Clorox Case Analysis
THE WAY FORWARD
Recommendations for Leveraging Sustainability and Optimizing Existing Green Lines
Instructor: Kim Bates Course: Integrative Weekend – W2012 Date: March 4, 2012 Consultants: Deborah Sue Chee Eva von Biehler Mehdi Tahuri Serhiy Rudak S.Mehmood Ul-Hasan Vern Puchoon
Executive Summary In the face of consumer changes and current economic conditions, Clorox must make several key decisions regarding resource allocation and strategic focus across its product divisions. Specifically, there has been a strong focus since 2006 on product sustainability and green initiatives. As such, Clorox needs to determine if this is the right strategy to pursue for the long-term and if it needs to be green organization-wide, not just toward a few products. In recent years, many changes have been made to start shifting public perception of Clorox toward being an eco-friendly supporter. Due to this strategy and consumer trends, Clorox should stay the path of being an eco-friendly, green organization. Current consumer preferences support the notion that green sustainability is a megatrend, not a passing fad. To achieve the Centennial Strategy goal of double-digit profit growth in 2013 and to implement green initiatives and best practices across all Clorox product divisions, small changes in strategy and an increase of approximately $18 million in marketing and advertising needs to happen in the short run. The tweak in strategy will open new growth opportunities in other consumer segments, which will allow Clorox to capitalize on consumer trends and increase revenue. Advertising will support and educate these new segments and is based on the original advertising campaigns that were launched for these divisions in previous years. Research and development will continue in the medium and long run to ensure Clorox innovates products and takes advantage of growth trends outside of the domestic U.S. market. Implementing the “Clorox Clarity” program will centralize resources
Recommendations for Leveraging Sustainability and Optimizing Existing Green Lines
Instructor: Kim Bates Course: Integrative Weekend – W2012 Date: March 4, 2012 Consultants: Deborah Sue Chee Eva von Biehler Mehdi Tahuri Serhiy Rudak S.Mehmood Ul-Hasan Vern Puchoon
Executive Summary In the face of consumer changes and current economic conditions, Clorox must make several key decisions regarding resource allocation and strategic focus across its product divisions. Specifically, there has been a strong focus since 2006 on product sustainability and green initiatives. As such, Clorox needs to determine if this is the right strategy to pursue for the long-term and if it needs to be green organization-wide, not just toward a few products. In recent years, many changes have been made to start shifting public perception of Clorox toward being an eco-friendly supporter. Due to this strategy and consumer trends, Clorox should stay the path of being an eco-friendly, green organization. Current consumer preferences support the notion that green sustainability is a megatrend, not a passing fad. To achieve the Centennial Strategy goal of double-digit profit growth in 2013 and to implement green initiatives and best practices across all Clorox product divisions, small changes in strategy and an increase of approximately $18 million in marketing and advertising needs to happen in the short run. The tweak in strategy will open new growth opportunities in other consumer segments, which will allow Clorox to capitalize on consumer trends and increase revenue. Advertising will support and educate these new segments and is based on the original advertising campaigns that were launched for these divisions in previous years. Research and development will continue in the medium and long run to ensure Clorox innovates products and takes advantage of growth trends outside of the domestic U.S. market. Implementing the “Clorox Clarity” program will centralize resources