Kingsford charcoal
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Case Overview: Kingsford Charcoal
An important division of the Clorox Company, Kingsford Charcoal is a $350 million brand facing a softening market and competitive changes. Brand Managers Marcilie Smith Boyle and Allison Warren must sift through a wealth of data and conflicting opinions to take the brand to "a new level of growth and profitability."
1. Analyze the competitive and market situation facing Kingsford. What are the most important competitive threats and opportunities, and how should Kingsford address them?
2. Propose a marketing plan for Kingsford Charcoal in the next twelve months. This should address both strategy (target market, positioning) and tactics (marketing mix).
Notes/Tips
•Who are the competitors Kingsford should be most concerned with?
•Assess the analysis Marcilie and Allison have done so far. What have they learned? What have they missed? Do you agree with their conclusions?
•What are the attitudes of different stakeholders in the situation regarding Kingsford?
•In Exhibit 4, "#" stands for pounds in a package, and % change is between CY00 and CY99.
•In Exhibit 11, $ per Sc indicates $ spent per thousand cases sold.
Note: Work must be standard quality work to receive full marks
Use the case study “Kingsford Charcoal” (Harvard Business School case, no. 9-506-020).
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Solution Summary
The solution includes a plan for Kingsford charcoal and an analysis of competitive marketplace.
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KINGSFORD CHARCOAL
Competitive and Market Situation facing Kingsford
Kingsford is one of the main products within the Clorox's portfolio and is an important part of its overall performance. From in-depth analysis of why Kingsford sales had dropped, it appeared that in response to increase in prices of Royal Oak and other private labels, channel partners increased prices of Kingsford to consumers. It was despite Kingsford not increasing prices. It was believed that some of the consumers negatively reacted to charcoal price increases and switched to gas grilling. The category was further weakened by absence of advertising because of which there was no charcoal message on the air. This trend was further exacerbated by a reduction in promotional activity across the category. Initially there were promotional efforts from Royal Oak, but these were pulled back during 2000. A final factor which contributed to weakening of category was weather. The year 2000 witnessed more rainfall and major drop in temperatures. Since grilling is positively associated with mild temperatures, cold weather reduced opportunities for grilling occasions.
Kingsford faces competition within the industry from gas grilling and within the charcoal industry from Royal Oak and many other private labels.
Competitive Threats and Opportunities
Opportunities
Consumers prefer charcoal grilling over gas grilling as they believe that cooking over charcoal gives a unique taste to food. Given this preference, Kingsford has opportunities to increase excitement around grilling ...
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