Essay on Clorox Case Study
This market study was based on the well-established Clorox Company which had originally started in 1913. In 2006, after the placement of the new CEO, the company had developed a strategic plan to position them for their 100th anniversary in 2013. The plan was titled “The Centennial Strategy” which focused on long-term accelerated growth and developed metrics to measure the success of the plan. The plan focused on accelerated sales growth which would come from extending existing brands to adjacent categories, entering new sales channels with its existing brands and increasing penetration in countries where Clorox already did business. The Clorox Company developed a “3D” structure consisting of desire, decide and delight. This …show more content…
Despite the early success of the Centennial Strategy, the Clorox Company sales were projected to be flat for the upcoming year. Clorox management needed to regroup and/or reposition the company in order to meet their financial targets. The company needed to address whether the growth they had experienced early on in the plan was just a fad that was fading or if the trend to environmental sustainability would continue to mature.
The Clorox Company’s focus on health and wellness and environmental sustainability revolved around the repositioning of Brita, the acquisition of Burt’s Bees and the launch of Green Works. The resources Clorox put into this strategy took away from their core products which accounted for 90% of Clorox’s total revenues. In analyzing Exhibit 5b of the case study, there were high ratings in the efficacy, cost effectiveness, and convenience categories. The categories that revolved around health and environmental sustainability didn’t register at having high impact as one might think.
The Clorox Company’s repositioning of Brita – “In Me” proved to be a success in the health and wellness and sustainability trends but this product only accounts for 4% of Clorox’s total sales. The company’s partnering with Nalgene, a manufacturer of reusable beverage containers, launched them into a positive sustainability initiative but sales slowed