Kingsford Charcoal
Kingsford Charcoal, founded in 1920 by Henry Ford and E.G Kingford, produces high quality charcoal and accounts for roughly 9% of Clorox revenues, which is its parent company. Its main competitors in the charcoal market are Private Label brands and Royal Oak; and faces heavy competition from gas grills as substitutes for charcoal grilling. In addition, with declining growth, seasonal sales pattern, and slashed advertising funds, from $6 million in 1998 to $1 million in 2000, Kingsford has encountered a softening market and is need of a new marketing strategy.
Statement of the Problem
Softening market for charcoal and the need for a new marketing strategy that focuses on advertising, pricing, promotion, and production capacity.
Recommended Course of Action
Kingsford should adopt a strategy that achieves two objectives: increase profitability & growth and improve brand awareness. Kingsford should protect its current strong market share, while trying to build a stronger market and hedge against the gaining competition from gas grills.
Rationale For Proposed Actions
As indicated by the lab tests, Kingsford is regarded as a “high quality brand”. Additionally, as the company was the inventor of the charcoal bricks it has a strong image.
Recommendation Strengths
Utilizing Kingsford’s strong public image and quality to its advantage can help with bolstered advertising and set up the company with a differentiation strategy that focuses on taste, quality, and the “true” barbeque experience.
Recommendation Weaknesses
Changing consumer opinions will be challenging in a declining market. Increasing spending and production can also become an obstacle from management resistance and limited production capacity, respectively.
Other Alternatives
As a market leader, Kingsford could choose to just increase its prices by 5%, in alignment with price increase that its competitors have taken. It can also choose to go with the market trends and choose to shift its
Statement of the Problem
Softening market for charcoal and the need for a new marketing strategy that focuses on advertising, pricing, promotion, and production capacity.
Recommended Course of Action
Kingsford should adopt a strategy that achieves two objectives: increase profitability & growth and improve brand awareness. Kingsford should protect its current strong market share, while trying to build a stronger market and hedge against the gaining competition from gas grills.
Rationale For Proposed Actions
As indicated by the lab tests, Kingsford is regarded as a “high quality brand”. Additionally, as the company was the inventor of the charcoal bricks it has a strong image.
Recommendation Strengths
Utilizing Kingsford’s strong public image and quality to its advantage can help with bolstered advertising and set up the company with a differentiation strategy that focuses on taste, quality, and the “true” barbeque experience.
Recommendation Weaknesses
Changing consumer opinions will be challenging in a declining market. Increasing spending and production can also become an obstacle from management resistance and limited production capacity, respectively.
Other Alternatives
As a market leader, Kingsford could choose to just increase its prices by 5%, in alignment with price increase that its competitors have taken. It can also choose to go with the market trends and choose to shift its