Preview

Bullshit

Satisfactory Essays
Open Document
Open Document
288 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bullshit
KINGSFORD CHARCOAL CASE ANALYSIS
CASE INTRODUCTION:
Kingsford Charcoal is a $350 million company, built and commercialized in 1920 by E.G Ford and acquired by Clorox in 1973. Kingsford represents one of the largest product groups within Clorox's portfolio and represented approximately 9 percent of Clorox's revenue and a substantially higher net income. The company had been enjoying a steady moderate growth since the 1980's achieving 1-3 percent in growth revenues each year. Though it had not raised prices in several years or advertised in any significant way since 1998, Kingsford charcoal enjoyed a higher sales volume over its competitors (Royal Oak and Private Label) in the charcoal industry. In the summer of year 2000 however, the overall charcoal industry including Kingsford charcoal experienced a softening in their growth and revenue. Kingsford Charcoal now faces in pressure to increase its revenue in an environment where consumers in the grilling market are slowly shifting from charcoal to gas grilling. Brand managers Boyle and Warren must address trends relating to; competition, pricing, advertising, promotion and production: strategic decisions that impact the brand and affects the company's overall success.
CORE ISSUES:
The core situation Kingsford Charcoal is faced with are:
• Poor pricing strategy
• Lack of media advertising
• Poor brand positioning
• Competition
• Promotion
ANALYSIS OF CORE ISSUES:
Kingsford Charcoal's problems came as a result of:
Poor Pricing Strategy:
Kingsford had not raised prices in several years. It's competitors in the charcoal industry (Royal Oak and Private Label) did raise their prices allowing them to earn extra income. Price increases by these competitors affects Kingsford's profitability and its ability to support the financial success of Clorox.
Lack of media advertising:
Kingsford Charcoal had not advertised in several years in any significant way. Through their studies, Smith and Warren saw

You May Also Find These Documents Helpful

  • Good Essays

    Kingsford Charcoal Case

    • 1283 Words
    • 6 Pages

    Kingsford Charcoal was first started in the 1920’s by the famous Henry Ford, he created an innovative idea that used wood scraps to turn into charcoal briquettes that would burn longer and hotter than normal wood, a lumberman that was also related to Ford named E.G. Kingsford helped build the first briquettes plant and help get the business started up and commercialized, not too soon after it was bought by an investment group then in 1973 it was purchased by a company called Clorox. As of June 2000 the company Kingsford had 5 plants in the United States with each of those plants exceeding costs of 20 million dollars. The briquettes were packaged into different bags according to their specialty; some were just regular briquettes while others had lighter fluid in them that made them easier to start and user friendly. With the latter product being more expensive, there products were sold in 3 different sizes, 10 pound, 20 pound, and 48 pound bags for consumer reasons. The instant light was sold in 8 pound, 15 pound and 30 pound bags. Kingsford was an integral part to the Clorox Company; it was the leading manufacturer of charcoal and also had the most revenue of all the companies that were part of Clorox. Being part of barbequing Kingsford was a seasonal company with nearly 60 percent of their purchases being between start of spring and to the start of fall, with sells dipping down after that. Kingsford made sure that there product would be in the most viewed parts of the stores that they were sold in, they were put in the end of aisles so that you didn’t have to go deep into the aisle to be reminded that you might need to get charcoal, they wanted it to catch everyone’s eyes, the reason they were able to achieve that display was because there good relationship that they had with the retailers. Dealing with a company that is very seasonal and deals with weather to predict good sales is a big weakness, if they didn’t have good weather on…

    • 1283 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Church and Dwight

    • 3621 Words
    • 15 Pages

    2. Summary statement of the recommended solution: Since Church and Dwight is a relatively small company, when compared to competitors in household and personal care product markets they must recognize the challenges of growing sales through acquisitions to promote growth and competitiveness within those markets. Church & Dwight must incorporate additional acquisitions of solid brands and products in order to grow market share through an expansion of product lines into a variety of “personal care, deodorizing and cleaning, and laundry products” as well as “specialty chemicals, animal nutrition, and specialty cleaners” (Wheelen & Hunger). In addition, to maintain its position in the world market place, Church & Dwight must expand into international markets and gain footholds in product markets through acquisition of manufacturing assets. Simply shipping domestic product lines overseas is cost prohibitive. Foreign manufacturing assets will allow product recognition by local consumers in…

    • 3621 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    kingsford case

    • 1529 Words
    • 9 Pages

    Kingsford is the leading producer of premium segment charcoal grilling products. It is a division of Clorox that sells charcoal and currently generates 9% of Clorox’s revenues. Kingsford products are available nationwide at variety of stores like food stores, mass stores and FDMs. The brand is offering two types including instant (red bag) and regular (blue bag).…

    • 1529 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Kingsford Case

    • 1312 Words
    • 4 Pages

    | Product * Kingsford Charcoal – for grilling * Invented by Henry Ford * KC manufactured from the following in a 2 part process: * Wood * Minerals * Limestone * Starch * Borax * Sodium Nitrate * Sawdust * Blue Bag Charcoal – Regular * Sold in 10lbs, 20 lbs, 48 lbs (Club) * Red Bag Charcoal – treated with lighter fluid, instant * Sold in 8lbs, 15 lbs, 30 lbs (Club) *…

    • 1312 Words
    • 4 Pages
    Good Essays
  • Better Essays

    kingsford market analysis

    • 1705 Words
    • 7 Pages

    There are many reasons that are leading to a decline in growth rate of the entire charcoal category in the years…

    • 1705 Words
    • 7 Pages
    Better Essays
  • Satisfactory Essays

    Clorox has set a solid foundation for their sustainability journey. They have established a cause that coincides with the products they manufacture that is parallel with their mission, vision, and values. Clorox understands consumers are looking for companies to be more aggressive in the fight to save our environment and have implemented great strategies and tactics in doing so. However, I believe that Clorox can be more aggressive in their approach that will position them as trend-setters. Clorox is a creditable brand with the consumer and has a solid brand awareness; therefore, consumers will listen to the issues Clorox presents and are will to test their solutions. Even though Clorox stated that, “trial rate among more mainstream consumers…

    • 143 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Wing and a Prayer

    • 958 Words
    • 4 Pages

    -If they are successful with the business, they will have extra income to continue the business for the next summer…

    • 958 Words
    • 4 Pages
    Good Essays
  • Good Essays

    This design was later registered by the founders as the company trademark. Clorox became known as not only a single product, but also as the company's main brand and the overall company name, The Clorox Company. By the end of 1914, the company had sold 750 shares of stock at $100 a piece giving them $75,000 in start-up capital (The Clorox Co. Website.) This start-up capital gave The Clorox Company the money needed to start producing their product, which was originally 21% sodium hypochlorite and sold in 5 gallon jugs. These large jugs were mainly transported on horse-drawn wagons to businesses in Oakland such as laundries, breweries, walnut processing sheds, and municipal water companies. The Clorox Company later began producing a less concentrated household version of the cleaner that only contained 5.25% sodium hypochlorite bottled in 15 ounce amber pints. This new household version of Clorox was seen in nearly every home across North America and parts of Canada by 1928. This great increase in demand for Clorox forced The Clorox Company to build a dozen new plants across America between 1938 and 1956. The Clorox Company was doing so well by 1957 that the annual sales were up to over $40 million (The…

    • 699 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Best Buy Crisis

    • 1998 Words
    • 8 Pages

    Dick Schulze and a business partner opened the first Sound of Music store in St. Paul, Minnesota. By 1969, Sound of Music had expanded into five more locations around Minneapolis and revenue had reached $ 1 million by 1970 and Schulze bought out his original business partner. By end of 1978, Sound of Music operated nine stores.…

    • 1998 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Crap

    • 1068 Words
    • 5 Pages

    How have the perceptions of belonging or not belonging varied within and across the texts you have studied?…

    • 1068 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Clorox paid $925 million nearly $1 billion for Burt’s Bees because it saw a big opportunity in the market for “green products” reflecting a socially responsible approach to life and business. This was a bold move for a company best known for selling bleach, and strong smelling cleaning products. If anything, Clorox made the right move because other huge companies were moving towards more natural and socially responsible brands as well. In the last couple of years, L’Oréal paid $1.4 billion for the Body Shop and Colgate-Palmolive bought 84 percent of Toms of Maine, which makes natural toothpaste and deodorant, for $100 million. Clorox has also created eco-friendly product lines of its own ("Burt’s Bees: The Social Responsibility Business Is Model Alive and Well.”…

    • 815 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Procter and Gamble started in the candle industry in early 2006 with the Febreze candle line taking the scent that was chemically formulated to reduce odor and leave a fresh scent. This innovative scent transcended into the candle industry allowing Procter and Gamble to grow the market by $50,000,000 in 2007. Over the past 4 years, economic conditions have hit the candle industry hard since candles are considered discretionary spending. The overall market has decreased 4-6% on average over that time period. The industry is expected to decline over $400,000,000 in the next 5 years. The candle industry has over 13 major players which comprise 63% of the market. Smaller companies make up the remaining 37%. There are 189 candle manufacturers in the U.S. Procter and Gamble has 4% of the current market share compared to SC Johnson’s 17% claim. The industry has a lot of competition for market share and will continue to be that way with the reduction of the market size.…

    • 4991 Words
    • 20 Pages
    Good Essays
  • Powerful Essays

    promotion proposal

    • 965 Words
    • 4 Pages

    YEAR 11: ENGLISH COMMUNICATION PROMOTIONS PROPOSAL FORTEENS PROMOTIONAL COMPANY "6" By KAREN TAYLEUR. NAME: ___________________________________________ TEACHER: _______________________________________ DATE: ____________________________________________ CONTENTS: Introduction . . . . . .…

    • 965 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    gillate dry idea

    • 457 Words
    • 2 Pages

    Case Assignment: Gillette: Dry Idea (B) Group No. 11 Risi Raj Prashant Yadav Jitendra Giri Goswami Nishanth S Snehalkumar Rajmalwar Comment on the bake-off assignment and implementation plan followed by Gillette The Bake-off Assignment Background • Reaffirmed the commitment of Gillette for the product • Recapped results to date of Dry Idea’s form extension work and copy development initiatives • Stressed the urgency of resolving the brand’s creative crisis • Stressed on the need for brand personality • Highlighted the importance of considering advertising implications of planned new form introductions Outline • Develop a break-through advertising campaign • Develop an overall strategic business plan • Develop a strong candidate for solid form concept testing Comments Lack of Strategic Direction Issues Lack of Effective Advertise ment Market…

    • 457 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Bullshit 101

    • 822 Words
    • 3 Pages

    CE 323 Assignment 3 Design Pattern Mustafa Mohammad Ghazanfar 2011329 12/16/2013 Strategy Pattern: Strategy pattern can be used in cases where behaviours of certain elements can be separated from other parts as independent processes. For example designing a strategy pattern for a car would result in multiple functions like brakes, boot, windows etc. All will have separate functions yet come together to complete the car. This pattern works by encapsulating all the functions as separately as possible and all the while keeping the client encapsulated from majority of the algorithm.…

    • 822 Words
    • 3 Pages
    Good Essays