The clorox company goes green case study free download

Pricing is a highly complex activity and we will cover only a very limited aspect of what goes into pricing decisions. To a large extend pricing depends upon the other 3Ps of marketing — product, place and promotion. Conceptually perceived value is the maximum price a customer is willing to pay for Clorox Greenworks product in the given competitive context.

Under cost based pricing strategy — Clorox Greenworks can work out what it takes to produce the product and put a markup based on profit it wants earn. In a highly competitive strategy with dynamic pricing the strategy may not be feasible.

For example Uber running losses in billions can provide lower prices and sustain compare to individual taxi service provider who is not backed by private equity and long term strategy. Value Base Pricing is a pricing strategy which is based on customer perception of value. It inculcates put the number on both tangible and intangible benefits with a clear understanding of elasticity of demand and competitive pressures. Clorox Greenworks can employ this pricing strategy where it launch a new product either at loss or at very low margin to get a foothold in the segment.

For certain well established brands, Clorox Greenworks can increase the prices as customers can pay higher price. Offering right mix of product features, quality, and service combination at fair price. For example offering a limited frill option - customers can have initial product experience at an accessible price.

GoPro use this strategy extensively. The pricing strategy is based on the competition in the market. Under this strategy Clorox Greenworks focus is to match the prices of the competitors and focus on reducing the cost of operations to increase profitability.

Based on the evidences at hand — we can choose the following pricing strategy High Brand Awareness — The brand of Clorox Greenworks is well respected in the market so it can fetch a slight premium over the other competitive brands.

This will help in answering — the related costs and various sources of competitive advantages of Clorox Greenworks in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies.

According to Michael Porter — Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks. BCG Growth Share Matrix is very valuable tool to analyze Clorox Greenworks strategic positioning in various sectors that it operates in and strategic options that are available to it.

Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Clorox Greenworks can be market leader in the industry without being a dominant player or segment leader in any of the segment. Published by HBR Publications. Explore More Feel free to connect with us if you need business research. We achieved this with GreenWorks. Exhibit 6 contains ingredient lists for popular GreenWorks products.

The majority of ingredients are basic commodity products. Still, Clorox needed to change the perception of the company to promote the GreenWorks brand, so the company launched an aggressive advertising campaign through television and print.

Endorsing a product from a highly visible chemical company that had a reputation of producing environmentally degrading products seemed out of character for the Sierra Club. Management questioned why the club did not partner with one of the smaller and well-established producers of green cleaning products, such as Seventh Generation or Method. Although skeptical at first, the national leadership for the Sierra Club agreed to a deal. The only way to combine these elements is to combine a very well known cleaning brand with a very green brand.

And we are the green brand. But we decided it was more important to try to create this marketplace. Industry plays an important role in environmental conservation. We are looking forward to working with the Sierra Club so that we can continue to be part of the solution.

From a strategic point of view, there was concern over how this deal would affect the promotion of the GreenWorks brand. Additionally, the company hoped that the seal of approval from the Sierra Club could attract new, more environmentally friendly consumers who might have a poor image of Clorox. The price was significantly lower than comparable products from Seventh Generation and Method. GreenWorks hit shelves in early Seventh Generation and Method did not lose market share.

The question is, do you want a big piece of a small pie or a small piece of a big pie? We absolutely want the pie to be as big as possible, even if we have a smaller slice. See Exhibits 11—13 for detailed financial figures for Clorox. Clorox was able to gain DfE approval for its GreenWorks brand, which identified it as best in class. Exhibit 14 details the approval process.

Despite the EPA endorsement, some constituents within the Sierra Club remained skittish about the partnership. My committee never saw it. My co-chair and I did ask [Clorox] a lot of questions—we wanted to know what was in the product. The deal between the Sierra Club and Clorox created a vicious backlash among environmentalists.

They should all be ashamed of themselves. The environmental backlash had mixed results. The club responded to the backlash in early by posting a webpage that explained why the organization accepted the deal see Exhibit On the other hand, the controversy mostly bypassed Clorox.

Competitors seized an opportunity to challenge the quality of the brand. Three quarters will not accept any trade-off whatsoever. The product line included a liquid laundry detergent, fabric softener sheets, powder laundry detergent, multi-surface cleaner, glass cleaner, and cleaner and degreaser. Unilever Unilever N. Unilever demonstrated some commitment to environmental management, largely within its food and personal care brands.

Several smaller companies pioneered green products in the gap left by the giants in the early years of growth in the market, and established strong environmental brands. Seventh Generation Seventh Generation was founded in the late s as a wholesale natural products catalog. While many consumers were willing to pay this premium in good economic times, the company suffered during recessions. Evidence suggests that customers saw its products as discretionary. Seventh Generation did not own any manufacturing facilities.

Rather, the company partnered with manufacturers to save on capital investment. However, this arrangement created problems, such as when a partner manufacturer of baby wipes announced that it could no longer justify expenses created from constant turnover between natural wipes and the conventional wipes it produced for its other customers.

Please see Exhibit 16 for more information on financial data for Clorox and its competitors. This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution. Search Case Solutions Search for:. Contact us: Email: order thecasesolutions. Check Order Status. For instance: to target residence halls in colleges by providing personal supplies on move-in days and teach students about the benefits of using natural products.

Exporting to global markets is not a good way to support green practices given that it incurs consumption of fossil fuels, pollution to the oceans, and emissions of gas. It is also important to recall that natural resources are different in every region, so it will bring discrepancies in certain areas. In the other hand, if entering international markets is that necessary for the competitiveness of the company, then opening manufacturing facilities that operate with local products could be an option to consider.

Being cost efficient and accessible for customers are the major concerns for this company. A great way to have families test the efficiency of natural cleaners is by providing it to them.

Get customers familiar with the product will generate brand loyalty. A way to approach this issue to sell the original Clorox product and stick to it a sample of the natural version of the product, that customer can compare the difference between both products.