Clorox is among the leading global companies that are currently offering the topmost brands in the global market. This company is also known to trade in the New York stocks exchange thus making it one of the most magnificent companies. Clorox Company generally laid emphasis on two mega trends, which included wellness, health and environmental sustainability. The decision to focus on these megatrends led to a marketing strategy that is known as “go to market and products strategy.” This in turn led to an increase in consumer interest in the products that Clorox Company offered since they were seen as sustainable. Through this, the company was able to successfully reposition its product brands in the market. Among these products included Brita, which as a system for water filtration, then there was also Burt bees, which were personal body care products, produced naturally. Additionally, there was a natural cleaning brand known as green works. These product brands played a very significant role in ensuring strong growth of the company.
Despite the challenging business environment that existed at that time, the company surprisingly recorded and overwhelming increase in sales, getting above the targeted value. This was in the year 2010; the amazing performance in sales was attributed to the successful launch of these three products and the mega tre3nd strategy in market approach. The year 2011 was however characterized with a decline in expected sales. The company got below the net expected results. This was greatly attributed to the prolonged economic recession. During this time, the sale of Clorox brands went down hence resulting into low returns on sales. The company is however experiencing a slow growth due to a number of reasons. First, the three brands; Brita, Burt bees and green works only constituted to 10% of the revenues. Despite this, the high sales of them largely boosted the revenues making the company to soar in great heights. The company had however registered slow sales rate from Burt’s bees and the green works products hence forcing it to stagger back in terms of economic developments. This was greatly associated with the weak economy that was in existence as well as the poor trends that dragged them behind.
Recommendations for this poor trending include a number of steps to be taken. First, the company needs to embark on a marketing campaign that will create more awareness of their products. These include performing a market survey and knowing the various opinions that customers hold about these product brands. After the survey and getting customer feedback, the company needs to implement the various customer requests and then embark on thorough adverts. This includes increasing adverts on the social Medias and running promotions that will increase in creation of awareness about these products. Consequently, the company should improve the quality of these product brands and make the public aware of these improvements to ensure healthy competition among its competitors. The result of this will be that many people will get to know these products and their level of effectiveness. This will also ensure great sales despite the recession hence enabling the company to achieve its sales target.
Most marketers recommend that marketing cost be between 5 – 7 percent of the total sales or predicted sales. In this case, our total sales figure is $5.5, thus:
7% of $5.5 = 7 x 5.5
= $ 0.385
The company should therefore allocate $ 0.385 for marketing purposes.
Since the company market share is average, the company can embark on practices that will enhance its customers and make them loyal to these products. This implies that through the adverts and promotions, the company can try to win many customers who will be frequent users of their products. Customer loyalty is very paramount and can lead to great growth in terms of revenues as well as the rate at which the company grows. This also makes the company products compete favorably in the market hence resulting into great revenues. The current market trends also need to be revised; this means that the company needs to come up with much more better marketing approach that will lead to greater sales and good penetration. Due to the nature of these brands, there are many market competitors thus the company can achieve the right position by ensuring that they achieve the greatest market share. Implementing these strategies will ensure that the company attains its rightful market position and be among the top market competitors.
Despite these attempts to make the company flourish, there is need to assess the various risks that are likely to be faced during the implementation of these policies. Such risks include cannibalization, which means that the company becomes unable to achieve its set policies. This is normally of great risk especially for companies that operate in multiple brands. The marketing department should be keen on implementing these policies the right way to ensure that the proposed strategies are successful and the market penetration done in the right way. Other risks that are related to this is poor budgeting of the marketing process. As a result, the company uses excess of what they need to use and then achieves below their expected budget. This in turn increases company deficits hence making it drag further behind the slow economic state.
To implement these processes successfully, the company needs at least a few months. This is because of the time limit to perform market surveys as well as monitoring the product performance. More time will also be needed to run the various promotions as well as product campaigns to create awareness of the said products. Consequently, the company may need time to fully implement the product improvement process so as to fully meet the customer satisfaction standards. With such a timeline of events, there is a greater need for sufficient time to ensure that all the stipulated activities are carried out in accordance to the planned procedures. Most marketing campaigns need sufficient time thus the company has to allocate all the necessary time and resources to meet the tight budget. Similarly, the budget allocation for these products ought to be sufficient so as to enable the marketing department to fully coordinate and successfully implement the various strategies that will help in ensuring they get a large market share.
In conclusion, the company products Bita, Burt bees and green works can bring great returns if proper market penetration and product positioning is achieved. There is also a greater need to improve the quality of these products to ensure that customer loyalty is maintained. This will sufficiently suffice even in times of hard economic crises and will see the company performing better. In addition, understanding the nature of market competition and customer demands is very important. It can help the company plan and innovate various ways through which it will attract a large market share. In this manner, great returns will achieved and the company will compete favorably in the market.