leveraging environmental sustainability at clorox with brita, burt's bees, and greenworks
DESCRIPTION
Presentation on sustainability, marketing, product development, and portfolio management at Clorox with Burt's Bees, Brita, and Greenworks.Learn more about Sustainable Business & Design at: http://sustainablelifemedia.comTRANSCRIPT
Leveraging EnvironmentalSustainability for Growth
Bill MorrisseyThe Clorox Company
The Clorox Company
Total FY07 Sales of $4.8 Billion
Home Care (18%)
Auto Care (5%)
Charcoal (10%)
Dressings & Sauces(8%)
Cat Litter (7%)
Brita / Canada(7%)
Laundry Care (13%)
International (15%)
Glad (17%)
Sales of Professional Products Division allocated to each business unit
The Clorox Company
Environmental Sustainability provides businesseswith three fundamental opportunities
Risk Mitigation Footprint Reduction Growth
The Clorox Company
Make existing brands more sustainable
- redesign core brand offering
- line extend with sustainable option
Invest in new sustainable brands
- via internal development
- via acquisition
Door #3: Leveraging Sustainability for Growth
The Clorox Company
Make existing brands more sustainable
√ - redesign core brand offering
- line extend with sustainable option
Invest in new sustainable brands
√ - via internal development
√ - via acquisition
Door #3: Leveraging Sustainability for Growth
The Clorox Company
Consumer Insights
The Clorox Company
Consumers Seeking Sustainable Product Solutions Are No Longer a Small Niche
15% to 30% of consumers are both interested in ES and act on the interest
Segmentation Study Key ES Segment % of Population
2007 Clorox Eco Demand Study Eco Committed 15%
Average of five key syndicated Deep Greens 15-30%
segmentation studies
* This same research indicates that there is another 25-35% of consumers who areopen to environmental information and products
The Clorox Company
This Green Movement has transitioned from Niche to Mainstream only recently
0
5
10
15
20
25
30
35
40
Regularly Buy Green
Products
Never Purchase Green
Products
Aug. 2006
Dec. 2007
Mintel December 2007 online consumer survey, nationally rep sample of 3085 Internet users 18 and older.
Over 1/3 of consumers claim to regularly buy green products today
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
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
The Clorox Company
Three Clorox Examples:Personal Protection - Protection of Myself & My Family
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
Water Filtration
The Clorox Company
1
The More Sustainable Alternative to Bottled Water
The Clorox Company
60 million water bottles are thrown away every day in the US
Only 14% of these bottles are recycled
One Brita® pitcher filter can replace 300 standard 16.9 oz. plastic water bottles
- less to landfills
- saves over 15 lbs. of plastic
- avoids shipping bottled water from plants to retailers to home
Brita™ Sustainability Fact Base
The Clorox Company
Saves Money
Cheaper than bottledwater
Good For MeHealthy, great tasting
filtered water
Good for the planetReduces plastic bottle waste
Brita™ Water FiltrationA Broadened Positioning Addresses Consumer Needs on Multiple Vectors
The Clorox Company
Brita® Print Advertising
The Clorox Company
Other Brita® Marketing Initiatives
The Clorox Company
Brita® Business Results
Prior to repositioning as the sustainable option to bottled water:
Flat Sales Trend
For 9 months since launched this effort:
Double-Digit Growth
The Clorox Company
Burt’s Bees®
The Clorox Company
History of Burt’s Bees®
Founded in rural Maine in 1989
Burt, a beekeeper, and Roxanne, a graphic designer, started making candlesfrom a beeswax recipe found in an old almanac
Founding belief: natural products work with your body for the best results
Moved to Durham, NC in 1993
The Clorox Company
Burt’s Bees® Today
With word of mouth and grassroots initiatives, the company today is a leader in natural
personal care -- #1 or #2 in five categories
Natural personal care is a high growth $2.0B category in the US
15.0% growth vs. 3.2% for personal care (Source: Nutrition Business Journal)
Our Mission:To Make People’s Lives
Better Every DayNATURALLY
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The Greater Good Business Model
The Clorox Company
Burt’s Bees® 2020 Vision for Sustainability
LEED Platinum
IS0 14001
Zero Waste100% Renewable
Energy
Green BuildingEliminate WasteEliminate Carbon
100% Natural
100% PCR/ Biodegradable
100% Employee
Engagement
Sustainable ProductEmployee Engagement
Sustainability Goals:The Greenest Personal Care Company on Earth
The Clorox Company
Burt’s Bees® Natural Personal Care Products
Lip• Lip Balm• Lip Shimmers• Lip Gloss
Face• Day Creams• Night Creams• Eye Creams
Body• Hand Creams• Foot Creams• Body Lotions
Hair• Shampoos• Conditioners• Hair Treatment
Baby• Powder• Oil• Lotions
Outdoor &Natural
Remedies• Ointments• Insect Relief• Sun Care• Lip Balm
GiftsKits
Leading natural personalcare products company
merged in 11/07
The Clorox Company
Burt’s Bees® Advertising
The Clorox Company
Burt’s Bees® Advertising
The Clorox Company
Burt’s Bees® Advertising
The Clorox Company
New Distribution into Mass Merchandiser & Grocery ChannelsFueling Continued Growth
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Sustainable Practices Yield Sustainable Results!
Performing ahead of valuation
Mid 20% growth in last five years
Last two quarters continuing at same rate
The Clorox Company
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
The Clorox Company
Green Works™ Natural Cleaners are formulated to be…
Recyclable Packaging
With Ingredient Transparency
From Plant-Based Ingredients
Eco-Friendly
Non-Allergenic
Non Animal-tested
Biodegradable
Natural Criteria
(1) Green Works Natural Bathroom Cleaner product is not DfE certified
The Clorox Company
Perform as well as or better than leadingconventional cleaners
Green Works™ natural cleaners really work!
A Different Kind of Product
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The GreenWorks™ Vision:
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A mainstream consumer, practical about her green choices
Looking for help on how to make small steps to live greener
Not willing to sacrifice on efficacy, price, availability, or brand
Targeting a Different Consumer
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A More Powerful Print Campaign
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Green Works™ Natural Cleaners 3rd Party Support
Green Works™ products are recognized for environmentally preferable chemistry bythe EPA’s Design for Environment program
Green Works™ products carry the Sierra Club logo, and are proud to support SierraClub’s efforts to protect the planet
The Clorox Company
GreenWorks™ Natural Cleaners Earth Month Activity
Home Depot:- Register displays- Shopping bag give-away- TV
Food Lion:- Feature ad- End Cap with Scott Naturals- Free bag offer w/coupons
Costco:- Mailer & coupon- Demos- Pallet displays
Wal*Mart:- 30 Day event- Shelf signage- Pallets with Sierra Club- Parade ad
The Clorox Company
Green Works™ Product Line is Exceeding Initial Expectations
Launch
Reco
Sept Fcst Oct Fcst Nov Fcst Dec Fcst Jan Fcst Feb Fcst*
Year One Sales Expectations
