In recent years Clorox’s primary products have reached maturity & it has spent heavily on acquiring, R&D, manufacturing, marketing of sustainable but not too profitable products. The growth rate of green products has slowed down lately however potential for such products stays strong. To expand and survive in the marketplace the company needs to reinvent and look at building a long-term competitive position by focusing on consumer megatrends of health, wellness and environmental sustainability, which is also the aim of its centennial strategy. The main issue is whether Clorox should continue to leverage growth around it sustainable products or focus on just lowering costs and increasing profitability in the short term. Alternatives considered:
- Clorox could give up the green strategy, as this is an expensive strategy and not one to give short-term returns and focus entirely on leveraging the primary products further to countries outside the U.S to fuel profits and expansion. - It could continue with its brand Brita but divest from Burt’s Bees and Greenworks as Brita has already been established as a leader in its segment and as a cost effective environment friendly alternative. This position could be further pushed to accelerate growth and market share within the sustainable yet profitable space. - Also, it could continue investing in and developing its sustainable brands as this is where the future lies. This is what will set Clorox apart from its competitors and has the potential to make Clorox a strong player in the long term.
In my opinion, Clorox should continue to leverage green for growth however not let the increased focus distract them from increasing sales, revenues and market share. I recommend revamping the existing marketing mix around the sustainable products since clearly the three year old marketing program was not very successful as the product awareness could not achieve a long term position. The products were seen as ‘fads’, not as...
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