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Literature review of advertisement strategy
Strategy of advertising
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Kingsford Charcoal: Overcoming the Softening in the Charcoal Category
PROBLEM STATEMENT
Taking into account the slowdown in the overall charcoal category, the main problem of Kingsford Charcoal (KC) is how to determine the right strategy in order to improve its sales and profits and ensure future growth of the company. This strategy has the following issues:
1. How to overcome the penetration of gas grill usage?
2. Increasing advertising - will it help the company to improve the sales?
3. How to extend the seasonality of business?
4. How to choose the right pricing strategy?
RECOMMENDATIONS:
• In order to overcome gas grill penetration, the KC should organize an advertising campaign on and emphasis on charcoal market advantages versus gas market with an aim to increase total charcoal grill market, using results of blind taste test of food grilled on charcoal comparing to grilled on gas.
• The holiday weekends, e.g. the 4th of July celebration should be specially marketed, using media advertising, including different store promotional activities with an aim to increase higher percentage of Kingsford’s annual sales.
• To extend the seasonality span of charcoal business, on which KC success is based on, the company would need to organize campaigns with emphasis on family values, friendship, free time spending and most importantly stimulate early spring and late fall open-door barbecue events, like concerts, sports events and other leisure activities both in local neighborhood and in other states. Compared to previous years, such outdoors events are becoming more and more popular and they have a tendency to grow.
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.
Cons. (1) Expenses will definitely increase and will extend the budget. (2) Competitors will benefit from the campaigns too, especially cheaper private label brands. There is a risk that competitor’s market share may grow on KC expense in both – financial and market share terms.
ALTERNATIVES
1.To increase prices according to 4th scenario (total line price increase by 5%) and from short-term revenues income use resources for advertising.
Outdoor grilling is a booming activity in modern USA, which provides excellent opportunity for market growth. Thus, we will present an overall marketing strategy and establish core marketing activities to boost its profitability and MBAs. We will then attempt to re-strategize marketing mix to help Kingsford back on its track. The real challenge is to attract more people to charcoal grilling from gas grilling and at the same time capture more market share from Royal Oak.
D. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 cents. Outline the significant factors that could cause changes in supply and demand for the low-calorie, frozen microwavable food. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.
Advertisement over the years have been very relentless with a few inventories for its expansion. It can be a very persuasive tool towards getting a result. GM uses a tradigital marketing strategy type of advertising which combines both the traditional way of advertising and the new age way of advertising which is computer based also known as digital. However, there’s always room for improvement. According to John Wanamaker, he stated that “I know that half of my advertising dollars are wasted…I just don’t know which half” (Rosenblum, 2011). It is known for years as an accepted truth that 50% of every advertisement dollar is wasted. Is it because we are doing too much or too little to convince our potential buyers? This is a questionable factor that need answers. I recommend changing the key performance indicators from a marketing to a business focus, create a superior experience that at the end of the day simplify consumer’s lives and create an educational platform.
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
Promotion: Promotional budget will be around 20-32% of the budget, changes will be according to product life cycle and trade off statistics. Allowances will be mostly steady around 15% with a maximum increase up to 20% when products reach maturity or sales start to decline. Promotional allocation could change among those channels that don’t show growth regardless sales force support investments.
To Justify why use mass media like Radio and billboards. Being in Poland for a summer vacation taught me a thing or two about business. One would learn about KFC by radio plus street advertisements and billboards, ads on buses, train stations, and parks. With everyone walking and taking public transportation, radio, billboards, and flyers will prove to be the best delivery method in this country. With smartphones, technology is the way to deliver promotional offers to the consumers. Our research will show finding people at train stations that walk around are bound to see billboards and especially leaflets. Leaflets and smartphone apps will be the best methods to reach the consumer that is constantly on the go
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
Firstly, one of the most important focuses would be given to the target customer as we will need to know more about their taste and preferences. What it is they need and or want. Particular topics covering this area will be, the need for ‘Market segmentation’, identifying a competitive position in the market about to enter in the market and studying consumer behaviour, will all be discussed.
Stated by The Columbia Encyclopedia, 6th Ed. It is said that “Charcoal is a substance obtained by partial burning or carbonization (destructive distillation) of organic material, a charcoal is largely pure carbon.” In addition, The Columbia Encyclopedia said that the entry of air during the carbonization process is controlled so that the organic material does not turn to ash, as in a conventional fire, but decomposes to form charcoal.
...ience in this channel through its Kelly brand and it is preferable to cannibalize sales to GY products. Threats to this wider distribution are GY¡¯s relationship with the independent retailers and potential erosion of its brand. However, there is no other major brand distributing solely in the independent channel so retailers have no choice and sales are being lost to PL mostly in this channel. In addition many independents are moving towards stocking other brands so GY needs to move into new channels. GY could also only offer a limited range in the mass merchandisers, unlike the retailers who have the full line plus the new AT. The media campaign and introduction of AT should provide sufficient boost to GY¡¯s brand equity. Longer term (after 1 year), GY could consider including AT in the mass merchandiser but GY¡¯s market position would need to be re-examined.
The company can also improve its advertising methods to attract more customers and create a brand image.
Before we get started let's have a short science class on activated charcoal. The short version is that activated charcoal is carbon, real organic material that has been reduced to charcoal just like a piece of hardwood burning in your campfire.
This essay is going to examine how advertising strategies used in different market structures affects profits of the firms. This essay is being written based on Advertising, an article by Geoff Stewart, in which he examines “how do firms determine their advertising strategy”. In this article he uses Monopolies as an example of a non-competitive market and Oligopolies as an example of competitive markets, so in this essay Monopolies and Oligopolies will also be used as examples. However other competitive markets include perfect competition and monopolistic competition.
via promotional stalls and kiosks to create brand awareness and allow customers to first hand taste
In conclusion, while the shift in demand curb can result from several sources, the quality of service, the tastes or even the number of buyer as presented here represent the main reason of the shifting price of an activity as the sell of ice-cream on campuses. As a businessman we should take in consideration those factors in order to be successful and trying to anticipate our rise or fall to stabilized our business. On another hand, keep in mind The most famous law in economics: “when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.”