Main challenges specifically relevant to brand managers at Kingsford Charcoal: * A slow down in the growth in the charcoal category from 4% growth to just 2%, which is only predicted to decline further. *Possibly a symptom of weather conditions or changing consumer trends which lend themselves toward gas grilling* * A rise in the use of gas grilling (shown through number of shipments), as opposed to charcoal grilling also may have been a symptom of the underlying problem, that of the competitor’s price increases * The decision of …show more content…
Advertising strategy should be conducive to this and may include: * Spending the proposed minimum allocation of $5 million on TV advertising (that had shown to generate incremental sales in recent years). It may be argued that a campaign should feature some values associated with charcoal grilling (masculinity, family time, relaxed cooking experiences ) derived from exhibit 9. * Such a campaign should run from the beginning of August, as figure 2 details that in CY2000 (which one can assume is a relatively consistent snapshot from year to year) when peak sales start to drop before a second peak. With the desire to extend grilling season into fall, a TV advertising campaign should run till approximately Thanksgiving weekend, in late November.
Justification for this lies in exhibit 1, which suggests that Clorox has decreased its ad spend by approximately 5.3% from 1998 to 2000. Coupled with the specific brand media spend for Kingsford estimated to be in decline by approximately 75% from FY00 to FY01, this signifies that there may be leeway to increase advertising spend. Although not desirable from a profitability standpoint, it is evident that Smith Boyle and Warren were contemplating the revival of advertising, as the brand had not heavily engaged in advertising since 1998.
Promotion: According to exhibit 7, the significant reduction in promotional activity from 1999-2000 by Royal Oak and Private