...Case Analysis for Culinarian Cookware 2006-2010 |Submitted By: |Andrei Grechko | | |Shane Johnston | | |Nakia Lape | | |Kyle McDaniel | | |Kevin Niehaus | | | | Prepared for Ned Jackson, MKT 625 March 28, 2010 Table of Contents Executive Summary Situational Analysis A. Environment I. Economic conditions and trends As evidenced by the case material, the US cookware market experienced growth by generating approximately $3.36 billion in revenues from 2002 to 2006. However, due to economic recession of the recent years (2008-present), cookware market faced new challenges and opportunities. The following developments appear to create several opportunities for cookware manufacturers. Due to slow economy and unemployment, consumers cut back on dining out and defer back to home meals. According to Cookware Manufacturer’s Association (CMA), consumers have re-discovered their kitchen during 2009. Thus, visits to restaurants, carry-outs and frozen entrees have been replaced by meals prepared in the home kitchen. This trend highlights the possibility of increased demand on cookware products. In the foreseeable future, economists predict growth in private and commercial real-estate markets (by 2013). This potential development...
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...1. Describe consumer behavior in the cookware market. How is cookware bought? How is it sold? What are the implications for Culinarian's marketing strategy? Consumer behavior: • Generated $3.36 billion in revenues in 2006 • Could be classified on the basis of: price, quality, material (Aluminum, Stainless Steel, Porcelain, cast iron and copper). • Copper was the most expensive and most preferred by professional chefs due to superiors heat conductivity • Manufacturers had to balance the need for performance, time saving features, and aesthetics with price • Growing trend: Offering colored designer cookware that matched the kitchen decor and Product lines endorsed by and branded with a name of a widely recognized television celebrity chef How it was bought: • Cookware was bought by piece or in a boxed sets ranging from 5 to 14 pieces. 5 piece set comprised a 10 inch fry pan, a 2 quart sauce pan with lid, and a 4 quart stockpot with lid. How it was sold: Retail distribution outlets: • Kitchen specialty chains (Williams Sonoma) • Local specialty stores, department stores (Macy's) • Mass Merchandisers (Walmart) • Grocer Stores (Kroger) • Direct TV Sales (Home Shopping Network) • Online Retailers (Amazon) • Catalogues (Manufacturers direct mailings) Sales were seasonal- High during May-June (weddings), November-December (Christmas) Implications: Positive: • Widen distribution network, distribution partners need to be increased and they are bound to join and...
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...Case Analysis for Culinarian Cookware 2006-2010 March 28, 2010 Table of Contents Executive Summary Situational Analysis A. Environment I. Economic conditions and trends As evidenced by the case material, the US cookware market experienced growth by generating approximately $3.36 billion in revenues from 2002 to 2006. However, due to economic recession of the recent years (2008-present), cookware market faced new challenges and opportunities. The following developments appear to create several opportunities for cookware manufacturers. Due to slow economy and unemployment, consumers cut back on dining out and defer back to home meals. According to Cookware Manufacturer’s Association (CMA), consumers have re-discovered their kitchen during 2009. Thus, visits to restaurants, carry-outs and frozen entrees have been replaced by meals prepared in the home kitchen. This trend highlights the possibility of increased demand on cookware products. In the foreseeable future, economists predict growth in private and commercial real-estate markets (by 2013). This potential development could boost demand for cookware when consumers, for example, start to move in to newly bought houses. However, the demand for cookware products would not move in the same direction for all price ranges. Due to elastic demand for high-end and luxurious products, it is reasonable to expect that consumers will try to either buy less of premium priced items, or try to shift their preferences...
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...JOHN A. QUELCH HEATHER BECKHAM Culinarian Cookware: Pondering Price Promotion On November 6, 2006, the vice president of marketing of Culinarian Cookware (Culinarian), Donald Janus, and the senior sales manager, Victoria Brown, met to discuss whether or not the company should offer a price promotion for the company’s line of premium cookware in the coming year. These two executives had very different views on the value of a price promotion and the role it could play in the company’s marketing strategy. Janus expressed his opinion first: Brown knew that Janus was determined above all else that Culinarian should remain known as a high-quality product and an elite brand—“an American icon” was Janus’s term—and that all good things would flow from that status. He grew wary when he perceived, rightly or wrongly, a hint of a threat to that status. Still, Brown was obliged to be candid. She said: Do No I believe we need to be bolder with our price promotions. The number one complaint that my sale force hears from the trade accounts is the lack of consistent and meaningful price discount events. Providing a 30% discount promotion will increase commitment and support from the trade and will boost our overall brand awareness. It’ll also provide us with new customers who would otherwise not purchase because they feel the suggested retail is too high and encourage current customers to immediately purchase additional pieces. And yes, I think if the data in the consulting study...
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...Culinarian Cookware: Pondering Price Promotion 1) Consultants Nonpromotion %20 promotion Unit 119,504 184,987 Price 72 62,4 Variable Cost 52.05 52.05 Profit Contribution 2,384,105 1,914,615 -469,489 (sales profit loss) -99,332 (cannibalization) 39,54 (inventory saving) Mrs.Brown -529,281 Nonpromotion %20 promotion Unit 59,871 184,987 Price 72 62.4 Variable Cost 38.64 38.64 Profit Contribution 1,997,297 4,395,291 2,397,994 (sales profit) I think that 2004 promotion was not profitable. Following reasons can be considered when deciding whether is it profitable or not besides calculations; -The promotion made retailers happy because they did not have to store free gifts and they were able to sell more products to the customers but I dont think it made customers that much happy because only %30 of the customers sets price as their first priority when they make purchase decision. - CX1 sales only increased in promotion period and it was not that high after the promotion. -Price discount might have damage brand image since it is aim is to compete in higher segment. -When it comes to cannibalization; I believe we do not have enough data. There may be negative effects of cannibalization in promotion’s success but we need more data to take into consideration. -The data also shows that price discounts are better attract cost sensitive customers but not quality and brand sensitive customers -This promotion was more helpfull...
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...for their homes, customers bought those which matched the interiors of their homes. So they preferred aesthetics of the cookwares. Whenever the discounts were given, a significant increase in sales was observed. Half of the people bought only those brands which they knew about. So this left a lot to do for promotions and advertising team of all companies. This is due to the fact that the customers preferred quality, features and price of cookware the most among the other factors. Culinarian focused more on channel promotions and hence did not spend much on the mainstream advertising as in TVs and other mainstream media. They promoted their premium products mostly through the Magazines which targeted higher class people. This led to a low popularity of the middle and lower range of products of Culinarian and lower awareness among people. Since most of the customers felt brand is a very important factor while buying these products, Culinarian lost out on many of the customers. But, since Culinarian advertised itself through some cookery shows, it had created its own space...
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...Auguste Escoffier Jessica Hostetler Basic Food Theory and Skills January 27, 2014 Auguste Escoffier has done more for cuisine than any other chef. He is known as the “Chef of Kings-King of Chefs”. He was also known as the “Father of Classic Cuisine”. He has made the art of cuisine something to be respected. He started out cooking at a very young age. When he was thirteen, he apprenticed in Nice, and quickly moved upward in his chosen profession. In fact, worked for around sixty-one years! He became so famous that he cooked for many popular cultural figures, some being Edward VII and Kaiser Wilhelm II. He was famous for a good reason though. He simplified modern cuisine in many wonderful ways. He eliminated unnecessary garnishes, reduced the number of courses served in a meal, he made more of a use for seasonal foods, and so many more things. He basically just simplified the art of cuisine. He said, "Because it is simplified on the surface, it does not lose its value. On the contrary, tastes are constantly being refined and cooking must be refined to satisfy them." Auguste Escoffier had many accomplishments he was even known to be better than Marie-Antoine Carême. A big accomplishment of Escoffier’s had to do with Grand Cuisine. Grand Cuisine consisted of very complicated dishes. It had rich sauces and garnishes that sometimes outweighed the main ingredients of the dish. Escoffier simplified the way of Grand Cuisine making it less complicated. Another accomplishment...
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...unprecedented number of workforce challenges. Primary among these challenges are the FS rate losing personnel at an unsustainable pace. This is compounded by the fact that we cannot recruit new members quick enough who desire to be an FS. In large part because of these two factors, the FS rating cannot sustain a healthy workforce to support the missions of today’s CG. An immediate and positive impact to rate retention and recruitment is to change the rating name from FS to Culinary Specialist (CS). This name change will provide a professional title which better defines what the rating does, aligns with industry standards that are more identifiable to potential new recruits, and is in keeping with our sister services. 2. The term Culinarian is an all encompassing professional title that signifies an expert in the entire world of food preparation and management. The FS rating has significantly evolved from an occupation that relied on processed, ready-to-eat style of meals, into a hands-on profession specializing in culinary arts and providing healthy and delicious meal options. The rating title of CS projects a more professional image, both in and out of the Coast Guard. An excerpt from the FS Mission Statement reads: “We demonstrate culinary arts excellence through professional development, talent, personal creativity, and resourcefulness.” Changing the rating name to CS will bring the rate in line with the mission statement. 3. CG members in the CS rating will...
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...Sample Case Scenarios Via: Harvard Business School Scenario 1: Clean Edge Razor: Splitting Hairs in Product Positioning description After three years of development, Paramount Health and Beauty Company is preparing to launch a new technologically advanced vibrating razor called Clean Edge. The innovative new design of Clean Edge provides superior performance by stimulating the hair follicles to lift the hair from the skin, allowing for a closer shave. The company has already decided to introduce Clean Edge into the men's market where it has a strong presence. Jackson Randall, the product manager for Clean Edge, struggles with how best to position the product for the launch. One strategy is to release Clean Edge as a "niche" product, targeting the high-end market of fastidious groomers looking for superior skin care products. Another strategy is to release the product into the highly competitive mainstream razor market where the product can be positioned as the most effective razor available. Randall meets internal resistance to the mainstream strategy from the product manager for the company's current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision--not just for Clean Edge, but for its effect on the entire company. Learning objective: Explore issues associated with strategic product positioning. Review new product development...
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...INSTRUCTOR Dr. Jeri Jones FROM: Praneetha Tempalli Donghyun Kim Jennifer Hancock Akhil Toshniwal External Environment Analysis Specific environment analysis 1. Rivalry of existing firms- Rivalry amongst existing firms is pretty high. There are large numbers of competitors. Chains like illycaffe, Lavazza, Nescafe and Bobcorp are some of the competing firms as big as Starbucks with a strong hold in different geographic regions. Thus competing with these firms is quite hard. As there is no differentiation and switching costs for customers, competition is dominant. As firms invest millions and billions into this business, they fight till the last cent. 2. Potential Entrants- There are two ways to look at potential entrants. First thought would be the threat of Mom and Pop Coffee houses. They seem to be pretty high as it is easy for anyone to start a coffee house with less available resources. Second thought gives us an idea that if we compare the size of new entrants to the size of Starbucks the same threat seems negligible, as it requires vast amount of resources and time to be in competition with Starbucks. 3. Bargaining power of buyers- Products offered by different firms is identical and undifferentiated, moreover there are no switching costs for customers so bargaining power of buyers is apparently high. 4. Bargaining power of suppliers- Bargaining power of suppliers is high as coffee beans are the single most important ingredient to Starbucks and...
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...One website said that the origin of Mollie was Irish (“Names”). Another website said that it had a Latin origin (“Think Baby Names”). The name Mollie derives from the biblical name Mary (Dunkling). There are different meanings behind the name Mollie, but one website stated that Mollie means “star of the sea” (“Think Baby Names”). Mollie has decreased in popularity since the 1990s (“Oh Baby! Names”). The name Mollie is most popular in the state Kentucky (“Mooseroots”). I believe spelling Mollie with an ‘ie’ gives it a more unique feel. I came across a few famous people who spell Mollie the same as me like the chef and culinarian author, Mollie Katzen; and the Russian-American anarchist and activist, Mollie Steimer (“Oh Baby! Names”). After gathering this information, I started to research about my middle...
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...MARKETING COURSE Articles Books & Chapters Cases Course Modules Online Courses Simulations 2012 MATERIALS Harvard Business Publishing serves the finest learning institutions worldwide with a comprehensive catalog of case studies, journal articles, books, and eLearning programs, including online courses and simulations. In addition to material from Harvard Business School and Harvard Business Review, we also offer course material from these renowned institutions and publications: Babson College Business Enterprise Trust Business Expert Press Business Horizons Magazine California Management Review Darden School of Business Design Management Institute HEC Montréal Centre for Case Studies Ivey School of Business International Institute for Management Development (IMD) IESE Business School INSEAD John F. Kennedy School of Government Kellogg School of Management Perseus Books Princeton University Press Rotman Magazine Stanford Graduate School of Business Sloan Management Review Social Enterprise Knowledge Network Thunderbird School of Global Management Tsinghua University University of Hong Kong Customer service is available 8 am to 6 pm ET, Monday through Friday. Phone: 1-800-545-7685 (1-617-783-7600 outside the U.S. and Canada) Tech support is available 8 am to 8 pm ET, Monday through Thursday, 8 am to 7 pm ET Friday. Phone: 1-800-810-8858 (1-617-783-7700 outside the U.S...
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...RED LOBSTER: MARKET RESEARCH REVEALS WHATS FRESH TODAY BACKGROUND 1968: Foundation: Red Lobster was founded in 1968 by entrepreneur Bill Darden and Charley Woossby. Originally billed as a “Harbor for seafood Lovers”, the original restaurant in Lakeland, Florida, was followed by several others throughout the Southest. 1970: General Mills acquired Red Lobster in 1970 as a five-unit restaurant company and rapidly expanded the company nationwide. As it reached more parts of the country, Red Lobster continually introduced guests to fresh dishes that quickly became favorites, with many guests getting their first taste of calamari, snow crab and Key lime pie here – not to mention the fact that it is where popcorn shrimp was invented. (after 1970, until 1980) In 1980, this year was one of the most important for the company, reaching and being in their stage of maturity, a stage in which all companies desire to be in there. In 1983, Red Lobster opened its first restaurant in Canada (Windsor, Ontario) Finishing, in 1995, after decades of success and growth, Red Lobster, together with Olive Garden and later Bahama Breeze, became part of Darden Restaurants, with Joe at the helm until 2005, when he turned the reins over to current CEO and Chairman Clarence Otis. Over the years, their passion for seafood and delicious experiences has kept Red Lobster evolving. Their menu has grown and changed with their guests’ tastes and their ability to bring the best of the sea to your table...
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...Dunkin Donuts Case Study Report Dunkin Donuts : Betting Dollars on Donuts Acknowledgement We are really grateful to course instructor for all kinds of informative information and valuable advice. We are also very grateful to the group members who helped in preparing this project. Executive Summary Dunkin' Donuts is a business in food retail. They are the world's largest coffee and baked goods chain. Dunkin’ Donuts have been in business since 1950 and have been franchising since 1955. This franchise serves more than 2 million customers a day. Dunkin' Donuts sells 52 varieties of donuts and more than a dozen coffee beverages as well as bagels, breakfast sandwiches and other baked goods. It is important to look at consumer usage and future trends before entering into the market. Dunkin Donuts is part of the snack shop market. The snack shop market had almost 10 billion is sales worldwide in 2003 alone. Snack shops have an advantage because they are popular among all consumer groups. Dunkin’ Donuts has retained a consistent database of customers, while also gaining additional consumers through the progression of time and emergence of newer markets. The report discusses task environment that Dunkin’ Donut operates in. It describes the competitive environment and its customer base. The company follows different competition strategies and has goals to achieve through them. We also discuss the external environment of the company which includes the socio-cultural...
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...DUNKIN’ DONUTS PRESS KIT July 2012 Dunkin’ Donuts, At-A-Glance Dunkin‘ Donuts is owned by Dunkin' Brands Group, Inc. (Nasdaq: DNKN), one of the world's leading franchisors of quick service restaurants. Dunkin‘ Brands is the parent company of both Dunkin‘ Donuts and Baskin-Robbins. Dunkin' Brands Group, Inc. is headquartered in Canton, Massachusetts. At the end of 2011, Dunkin‘ Brands Group, Inc. had franchisee-reported sales of approximately $8.3 billion. Dunkin‘ Brands, the parent company of Dunkin‘ Donuts and Baskin-Robbins is one of the largest QSR (quick service restaurant) companies in the world with nearly 7,000 retail shops in nearly 60 countries worldwide. Dunkin‘ Brands Group, Inc. has a nearly 100 percent franchised model. There are more than 10,000 Dunkin‘ Donuts restaurants in 32 countries. Dunkin’ Donuts Locations (For Q1 2012) Countries Aruba Bahamas Bulgaria Canada Chile China Colombia Ecuador Germany Guatemala Honduras India Indonesia Korea Kuwait Lebanon Malaysia New Zealand Oman Pakistan Panama Peru Philippines Puerto Rico Qatar Russia Saudi Arabia Singapore Spain Thailand United Arab Emirates United States U.S. Alabama Arizona Colorado Connecticut Delaware Florida Georgia Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Mississippi Missouri Nevada New Hampshire New Jersey New Mexico New York North Carolina Ohio Oklahoma Pennsylvania Rhode Island South Carolina Tennessee Texas Vermont...
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