Case Analysis: Best Buy
Clorox
Leveraging Green for Growth
Executive Summary
As part of The Centennial Strategy, proposed by the company CEO Don Knauss, Clorox has continuously strived to become a leader in creating sustainability product. Through both internal development and acquisition, it had established environmentally friendly products that can be use around the user environment. Despite their early stage success, most of these products have struggled to maintain the growth rate and attracting new consumers. The root causes are the deteriorating economic and the lack of information on their products. The combination of the high price and the lack information discourage base and new consumers to try their new sustainable products. As a result, consumers are less willing to sacrifice efficacy, price and availability of their traditional products for those sustainable ones.
Despite the drawbacks from high pricing, economic recession, low trial rates and uncertainty of their new environmentally friendly products efficacy and safety, Clorox should continue to invest and build brand image for sustainability products. Recent research from Cambridge research and Clorox indicates positive correlation between environmental concern and its impact to users purchasing decision. People are becoming more aware and are more influenced by the subject. Consumers, in good economy, are concern about price, quality and also the benefits that their environment receives from the products they are buying. Thus it is important for Clorox to maintain its leadership and at the same time invest more to explore on the opportunity of introducing innovative adjacent products to capture other segments of the market.
As a recommendation, Clorox will need to clearly separate the brand and the market segment and narrow down its focus. For Brita, it should focus on the core competencies and develop innovative products to minimize the gap for new entry. Along the same line, Burt’s Bee should
Leveraging Green for Growth
Executive Summary
As part of The Centennial Strategy, proposed by the company CEO Don Knauss, Clorox has continuously strived to become a leader in creating sustainability product. Through both internal development and acquisition, it had established environmentally friendly products that can be use around the user environment. Despite their early stage success, most of these products have struggled to maintain the growth rate and attracting new consumers. The root causes are the deteriorating economic and the lack of information on their products. The combination of the high price and the lack information discourage base and new consumers to try their new sustainable products. As a result, consumers are less willing to sacrifice efficacy, price and availability of their traditional products for those sustainable ones.
Despite the drawbacks from high pricing, economic recession, low trial rates and uncertainty of their new environmentally friendly products efficacy and safety, Clorox should continue to invest and build brand image for sustainability products. Recent research from Cambridge research and Clorox indicates positive correlation between environmental concern and its impact to users purchasing decision. People are becoming more aware and are more influenced by the subject. Consumers, in good economy, are concern about price, quality and also the benefits that their environment receives from the products they are buying. Thus it is important for Clorox to maintain its leadership and at the same time invest more to explore on the opportunity of introducing innovative adjacent products to capture other segments of the market.
As a recommendation, Clorox will need to clearly separate the brand and the market segment and narrow down its focus. For Brita, it should focus on the core competencies and develop innovative products to minimize the gap for new entry. Along the same line, Burt’s Bee should