Case Study: Clorox Green Works Line

It is evident that the cleaner household market is huge. With the change in living trends in today’s society the demand for such products has shot by a huge margin and the profit percentage earned in this segment is huge as you only have to spend in the development of the product once and after that it’s just the manufacturing of the same thing again and again over a period of time for many years till your competitors introduce a better product in the market. Seeing this, Clorox has introduced five new products in here. The new line of products introduced has been done by a lot of thought and it has taken a lot of time for the company to do so because it wanted the product line to be unique and which could be easily advertised .What separates them from their competitors and makes them unique and is the sup(universal selling point) is that Clorox is referring its products as Nature Friendly so as attract a special segment of today’s nature friendly and environment oriented consumers who don’t want to be associated with companies who have a bad effect on the environment but instead claim to be doing their bit in protecting the environment. These have been introduced under the brand name “Green works” which relates directly to the environment. The marketing strategy to publicize the products as nature friendly has been a victory and has paid off rich dividends and the company has been able to stand out among its competitors and create a niche for itself .With the help of participation of the people and the media, Various campaigns for preserving the environment have also been launched by the company which has been a game changer. This all has led to a good perception of the company in the minds of the consumer and a new energy has been imbibed in the company. As a result, within six months of launch, Green Works had estimated sales have been shot by huge amounts and now has reached a substantial amount of $20 million. The prices are so affordable so that everyone can afford to have the products and the major distinguishing factor is that the distribution system is unique and well organized. And the most important factor is the that we have to keep the consumer behavior in mind, various new media advertising campaigns are being used such as cell phones, videos, social networking campaigns through facebook,orkut and through newspapers and radio etc. Sierra club, America’s oldest and largest grass root organization working for the environmental causes, has also been associated with Green Works, and it has provided a huge brand value for the company and its products. This has been a major contributing factor .But this deal also has had a flip side on the image on the company. This association has remained a controversy due the allegation of money being involved in the deal. But still, it hasn’t affected the attitude of people much and the image of the company has remained more or less the same. Clorox never in its history has put an ingredient list on its package. But with the changing consumer demands the company has now started putting the ingredients on the Green Works. Also the packaging for the Green works is quite unique in itself. Success of the product in future depends on how well it uses its nature quotient. And the company has played the environment card well in order to reach out of the consumers.

Question 1: What attitude change strategies is Clorox using to persuade consumers to buy its Green Works products?

Answer: As it is very much evident that the cleaner household market is huge. With the changing consumer behavior .The estimated worth is about $3 billion which is a huge thing in itself. Though there are a lot of competitors in this market and the market is already saturated and nearing the point of extinction, yet Clorox has introduced five new products in here which it hopes will do wonders for the company. There is a deep thought behind it and there has been so much being done by the company to take out the competition. Every one of us wants to save the Mother Earth, but only a few people want to do so at the cost of their discomfort and the company seems to be taking the initiative to do well for the environment. If people can have an option of going green without affecting their lifestyle in a drastic way, they would surely want to do so. This is the main motive behind the marketing strategy of Clorox. As no one wants to be on the bad side when we recall who contributed the most towards damaging the mother earth it is a very good approach to market itself as an environment friendly company.

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Clorox is using advertising effectively and is putting so much effort into making this strategy a huge hit and on a very large scale to make people realize the natural quotient of their product and why they should be using their products and not of other companies. Secondly the price at which the product is sold is quite comparable with “regular” cleaners so that it is easily affordable and has maximum reach among the common man who decided the fate of any major product and who can either make it or break it. Other “Green cleaners” such as Method and Seventh Generation have quite high prices than the regular cleaners so they lack in the mass market appeal that this product has to offer. The distribution system is also very unique. They are selling the products through mass merchandisers whereas the market trend is through specialty stores. This has taken the product to masses, thus creating an appeal of the “Green products”. And an air of greenness has been spread everywhere and even the competitors are changing their strategy and planning to go green. Also tests were done in more than 200 consumer houses to test the effectiveness of the products and creating a buzz about the product so that they have readymade market for their products after some of the users have tested it. Keeping the consumer behavior in mind, new media advertising is used such as cell phones, videos etc. Films on saving the environment are being created by fans and supported by the company so that it can be associated to some good being done. This is also shown on the website of the Product and clearly portrays what the company has to offer. Thus it creates a social appeal in the minds of consumer and it is doing well for the company .This is clearly a win strategy for everybody, the company and the environment.

Question 2: Which of the six environmental activism segments discussed in Chapter 3 (p. 90) does the Clorox Green Works line appeal to? Explain.

Answer: The Clorox Green Works is being termed as “Design for Environment”. Only natural and environment friendly ingredients are used for making the Green works products. One such is Corn- Based Ethanol. This is very unique. Also the cost of the product is not much higher than the regular cleaners. People want to save the environment but they do not want to do so by keeping them in discomfort. So this is a product which not only caters to the demands of the environment but is also healthy. Other than that the cost is also affordable. People can afford to buy it without thinking of their wallets. This product appeals to such people. Such products are in high demand in the market. It may create such a class of consumer base. And not only environmentally conscious people but also the people which are not that environmentally active will buy it. Once the product enters into the mass mainstream, the product will sell like anything because it is both environmentally safe and of daily usage to the people and it is also not costly at all.

Question 3: In what way is the “Green works” name utilizing a rhetorical figure?

Answer: The name “Green works” relates directly to the environment. The idea is to use the perception of the consumer. Information processing is a complex process and the perception plays a vital part in it. Perception consists of three stages – exposure, attention and interpretation. Here the word “Green” implicitly takes the attention of the consumer towards the environment. “Green works” is related to something as the work which is natural. This creates an appeal in the minds of the consumer about the products. So it is very evident that perception plays a vital part in the decision making process for the consumer. So a name like “Green works” is a very good move on the part of the company. The marketing strategy is also to publicize the products as nature friendly. This is all a part of branding. The idea is to utilize the psyche of the customer in such a way that the consumer feels a part of the environment friendly wave growing across the world. Various campaigns for preserving the environment have also been launched by the company. This all has led to a good perception of the company in the minds of the consumer. As a result, within six months of launch, Green Works had estimated sales of $20 million. This shows that projecting a product in an environmentally friendly manner especially by using innovative branding strategies like using a rhetorical name like green works is very effective to the sales of the product.

Question 4: Should Clorox engage the negative bloggers directly by blogging as well, should it simply ignore them, or should it try other indirect methods of dealing with the negative fallout?

Answer: The approach can be both ways depending on the situation. If the fallout is too much, the bloggers could be countered by replying to their criticism or their queries. The company should not be offensive in their blogs, but should justify their cause and the need to do so. A neutral approach should be taken, weighing both the company’s perspectives and the demand of the people. This approach should generally be avoided and must be used only in extreme cases. Most of the times the company does not need to justify itself as most of the comments posted on the blog are worthless.

On the other hand, if the blogging negative fallout is not much, then the approach taken could be to ignore them. If the bloggers are not affecting a lot of people and the points put up by them are not relevant, the company need not justify itself. This could be done by any loyal fan of the company. Most of the times the bloggers criticize a product just for the sake of it has been seen that no matter how good a product is it will always have negative detractors. Such comments and criticisms do not warrant a reply and the company should stay clear of justifying itself from such negative publicity.

But if the critics point on the blog is valid and company may want to change it, this would prove to be a good step. This shows that the company takes interest in what people say, and is willing to change it according to the consumer’s demands. This may create goodwill for the company. It is evident that every situation demands different solution and thus has to be dealt specifically with a different solution.

Question 5: Why are the endorsements of Sierra Club, the EPA, and Better Homes and Gardens so important to Clorox and the success of Green Works?

Answer: Sierra club is America’s oldest and largest grass root organization working for the environmental causes. Its association with Green Works has provided a huge brand value for the company and its products. As the company’s brand strategy is saving the environment, any sort of relation or good word from the Sierra club of EPA may boost the sales of its products by a very large number. The Sierra club has allowed its logo to appear on the products of Green Works, first time it has ever done so. This would increase the trust of people in their products, thus giving them an edge over their other competitors. This has personified the Brand Green Works. This relates to the personal cause of many people and has got a much deeper reach among the masses. Also this is seen perhaps as a way to counter some of the negativity of disgruntled Sierra Club members.

Question 6: Does it affect your attitude toward Green Works to know that the Sierra Club is receiving money from Clorox? Which aspect of the attitude process is at work here?

Answer: Yes, to know that the Sierra club is receiving money from Clorox affects the attitude of the people towards Green works. The Perception and interpretation processes of attitude are working here. The information which is being given is changing the state of the mind of the consumer. Thus the company needs to justify its actions.

Question 7: Clorox never in its history has put an ingredient list on its package. Now it does on Green Works. What attitude process is at work here?

Answer: By putting the ingredients on the list of its package, Green works want to show their commitment and transparency towards the consumers. They are stating that the products which they are selling are as per consumer’s expectation. They want to have the confidence of people in the product. This always works as the consumer feels that there should always be a transparency in consumer producer transactions

Question 8: Examine the packaging for Green Works. What perceptual processes are evident in the design and in how consumers will perceive and interpret the product?

Answer: The product examined is the Clorox all purpose cleaner. The product is carved into Green Plastic and a sunflower is made on its top. The words on it are “natural all purpose cleaner”. The perceptual processes of attention are being taken care of here. The color, format, expectations, all are explicitly evident from the package of Green works. Also the mention of ingredients on it have increased the information quantity as well as made the consumer confident about the product. Clorox has branches all over the world and this sort of transparency protocol works everywhere.

Referencess

Frequently asked questions about Green Works. (n.d). Retrieved on April 08, 2010 from http://www.greenworkspresskit.com/frequently_asked_questions_about_green_works.html