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.
3.Competitive Analysis
Simple Green and especially their, Naturals line is likely the most significant direct competitor, beyond traditional cleaning products found on shelves in traditional stores. Simple green, is available in its original form in traditional stores but often not in the household cleaning section of a traditional store, rather it is often found in the automotive section. It remains to be seen if the Naturals line will find its way to the household cleaning section of traditional stores. Simple Green, in many ways a recognized standard for "green" household cleaning that has been utilized by eco-conscious consumers for many years, yet it has never really found its way into the mainstream markets, as many only carry the original all purpose concentrate and it can be hard to find.
Many non-traditional, health food and/or natural niche markets carry branded or store labeled cleaning products that are said to be more "green" than others, and some of these products can also be found in the "natural" product sections in chain stores along side newly marketed old standards like castile soap and others. Some of the brands of these marketed or re-marketed products can be seen reflected in Appendix 1.
SC Johnson is another large mainstream corporation that has recently begun to express eco-sensitivity with regard to its products. The self developed "green" company standard (Greenlist label) has as of yet only labeled one product, Windex original blue as worthy of this classification. The Company stresses that more products will likely be added to this list and more importantly stresses that it, reportedly unlike other household cleaning product companies has been eco-aware for a very long time and has responded to changes in formulation, long before they became laws or even recommendations by consumers, the government or eco-aware groups. The company self reports that the Greenlist label will be given to formulations that have notable reduction and/or elimination in Volatile Organic Compounds or VOCs which have been shown to cause health problems in some and are problematic for the environment. (Consumer Reports, 2008, (http://www.greenerchoices.org/products.cfm?product=greencleaning&page=RightChoices)
Often times, savvy consumers, who make more purchases at these specialty stores also research alternatives among old standard products, such as combinations of cleaning products that have been used or decades and are shown to be mostly harmless and often very much less expensive than brand measured standards. Some examples of this can be found on the Consumer Reports Greener Choices website, where fundamental old standards such as baking soda and vinegar are exposed in combinations with other supposedly eco-friendly old standards to produce cleaning products for a multitude of household uses all painstakingly described in mix and usage. (Consumer Reports, 2008, (http://www.greenerchoices.org/products.cfm?product=greencleaning&page=RightChoices) These types of product developments are likely to offer some competition for the Clorox Green Works products but only in the case where consumers are willing to go through the time and trouble to learn these methods, obtaining and mixing the products for use.
The Clorox Green Works product line is a convenience item, much like any traditional pre-mixed single use or multiuse cleaning product but is reported by the company and at least two significant eco endorsements, the Sierra Club and the U.S. Environmental Protection Agency "Design for the Environment Label" (DfE) to be much more eco-friendly than many other household products. Consumers seeking ease of use, with limited lifestyle changes are likely to purchase such products based upon their desire to be proactive, without completely going "green." (Clorox Green Works Website, 2008 (http://www.greenworkscleaners.com/)(Proctor, 2000, p. 131) Appendix 1
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
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