Clorox Green Works

Situation Analysis

ADV 3312

Jessica Reed

Amanda Rodriguez

Product

Clorox has made a line of products simply named Green Works, which clean

powerfully without harsh chemical fumes or residue. The main goal for the Clorox

Green Works team was to find a formula that was natural, affordable and worked

great. At the time there was no industry standard for natural products, so Clorox

took a look some existing definitions:

Made with plant- and mineral based cleaning ingredients.

Come from biodegradable ingredients that are naturally derived.

Not tested on animals.

Use environmentally sustainable packaging whenever possible.

Are acknowledged by the EPA’s Design for the Environment program.

Green Works products range from multipurpose, bathroom and toilet, glass,

dishwashing liquid, laundry detergents, and stain removers. The chemicals used in

the formula are not just environmentally-friendly, but the bottles and the cleansing

wipes are also biodegradable.

Background

Green Works knows that mothers are looking for ways to live a natural lifestyle.

This was very important for the Green Works team being environmentally friendly

mothers themselves. Green Works made it their mission to help achieve this goal.

Green Works was launched in January 2008 to appeal to the mothers that are more

conscious of the chemicals that are in products they use around their children and

in their home. The success of their product single-handedly grew the natural

cleaning product market by more than 80% in one year. Green Works has always

been upfront about the non-toxic chemicals used in their product and keep their

ingredients online for the consumer to read. The Clorox Company launched its

innovative Green Works line of natural household cleaning products in early

2008. In an attempt to overcome the obstacles of skepticism due to

products being labeled as green, sustainable, or natural often were less

effective and cost significantly more than their traditional counterparts. The

Clorox Green Works line is the first family of natural cleaning products

introduced by a major consumer packaged goods company.

Geography

Clorox’s Green Works is a nationally distributed brand that is sold in large

retail stores in the country. Depending on what is going on in the city or

state, Green Works could be advertised locally or regionally, but it will

always remain as a national seller.

This particular campaign will focus on, Clean Up the World, which is a

community-based environmental campaign that inspires and empowers

communities around the globe to clean up, fix up and conserve the

environment. This event is celebrated on the 3rd weekend of September each

year.

Green Works has been very supportive with environmental causes. On Earth

Day in April 2013, Green Works donated a dollar to the Environmental Media

Association’s school garden project. This campaign will go beyond a

monetary benefit and will help a college community create a “Bottle

Garden”. This will emphasize the importance of using items that you

currently have available. There is no need to go out searching for some ultra

clean expensive pot when Green Works bottles are biodegradable.

Consumer

The target consumers for Green Works are college educated married mothers

whose ages range from 25-48. These mothers will typically have 2-5 children that

are young in age. The average income for this two-parent household will range

from $80,000+. The price of Green Works may be a bit more expensive than a

general person may want to pay for a household cleaning product. However, the

Green Works consumer does not mind paying the price for a quality product. It is

not just a quality product, but it is a name brand product as well. This family, the

mother particularly, is looking for ways to live a more natural lifestyle and does not

want to bring harsh chemicals in her house. Clorox’s research shows that that this

consumer’s primary motivation is a belief that some chemicals might be

dangerous to her family’s health and well-being. The female consumer is

motivated by her concern for her family, rather than a generalized desire to

help the environment or to act in a socially responsible manner.

Competition

Major Competitors

The Simple Green

o Began over 30 years ago, long before “environmentally

friendly” products were mandated by law. Bruce Fabrizo

and his father developed a safer alternative to the toxic

cleaners. It took them three years to perfect the

biodegradable, non-toxic, non-flammable and non-abrasive

formula. However, the products do not seem to be

antibacterial or disinfectant. The Simple Green has at least

two choices of multi-surface and all-purpose cleaners.

Method

o One of the fastest growing private companies in America

and single handedly turned the consumer-packaged-goods

industry on its head. Method is beginning to sell its

products in major retailers and is slowly catching up in

market share next to Green Works.

Seventh Generation

o Seventh Generation has teamed up with CleanWell

Company and produced a disinfectant line that is built

with CleanWell Patent Disinfecting Technology.

Procter & Gamble

o P&G does not have specific green line, but the company

has made a goal to reduce packaging waste as opposed

to formulating new products. There is also indication that

shows that P&G is working safer formulas into their

product but not necessarily green and clean formulas.

When Clorox launched Green Works in January 2008, it was the first of its kind.

Clorox became the first major consumer products firm to launch a line of

environmentally friendly cleaners. Before that, green cleaners were limited to

smaller companies. Just eight months after its introduction, Green Works sales

were well over $40 million, outselling all other products in the green cleaning

brands. Green Works first plant-based detergent and stain remover were released

in 2009. The success of their product single-handedly grew the natural cleaning

product market by more than 80% in one year by selling Green Works through

their current distribution chain in more than 24,000 stores alongside their regular

household cleaning products. Clorox really benefited from the support from large

retailers such as Wal-Mart, which gave Green Works some of its visible shelf space.

However, Method and Seventh Generation are slowly adding their products into

small and large retail stores. Clorox put more effort into formulating products made

from 99% natural, non-petrochemical ingredients, rather than just calling their

product clean with a fake label. The main winning point for Green Works is that

Clorox decided to keep their name on the new line to defuse consumer fears that

green products would be less effective at cleaning. When the consumer thinks

about Clorox, they think of bleach and tough fight cleaning products. With the

name still on the product, this ensures brand loyalty, and consumers are more

trusting of a product that has already proven its cleaning ability. Another benefit

that Green Works has above the others is that it is under a bigger name company.

There are coupon opportunities available online at the products website as well as

its retailers.

Unfortunately, within the last year Clorox has seen its profit from Green Works fall.

The fact the price of Green Works is significantly higher than the traditional Clorox

brand has not resonated well with consumers. Green Works may still be on top, but

smaller brands are closing the gap.

Marketplace

Clorox Green Works became the top selling line of natural cleaners in 2009 with a

42% market share of the total market, generating $200 million in revenue

annually.

Natural Products

Green Works

Procter & Gamble

Seventh Generation

Method

Other

Previous Advertising

Starting January 2013, Green Works has begun major changes in the product

design, marketing strategies and even its target consumer. Clorox’s contract with

the Sierra Club expires in December its logo has appeared on all of the packaging

but will be eliminated with the new makeover Green Works will be receiving. Clorox

is deciding to go after conventional costumers at a lower price point. Clorox has

lowered its price from its price premium that was 20% higher than the average

cleaning product and to put it with the Clorox portion of the cleaning products

instead of the green section. The goal is that the more traditional consumer will be

willing to try the product to see if they like it. These new changes will be phased in

during the summer of 2013. The target consumer has now been changed to

mothers, 18-49, that are very tech savvy. The Digital Strategist for Green Works

launched a campaign on Earth Day in April 2013. This was a fundraising promotion

on Twitter to revamp its marketing strategy. For every joke posted on Green Works’

Twitter account starting from Earth Day until the end of May, Green Works donates

a dollar to the Environmental Media Association’s school gardens project. The

tagline for the initiative is, “You don’t have to be serious to be green.”

In January, Green Works introduced a YouTube series called “Green Housewives,”

which parodies the trend of reality shows and people who have made being

environmentally correct a status symbol. In February, Green Works ran a

“Tweethearts” campaign that allowed participants to send environmentally-friendly,

virtual Valentine’s Day cards via Twitter. Then in March, the social media initiative

was a six-second game of charades on Vine for St. Patrick’s Day; its message was,

“You don’t have to put on a charade to be green.” The point of all the social media

initiatives is intended to “help customers become owners of and advocates for the

brand.”

The new Green Works campaign also involves a new Green Works website that was

introduced in January and magazine ads that will be issued out in women’s

magazines during; April, May and June. One headline of the ad will read, “You don’t

have to be perfect to be green,” and another says, “You don’t have to be a trust

fund baby to be green.”

Although the change of look, target audience and adding social media will increase

brand awareness to Green Works, this may not necessarily translate into sales.

SWOT Analysis

Strengths

High brand recognition

Number of leading products and brands in wide range of markets

Strong customer relationship ensures brand loyalty of customer

Strong community presence

Was the first of its kind

Weaknesses

Large dependency on U.S market

Concentrated customers

Has not yet found a natural formula that disinfects

Once a 20% but has now changed to 5% premium but still cost more

Opportunities

Focus on natural/green products

Other potential markets such as China and Latin America

Threats

Introduction of more private brands in household cleaning market

Seventh Generation and Method are closing the gap in market share

Clorox has received warning from advertising agencies for promoting their

products as the perfect cleaners.

Creative Brief

Key fact: When Green Works first came on the scene in 2008, their sales had

surpassed everyone’s intention. Green Works still holds a big piece of the market

share. Customers are brand loyal and Clorox is a trustworthy brand.

Advertising Problem: Green Works has just changed its campaign due to a decline

in sales. Although there is more social media interaction than previous campaigns,

these changes will not necessarily increase the number of sales.

Advertising Objective: The goal is to continue with this new campaign but widen the

age of the target consumer. Not only do we want mothers to continue to buy Green

Works but we would like to also aim for college market. The college market would

respond very well to the new social media initiatives.

Key Consumer Benefit: Even though the consumer may pay a bit more for Green

Works, they will enjoy the multiple social media incentives and gain greater

knowledge on how to interact and get involved in their community. The consumer

will not just help out the community, but also gain a greater self-appreciation that

they are doing a good thing for the environment for just buying a cleaning product.

Target Audience: College educated males and females from 18-25 years old.

Average income $10,000-$40,000. Consumer is more cautious about the formula in

the product rather than just protecting the environment. They are an average

student just trying to make a living, not a show off since they don’t make much

money. Looking for ways to help out but the act doesn’t need to be grandiose.

Competition: Seventh Generation and Method are Green Works’ main green

competition. These two products are known for being cleaner, and they don’t have

“the man” telling them what to do. This is why Green Works is breaking itself apart

from the green line and finding a new approach on how to inform the consumer

that you don’t have to be a snob to be green. Procter & Gamble is also a huge

competitor for Green Works. P&G may not have their own line of natural product,

but they are finding ways to make original products less toxic.

Deliverables: Social media, out of home marketing, and print ads.

Mandatories: Greenworlscleaners.com , Twitter.com/greenworks ,

Facebook.com/Greenworks (for the social media websites, logos will appear instead

of just the web address.)

Creative Strategy

In the beginning, Clorox’s Green Works was positioned as a greener alternative to

the traditional cleaning products. The problem was that while the smaller

companies began to grow and establish a name for themselves, Green Works was

rapidly losing its lead in the market share. The main goal in changing the target

consumer, bringing down the price and making a more interactive social media

involvement will draw the traditional consumer near instead of the current “ultra”

green consumer.

Keeping with the revamped look that Green Works has done, but the target

consumer will also be adjusted to reach college students. Mothers aren’t the only

ones who want a safer product, and lowering the price will allow college students to

afford the product.

The advertising tone will continue with its mockery of the traditional green cleaner

buyer only this time with younger characters. The characters of the advertisements

will be an extreme exaggeration of the consumer, and the ads will have a slight

sarcastic undertone. This goal is to remind the consumer that you do not need to be

an extremist to make a different in the environment or to just buy a product with

no harsh fumes or chemicals.

Media Choices

Media choices Green Works will use are:

Out of home advertising

Social Media

Magazine ads

Out of Home Advertsing

https://drive.google.com/folderview?id=0B9iRiDWf9s7HUThKMC1FNkQ0LU0&usp=s

haring

http://www.sfgate.com/business/article/Clorox-cleaners-take-big-share-of-green-

market-3265692.php#page-1

http://www.greenworkscleaners.com/products/

http://www.erb.umich.edu/News-and-Events/news-events-docs/09-

10/Clorox%20Case.pdf

http://en.wikipedia.org/wiki/Clean_Up_the_World