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Green Works Executive Summary

Satisfactory Essays

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, …show more content…

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

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