Kingsford Charcoal Marketing Strategy

Dutch Bros. Coffee objectives are to generate a steady stream of revenue through the business to Consumer (B2C) coffee services industry. The goal is achieved by maintaining a low cost to develop & maintain their business through small franchise establishments that service a massive volume of customers.

* Its so-called innovative or revolutionary products do not gain the company as much credits as Samsung or Apple does. The market will test its ability to

Although Kudler Fine Foods has chosen two very specific markets to target, a more thorough understanding of those target markets is needed to deliver what they want. One of KFF’s target markets is gourmands. KFF’s research focus in this area has been primarily on the supply side: Kathy monitors what products the competition is offering, what products are advertised in gourmet magazines, and what products are shown at gourmet conventions and websites. To discover what gourmands want, KFF also needs to research the demand side. Mining on-line blogs and gourmet food forums are two ways KFF can increase its understanding of what gourmands want. Customer surveys, such as the ones KFF currently uses in-store, can also be revised and used both in-store and on-line. Specific areas to be researched include:

Grilling is engraved in American culture as well as a highly seasonal activity. Kingsford Charcoal is in the business of selling charcoal for grills. Even though Kingsford increased its market share in 2000, their forecast indicates they will not reach the initial revenue mark. With the charcoal market’s growth slowing, and the gas grill market gaining market share, Kingsford needs to revise its strategy, and their marketing mix to meet original expectations for itself and Clorox. The following report will identity the issues Kingsford faces in the market place and recommend actions to take to resolve these problems. First we will examine

A second alternative could be to increase their advertising budget because it has been the only brand within the charcoal industry that has been advertising. Their advertising budget is currently very low so with an increase in spending it could definitely generate more attraction and promote Kingsford charcoal as the better alternative.

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.

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.

In previous years, we saw that TV advertising drove a 7 percent incremental volume increase in the targeted market during the same year and increased 3-4 percent the following year. In fact, Clorox should increase their advertising budget of at least $7 million, and focus on advertising through mass Media. Moreover, because charcoal is a seasonal product, it is important to increase the brand advertisement during the peak season of April through September. The advertising method should be oriented in order to show the advantages of using charcoal and compare it to the substitute product. The main goal of the advertisement should be to motivated consumer to use Kingsford charcoal over any other substitute product or direct competitors. They have to transmit the message that “Only charcoal gives a real barbecue flavor”

Hickory Hill is a well-established smoked foods company specializing in smoked turkeys and has been selling its products throughout the northwestern part of the continental United States since 1967. Initially owned and operated by a German immigrant family, the key to the company's success lay in a secret smoking process native to Rhineland, Germany. By 1998, the firm owned 250 retail outlets in addition to 400 franchise arrangements. Though the company sold a variety of turkey products, its competitive strength lay in one particular type of smoked turkeys: Tender Most (2010 sales: $11,475,250). The 2011 sales were forecasted to have a 12% growth over the 2010 sales level.

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.

Kingsford had reduced its media spending from over $6 million in 1998 to a little over $1 million in 2000. Gas Grill increased its media spending during the same time period. * Reduction in Promotions: Royal Oak had contributed substantial funds towards merchandising opportunities at retailers such as temporary price reductions, features and displays. Kingsford’s merchandising in 2000 was consistent with that in 1999. * Weather Pattern: Precipitation and temperature comparison with 1999 showed a slight increase in rainfall in October through December 2000, coupled with major drop in temperatures. Cold weather reduced the opportunities for grilling occasions. * Lack of R&D: Kingsford was consistent with research and development and had spent $63 million since 1998. Kingsford’s research team not focused on how to overcome to Gas Grill. Lack of research on what makes the charcoal easy to use and require less preparation. These key problems cause the decline in the Sales. Let’s see what are the alternatives available to this key problems and how can we overcome with it. Some of the Key problems require funding, for example Media Advertising.

Together, they developed a new menu around freshness. Next, “wood-fire grilling” was introduced, as research showed it was the most preferred way of cooking seafood. This was a very effective way of repositioning the brand, as it helped to shift perceptions away from the fried foods of the past to the new fresh preparation methods. Furthermore, “grill masters” were introduced, and the position quickly became the most prestigious job in the restaurant. This was also highly effective, as it added a higher quality feel to the food, and served a dual purpose as the centerpiece of the marketing plan in 2011. In addition, a fresh fish menu was provided to consumers, separate from the main menu, which highlighted the daily catch. Finally, select ingredients were upgraded and restaurant locations were remodeled in order to strengthen the perception of top quality and freshness, while appealing to consumers other senses.

Product Innovation – Innovation of new products had failed many times and MTI has lost reputation with Wall Street. This process had been placed on the backburner and when the CEO came on board there were only six products in the pipeline. Therefore, to be successful in the future, MTI needs to invest more in R&D and focus on delivering new products.

According to Hyman and Sierra (2010), before a service or product is introduced into the market, the marketer needs to have a good understanding of the consumer’s needs and preferences. For that reason, it is recommended that management considers all of the limitations and challenges that the Nepalese market has for the Starlight Stove.

Interestingly, using these same criteria, marketing managers may be able to make the product more appealing. For example, they could provide a sample stove in the center of a village – where people could view and test it – increasing its triability and observability. This experience may also