...Discussion 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...
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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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...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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...The product managers for Kingsford Charcoal, Marcille Smith Boyle and Allison Warren must devise a plan to increase sales of Clorox’s premier product. Because of increased competition from gas grillers, adverse weather conditions and lack of proper advertising, the seasonal grilling business that Kingsford competes in is facing a downward shift in its product cycle. In addition, stiffer competition from private labels, direct competitors like Royal Oak and increased market share from gas grillers have made Boyle and Warren consider new ideas such as raising pricing among different elasticity scenarios, increasing advertising spending to at least $7 million during peak months, promoting in terms of charcoaled grilled food is better tasting than gas grilled food, and forecasting sales in relation to production, as substantial growth will cause supply shortages. In FY 2000, Clorox had a market cap of $9.71 billion with a 59.5% market share translating to $145,650 increase in market cap for every market point earned. In general, Kingsford needs to brand itself better. Its lack of TV advertising has impacted its sales negatively. In addition, private labels and Royal Oak haven’t done much to increase their share either, but still raised prices. Kingsford has tremendous opportunity to drastically increase its market share by following the same successful marketing pattern it had in 1998 and by also using its market survey research results of charcoaled grilled food tasting better...
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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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...Kingsford Charcoal Target Market * Since three out of four US households owned a barbecue grill and over 80% of the grill ownership came from “younger, larger, and higher income families”, therefore these types of individuals would be the primary target market. (page 2) * In addition, men would be the ideal gender for the target market since “60% of barbecuers were men.” (Page 2) The men would also be “18-54 - die hard grillers” since after comparing both grilling methods of charcoal and gas, charcoal provided a more “hands on” experience as well as a better tasting flavor. The article states “from a blind test performed with 796 men and women ages 18-54 they asked to compare foods that were cooked on both gas and charcoal and the participants “preferred the taste of charcoal-grilled over gas”.(Page 8) * When it comes to taste the most appropriate target segment would be one who prefers “a real barbecue flavor, smoky flavor, and a taste like it was grilled over a fire.” (page 8) Even though charcoal takes longer to set up, it provides a better satisfaction in the taste category for the consumers. Well worth the wait. * Furthermore, two main target segments that Kingsford Charcoal should focus its efforts on are the Regular Exclusives as well as the Instant Exclusives. The benefits of targeting Regular Exclusives is that they enjoy the “hands on experience” that comes along with the quality and taste of their food. However, Instant Exclusives prefer the quick...
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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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...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 Smith Drive Upgrade Mahdi Mohammad (n9428691) Queensland University of Technology Table of Contents ABSTRACT 3 1.0. INTRODUCTION 3 2.0. NEED FOR THE INITIATIVE 5 3.0. INITIATIVE’S LIFECYCLE 5 Initial Planning 6 Procurement 7 Design 9 Development 10 Delivery 11 Operation and Maintenance 11 Retirement 13 Civil Engineering Research 13 4.0. CIVIL ENGINEERING SYSTEM 15 5.0. STEWARDSHIP OF THE INITIATIVE 16 6.0. VALUES REGARDING THE INITIATIVE 16 Economic 16 Social 17 Sustainability 17 Political 18 7.0. ONLINE DISCUSSION FORUM REVIEW 19 8.0. CONCLUSIONS AND INFORMED POSITION 20 Conclusions 20 Informed Position 20 ACKNOWLEDGMENTS 21 REFERENCES 22 ABSTRACT The Brisbane City Council is embarking on the project of completing the staged upgrade of Kingsford Smith Drive to decrease traffic congestion and advance safety on the busy road. The Kingsford Smith Drive is a major lane connecting Brisbane CBD to the Brisbane Airport, Port of Brisbane, North-shore Hamilton, and the Australia Trade Coast area. The road was called after the aeronaut Charles Kingsford Smith. It links the suburb of Pinkenba to the Brisbane central business district at the Breakfast Creek. The Roadis categorized as a primary freight route. The demand for transportation of freight on Kingsford Smith Drive is anticipated to grow promptly. Construction of the phase one of the projects that widened a portion of Kingsford Smith Drive from four to six lanes was accomplished in mid-2011...
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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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...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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...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...
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...goes to northern and eastern. We need to assign each secret shopper to go to at least five stores every day. Their duties included talking to the store managers, cashiers, greeters and even some of the customers for getting the information of overall service quality. They also need to take times to observe how the store employees interact with the customers and check the cleanliness of the whole store environment. The secret shoppers need to provide the evaluation by circling the evaluation numbers on the Checklist. After hiring the enough people for doing the secret shopping work and assigning them the duties and locations, we should start to send them to different stores as soon as possible. The implementers of this plan will be Nate Kingsford, Denise Nimtz and Catherine Wu. After the secret shopping is finished, we will...
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