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Kingsford Charcoal's Marketing Plan

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Kingsford Charcoal's Marketing Plan
Kingsford Charcoal Marketing Plan

Introduction:
Kingsford Charcoal (“Kingsford”) is the leading brand of charcoal in the United States, and one of the largest product groups in the Clorox portfolio. Three out of four households in the U.S. owns a barbecue, and grilling has grown in popularity year after year. Kingsford’s revenues grew 1 to 3% annually in the 1980’s and 1990’s. However, the summer results in July 2000 were below forecast. The drop in charcoal demand coincided with an increase in demand for gas grills, due to the convenience of faster cooking and easier cleanup as compared to charcoal grills. Charcoal grilling beats gas grilling in taste tests 2-to-1, but there may not be enough knowledge among consumers of this fact. Kingsford had dropped its advertising budget 83% from 1998 to 2000, with the belief that the products would sell themselves as long as they were displayed prominently in stores. In this paper, we will develop a marketing plan for Kingsford to renew consumer interest and increase profitability and market share.
Strategy:
75% of American households own grills, and men are the primary operators of grills (Exhibit 1). Kingsford should recognize American men who barbecue frequently as the target market. Gas grilling accounts for 61% of the grilling market share (Exhibit 2 & 4). To encourage people who use gas grills to use charcoal grills, Kingsford should advertise the taste benefits, as proven in taste tests, of charcoal grilling. People who use gas grills prefer the convenience, so Kingsford should emphasize its “instant” charcoal, as it is more convenient than “regular”.
Table 1. Situation Analysis
Customer American men who barbecue frequently (Exhibit 3)
Context People moving towards gas grilling for its convenience (Exhibit 1).
Decreasing growth in charcoal sales (Exhibit 2 & 4).
Company Premium Charcoal Brand offering the highest quality and easiest-to-use charcoal (SWOT Analysis on Exhibit 2)



References: Narayandas, D & Wagonfeld, A (2006) .Kingsford Charcoal. Harvard Business Review Infoplease. U.S. Households, Families, and Married Couples, 1890–2007. http://www.infoplease.com/ipa/A0005055.htmlHearth, Patio, Barbecue Association (HPBA) (2011). 2011 State of the Barbecue Industry Report.http://www.hpba.org/media/barbecue-industry/2011-state-of-the-barbecue-industry-reportBarbecue on the Internet. Survey Results & Barbecue Trends. http://www.barbecuen.com/bbqstats.htm#axzz3Fu5EAy6EBarbecue Grill Industry facts. http://answers.google.com/answers/threadview?id=218241

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