Question: Help with culinarian cookware case study Culinarian Cookware Case Study Overview Welcome to Culinarian! We're gonna cook up a profitability analysis of a past price
Help with culinarian cookware case study Culinarian Cookware Case Study Overview
Welcome to Culinarian! We're gonna cook up a profitability analysis of a past price promotion and decide whether it makes sense to run a new one, based on both qualitative and quantitative arguments.
Culinarian produces cookware and, in this case study, ran a price promotion on its least expensive line in
Consultants were also hired to calculate the promotion's profitability
what we call Net Returns. While these consultants came up with a loss, Senior Sales Manager Victoria Brown offered a different calculation, showing a substantial profit. Vice President of Marketing Donald Janus needs to now decide whether to run a similar promotion in the coming year.
Here are the key questions to ponder in the case.
First describe consumer behavior in the cookware market. How is cookware bought? How is it sold? What are the implications for Culinarian's marketing strategy?
Second what are Culinarian's strengths and weaknesses in this market? How feasible are its four key objectives?
Third was the
promotion profitable?
Finally Should Culinarian run a
price promotion? If so
what would be the specifics of such a promotion? If not, what other marketing action would you propose?
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Price Promotion Profitability
Analysis
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Please input numbers in the yellow background
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Actual Sales
with promotion
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Actual Sales
with promotion
hline & Consultants & Brown & YOU & Consultants & Brown & YOU
hline A
CX
Unit Sales
March
May
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&
&
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hline B
Average Unit Manufacturer Selling Price &
$
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$
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$
&
$
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$
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$
hline C
Average Unit Variable Costs & & & & & &
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