Winning in Desire, Decide, and Delight -...
Transcript of Winning in Desire, Decide, and Delight -...
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Winning in Desire, Decide, and Delight
Larry PeirosExecutive VP andChief Operating Officer, North America
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Centennial Strategy – June 2009
We make everyday life better, everyday
Maximize economic profit across categories, customers and countries
Be best at building big-share brands in economically-attractive midsized categories
• 3% to 5% Sales Growth
• EBIT Margin Growth +75 bps to +100 bps
• Free Cash Flow of 10% to 12% of Sales
Double-Digit Economic Profit
growth Be a high-performance organization of enthusiastic owners
Win with superior capabilities in Desire, Decide and Delight
Accelerate growth both in and beyond the core
Relentlessly drive out waste
ANNUAL GOALS STRATEGIES
MISSION
OBJECTIVES
ANNUAL GOALS
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Win with Superior Capabilities in 3Ds
DESIRE DECIDE DELIGHT
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3D Levers Drive ValueDeliver Against Affordability
Price
PerceptionProduct
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DESIRE
Good Progress Against 3Ds Tactics
Implemented Integrated Marketing
Communications
Strong investment in advertising
Hispanic
PackagePR
Promotion
TV
On-line
Integration
$0
$100
$200
$300
$400
$500
FY09FY08FY07FY06FY05
INTEGRATED COMMUNICATION ADVERTISING SPENDING
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DECIDE
Cannondale Top 10 PoweRanking
Grocery stabilized with incremental
resources
Good Progress Against 3Ds Tactics
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DELIGHT
Good Progress Against 3Ds Tactics
Increasing % of Sales with 60/40 Wins
0%
10%
20%
30%
40%
50%
FY09FY08FY07FY06FY05
44%
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Impact of Pricing
• Commodity cost increases of nearly $600MM over last 5 years
• More than 50 price increases taken
• Almost 2/3 of portfolio impacted
• Key brands, like Glad Trash and Clorox Liquid Bleach, had multiple price increases
• Shares stable despite price increases
Made right investments to offset impact of pricing
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Shares Stable
Total Clorox Categories - US
24.5% 24.4% 24.1%22%
24%
26%
28%
30%
Apr-07 Apr-08 Apr-09
52 Weeks Ending
$ Sh
are
27.5% 27.3% 27.3%
All Outlet
Tracked Channels
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Looking Forward: New 3D Focus Area
DESIRE
Drive integrated
brand growthideas
DECIDE
Leverageshopperinsights
for assortment wins
DELIGHT
Deliverdecisive product
wins
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New 3D Focus Areas
DESIRE
Drive integrated
brand growthideas
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Brand Growth Idea
Consumer Insights
ExternalFactors
Consumer Megatrends
CompetitiveFrame
Drives brand AND CategoryFocuses all brand-building efforts
GROWTH IDEA
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+15%
Vegetable Consumption
(2) Vegetable consumption when HV Ranch on the table
*Source: University of California at Davis Expanded Food and Nutrition Education Program school study
Growth Idea: Hidden Valley®
Broaden use to all salads and vegetables becauseHidden Valley makes vegetables taste great
VegetableConsumption
Chronic Disease,Obesity
(1) Need for Veggies
67% 33%
(3) Consumer Preference
>
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Growth Idea: Hidden Valley®
Television Advertising
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Magazine Advertising
Growth Idea: Hidden Valley®
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Growth Idea: Hidden Valley®
Public Relations
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Results have been very strong• Maintained premium pricing
• Share of salad dressings +1.2 points*
• Record volume
• Record sales
Growth Idea: Hidden Valley®
* Source: IRI US FDKT P52WKS Ending April 2009
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Transform tap water for healthier, great tasting water that is better for you (health & value) and
the environment.
Growth Idea: Brita®
(1) Brita removes lead and other impurities
(3) One Brita filter eliminates the need for 300 bottles
(2) Only a pennyper glass
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Growth Idea: Brita® Commercials
Where you live - Advertising At the Gym Advertising
Value Advertising
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Growth Idea: Brita®
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Growth Idea: Brita®
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The Growth Idea has driven growth!• Category consumption up 10%*
• Record volume
• Record sales
Growth Idea: Brita®
* Source: IRI US FDKT P52WKS Ending April 2009
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Growth Idea: Clorox® Home Care
Technical Expertise
Increase disinfecting occasions with superior cleaning products that prevent family illness.
(1) Serious Consumer Need
80% of germs are spread by touching
surfaces
Powerful Brand
Highest ratedbrand on
“killing germs”
(2) PowerfulBrand
"Bleach has savedmore lives than any
other substance madeby man."
(3) TechnicalExpertise
Former President, AmericanPublic Health Association
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Growth Idea: Clorox® Home CareCommercials
TV AdvertisingGeneral Market
TV Advertising Hispanic
TV Advertising ‘Truth About Bleach’
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Growth Idea: Clorox® Home Care
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Mata 99.9% de virus y bacterias, incluyendoel virus de influenza humana (A H1N1)
Mexico
Costa Rica
Growth Idea: Clorox® Home Care
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Results have been strong
• Clorox disinfecting +7% CAGR past 4 years
• Surpassed Lysol as leading disinfecting brand
• Driven significant international growth
Growth Idea: Clorox® Home Care