CLOROX Brand Extension
Hetvi VashiPGP30177
Guided by: Prof. Sameer Mathur
[email protected]@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
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