I. Executive Summary
The Clorox Company is about to enter a new product market by launching a faucet mounted filter system in order to maintain its dominance in the water filtration business. To do this in a successful way, Clorox has to conquer this market with the right entry strategy. Main goal is therefore to gain market share by targeting the right customer segment and make an appropriate marketing investment. Also the previous pitcher market leadership must be maintained.
The biggest impediment is that the Clorox enters an already existing market and the dominant market leader, PUR, has well developed its “PUR Ultimate” system. Moreover Procter & Gamble are about to take control over PUR. It is also likely that the sale of
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In the Exhibit 4 we learn that people between the ages of 18 - 44 years care about the water quality as they raise more concerns about the water quality. The faucet mounted system stands for better water quality, so this segment is likely to have higher interest in the new product. Especially young parents care very much about the health of their children.
Consequently, we can make different kinds of promotion and advertisement. Singles can be attracted by the convenience and crisp taste; young parents by life quality.
Price, Advertising and promotion
We would recommend a price of 34,99$ for the system as the market simulation learned us that unit sales and perceptions are strong. Further we would spend very high advertising ($ 15 million) and high promotion ($ 3 million) to attract approach about 1,205,000 first year unit sales. We want to get into the market quickly and steel m/s. Therefore people need to be aware that Brita launched a faucet mounted filter system.
Distribution channels
Increase new distribution way and increase new retailers.
We find there is no need for launching line of upscale products in the market. So we can offer the new system in mass merchandisers as well as in our grocery stores and club stores where our loyal customers used to find us. We keep on reimbursing retailers
Brita was founded in 1966 by Heinz Hankammer. A German company that specializes in water filtration products. The Clorox Company here in the United States entered into a licensing-and-distribution agreement with Brita in 1988 and soon after acquired the sole rights to the brand in North America but in 2008, Brita returned to the North American market under the brand Mavea. Brita’s products include water jugs, tap attachments and kettles. Brita’s main headquarters are located in Taunusstein, Germany and other than in Germany, the company has major production facilities are in Switzerland and the United Kingdom. Brita’s products are distributed worldwide, reaching more than 60 countries and are sales partners in more than 45 countries. The filtering mechanism that makes Brita’s products so effective is their silver-impregnated activated carbon and ion-exchange resin disposable filters. That means that the filters have a double action force that first the carbon removes substances that may impair taste (chlorine and chlorine compounds) and then the ion exchange resin is used to reduce the carbonate hardness (limescale) found in tap water. This reduces metals that can be found in tap water such as copper and lead.
This report has been prepared for Ginnie Adams of The Bottled Water Company to provide an analysis of the profitability of the new product line and its effect on net income. In analyzing this new product line financials statements such as: Sales Budget, Production Budget, Direct Materials Budget, Direct Labor Budget, Selling and Administrative Expense Budget, Cost of Good Manufactured Budgeted Income Statement were used. Net income has been computed through the use of the Budgeted Income Statement and enabled the additional calculations of Cost of Goods Sold Ratio, Gross Profit Margin Ratio, as well as, Profit Margin Ratio. The conclusions drawn from the data analyzed shows that Bottled Water Company has drawn a Net Income of $53,959.
The print advertisement by BYS correlates strongly to this target market due to the depicted strong and bold colours used, this would grab the attention of young females due to the
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Developing materials and interventions that are tailored to a specific target audience can help ensure that the messages appeal to that subgroup and will likely spur the behavior change/product use. For this social marketing campaign, the target audience is sexually active men and women ages twenty-one through thirty-five. Another aspect of the target audience is that they are active members in the dating scene. As a result, all promotion methods, materials, and interventions will be designed with this target audience in mind.
In recent years Clorox’s primary products have reached maturity & it has spent heavily on acquiring, R&D, manufacturing, marketing of sustainable but not too profitable products. The growth rate of green products has slowed down lately however potential for such products stays strong. To expand and survive in the marketplace the company needs to reinvent and look at building a long-term competitive position by focusing on consumer megatrends of health, wellness and environmental sustainability, which is also the aim of its centennial strategy. The main issue is whether Clorox should continue to leverage growth around it sustainable products or focus on just lowering costs and increasing profitability in the short term.
Many of FII’s direct competitors (Sanitherm – 3% of MBR market, Enviroquip – 30% of MBR market in NA) have already invested in MBR’s. FII would lose its competitive advantage if they decided to not invest in MBR’s, which, in return, would cost FII customer and brand loyalty.
Challenge #1: Brand Reposition One of the biggest struggles The Clorox Company had to go through is to figure out how to get the consumers to starting seeing “Clorox” as a “green” company. After decades of producing the strong and powerful bleach, Clorox is misunderstood of being chemically harmful. The ever growing green trend has led the consumers to become more aware of their actions and wrongful assumption will directly affect the purchasing behaviors. Not only the ingredients in Green Works concerns the consumers, but also the relatively more expensive price of the products influence buying decisions.
Many people have to read about some of the advertisement and persuasion way to educate themselves. While there is a lot of advice and explains how they are work in our daily life, and how marketing employ use it to convince people. It is hard to do it because it is not easy to have the experience for how could you persuasion on people to buy, or how to advertise things, but with some of the ways on this article that can lead you and help you to learn more. At the same time you could take some background on the advertisement, and ways to persuasion on people. This article collect the best parts in ways to advertisements and how to persuasion on people and put those in frame work. This framework helps people who want to know about this section
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
The original water filter company (The first in the industry) - Brita was the first company to introduce such a filtration system into the American homes. The fact that it was among the early players in this industry has added a sense of authenticity to its image and this will be positively reflected on the ongoing business processes.
One of the most luxurious and exquisite brands in the world of faucets and bathroom fittings is Delta Faucets. The branding of Delta has been a very remarkable process – it targets the highest niche of the market with its products that have the highest finish and technological innovation. It is compelling to think how technology could be introduced in bathroom fittings and faucets. Delta faucets are embedded with technologically innovative ideas and thus are distinctive in nature from all of its competitor products.
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
A lack of experience in business-to-consumer marketing is apparent in Soren’s current communications to end-users. This market, unlike the market for commercial-use chemicals, emphasizes the use of clarifiers to ensure “perceived cleanliness” and clarity of water. The consumer market also appears to be minimally price-sensitive, as communications regarding annual savings are relatively ineffective in increasing sales of Coracle. Soren’s marketing efforts in the first half do not fall in line with the demands of their new customer. A pull strategy would involve adjusting communications to speak more directly to the very different concerns that pool owners and service