A marketing plan for Clorox's Green Works product line

Green Works

This work expresses a complete marketing plan for the new Clorox Product line Green Works. The product reportedly made from all natural products is answering the national call for personal responsibility for eco-friendly alternatives with the inclusion of traditional ease of use and non-altered lifestyle changes on the part of consumers. The work covers market segments, and contains a SWOT analysis as well as many other text and table options for a complete marketing plan.

External Environmental Analysis Introduction

The home products and materials industries in general have demonstrated significant recent investment, production and distribution of products that are said to be "greener" than other products in the past. This is in large part due to national and international consumer and political cries for better products that are much more responsive to the environment and therefore do less harm. For this reason non-traditional products, such as cleaning and household products found in alternative stores, such as health food stores, cooperative grocery stores and alternative chain grocery stores who stress the environment and more natural alternatives have created a niche market that more recently has challenged traditional product makers. The challenge has been to develop more "green" alternatives as well as to market the steps the company has already taken in their product line to produce a more environmentally friendly product, either by law or by voluntary means. As such many major producers of household cleaning products have attempted to develop competitive "green" marketing as well as new products. Some examples would be the new emphasis SC Johnson have placed on traditional environmental concerns that have already been answered in their products, such as Windex, which supposedly, according to marketing has not changed formulas recently but has been "greener" for a very long time. Alternative development, responding to real and potential losses in product sales has been answered by the development of entirely new product lines, such as the Green Works ™ product line of household cleaners recently unveiled by another household brand giant Clorox. According to the Green Works ™ website among the FAQ the company has been working on the product line for about five years, but has yet to meet the standard of a natural disinfectant product, a product option that Clorox is very well-known for in its traditional product lines and something other "green or natural product lines now produce and market to consumers. (Consumer Reports, 2008, (http://www.greenerchoices.org/products.cfm?product=greencleaning&page=RightChoices)

Up to this decade the "green" cleaning market was tailored to industrial cleaning, as many businesses have legal and health prevention incentives to demonstrate lower levels of environmental impact and in some cases reduce the toxicity overall of some processes that are not as eco-sensitive but are necessary for production. Tracing green labeling standards with programs such as the eco-labeling criteria Green Seal or the multinational EcoLogo program are highly weighted in the direction of commercial products, while the more mainstream multinational consumer product lines have only recently begun to market eco-friendly cleaning options. (GreenSeal Website, 2008, (http://www.greenseal.org/findaproduct/cleaners.cfm)(Ecologo Program Website, 2008, (http://www.ecologo.org/en/)Some of these product manufacturers have chosen to branch out into the household consumer market or even partner with other companies to produce consumer lines, while Clorox has the distinct advantage of already having a strong brand name in consumer cleaning products as well as a strong presence on traditional store shelves with the ability to negotiate for more of this very precious commodity.

4.Economic Forces

The draw for products that are necessary, and yet more expensive than other alternatives is limited at this times, as a result of the current recession, yet the draw to eco-solutions and the recent emphasis on personal responsibility with regard to such issues is likely to somewhat balance the decisions regarding eco-options. In other words, for some consumers, with the increasing prices for essentials, such as food and fuel a new cleaning product that is roughly 1-2 dollars more expensive than their traditional brand may seem like an extravagant purchase, while to others the expense might be worth shouldering. (Clorox Green Works FAQ Website, 2008 (http://www.greenworkscleaners.com/products/faq.php)(Drustore.com, 2008, web site: (http://www.drugstore.com/products/prod.asp?pid=183018&catid=134735&aid=335933&aparam=clorox_green_works_natur&CAID=35d89d51-2adb-4122-a49d-16b5a91e3974)for the consumer who has sought more expensive "natural" alternatives in alternative markets the decision to switch to Clorox Green Works might be a reduction in cost as many specialized "natural" options are more expensive than the Clorox line. Traditional "green" products (excluding those that are stresses in the article by Consumer Reports about older cheaper standards) have the reputation of expense, as do the markets they appear in and more traditional consumers may find that a nationally recognized brand is easier to trust and easier to sustain in a household, with regard to lifestyle changes.

5.Political Forces

The current presidential election year has brought greater attention to the environment and the "green" movement, as others have in the last 20 years. Political pressure to change the "green" standards of the nation as well as its entities and individuals is a hot topic, especially with regard to fuel alternatives and global warming. Yet, each major and minor political party and has recently been stressing personal responsibility for more eco responsibility. Many are listening to these new accountability standards and acting on them. (Sanders, 2004, p. 3)

6.Legal and Regulatory Forces

Legal and regulatory forces regarding the standards of eco-friendly cleaning products are limited, especially on the household consumer level but are likely to increase in the future. Trends in business are a good indication of how standards may be applied to the consumer market, but not necessarily to the home, a sacred and private American institution. (Davis, 1994, p. 36)

7.Technological Forces

The traditional goals of household cleaning manufacturing has been to seek out chemical rather than natural alternatives, as a result of the fact that natural substances cannot be patented. Yet, these standards really only apply to food and drugs (including vitamins) and combinations of natural and semi-natural chemical combinations may see patens in the future, but currently the old standard creates a difficulty that has only recently been overcome by some companies who seek alternatives to meet new consumer demands.

8.Socio-cultural Forces

The level of individual responsibility with regard to eco-friendly living has increased exponentially over the last 20 years. This is true for many consumer products and utilization of resources. These trends are likely to increase and broaden, rather than wane, as more and more companies and products meet the mainstream market that emphasize eco-solutions to individual consumers and make such decisions easier than they have been in the past. (Marty, 2007, p. 46)

9.Possible target markets and segments

The stress of time and limited knowledge is the likely saving grace of the Clorox Green Works line, as many consumers, and especially those who are not particularly "green" in their choices are seeking products that are responsible, that do not change the nature of their lifestyle. The products will likely become a good solid seller for this market segment. Being that these products will share shelf space with many other household products in traditional stores will be the largest asset of the segment, as store shelf space is limited but Clorox has the brand recognition to negotiate for space in traditional markets, many of whom are also seeking "green" alternatives from major marketers.

Clorox may wish to expand sales to non-traditional markets, such as health food stores and alternative "green" markets. The market may be resistant to the large brand, and may challenge the company to prove the standards of products before they will sell them.

Finally, the department store market segment in not only grocery stores but in large variety stores such as Wal-Mart, Kmart, Target, CostCo and others is a strong market segment, as many people seek to purchase cleaning supplies in larger quantities or at these types of stores because they meet many other household and personal needs.

10. SWOT ANALYSIS

The largest strengths of the Green Works line are brand recognition of Clorox, access to market in traditional locations and lastly ease of use for consumers. The largest weaknesses of the line are associated with brand recognition (which may sway specialty markets and consumers from use fearing compliance issues). Opportunities are plentiful, once proof has been offered to the "green" community with regard to efficacy and success of the product, expansion to non-traditional markets being the greatest. Limitations include the expense of such a large line of new products in competition with other traditional products of this and other brands and the current lack of ability to access alternative market niches. Appendix 2

14.SWOT analysis summary

The weaknesses of this brand can clearly be overcome, as even the limitations bein overcome are not necessary, unless market expansion to non-traditional markets is essential, and it clearly is not. Current market sales of traditional products will likely prove the greatest market advantage as the product is available where old products were once found and has a recognizable and trusted brand backing it. Appendix 2

15. Target Market

The stress of time and limited knowledge is the likely saving grace of the Clorox Green Works line, as many consumers, and especially those who are not particularly "green" in their choices are seeking products that are responsible, that do not change the nature of their lifestyle. The products will likely become a good solid seller for this market segment. Being that these products will share shelf space with many other household products in traditional stores will be the largest asset of the segment, as store shelf space is limited but Clorox has the brand recognition to negotiate for space in traditional markets, many of whom are also seeking "green" alternatives from major marketers.

16. What marketing plan for the product is utilized?

Product strategy is timely for the current trend of need to change but desire to remain in current lifestyle position. There are very few comparable products on the same shelves as where Green Works will most likely make its most sales, traditional retail stores. Branding must be catchy and reflect the eco solutions idea but is markedly simple, compared to individual branded market brand and label systems associated with traditional products. The grouping of several products with different single use and multi-use products is essential to recognition and is also helpful to cost. Appendix 3

17.What marketing plan for promotion is utilized?

Clorox Green Works has a national positioning strategy like all major lines with and emphasis on eco-responsible natural ingredients. Budget for such a plan will be high initially, including, internet development, prime time and off time television ads, ads and rebates in national publications and periodicals, publicity will be associated with "green" wave. Appendix 4

18.What marketing plan for distribution is utilized?

Traditional distribution methods are utilized for this product, non-clustered sales of product with Clorox Green Works Label, which is simplified and easy to recognize in the single use and multi-use venues. Appendix 5

19.What marketing plan for price is utilized?

Price has been determined by the cost of ingredients as well as research and development costing. The processes used are significantly different in early inception but manufacturing, labeling and distribution channels are similar to other products. Prices are 1-2 dollars higher than traditional products, with the same functions but are less expensive than alternative natural products in niche production. Appendix 6

20.What time frame for rollout is covered?

See timeline below for details. Appendix 7