Presentation on these three brands from Clorox including tips for brand marketers
TRANSCRIPT
The Clorox Company
Learning From the Field Since Sustainable Brands 2008
Mike Kraft- Sr. Manager Environmental Sustainability
The Clorox Company
The Clorox Company
Total FY08 Sales of $5.3 Billion
Home Care (17%)
Auto Care (4%)
Charcoal (9%)
Dressings & Sauces (8%)
Cat Litter (7%)
Brita / Canada (8%)
Laundry Care (12%)
International (16%)
Glad (16%)
Sales of Professional Products Division allocated to each business unit
Burt’s Bees (2%)
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Small CPG compared to many of our direct competitors $5B in sales spread across some very diverse categories, many of our brands are leaders within their respective categories
The Clorox Company
Key Consumer Insights
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Consumer insights critical to success of Clorox, want to take a minute to review several key insights we hold regarding “green” consumers
The Clorox Company
Consumers are Most Concerned with Their Own Environment
Yard
My Environment
The Environment
Within My Control —“Immediate”
Outside of My Control — “Long-Term”
WorldParks Community
Work
Car
Family/Home
Local NaturalEnvironment
Body
Consumer Definition of “My” Environment vs. “The” Environment
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Consumer’s “environment: for most is what is closest to them and expands outward Starts with “in me on me around me” Their perception of what they can control, and/or make impact on, is key to the my vs the environment concept
The Clorox Company
Four Key Motivators Drive Interest in the Environment
Personal ProtectionThe environment Is getting worse and I
need to protect myself and my family
CostBy reducing and re-using my family’s
consumption, I can save money
StatusLetting others know I care about the
environment shows that I am responsible
AltruismImproving the environment by minimizing
human impact is the right thing to do
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Personal protection and cost savings, both “my” environment focused are strongest motivators for mainstream consumers In tough economy, personal protection and cost savings dominate even more
The Clorox Company
Green Trend & Consumer Behavior in Tough Economy
• Green Trend Outlook– Consumer attitudes towards green are fundamentally solid– Structural forces continue to institutionalize green– Green product launches accelerating (including major CPG’s and Private
personal/family protection at reasonable premium fare best
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Feel good about green trends over the long term, here to stay and not a fad Institutional factors: companies making public commitments and continuing to do so even in tough times, legislation, our children in schools etc Green/natural categories performing better than conventional
The Clorox Company
Three Clorox Examples:
• In me- Brita® Water Filtration System
• On me- Burt’s Bees® Natural Personal Care Products
• Around me- Green Works™ Natural Household Cleaners
The Clorox Company
A More Sustainable Alternative to Bottled Water
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Water filtration products, pitchers and faucet mount deliver filtered water removing contaminants Offers alternative to plastic water bottles 60MM bottles tossed everyday with less than 1 in 5 being recycled, One Brita pitcher filter can replace ~ 300 standard 16.9 oz water bottles
The Clorox Company
Saves MoneyCheaper than bottled
water
Good For MeHealthy, great tasting
filtered water
Brita™ Water FiltrationA Broadened Positioning Addresses Consumer Needs on Multiple Vectors
Good For The PlanetReduces plastic bottled
water waste
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Great strength of the brand is that is delivers against multiple key desires of sustainable consumers highlighted earlier Basic benefit is to provide healthy water, in past year and half the brand highlighted the good for the planet aspect. Recently, in light of economy, the brand is also highlighting the cost saving aspect of using Brita – this is taking a more prominent role in the brand messaging which I will point out
The Clorox Company
New Brita TV Spot
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Over the past year, we ran a very effective series of ads pointing out plastic water bottles going to landfill, you may recall the “30 mins on a treadmill, forever in a landfill” This new ad, while still pointing out the environmental benefit, explicitly goes after the value aspect of using Brita system
The Clorox Company
Strong Retail Earth Month Support
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- You’ll see the same environment and wallet theme in these examples of recent Earth Day initiatives, we had strong retailer support and outstanding results with these programs
The Clorox Company
+ = 50,000 plastic water bottles eliminated
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Brita also continued the extremely effective FFG campaign – a campaign that was recently recognized at the CLIO awards with a Gold Medal, one of the judges commented that “What impressed me most about the Filter For Good Program was that it was successful in actually changing consumer behavior…” Here you see how Brita and FFG tapped into the Sundance Festival eliminating need for 50M bottles just for this event
The Clorox Company
Closing the Loop with Preserve®
=+ =
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Finally, late last year, responding to consumer interests, we initiated a pitcher filter recycling program which takes the polypropylene filters, partners with Preserve to upcycle them into usable products Program starting in Whole Foods and also mail in option
The Clorox Company
Brita® Business Results
• In Tough Economy– Continued Double-Digit Growth
– Continuing to Grow Share
The Clorox Company
“Burt’s Bees make people’s lives better every day - naturally.”
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Company where sustainability is core to the entire way they do business, the Greater Good model Clorox acquired in later 2007
The Clorox Company
Burt’s Bees® Natural Personal Care Products
Lip Face BodyHair Baby Outdoor &
Natural Remedies
Gifts
Kits
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See product lines New add in past year include Men’s products and a body wash
The Clorox Company
Bee-utify Your World Mobile Tour
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Burts was built upon grass roots marketing approach such as the Bee-utify your world tour that the brand continues It gives the opportunity for relationship marketing, to connect face to face with consumers and tap into the fun that helped build the brand
The Clorox Company
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While Burts was built upon grass roots marketing approach, following acquisition by Clorox and gaining distribution in mass merch drove need for some more traditional mass awareness vehicles, print ads have been one of the most effective mechanisms Print ad enables ability to communicate some pretty detailed product information and this campaign seeks to really highlight to consumers the difference between Burts and synthetic products, you’ll notice the small green seal down in the bottom right….that is the NPA Natural Standard……….
The Clorox Company
The Natural Standard for Personal Care Products
• Developed in 2008 by the Natural Products Association with Burt’s Bees and leading Natural Personal Care companies
• Provides consumer with standard definition of “natural” for personal care products
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Most consumers are not sure what natural is and most also think natural products are regulated The natural standard seeks to give clarity to consumers on this front
The Clorox Company
Business Results
Expanded “Hive” shelf presence into 2,500 Wal-mart stores
Leader in natural personal care with 27% share, double that of number two player
Business continues to grow in size and share - slowed by the economy
Natural Personal Care category continues to outpace conventional personal care
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- Very positive on the long term prospects of the brand despite slowing growth driven by the economy
The Clorox Company
powerful cleaning. done naturally.
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Basic brand product offering was to address what had historically been the greatest inhibitor of mass consumer adoption of natural cleaners: too expensive, did not work well and had to go to special stores to find it. In Jan 2008 GW launched 5 skus which truly addressed these issues and gave consumers a truly affordable, effective, readily available natl cleaner, the results as you will see have been great
The Clorox Company
Leading the way with Green Works™ Natural Cleaners
• First major CPG player to enter natural cleaning
• First natural cleaner with national distribution and brand-building investment
Over the past year…..• Added to initial product line-up by launching Green Works™ natural glass
cleaner, natural cleaning wipes and natural dishwashing liquid
• Green Works™ established as the number one brand in natural cleaning with the number one product in each category in which we participate
• Natural cleaning category growth tripled in the first year of launch*
• Green Works™ natural cleaners established strong consumer brand recognition
*IRI FDKT
The Clorox Company
“When you think of ‘green’ or an environmentally-friendly product, what is the first consumer product that comes to mind?”
0%
1%
2%
3%
4%
5%
6%
CloroxGreenWorks
ToyotaPrius
SimpleGreen Windex Seventh
GenerationMethod GE
Yale Green IQ Green Consumer Survey 2008 – Yale School of Management, Yale School of Forestry & Environmental Studies in collaboration with McKinsey & Company
Strong Brand Recognition within First Year
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- A pretty impressive result for a one year old brand and in some great company, indicative of a great product and a well executed launch truly meeting a consumer need
The Clorox Company
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I will show you television advertising in a minute, our research shows that this consumer reads more magazines and spends more time on-line. Here’s print ad showing new dish liquid – notice the emphasis on performance Therefore, we will have a strong print and on-line presence. For those of you in the back, the copy on this print ad reads: Just what the world needs..another cleaning product. Made from plants and as powerful as traditional cleaners. Green Works is exactly what the world needs.
The Clorox Company
Green Works™ TV Spot
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- Spot shows new dish liquid but also hits on consistent theme of efficacy and natural ingredients
The Clorox Company
Strong Earth Day Retail Programs
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Like Brita, we had great retail support for Earth Day this year You will see in these images that GW is actually bundled with Brita - this was a new Greener Choices program Clorox initiated this year which helped retailers tie together various sustainable products for their consumers called Simple Steps, in the last case you’ll even notice this extended beyond Clorox products
The Clorox Company
Green Works™ Natural Cleaners Partners
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- Seven Green Works™ products are recognized for environmentally preferable chemistry by the EPA’s Design for Environment program - Green Works™ products carry the Sierra Club logo, and are proud to support Sierra Club’s efforts to protect the planet - Green Works™, along with Brita and The Clorox Company, committed $500,000 along with product donations to support the rebuilding of Greensburg, Kansas - Green Works continues to give back to communities through Green Heroes program * Awarded five, $10,000 grants to people working on eco-friendly programs in their communities - I also want to note that GW received a Silver CLIO award for the launch
The Clorox Company
Green Works™ Business Results
• 45%+ share of a natural cleaning category still growing by strong double digits*
• Number one in every category in which we participate
