Executive Summary Kingsford Charcoal, one of the largest consumer products for The Clorox Company is the leading market shareholder for the charcoal segment. Recent trends have shown a decrease in all charcoal sales across the industry. Customers’ needs have changed in the grilling industry, causing the gas grilling business to increase. Competitors’ charcoal prices have significantly increased over the years while Kingsford Charcoal has only enforced slight increases. Kingsford Charcoal wants to identify why coal sales are decreasing and how they can turn this around and ensure this does not continue.
Problem Statement: Kingsford Charcoal (hereinafter “Kingsford”) has enjoyed steady moderate revenue growth of one to three percent since the 1980s. However the summer of 2000 presented a decline in revenue for the highly seasonal product, which has persisted into 2001. Kingsford’s parent company, The Clorox Company (hereinafter “Clorox”), experienced a six percent (6%) decline in sales for 2001 second quarter earnings and its December 2000 stock price had hit a three year low. Clorox relies on Kingsford to improve sales and profits. Kingsford has not raised prices in several years, nor has it advertised in any significant way since 1998.
SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
The price of fuel does influence them though, the biggest benefit is the effect on the customers, the lowering of the price of fuel means that people will, in effect, have a small pay rise, this will help KI as this will increase their customer’s disposable income and increase their consumer confidence. KI will always have oil related costs linked to their business as they use energy that is produced from oil and resources that wouldn’t be possible without oil e.g. polymers. The lowering of the oil price will help KI to maximise profits as they will be spending less on things that are oil based. KI may see people coming from further afield as the customers may thing that this drop in fuel price will allow them to live further away from their jobs or travel further to work.
The report will detail possible strengths and weaknesses of recommended courses of action and how a marketing plan would contribute to the company’s business objectives. 2.0 BUSINESS OBJECTIVES Kingsford charcoal forms a large segment of the Clorox company portfolio, and a decline in overall sales contributed to low stock value for the parent company. The Kingsford brand has proven strong in both market magnetism and competitive advantage, however, outside competition in aligning markets have avowed the need to ‘invest to grow’ the market and improve position or face a formidable future of deteriorating sales. The objective here is to increase profits for the Kingsford company. 2.1 BUSINESS STRATEGIES Increase overall company sales and profit by investing time and resources in growing the market and developing new opportunities for consumers.
A.C. Gilbert company has suffered a big loss in sales and profit. A lot of money was spent on expanding their business. There was a high demand for new “hot” products, and also the company started offering toy for boys and girls, instead of only making erector sets, and toys for boys. 4. Discuss how the economic environment in the US culture was changing.
Cash flow Growth: 8%. Dividend Yield: 2.90%. Dividend Growth: 9% (Alden, 2011). Coca-Cola has additionally grown offering 14 brands to the company making a profit of $1 billion or more in annual sales, the company sold $25.5 billion unit case and had revenue of $35.119 billion in 2010 (Alden, 2011). Coca-Cola has grown its’ revenue rapidly over 5 years, this brought about an important highlight for the company in between 5 years, so the company earned about 8.5% in annual revenue growth.
At the point the social cost [s1] is not taken into account only the private cost is. They are only thinking of their profits. However, if a good is to be taxed, it would increase the prices of the good for the consumers, which would mean p increases to p1 and as a result d shifts to d1 to the left. The demand is decreased. (diagram showing this- didn’t do it on word) On the contrary, if goods such as cigarettes have been taxed and prices increase, the demand would not have been affected by a great load, this is due
Market Share Labatt dominates the market by 39%. Bud lite and Blue lite are the brand leaders holding 7.5% of the market throughout the four years. In 2010 both brands held exactly the same market share of 7.44%. Labatt dominates the Market Totals (dollars sold) Labatt national total sales lead the market at 281 to 297 million for the 4 years, steadily increasing between 2011 and 2012 Labatt had their largest % increase of 4.06% more in sales. From 285.4 million to 297 million.
In theory, demand range from anywhere above Qc. As the price increases, Californian olives, which are more expensive, are now considered valid candidates to join in the olive oil market. The only problem with Californians olives is that the imported European olive oil is being produced with a subsidy from the EU. Not only does this make Californian olives less of a competition, but according to fig 3, European producers are earning more (C x Qsub, fig 3) than they would if they did not have the subsidy (Pe x Qe). However, EU producers are looking to cut subsidies on the production of olive oil, which would increase the price to Pe and decrease the quantity supplied and quantity demanded to Qe.