Executive Summary: Decreasing revenue for our Green Works product line puts us in a conundrum. Do we continue pouring advertising dollars into a product with a majority market share but unimpressive returns, or should we stop, thus sacrificing our desirable position in a market with massive growth potential?
Strategic Alternative One: Market Green Works extensively.
Relevant Facts:
53% of consumers expressed desire to switch to eco-friendly products as of 2007. In today’s more environmentally conscious culture, that number has probably increased.
A year after launch, Green Works had the largest share of the eco-friendly market (42%) due to the ethos of the Clorox brand, and the quality and price of the product.
Now that the recession is over,
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With our projected declines, investing in Green Works may not be the smartest investment decision.
Strategic Alternative Three: Discontinue Green Works and stop marketing.
Relevant Facts:
Clorox is a massive company and home care products make up 17% of our brand portfolio; Green Works is a small fraction of that 17% (Exhibit 4).
Green Works makes $2 billion in revenues.
There are other strong, well established competitors in the segment.
Main competitors (Seventh Generation, Method) are not producing competitive ads.
Pros:
Having or losing Green Works as one of our brands will not make or break our portfolio.
Terminating this product will free up funds to market and/or invest in other products.
Allows us to invest more in products with immediate returns (i.e. Clorox Bleach).
Cons:
Discontinuing Green Works reflects poorly on our responsible and eco-friendly image.
This will definitively cut out a huge potential for market growth.
We lose our 42% market share in a segment with growth potential.
We would miss an opportunity to take advantage of a market in which our main competitors are not being very competitive.
We would lose $2 billion in terminating Green
The only green America has ever really cared about is cold hard cash. If we look at the history of the United States it was a country that started out with little more than rural land that people would seek to protect to ensure a happy life. After a century of independence there began an exposition where “machinery was the focus” (Divine, Breen and Fredrickson) setting off the United States into a feverous need for industrial development and economic growth. We added a railroad as the nations first big business and industrial empires were built on steel and oil and soon Henry Ford joined the picture with the mass production of cars in factories. What the world had begun creating was what they believed to the foundation of a more leisure filled
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Today going green and fighting for cleaner resources and land is a big debate in Gatesburg. It is a long battle that can never be won, however the importance of how we treat our Earth is beyond comprehension for some though. I choose to go green. The benefits outweigh the costs.
“going green” initiative but not taking in to consideration all of the portions of this recycling facility that would need extra attention along with utilizing other resources and in turn causing more use of the financial portion of the business.
Cornelissen, G., Pandelaere, M., Luk, W., & DeWitte, S., (2008, February). Positive Cueing: Promoting Sustainable Consumer Behavior by Cueing Common Environmental Behaviors as Environmental. International Journal of Re
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Additionally, on a socio-cultural level, many consumers feel that restaurants partaking in green initiatives and operations are doing their part to not only help sustain the earth but also to conserving natural resources (Hu, Parsa & Self, 2010). “Going green” is not simply a trend in the food service industry but around the world and in all forms of business. Corporate companies consider “going green” as a sensible business strategy in building recognition for corporate social responsibility among consumers concerned with environmental conservation efforts. Lastly, technological initiatives such as Energy Star appliances (dishwashers, refrigerators, ice machines, etc.) and faucets that use less water must also be analyzed in their ecological conservation capability and weighed against their financial costs (University of Notre Dame, 2014).
On your weekly trip to the supermarket it’s easy to find a number of products, from coffee to dishwashing soap, that flaunt their green attributes” (American Psychological Association, 2010). With such rumors of greenwashing, consumers are more confused than ever. However, some consumers know the tricks and are coming to find that there are companies whose marketing practices are legit, not exaggerated or deceiving. APA also found that, “people are willing to spend more of their hard-earned green on green products, according to a 2008 survey of 9,000 adults performed by the global business firm Boston Consulting Group” (American Psychological Association, 2010). Consumers who are willing to pay more for a product or service are assuming that they are purchasing a healthier, safer, and better quality product or service for the environment.
The best 'green ' customers are people with more money to spend. As a result, the most promising products for 'greening ' tend to be at the higher end of the market. The most promising outlets for green products are retail stores frequented by better-off shoppers.
The launch of the Green Works brand allowed Clorox to stay in their core product line of cleaning supplies while targeting the sustainability sector of the market. The company has experienced success with awareness and repeat customers in the trial runs of this product line but Clorox has not penetrated enough of the market to increase market share. This product category fits Clorox’s Centennial Strategy of existing brands to adjacent categories.
The cleaning supplies industry has had a long and infamous reputation of producing either a toxic product that got the job done or a green product that didn’t do much. Method Products was the first in its industry to break the norm and create a product that works for us, and our planet at the same time. Their innovative cleaning products combine aesthetic designs, aromatic fragrances, and non-toxic ingredients in order to attract the consumers at large [Eng, Dinah]. Method Products has most definitely positively impacted the earth by leading by example in the cleaning supplies industry.
What seems to be the trend in today’s market and what some are already practicing is the “green” life style. There is a need to create a product that can adhere to this lifestyle in a way that helps the planet, can be done safely and in style, with effortless routine, while clearly stating that you are contributing to the “green” way of life. Environmentalism, which is associated with the color green, is a broad philosophy and social movement which is centered on a concern for the conservation and improvement of the environment (Wikipedia, 2009). This movement is
People are taking more and more consideration on environmental stuff. H&M has done quite well in sustainable improvements. (Activities about this are shown in the appendix.)
Tthe Sunnyside corporation was founded in 1893 by Henry Lueders 1 . For over 100 years, the company has strived to provide eco-friendly products to consumers. Their product “green envy” is a paint thinner2 that strives to keep the air clean with less emissions and increased safety through limited flammability and lowered toxins. Everyone wants their home to look nice, even environmentalists, and this is the product that manages to accomplish the best of both worlds. It thins paint to give any surface a slick, clean look while simultaneously keeping pollutants to a minimum. Under normal circumstances, this product would be marketed to consumer who have shown a strong desire for lowered pollution rates, but given climate change and a rise in environmental issues, this product can (and should) be marked to the public. Anyone who has bought or remodeled a home is likely to desire a fresh and sleek look. This product can accomplish that while also cleaning the atmosphere. General marketing in brand -name stores to regular, day to day customers is the route to take.
One major problem as far as companies using green marketing and why it isn’t working is that the relatively vague definition of green marketing leaves a lot of room for loopholes. Green marketing, by simply being defined as “the marketing of products that are assumed to be environmentally safe,” allows companies to take advantage of this idea even if their products are not the best example of green ones (McClendon 1). Most companies also don’t practice what they preach in such