Clorox Case Study

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Summary 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…
Also, during times of recession, customers typically focus on saving money and not on sustainability issues. The Clorox Company’s acquisition of Burt’s Bees in 2007 allowed the company to expand into a natural product business platform which fit into their Centennial Strategy. This product line though was marketed as a stand-alone product and was not associated with the Clorox brand name. Based on Exhibit 9 of the market study, the market share that Burt’s Bees held was 7.9% which was only 2.3% shares away from the market leader Aveda. Even though this product line was ranked #4 in the natural personal care brands, it only accounted for 4% of Clorox’s total sales. As pointed out with Brita, sales soften in this category during times of recession. The launch of the Green Works brand allowed Clorox to stay in their core product line of cleaning supplies while targeting the sustainability sector of the market. The company has experienced success with awareness and repeat customers in the trial runs of this product line but Clorox has not penetrated enough of the market to increase market share. This product category fits Clorox’s Centennial Strategy of existing brands to adjacent categories. Possible Solutions There are several areas that Clorox could improve and/or change to overcome its current challenges so that they will be in a better position to meet their strategic plans
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