THE GRIL-KLEEN

CORPORATION S CASE
Desika Andriani 2013002051
Helena Winata 2013002047
Maria Dwi Ardiana
2013002073
Robby 2013002061

OUTLINE

THE GRIL-KLEENS BACKGROUND

Two brothers who
the owner small
busy restaurant

The restaurants
grill needed
cleaning several
times

Problem : amount of time &

effort to clean the grill ,
orders which lost when the
grill was being cleaned

Ask the advice from

one customer in the
chemical business dan
began the experiment

Owner decide to
develop their own
grill cleaner

Owner dissatisfied with

the methods & grillcleaning product

THE RESULT

Clean grills quickly, easily,

and at normal operating

temperature
Economical, easy to mix, and

have no discernible odor or

taste
Pass safety requirements

(nontoxic & noncaustic)

Leave the grill seasoned so

that food wouldnt stick to the

grill after it had been cleaned
After experimenting &
modifying the solution for
couple of years

Product work on both hot and cold

grills
Grill operator could grill in less than

five minutes by simply puring the

solution on, allowing it to dry, then
rising the grill with water. And after
light seasoning with cooking oil, the
grill was ready for use again

START TO GROWTH

Demand increase,
started to sell
product by
galloon, charging
whatever they felt
the market would
bear
Friend in
restaurant
business
heard about
product and
asking the
samples

Product appeared to
be successful, began
to think about
marketing in larger
scale, join with one
customer from
Boston Eddy
Company

Early 1997, three of

them formed GrilKleen Corporation,
working in the
basement
restaurant, used
their spare time &
days off to make
product
Orders began to
increase , need
larger facilities, so
they move to new &
larger places

Sales volume
increase, but the
management
disorganized
Hired a local
ambitious individual
to run the company,
and failed
Company sales
declining, the other
three partners
bought him out,
paid his bis, and
returned to running
business in days off

Meet Warren Ryan , a

management consultan,
an MBA with extensive
experience in
marketing, advertising,
& insutrial management

Learned about the

situation , suggested to
hire his consulting firm
to do market study, map
out operating, &
marketing plan

The brothers
asked Ryan to
take over the job
himself

Ryan decided to
accept the offer, and in
april 2001, he became
the new president of
Gril-Kleen Corporation

Ryan impressed by the

apparent success in
company despite of the
lack of good planning
that the product could
be develop successfully

Ryan agreed to
consider the offer
and began to
research the
product and its
market

MARKETING RESEARCH FOR THE NEW

VENTURE
Ryan researched about the product & the
1.
2.
3.
4.

Defining the purpose or objectives

Gathering data from secondary sources
Gathering information from primary
sources
Analyzing and interpreting the results

market. From library sources, he estimated

the national restaurant cleaning market at
about $80 million a year, and he learned
that no single company held a dominant
share of the market

From experience with the product and interview

with current users of Gril-Kleen -> Ryan became
convinced of products performance superiority
over competing products

 Situation Analysis
Background of Venture

Strengths and Weaknesses of

Venture
Market Opportunities and threats
Competitor Analysis
Marketing Objectives and Goals

Marketing Strategy and Action

programs
Budgets
8

Controls

OUTLINE
MARKETING
PLAN

STRENGHT & WEAKNESS ANALYSIS OF

GRILL KLEEN PRODUCT

TRENGHT

Gril-Kleen was a very effective

chemical solution, which could clean
grills at very high operating
temperatures of around
3500, without producing
objectionable odors.

Gril-Kleen = cost-effective,
easy to mix, did not have
noticeable flavor and it
had also passed all safety
requirements.

It could clean hot as well as cold grills

without changing the working temperature of
the grill.

It took lesser time to clean the gill compare

to other grill cleaner available in the market
place.

Most of end-users who had tried Gril-Kleen continued to

order it, showed competitive advantage and product
performance superiority over other products available in the
market.

Product had added usage benefit of cleaning

stainless steel, ceramic tiles, clothing,
formica, plastic, chrome, machine tools and
fiber glass.

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 surplus
space available in the building.

Gril-Kleen Corporation had set up fine

relationship with good number of distributors
and cleaning suppliers in New England.

Weaknesses

Lack of good planning.

Two brothers of Gril-Kleen Corporation were

more concentrate on their existing restaurant
businesses than The Gril-Kleen.

Gril-Kleen Corporations existing

facilities was not good
enough to produce Gril-Kleen
at larger scale and it could also
not be used as distribution
center for increasing
demand in the
market place.

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.

Corporation was not able to

retain their sales
employee, who had made
good reputation with new
distributors and customers.
In the long run, it finally
converted into future loss
of the sale.

Sales channel and sales force

were not being aligned properly

and they were only
concentrating restaurant
businesses as their target
market, but product usability
was far more than just cleaning
the kitchen grills.

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.

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.

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 manufacture

to keep balance between demand and supply.

pportunity

hreat

OPPORTUNITY
National restaurant cleaning market is $ 80
million a year and no single company
dominate player in the market.
The product had additional use that could
giving a huge opportunity to enter into new
market
Demand of gril-kleen is increasing not only
in restaurant industry but also in other
industries and households.

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 showed
interest to launch their product in the same industry.

One of those competitors might have taken the patent of the Gril-Kleen
Corporations product formula and take legal action Gril-Kleen
Corporation.

Group Solutions About The Gril-Kleen

Case

DECISIONS CRITERIA
PRODUCT DEVELOPMENT
Formation of Products with New or
Changed Features

that Propose New

or Added
Benefits

to the Customer.

Competitive Analysis of the Industry

and Do Market Segmentation

MARKET DEVELOPMENT

ALTERNATIVE SOLUTIONS
Look at The Product Cost and Competitors Pricing
Make New Price of The Product
Establish Relationship With Distributors and
Wholesalers by Compromising on Price at Certain
Limit

Give Some Attractive Promotional Schemes Which

Can Be Helpful to Attract More Customers

RECOMMENDATION
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

Cont
(recommendation)
Gril-Kleen Corporation should fixed their management
system , make financial statement

Gril-Kleen Corporation should hire more employee

Gril-Kleen Corporation should take the patent of product
formula