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 plan helped Clorox to educate, influence and build alliances with customers.

The four global consumer trends that Clorox identified as potential growth areas were health and wellness, sustainability, convenience and multicultural marketplace. The Clorox Company paid attention on two megatrends, health and wellness and environmental sustainability which led to the repositioning of Brita, the acquisition of Burt’s Bees and the launch of Green Works.

In 2007, Clorox hired the Cambridge Group to help research the future trends of sustainability. This research proved that 15 to 30% of the population were interested in sustainability and acted on their interest. Another study showed that one third of the population reported to purchase green products which indicated an upward trend.

Three years into the plan, Clorox reported sales of $5.5 billion which was an increase of $890 million from the start of the strategic plan. Although the Clorox Company experienced increased sales at the start of their new strategy, it wasn’t expected to continue. The company needs to determine how to proceed in marketing their products to meet the financial targets they have established in their “Centennial Strategy” for 2013. Should they...
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