KINGSFORD CHARCOAL CASE ANALYSIS
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.
The core situation Kingsford Charcoal is faced with are:
• Poor pricing strategy
• Lack of media advertising
• Poor brand positioning
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 that...