The lack of control of vendor and retail pricing is also a weakness for Kingsford, because they have not taken corrective action, sales are less predictable for their various markets. The added competition from Royal Oak and private labels also had an impact on the sales turnover of the product.
PRICING INCREASES- In most cases, the increase of pricing would be ill-advised, but when examining the pricing trends of charcoal for grilling in terms of Kingsford as compared to its competitors, both brand name and private brand, shows that a price increase is virtually demanded by the pace that the industry itself is keeping with price increases.
Kingsford Charcoal not only improves the flavor of the food cooked on the grill, but offers a more authentic grilling experience and enhances the fun of outdoor gatherings with family and friends.
Off-shore production could also be considered as a way to reduce costs and improve profitability. This would have the effect of reducing fixed costs and increasing profitability.
The Colors sales team had years of experience in working with a variety of household names and many senior sales executives at the company, such as Grand Lamentable, vice president of sales, who sold charcoal earlier in their careers.
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.
Finally, consumers will probably also accept the price change, as it simply reinforces the Kingsford brand as being a premium product, and the small price increase is likely not enough to drive people away from grilling occasions, which are viewed as a happy, family-fun type of activity.
While some higher-income males will be interested in charcoal grilling, it is my opinion that they will turn more to the expensive, convenient gas grills than will the lower-income males.
Brand Through the years, the firm was purchased by an investment group and later acquired by Clorox inwhich owns 50 other products that it distributes.
The continued positive relationship that Kingsford has with vendors and retails will be sustained through promotional alliances, pricing collaborations and logistical placement.
Kingsford has been leading in the charcoal business. Kingsford has the option to set the pace for charcoal innovation by expanding product lines to generate additional interest in charcoal grilling.
Also, advertising should be increased outside of the peak grilling season, in an effort to increase the number of overall grilling events.
After successfully targeting instant users, I would recommend targeting regular exclusive users. Clearly, the Kingsford charcoal business is a great business to be in.
Alternatives In a response to the strengths, weaknesses, opportunities and threats to the organization, several alternatives should be considered in strategizing the best way to increase the wealth of the organization.
Subsequent sections also showed that this is not exclusive to Kingsford, but it common in the case of name brand and private label competitors. Royal Oak has done very little advertising in the past year. For this purpose, brand managers Marcilie Smith Boyle and Allison Warren were assigned the task to revamp the brand image of Kingsford, and present a robust marketing plan focused on the future, that not only improve the sales of the product, but improve the turnover of the overall charcoal industry.
Another threat to Kingdoms Is how Royal Oak and the private brands raised prices and the charcoal category as a whole decreased merchandising opportunities, which could have driven some customers to gas grills for a cheaper option. Increase in non-seasonal business this will both increase volume and smooth out production.
The increased operating funds can be used to develop new-offering realization process or customer relationship management process, since one-third of charcoal purchases are impulse buys. Furthermore, the overall experience of charcoal grilling should be conveyed. This product would be marketed to higher income, professional types who prefer the convenience and aesthetics gas grills look better of a gas grill but still want the authentic barbeque flavor associated with charcoal grilling.
Kingdoms 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 conclusion, the primary objective of Kingsford should be to balance the needs of its advertising, pricing, promotion and production features to ensure that the brand remains a leader in the grilling industry, resulting in market share growth for the Clorox organization Exhibit A SWOT A SWOT analysis will formulate a strategy to determine the best alternatives and recommendations in regards to advertising, pricing, promotion and production for Kingsford.
This message will increase Kingsford sales markedly due to the market share advantage that Kingsford maintains in the charcoal industry. In terms of the grilling category as a whole, there are three categories: Engineering more environmentally friendly, flavor imparting and scented charcoals such as vanilla or mint flavored charcoal may do this.Even taking into account the fact that Kingsford is the higher priced alternative, the increases in pricing by competitors have in fact almost doubled those of Kingsford in the case of Royal Oak and quadrupled in the case of Private Label.
By: Abinesh Manoharan, Aditi Jagdish, Meryem Bektas, Sabari Ram & Swetha Vasu. Kingsford Charcoal case 1 EXECUTIVE SUMMARY Kingsford Charcoal company has two choices- short term profits vs.
long term. Case St, Kingsford, MI is a sq ft 1 bath home sold in Kingsford, Michigan. Case Analysis - Kingsford Charcoal Case Analysis - Kingsford Charcoal Background of the Study United States is well known for its barbequing community.
Competition – is Kingsford competing against other charcoal manufacturers, gas grills manufacturers, or a combination of both? 4. Promotion – what was the best strategy to promote the Kingsford brand? Should Kingsford strive to increase overall grilling events, or just emphasize the Kingsford brand?
5. Capacity – if the Kingsford business could. Free Case Study Solution & Analysis | killarney10mile.com Market: The charcoal industry is mature with minimal growth. Kingsford charcoal made up 9% of Clorox’s total revenues and needed to make their numbers in order for Clorox to make its overall numbers.Download