75 86.75 86.75

Contribution 33.25 33.25 33.25 17.25 33.25
Qty sold 22 22 29.65 40.69 22

Revenue (000s) 2640 2640 3558 4231.76 2640

Total
profit/contribution 731.5 731.5 985.86 701.9 731.50
(000s)

Profit lost 0 0 0 29.6 0

*- Quantity sold was calculated based on previous year growth.

Need of a Price Promotion

•For CX1 in 2004 gained

revenue worth 6365.86 with a
Increase in Profit Lost (2005- Increase in Price
profit lost of 148 i.e., 43.01% Product
revenue with/without revenue per Promotion
Line
revenue increase per profit (2005) promotion) profit lost (2007)
lost and in 2005 55.62% and
2006 still growth has been Cx1 4803.79 86.36 55.62% Yes

noted.
Sx1 2007.80 1367.5 1.468% No
•For Sx1 in 2005 just 1.48%
and didn’t promote in 2006  Dx1 1591.76 29.6 53.75% Yes
•For Dx1 in 2005 and 2006,
growth has been noticed
Ways to Promote PROX 1

Collaboration with Famous Position as the Ideal Gift From

Chefs and Cooking Shows a Caring Family Member

In-store Promotions: Highlighting Features and

Stands, Boards, Posters Quality

Targeting Live Kitchens of Promotions through Addons

Restaurants and Gifts on Purchases
 Promotion Channel

Promotion
Media

Social Media Point of sale Customer

Traditional Collaborations
marketing marketing engagement

TV Magazines Newspaper Flex boards Posters Standies Coupons Discounts Competitions Chefs Influencers Reality shows
 •Ad percentage of total forecasted net profit is 7%.
•The budget is further divided among five categories.

Promotion
Budget for
Indian
market