case 1 - KRUNAL GOSALIA MKT 81 October 12, 2010 Case Study...

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KRUNAL GOSALIA MKT – 81 October 12, 2010 Case Study # 1 Kingsford Charcoal (for brand extension) Kingsford is facing increased pressure to meet financial targets in an environment where the grilling market segment consumers are gradually shifting from charcoal to gas and the ongoing competition from private label charcoal competition. Situation and Evaluation – Industry - Barbecuing is part of the American culture and by the late 1990s, 3 in 4 U.S. homes had a barbecue. Approximately half of grill owners were heavy to medium users by the late 1990s and charcoal was preferred by die hard grillers, primarily for the flavor imparted in food. The grilling industry is mature and Kingsford is well positioned through its perceived quality to continue its dominance in the charcoal category. Competition – In most channels, Kingsford competes with Royal Oak and private label brands. The charcoal market is dominated by Kingsford (57% market share), Royal Oak (7%), and the remainder is captured by private label brands (34%). Buyer Behavior –the market is shifting toward gas grilling. 60% of consumers perceive Kingsford ad a quality product. Additionally, one-third of charcoal purchases are impulse buys.
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case 1 - KRUNAL GOSALIA MKT 81 October 12, 2010 Case Study...

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