Three things set The Pampered Chef, a direct selling company, apart from its competition in the housewares industry: a passion for providing unique, quality products, a dedication to ensuring customers know how to make the most of the products they purchase, and a mission to bring friends and family together through sharing meals.

Chief Executive Officer Marla Gottschalk says all three elements come together at The Pampered Chef’s trademark Cooking Shows. ‘Our consultants offer customers a unique advantage that they will not be able to find anywhere else,’ she says. ‘Retailers can’t show every customer how to use the products they sell or allow them to try them out before they buy them. At a Cooking Show, our customers are encouraged to do exactly that.

And they get to do it in a relaxed, friendly atmosphere.’ The Pampered Chef would not be the successful company it is today were it not for its unique, interactive approach to sharing its products at Cooking Shows. Consultants teach customers how simple it can be to use the tools in their own kitchens. A by-product of that education is consultants and customers learn to enjoy cooking.

In addition to new products and ideas, consultants share new recipes at Cooking Shows. The company has a team of home economists, food scientists and culinary professionals who work in the company’s six test kitchens to test products and develop new recipes. Whether customers are looking for healthy and nutritious meals, impressive appetizers or scrumptious sweets, they’ll always find a tasty selection of goodies on the menu at a Pampered Chef Cooking Show.

A look back

The Pampered Chef has a history of offering consultants the resources and support they need to create a life of their choosing along with an opportunity that encourages family interaction, especially at mealtime. That’s what Doris Christopher was trying to do for her family when she began the business more than 25 years ago. Christopher and her husband, Jay, worked together, brainstorming about business options that would suit their family’s lifestyle.

As a former home economist and educator, Christopher was able to draw on her experience to create a business that fit her life and would, in time, fit the lives of thousands of men and women around the world. By the fall of 1980, Christopher decided a home-based party plan was the right business mode. Christopher headed to Chicago’s famed Merchandise Mart to find the tools she would offer her customers. They borrowed $3,000 from Jay’s life insurance policy for inventory and set up an office in their basement.
Since that humble beginning, the company has expanded from the basement of the Christopher’s suburban home to a 780,000-square-foot headquarters near Chicago. With nearly 1,000 employees and tens of thousands of independent consultants in the United States, Canada, and Germany, the company has expanded its reach and touches the lives of men and women from every economic level. The firm was also in the UK, but is expected to close UK offices in 2015–16.

Christopher had no intention of building a multimillion-dollar business. But through the company’s growth from a one-woman shop to a successful international business, the company’s mission of bringing families together has remained constant.

Quality makes the difference

When Christopher began the business, she recognized the need for quality kitchen tools – items that would stand the test of time and deliver the desired results consistently. The professional-quality tools she became familiar with in her career as a home economist weren’t available to the general public. Today, while stores carry a variety of kitchen utensils, the quality, durability and performance of The Pampered Chef’s products continue to exceed customer expectations.

‘People come back to The Pampered Chef because they love it,’ says Independent Advanced Director Yolanda Easton, ‘not because they have to keep replacing their products.’

What makes The Pampered Chef’s tools and cookware special? Since 1980, when Christopher first searched the Chicago Merchandise Mart for the perfect tools for her business, The Pampered Chef has looked for kitchenware that meets the company’s strict standards. ‘Superior functionality and quality are our key criteria – that’s what makes a Pampered Chef product unique,’ says Lisa Flynn, Vice President of Product Development. ‘Our Product Development Team is composed of experienced specialists who have their finger on the pulse of the marketplace, and are trained to identify emerging trends and new opportunities,’ she says. ‘We add new products to our line based on the needs of our customers and our ability to improve upon what’s currently in the marketplace. And we constantly re-evaluate existing products to determine which need to be updated with improved features and technology.’

Test, test and retest

Once the team determines a product’s specifications, they work with a manufacturer to re-develop a prototype. ‘The prototypes are tested in our own test kitchens,’ Flynn says.
‘Here, they’re used and reused in an actual home environment – in the dishwasher, microwave, freezer and oven.
That way, we can accurately assess how they will hold up to normal daily use and whether they will perform the way we want them to.’’’ Staffed with home economists and culinary professionals – individuals as demanding of the products as their customers – the test kitchens are busy places. ‘We often go through several rounds of prototype development before a product meets our standards,’ Flynn says.
The company also submits products to abuse testing to determine potential breakdown points and how the product can be made more durable. ‘Every test that’s done provides learning that enables us to make the product easier to use, and more functional and durable than what’s available on the market,’ says Fran Coursey, Director of Product Development.
Along with in-house testing, the company’s Quality Assurance Team sends some products, such as cutlery and cookware, to a third party for a more extensive and scientific testing. ‘We send out anything that requires a high level of repetitive testing, for example to test the quality of steel in our cutlery and its ability to maintain sharpness,’ Flynn says.
Thorough testing, continuous evaluation and a highly collaborative relationship between the company and its vendors are critical elements in the product-development process, as are the opinions of the company’s consultants.
‘Our consultants are another important source of information and inspiration,’ Coursey says. ‘They are our front line, so to speak, because they’re out there every day talking to customers, hearing what their needs are. We encourage our consultants to share their product ideas with us. They often give us feedback on new products they would like added to the line, as well as suggested improvements for existing products.’

Dishing out cooking skills in a fun way
With so many women entering the work force full time in the late 70s and early 80s, Christopher knew that, in addition to offering quality kitchen tools, educating her customers about using them would be important. ‘What I considered simple, basic, essential tools were things others didn’t have in their kitchens, much less know how to use,’ she says. Cooking Shows continue to provide customers with tools and resources that help them save time in their kitchens. Retail stores simply can’t compete with this fun, hands-on approach. For many consultants, the knowledge that they’re helping customers by offering them a valuable service is extremely rewarding.
‘I’m teaching my hosts and guests something that allows to decrease the stress around family mealtime by giving them the tools to make cooking so much easier,’ Independent Director Deb Skrzynecki says. ‘I love seeing their faces light up and hearing them say, “Hey, I can do that!”’ Consultants learn not only about tools through The Pampered Chef, but about ingredients and meal preparation. That education gives consultants the confidence to put their own twists on Cooking Shows. Theme shows are one way consultants share their enthusiasm for particular culinary tastes. From ‘death by chocolate’ shows and Italian feasts, to Cooking Shows focusing on health-conscious cooking, consultants can express their creativity while sharing some of their favorite tips. Some consultants enjoy putting on a performance, while others keep the presentation simple, making a point to encourage guest participation.

Regardless of the consultant’s style, guests enjoy spending time with friends, learning about the products and easy food-preparation techniques and tasting new recipes.

Global appeal

The Pampered Chef’s business model serves up rewarding careers to tens of thousands in the United States, Canada, the United Kingdom and Germany. They are drawn to the company’s unique service, innovative products and powerful earnings opportunity. ‘When it comes to meal preparation, people want three things: They want to spend less time in the kitchen, they want to enjoy the time they spend there, and they want what they prepare to be easy to make yet spectacular to look at and wonderful to taste,’ says Rick Voke, Executive Vice President, Global Operations and Strategy with The Pampered Chef. ‘This is true whether you live in Kansas City, Mo.; Toronto; or Birmingham, England.
Our products are so simple to use, and our recipes so creative and easy to make, their appeal transcends borders.’ The Pampered Chef creates recipes specifically for every taste. ‘We have food professionals who specialize in the taste preferences and cooking styles for each of our markets,’

Voke says. And, to make sure customers get consistent results, recipes destined for the United Kingdom and Germany are tested in a kitchen styled after a typical European kitchen. The success of The Pampered Chef in Canada, the United Kingdom and Germany shows that people everywhere love the products and the business opportunity. ‘We have large, independent sales forces in Canada and in the United Kingdom, and we have a growing sales force in Germany,’
Voke says. ‘Obviously this model has tremendous global appeal.’ That global appeal has been evident since The Pampered Chef opened its doors in Toronto in 1996.
‘We made the decision to expand into Canada because, as the company grew in the United States, there was quite a demand for our product on the Canadian side of the border,’
Voke says. ‘The business took off right from the start.’
The company enjoys success in all Canadian provinces. In July the company celebrated its 10-year anniversary in Canada. After a successful launch in Canada, The Pampered Chef researched European markets and determined the United Kingdom would be a good fit for its products and business opportunity. ‘We started in the UK in 1999, and it is currently our fastest-growing operation,’ Voke says. With continued record growth the company has independent consultants in Scotland, Northern Ireland and across Great Britain. The most recent international expansion was in Germany in 2000, where the company continues to experience growth in its independent force and sales.

Preparing for the future

Doris Christopher set out to create a business that would meet her family’s financial goals and the needs of a changing society. The Pampered Chef’s phenomenal growth and stronghold in the marketplace persuaded Christopher that her business would continue to thrive, regardless of her position in the company.
‘A business leader has a responsibility to her stockholders, employees, vendors and customers, to assure them that their future is intact,’ Christopher says. ‘Over the years, Jay and I have seen a lot of good people hurt because they worked for, or did business with, a company that did not have a succession plan in place.’ With concern, and respect, for the company’s consultants, co-workers and vendors, the Christophers established a company succession plan. In October 2002, The Pampered Chef was acquired by Warren Buffett’s holding company, Berkshire Hathaway.
While the decision wasn’t simple, it was solid. Buffett’s management style allows The Pampered Chef to operate as it always has on a daily basis. At the same time, the ownership transfer, coupled with The Pampered Chef’s solid team of professional management, offers the company a stable and secure future [ . . . ].

Wisdom and sincerity are words that come to mind when Doris Christopher’s name is mentioned. From the beginning, her leadership set the foundation for a company whose mission to bring families together is as relevant today as it was 25 years ago, when the first Cooking Show was held.

Question

1. Evaluate Pampered Chef’s approach to new product development for the global market.