The Clorox Company purchased Kingsford in 1973. Kingsford became one of the largest product groups within Clorox’s portfolio by 2000. Charcoal also represented a large percentage of Clorox’s revenues and net income. Therefore, a change in growth of the charcoal market would have a significant direct impact on Clorox’s annual sales and net earnings. Since the 1980’s Kingsford enjoyed growth in revenues ranging from a 1-3% increase each year. The charcoal industry had also experienced a steady growth as a whole. However, during the summer of 2000 charcoal sales declined and Kingsford’s summer results were projected to be below target. Clorox must now rely on Kingsford’s improvements in sales and profits to re-establish the company’s growth objectives. The two brand managers Marcilie Smith Boyle and Allison Warren will be challenged with determining the causes of decline, the impact of altering Kingsford’s current pricing, advertising, promotion, and production methods, and developing recommendations to increase profits. …show more content…
The primary problem discovered from analyzing the case is a poorly constructed marketing mix which doesn’t market Kingsford to its fullest potential. The marketing mix is comprised of the products’ pricing, advertising, production and promotional strategies. Kingsford has not changed their marketing strategy for the past several years. This is ineffective when the market is constantly changing and when new competitors are emerging. Kingsford has not designed each marketing mix component so that each component positively complements the others. This has been the main cause for Kingsford’s reduced growth rate. Secondary problems that have prevented Kingsford from achieving company objectives are the “seasonal business” approach and the heavy dependence on sales and merchandising
Pros. (1) By increasing the total coal-grilling category, the sales and profits of Kingston Charcoal will increase too, as at the present it has the largest market share. By addressing current category ad vacuum KC will more appropriately counter gas grilling which has been heavily advertised. (2) The cooperation with grocery, mass retailers, and distributors as the sales on charcoals increases growth of not only Kingsford’s, but also private label brands. That – on the other hand – gives bargaining power for KC on display placements, promotions and other retail-oriented issues.
The Procter and Gamble Company. (2013, November 17). Company Strategy. Retrieved March 22, 2014, from http://www.pginvestor.com: http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821
Another marketing strategy that Clorox is employing is consumer fragmentation. Through consumer fragmentation, the company is able to group its target consumers into groups that can be served with a particular advert or marketing approach. Clorox also intends to increase its brand investment behind superior products and more targeted 3D plans. The company appreciates the influence that media has on the purchasing decisions of consumers, it therefore wants to evolve its demand-creation model of 3Ds in the face of increased fragmentation of retailers and consumers. The three D’s of the model stand for desire, d...
Four of the external forces that may have impacted Island Abbey Foods are competitive, technological, global and societal forces. As it was mentioned by Karakowsky and Guriel in the book of The Context of Business: Understanding the Canadian Business Environment (2015) competitive forces are “The domestic and foreign competitor influences on organizational decisions.” (page 8). Competitive forces had a significant impact on Island Abbey Foods by forcing the company to innovate to gain competitive advantage and be successful on the market. The market for honey is relatively big and to gain a major share of the market the company has to provide products to the consumers that are cheaper, better in quality and more unique than those of competitors’
Clorox is considered the most powerful brand due to the brand’s long relationship with bleach, since 1913 where $100 were set aside to set up America’s first commercial-scale liquid bleach factory. The notion of marketing that using bleach means clean. For a long time, The Clorox Co. used sponsorships as a platform to connect with consumers and driving sales. This company is now taking marketing strategy to another level. Clorox followed The Coca-Cola Co. by creating an in-house entertaining marketing team. The game plan to surpass the competition is to build on past success by using more powerful and integrated campaigns. An example of their new strategy was with the partnership with Univision and the H20 Music Festival in Dallas and Los Angeles. Univision took a multicultural approach, including Mexican bands, Snoop Dogg, and John Legend.
This assignment will attempt to determine why Marks & Spencer nearly collapsed and what they have achieved in terms of success and failure as part of their recovery programme.
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
The Boston matrix can be tailored to Benetton to demonstrate how Market share can be gained by investment in marketing, Market share gains will always generate cash surpluses in the company, Cash surpluses will be generated when the product is in the maturity stage of the life cycle, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise can could help Benetton be more successful in creating a better market share and growth.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
A marketer doesn’t just have a plan. Marketers now open up to a wider strategic plan and it’s based on steps that balance out what the market is offering consumers. These marketers must analyze their production with these steps, then make a portfolio of the growth and even their down falls therefore this keeps these marketers to continuously innovate and create even a greater amount of value for their customers. Marketing management functions are discussed along with the marketing mix and strategy.
The main goal when defining the financial perspective was to answer the following question “If we succeed, how will we look to our stakeholders” (BSI 2009, ¶5). Scents & Things is a new business in the area and will need to look closely at the competition in order to increase the company’s market share. The company may have to initiate a way to find a competitor since the original location is in the heart of a small town. Additional areas the company needs to look at is customer satisfaction, asset utilization, Increase net revenues, Minimizing store production costs, Decrease in unit cost, Increase operating cash flow over prior year , And ultimately to achieve financial sustainability. The way to measure the above objectives is to monitor revenue growth, Operating costs, Earnings per share, Return on capital, Return on interest, and number of returned items in a way that will help management to direct the c...
The case looks at prescriptive strategy as applied to multi-product group of companies. Unilever is based in over a hundred countries where multiple products are being made in each. However, the market is mature which means that growth is stagnant and innovation is almost non-existent. In order to improve on growth and sales, the strategies that are needed look at how to come up with new products that have high profit margins and penetrate new markets. The prescriptive approach was used to come with a strategy to improve growth and profit. In order to improve on innovation, both the prescriptive and emergent strategies can be used since both support innovation. From the case study, not much profit was made when the ‘Path to Growth’ strategy was first implemented (2001-2004). The strategy was initially based on cost cutting. There was a need to also build volumes through existing portfolio of branded products through innovation and marketing. By focusing on increasing sales in developing countries where growth prospects were high and increasing investment in personal care products where profit margins were higher, it was possible to improve the profit portfolio.
Studies and analyses regarding variations between companies performing higher or lower regarding their marketing practices has helped out to assure that a central textbook marketing strategy principle; which is to achieve success regarding that in the long term the products and services of a firm have to be well ‘positioned’ in the market. This paper aims to highlight the common formulations or ‘anatomies’ for strategies and the isolation of some of the most important inclusions that were thought to be really important in achieving success. Just to bring some “flesh on the bones”, this article examines the method through which theory is translated into practice.
Do you think strategic management had contributed to the Clorox Company’s success? Why or Why not?
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.