ying - Mktg 500 Case Study: Kingsford Charcoal Name: Meng...

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Mktg 500 Case Study: Kingsford Charcoal ………… Name: Meng Li Ying Meng Jae Young Kim 1.Summary Kingsford charcoal, owned by Clorox plays a key role in its mother company’s financial performance. Being the leader in charcoal industry, Kingsford had enjoyed steady growth in the past decade, however, the problem of the softening in the charcoal category emerged in recent years.
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There are four major reasons of the softening. First, gas grill is threatening the charcoal market. Second, charcoal business has limitation on seasonal sales. Third, the price shifting occurs in the market. Fourth, Kingsford lacks advertising and promotion activities. To overcome the problem of sales decline, Kingsford has to evaluate alternatives and develop marketing strategy regarding pricing, product development, branding, distribution and merchandising, advertising and promotion. After analyzing the alternatives, an integrated marketing strategy with a reformed marketing mix is recommended. The plan includes recommendations on new charcoal product development, moderate all product line price increase, E-commerce development, sales promotion, and a multi-channel advertising campaign delivering the key messages of fun, family value, professional and social responsible. 2. Situation Analysis Company Description 1913, Clorox was founded in San Francisco. The company has grown from liquid bleach producer to a multinational corporation selling more than 50 products in 2000. Procter & Gamble acquired the company in 1957. However, in 1969, US Supreme Court forced P&G to divest Clorox, because the combined company would create a monopoly in the household liquid bleach market. After divestiture, Clorox pursued an aggressive growth strategy that has led to its success. Clorox split its product lines into three major categories: US and Canada household products, which generate 40% of its annual sales; US specialty products, which generate 45% of its sales; and International products, which generate 15% of its sales.
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Kingsford Charcoal Kingsford represented one of the largest product groups among the entire Clorox portfolio. In 2000, Kingsford generated 9% of Clorox revenues. Kingsford is the leading brand in charcoal industry. It is positioned as the superior brand with its great performance in grilling. Kingsford charcoal is known to be the charcoal brings best flavor to food. Kingsford carries a variety of charcoal products, including the regular charcoal (blue bag) and Match Light (red bag). Due to Kingsford’s great proportion of Clorox’ revenue, Kingsford’s performance has a big effect on Clorox’ financial performance. Industry trend and consumer behavior Barbecuing is part of American culture. By the late 1990s, 3 out of 4 U.S. households had a barbecue. From 1987 to 2000, the total number of barbecue events had grown from 1.4 billion to 3 billion. The grilling consumers view grilling as an overall experience.
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This note was uploaded on 05/14/2010 for the course BUSINESS T mktg 500 taught by Professor Kimmoon during the Spring '10 term at University of Illinois at Urbana–Champaign.

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ying - Mktg 500 Case Study: Kingsford Charcoal Name: Meng...

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