There are four major reasons of the softening. First, gas grill is threatening the charcoal market.
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
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
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.