Kingsford Charcoal Brief Case Report

Increase in sales by using the same sales channels, offering more styles, and increase presence in new markets for AGI products.

While this region’s high population offers a great deal of potential for Firehouse subs, it will also be difficult to penetrate the market. This is because with a heavily populated area, such as one of the numerous cities in this region, has been saturated with restaurants. Many would think of direct competition from Subway or Quiznos, but there are other forms of competition within the restaurant industry. To gain a foothold in this region, the company will have to differentiate itself from the competition. The most relevant piece of information

Attracts customers with other preferences and may compete broadly in the industry by branching out in new locations

As mentioned before, charcoal is well in the mature stage of the product cycle in which more advertising would be optimal. Charcoal should be Kingsford’s cash cow in which they can use the funds generated from them and invest it in research and development; so that they may introduce a new product preferably in the gas grilling market in the near future. As with a stagnant price increase, the same can be said of advertising from Kingsford. Their advertising budget has decreased throughout the years, while the gas grilling market has increased its’ advertising budget each year. MMA’s analysis of 1998 spending shown that TV advertising can drive volume increase of around 7% for the current year and even a 3% to 4% increase of volume purchased in the following year. This indicates the importance of advertising. One area which is lacking for the whole charcoal category since Kingsford is the only brand that advertises at all for charcoal. Perhaps advertisements can show how charcoal grilling is the correct and tasty way to grill instead of gas grilling. Kingsford can look to do blind tastings again and publish the findings. If they look to stretch the grilling season they should look beyond just NASCAR events, but perhaps also with NFL sporting events, as well as other events and activities in which grilling is popular. They could become a sponsor in which sports can endorse them

Lastly, the company suggest to expand their current inventory through increasing production and capacity. With the increase in production rate the company can gain more consumers as a whole through supply and demand. Doing this would give the company an opportunity for more exposure and perhaps better brand recognition.

Expand Product Line: Kingsford has the option to set the pace for charcoal innovation by expanding product lines to generate additional interest in charcoal grilling. Engineering more environmentally friendly, flavor imparting and scented charcoals such as vanilla or mint flavored charcoal may do this. In response to the trending up of gas grill usage from previous years, Kingsford could consider entering into wood chips production for gas grills. Additionally, to prevent seeing charcoal as a seasonal product, awareness could be drawn to other uses of charcoal, such as an odor remover in the home or a type of soil amendment by gardeners to improve crop growth. Education on these other uses will increase demand for charcoal all year round and not just during the warm months when grilling is prevalent.

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.

To expand business and increase profits for Little Red Roaster’s catering and/or wholesaling services, while maintaining quality goods and customer experience.

Although charcoal had trended down since 1997, Kingsford reduced its media spending from over $6 million to $1 million, making the situation even worse. In the other side, the substitute product increased their media spending from $4 million in 1998 to over $10 million in 2000.

Executives have noted that beef consumption in the US is declining and this explains why volume sales have remained stagnant over the past few years. On the other hand, consumption of chicken and turkey has doubled since the 1970s (AMI, 2009). Considering this information, one recommendation is to offer a sale “Buy one A.1. Steak Sauce, get one A.1. Marinade free”. This type of sale will appeal to customers who plan on grilling both steak and chicken during Memorial Day weekend. Because of the small amount of steak sauce used at one time some consumers do not find it necessary, nor are they interested, in buying 2 bottles of steak sauce for $5. This promotion would also help increase brand awareness for A.1. marinades without spending a lot of money on outside advertising.

Clorox Company produce 50 different products by 2000, includes different categories such as Household products such as glad, water filters (Brita), cleaning products, auto care; Specialty products such as charcoal and lighter fluid; and International products such as dressing and sauces. Kingsford Charcoal is the one from Clorox’s products and mostly used

1. Describe the main challenges faced by brand managers Marcilie Smith Boyle and Allison Warren. Of what relevant trends should they be aware?

Brand management is a broad concept and it has its own elements that actually give a meaning to it. Without these elements, a brand cannot exist. These elements are – brand name, brand logo, packaging, character etc.

Priority of internal growth, sustained by innovation, quality and controlled distribution. Guarantee brands’ autonomy in accordance with their own indentity. Share skills and experiences of each brand and implement synergies. Set up and develop teams of excellence.

Brands need to be respected with time. If the managers lose interest in their brands as there is no innovation, lack of advertising, the same