In The Overall Charcoal Category, What Is Kingsford's Competitors?

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The summer of 2000 showed a softening in the overall charcoal category and some consumers switching to gas grilling due to increased pricing. Research analysis showed that the charcoal category declined in growth from 4 percent in 1998 to 2 percent in 1999. While competitors such as Royal Oak and private label brands increased their prices, Kingsford was faced with the question of whether they should do the same. Upon receiving all the necessary data and information, brand managers Marcilie Smith Boyle and Allison Warren focused on four areas of development: pricing, advertising, promotion and production capacity. The 10 percent increase of private label bags led to some consumers switching to gas grilling and others moving to the Kingsford brand, increasing its market share. The downside of increasing prices was that if it held out on increasing prices another year they may be able to significantly cut into Royal Oak’s market share. The brand managers Smith Boyle and Warren should propose to moderately increase prices in accordance with the price elasticity studies. These price increases should remain slightly more than that of their competitors. They should be able to offset the…show more content…
With this, Kingsford may be able to increase its penetration into Royal Oak’s market. The charcoal bags should be in stacked forms at specific places in the store, such as the entrance and at the foremost side of the end-caps. It increased its spending during the year 2000 from 8 to 9 million, which showed in its increase in volume supplied. The brand managers should tell their managers to increase the incremental volume resulting from promotion by sponsoring new events and prolonging the grilling season through outdoor sports

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