Kingsford Charcoal Case

By: Abinesh Manoharan, Aditi Jagdish, Meryem Bektas, Sabari Ram & Swetha Vasu

Kingsford Charcoal case 1 EXECUTIVE SUMMARY Kingsford Charoa! om"any has two hoies# short term "ro$ts %s !ong term growth, and we strong!y reommend the !atter 'n this regard, we suggest strategies to ti!t the beha%iora! "atterns of the ustomers through sensory branding, reati%e ad%ertising tehni(ues and o"tima! "riing# a!! of whih wi!! ontribute towards inreasing the om"any)s ustomer base whi!e a!so strengthening its brand e(uity

2 INTROUCTION ! "RI##IN" TRENS Kingsford Charoa! is res"onsib!e for about *+ of C!oro)s re%enue and a higher "erentage of its net inome Any negati%e trend in haroa! sa!e wi!! therefore a-et C!oro)s bottom !ine Some reent trends in the industry are as fo!!ows: . A!though the the number of gri!!ing oasions ha%e inreased inreased from from ./B in in .*01 to o%er 2B in the year 3444, the o%era!! market growth of the haroa! ategory has dereased from /+ to 3+ in 3444 3 More "eo"!e "eo"!e ha%e started started using gas gri!!s gri!!s 5his has !ike!y !ike!y been in6uened in6uened by inreased ad s"ending on "romoting the sa!e of gas gri!!s 2 'n addition, addition, the retai!ers retai!ers ha%e ha%e inreased inreased the "rie of haroa! for Roya! Roya! 7ak and other "ri%ate !abe! brands 8hi!e before the inrease, there was a "rie ga" of 39#24+ between the "ri%ate !abe! "roduts and Kingsford with Kingsford being the higher "ried "rodut;, it has now signi$ant!y dereased 5his has !ike!y !ike!y diminished Kingsfor Kingsford)s d)s di-erentiation di-erentiation fator fator as a "remium "remium !abe! / A!so, Kingsford, Kingsford, whih whih has the biggest biggest share share of the haroa! haroa! market with !ose !ose to <4+, has not inreased its budget for media s"ending 'n ontrary, it has rather dereased the ad s"ending o%er the years

$ %RE&UENT "RI##ER 'RO%I#E A fre(uent gri!!er is ty"ia!!y a man <4+; who !ikes to s"end time outdoors with his fami!y and friends in an informa! setting A!though haroa! gri!!ing an take !onger to set u" and to !ean, it is a ritua! he en=oys, often more so than the resu!tin resu!ting g mea! 't is a fun and easy way to "re"are food that tastes better than with gas gri!!ing >s"eia!!y, ho!idays ho!idays suh as Memoria! ?ay and / th of Ju!y are im"ortant days to set u" the haroa! gri!! and reate memories with his !o%ed ones 't brings bak memories from his own hi!dhood . @e wants to "ass on this tradition of gri!!ing on ho!idays one day to his own kids 8hi!e gathering around the gri!! with his friends, he en=oys his beer and does not ha%e to worry about making a mess in the kithen ri!!ing is a!! about meat, suh as steaks, hamburgers and hot dogs 3 'n reent years, hea!thy eating trends ha%e more and more inor"orated gri!!ing, gri!!ing, not on!y meat but a!so %egetab!es and $sh, as the gri!!ing "roess is "erei%ed muh . ri!!ing and Barbeuing  S  Marh 34.9, Minte! Re"ort

By: Abinesh Manoharan, Aditi Jagdish, Meryem Bektas, Sabari Ram & Swetha Vasu hea!thier than "an fried food 2 De%erthe!ess, gri!!ing with its e!ements of $re, hene danger and shar" too!s is genera!!y !eft to men and they in turn onsider it their territory 3

( MARKETIN" STRATE"Y 5he brand management team of Kingsford haroa! has two hoies # fous on inreasing the "ro$t numbers for the brand or to kee" the "rie onstant and fous on inreasing the o%era!! haroa! ategory, thus enab!ing !ong#term suess for the brand 5he haroa! ategory s!owdown was aused by %arious reasons suh as inreased retai!er "riing fue!ed by "rie inreases among the "ri%ate brands and Roya! 7ak, inrease in "enetration of gas gri!!s, the absene of media ad%ertising, !ak of "romotiona! ati%ity and inreasing!y unfa%orab!e weather onditions for gri!!ing oasions A!though the "rie inreases among other brands inreased Kingsford)s sa!es %o!ume, the !ong#term suess of Kingsford was tied !ose!y to the o%era!! suess of the haroa! ategory @ene, we reommend that the brand management team shou!d fous on inreasing the siEe of the "ie rather than maimiEing the brand)s "ro$t, whih wou!d rather be a short#term strategy 5he key to inreasing the o%era!! haroa! ategory wou!d be to fous on the two fators under ontro!  fous on "romotiona! ati%ity and inreasing the fre(ueny of haroa! "urhases by Kingsford)s ustomers 8e reommend that Kingsford shou!d fous its "romotiona! e-orts towards the F'nstant Ae"torsG ustomer segment beause it is the !argest segment <4+; and are more ae"tab!e to use haroa! as the gri!!ing fue! 7n the ontrary, the segment is the !east brand !oya!, howe%er, we strong!y be!ie%e that the segment wou!d %a!ue the "romotiona! o-ers suh as disount ou"ons that Kingsford wou!d o-er 5o inrease the fre(ueny of haroa! "urhases, the brand management team shou!d aim at dri%ing beha%iora! hanges suh as making gri!!ing a Fregu!ar dayG ati%ity rather than a Fs"eia! oasionG ati%ity

) *RAN AVERTISIN" 'n the "ast Kingsford had used their ad%ertising am"aigns in a "ure!y uti!itarian and funtiona! manner by attem"ting to ommuniate their "rodut features and "rodut su"eriority But that is a %ery underwhe!ming a""roah and instead they shou!d !ook to ta" into the "ower of ad%ertising by reating a stronger emotiona! resonane among the target audiene, whih he!"s foster "owerfu! assoiations 3 ri!!ing, uys and the reat ender ?i%ide, htt":HHwwwforbesomH34.4H41H4.Hgri!!ing# men#women#barbeue#forbes#woman#time#ookinghtm!

2 @ea!thier Cooking Methods: ri!!ing %ersus frying, ww$tdayomH$tness# arti!esHnutritionHhea!thy#eatingHhea!thier#ooking#methods#gri!!ing#%ersus#frying

By: Abinesh Manoharan, Aditi Jagdish, Meryem Bektas, Sabari Ram & Swetha Vasu between memorab!e gri!!ing e"erienes and the Kingsford brand 5his has the dua! ad%antage of inreasing brand awareness and raising brand e(uity 5he 3 s"ei$ ob=eti%es that the brand managers need to ahie%e with this ad%ertising strategy wou!d be to he!" Ameria rediso%er its "assion for gri!!ing and a!so to inrease the number of asua! gri!!ing oasions among their target ustomers 5his ensures that the brand is assoiated with a who!esome fami!y e"eriene as we!! as u!inary de!ights instead of being re!egated to =ust s"ei$ ho!iday oasions Some of the s"ei$ tatis they an use in!ude: . sing reati%e and suggesti%e bi!!boards to on%ey brand meaning  Exhibit 1; 3 'n%o!%ing ustomers by engaging them in BBI ook#o-s thus "utting the brand front and enter of ommuna! ooking e"erienes  Exhibit 2; 2 7rganiEing food truk e%ents around the ountry to showase haroa! gri!!ed de!iaies  Exhibit 3; / Starting a strong soia! media am"aign by in%iting users to submit their fa%orite haroa! gri!!ed inno%ations in interest and 'nstagram  Exhibit 4; 9 Choosing a e!ebrity s"okes"erson who embodies the desirab!e attributes suh as the authentiity assoiated with haroa! gri!!ing  Exhibit 5;

+ MU#TI,SENSORY *RANIN" A''ROAC 5o tru!y engage with ustomers on a "rima! !e%e!, Kingsford needs to ado"t methods to strong!y im"rint the brand)s identity on the onsumers) subonsious "syhe without being o%er!y aggressi%e 5his great!y enhanes the hanes of a suessfu! brand rea!! by forming the neessary a%!o%ian assoiations Some brands o"t to use sub!imina! messaging to ahie%e this desired e-et but Kingsford wou!d bene$t by o"ting to engage the ustomers through mu!ti"!e sensory out!ets 'n this ase the sense of sme!! wou!d be an idea! hanne! sine aording to Mare! roust, the e-et of sent an un!eash a 6ood of memories thus ho!ding the key to !ong !asting im"ressions / Kingsford an work with retai! stores to infuse the haroa! ais!es with the sent of gri!!ed meat & %egetab!es and a!so !ine the wa!kways and "arking !ots with images of burning oa!s and suu!ent gri!!ed food >hibit <; thus ensuring the formation of a strong emotiona! onnetion between the brand and the onsumer

. 'RICIN" 8e ana!yEed the im"at of inreasing the "ries on the sa!es %o!ume as we!! as "ro$ts based on the data "ro%ided in >hibit .4 in the ase and ha%e tabu!ated the resu!ts in A""endi# ehibit 1 Kee"ing in mind that our brand strategy wou!d be foused on "o"u!ariEing gri!!ing in the !ong run and thereby im"ro%ing sa!es %o!umes, we e!iminated the o"tions that wou!d be most detrimenta! in terms of redued sa!es %o!ume i%en that <<+ of tota! haroa! sa!es are ahie%ed at food stores we a!so se!eted the o"tion that wou!d he!" us e-et an aross#the#hanne! "rie inrease  as o""osed to s"ei$ !ub enters and hains;8e thus Eeroed in / htt":HHwwws"eia!ty"rintommomHnewsH=u!y#34.4#"ioaH=u!y#34.4#"ioa"df

By: Abinesh Manoharan, Aditi Jagdish, Meryem Bektas, Sabari Ram & Swetha Vasu on 7"tion 3 whih wou!d resu!t in a de!ine of sa!es %o!ume by //9 MSC units and resu!t in "ro$ts of S 3.0,4448e be!ie%e this wou!d be the o"timum !e%e! of "rie inrease that wou!d he!" us im"ro%e short term "ro$ts as we!! as tie in with our !ong term growth strategy 't wou!d be in !ine with our strategy of im"ro%ing our brand e(uity by di-erentiating our brand with a s!ight!y higher "rie but at the same time not making it etreme!y "riey so as to a!ienate eisting as we!! as "ros"eti%e ustomers 8e understand that this strategy wou!d resu!t in the retai!ers "u!!ing bak on the merhandising su""ort .4+ merhandising !oss on .4 & 34 !b bags to be "reise; @ene Kingsford wou!d ha%e to su""!ement the "romotiona! ati%ities with e-orts from its side 8e be!ie%e this is sti!! ahie%ab!e sine the inreased re%enues wi!! he!" to maintain a "ositi%e bottom !ine A!so sine the u!timate aim is to be ab!e to inrease the brand e(uity in the !ong run, we wou!d urge the management to !ook beyond the immediate short term im"at on "ro$ts

/ A''ENIX E0hii 13 *illoard ca45aigns

E0hii 23 **& Coo6,o7s


E0hii $3 Moile %ood r8c6s sho9casing Kingsford:s associaion 9ih grilled food



E0hii (3 User generaed Insagra4 5ic8res of heir fa;orie grilling 4o4ens


E0hii )3 "8< %ieri as a s5o6es5erson for Kingsford charcoal

E0hii +3 I4ages o e 8sed in reail sho55ing areas o rigger i458lses associaed 9ih grilling


E0hii .3 Calc8laions o deer4ine 5ricing sraeg<

S! Do

>stim ated roba bi!ity of 7uto me

>stimat ed L43 Vo!ume MSC;' m"at

>stimat ed L43 Sa!es 444;' m"at

>stimat ed L43 ro$t 444;' m"at

>stimat ed >-eti% e Vo!ume MSC;

>stima ted >-eti %e Sa!es 444;

>stima ted >-eti %e ro$t 444;

.

riing Senarios C!ubH@ome Center, /+ rie 'nrease

A

Do merhandising !oss

<4+

4

.244

.404

4

104

B

244 MSC !oss at C7S5C7 #.444 MSC !oss at C7S5C7

39+

#244

#...4

/4

#19

#3119

.4

.9+

#.444

#1344

#3944

#.94

#.404

#219

,22)

,)./

2/$

C

Toal 3 A

Minimum 39+;B!ue Bag riing 'nrease

B

Do merhandising !oss .4+ merh !oss in .4 !bs,34 !bs bag

2

@igher 9+;B!ue Bag riing 'nrease

19+

#/44

#.344

9<4

#244

#*44

/34

39+

#904

#24*4

#0.4

#./9

#1139

#3439

,(()

,1+.$

21/

Toal

A B

Do merhandising !oss 1+ merh !oss in .4 !bs & 34 !bs bag

94+

#994

#.*44

.4<4

#319

#*94

924

94+

#1/4

#/./4

#..4

#214

#3414

#99

,+()

,$=2=

(.)

Toal /

5ota! Nine riing 9+;'nrease

A

Do merhandising !oss

B

Combination of : 1+ merh !oss in b!ue .4 !bs 34 !bs bag 2+ merhandising !oss in 0O math!ight 9+ merhandising !oss in .9O math!ight

24+

#1*4

#3034

.014

#321

#0/<

9<.

14+

#024

#/434

.134

#90.

#30./

.34/

,/1/

,$++=

1.+)

Toal

Kingsford Charcoal Case

Recommend Documents