To: Donald Janus
Subject: Advising a price promotion plan for Culinarian cookware
Culinarian is a strong brand that is ready for a successful 2007. We have reviewed the marketing mix of push vs. pull tactics, compared them to the industry, and examined past performance in this area. Most importantly, we have examined 2004’s price promotion and drawn conclusions that have allowed us to make recommendations for this coming year. Outlined below are our findings, with accompanying appendixes. Culinarian uses an acceptable blend of push and pull tactics; they primarily utilize push for their premium cookware products. This is advantageous for Culinarian because the majority (55%) of consumers
…show more content…
Though these timing slots are already “reserved’ by competitors, trade and account managers have strong negotiation arguments. Culinarian provides them with the best gross margins, even while running price promotion –still above one point compared to Le Gourmand and Robusto, which provide a 48% gross margin. Also, account managers should increase visits and enhance retail merchandising incentive programs (push), offering exceptional retail clerks one additional free piece of cookware during price promotion periods. We recommend encouraging the retailers to promote the promotion locally. Since the promotion will be run on peak seasons, this kind of advertising will reach a higher number of customers and favorably encourage them to make their first purchase of Culinarian’s cookware, while still encouraging existing users to buy additional units of the brand. Culinarian has indeed seen success in the past with price promotions. The higher revenues generated encourage our team to recommend an annual price promotion. Most importantly, the price promotions will renew a motivation in the sales force to make it better each year, making room for innovation in the promotion process, and satisfying the consumer’s need for “push” advertising.
Appendix 1: Buyer motivation’s factors