Spss

Kingsford Charcoal |

Case Analysis |

  |

Jennifer Nordhues |

4/6/2010 |

Problem Statement

            During 2001, the softening of the charcoal market and growth of gas grilling affected the sales for both Kingsford and the Clorox Company overall.  This initiated the need to rekindle customer interest in charcoal grilling and to remedy sales loss problems for the company.      

Situation Analysis

  Company:  Founded in 1913, The Clorox Company started with a single liquid bleach product for sale and has grown to more than 50 household products worldwide in 2000.  In 1957, Clorox was acquired by Proctor & Gamble; however it was divested in 1969 after monopolistic litigation concerns raised by the U.S. Federal Trade Commission. 

The invention of the manufacturing process for making charcoal briquettes that burn hotter and longer launched Kingsford Charcoal in the 1920s.  The company was acquired by The Clorox Company in 1973, and is in the “U.S. Specialty Product” category, which represents 45 percents of annual sales for Clorox.  Kingsford alone represents one of the largest product groups at nine percent of total sales for Clorox. 

Clorox also maintains a unique brand management system of its product groups, whereby each product is supervised by a brand manager and several associate brand managers.  This system helps the Kingsford brand understand its customer and develop a strategy, advertising, and sales promotions that will be applicable to its target market. 

Below is an at-a-glance SWOT analysis for Kingsford Charcoal:

Strengths | Weaknesses |

Premium quality brand positioningIn business since the 1920sBurns longer than other charcoalInnovativeMarket share at 59.95% | Seasonality issues for someLow advertising budgetRelies on impulse purchasesAt 80% capacity in all plantsAdvertising for the industry as a whole |

Opportunities | Threats |

Cross-PromotionsGrilling can be done year-roundRoom to increase...