CLOROX Brand Extension

Hetvi VashiPGP30177

Guided by: Prof. Sameer Mathur

pgp30177@iiml.ac.inhetvivashi9@gmail.com

9427630905

About the CompanyLeading manufacturer and marketer of consumer productsHeadquartered in  Oakland, California, U.S.2014 revenue totalling $5.6 billion8200 employees worldwideManufacturing of products in 25+ countries, marketing in 100+ countries

The Brand

Nearly 90 % of the brands are the No.1 or No. 2 market share leaders in their categories

The Competitive Position

In Bleach Category Clorox’s major competition in private label

In categories like home care it’s ahead of a big brand like P&G

It’s the only brand to have such a huge market share. The rest is captured by private label and other small players

The acquisitions of leading brands in respective categories over the years after the inception of the company has helped the company remain the market leader in those categories

From FY10 to FY15 the target is to achieve 3% net increase in the overall sales

Source: 2014 investor annual report

The “BLEACH STORY”

In early 90s- Clorox Laundry Detergent launch failed

TG’s perception about the product

Toilet Bowl CleanerMold and Mildew eaterDrain Cleaner

Toilet Bowl CleanerMold and Mildew eaterDrain Cleaner

The Powerful Bleach effect

Dish Washer Detergent- Takes the finish OffCarpet Cleaner- Takes the colour offOven Cleaner- Toxic fumes, bad for health

Dish Washer Detergent- Takes the finish OffCarpet Cleaner- Takes the colour offOven Cleaner- Toxic fumes, bad for health

The “GREEN WORKS” Story (5% of Clorox’s sales)

• Launch of Green works: the bio-degradable niche brand extension of all-purpose cleaner from Clorox. • Seirra Club branding- Advantage to increase the consumer base –Club members (Attention seeking

phase)• 20% higher price than traditional household products• Green work’s sales increased by more than 50% to $53 million• Green work’s share in the green household industry: 20%

• Consumer-led Recession effect• Sales fell to $32 million• Green work’s share in the green household industry: 13%• Decision to lower the price point removing the 20% price premium• Reduced advertising

• Consumer-led Recession effect• Sales fell to $32 million• Green work’s share in the green household industry: 13%• Decision to lower the price point removing the 20% price premium• Reduced advertising

• Removing the Seirra club logo• New strategy: position as affordable, effective, accessible and approachable• Social Media Campaign to address the TG using Omnicom group spending $10 million• Use of the Earth day and Twitter along with the “you don’t have to be __ to be green” campaign

2008-09

2012

2014

TG: Digital savvy mothers between age group 18-49 who spend a lot of time onlineCurrent market share: 40%

4 Ps

Product• Features of a cleaning agent but

without the harm of bleach• The misunderstanding of the

product turned into advantage by introducing eco-friendliness

• The fresh and Non-allergenic features attracted the most mothers

Price• 20% Premium initially • Effect of Sierra Club • To position in the premium

segment• Had to reduce price because of

recession effect

4 Ps

Place• Available in big retail stores as well

as small street shops like Stop & Shop

• High visibility• Driver to point of purchase

behaviour• Impulse buying behaviour

Promotion• Coupons: Available in magazines

and retail outlets• Advertising in magazines• Media Promotion for dish wash:

Nationally television promotion• National advertising campaign:

Being Safe Going Green

Competitive Frame of Reference For Green Works

POP• Bleaching Effects• Cleans surfaces• Available in different size packaging • Eliminates stains

POD• Made from natural products such as

coconut and lemon• Biodegradable• Hypo-allergenic• Not tested on animals• Non-allergenic• Recyclable Packaging• Eco-Centric

Perceptual Map

Strong Cleaning

Harmless

Weak Cleaning

Harmful

References

• http://investors.thecloroxcompany.com/releasedetail.cfm?ReleaseID=794568

• https://www.clorox.com/products/clorox-concentrated-regular-bleach/

• https://prezi.com/_b0gfclupt3e/clorox-green-works-presentation/

• http://business.time.com/2012/03/14/the-10-best-brand-extensions-ever-according-to-me/slide/clorox-toilet-bowl-cleaner/

• http://www.brandpackaging.com/articles/84317-the-2-secrets-of-brand-extension-success

• http://www.brandextension.org/case1.html

THANK YOU