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
2
0
0
4
.
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.
1
.
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?
2
.
Second, what are Culinarian's strengths and weaknesses in this market? How feasible are its four key objectives?
3
.
Third, was the
2
0
0
4
promotion profitable?
4
.
Finally, Should Culinarian run a
2
0
0
7
price promotion? If so
,
what would be the specifics of such a promotion? If not, what other marketing action would you propose?
\
begin
{
tabular
}
{
|
c
|
c
|
c
|
c
|
c
|
c
|
c
|
}
\
hline & & & & & &
\
\
\
hline
\
multicolumn
{
7
}
{
|
l
|
}
{
Price Promotion Profitability
2
0
0
4
Analysis
}
\
\
\
hline
\
multicolumn
{
7
}
{
|
l
|
}
{
Please input numbers in the yellow background
}
\
\
\
hline &
\
multicolumn
{
3
}
{
|
l
|
}
{
Actual Sales
(
with promotion
)
}
&
\
multicolumn
{
3
}
{
|
l
|
}
{
Actual Sales
(
with promotion
)
}
\
\
\
hline & Consultants & Brown & YOU & Consultants & Brown & YOU
\
\
\
hline A
.
CX
1
Unit Sales
(
March
-
May
2
0
0
4
)
&
1
8
4
,
9
8
7
&
1
8
4
.
9
8
7
&
1
8
4
,
9
8
7
& & &
\
\
\
hline B
.
Average Unit Manufacturer Selling Price &
\
$
6
2
.
4
0
&
\
$
6
2
.
4
0
&
\
$
6
2
.
4
0
&
\
$
7
2
.
0
0
&
\
$
7
2
.
0
0
&
\
$
7
2
.
0
0
\
\
\
hline C
.
Average Unit Variable Costs & & & & & &
\
\

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!