Case8 - Kingfords case study PDF

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Kingfords case study ...

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Kingsford’s business was seasonal which impacted by seasonal nature and cause slow growth of sales. As the price increased due to the unsure pricing strategy which lead to Kingsford’s competitors deterred consumers away from charcoal products and led to from alternative products - gas grilling. As my point of views, Kingsford should concentrate on growing the charcoal market as a whole through investing in an aggressive advertising campaign during peak periods. By doing so, Kingsford is able to gain the exposure in the competitive advertising of gas grilling and also highlight Kingsford to consumers as the top of mind brand when considering purchasing charcoal. Moreover, the vital point in promoting the social experience is to transmit and delivery the messages of enjoyment in cooking on the grill with family and friends which can create correlations to the customers. Kingsford should redefine the value and the benefits of using the charcoal over gas grilling by start some campaigns as the article mentioned “its superior taste as documented in a blind taste test which found more consumers preferred the distinct ‘smoky, BBQ flavor’ charcoal grilling imparted”. For customer when considering in looking a heat source to cook their BBQ which assumed as a basic “need”. Other factors on charcoal are flavor and convenience and price could be understood as ‘wants’ and it can be traded off against each other from the economics views. Kingsford should promote and enhance the “flavor” and “price” of the charcoal over gas grilling to influence customer in making purchasing decision. Following up will be the SWOT analysis of the Kingsford’s business to develop later suggestions to tackle current situations. SWOT

Strengths -Lead in market share -High quality charcoal Weaknesses - Kingsford only represents small amount of total revenue though is the largest product groups within Clorox’s portfolio - A lack of advertising in recent times - Decreasing in media budget Opportunities -Consumer demand for healthier cooking styles -Economic better off promotes the times to more people entertaining at home -Powerful market share provides the ability to support brand new of products Threats -Climate changes lead to reduced grilling occasions -Total market for grilling is declining. Indeed, the BBQ charcoal market and consumption is likely to be influenced by the environmental and weather changes due to the increasing number of rainy days which impact the sales and the future strategy growth. The superior taste from the charcoal grilled BBQ over gas grilling and also the shift in consumer behavior to the healthier lifestyle. Two above trends would be opportunities for Kingsford Charcoal to expand its market by identifying the understanding of its customers, the charcoal and gas grillers market in which using that information to develop future strategies. Grilling occur

when people hold a party or celebrate an event due to the special occasion, Kingsford should target this basic point and bring it to the advertisement campaign: The enjoyment and satisfaction of the person cooking for their family and the highlight the charcoal grilled BBQ as the symbols of summer, enjoyment, relaxation and family gathered. the charcoal grilled BBQ. Kingsford charcoal is described as a happy product in which the increase in price, customers are willing and happy to purchase, however, it seems like Kingsford has skipped on this opportunity. As my plan suggested to the Kingsford business, the price should increase. First, they need to hold stable their fixed cost and minimize the variable cost on charcoal (material resources, suppliers, distributors) to gain maximize profit by include providing the best price by achieving lowest costs. When the price increased, the trade-off between revenue market share and profit occur in some extents of the new pricing process therefore Kingsford must follow and catch up instantly to the reaction of the customer for changing in price to provide and alter proper growth strategies. Moreover, Kingsford should run advertising campaign to promote the benefits of charcoal grilling over gas. And the time to consider for those marketing campaign should be on the public holidays and warm, sunny days would make extra sales on these peak times. Furthermore, a vital point that Kingsford should hold on their advertisements to combat the rapidly varying market share of gas grills which are competing on the basis of ease of setup, use and clean up...