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8/10/2019 The Gril-kleen Corporation S CASE
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THE GRIL-KLEEN
CORPORATION S CAS
Desika Andriani 2013002051
Helena Winata 2013002047Maria Dwi Ardiana2013002073
Robby 2013002061
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OUTL
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THE GRIL-KLEENS BACKGROUND
Two brothers whothe owner smallbusy restaurant
The restaurantsgrill needed
cleaning severaltimes
Problem :effort to
orders whgrill was
Owner dthe me
clean
Owner decide todevelop their own
grill cleaner
Ask the advice fromone customer in the
chemical business danbegan the experiment
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Product work on both hot
grills Grill operator could grill in
five minutes by simply pur
solution on, allowing it to d
rising the grill with water. A
light seasoning with cooki
grill was ready for use aga
Clean grills quickly, easily,
and at normal operating
temperature
Economical, easy to mix, andhave no discernible odor or
taste
Pass safety requirements
(nontoxic & noncaustic)
Leave the grill seasoned so
that food wouldnt stick to thegrill after it had been cleaned
After experimenting &modifying the solution for
couple of years
THE
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START TO GROWTH
Friend inrestaurantbusinessheard aboutproduct andasking thesamples
Demand increase,started to sellproduct bygalloon, charging
whatever they feltthe market wouldbear
Product appeared tobe successful, beganto think aboutmarketing in largerscale, join with onecustomer fromBoston Eddy
Company
Early 1997, three ofthem formed Gril-Kleen Corporation,working in thebasementrestaurant, usedtheir spare time &days off to makeproduct
Orders began toincrease , needlarger facilities, sothey move to new &larger places
Saleincremandisor
Hiredambto ruand
Comdeclithreebougpaid returbusin
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Meet Warren Ryan , amanagement consultan,an MBA with extensive
experience in
marketing, advertising,& insutrial management
Learned about thesituation , suggested tohire his consulting firm
to do market study, map
out operating, &marketing plan
Thask
take
Ry
conanre
pro
Ryan impressed by theapparent success in
company despite of thelack of good planningthat the product could
be develop successfully
Ryan decided toaccept the offer, and inapril 2001, he becamethe new president of
Gril-Kleen Corporation
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Situation Analysis
Background of Venture
Strengths and Weaknesses ofVenture
Market Opportunities and threats
Competitor Analysis
Marketing Objectives and Goals Marketing Strategy and Action
programs
Budgets
Controls
8
OUMARK
P
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STRENGHT & WEAKNESSANALYSIS
GRILL KLEEN PRODUCT
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STRENGHT
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Gril-Kleen was a very effective
chemical solution, which could clean
grills at very high operating
temperatures of around
3500, without producing
objectionable odors.
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Gril-Kleen = cost-effective,
easy to mix, did not havenoticeable flavor and ithad also passed all safetyrequirements.
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It could clean hot as well as cold grillswithout changing the working temperaturthe grill.
It took lesser time to clean the gill compato other grill cleaner available in the mark
place.
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Most of end-users who had tried Gril-Kleen cont
order it, showed competitive advantage and
performance superiority over other products availab
market.
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Product had added usage benefit of cleanistainless steel, ceramic tiles, clothing,formica, plastic, chrome, machine tools anfiber glass.
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Gril-Kleen Corporation had a large plant
with 1,500 square foot cinderblock
building and enough equipment that was
able to produce 450 gallons of Gril-Kleen
per day.
Company could increase the capacity of
production at any point of time by
putting more equipment and labour to
produce Gril-Kleen, as they had surplusspace available in the building.
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Gril-Kleen Corporation had set up finerelationship with good number of distribut
and cleaning suppliers in New England.
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Weaknesses
k f d l
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Lack of good planning.
Two brothers of Gril-Kleen Corporation wmore concentrate on their existing restau
businesses than The Gril-Kleen.
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Gril-Kleen Corporations existing
facilities was not goodenoughto produce Gril-Kleenat larger scale and it could alsonot be used as distributioncenter for increasing
demand in themarket place.
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Gril-Kleen corporation plants capacity was to
produce 450 gallons of Gril-Kleen per day.
But,
Company had hired only
one part time employee
who could mix and bottle
up to 200 gallons a day.
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Corporation was not able to
retain their sales
employee, who had madegood reputation with new
distributors and customers.
In the long run, it finally
converted into future loss
of the sale.
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Sales channel and sales force
were not being aligned properly
and they were onlyconcentrating restaurant
businesses as their target
market, but product usabilitywas far more than just cleaning
the kitchen grills.
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Pricing was not rationale and was based on
the paying capacity of the individuals,
which did not include the cost of the
production, its future cash flows and the
breakeven point.
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The Gril-Kleen just had few records, little
financial data, and no regular flow of
paperwork. It was very difficult to monitor,
whom they sold the product and who had to
pay balance money.
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The whole business process of Gril-Kleen Corporation
became so complicated and unorganized that
management didnt know, what was there current
inventory position, how much they had to manufactur
to keep balance between demand and supply.
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opportunity
Thre
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OPPORTUNITY
National restaurant cleaning market is $ 80
million a year and no single companydominate player in the market.
The product had additional use that couldgiving a huge opportunity to enter into new
market
Demand of gril-kleen is increasing not onlyin restaurant industry but also in other
industries and households.
l t ti i th l f G il l f $3 000 t
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.
Fluctuations in the sales of Gril-Kleen from $35,000 to a
little less, was an indication of declining the sales
Competition was growing within the major players
of the same business.
Big industrialist who had potential to start a business also
interest to launch their product in the same industry
One of those competitors might have taken the patent of t
Corporationsproduct formula and take legal action
Corporation.
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Group Solutions About The Gril K
Case
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DECISIONS CRITE
MARKET DEVELO
Formation of Products with New or
Changed Features
that Propose New
or Added
Benefits
to the Customer.
PRODUCT DEVELOPMENT
Competitive Analysis
and Do Marke
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ALTERNATIVE SOLUTIONS
Look at The Product Cost and Competitors Pricing
Make New Price of The Product
Establish Relationship With Distributors andWholesalers by Compromising on Price at CertainLimit
Give Some Attractive Promotional Schemes WhichCan Be Helpful to Attract More Customers
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RECOMMENDA
Gril-Kleen Corporation should increase their production
capacity
Gril-Kleen Corporation has to understand that selling is
most important part for any organization
Gril-Kleen Corporation may go for product development
or market development process
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Cont(recommendation)
Gril-Kleen Corporation should fixed their m
system , make financial statement
Gril-Kleen Corporation should hire more em
Gril-Kleen Corporation should take the pat
formula
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