Widen distribution network
Increase mkt share
Preserve prestigious image
Continue to capture revenue of 15%
Price promotion necessary?
Details of new mktng strategy..
Strong brand name
Strong dealership relations
Leader Metallurgy technology
Advertising and promotion
Losing mkt share coz of attachment to brand image
Flawed data analysis
Limited distribution channels
Culinarian Cookware has the opportunity to widen their distribution network by expanding the number of mass merchandise outlets/department stores they offer their different lines of box set/open stock cookware products. Increasing the number of stores that product lines are offer, will increase the product exposure for new customers. With more than half(55% exhibit 3) of the 2003 purchases being given as gifts or purchases for the intent of being a gift, the new exposure to increase distribution, new customers are more likely to make a purchase. To have the greatest success, Culinarian Cookware should turn to venues that offer a similar setting as the mass merchandise outlets and department stores. They need to make sure they are sending the correct lines through the correct channel of distribution (lowest price through (DX1 and CX1) wall-mart, highest price through (PROX1) William Sonoma).
Cannibalize: A major constraint that Culinarian Cookware needs to be cautious of is market over saturation. By over expanding their distribution, they run the risk of competing against themselves. When price is an active variable in the decision process of the target market, the consumer could go from a higher end product (PROX1 or SX1) to a lower end product (DX1 or CX1) because of the cost difference, leading to a loss in sales.
As the consumers are more likely to purchase a product they recognize, Culinarian Cookware should make use of celebrities and also make sure that their celebrities are going to win when compared...