I think the Culinarian Cookware brand has well established itself as a leader in the cookware market. I think that the previous promotion was effective in achieving its goals because the customers who received discounts were very satisfied and this for the name of Culinarian Cookware to a wider audience.
The aspect of the promotion that worked the best is that it caused existing customers to buy new product and also introduced Culinarian Cookware to new customers. This is good and bad because yes, it increased sales and brand recognition but on the other hand, the new customers might have just bought it because of the lowering in price. It is hard to say whether customers will still but their products at regular price.
It is always good to give discounts because it will start a boost in sales where customers are given the incentive to buy your product at a reduced price. On the other hand, the price may far outweigh the desirability of your product and the customer will not make any further purchases.
On the other hand, introducing your customers to your product in this way can show them how good your product is and get them familiar with the functionality of your product and make them want to make return purchases. This can be the case with Culinarian. Customers got the opportunity to use the product and may return for future purchases.
I do not think Culinarian should run a promotion prospectively because they want to make sure the brand is continued to be know for its high quality. Constantly reducing the prices will cheapen the brand, as Donald Janus has feared. I think if the price stays as it is and they promote the quality of the products they will have a proper increase in sale. It is more important to maintain the integrity of the brand and keep it in the high-end retail market.
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