In this report, we will be analyzing the current performance of Kingsford in the marketplace and identify the main cause of revenue deterioration. Thereafter, a comprehensive strategy and marketing plan will be presented.
We will begin with identifying current business orientation of Kingsford. Then, we will analyze its position in the marketplace and various external forces. In-depth analysis on the strengths and weaknesses of Kingsford is done to have a clearer picture on what should be done to boost its revenue and profit. The analysis theories used are Porter’s Five Forces, PEST, and SWOT. There are a few important findings that require immediate attention.
Kingsford is a superior product compared to its nearest rival Royal Oak, but it has not been spending on media advertising. It has also been losing market share to gas grilling which is more convenient, has shorter cooking time and easier to clean up.
Outdoor grilling is a booming activity in modern USA, which provides excellent opportunity for market growth. Thus, we will present an overall marketing strategy and establish core marketing activities to boost its profitability and MBAs. We will then attempt to re-strategize marketing mix to help Kingsford back on its track. The real challenge is to attract more people to charcoal grilling from gas grilling and at the same time capture more market share from Royal Oak.
TABLE OF CONTENTS
2.0ANALYSIS ON KINGSFORD MARKET SITUATION
2.2Porter’s Five Forces5
2.3External Environment (PEST Analysis)6
2.5Key Findings in Kingsford Market Analysis8
3.1Overall Marketing Strategies Recommendation9
3.2Marketing Mix Recommendation10
Kingsford Charcoal is one of the core specialty products manufactured and sold by Clorox Company. Currently, it has 2 products marketed under “Kingsford” brand name; Regular – “Blue Bag” and Instant – “Red Bag”. It enjoys steady revenue growth since 1980s, but sales statistics for FY2000 shows that there would be a drop in volume growth, which will have a major impact in its net profit. As a market leader, Kingsford maintains its market share, but the main concern will be the performance of entire charcoal category which declines in terms of shipping and penetration trends (Figure 1). The company has been practicing sales orientation, focusing to sustain market share within charcoal category and has been reducing advertising budget. This report begins with a thorough examination on internal and external factors which contributes to Kingsford performance in the marketplace. It will highlight key reasons for its decline, and analyze the consumer’s needs and wants. In the next section, this report will propose marketing strategies and plans to assist Kingsford achieves its targeted revenue and profit.
2.0 Analysis of Kingsford Market Situation
The Marketing Audit, Porter’s Five Forces, SWOT, PEST are used to analyze the internal and external factors to better understand Kingsford position in the charcoal business.
2.1 MARKETING AUDIT
Figure 3: The Marketing Process for Kingsford
2.2 PORTER’S FIVE FORCES
Porter’s Analysis was carried out to assess the strength of and market position of Kingsford against its competitors. The results are shown in figure below.
Figure 4: Position of Kingsford Charcoal according to Porter’s Five Forces
2.3 PEST ANALYSIS
The acronym PEST is used to explain the framework for analysis macro-environmental factors. The macro-environment consists of Political forces, Economic forces, Social-culture forces and Technological forces.
Figure 5: Business Environment Analysis (PEST)
2.4 SWOT ANALYSIS
SWOT analysis is used to analyze...