KINGSFORD CHARCOAL 5
Thebrand managers should inform their senior managers on the need tochange the current promotion, pricing, production, and advertisingmethods. With reference to pricing, the company should increase theprices, but after a thorough business analysis to prevent losingconsumers to the rival counterparts. Price increase is essential toincrease the profit margins however, the brand should wait for theright time. It should consider this as a merit over other charcoalbrands that have increased their prices. The other factor that thebrand should focus on is increase in advertisements. The brand hasreduced its advertising tremendously for the last few years.Consequently, this has led to reduction in growth of the company.Advertising ensures that the good message about the brand is in theair for all to hear. The advertisement spending, as thus, should beincreased in multifold to reach as many consumers as possible. Thebrand needs to come up with a catchy advertisement that will driveconsumers to buy more charcoal. The other recommendation that wouldsee an increase in the sales volume is use of promotion techniques.Merchandisers should work handy with large stores to feature theproduct. The sales representatives should also ensure that the storesare stocked up with the appropriate mixture of the product. Kingsfordcharcoal should also aim at increasing it’s capacity to ensureadequate supply of the product. Although it may be expensive, itwould be beneficial in the long run.
CloroxCompany has undergone massive transformations since its inception in1913 as an Electro-Alkaline Company. It produced bleached productsuntil it diversified its products later on. The success of thecompany was driven by internal research and development, which itaggressively pursued. By the year 2000, the company produced morethan 50 products distributed in various parts of the world. To ensurethe effectiveness of each product, Clorox’s brands are manageddifferently by brand managers. It is crucial for the brand managersto be aware of the product’s trends and how to improve themaccordingly. They should understand what affects the sales ofproducts or the drop/increase in the growth over the last years. TheKingsford charcoal, for instance, has experienced a drop in growth in2000. This may have significant effects in the overall companybecause Kingsford charcoal accounts for approximately nine percent ofthe Clorox’s total revenues. It is also critical for managers tounderstand the promotion, pricing, product, and advertising trends tocomprehend on where to improve. Likewise, understanding the high andlow season of the products’ sales is also essential for managers.Having the knowledge about the entire brand can help managers toidentify its weaknesses and strengths, and work towards improving theweaknesses while maximizing the strengths.
Americanslike grilling and consider it as a part of an enjoyable activityduring summer. Statistics confirm that in late 1990s, three quartersof American households used barbeque grill, especially among theyounger and high income earners. In 2000, there were over 3 billionbarbeque events in the US, which was a rise from 1.4 billion in 1987.This shows that people are continuously finding grilling orbarbequing a thrilling activity. The main reasons why people barbequeinclude the desire to be outdoors, hanging out with friends andfamily, and the great flavor in grilled food. Sausages, ribs, pork,chops, hot dogs, hamburgers, steak, chicken breasts, and roastedpotatoes are some of the foods that people grill. Commonly, peopleprefer barbequing using gas or charcoal grills. Gas grilling takes ashort time to set up, and people use it for convenience and greatercontrol over temperature and time. On the other hand, charcoalgrilling takes longer to set up and cook. Despite its tediousness,most people prefer charcoal grilling because of the flavor it impartson grilled food. Typically, food grilled using charcoal has a greatertaste than food grilled using a gas. Therefore, people are willing toundergo all the hustles of setting charcoal grillers because the endresults are satisfying.
Theaction plans focusing on advertising, pricing, promotion, andproduct, obliviously, affects the profit, market share, and thefranchise in various ways. Increase in prices is likely to scare awaythe franchise and retailers because it would mean digging deeper intheir pockets and the uncertainties of customer’s response. Withtime, good marketing strategy and maintenance of products would winthe loyalty of customers. On the other hand, the price increaseswould simultaneously lead to profits increases. In turn, this wouldhelp in meeting the objectives of the business within a short time.Advertisement would also impact positively in meeting the objectivesof the company in the long run. However, this would cost the businessin the short term because increases in advertisements means increasedspending. A good advertisement campaign would attract more customershence, increases in the volume of sales in the long run. Therefore,although advertisements would lead to business’s spending in theshort term, the outcome are expected to be positive. Promotions,similarly, would impact positively on the sale of products. They mayalso mean more spending in the short term, but overwhelming results.Finally, increase in the capacity of the product, though expensive,would ensure that there is constant supply of products presently andin future. The business aims at increasing its supply in future byreaching a wide range of customers, and this means that increase inthe capacity would meet this objective accordingly.
Marketingis most relevant means for meeting the objectives of Kingsfordcharcoal. This can be achieved by aggressively employing the mostcaptivating marketing strategies. The most recommendable marketingstrategies include advertising and promotions. The advertisementshould not only aim at steering away customers from the competitors,but also from using gas grills. The brand should use a substantialamount of money to ensure the good message is aired and reaches awide range of people. Charcoal Kingsford may consider using some ofthe public figures to appeal to customers. Further, the brand mayalso use appealing promotional strategies and use of merchandisers tofacilitate the same. The management should opt to contract salespersons and merchandisers to boost the sales of the products. Theyshould be deployed in large retail stores where there is constantsupply of customers. The marketing management may consider putting aprize for random lucky customers. This would encourage more people tobuy the products with hope that they would win. In turn, thisincreases Kingsford’s charcoal business significantly. The brandmanagers should have in mind that marketing is the most crucialfactor for boosting sales. Quality and pricing of products is notsufficient without a good marketing strategy.