...Erica Frank Kingsford Charcoal Problem Statement Kingsford Charcoal as a brand needs to reevaluate its marketing strategy in order to rekindle consumer interest in charcoal grilling to combat increase in gas grilling trends because charcoal is in the mature stage of the product life cycle and there is little growth within the industry. Performance Objectives Kingsford’s objectives are to maintain a 1-3% growth in sales and maintain market share. Kingsford is a cash cow in Clorox’s portfolio; therefore, it needs to maintain profits to support other brands and investments. Strength Kingsford Charcoal represents one of the largest product groups within Clorox’s portfolio, which means that it has the resources to spend on marketing the product. Represents approximately 9 percent of Clorox’s revenues and substantially higher percentage of its net income, indicating that it is essential for Kingsford to maintain its position within the charcoal market. (page 3) Clorox sales team has years of experience working with key accounts, which gives the company an advantage in terms of building strategic relationships with retailers and wholesalers. (page 4) Constancy in marketing and sales actions over time and consistency in message communicated to sales team and marketing, channel members, and final consumer. This has helped Kingsford not only create and sustain brand awareness, but also grow the business. (page 4) Lab tests proved that Kingsford’s product is superior to Royal...
Words: 2770 - Pages: 12
...Kingsford Charcoal Case Study MSCM 3332 - Fall 2012 Amanda Brodzik Allison LeFevre Christy Marion Halley White Table of Contents Background………………………………………………………………………………………………………1 Problem…………………………………………………………………………………………………………..1 Critical Factors…………………………………………………………………………………………………...1 Alternatives………………………………………………………………………………………………………3 Solution…………………………………………………………………………………………………………..3 Conclusion……………………………………………………………………………………………………….6 Appendix…………………………………………………………………………………………………………7 Sources Cited…………………………………………………………………………………………………...14 i Background Kingsford Charcoal was founded in the 1920s when Henry Ford developed a way to turn wood scraps into charcoal briquettes that burned longer and hotter than regular wood. E.G. Kingsford, a lumberman and family relative of Ford’s, helped to build the first Kingsford Plant and commercialize the business. In 1973, Kingsford was purchased by The Clorox Company. In 2000, Kingsford Charcoal was one of the leading brands in the charcoal industry and represented nine percent of Clorox’s revenues (Narayandas, D., et al., 2006). Since the 1980s, Kingsford had a steady growth of one to three percent in revenues each year (Narayandas, D., et al., 2006). However, in July 2000, the first decrease in several years in the overall charcoal category took place. A team was put together to help determine the causes of the softening of sales and propose recommendations. They researched different areas in competition, pricing, advertising...
Words: 2490 - Pages: 10
...Kingsford Charcoal case Kingsford Background and Problem Overview Kingsford, an all-American brand, is the prominent manufacturer of charcoal in the United States. The overall charcoal industry has enjoyed a consistent growth for almost 20 years. However, since the summer of 2000, the overall growth in the charcoal category has suffered from a clear decline; the charcoal category growth has declined from 4 % from 1998 to 1999 to 2 % from 1999 to 2000. Several factors have contributed to that, they are summarized below: * Gas grilling, which represents a new competitor to the overall charcoal category, came into play with a massive media expenditure communicating the value of cleanness, convenience, short cooking time, and high control over cooking temperature. * Kingsford failed to fully exploit the opportunity to distinguish itself from gas grilling. It has significantly cut down the advertising budget since 1988 while relying heavily on sales efforts. * Unlike Kingsford, which kept its price almost constant over the years, other competitors in the charcoal industry such as Royal Oak and private label brands have increased their prices and cut back on promotion funding at retailers which results in a decline in the overall category growth due to the shift of new customers getting into grilling who negatively responded to the charcoal price increase. * Unlike previously mentioned factors that can be controlled, weather patterns during the year 2000 showed a significant...
Words: 1522 - Pages: 7
...questions for case Kingsford Charcoal 1. Describe the main challenges faced by brand managers Marcilie Smith Boyle and Allison Warren. Of what relevant trends should they be aware? Main challenges specifically relevant to brand managers at Kingsford Charcoal: * A slow down in the growth in the charcoal category from 4% growth to just 2%, which is only predicted to decline further. *Possibly a symptom of weather conditions or changing consumer trends which lend themselves toward gas grilling* * A rise in the use of gas grilling (shown through number of shipments), as opposed to charcoal grilling also may have been a symptom of the underlying problem, that of the competitor’s price increases * The decision of some of KC’s channel partners to raise prices in line with other brands (especially considering the minimal price increases in the past) * The sales of charcoal are somewhat dependant on weather, an uncontrollable variant * Brand managers may have to recoup losses incurred in NOT significantly advertising over the last two years since 1998. * An important challenge is to engage retailers and distributors with the brand, and ensure they are willing to offer promotions, stock an adequate supply, and utilise product placement to its best ability. * Brand managers need to ensure profitability is healthy, as well as reinvigorating the existing brand equity Trends and associations that the brand managers should be aware of: * Charcoal grilling...
Words: 2110 - Pages: 9
...Kingsford Charcoal Unit 4 12/1/2010 1. Given your analysis of the Kingsford case, what are (or reasonably could be) the key drivers impacting the observed trend towards declining growth rates in recent years? How would you prioritize these issues? Make sure that you include your rationale in your answer? There are many reasons that are leading to a decline in growth rate of the entire charcoal category in the years leading up to 2000 and 2001. The biggest reason and the toughest for Kingsford to combat is the gas grill. The perception of gas grilling as easier, faster, and almost the same taste as charcoal grilling has hampered the charcoal category. With the emphasis on “green” living and environmental consciousness, charcoal and charcoal production and its negative effect on the environment, is another reason people are turning to gas grilling. Gas grill shipments grew 8 percent in 2000, while charcoal grill shipments dropped 3 percent over the same time period. Gas grill shipments have increased each year from 1997 through 2000. Charcoal grills only increased one of those years. It is very unlikely Kingsford can reverse this trend. They must strive to slow gas grill usage and remind the grilling public about the advantages of charcoal grilling; better taste, it is a true grilling experience, and the fact that certain charcoal products like Matchlight, are almost as quick as gas grilling. Kingsford has a unique advantage in the entire grilling population;...
Words: 1710 - Pages: 7
...KINGSFORD CHARCOAL ASSIGNMENT (10 Points) 1. The Kingsford Charcoal case takes place in July 2001. 2. Kingsford’s primary competitor is gas grills. Most people do not want or have the time to spend on getting charcoal ready for grilling; therefore, the concept of convenience, greater control over cooking temperature, shorter cooking times, and ease of clean-up makes the selling points for gas grilling. 3. The two ways for Kingsford to determine variables that segment the market, they are heavy Kingsford users and gas grill users. The “heavy” Kingsford users can be segmented into “Regular Exclusive”, “Instant Acceptor”, and “Instant Exclusive” (Exhibit 9). Gas grillers can be segmented into “own gas only grills” or “owns both”. 4. SWOT Analysis example for Kingsford would looks like: a. Strength: Established brand b. Weakness: Advertising budget c. Opportunity: Number of US grilling events have more than doubled since 1987 d. Threat: Increasing trend of gas grills shipments (Exhibit 5). 5. Use Exhibit #10 and compare the 4 scenarios below: a. The pricing scenario that resulted in the smallest reduction in dollar sales is the “Minimum (2.5%) Blue Bag Pricing Increase” (#2). b. The amount of the smallest decrease in dollar sales is $1,110. c. The pricing scenario that resulted in the greatest increase in profits is the “Total Line pricing (5%) Increase”. d. The amount of the greatest increase in profits is $1,870. 6. Kingsford...
Words: 697 - Pages: 3
...Kingsford: To Grill or Not to Grill? That’s not even a question. While certainly not politically correct by modern standards, this photo-illustration reflects the pervasive presence grilling has held in the United States since the 1950s when the Weber Kettle Grill and increasing suburbanization made it a defacto standard of American living. Then again, our modern American stereotype would have a man holding tongs in one hand and a beer in another standing at the grill, which is also not only incorrect, but not fully reflective of modern grilling. But yes, that is a real Kingsford bag. (Photo Illustration by Sandy Kreps) Team 3 Marketing Case Analysis Executive Summary The Kingsford brand of charcoal has found success through favorable conditions in its market traditionally, however conditions are now less favorable. A reduction in the charcoal market is affecting Kingsford even though its charcoal market share has increased. The consumer shifting trend from charcoal to gas grilling is now the primary threat to Kingsford and the charcoal market, and to combat this an action plan includes tight control on pricing, new pro-charcoal advertizing campaigns, and increased partnership with retailers and distributes. Conditions appear favorable for resurgence for Kingsford through these strategies. Introduction Clorox is a well known and historic house-hold brand, known primarily for home cleaning products. Founded in 1913, the company initially serviced the business...
Words: 4807 - Pages: 20
...Contains no phosphorus. Not harmful to septic systems. * Glass and Surface cleaner –Cleans and shines windows, mirrors, stainless steel and other hard surfaces with less streaking. Dissolves food and petroleum grease * Pro 409 degreaser – cleans grease around stove and kitchen tops. Leaving a shine to every surface after applying 409 degreaser to surface. * Awards * The Clorox Company is a leading manufacturer and marketer of consumer products with fiscal year 2002 revenues of $4.0 billion. Clorox markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Armor All® and STP® auto care products, Fresh Step® and Scoop Away® cat litters, Kingsford® charcoal briquettes, Hidden Valley® and K C Masterpiece® dressings and sauces, and Glad® bags, wraps and containers. With 9,500 employees worldwide, the company manufactures products in 25 countries and markets them in more than 100 countries. Founded in 1980, The Clorox Company Foundation has awarded grants totaling more than $51 million to nonprofit organizations, schools and colleges, and in 2001-2002 made product donations valued at nearly $5 million. * Mission * The makers of Formula 409 – one...
Words: 1872 - Pages: 8
...Enterprise Sustainability Web Portal Final Report IS 535 April 15, 2012 Contents Introduction 1 Purpose 1 Definition 1 Business problem 1 Solution 1 Business model 2 Audience 2 Milestone 1 2 Business challenges 3 Sustainability and CSR background 3 Business issues 4 Benefits to business 4 Initial approach 5 High-level solution 5 Milestone 2 5 Technology solutions 5 Business practice solutions 6 Web Portal construction 8 Milestone 3 8 Sustainable Supply Chain Management System 8 Conclusions and recommendations 10 Implementation plan 11 Project summary 11 References 12 Introduction Purpose The purpose of this project is to create a technology portal for business leaders, policy makers and public awareness groups to interact, discuss, share ideas, strategies, and progress being made toward corporate sustainability and social responsibility. Definition Corporate Social Responsibility (CSR) refers to a business methodology where companies are accountable for the economic, ecologic and social impact of their business processes, and endeavor to incorporate sustainable best practices with their business model as a means to...
Words: 5436 - Pages: 22
...SIXTH EDITION STRATEGIC MANAGEMENT IN ACTION Mary Coulter Missouri State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Senior Acquisitions Editor: April Cole Editorial Project Manager: Claudia Fernandes Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Gianna Sandri Senior Managing Editor: Judy Leale Production Project Manager: Kelly Warsak Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director: Kenny Beck Text Designer: LCI Design Cover Designer: LCI Design Cover Art: Svetoslav Iliev/Shutterstock.com Permission Specialist: Brooks Hill-Whilton Media Project Manager, Production: Lisa Rinaldi Senior Media Project Manager, Editorial: Denise Vaughn Full-Service Project Management and Composition: Integra Printer/Binder: RRD/Willard Cover Printer: Lehigh-Phoenix Color Text Font: 10/12, Times LT Std Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2010, 2008 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights...
Words: 154599 - Pages: 619
