WIXLIB

Clorox Green WorksSituation AnalysisADV 3312Jessica ReedAmanda Rodriguez

ProductClorox has made a line of products simply named Green Works, which cleanpowerfully without harsh chemical fumes or residue. The main goal for the CloroxGreen Works team was to find a formula that was natural, affordable and workedgreat. At the time there was no industry standard for natural products, so Cloroxtook a look some existing definitions: Made with plant- and mineral based cleaning ingredients. Come from biodegradable ingredients that are naturally derived. Not tested on animals. Use environmentally sustainable packaging whenever possible. Are acknowledged by the EPA’s Design for the Environment program.Green Works products range from multipurpose, bathroom and toilet, glass,dishwashing liquid, laundry detergents, and stain removers. The chemicals used inthe formula are not just environmentally-friendly, but the bottles and the cleansingwipes are also biodegradable.

BackgroundGreen Works knows that mothers are looking for ways to live a natural lifestyle.This was very important for the Green Works team being environmentally friendlymothers themselves. Green Works made it their mission to help achieve this goal.Green Works was launched in January 2008 to appeal to the mothers that are moreconscious of the chemicals that are in products they use around their children andin their home. The success of their product single-handedly grew the naturalcleaning product market by more than 80% in one year. Green Works has alwaysbeen upfront about the non-toxic chemicals used in their product and keep theiringredients online for the consumer to read. The Clorox Company launched itsinnovative Green Works line of natural household cleaning products in early2008. In an attempt to overcome the obstacles of skepticism due toproducts being labeled as green, sustainable, or natural often were lesseffective and cost significantly more than their traditional counterparts. TheClorox Green Works line is the first family of natural cleaning productsintroduced by a major consumer packaged goods company.

GeographyClorox’s Green Works is a nationally distributed brand that is sold in largeretail stores in the country. Depending on what is going on in the city orstate, Green Works could be advertised locally or regionally, but it willalways remain as a national seller.This particular campaign will focus on, Clean Up the World, which is acommunity-based environmental campaign that inspires and empowerscommunities around the globe to clean up, fix up and conserve theenvironment. This event is celebrated on the 3rd weekend of September eachyear.Green Works has been very supportive with environmental causes. On EarthDay in April 2013, Green Works donated a dollar to the Environmental MediaAssociation’s school garden project. This campaign will go beyond amonetary benefit and will help a college community create a “BottleGarden”. This will emphasize the importance of using items that youcurrently have available. There is no need to go out searching for some ultraclean expensive pot when Green Works bottles are biodegradable.

ConsumerThe target consumers for Green Works are college educated married motherswhose ages range from 25-48. These mothers will typically have 2-5 children thatare young in age. The average income for this two-parent household will rangefrom 80,000 . The price of Green Works may be a bit more expensive than ageneral person may want to pay for a household cleaning product. However, theGreen Works consumer does not mind paying the price for a quality product. It isnot just a quality product, but it is a name brand product as well. This family, themother particularly, is looking for ways to live a more natural lifestyle and does notwant to bring harsh chemicals in her house. Clorox’s research shows that that thisconsumer’s primary motivation is a belief that some chemicals might bedangerous to her family’s health and well-being. The female consumer ismotivated by her concern for her family, rather than a generalized desire tohelp the environment or to act in a socially responsible manner.

CompetitionMajor Competitors The Simple GreenBegan over 30 years ago, long before “environmentallyofriendly” products were mandated by law. Bruce Fabrizoand his father developed a safer alternative to the toxiccleaners. It took them three years to perfect thebiodegradable, non-toxic, non-flammable and non-abrasiveformula. However, the products do not seem to beantibacterial or disinfectant. The Simple Green has at leasttwo choices of multi-surface and all-purpose cleaners. MethodOne of the fastest growing private companies in Americaoand single handedly turned the consumer-packaged-goodsindustry on its head. Method is beginning to sell itsproducts in major retailers and is slowly catching up inmarket share next to Green Works. Seventh GenerationoSeventh Generation has teamed up with CleanWellCompany and produced a disinfectant line that is builtwith CleanWell Patent Disinfecting Technology. Procter & Gamble

oP&G does not have specific green line, but the companyhas made a goal to reduce packaging waste as opposedto formulating new products. There is also indication thatshows that P&G is working safer formulas into theirproduct but not necessarily green and clean formulas.When Clorox launched Green Works in January 2008, it was the first of its kind.Clorox became the first major consumer products firm to launch a line ofenvironmentally friendly cleaners. Before that, green cleaners were limited tosmaller companies. Just eight months after its introduction, Green Works saleswere well over 40 million, outselling all other products in the green cleaningbrands. Green Works first plant-based detergent and stain remover were releasedin 2009. The success of their product single-handedly grew the natural cleaningproduct market by more than 80% in one year by selling Green Works throughtheir current distribution chain in more than 24,000 stores alongside their regularhousehold cleaning products. Clorox really benefited from the support from largeretailers such as Wal-Mart, which gave Green Works some of its visible shelf space.However, Method and Seventh Generation are slowly adding their products intosmall and large retail stores. Clorox put more effort into formulating products madefrom 99% natural, non-petrochemical ingredients, rather than just calling theirproduct clean with a fake label. The main winning point for Green Works is thatClorox decided to keep their name on the new line to defuse consumer fears thatgreen products would be less effective at cleaning. When the consumer thinksabout Clorox, they think of bleach and tough fight cleaning products. With thename still on the product, this ensures brand loyalty, and consumers are more

trusting of a product that has already proven its cleaning ability. Another benefitthat Green Works has above the others is that it is under a bigger name company.There are coupon opportunities available online at the products website as well asits retailers.Unfortunately, within the last year Clorox has seen its profit from Green Works fall.The fact the price of Green Works is significantly higher than the traditional Cloroxbrand has not resonated well with consumers. Green Works may still be on top, butsmaller brands are closing the gap.

MarketplaceClorox Green Works became the top selling line of natural cleaners in 2009 with a42% market share of the total market, generating 200 million in revenueannually.Natural ProductsGreen WorksProcter & GambleSeventh GenerationMethodOther

Previous AdvertisingStarting January 2013, Green Works has begun major changes in the productdesign, marketing strategies and even its target consumer. Clorox’s contract withthe Sierra Club expires in December its logo has appeared on all of the packagingbut will be eliminated with the new makeover Green Works will be receiving. Cloroxis deciding to go after conventional costumers at a lower price point. Clorox haslowered its price from its price premium that was 20% higher than the averagecleaning product and to put it with the Clorox portion of the cleaning productsinstead of the green section. The goal is that the more traditional consumer will bewilling to try the product to see if they like it. These new changes will be phased induring the summer of 2013. The target consumer has now been changed tomothers, 18-49, that are very tech savvy. The Digital Strategist for Green Workslaunched a campaign on Earth Day in April 2013. This was a fundraising promotionon Twitter to revamp its marketing strategy. For every joke posted on Green Works’Twitter account starting from Earth Day until the end of May, Green Works donatesa dollar to the Environmental Media Association’s school gardens project. Thetagline for the initiative is, “You don’t have to be serious to be green.”In January, Green Works introduced a YouTube series called “Green Housewives,”which parodies the trend of reality shows and people who have made beingenvironmentally correct a status symbol. In February, Green Works ran a“Tweethearts” campaign that allowed participants to send environmentally-friendly,virtual Valentine’s Day cards via Twitter. Then in March, the social media initiativewas a six-second game of charades on Vine for St. Patrick’s Day; its message was,

“You don’t have to put on a charade to be green.” The point of all the social mediainitiatives is intended to “help customers become owners of and advocates for thebrand.”The new Green Works campaign also involves a new Green Works website that wasintroduced in January and magazine ads that will be issued out in women’smagazines during; April, May and June. One headline of the ad will read, “You don’thave to be perfect to be green,” and another says, “You don’t have to be a trustfund baby to be green.”Although the change of look, target audience and adding social media will increasebrand awareness to Green Works, this may not necessarily translate into sales.

SWOT AnalysisStrengths High brand recognition Number of leading products and brands in wide range of markets Strong customer relationship ensures brand loyalty of customer Strong community presence Was the first of its kindWeaknesses Large dependency on U.S market Concentrated customers Has not yet found a natural formula that disinfects Once a 20% but has now changed to 5% premium but still cost moreOpportunities Focus on natural/green products Other potential markets such as China and Latin AmericaThreats Introduction of more private brands in household cleaning market Seventh Generation and Method are closing the gap in market share Clorox has received warning from advertising agencies for promoting theirproducts as the perfect cleaners.