Clorox Green Case
1) Clorox chose to develop a new brand instead because they noticed in its market segmentation it identified a portion of the consumer market being “chemical avoiding naturalists,” who were a group of consumers who wanted greener cleaners and wanted a brand they knew and trusted as well as not being too expensive. They stuck with the Clorox name because they knew consumers wanted a brand they knew and trusted to work effectively. These consumers’ preferences really brought the whole idea into action and in January 2008 Clorox launched Green Works. It was a line of naturally sourced cleaning products that chemist had been experimenting on for years but never had really been brought into effect. Clorox really saw success in this internally developed brand because at the time they had recently refocused their mission on “leveraging environmental sustainability for top line growth,” this was a start in the right direction. 2) Clorox attempt to steal market share was pricing the Green Works cleaners at ten to twenty percent above traditional house hold cleaners yet lower than similar products from Seventh Generation. This price strategy really gave consumers who were hesitant on the green products and incentive to buy it, and paved the way for an increase in demand. In its first year the sales of Green Works far surpassed the expectations they had for their product. 3) Clorox really helped grow the green market because in the first year of it hitting the shelves it captured forty percent of the market for green cleaning products, way more than anticipated. They are bringing so much attention to Americans on educating them on being more sustainable. Method and Seventh Generation CEO’s were not at all that upset because they were not losing market share and they both felt that new competitors are what you need to help this specific category grow. I agree with Method and Seventh Generation, because to become more sustainable you...
Please join StudyMode to read the full document