Clorox is considering how to expand its market share through sustainable brands like Brita while addressing corporate social responsibility. Its key brands focused on sustainability - Brita, Burt's Bees, and Green Works - currently make up only 10% of sales. Clorox must determine whether to invest more heavily in these brands or focus resources on larger, more established brands. Expanding Brita's product lines while promoting Clorox's commitment to sustainability through PR partnerships is identified as the best alternative to drive growth and improve brand image.
Coca Cola Presentation according to philips cottler bookHameed Niazi
Coca-Cola has been producing beverages since 1886 and has expanded globally over time. The document discusses Coca-Cola's mission, vision, product line including carbonated drinks and juices, and provides a timeline of the company from 1886 to present. It also includes sections on segmentation, SWOT analysis, pricing strategy, and promotion mix.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Walmart is the world's largest company by revenue and the biggest private employer. Founded in 1962 by Sam Walton, it now operates over 11,000 stores worldwide under 55 banners. Its main divisions are Walmart Stores US, Sam's Club, and Walmart International. While known for its low prices due to large scale and supply chain management, Walmart also faces criticisms around labor issues and impact on local communities. It seeks further growth through expansion in emerging markets and increasing online sales.
Aqualisa, a UK shower manufacturer, invested in developing a new shower product called Quartz. However, sales of Quartz were lower than expected due to several issues: low consumer awareness, plumbers' reluctance to adopt new technologies, and the high price of Quartz targeted at the premium market. Aqualisa is considering various marketing strategies to boost Quartz sales, such as targeting consumers directly, DIY customers, developers, or trade shops and plumbers. Targeting trade shops and plumbers is identified as the best strategy as they have significant influence over consumers and the largest market share. The strategy is expected to increase Quartz sales four-fold, make plumbers more productive and profitable, and strengthen Aqualisa
eHarmony Strategic Marketing Case StudyZoe Robinson
For my capstone marketing class at Western Washington we were given a case on eHarmony (from Harvard Business School) and had to decide which strategy they should use for the future.
Brita was the market leader in pour-through (PT) water filters but lost market share to PUR's faucet-mounted (FM) filters. Brita's strategies to target bottled water and tap water consumers directly were ineffective. To regain market share, Brita should 1) partner with a bottled water company to sell Brita-filtered bottled water, 2) improve the design and functionality of its FM filters, including an indicator that shows when filters need changing, and 3) invest in R&D to develop products aligned with trends. This winning strategy would use partnerships and new product innovations to increase Brita's sales and market share.
The Black & Decker is a B2B Marketing Case which deals with repositioning of the brand to deal with the issues it faces in a particular market segment.
The Coca-Cola Company has a diverse beverage portfolio that includes its flagship Coca-Cola brand along with other non-alcoholic ready-to-drink beverages. A SWOT analysis reveals Coke's strengths in brand recognition and distribution network while also facing threats from competitors and changing consumer tastes. Coke employs growth strategies like expanding its product portfolio and investing in emerging markets to maintain its leading market position globally and in Pakistan.
The document summarizes a study conducted by Hindustan Coca-Cola Beverages Pvt Ltd to understand the rural market penetration of Coca-Cola in the Bijnor region of Uttar Pradesh, India. It describes Coca-Cola's rural marketing strategy of improving availability, affordability and acceptability of its products. The study analyzed various outlets based on volume of sales, income groups and distribution channels. Key findings included competition from local drinks and brands, issues with visicooler supply, and preference for promotion schemes from retailers. Suggestions focused on maintaining supply, increasing brand availability, replacing damaged goods, and incentivizing retailers.
This document presents a marketing strategy for Coca-Cola in China. It outlines Coca-Cola's mission statement, objectives, consumer segments, and analyses including PESTLE, Porter's Five Forces, BCG matrix, and critical success factors. The strategy focuses on increasing sales and market share in China through local manufacturing and a new product targeting a new consumer segment. Key factors for success include brand affinity, taste, price, health awareness, and promotions.
The document discusses the management practices of Coca-Cola, including an overview of the company's history, leadership team, product lines, financial performance, strategic planning approaches, human resources philosophy, and commitment to corporate social responsibility through initiatives focused on areas like health, packaging, water stewardship, and climate change. It provides details on Coca-Cola's mission, values, goals, and strategies for leading in the beverage industry and continuing to strengthen its brand portfolio.
The document summarizes Procter & Gamble's organizational changes over time. It focuses on the "Organization 2005" restructuring program introduced by CEO Durk Jager which aimed to accelerate sales and innovation by structuring P&G into three global organizations based around products, geographies, and business processes. However, the changes led to missed earnings targets, loss of market share, and reduced employee morale as jobs were cut. While the goals were to promote innovation and speed, a lack of immediate results and confrontational leadership style created problems. Recommendations include building employee buy-in through communication, shaping culture to fit the strategic needs, and giving local management flexibility while maintaining global standards.
Barco Projection Systems, the market leader in graphic projectors, was surprised by Sony's new superior graphics projector launching at a lower price. Barco needs to counter quickly by launching new superior models and re-pricing existing ones. The document analyzes Barco, Sony, their products and strategies, the projection systems market and customers, technological environment, competitors like ElectroHome, and collaborators like distributors. It considers Barco's planned digital BD700 launch and Sony's 1270 product threatening its leadership in graphics and data projectors.
The 4Ps of Coca Cola (Marketing presentation)Malik Waseem
Coca-Cola has been operating in Pakistan for over 50 years. It has 6 bottling plants located across major cities and employs 3,500-4,000 people in its head office in Lahore. Coca-Cola utilizes multiple distribution channels including wholesalers and retailers to ensure its products reach over 70,000 customers nationwide. It promotes its brand through various advertising campaigns using print, television, billboards, and digital media, as well as sponsoring popular events. Coca-Cola aims to target all potential consumers in Pakistan by determining competitive pricing strategies and ensuring widespread availability of its products.
Colgate-Palmolive Company: The Precision Toothbrush Case StudyUttaravalli Abhinav
Colgate-Palmolive developed a new toothbrush called Precision to provide better plaque removal than competitors. The Precision product manager considered whether to position it as a niche or mainstream product. Financial analysis showed greater profits from niche positioning in year 1 transitioning to mainstream in year 2. This minimized revenue losses from cannibalizing existing products. Testing found naming it "Precision" rather than "Colgate Precision" reduced cannibalization. The launch communication strategy included consumer promotions, emphasizing Precision's plaque removal, and sampling to overcome perceptions of its unusual brush head design. Dentist sampling further supported the niche launch approach.
- The document discusses Brita, a water filtration company that was acquired by Clorox in 1988. It summarizes Brita's history, products, marketing strategies, and competition.
- Brita struggled initially in the US but grew rapidly after Clorox implemented new marketing campaigns focusing on the taste benefits of filtered water. Brita captured 70% of the home water filtration market by 1999.
- Brita's main competitor was PUR, which had technological advantages in its faucet-mounted filters and spent heavily on advertising. The document analyzes Brita's options in response to the growing faucet filter segment and increased competition from PUR and other companies.
Surf Excel has been the dominant washing powder brand in Pakistan for 40 years. It aims to build loyalty through high quality and adapting to consumer needs over time. Unilever focuses on conveying the message that dirt is good for children through their advertising campaigns, which target mothers as the primary decision makers. Their marketing strategies include maintaining the "dirt is good" positioning through new TV commercials, expanding their target market beyond the middle class, and introducing new package sizes while providing discounts on bulk purchases to distributors. The objective is to continue growing sales and market share against competitors like Ariel.
The document is a marketing plan by Coca-Cola Company to introduce a new product called "Bubble Buzz". Bubble Buzz will be a bottled bubble tea product positioned as the only ready-to-drink bubble tea on the market. The objectives of the marketing plan are to create strong consumer awareness of the new product, establish wide brand recognition to capture market share in the functional drinks segment, and become the top market leader in that segment. The plan analyzes the industry, trends, demographics and economic conditions to guide marketing strategies to reach the targeted market size and sales growth forecasts over four years.
Colgate Palmolive was considering launching a new precision toothbrush. They could position it as either a niche product targeting gum health or a mainstream product. As a niche product it would capture less of the market more slowly but with less risk, while mainstream would capture more of the market faster but with greater risk. They analyzed test marketing and financial projections. In the end, they recommended initially positioning it as a niche product to appeal to consumers concerned with gum health, then potentially expanding it mainstream later.
Here are a few key arguments against relying solely on individual action to address environmental issues like climate change:
1. Structural issues require structural solutions. Problems like climate change are caused by large-scale social and economic systems, not individual behaviors. Even significant individual actions will not address the root systemic causes. Collective action and policy changes are needed.
2. Individual actions can distract from systemic change. A focus on individual green behaviors takes attention and pressure away from pushing for regulations and policies that big corporations and governments need to implement.
3. Individual actions are not enough due to scale of problems. The level and speed of reductions needed to mitigate climate change are too massive for individual actions alone. Voluntary individual actions will not drive
This document provides a marketing plan sample for Brita's filtered water bottle. It includes an executive summary, introduction, strategic plan with mission/vision/goals, product overview, situation analysis including SWOT and target market analysis, and marketing mix recommendations. The strategic plan aims to increase profits and ROI within two years by improving television/print advertising, gaining more retail support/shelf space, and using point of purchase displays and direct mail coupons targeted at bottled water drinkers.
Bioceuticals Research Labs is developing a line of skin care and wellness products using patented technology to deliver the amino acid L-Arginine transdermally. This $40B market is growing due to favorable demographics and increased interest in alternative medicine. BRI's products are aimed at improving skin quality and health based on scientific evidence from the 1998 Nobel Prize in Medicine about the benefits of nitric oxide production from L-Arginine. BRI seeks $2-3M in financing to further develop its IP portfolio, launch marketing initiatives, and expand its product line and distribution channels to achieve $3M in sales in year 1 and $15M by year 3.
The document provides a summary of the Brand Asset Valuator (BAV) analysis conducted for Colgate and its competitors (Pepsodent, Close Up, Anchor, Dabur) in India. A questionnaire was used to collect data from 31 respondents on the four BAV pillars: differentiation, relevance, esteem, and knowledge. Scores were calculated for each brand on each pillar. The analysis found that Colgate has the highest scores for relevance and esteem. On the BAV power grid, Colgate is in the leadership category. Pepsodent and Close Up were found to be declining brands, while Anchor is unfocused and Dabur has low brand stature. The BAV provided insights
The document summarizes the results of Phase I of a brand tracking project for Colgate conducted by students. It includes a brief history of Colgate and describes using the Brand Asset Valuator (BAV) model and Zaltman Metaphor Elicitation Technique (ZMET) to evaluate Colgate's brand image and identity. The BAV found Colgate has the highest scores in relevance and esteem, and is in the leadership category. ZMET identified Colgate as a brand that promises satisfaction, confidence, love, care and value for money, and is a trusted family brand.
- Seventh Generation is a green home and personal care products maker that has historically had small marketing efforts compared to larger competitors like Clorox.
- It recently launched its first national ad campaign called "Protect Planet Home" to raise awareness of environmentally responsible products as the green cleaning products market grows.
- The CEO says their goal is to inform consumers of Seventh Generation's mission to protect the planet in a way that is different from large CPG companies, and increase brand awareness to 45% of U.S. households.
A clear label_strategy_for_food_additivesJerome Diaz
This document discusses the concept of "clean label" and how it has evolved from a trend to something expected by consumers. It has become difficult for food companies to reformulate products due to the lack of a clear definition of clean label and consumers' changing demands. The document argues that moving from "clean label" to "clear label" would provide more transparency about ingredients and allow consumers to make informed choices. It uses cellulose derivatives as a case study and argues that greater education is needed about commonly used food additives in order to address misperceptions and allay fears.
In this assignment the objective of the assignment have mentioned. in which the introduction of the company is there, its mission statement, Achievements and past successes, customer awareness towards this company and many more.
In the “Year of Sustainability” the cosmetics industry and B Corp movement look to embrace brighter shades of green.
Many in the beauty industry are seeing 2015 as the year of sustainability in North America. Echoing this notion, more and more brands are tailoring their strategies and products towards more eco-optimal solutions and are even refocusing their company’s ethics and operations to include major corporate social responsibility initiatives.
Many in the beauty industry are seeing 2015 as the year of sustainability in North America. Echoing this notion, brands are tailoring their strategies and products towards more eco-optimal solutions.
Read how MaCher, fellow B Corps, and other environmentally conscious beauty brands are embracing sustainability.
Procter & Gamble Co-A Brief Discussion of P&G.Rizwan Khan
Procter & Gamble (P&G) is an American multinational consumer goods company founded in 1837. It produces a wide range of cleaning agents and personal care products. P&G has achieved sustained market leadership through customer knowledge, long-term outlook, product innovation, quality strategies, brand extension, marketing multiple brands, communication, and cost cutting. The company employs over 138,000 people worldwide and has annual sales of over $79 billion.
the paper is about the supply chain management ethical issues, dem.docxoreo10
the paper is about the supply chain management ethical issues, demographics, or environmental issues. In general, the paper is more strategic. You are expected to do your own research within the periodicals academic library. In other words, this is a research oriented assignment. You are expected to find other articles to compare, cite the authors properly, etc. It is a deliberately open assignment that is intended to promote analysis, information gathering, information processing and writing skills.
· 50% Articles and sources should be 2 years old at most and academic.
· A minimum of 2000 words per document is expected
· Must have Tables and Graphs (Tables are clear and complete. Text describing the graph in the body of the document shows understanding and analysis skills)
· Citation and reference
Table Of Contents
Executive Overview 3
Situation Analysis 4
Market Summary 5
Trends, growth, market share winners & losers 5
Segmentation & target market(s) 5
Environmental Scan 6
Social/Cultural Factors and Trends 6
Economic Factors 7
Technological Factors 8
Competition 8
Other factors 9
SWOT Analysis – key factors discovered 10
MKT 291 Industry Analysis Outline
1. Table of Contents (include page numbers)
2. Executive Overview (10 points)Executive Overview
The Colgate-Palmolive Company is a worldwide leading consumer products company committed to the care and cleanliness of families and-or their homes. It started in the early 19th century as a small soap and candle business founded by William Colgate. Now, more than 200 years later, Colgate-Palmolive serves and is trusted by millions of people worldwide. They sell their products in over 200 countries around the world and identify under brand names such as Colgate, Palmolive, Mennen, Irish Spring, Protex, Ajax, Axion, Soupline, Souavitel and Fab, Sorriso, and Kolynos. Colgate-Palmolive has an enormous market diffusion of 67.7%., which is actually 50% higher than the second leading brand. Colgate-Palmolive’s’ products are arranged as oral health, homecare product or personal product. As their market is evaluated, it is clear to see how the product diversion is segmented based on location and certain demographics. It is important for Colgate to recognize how certain regions act as well as understand their habits and lifestyle choices. This will enable them to promote their product in whatever way seems most fit. The economy, just as the environment, also greatly affects how Colgate must carry out their business. The economy can affect both the consumers and suppliers bargaining power, as well as the the rivalry among competitors, who place nearly identical products on the market. One of Colgate’s key competitors is Procter & Gamble Co. because they specialize in almost identical fields. Colgate obviously produces products that are ...
A complete analysis of P&G - one of the top FMCG companies in the world, how it is doing against competition, the reasons behind its success, SWOT Analysis, etc.
1) Procter & Gamble (P&G) is an American multinational consumer goods company founded in Cincinnati, Ohio. It produces pet foods, cleaning agents, and personal care products.
2) P&G's vision is to improve lives through superior quality products, now and for future generations. Its mission is to be the best customer products and services company worldwide.
3) P&G faces competition from substitutes and other companies. However, it has strengths in its global operations, brand names, product innovation, and research and development budget.
The document discusses green marketing and provides examples. It defines green marketing as marketing products and services that are presumed to be environmentally safe. It then gives characteristics of green products and discusses the need for green marketing from both business and consumer perspectives. The document also outlines some challenges in green marketing and provides strategies companies can take to effectively market green products. Finally, it analyzes trends in green marketing in India and provides cases of companies adopting green marketing strategies.
Colgate Total uses an indirect distribution channel involving dentists, drug stores, grocery stores, large retail stores, and department stores to reach consumers across many geographic areas. Key distribution activities include transportation via truck, rail, water and air. Promotion of Colgate Total involves advertising through television commercials, magazines, radio, billboards and dental office ads. Promotional strategies include coupons, rebates, in-store displays and demonstrations to induce trial of the new product.
Brita, Burt's Bees, and Greenworks - Leveraging Sustainability at CloroxSustainable Brands
Burt's Bees, Brita and GreenWorks? All successful companies with a positive sustainable image and brand power in a struggling economy...Discover how they manage to grow and thrive with Mike Kraft of The Clorox Company!
CASE STUDY ON THE FACTORS THAT LEAD TO THE GLORY OF COLGATE BRANDVARUN KESAVAN
Colgate is an umbrella brand principally used to sell oral hygiene products such as toothpastes, toothbrushes, mouthwashes and dental floss. Manufactured by American consumer-goods conglomerate Colgate-Palmolive, Colgate oral hygiene products were first sold by the company in 1873, sixteen years after the death of the founder, William Colgate.
According to a 2015 report by market research company Kantar Worldpanel, Colgate is the only brand in the world purchased by more than half of households globally.[1] Colgate has a global market penetration of 67.7% and a global market share of 45%[2] - despite this, it maintained the highest growth rate of all brands in the survey, with 40 million new households purchasing Colgate-branded products in 2014.[3] Its global market penetration is nearly 50% higher than the second-placed brand in the study, Coca-Cola (43.3% penetration).
An intrapreneurial perspective on a strategetic business proposal for Seed Phytonutrients that addresses both internal and external factors.
NOTE: This proposal was produced for the sole purpose of a class project and is not affiliated with Seed Phytonutrients.
This document discusses various business models and alternatives for sustainable and socially responsible companies. It describes two basic business models that companies can use to gain competitive advantage: differentiation to earn higher margins, and driving down costs to be the most efficient supplier. It also discusses concepts like greenwashing, limits to growth under capitalism, and alternatives like cooperatives, B Corps, conscious capitalism, social entrepreneurship, and triple bottom line accounting. Case studies of companies taking different approaches are provided for discussion.
1. The Clorox Company Case
Harvard Business School Case
April 16, 2015
Define the Problem:
How will Clorox create sustainable corporate social responsibility while expanding its market share
through its brands?
Decision Alternatives:
1. Expand further into Brita products while addressing corporate social responsibility
2. Wait to expand Brita until corporate responsibility is addressed
3. Allocate majority of our resources towards the more established and mature brands such as
Clorox Bleach, Pine-Sol, and Formula 409 to create funds to spend on corporate social
responsibility
Uncertainties:
1. Will brand image diminish for each product as we try to promote corporate social responsibility
for the entire company?
2. If growth was important, is sustainability an enduring mainstream trend that deserved solid
investment?
3. Should Clorox lean into its existing sustainable brands or look for other opportunities that are
trending?
4. Should Clorox look to emerging markets or its core businesses for growth?
Situational Analysis:
Market Trends
The newest megatrends in the market are health and wellness, and environmental sustainability.
These trends, however, are not always about saving the world for the consumers. Instead their views of
health and wellness and environmental sustainability are often about her and her world, rather than the
world. The consumer is concerned about making her would better, and in doing so she was doing a good
thing for the world.
Clorox joined in on the trend of sustainability early on. The products they acquired (Burt’s Bees
and Brita) were some of the first in their product areas that supported the concept of health and wellness
and environmental sustainability. Clorox then invested heavily and launched their first new product in 20
years their new natural line of cleaning products – Green Works. These new sustainable products
accounted for much of the company’s sales growth over the past severalyears. However,the growth rates
of Burt’s Bees and Green Works, especially, have slowed considerably. According to the Cambridge
Group’s research more and more consumers are changing their habits and buying different products
around sustainability. 15% of the population in 2007 showed very strong demand for these products and
another 33% had strong demand. From 2006 to 2007 consumers who claimed to regularly buy green
products jumped over 20%.
Consumers are also now becoming concerned not with just how natural the products are that they
are using, but also the parent company’s social responsibility to the environment. In early 2008, Clorox
decided to make corporate social responsibility a major priority. Through efforts from the Eco office as
well as the individual business units, Clorox achieved Leed Platinum Certification in Energy and
Environmental Design-Existing Building/Operating and Maintenance, being one of only 38 buildings in
the U.S. to achieve this recognition. Clorox overall had made good progress on its eco goals by 2011.
Being a corporation with the name Clorox, not all consumers realized how environmentally friendly the
company was. Going forward, Clorox must overcome this information gap and decide how to show
2. Bolf, Borgerson, O’Brien, Sather, Whetter 1
consumers how overall as a company they are economically responsible. Also they must decide how
much more to invest in their sustainable products versus their larger brands.
Financial Analysis
Years coming up to 2011 were promising, with net earnings reaching over $600 million in 2010.
The projected sales for 2011 were flat and not as progressive as years past. Clorox hosts Burts Bees,
Green Works, and Brita under their umbrella of sales, which only generated 10% of Clorox’s sales. Burts
Bees and Green Works were beginning to make less sales, which could have been due to loss of interest
in the trend or less disposable income. Although the sales are decreasing, Burt’s Bee’s skyrocketed sales
to $126 million over 10 years, proving a strong customer base and interest in the brand. Brita’s growth
was consistent, even through the recession, in 2010, Brita had $250 million in revenues. Clorox still holds
a remarkable amount of assets- reaching $4,555 million- meaning the amount Clorox could pump into
marketing and expanding is feasible and necessary to stay afloat in the health-conscious market.. In order
to sustain corporate social responsibility, strong PR and marketing will be the most influential instruments
for consumers to reconsider Clorox as a necessary brand.
Burt’s Bees Products
Burt’s Bees,an acquisition of Clorox, was founded from their creation of a lip balm made from
beeswax and almond oil. Later the brand introduced a line of toothpaste, shampoo, and a product line for
babies called “Baby Bee.” The product was sold at a number of food and health stores including Target,
CVS, and Walgreens. Clorox saw great potential in the Burt’s Bees brand, not only in the U.S.,but also
on an international level. Burt’s Bees was built on the ideology of “The Greater Good,” and believed that
success followed companies that were socially responsible. The brand was positioned around
sustainability and health and wellness. To determine their target market, Burt’s Bees divided consumers
into five different segments based on 1) their involvement and focus on the environment and 2) their
health and wellness concerns. Their two primary targets consisted of “committed naturalists” and “health
and beauty sleuths.” The committed naturalists were more concerned with environmental impacts
whereas the health and beauty sleuths were more focused on wellness. Although the committed naturalists
and the health and beauty sleuths did not need a lot of convincing to purchase Burt’s Bees,together the
groups comprised of only 8-10% of American women. In order to maximize capitalization, Burt’s Bees
would have to reach two more consumer groups, the “beauty enthusiasts” and “demanding
conventionalists.” These groups are open to natural products, but will not go out of their way to conduct
product research,therefore more convincing might be required.
Brita Products
Brita currently makes up about 4% of Clorox’s sales. The water filtration systems industry has
seen huge booms targeteting fast growing market segments that prefer clean water that cuts down on
waste and adds to sustainability. Brita jumped on this train and positioned themselves as a household
filtration system that cuts costs and waste of water bottles while still giving the consumer clean, good
tasting water. Brita is successfulbecause it has a multidimensional value proposition. It is good for the
consumer’s health, it saves the consumer money, and it cuts waste so it is good for the planet. This has
proved to be very successfulfor Brita, even as a Clorox entity. Brita is the market leader in “pour
through” filtration systems which is only 12% of an industry that is still booming. This is a strength for
Brita and Clorox. To be most successful,Clorox will have to decide if Brita and the water filtration
industry is worth investing heavily in or if it is just a current trend.
There is also a lot of opportunity with a brand such as Brita. Since the brand is well established in
water filtration systems, Brita has a leg up from the competition as new markets for filtration systems
flourish. Brita also has the financial power being tied to Clorox. If Clorox decides to invest heavier into
Brita, it will need to establish what means of spending are best for turning scarce resources into the best
ROI. Many investments in the brand look favorable, but with that comes opportunity costs. Clorox needs
3. Bolf, Borgerson, O’Brien, Sather, Whetter 2
to analyze the trends and decide if they should allocate their resources in R&D towards product
aesthetics,point-of-entry marketing, faster filtration systems, or “on the go” filtration systems.
Green Works Products
Green Works is the second brand to add to the natural trendy line in Clorox, and the first to
include the Clorox name. Trend research projected that consumers wanted an affordable cleaning product
not chalked with chemicals. Since Clorox had the research and development for cleaning products already
perfected,it was a feasible investment to create such a trendy product. This gave Green Works a strong
position in the “green cleaning” market because almost half of consumers desire a more natural cleaning
product and were willing to pay a 25% premium for them. Within the first year,Green Works held 42%
of the natural cleaning category, which grew 100% during the launch of Green Works.
Although the sales for Green Works were $100 million in the first year, the Clorox brand spent a
hefty amount of advertising and marketing; after they began pulling money out of GW budget, the sales
began dipping. Clorox decided there needed to be a change. GW brand was repositioned as a more
“explicitly green” product, pinpointing the mothers that wanted a safer cleaner. Clorox also redistributed
the product to less Wal-Mart stores and where sales may have been a one-and-done trial purchase. Green
Works is back to growing, as a $50 million brand, and becoming a certified plant-based ingredient
product.
Current Marketing/Promotions
Clorox brand currently markets their sustainability products through print, digital, and some TV
advertisements. They use taglines and facts that support why their products are sustainable and are
helping the environment, and how natural they are. For example, on the Brita product advertisements they
focused on showing consumers just how many water bottles they can save from the environment with just
one filter product. For Burt’s Bees product line they show how natural the ingredients are, same with
Green Works. Recently, Clorox has cut their marketing budgets on their sustainable products
significantly, since they only make up about 10% of the total revenue. At first Clorox used a lot of trade
discounts with their retailers, but realized after the recession this was only hurting their total revenue.
With Green Works, Clorox used a high-low pricing strategy for a while to try and lure in new customers,
pricing them at $2.99 then placing it on sale for $1.99. This strategy ended up raising more profits for
both the retailer and Clorox. After cutting back on the marketing budgets for these brands, Clorox started
defensively spending, putting more money into Clorox’s larger revenue brands marketing. Going forward
Clorox will need to decide which brands they would like to allocate this money to.
Distribution
Burt’s Bees products were built around the idea of being socially responsible and the “Greater
Good” which is why the products were originally only found in organic and health stores. Burt’s Bees
decided to expand past health stores and go into major retailers such as Walgreens and Target. Later,
Burt’s Bees also gained distribution at Wal-Mart. Only a few short years later in 2007, Burt’s Bees was in
15,000 retail stores. To bring attention to the products, they are often set up in displays which Burt’s Bees
called “hives”. A “hive” is a small area that features all of the products that Burt’s Bees offers in one
convenient location. Burt’s Bees started with a revenue of $23 million in 2000 and 7 years later in 2007
had a revenue of $164 million due to the vast expansion and popularity of the products.
Burt’s Bees began expanding overseas in 2009 entering new markets in Japan, Korea,Thailand
then France,Italy, Germany, and Scandinavia and lastly Chile, Colombia, Panama and Puerto Rico in
2010. Burt’s Bees also has very loyal Facebook followers. The company uses Facebook as a great way to
engage users with new products and distribute samples prior to a product launch.
Mass merchandisers such as Target and Walmart are still Green Works largest customers.
Typically, Target shoppers have the mindset that they can afford products they think are good for their
sensitive skin and allergies. Some Wal-Mart stores that have a full Green Works line but shoppers can’t
4. Bolf, Borgerson, O’Brien, Sather, Whetter 3
afford to switch to natural products. Clorox agreed that it would be okay to let some of the Green Works
products be removed from the shelf and replaced with only the popular selling products. Clorox
considered potentially expanding into adjacent product lines to fill category pipelines.
Brita offers a variety of different systems including a whole house filtration, “on the go” water
filtration, and faucet mount filtration. For Brita, the company has been bouncing around the idea of
expanding the products. The products are one of a kind and Brita is rate the top “pour-through” filtration
system. With expansion, they must consider manufacturing capabilities as well as distribution channels.
Brand Image
The Clorox name has been mainly associated with one thing, cleanliness. When you think of
Clorox, you can’t help but think of the fresh smell of a bleached room. This used to be a great thing for
Clorox’s brand, but in the past few years,Clorox has decided to revamp its brand image to stay with the
trends of sustainability. Highly health conscious consumers are passionate, stubborn, and smart. They are
breaking down products by each ingredient on the back label. Consumers are now wanting more natural
ingredients and less harsh chemicals that could damage the environment. For Clorox, who are trying to
revamp their brand image, this is showing to be difficult and possibly ineffective. Clorox’s income is
made up of about 90% non-green products. Consumers perceive Clorox as a non-green company that has
extensive R&D in chemical cleaning and home products.
This is where the revamping kicks in. Taking notice to consumer trends, Clorox has adopted three
brands that help transition their brand image into a greener, healthier, and more sustainable company.
With the acquisition and influence of Brita, Burt’s Bees,and Green Works, Clorox has just started
transitioning towards these trends. The problem now is deciding whether the trend of sustainability is here
to stay, or just a fad. Should Clorox invest this much money into revamping a brand that has been
successfulunder its old brand image for 100 years?
Best Alternative
Clorox should expand further into the Brita brand and its products while addressing corporate
social responsibility. Clorox should expand into Brita to follow the trend of “sustainability”. Brita is a
brand that focuses on products that help the world “go green” by reducing waste and focusing on cleaner
water for its consumers. The ideal target market for Britta products are consumers that are around the ages
of 20-65 for both men and women. Younger target markets can be reached by promoting easy to-go
systems and pour-through systems that are eco-friendly. Brita will be positioned as a socially responsible
company that is focused on preserving the world and “going green”. Since some of the benefits of Brita
are better tasting water,cost savings, and positive environmental impacts, it will be priced at a premium.
Brita should continue to use positive and informative messages to inform its consumers about the
environment. Brita’s PR partnership with Nalgene has proved successfuland should be continued to
promote Clorox’s commitment to improving the environment. The main focus for Brita should be
expanding its pour-through filter line and then continue its to-go products. The to-go products and pour-
through systems should be sold in stores such as Target, Walmart and department stores while the
commercial systems should be sold through Brita and home improvement stores.
Implementation
Target Markets
Clorox has a large target market that it must reach through the brands it has acquired. Clorox
jumping on the “sustainability” bandwagon acquired Brita, a brand focused on providing cost effective
and responsible clean water. This brand is used by many households in a pour through filtration pitcher.
Brita’s target market is very broad, as more consumers are concerned with “going green.” Ages 20-65
men and women are Brita’s target market, however, as this trend grows, younger consumers will be
targeted through new products, such as filtered water bottles. Because college students are cost conscious,
the best way to reach this market would be through emphasizing the cost savings of filtered water bottles
versus disposable water bottles.
5. Bolf, Borgerson, O’Brien, Sather, Whetter 4
Clorox, as brand known for selling bleach, is targeting the house mom’s who need to complete
heavy-duty cleaning tasks. Mothers are not the only market that can benefit from bleach. Expanding the
target market into places that express need for extreme cleanliness, such as, restaurants,car shops, and
cleaning companies would increase market share. Educating the market on how using bleach can create a
sustainable environment will only make Clorox’s brand image more positive. By having a positive image,
Clorox’s target market will expand greatly with such moves towards sustainability.
Positioning
Clorox will take an offensive positioning strategy when it comes to the megatrend known as
sustainability. With our Brita products specifically, we will continue to position them as the sustainable
alternative to bottled water. As society becomes more and more concerned with the environment, we will
continue to advertise how many bottles just one of our products can prevent from being thrown in a land
mine. With increased advertising along with more public relations we hope society will see Clorox’s
efforts to be one of the best regarding corporate social responsibility. While working on corporate social
responsibility, we will continue research and development into new product categories to grow the Brita
filtration business and remain ahead of the curve when it comes to sustainability.
Pricing
Because of the benefits that Brita,which includes: better tasting water,cost savings, and positive
environmental impacts, we believe that this product should sell at a premium. If Clorox can effectively
communicate the benefits of Brita to consumers, they will see the value in this technology. While the
costs of purchasing a Brita filtration system are initially more than purchasing a case of bottled water,the
long-term cost savings will make up for the initial cost. Consumers will also receive higher quality water
as well. Using this product will cost only $0.19 daily per user versus $1,748 annually of purchasing
bottled water daily. Even after charging a premium for this product, it will essentially pay for itself in cost
savings.
Promotion
Brita’s filtration system promotions have been very successful. We would like to continue
educating consumers on how much one of our products can save the environment, save energy costs, and
the great taste without the waste. We would like to continue our PR partnership with Nalgene and their
reusable beverage containers, as well as other relevant manufacturers once our product category grows.
Overall we would like to allocate 60% of Clorox’s total promotion budget towards it’s sustainable
products and PR relating to corporate social responsibility, leaving the other 40% for their more mature
brands. Through allocating more of our resources towards our Brita products and other sustainable
products, we should see an increase in sales following this advertising budget increase.
Distribution
Brita has the opportunity to expand but with expansion comes new distribution channels and
manufacturing processes. We would like to see the pour-through and on the go water filtration systems be
sold in stores such as Walmart, Target, and a variety of department stores. We would like to include
Brita’s on the go and pour through systems in department stores because they carry a variety of home
goods products. Currently, Clorox already has ties with a few large mass merchandising stores, so
bringing in this product would just need another delivery system from the Brita manufacturing plant to
the stores. Another option would be to bring the pour-through and to-go systems into health conscious
and eco-conscious stores such as Trader Joes or Whole Foods. The pour-through filtration systems have
the potential to increase sales for Brita due to the sustainability of clean water. For the commercial
filtration systems, most will be sold directly through the Brita company. The company will work with
other businesses such as schools, government departments and workplaces to have the systems installed
by Brita professionals. We would also like to see some smaller commercial systems sold in home
improvement stores such as Lowes, Home Depot or Menards. Including the systems and repair parts in
6. Bolf, Borgerson, O’Brien, Sather, Whetter 5
these stores will allow for small business and homeowners to install a Brita filtration system without
working directly with the company.
From a manufacturing standpoint, the Brita factory would need to expand its staff as well as its
space and production lines if they are going to be making more products. The manufacturing plant for
Brita already exists so there is no need to build anything new or build a second plant, just expand on what
they have in order to keep up with the new production needs.
Product
We want to keep Brita’s main interests in pour-through water filtration systems. The traditional
Brita products should see visiting in product variety, offering more appealing alternatives for the point-of-
entry market. This means smaller pitchers that are more suitable for college students’ fridges. These
products also need to be more cost effective since the college demographic is less likely to pay a premium
if there are cheaper substitute products. A product that can effectively appeal to the self-replenishing
college psychographics will show continuous, or at least sustainable, growth for the brand.
Another product segment worth investing is “on the go” products. With the health craze and
sustainability trends taking over, consumers are carrying around more reusable water bottles than ever.
Already having a foot in the door by teaming up with Nalgene, Brita is set up conveniently to take
advantage of this opportunity. We do not predict “on the go” products ever being Brita’s main income
stream,however we do believe a compact and fast filtering product shows a worthwhile ROI. On the go
Brita products can also play as a transition for consumers to start using Brita’s home line of pour through
systems.
The last product segment Brita should focus on is commercial systems. As schools, government
departments and businesses strive to be more sustainable, there is a blue ocean for products that can
deliver sustainability. This opportunity is worth the attention. Brita should up its ante and establish itself
in commercial systems with a water fountain and tap water extension that filters water and promotes the
use of tap water over bottled water. A big part of the success in this product segment will be in the
promotion because it will be key to educate consumers,including businesses, on the advantages of using
Brita ad-ons on water fountains and faucets.
Evaluate the Decision Process
We thought this case was hard because it had a lot of information to take in. There were so many
Clorox products included on the case we didn’t know where to start. The case touched on so many
products that we debated on what we wanted to focus on. We agreed that it would be impossible to take
on all the products Clorox offers. At first we decided to expand in all three of Clorox’s sustainable
product categories including: Green Works, Burt’s Bees,and Brita. After further discussion we decided to
go into Brita because its opportunity for growth and that its products follow the sustainability trend.
Overall, this case was difficult and we are nervous to see how the class discussion turns out because we
think every groups options will be different.