...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 associations...
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...Kingsford Charcoal ande Kunal P kunalpande@hotmail.com Prof-‐ Bob Carroll MKM805ms The Charcoal category has seen a loss of 2% from 4% between 1998 -‐2000, this can affect Clorox’s business growth if Kingsford sales and revenue takes a hit. • The unanticipated weather conditions in the United States added to the softening of Sales in charcoal category between 1998-2000. • The Convenience of using a gas grill increased causing consumers shifting from charcoal grilling to Gas grilling • Kingsford curtailed its advertising budget excessively from $6m in 1997 to $1m in 2000 • Promotional activities were cut back which were one of the key drivers of Kingsford’s Sales. Kingsford market share leveraged from the increase in prices from royal oak and private label Year 1999 2000 Kinsgford 54.2 57.7 Private label 33.3 33.9 Private label 13.7 7.1 Kingsford is a brand with superior quality compared to royal oak and private label and is proven in lab tests. ...
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...CASE 4: KINGSFORD CHARCOAL 1. Analyze the consumer behaviour and changes in behaviour, as it pertains to grilling. In America, making barbecue is a culinary art. Cooking Barbecue produces more than simply grilling a steak or a burger; it is associated with a fun and festive spirit. As it is written in the case, “It’s about playing with fire under an open sky, wielding a mean spatula in one hand, a cool drink in the others.” More than that, barbecue gives a great flavor to the food, and it implied being outdoors while hanging out with friends and family. Also, because the concepts itself makes the dinner very informal it procure a change of pace. Although the numbers of Barbecue events has been increasing, it is still a seasonal event as it requires the weather to be good. People have usually two options concerning their grilling methods, charcoal and gas grilling. Consumers looking for convenience, greater control over cooking temperature, short cooking time and ease of clean up, will choose to use gas grilling. The one’s interested for the hands on experience and the flavor imparted to the food will go with charcoal. According to Exhibit 6, we can see that the main change in the consumer behavior was the trends concerning the grilling methods. In fact, in 2000 gas grill shipments grew 8 percent relative to 1999, while charcoal grill shipments dropped 3 percent year over year. To conclude, the charcoal grill penetration had tended down since 1997 with only 49 percent...
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...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;...
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...Kingsford Charcoal is currently faced with the problems of a shrinking charcoal market, which have culminated in a lack of advertising, narrowing of the price gap, increasing retail prices, and competing with gas grilling. By increasing its advertising budget, maintaining its promotions budget, maintaining product prices, and conveying a message that charcoal is superior to natural gas, Kingsford can reinvigorate the charcoal industry and bring about greater profitability and growth. Currently, the charcoal industry suffers from several years of reduced advertising, allowing the natural gas industry to grow unimpeded. Raising advertising expenses to $7 million would bring back awareness to the charcoal market and increase overall volume....
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...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...
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...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...
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...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...
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...Phong Trinh IBM 421 Professor Assumma June 11, 2015 Kingsford Charcoal Case Study Analysis Executive Summary In this case study, we will be analyzing the current position of how well Kingsford is within the marketplace and determine which of the issues are plausible causes in its drop in revenue. We will be creating a comprehensive strategy as well as a marketing plan to evaluate and adjust the matter at hand. First we will begin with identifying the issues and implementing a method to reemphasize the importance of marketing in the business. The goal is to create a marketing plan that will add value to Kingsford’s market share, sales, and profitability. It is evident that Kingsford is a superior product to its competitors such as Royal Oak, but the company faces losing market share to gas grilling because it is a more convenient alternative to cooking. Since Kingsford has already been an established brand, it can effectively market its brand awareness with an increase in media advertising which is a probable reason why the company did not reach its highest potential. The company needs to correspond to the increasing use of outdoor grilling in the USA which is now a great opportunity for the company to start a marketing strategy and establishing a greater brand recognition. The biggest challenge will be how well the company can gear people’s interest towards charcoal grilling away from gas grilling yet at the same time capture more market share from Royal Oak as well. Throughout...
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...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...
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...today rely on wood charcoal for cooking to save money. Food entrepreneurs like owners of barbecue stalls uses wood charcoal for cooking the barbecue. Without the knowledge that wooden charcoal releases carbon monoxide when burned making the food acquire the chemical when exposed. Charcoal means the black solid remaining after carbonization or pyrolysis of organic matter. There are various resources to produce a charcoal such as woods, agricultural and forest residues, Municipal Solid Waste and fossil type matter; like peat. Patterns of wood charcoal consumption are site-specific, they vary from country to country, and from area to area within countries. They are dependent on the type of area availability of local resources and alternative fuels, climate, and they can vary by season. Still, some general observations can be made. Especially in countries which have a long tradition of using wood charcoal as fuel. Household sectors are the greatest consumers. Restaurants and the handcraft sectors come in second position with low percent. The use of charcoal in industrial sector is not significant. Cooking is the main purpose for consuming wood charcoal. Water heating and conditioning is satisfied exclusively by charcoal. Most of charcoal produced from ligneous formation is consumed by urban household Charcoal production and distribution contributes significantly to the Nation’s economy and employment. Soot, smoke and ash are the natural byproducts of a Charcoal. Smoke must be channeled...
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...EXPORT OF COAL EXPORT OF COAL Coal is under Open General Licence (OGL) list. India exports coal to the neighbouring countries to meet their demand of coal. The traditional buyers of Indian coal are Nepal, Bangladesh and Bhutan. Export to Nepal and Bhutan is done in rupee exchange as per the protocol between the two countries and with Bangladesh it is done in US Dollar. Export of coal to the neighbouring countries was earlier canalised through the Mineral and Metal trading Corporation, but for the last few years it has been decanalised. Export of coal by CIL is made through tender route The quantum of coal exported by CIL during 2002-03 to the neighbouring countries was 12,650 tonnes. During 2003-2004 the quantity of coal exported by CIL was 35,831 tonnes (Provisional). IMPORT OF COAL As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs and exercising their own commercial judgments. Coking coal is being imported by Steel Authority of India Limited (SAIL) and other Steel sector manufacturing mainly to bridge the gap between the requirement and indigenous availability and to improve the quality of overall blend for technological reasons. Coal based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders are importing non-coking coal on consideration of transport logistic and commercial prudence as well as against export entitlements. Coke...
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...Advantages of using Paper Charcoal 1. Concentrated. Since Paper Charcoals are created from compressing combustible material such as paper, it is denser, harder, and more compact compared to other charcoals. 2. Slow-burning. The compression process allows the paper charcoal to burn for a lot longer than if it was loose in its original form. 3. More efficient. Along with the compactness of the paper charcoal is the increase in heating value. This greater efficiency can be attributed to their low moisture and density. 4. Availability. Paper is the main component in producing this product. So where do we get this paper? Look around you, and there are loads of paper materials here, there, and everywhere. 5. Easily stored. The size and shape of paper charcoal make them easily be stored. We can readily pile them in several heaps because of their fun shapes like cubical, spherical, cylindrical, or rectangular blocks. They are likewise clean to handle and be packed into bags. 6. Cheaper. Since this charcoal can be domestically made from waste paper, they are consequently less expensive to produce, and thereby sold at lower prices. 7. Renewable. This charcoal makes use of waste materials which are common and renewable. Hence, we are ensured of the sustainability of such fuel source. 8. Easier to lit. The use of paper as the main component makes it easier to light compared to wood charcoals. Therefore, the use of gas, plastic and other methods of ignition will no longer be necessary. 9...
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...Fuel from the Fields Charcoal Fuel from the Fields charcoal is an inexpensive, clean-burning, environmentally friendly alternative cooking fuel that is made from agricultural waste materials and thus does not lead to deforestation. This instruction sheet explains how to make Fuel from the Fields charcoal; the process can and should be adapted to your local environment. We encourage you to experiment and let us know your results (you can email us at charcoal@mit.edu) 1 Elements for making Charcoal The main step in making Fuel from the Fields charcoal is carbonization, which requires three things: dry organic material (also called biomass), heat, and control of the amount of oxygen. The biomass may be any of a variety of agricultural waste materials including: corncobs, sugarcane waste (bagasse), millet stalks, groundnut shells, palm leaves or bamboo. It must be very dry in order to burn properly. The heat is generated by setting the biomass on fire, and the oxygen-free environment is created by sealing the drum with sand or soil. The carbonized material is then crushed, mixed with a binder, and then made into briquettes. Biomass Heat Oxygen Control 2 1. Preparing the Kiln A 55 gallon oil drum can be used as a kiln to make charcoal Cut a large opening for filling Cut several holes in the the kiln with the material you bottom of the drum. These want to carbonize. holes allow air to flow through the drum while burning, which results in a hotter fire...
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...ANGELICUM COLLEGE Quezon City An Investigatory Project: Charcoal Leaves as an alternative for cooking Presented to: Ms. Rowelyn Molina In Partial Fulfillment of the Requirements in Physics Submitted by: Christine Siatan Edbal Cajilig Laura Coronel Tristan Yapchiongco Japeth Mendoza Ericka Dizon Gabriel Cabacungan Jetrix Jose Abstract Dried leaves are the main material in the project. The purpose of doing the project is to find an alternative if the ordinary is not available. And the researchers need to find a sufficient and a good alternative so people will not buy charcoal, instead they will do it on their house and cook their own food using this dried leaves charcoal. Flour, water and dried leaves are the main materials of the dried leaves charcoal. To make it: First, burn a three plastic bags of dried leaves until it turn into ashes. Then, put it on a container and put a half cup of water (depends o how many ashes). Put flour and mix it carefully after that mold it to any shape and get the blower or put it on a hot surface. After it dries. The charcoal is now ready to be used. The researchers found out that dried leaves charcoal is a good alternative if the ordinary charcoal is not available. And both the charcoals produce same heat but don’t fire up at the same rate. But both of it can cook food, has the same color of fire and has any size. But you need many dried leaves charcoal to cook food Table of Contents Chapter 1: Introduction ...
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