Clorox Case Analysis Essay

5000 Words Oct 17th, 2012 20 Pages
THE WAY FORWARD
Recommendations for Leveraging Sustainability and Optimizing Existing Green Lines

Instructor: Kim Bates Course: Integrative Weekend – W2012 Date: March 4, 2012 Consultants: Deborah Sue Chee Eva von Biehler Mehdi Tahuri Serhiy Rudak S.Mehmood Ul-Hasan Vern Puchoon

Executive Summary In the face of consumer changes and current economic conditions, Clorox must make several key decisions regarding resource allocation and strategic focus across its product divisions. Specifically, there has been a strong focus since 2006 on product sustainability and green initiatives. As such, Clorox needs to determine if this is the right strategy to pursue for the long-term and if it needs to be green organization-wide, not just toward
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This needs to happen in order to use its corporate advantage in sustainability and involves determining which human resource strategies can be used to foster this advantage across its divisions.

External Analysis The future of the U.S. market for household cleaning products is changing and companies are trying to adapt to a growing change in consumer preferences and demands. The consumer is becoming increasingly interested in a greener and more sustainable lifestyles and products. In 2009, “green” cleaners generated $557 million in sales across the country and, by estimates, will generate approximately $2 billion in sales by 2014 (Market Wire, 2010). Another study reports that in 2010 42% of American adults have used a “green” household cleaning product during the year. This translates into approximately 48 million households and $12 per household spent on green cleaning products (MyCompanyPR, 2011). The marketing challenge currently facing companies in the household cleaning industry is how to effectively communicate to consumers the benefits of “green” – efficacy, safety, ease of use and convenience – simultaneously. Yet, as market demand for such products continues to grow and consumers become more interested in green and sustainable lifestyles, the opportunity for companies to increase sales by targeting these segments will only increase. Several factors affect the competitive landscape and the business decisions facing

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