summary of findings 2nd quarter 2014 riedel marketing group

SUMMARY OF FINDINGS2nd QUARTER 2014

Riedel Marketing Group

Riedel Marketing Group

COOKWARE MARKET TRACKERCOOKWARE MARKET TRACKER

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Table of Contents

PURCHASE INCIDENCEPercent of primary grocer shoppers in U.S. who purchased cookware for their use or to give as a gift

WHAT THEY BOUGHTAverage number of cookware items purchased by a single household

Other food prep categories purchased in addition to cookware

Type of cookware purchased

Material/fabrication of cookware purchased

Coating of cookware purchased

Type of nonstick cookware purchased

Price paidBrand recall

Brand of cookware purchased

WHY THEY BOUGHT Reason for purchase

Reason for cookware purchase for self

Reason for selecting the item they selected

HOW AND WHEN THEY MADE THE PURCHASE DECISIONWhether the purchase was planned or impulse

When the decision on the specific brand and item was made

WHERE THEY BOUGHTWhere cookware purchased (retail or online)

Retail channels where cookware was purchased

Retail stores where cookware was purchased

Online etailers/web sites where cookware was purchased

© Riedel Marketing Group 2014


3

About the Author


A.J. Riedel

Senior Partner of Riedel Marketing Group

A 25 year industry veteran, A.J. is a highly regarded marketing authority in the housewares industry. A.J. helps housewares executives avoid making costly product and marketing mistakes so they can accomplish their business objectives, make their numbers, and maybe even get promoted. When clients are having trouble making product, packaging, or marketing decisions because they don’t have enough information, she provides the market intelligence and consumer insight they need to make an informed decision. She’s been helping executives make better decisions at Cuisinart, Jarden, DKB, Bradshaw, Progressive, Chef’N, and many other housewares companies for over 22 years.


4

About Riedel Marketing Group

For over 22 years, Riedel Marketing Group (RMG) has been providing housewares companies with market and consumer data and insight that helps them make informed product and marketing decisions with confidence. Housewares manufacturers, ranging from large Fortune 500 corporations to smaller privately owned companies, seek our expertise. Past and current clients include Cuisinart, Jarden, Newell Rubbermaid, Progressive International, Chef’N, Jokari, Dexas, Bradshaw International, and the International Housewares Manufacturers Association (IHA).

Specializes Exclusively In Housewares: RMG is the only market research company that specializes exclusively in the housewares industry.

Knowledgeable about Housewares Industry: I understand market dynamics, channels of distribution, consumers, history and trends, and marketing issues.

Expertise in Research and Analysis: I have extensive experience with online surveys, product concept tests, market and competitive assessments, and home-use tests.

Actionable Insight: I answer not just the “what” questions but also the “so what” (what are the ramifications of the data) and “now what” (what do we do as a result of this study) questions.

Proprietary Consumer Panel: RMG is the only market research company with a proprietary housewares-focused Market Research Online Community (MROC).



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Methodology


Q1 Q2 Q3

Total Sample Size 1,467 1,072 1,141

# of respondents who purchased cookware 351 374 378

# of respondents who purchased 1 or 2 cookware items

421 386 340

Online surveys were conducted with primary grocery shoppers in the U.S. in April (April 9 -12); July (July 29 - 31); and October (Oct. 3 - 6).

The primary grocer shopper is the person in the household who is responsible for purchasing more than 50% of the household's groceries.

The research is conducted with primary grocery shoppers because they are typically the primary shopper for housewares products in addition to grocery products and are also likely to be the person responsible for food preparation for the household.

This does NOT mean that the survey respondents who purchased cookware in the third quarter bought them from a grocery store.

Respondents were screened based on past quarter purchase behavior. They had to have purchased cookware, bakeware, and/or kitchen tools or gadgets either for themselves/their household or to give as a gift in the previous quarter.

The base for most of the bar charts is the number of respondents who answered the battery of questions about the first and second cookware items they purchased in Q3.

In the cases where the base (N) is different, the definition of the base is shown in the title of the bar or pie chart.


6

Definitions of Types of Cookware


Fry & saute pans, skillets, Chef's pans, braziers, grill pans, woks

Sauce pans, sauciers, stockpots,

Dutch ovens, double broilers, multi-pots, pasta

cookers

All other cookware

Cookware Sets

The question about cookware type included images to visually depict the different kinds of cookware within each product type.


7

35% of primary grocery shoppers in the U.S. purchased cookware in the 2nd quarter of 2014, up from 24% in the

1st quarter.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Yes 0.239263803680982 0.348880597014925 0 0

No 0.760736196319018 0.651119402985075 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Did you purchase any cookware either for yourself/your household or to give as a gift in the previous quarter of this year? N = 1072


8

Three quarters of cookware purchasers also bought bakeware and/or kitchen gadgets in 2nd quarter. The same was true with cookware purchasers who bought in the 1st

quarter.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Cookware 0.253561253561254 0.259358288770053 0 0

Cookware and kitchen tools/gadgets 0.361823361823362 0.347593582887701 0 0

Cookware and bakeware 0.0655270655270655 0.131016042780749 0 0

Cookware, bakeware, and kitchen tools / gadgets

0.319088319088319 0.262032085561497 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

What did you purchase? N = 374


9

Two thirds of cookware purchasers purchased more than one cookware item in 2nd quarter. The same was

true in 1st quarter.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

1 0.320113314447592 0.306338028169014 0 0

2 0.218130311614731 0.22887323943662 0 0

3 0.203966005665722 0.186619718309859 0 0

4 0.13314447592068 0.105633802816901 0 0

5 or more 0.124645892351275 0.172535211267606 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

In total, how many cookware items did you purchase during the previous quarter of this year?N = 374

Average # of items:Q1: 2.5Q2: 2.6


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In total, fry & sauté pans, skillets, Chef's pans, braziers, grill pans, and woks accounted for more than one third of the

cookware purchased in Q1 and Q2.


2014 Q1 2014 Q2 2014 Q3 2014 Q4 Total Year

Cookware sets 0.141906873614191 0.145077720207254 0 0 NaN

Sauce pans, sauciers, stockpots, Dutch ovens, double broilers, multi-pots, pasta cookers

0.16629711751663 0.158031088082902 0 0 NaN

All other cookware 0.310421286031042 0.341968911917099 0 0 NaN

Fry & saute pans, skillets, Chef's pans, braziers, grill pans, woks

0.381374722838137 0.354922279792746 0 0 NaN

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

What type of cookware did you purchase?N = 386


11

The most popular set size was 6 to 9 pieces, same as in Q1.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Cookware sets 0.141906873614191 0.145077720207254 0 0

Pots, Pans, and All Other 0.858093126385809 0.854922279792746 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%


2014 Q1 2014 Q2 2014 Q3 2014 Q4

1-2 0.109375 0.125 0 0

3-5 0.1875 0.125 0 0

6-9 0.34375 0.375 0 0

10-11 0.15625 0.178571428571429 0 0

12+ 0.203125 0.196428571428571 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%



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Stainless steel cookware accounted for 35% of all cookware purchases in both the 1st and 2nd quarters.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Other 0.0610079575596817 0.037542662116041 0 0

Enameled cast iron 0.0769230769230769 0.0887372013651877 0 0

Cast iron 0.0981432360742705 0.102389078498294 0 0

Hard anodized aluminum 0.119363395225464 0.0955631399317406 0 0

Aluminum 0.161803713527851 0.119453924914676 0 0

Clad, Multi-ply, or Tri-ply (2 or more layers of metal)

0.140583554376658 0.21160409556314 0 0

Stainless steel 0.342175066312997 0.344709897610922 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

What material was the cookware made of? Excludes "don't know" answers

N = 293


13

More than 70% of the aluminum, clad, and other metal cookware purchased in Q1 and Q2 was coated; the majority of the coated cookware had traditional non-stick coating.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Coated/non-stick 0.706806282722513 0.766304347826087 0 0

Uncoated 0.293193717277487 0.233695652173913 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Was the cookware coated or uncoated?N= 184

2014 Q1 2014 Q2 2014 Q3 2014 Q4

Ceramic non-stick 0.327433628318584 0.271929824561404 0 0

Traditional non-stick such as Teflon

0.672566371681416 0.728070175438597 0 0

5%15%25%35%45%55%65%75%85%95%

What type of non-stick coating does the cookware have? Coated cookware only

Excludes "don't know" answersN = 114


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41% of the cookware purchased in Q2 was priced at $50 or more, up from 31% in Q1.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Less than $19 0.254452926208651 0.238095238095238 0 0

$20 - $29 0.208651399491094 0.2 0 0

$30 - $49 0.229007633587786 0.157142857142857 0 0

$50 - $99 0.147582697201018 0.219047619047619 0 0

$100 or more 0.16030534351145 0.185714285714286 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

How much did you pay? (Among respondents who remembered what they paid)

N= 210


15

In Q2, the average price paid for a cookware set was $147.81, up from $131.11 in Q1. The average price for

open-stock was about the same in Q1 and Q2.


2014 Q1 2014 Q2 2014 Q3 2014 Q4Cookware sets 131.11$ 147.81$ #DIV/0! #DIV/0!

N= 46 32 0 0

Sauce pans, sauciers, stockpots, Dutch ovens,

double broilers, multi-pots, pasta cookers

49.58$ 54.17$ -$ -$

N= 50 23 0 0

All other cookware 41.34$ 35.66$ -$ -$ N= 77 35 0 0

Fry & saute pans, skillets, Chef's pans,

braziers, grill pans, woks50.68$ 50.92$ -$ -$

N= 130 62 0 0

Average of All-Non Sets 47.67$ 47.09$ -$ -$

Average Price Paid By Product Type


16

In Q2, almost 60% of cookware purchasers didn’t remember what brand of bakeware they purchased, up from half in Q1.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Yes 0.506024096385542 0.443850267379679 0 0

No 0.493975903614458 0.556149732620321 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Do you remember the brand of cookware?N =

374


17

Similar to 1st quarter, the vast majority of the cookware purchased in 2nd quarter was cookware that

respondents purchased for themselves.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Other 0.0166666666666667 0.0187165775401069 0 0

To give as a gift 0.121428571428571 0.13903743315508 0 0

For myself 0.861904761904762 0.842245989304813 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Did you buy for yourself or to give as a gift?N=

374


18

30% of the cookware items purchased in Q1 and Q2 were replacements for old cookware that was stained,

dirty, warped, or broken.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Needed cookware that was safe to use on an induction cooktop

0 0.0223642172523962 0 0

Old cookware didn’t have the features the new ones have

0.100278551532033 0.0383386581469648 0 0

Wanted to replace my non-stick cookware with uncoated cookware

0 0.0575079872204473 0 0

Needed a specific type of cookware for a new recipe or cooking technique

0 0.0638977635782748 0 0

Other 0.064066852367688 0.0670926517571885 0 0

Needed an additional one 0.142061281337047 0.130990415335463 0 0

Needed a bigger or smaller size 0.153203342618384 0.153354632587859 0 0

First one, did not have one previously 0.225626740947075 0.166134185303514 0 0

Old cookware was stained, dirty or warped 0.314763231197772 0.300319488817891 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Why did you purchase a new cookware item for yourself?(Among respondents who purchased cookware for themselves)

N = 313


19

More than two thirds of the cookware items purchased in Q1 and Q2 were planned purchases.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Other 0.129807692307692 0.0109090909090909 0 0

I bought it on impulse when I saw cookware in the store.

0.216346153846154 0.294545454545455 0 0

I went to the store planning to purchase cookware.

0.653846153846154 0.694545454545455 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Did you go to the store planning to purchase cookware or did you buy it on impulse when you saw cookware in the store?

N=275


20

When the cookware purchase was a planned purchase, the purchaser made the final decision on the specific brand and item after looking at the items in the store

70% of the time.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Before going to the store. 0.3125 0.315789473684211 0 0

While in the store after looking at the items which were available.

0.6875 0.68421052631579 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Did you make the decision on the specific brand and item before going to the store, or while in the store after looking at the items that were available?

(Among respondents who went to the store planning to purchase cookware)N= 190


21

More than half of cookware items purchased when the final decision was made in the store were

selected because the purchaser thought that specific item was the best value for the money.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

A sales associate recommended it. 0.00819672131147541 0.0230769230769231 0 0

I liked the color. 0.0163934426229508 0 0 0

I liked how it looked. 0.147540983606557 0.115384615384615 0 0

It was on sale. 0.155737704918033 0.0846153846153846 0 0

I saw it on display in the store. 0.114754098360656 0.153846153846154 0 0

I saw it demonstrated in the store. 0 0 0 0

Other 0.139344262295082 0.0615384615384615 0 0

It was the best value for the money.

0.418032786885246 0.561538461538462 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

If you made the decision while in the store after looking at the items that were available, why did you decide to buy the specific cookware item that you did?

(Among respondent who went to the store planning to purchase a cookware)N = 130

Note: The question wording changed from 1st to 2nd quarter. Therefore, caution should be exercised when comparing 1st and 2nd quarter data.


22

More than three quarters of the cookware items purchased in Q1 and Q2 were bought at retail stores.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Other 0.0825242718446602 0.091644204851752 0 0

Online 0.143203883495146 0.161725067385445 0 0

Retail store 0.774271844660194 0.746630727762803 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Did you buy at a retail store or online?N =

371


23

34% of the cookware purchased in 2nd quarter was bought at a mass merchandiser.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Dollar store (Family Dollar, Dollar General, Dollar Tree) 0.05 0.00732600732600733 0 0

Hardware/home center 0.08 0.021978021978022 0 0

Grocery/drug 0.05 0.0293040293040293 0 0

Warehouse club 0.06 0.043956043956044 0 0

Value discounter/off price store (i.e. Big Lots, Ross, Mar-shalls, TJ Maxx)

0.1 0.131868131868132 0 0

Department store (i.e. Macy's, Kohls, JC Penney) 0.16 0.183150183150183 0 0

Specialty (i.e. Bed Bath & Beyond, Sur la Table, Crate & Bar-rel)

0.17 0.238095238095238 0 0

Mass/general merchandiser (i.e. WalMart, Target, KMart, Meijer, ShopKo)

0.33 0.344322344322344 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

From which retail store did you buy the cookware item?Among respondents who purchased cookware from a retail store)

Categorized by channelN =

273

Note: This was a new question that was added for 2nd quarter. In 1st quarter, the data was manually computed. Therefore, caution should be exercised when comparing 1st and 2nd quarter data.


24

In 2nd quarter, 31% of cookware purchases were made at Wal-Mart.


2014 Q1 2014 Q2 2014 Q3 2014 Q4

Sur La Table 0.0207612456747405 0 0 0

Williams Sonoma 0.0380622837370242 0 0 0

Discount dept. store 0 0 0 0

Costco 0.041522491349481 0 0 0

TJ Maxx 0.0519031141868512 0 0 0

Grocery store 0.0311418685121107 0 0 0

Bed Bath & Beyond 0.124567474048443 0 0 0

Other 0 0 0 0

Bon-Ton 0 0.00714285714285714 0 0

JC Penney 0.0103806228373702 0.0285714285714286 0 0

Sears 0.0173010380622837 0.0285714285714286 0 0

Other 0.207612456747405 0.0928571428571429 0 0

Kohl's 0.041522491349481 0.121428571428571 0 0

Macy's 0.0865051903114187 0.142857142857143 0 0

Target 0.131487889273356 0.271428571428571 0 0

WalMart 0.197231833910035 0.307142857142857 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

From which retail store did you buy the cookware item?(Among respondents who purchased cookware from a retail store)

N = 140

Note: The question wording changed from 1st to 2nd quarter. Therefore, caution should be exercised when comparing 1st and 2nd quarter data.


DEMOGRAPHICS



26 © Riedel Marketing Group 2014

Male

Female

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

27%

73%

24%

76%

Gender

Total Cookware

18-29

30-39

40-49

50-59

60 or older

0% 5% 10% 15% 20% 25% 30% 35%

15%

15%

16%

26%

29%

13%

14%

15%

26%

32%

Age

Total Cookware



Less than high school degree

High school degree or equivalent (e.g., GED)

Some college but no degree

Associate degree

Bachelor degree

Graduate degree

0% 5% 10% 15% 20% 25% 30% 35% 40%

1%

7%

20%

11%

36%

24%

1%

6%

19%

11%

36%

27%

Education

Total Cookware

Less than $24,999

$25,000 to $49,999

$50,000 to $74,999

$75,000 to $99,999

$100,000 to $124,999

$125,000 and up

0% 5% 10% 15% 20% 25% 30%

8%

16%

25%

21%

12%

18%

9%

15%

25%

20%

14%

18%

Household Income

Total Cookware



Employed, working 40 or more hours per week

Employed, working 1-39 hours per week

Not Employed

Other

0% 10% 20% 30% 40% 50% 60%

53%

15%

17%

15%

53%

15%

17%

15%

Employment

Total Cookware

Married

Single, never married

Other

0% 10% 20% 30% 40% 50% 60% 70%

60%

28%

12%

59%

31%

10%

Marital Status

Total Cookware



1

2

3

4

5 or more

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

20%

44%

15%

14%

7%

20%

44%

16%

13%

7%

Household Size

Total Cookware

1

2

3 or more

None

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

14%

9%

4%

73%

12%

8%

4%

76%

Presence of Children Under 18

Total Cookware



White

Black or African-American

Spanish, Hispanic, or Latino

Asian

Other

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

81%

4%

5%

2%

9%

85%

4%

4%

1%

6%

Ethnicity

Total Cookware

New England

Middle Atlantic

East North Central

West North Central

South Atlantic

East South Central

West South Central

Mountain

Pacific

0% 5% 10% 15% 20% 25%

7%

13%

12%

5%

21%

4%

11%

8%

18%

7%

12%

15%

6%

21%

3%

10%

9%

17%

Region

Total Cookware


31

Riedel Marketing Group Contact Information

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summary of findings 2nd quarter 2014 riedel marketing group

Documents

boughtwhere cookware

marketing decisions

type of nonstick cookware

number of cookware items

marketing issues

marketing mistakes

housewares industry

riedel marketing groupfor