1. Culinarian Cookware: Pondering Price Promotion
Group 5: Team Case Number One
Andrei Grechko
Shane Johnston
Nakia Lape
Kyle McDaniel
Kevin Niehaus

2. Organization Objectives and Constraints Financial Condition
Management Philosophy
Organizational Structure
Organizational Culture
Summary of Strengths and Weaknesses
Implications for Strategy Development
Target Market Analysis
Alterative Selection

3. Four Strategic Priorities in 2006
Objectives
Four Strategic Priorities in 2006
Widen distribution network
Increase market share of the premium cookware segment
Preserve prestigious image
Continue to capture revenue growth of at least 15%, while maintaining pretax earnings of $12.5 million.

4. Determine if a price promotion is necessary.
Most Imperative Goals
Determine if a price promotion is necessary.
Develop the details of a marketing strategy that is consistent with the company’s overall strategic objectives.

5. Constraints The preservation of brand equity
Perceived negative impacts from the 2004 price promotion
Highly selective distribution channels

6. Financial Condition

7. Financial Condition

8. Management Philosophy
Paternalistic
Positive: Two-way communication, which motivates workers.
Negative: Slows down the decision making process.

9. Organizational Structure
Structured by Function
Positive: Makes efficient use of specialized resources and makes supervision easier.
Negative: Difficult to get quick answers, determine accountability, and may be difficult working with other departments in a unified way to achieve the organization’s goals.

10. Organizational Structure

11. Organizational Culture
Pride. Pride in having unparallel product quality, most advanced performance technology, and strong dealer support.
Built on brand equity. Every decision takes into account the preservation of Culinarian’s prestigious name and image.

12. Strengths and Weaknesses
Culinarian’s
Strengths and Weaknesses

13. Potential Resource Strengths and Competitive Capabilities
Clear strategic direction.
Core competencies in quality and performance technology.
Strong brand name image/company reputation.
Stronger dealer relationships than key rivals.
Leader in metallurgy technology.
Proven product innovation capabilities.
Good management philosophy.
Employees are motivated.
A strong financial condition.
A distinct competence in utilizing internal and external consumer research.
Business decisions are highly scrutinize before implemented.

14. Potential Resource Weaknesses and Competitive Deficiencies
Weak advertising and promotion.
Losing market share because of attachment to brand name image.
Flawed data analysis by a third-party consultant.
Limited distribution channels.
Management is cautious to pursue bolder price promotion.

15. Implications for Strategy Development
The preservation of brand equity could prevent Culinarian from considering a price promotion, fearing that it would cheapen the products’ image.
Perceived negative impacts from a price promotion offered in 2004 are heavily influencing the decision; however, in reanalysis it may be found that the promotion was in fact beneficial.
The company is very selective in how merchandise is distributed, which limits the market in which the products are sold.
Weak advertising and promotion policies.

16. Target market Men and woman between ages 30 to 55,
With a household income of 75k +
The group tends to care more about what the product can do rather than how it looks.  
A large likely hood of watching cooking shows and then purchasing cookware with familiar names of cooking celebrities or brands used by those seen on shows.  
Consumer wants to compare brands and products
Want to have the biggest “bang” for their dollar. 

17. Brand Extension
Strategic Alternative Selection

18. Brand Extension Benefits: Costs:
Would be able to offer other premium culinary products to complement their cookware
Use the new support products as “gifts” during promotional events
Increase the prestigious brand image
Costs:
Would need to understand:
What materials would be needed
How to produce new products outside their expertise
How to market the items