edf40wrjww2CF_PaperMaster:Desc
Market:
The charcoal industry is mature with minimal growth. Kingsford charcoal made up 9% of Clorox’s total revenues and needed to make their numbers in order for Clorox to make its overall numbers. Gas grill sales were up by 8% (9.3 million gas grills) while charcoal grills dropped 3% to 6 million grills. Charcoal sales were trending down. The grilling market is very seasonal with 60% of purchases made between May 1 and Sept 1. Kingsford strength is its quality product and brand name. Weakness: Lack of exposure. Opportunity: To gain more market share by appealing directly to what the customers want. Threats: Current capacity constraints.
Consumer:
The grilling consumer viewed grilling as an overall experience. 80% of grill ownership was made up of younger, larger, higher income families. They enjoyed spending time outside and saw grilling as an informal way to cook. Grill owners were divided by those who preferred gas grills and those that preferred charcoal. Gas grillers looked for convenience, temperature control, quick, and easy clean up. Charcoal grillers enjoyed the hands on experience and valued the taste of the food.
Competitors:
Kingsford has been in the charcoal business since 1920. The two main competitors were Royal Oak and private label. Private label sold for about 25-30% less than Kingsford and Royal Oak was priced a little less than Kingsford. Kingsford is viewed as a high quality product, especially when compared to private label.
Product and Price:
Kingsford focused on having less skus which is preferable for retail stores to manage. The Blug Bag was regular charcoal and came in 3 sizes ...