Kingsford Charcoal Case
Case Study Analysis: Kingsford Charcoal | MGMT 563 Marketing Management September 18, 2012 | Cheryl Banks, Jacqueline Robinson, Mabel Tsahey, Stephanie White |
History
Charcoal grilling is an American tradition that brings communities together through a shared celebration of food. An important aspect of grilling is food preparation and charcoal is used to heat and cook food. Established in the 1920’s by Henry Ford and his relative E.G. Kingsford, the purpose of charcoal briquettes was to burn longer and hotter than regular wood. Through the years, the firm was purchased by an investment group and later acquired by Clorox in 1973, which owns 50 other products that it distributes. Kingsford had one of the largest products groups within Clorox’s portfolio and in 2000; Kingsford represented 9% of Clorox’s annual revenue and a larger percentage of their net income. In 2000, Kingsford had five facilities which housed both plants which produced regular charcoal (the blue bag) and instant charcoal (the red bag).
Problem
Due to slow growth in the charcoal industry and projected decline in sales, Kingsford managers are posed with rejuvenating the brand during an industry shift, which should account for the impact of Kingsford advertising, pricing, promotion and production in regards to increasing the capital investment and new income of the Clorox Company.
SWOT
Strengths Kingsford is considered the top brand in charcoal and consumer studies show that Kingsford is perceived as a better product (60%) whereas only 13% for private labels. This is a benefit to Kingsford in value building of the organization and beneficial information that can be used to increase their value communication in advertisements, prices, promotion and production. With the largest market share in charcoal sales, Kingsford’s market share in the first half of 2000 was 56.1% and in the second half of 2000 market share was 59.1% due in part to price increases by its competitors Royal Oak
History
Charcoal grilling is an American tradition that brings communities together through a shared celebration of food. An important aspect of grilling is food preparation and charcoal is used to heat and cook food. Established in the 1920’s by Henry Ford and his relative E.G. Kingsford, the purpose of charcoal briquettes was to burn longer and hotter than regular wood. Through the years, the firm was purchased by an investment group and later acquired by Clorox in 1973, which owns 50 other products that it distributes. Kingsford had one of the largest products groups within Clorox’s portfolio and in 2000; Kingsford represented 9% of Clorox’s annual revenue and a larger percentage of their net income. In 2000, Kingsford had five facilities which housed both plants which produced regular charcoal (the blue bag) and instant charcoal (the red bag).
Problem
Due to slow growth in the charcoal industry and projected decline in sales, Kingsford managers are posed with rejuvenating the brand during an industry shift, which should account for the impact of Kingsford advertising, pricing, promotion and production in regards to increasing the capital investment and new income of the Clorox Company.
SWOT
Strengths Kingsford is considered the top brand in charcoal and consumer studies show that Kingsford is perceived as a better product (60%) whereas only 13% for private labels. This is a benefit to Kingsford in value building of the organization and beneficial information that can be used to increase their value communication in advertisements, prices, promotion and production. With the largest market share in charcoal sales, Kingsford’s market share in the first half of 2000 was 56.1% and in the second half of 2000 market share was 59.1% due in part to price increases by its competitors Royal Oak
Bibliography: Mind Tools: Essential skills for an excellent career. (1996-2012). Retrieved September 2012, from Mind Tools : http://www.mindtools.com/ Kingsford (charcoal) Narayanda, D., & Wagonfeld, A. B. (2006). Kingsford Charcoal. Harvard Business School, 1-19. [ 2 ]. (Kingsford (charcoal), 2012) [ 3 ] [ 4 ]. (Narayanda & Wagonfeld, 2006) [ 5 ] [ 6 ]. (Narayanda & Wagonfeld, 2006) [ 7 ] [ 8 ]. (Narayanda & Wagonfeld, 2006) [ 9 ]