Product Planning Cuisinart Hand Mixer

Cuisinart
Power Advantage Plus
9-Speed Hand Mixer

Douglas Radecki // Cuisinart Power Advantage Plud 9 Speed Hand Mixer // Product Planning Spring 2012

Cuisinart was founded by Carl and Until Cuisinart was sold in 1989, the brand Bought in 1989 by Conair, Cuisinart has
Shirley Sontheimer in 1971 after a trip to image that Mr. Sontheimer wanted for his been able to turn around the company.
France. While in France, the couple went company was one of excellence without The Cuisinart Division has been able to
to a housewares show where they saw cutting corners. However, the steep regain it’s leadership in small kitchen
resturant grade food preperation machines. price caused many customers to seek appliances through top quality and
Confident they could make a home version other options, causing Cuisinart to finally innovative new products. Conair has been
of the food processor, Sontheimer obtained rush out products to meet the customers able to target the high-end appliance
U.S. distribution rights from Robot-Coupe changing needs. This though was not soon customers, both at home and in commercial
and utilizing his enginering background, enough and Cuisinart continued to lose spaces through the ownership of both the
Mr. Sontheimer was able to redesign the market share to new innovative products Cuisinart brand and the Waring brand.
restaurant food processor for home use. that recognized the changing needs of the
From a $20,000 investment, Mr. and Mrs. potential customer.
Sontheimer created Cuisinart, a company Through expanding product
that combined their passions for food and offerings and winning
Carl Sontheimer
appliance elecrtonics. endorsements from the
restaurant industry, Conair’s
new strategy helps push
Cuisinart’s sells up
Cuisinart goes from 20%
to losing market share
to competitors who are
offering a variety of form
“With marketing savvy and a credible product.. factors those cost less.
Cuisinart begins the strategy to
able to dominate the upper end of the food
align with cooking eduction by
processor business...did it by making the
producing cook books, cooking
Cuisinart name synonymous with top quality Conair purchases Cuisinart
shows, and a culinary institute.
and price.” for an estimated $27 million.
EVA POMICE, Forbes

BIRTH OF A NEW MARKET

1971 1973 1973-74 1975 1977 1977-early 80s 1985 1988,’89
America is Initial sales Sales pick up Cuisinart sales Cuisinart Cuisinart loses Cuisinart off twice until
Founded
introduced to are poor do steam as Cui- total $50 mil- dominates the considerable continues to Conair buys
Cuisinart Food consumers sinart picks up lion dollars and market the market share lose market the company.
Processor at unsure of the endorsements the new part- corporation to Sunbeam share do to not Cuisinart now
the National benefits plague from culinary nership with a created. They and their understanding only has 12%
Housewares Cuisinart figures such as Japanese firm become syn- smaller and their custom- of market
Expo in Julia Child. as the manu- onomious with cheaper food ers shifting share.
Chicago. facturer the gourmet processor desires. Sold
kitchen chef


STENGTHS WEAKNESSES
Cuisinart is the best known for History plagued with corporate Product Leadership
being among the highest quality scandal
kitchen appliance available
Often a market follower, entering
Known for pursuing excellence in existing product categories
cooking education through both
video and formal education
programs

Partners with market leaders in
desired markets

Design + Eco-friendly conscious
which wins various awards and Customer Intimacy Operational Excellence
recognition for their efforts

Reputation built on endorsements
from well known chefs

According to Macy’s + The Knot Cuisinart is number 1
in the small applaince for the kitchen brand for wedding
registeries

1989
Conair focuses 1995 2000 >
the company’s The introduction of Cuisinart continues
energy to hand mixers and to enter new product
become the toasters gives breadth categories. They
number one to an assortment expand their registry
requested considered among the presense beyond
brand in bridal best in the highend bridal showers to
registries appliance arena. include expecting
mothers and
parents.

CURRENT PORTFOLIO
PRICE POWER SELECT POWER ADVANTAGE POWER ADVANTAGE PLUS
$80
Cuisinart’s hand mixer portfolio is Power Advantage PLUS
made up of 3 lines, the Power 9-Speed Hand Mixer with
Select, Power Advantage, and Power $75 Storage Case
$79.95
Advantage Plus. USP:storage case to store
$70 mixer and accessories
DIFFERIENTATION
The designs of the Power Select and
other two differ greatly. Each $65
category has a selection of speeds
available according to price point.
The Power Advatange Plus stands $60
out due to the storage case and Power Select 7-Speed Power Advantage CORE COMPETENCIES
being the only product available at Hand Mixer 7-Speed Hand Mixer -Technology delivering
9-speed. Speeds available differntate $55 $59.95 $59.95 power and versitility
USP: Pink line series, USP: Smooth-start -High quality
products according to price for non-splatter
with a portion of
proceeds going PORTFOLIO THEMES +
SIMILARITIES $50
to breast cancer CHARACTERISTICS
The technology behind the motors research Power Advantage -Power delivered through
5-Speed Hand Mixer
are quite similiar, using a 220 watt $49.95
220 watt motors with
$45 automatic feedback
motor along with automatic feedback USP: Multiple colors -Exclusive swivl cord allow
that senses when more power needs for right or left handed use
to be delivered to mix ingredients. $40 -Chef grade compnents
-Wide range of colors
OVERALL available
Little differentiates these products -Wide range of speed
$35
optionswith smooth
besides the number of speeds the transitions between speeds
motor can spin the attachments. The -Style and designed to
number of color selections for the $30 match other appliances
PA 5-speed suggests this price point Power Select 3-Speed -Easy clean up
is most attractive for customers. Hand Mixer
$29.95
USP: Unique Style and
price point of a Cuisinart
Product

MIXING AND MIXERS
Consumers will continue to want quick access and quick clean
STAND MIXERS HAND MIXER HAND BLENDER
strengths

great at mixing large batches great at mixing for baters, mashed quick to grab and use
potatoes etc.
weaknesses
large and heavy requiring a becoming the new too large to pull can only occomplish jobs of
dedicated spot in the ktichen out tool. certain sizes: eg. not the best
at mixing medium size amounts
of ingredients

POWERFUL GOOD ENOUGH
INCONVENIENT CONVENIENT


MARKET ANALYSIS
HAND MIXER MARKET LIFECYCLE FOOD MARKET TRENDS DESIGN TRENDS
Consumers are continueing to cook more at For small kitchen appliances, more and more
home. Just about half (53%) of meal prepar- manufactures are offering a wide range
ers now make dinner, including an entrée, of colors across their product offerings.
four or more nights a week; 90% do so at “Thomas Perez, president of Bodum USA,
least once a week. In addition, 61% prepare said, “The insurgence of color at the turn of
a frozen entrée, and 36% pick up a prepared the economy was an uplifting notion. Color
entree at least once a week (TARNOWSKI, is particularly important in small electrics
2011). With cooking at home, consumers are due to their countertop placement. You want
going to purchase appliances that offer the them to ‘pop’ on your countertop and not
right amount of convenience and most num- tucked away in your cupboards.””
ber of uses (BRANDL 2008).
Along with color, offering classic white
Foodies, people who identify themselves as and stainless steel shows both a heritage
Introduction Growth Maturity Decline interested and knowledgeable about a wide and sophistication, matching many of the
range of foods and ingreidents will con- larger appliances in the kitchen such as
Cuisinart’s first hand mixer was introduced tinue to grow. Over half of adults watch, on the stainless steel fridge or range oven.
in 1995, adding to Cuisinart’s increasing average, 4.2 hours per week (FMI, 2011) of Cuisinart offers both a wide range of colors,
presence across multiple products in the cooking shows. Interest in preparing food at along with the classic white and stainless
small kitchen appliance category. home and entertaining at home will continue steel.
to grow.
When Cuisinart entered the hand mixer Eco-friendly design choices and effective
market, other brands had established With food safety concerns continueing to use of technology will continue to become
themselves as the market leader. After hav- grow, consumers will become more aware important to customers as they also look for
ing lost considerable marketshare to other of where and what they are putting in their an authority to reassure them of the
challengers, Cuisinart was playing catch body. Again this will result in more home eco-friendly claims. Cuisinart has made
up in multiple categories during the 1990s. eco-friendly manufacturing and marketing
Needing a new strategy, Conair’s strategy a core strategy, launching their green-
focused on targeting the bridal industry.1 ware line in 2008 called “Cuisinart Green
This allowed Cuisinart to gain market share Gourmet”. 2
and become the #1 hand mixer sold through
Amazon.com, Macy’s, and recommended Retro design to stand out is continuing
as a great gift by theknot.com. to attract customers. Cuisinart’s Power
Select is reminisent of a large jet engine,
While a mature industry, Cuisinart has connecting to both the image of power, but
become synonymous with hand mixers. also bringing images of “when flight was
sexy and cool”.

1. Cuisinart History About Us, 2. Rodgers Discusses Cuisinart’s Green Strategy
http://www.cuisinart.com/about.html http://www.hfnmag.com/housewares/rodgers-
discusses-cuisinart%E2%80%99s-green-strategy

COMPETITORS
KEY COMPETITORS
High Price
Challenger

Kitchen Aid’s, whose parent
company is Whirlpool, hand mixers
continue the company tradition
of high quality appliances. Kitchen
Aid Artichtect rank 1 in Consumer
Report
Price range: $59.99 - $109.99.

Followers

Offering a wide range of home
products, Sunbeam’s hand mixer
offers style and convenience
Price range: $18.99-39.99
Functional Style

Manufactures both small appliances
and hair cair products for a low
price. $24.99 -$29.99

Under NACCO, both Hamilton
Beach and Proctor Silex offer a
wide range of kitchen appliances.
Hamilton Beach price range:
$19.99 - $49.99
Proctor Silex price range:
$10.99 - $15.99
This price range allows NACCO to
hit multiple price points and keeps Low Price
the brands from competing with
each other.


COMPETITORS

Cuisinart is a market leader in many NEW ENTRANCES
Moderate. Customers

kitchen appliance categories. show a considerable
amount of brand loyalty
to Cuisinart hand mixers.
However, Cuisinart will
need to move more agres-
According to Amazon.com of 5 most sively into developing
countries to build relation-
requested hand mixer 4 of them are ships with customers.
Cuisinart Hand Mixers
SUPPLIERS RIVARLY BUYERS
TOP 20 HAND MIXERS ACCORDING TO SALE NUMBERS Low. Components do not Moderate. High density Moderate. Customers
Cuisinart - 40% require a high degree of low end prodcuts want to cook more
Hamilton Beach - 15% of sophistication. may begin to impact meals at home. This is
Kitchen Aid 10% Little supplier power Cuisinart’s hand mixer due to many becoming
as a result, allowing BU as rivals offer more more price sensitive.
Proctor Silex 10%
Cuisinart to find a new competitive prices Companies with the best
Sunbeam 5% supplier if put into a along with quality build reputation built through
Oster 5% pricing situation. and design. high quality build and
helping customers get
the most out of their
However, while Cuisinart enjoys a lead in the hand mixer purchase.
category, challenger rival Kitchen Aid has been awarded
Consumer Reports best of hand mixers in November 2010.
Cuisinart did make the top 10 two times, at 4th and 5th place, SUBSTITUTES
Kitchen Aid however went on to be awarded 1st, 3rd and 6th High. Customers are look-
place. According to the Consumer Report, Kitchen Aid and ing for more convenience
Cusinart were virtually identical in all categories except for and the hand blender may
noise. Cuisinart will need to recognize this and re-examine take over most mixing
the quality of motors and build to improve the noise reduction jobs, only taking out the
of the hand mixer. hand mixer for specific
tasks.


COMPETITIVE LANDSCAPE
FROM
SCRACTCH

Table Top
Mixer

Combo Indoor Grill
Sunbeam
Mixer
Hamilton Kitchen
Beach FORM CATEGORY Spoon GENERIC BUDGET
Aid
Hand Mixers Kitchen appliances Kitchen tools Less then $100
that can mix food

Proctor
Oster Silex Toaster
Spatula

Hands
Hand
Blender Single-Serve
Coffee Maker
CONVENIENT
+ QUICK TO
CLEAN UP

SEGMENTATION

SEGMENT HEALTHY EATERS GRAB AND GO MOMS FAMILY MOM KITCHEN GOURMET
DEMOGRAPHIC Adult Males + Females Adult females with children Adult females with children Adult Males + Females
25-35 years old 34-44 34-44 18-35
PSYCHOGRAPHIC Healthy eaters are individuals Grab and go moms are busy Family mom are women who These indviduals enjoy food
who place high value on being women with families. They are place a high priority on their and the culture of food. Many
able to eat healthy. This also looking for convenience at a family and the family’s health/ self-identify as foodies and love
means that they are interested good price. Being able to relay well being. These are women exploring new food choices
in a healthy environment, on their small kitchen appliances who are aware of the latest and options. They are willing to
connecting where and how their is important because they have health consernes, as well as try new recipes. They look for
food is produced. They shop little time to repurchase, modify, natural remedies for tasks kitchen appliances that will have
based on their values when or fix. These women wish they ranging from cleaning to a number of uses and capability.
considering a purchase. These could provide healthier options maintaining a healthy body. The appliances they choose
individuals are highly skeptical for their family, but price and These women place importance represent them, identifying with
of companies advertising eco- time keeps them from being able on their home, wanting to make brands that represent quality and
friedly products due to “green to fullfil this desire. They also the home feeling welcoming. the gourmet home chef. Kitchen
washing”. Healthy eaters will believe in eating as many meals Family moms also try to cook gourmets will cook a majority of
also cook a majority of their at home as possible, and strive from scratch every meal at the their meals at home, but also go
meals at home, looking to to cook at least one meal a week home, relying on ready made out more often during the week
maximize how they use their from scratch, but often rely on meals infrequently. They believe to try new restaurants and find
ingredients in order not to waste. ready made meals more often. the from scratch equals whole new ideas to bring home to their
healthy foods that shows they own kitchen.
are caring for their family in a
special way.

Douglas Radecki // Cuisinart Power Advantage Plud 9 Speed Hand Mixer // Product Planning Spring 2012 - Photos from http://healthfoodxdrinks.com/ http://planetgreen.discovery.com/ http://o5.com/ http://www.aycinena.com/

CUSTOMER ANALYSIS

HIGH

Healthy Eaters Kitchen Gourmet
Wants to support a Wants the best tool
company who shares possible and willing to
their values. pay a premium

Grab and Go Moms Family Mom
Wants a product that Wants products that
helps in the process fit her style and
represents a woman
who loves her family

LOW BRAND FUNCTION PRICE STYLE EASY OF USE/ CONVENIENCE
SENSITIVE CLEAN UP


CUSTOMER ANALYSIS
PRICE Healthy Eaters Grab and Go Moms Family Mom Kitchen Gourmet
$80
Power Advantage PLUS Power Advantage PLUS
9-Speed Hand Mixer with 9-Speed Hand Mixer with
Opportunity to move into
$75 Storage Case Storage Case
the higher price point with $79.95 $79.95
a eco-friendly product.
$70
Opportunity to include more Opportunity to introduce
colors at the premium price the Power Select @ 9-speed
$65 point. with more colors.

$60
Power Select 7-Speed Power Advantage
Hand Mixer 7-Speed Hand Mixer
$55 $59.95 $59.95

$50
Power Advantage Power Advantage
5-Speed Hand Mixer 5-Speed Hand Mixer
Opportunity to include a $49.95 $49.95
$45
storage case at the same
price point.
$40

Power Select 3-Speed
Hand Mixer
$35
$29.95

$30


ANSOFF 2 x 2

Cuisinart will maintain leaders in the small kitchen appliance market by developing
new products that help customers get the most out of their cooking experience.

CUSTOMERS NEW
EXTEND INNOVATIVE EXPAND
EXTEND INNOVATIVE A Soup Appetit D My virtual chef G Skinniefied Mixer
A New product line for Develop the Cuisinart Create a new forum factor
E developing countries that Digital Cookbook that goes that embraces a smal ler
helps in recipes beyond from coaching for the footprint to descrease the
just baking. Eg. China is novice to helpful reminder perseption of the product
the number one consumer for the gourmet chef. being too large.
F of soups.
E Second hands H Mini-Hand Mixer
B B From Zero to Gourmet Ingredient mixer wil l help Cuisinart for Kids wil l
D Help the novice cook learn pour in new ingredients create a product safe for
more about cooking. as needed. children to use.

F Talk to me I Greenest Ever
J PENE TRATE
PENETRATE EXPAND Select the recipe from Develop evo-friendly
C Color my world crazy digital cookbook and upload product out of heavy duty
Offer the Power Select the directions to the hand ceramics, using zero
I in more colors and at the mixer. Helps keep track of plastics and recycled metal
G 9-speed to attract design time, step(s), and next for the various tools.
conscious customers.
ingredient. J Battery GO!
C H Charging station for
battery “pucks” for a
wireless hand mixer.
Capture the energy created
CUR RENT PRODUCTS from the momentium of
mixing ingredients
together.


EVALUATION

Cuisinart should look towards developing countries
+ re-think the forum factor of the hand mixer.

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CUSTOMERS NEW

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EXTEND INNOVATIVE

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Soup Appetit 7 4 7 5 7 7 37 1
F
B From Zero to Gourmet 6 7 5 7 5 5 35 3
D 2 4 4 5 7 3 8
Color my world crazy 25
My virtual chef 6 5 6 7 7 3 34 4
PENETRATE EXPAND J Second hands 3 5 3 3 3 4 21 10
Talk to me 6 7 5 5 4 6 33 5
I
G Skinniefied Mixer 7 7 4 6 7 4 36 2
Mini-Hand Mixer 6 5 6 5 4 5 31 6
C H
Greenest Ever 7 4 4 5 3 4 27 7
Battery GO! 3 4 3 4 5 5 24 9
CUR RENT PRODUCTS


RECOMMENDATION 1

Cuisinart should develop hand mixers that fit the culinary
needs of each individual countries they expand into.

With rapidly expanding markets around Along with getting the endorcements of these
the world, Cuisinart should begin to form culinary celebrities, Cuisinart will need to
partnerships with market leaders in each understand the types of food these markets
developing country they wish to enter. make. Currently the hand mixer in America
Much like Cuisinart did in the United States, is used primarily for baking and recipes
developing partnerships with key figures in requiring whipping (fresh whip cream or
each country will help make their brand name mashed potatoes). However, each country
a household name in these new markets. will have unique needs that Cuisinart will
Finding the Rachael Ray of Brazil or the need to understand in order to develop the
Martha Stewart of China will help give their best attachments to meet the expectations
products credibility as being American made of these new customers.
and loved by those key culinary figures.


RECOMMENDATION 2

The hand mixer should be re-designed to fit the grab-and-go society
that desires convenience and good enough over perfect.

The hand mixer currently is becoming too big as a design + user criteria principle when
for many users since the rising popularity prototyping a new re-design that embraces
of the hand blender. While Cuisinart brand is light weight materials, quick clean up, quick
also one of the most popular hand blender tool selection, and smaller foot print.
manufacturers, these tools are not the best at
mixing many types of dishes. A re-design of the hand mixer to better suit
the expectations of the customer, from the
Recognizing the changing expecations of the grab-and-go mom to the kitchen gourmet,
users, but still wanting to be the brand of Cuisinart could re-invent this product
culinary excellence, Cuisinart should adopt category by bucking the statis0-quo design
the convenience motto and raise the bar from and look to slim and compact the design to
good enough back to perfect. Cuisinart can the ready-to-go tool.
only do this by using the convenience motto


BIBLIOGRAPHY

“Cuisinarts’ moniker due to appear on more items in new catego-
ries.” HFN The Weekly Newspaper for the Home Furnishing Net-
work, http://www.thefreelibrary.com/Cuisinarts%E2%80%99+mo
niker+due+to+appear+on+more+items+in+new+categories.
-a016050593

New housewares products: appeal to the senses (and the sensible).,
HFN Home Furnishings News, 2011, http://www.thefreelibrary.com/
New+housewares+products%3a+appeal+to+the+senses+(and+the+s
ensible).-a0253447888

Cuisinart Market Share, http://www.answers.com/topic/conair-
corporation-1

Cuisinart History About Us, http://www.cuisinart.com/about.html

Kitchen Design Trends. http://www.nyc-appliances.com/top-trends-
in-kitchen-appliances.htm

Top 10 Food Trends, April 2011, http://www.ift.org/food-technology/
past-issues/2011/april/features/food-trends.aspx?page=viewall

Rodgers Discusses Cuisinart’s Green Strategy, http://www.hfnmag.
com/housewares/rodgers-discusses-cuisinart%E2%80%99s-
green-strategy

Small Appliance Market Will Stay Strong , International House-
wares Association Editorial, January 2008, Phil Brandl

BUSINESS PEOPLE; Conair Head Planning Strategy for Cuisinarts,
ANTHONY RAMIREZ, January 9 1990

Consumer Report, November 2010, page 40.


Product Planning Cuisinart Hand Mixer

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