Possible Alternatives for Cookware case.doc - Wikispaces

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					In reviewing Culinarian Cookware’s current problem, there are three alternatives that should be
considered. The three alternatives consist of Culinarian Cookware creating new opportunities
for market share, create and introduce a lower level of cookware under a different name, and
finally, introduce a brand extension, where Culinarian Cookware could introduce other
cookware items needs for culinary success under the Culinarian Cookware name.

   1) Create Market Share

Culinarian Cookware has an opportunity to find untapped target markets to create need for
their current products. Possible areas consist of school cafeterias, small restaurants/catering
companies, or small hotel restaurants, areas that currently have a need for high quality
cookware. These areas also play into Culinarian Cookware’s high quality specialty brand
image. If the commercial areas used Culinarian Cookware products, this would add to the
brand image, Culinarian Cookware could further position their products as favored by the new
commercial areas.

Culinarian Cookware has an opportunity to cross over into a more commercial market.
Currently, they target a more private/public consumer market. Creating new market share
would allow Culinarian Cookware to gain market share in other areas of the cookware industry.
The new areas would also allow the sales team new opportunities to distribute the products.

 This alternative fall logically with the company’s marketing priorities and would be the easiest
for Culinarian Cookware to adapt. To take advantage of this alternative, Culinarian Cookware
would only have to research the need of the possible new areas. The current product lines
could be offered, and packaged in a way that is better suited for the commercial needs.

The costs to Culinarian Cookware would include more than market research. Culinarian
Cookware would have to ensure that commercial areas are a viable market to try to enter.
Culinarian Cookware would also have to ensure that the sales team would be able to cover the
new areas and demand the expansion would require. They would also have to market the
brand in a new light. With product features as a major qualifier for decision making, Culinarian
Cookware would have to identify the needs of the commercial market and focus marketing
material in a way that display the products as the best solution for the commercial needs.
   2) Create new product line under new name/brand (Multibranding)

Culinarian Cookware second alternative to consider is the creation of a new level of cookware
(Med or lower) to offer consumers under a new name/company/brand so that premium image
is not hurt. This multibranding method has been adapted by other companies (I.e. McDonalds,
GAP), to introduce different products under different brands. Culinarian Cookware could
introduce a new line of cookware of a mid/lower level quality to offer consumers under a new
brand name. Then Culinarian Cookware could gain market share in the culinary cookware
market. Currently, they lead the premium market, with the introduction of a lower quality
brand. Culinarian Cookware could try to gain up 30-40% as the competitor who offers multiple
levels of cookware do.

Multibranding has worked for companies such as McDonald’s. McDonald’s created the McCafe
brand to offer espresso style drinks in competition to the standard black coffee offered with
breakfast. McCafe was introduced in Canada as a coffee shop. Later, McDonald’s marketed the
espresso drinks as something offered in standard restaurants. The espresso drinks would be
offered during all hours the restaurants were opened, verse the image of regular coffee (to
whom most consumers only consume during the morning hours), In this case, McDonalds
wanted the McCafe to be seen as a premium brand and wanted to appeal to those consumers
that would see McDonalds as a lower brand, but McCafe as a premium coffee worthy of a stop.

Like The previous alternative, the Multibranding idea of creating a new product under a new
brand works with Culinarian Cookware marketing strategy. The organization wants to reach
new markets and give people what they want. Yes, the McCafe brand has the legendary ‘Mc’ in
the brand names telling people that the item is a McDonald product, but the idea of creating
the McCafe brand to promote and market their coffee house style espresso drink as a premium
brand. Culinarian Cookware could create a lower quality cookware line that has many features
similar to mid/lower level lines of competitors at the price consumers want to pay for their
cookware. With price as one of the top three deciding factors in consumer decision making, a
new mid/lower level product line with a new brand name, not to hurt or lower the premium
feel of current products, could be exactly what Culinarian Cookware needs to succeed in the

This alternative offers new challenges for Culinarian Cookware. The major concerns consist of
Culinarian Cookware’s abilities to create the new level of products. Culinarian Cookware does
not have the knowledge of the proper resources, the engineering of the new product, or how to
market it as a lower product. Culinarian Cookware has success in the premium cookware
market, and the adaptation into the newer lower markets could prove to be difficult. With the
proper research and development Culinarian Cookware should be able to create such a line, but
it will cost the company a large amount of funds in consumer market research so they can
ensure a success.

    3) Introduce other culinary needs (Brand extension)

Similar to introducing a new lower level cookware product, Culinarian Cookware could tap into
the culinary needs market and begin to offer premium cookware items that complement their
premium cookware (i.e. Knives, cutlery, and measuring bowls). This brand extension strategy
would allow Culinarian Cookware to expand upon their premium brand name and break into a
larger market to compete in. Culinarian Cookware would become a more complete solution
such as the Kitchen Aid brand. Consumers will be more likely to purchase complementary
products under the same premium brand, than a complementary item to go with premium

Like the two previous alternatives, the brand extension plays into Culinarian Cookware
marketing priorities. The brand extension idea would allow for Culinarian Cookware to market
them as a complete culinary solution. Culinarian Cookware would be able to offer both
premium cookware but also premium support items to complement the cookware items they
purchased. The extension would also allow Culinarian Cookware to compete in newer markets
and free them of the very tight cookware market.

The cost of the brand extension is similar to that of the multibranding alternative. Culinarian
Cookware would have to do intensive research to ensure they understood how to produce the
other culinary products. Unlike the second alternative, Culinarian Cookware would have to
understand even more about the different industries and how to produce products that can
compete within those different industries. This alternative would have heavier front loaded
expenses, but has the biggest chance to have high returns for the company in the end.
Culinarian Cookware would also need to expand their knowledge of the materials needed to
produce the other support items and where best to purchase said materials.

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