MARKETING PLAN FOR CLOROX
DISINFECTING WIPES
PREPRARED FOR:
Professor Schermerhorn
TEAM 8:
MATT BARRAN, JEFF BELL, MICHELLE BELNA,
HEATHER BERRINGER, MATT BEY
MAY 7, 2004
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
SITUATIONAL ANALYSIS 4
Industry Forces 4
Company Information 5
Environmental Factors 6
Collaborators 7
Competitors 7
Conclusion 8
CUSTOMER SEGMENTATION 9
Involvement Needed 9
Customer Desires 9
Functional Benefits 9
Psychological Benefits 10
Buying Habits 10
Conclusion 11
MARKETING STRATEGY FOR CLOROX DISINFECTING WIPES 12
Repositioning 12
Product 12
Price 13
Place 13
Promotion 14
Measuring Plan Success 16
Conclusion 17
WORKS CITED 21
Appendix A: Business Law I
Appendix B:
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Since 1913, Clorox has had a reputation of leading the industry with its products.
This situational analysis includes industry forces, company statistics and financial information, a list of environmental factors that deal with how the company operates, and competitor information.
Industry Forces
The Clorox Company does business within the industry of Nondurable Goods; especially relevant to the product of Disinfecting Wipes, the company is associated with the sub-industry of Household Products. Two significant forces should be considered when examining the industry and individual companies within this industry: innovation and competition.
Threat of Substitutes and Innovation
The threat of substitutes for the Household Products of the Nondurables Industry is high. As mentioned before, each company produces a product that is very similar to its competitors. Customers also have high bargaining power in that they can buy substitute products such as paper towels and disinfecting sprays. If a company does not spend time and effort marketing its products, consumers will not be able to differentiate them from a competitor.
The typical household product has a life of approximately five years from the conception of the product until it is stripped from shelves. The product will go through one to two years of development, testing, and marketing. It will then
PetSmart is one of the largest specialty pet retailers of service and solutions for the lifetime of pets. More than 1008 stores are open in the United States and Canada that provide pet foods and supplies that are priced reasonably. PetSmart provides all types of services for pets including pet training, pet grooming, pet boarding and adoption services. In addition to providing impressive value PetSmart has the broadest, deepest product range in the industry, including thousands of products exclusive only to PetSmart. Every year PetSmart takes care of the grooming for hundreds of thousands of pets in what PetSmart calls its PetSmart Salons. These animals are groomed and pampered by stylist who have
The purpose of the situational analysis is to look at a company’s internal environment in terms of its Strengths, Weaknesses, Opportunities as well as Threats, this enables the company to then set objectives accordingly.
An industry product can be substituted by a substitute product which has the same or similar function by a different means. A substitute can limit industry profitability and growth. Porter (2008) gives several key elements on determining the threat.
Businesses can prepare their own analysis for each category by obtaining numerous pieces of information, which relate to their current state as well as knowledge about how their company’s decisions and operations impact their society and environment.
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
Colgate-Palmolive Co (CP) was an international leader in household and personal care product, with the sales of $6.06 billion and profit of $2.76 billion in 1991. CP set up a five-year plan in 1991, pointing out that company needed to focus on new product launching and entry into new geographic markets by improving the manufacturing, distribution and the continuance of the core consumer products. Started from 1984, CP’s CEO awaked the company from “sleepy and inefficient” to profitable. Both gross margin and annual volume growth increased from 1985. Although everything seemed good, CP was facing the worldwide strong competitions from other companies. In order to have some protections, 170 CP’s
Grant Nauta AHP Case Study Because American Home Products (AHP) currently operates with virtually no debt, their financial risk is very small. This shifts the burden heavily towards business risk. A porter’s five forces analysis is appropriate to determine the exact levels of business risk for American Home Products. First, the threat of substitutes is a risk that AHP cannot afford to ignore. Because they spend very little on Research and Development, and have to rely on their marketing to catch up to competitors, they always seem to be a step behind their competitors. In the industries that AHP operates, switching costs are very low and consumers based on anything from price to overall sentiment. Also, if a competitor markets a product
If Clorox does not restructure its portfolio mix and increase revenue contribution from the growing markets, it faces the risk of losing sales and its position in those markets. Using its current resources, Clorox needs to determine how to allocate those resources among its current brand portfolio. Equally important is determining whether to invest in new product lines or brands. Clorox also has to decide whether to expand into international markets or focus strictly on expanding its market share across its brands in the primary U.S. market. Asian, South American, and European markets offer potential for growth but the cost of expanding into these markets and the limited availability of financial resources pose concerns with respect to international expansion. Focus on growth versus profitability is another important strategic decision that needs to be addressed. Clorox projects flat sales for 2011, which is not a positive indicator for investors’
The buyers in this sector are individual households. People use toothpaste for their own personal use. “The customer power is magnified when the market has many sellers and fewer customers. The switching cost from one seller to another is another
There are over 1.1 million men and woman amateur and pro bodybuilders alone in the United States. The IFBB has competitors age ranges from as young as 16 years to as old as 83 within a range categories for competition, The NutiBullet Pro is a necessary tool to assist the competitors in preparing for competitions fulfilling a need for a quick, convenient and easy way for bodybuilders to create their protein shakes, whey smoothies or one of their required 6 to 7 meals a day.
Companies have to strife for a competitive advantage over its rivals. Industry concentration is measured through concentration ratios. A higher concentration
The threat of substitutes is low. Buyers are unlikely to substitute Corning’s product because few substitutes exist. Additionally, switching costs would also be high for business buyers to substitute Corning’s with another manufacturer’s
Before this analysis will begin, it is vital to stress that this model is well-known as an effective instrument. An advantage of this model is that it captures the immediate environment in which the company competes. It allows to clearly understand the forces which
Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there
The threat of substitutes: where it refers to substitute product as those that are available in other industry which can also fulfil the need and want of the consumers. It can affect competition in an industry by placing an invisible ceiling on prices which companies within the industry can charge, due to the fact that if the cost of substitute is low then the consumers will tend to purchase substitutes, therefore limiting the prices that a company can place on certain items to gain maximum profit. For example, lemonade can be substituted for a soft drink. Generally, competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumer 's switching costs decrease.