Kingsford charcoal case. Kingsford Charcoal Case Study 2022-10-27
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Kingsford Charcoal is a brand of charcoal that is used for grilling food and is a popular choice among consumers due to its high-quality and consistent performance. The brand was founded in 1920 by Henry Ford and is now owned by The Clorox Company, a leading consumer products company.
One of the key factors that has contributed to the success of Kingsford Charcoal is its focus on sustainability and the environment. The brand has implemented a number of initiatives to reduce its environmental impact, including the use of recycled materials in its packaging and the use of sustainable sourcing practices for its raw materials.
In addition to its focus on sustainability, Kingsford Charcoal has also been successful due to its commitment to innovation. The brand has consistently introduced new products and technologies to meet the changing needs and preferences of consumers. For example, Kingsford Charcoal recently introduced a line of briquettes made from 100% hardwood, which are more durable and have a longer burn time than traditional briquettes.
Another factor that has contributed to the success of Kingsford Charcoal is its strong brand reputation and marketing efforts. The brand has a long history of sponsoring major events and partnerships, including the National BBQ Tour and the NFL Tailgate Tour, which has helped to increase brand awareness and loyalty among consumers.
Overall, Kingsford Charcoal has been able to achieve success in the crowded and competitive market for charcoal due to its focus on sustainability, innovation, and strong branding and marketing efforts. By continually evolving and adapting to the changing needs and preferences of consumers, Kingsford Charcoal has been able to maintain its position as a leader in the industry.
This is likely to strain the existing charcoal plants. From 1998 to 2000, Kingsford saw a steady decline in growth, ranging from a 2% growth in the first half of 1999 to a loss of 5. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study. Organizations achieve its objectives and goals when it develops a development strategy and extensive research. Forces students to step into the brand manager's shoes, analyze the reasons for the current situation, and come up with recommendations related to pricing, branding and advertising, and merchandising and promotion of the Kingsford brand. Advertising — should advertising be increased, and by how much? A positive change in the pricing structure would retain the growth rate of the company as suggested by the brand managers.
Kingsford has not done any significant level of advertising or promotion recently and likely due to this, nor have any of the competitors. Why do people use charcoal versus gas when grilling? Customers who preferred charcoal grilling wanted the hands-on experience and the flavour that it added to their foods, especially found for occasions such as desire to be outdoors, spending quality time with friends and family, ease of clean up duties, and the informality of a meal during the day. Learn More To meet its objective of reaching out to the potential consumers, Kingsford Charcoal should position itself rightfully and ensure that its products from the blue and the red bags are in line with the expectations and demands of consumers. Of what relevant trends should Kingsford brand managers be aware? This is reflected in each company's pricing strategies. What should brand managers Marcilie Smith Boyle and Allison Warren propose to their managers, Gordon and LaMontagne? Because of the lack of advertising, and the absence of the charcoal grilling message on the airwaves, new customers are not being enticed to try charcoal grilling, those who are indifferent to the use of charcoal are not making a conscious, reliable decision to use charcoal, and the loyalists are most likely not using as much charcoal as they could, or should be using. The need to employ competition-based strategy is to facilitate effective competition among Kingsford Charcoal and its competitors, such as Royal Oak. This could also be helpful in their competition with gas grilling.
Kingsford Charcoal [10 Steps] Case Study Analysis & Solution
The selected advertising media should relay the right information concerning the quality and quantity of products offered by Kingsford Charcoal. The use of two senior managers, with a single overlap, can limit the progress of Kingsford strategic plan to attain its financial targets. Furthermore, a bag of charcoal costs less than the commensurate amount of propane necessary to support the gas grilling experience. This solution includes: A Word File Kingsford Charcoal is a dominant player of the charcoal industry, but due to certain trends of the company and management decisions, the company was unable to focus on its target goals resulting in a loss of market share and company growth. Strengthen the brand by employing a marked increase in advertising and specific promotional themes, 4. In the summer of year 2000 however, the overall charcoal industry including Kingsford charcoal experienced a softening in their growth and revenue. Each alternative is likewise accompanied by an analysis of the alternative and in-depth data which will discuss how that alternative could be put into action: Promotion of the charcoal grilling concept From 1996 to 2000, an analysis of grill shipments, both charcoal and gas, can be graphically represented as follows: What is seen in the graphic is a consistent outpacing of charcoal grills by gas grills, even in years when overall shipments were down in quantity.
Subsequent sections also showed that this is not exclusive to Kingsford, but it common in the case of name brand and private label competitors. Along these lines, new varieties could also cannibalize regular charcoal sales. This was when Henry Ford, in the 1920s, found an effective process of turning wood scraps into these charcoal briquettes. Step 9 - Take a Break Once you finished the case study implementation framework. Action Plan Given the potential benefits and costs of each alternative presented, there are specific measures that Kingsford should take in order to increase the overall charcoal market size as well as maintain their dominant market share. People that barbecue using charcoal are usually seeking for the original taste of charcoal-grilled food. This will also help to maintain a positive relationship with retailers because the benefit of increased sales that they receive from customers who purchase Kingsford should remain intact.
KINGSFORD CHARCOAL CASE complianceportal.american.edu
In terms of opportunities, Kingsford is seen as the leader in the charcoal category, and it has already established valuable brand equity in the charcoal market. Hence, Kingsford Charcoal will achieve the target goals, or at least arrive close to them by implementing the suggested action plan. Kingsford Charcoal now faces in pressure to increase its revenue in an environment where consumers in the grilling market are slowly shifting from charcoal to gas grilling. It is important for Kingsford Charcoal to see that many consumers of charcoal and grill purchase these products during the months of April and September. This effort can be enhanced by partnering with grill manufacturers, in order to increase the breadth of charcoal grill product, and significantly boost the sale of Kingsford products. Also, the environmental and health regulations of some regions may prove too stringent for successful market development. Step 8 -Implementation Framework The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions.
The briquettes were packaged into different bags according to their specialty; some were just regular briquettes while others had lighter fluid in them that made them easier to start and user friendly. Research study revealed that whole grain pizza has already been introduced into market by industry leaders like Kraft and Nestle, however having a solid brand image and ability to deliver a unique tastier delight left a great potential and opening in pizza market for TruEarth. The role of the brand team is to formulate the business strategies, perceive the consumer trends, coming up with advertising strategies, generating short-term predictions and assisting in the promotion of sales. Learn More Another recommendation is on the fact that Kingsford Charcoal needs to tailor its advertising and positioning strategies to the needs of young families, which are new entrants in the grill and charcoal market. Charcoal grilling provides an authentic taste and smoky flavor keeping the cost of grilling low, whereas gas grilling provides greater control over cooking i.
Significant data and social media chatter can easily confirm this. Kingsford is also seen as a seasonal product with nearly 60 percent of purchases happening between May and September, which is limiting for sales volume throughout the year. In 2000, the Kingsford charcoal brand was facing revenues below forecasted levels, while the charcoal category as a whole was slowing. Grilling in America is an essential part of their culture to many. Since the 1980s, Kingsford had continued to enjoy steady, moderate growth of 1-3 percent in revenues each year.
Class Action Claims Kingsford Misleadingly Represents ‘100% Natural Hardwood’ Charcoal
Additionally, major competitors like Royal Oak, as well as private label brands have been emerging more strongly over the recent years. However the summer of 2000 represented the first softening in the overall charcoal category in several years, and Smith Boyle and Warren were tasked with determining the causes and coming up with recommendations. Kingsford represents one of the largest product groups within Clorox's portfolio and represented approximately 9 percent of Clorox's revenue and a substantially higher net income. The company relishes a relatively larger market share than its competitors in the charcoal category. Furthermore, Kingsford should continue to influence customers to use its product more often in the fall and winter months by promoting increased tailgating primarily for sporting events to increase the number of occasions in which their product is used. The advertisements will also require careful delivery of the message, in order to promote sales from both male and female consumers.
The next step is organizing the solution based on the requirement of the case. The managers appointed for the job in the Clorox company had known that Clorox was facing production issues since there was a change in the company's focus from the production sector to sales. The Clorox Company was founded in 1913. Appropriate positioning of the red bag in the market can increase the demand for the products and thus boost purchases that target customers make. Although, the promotional activities were of limited focus, such as the advertisement where the company did not invest a larger amount of effort and time in the Kingsford Charcoal advertisement. Decision analysis There are a few potential steps that Kingsford could consider in order to attain its financial targets.