brand management agenda introductions - my background clorox company overview consumer driven...
Post on 19-Dec-2015
218 views
TRANSCRIPT
Brand Management
Agenda
Introductions - My Background
Clorox Company Overview
Consumer Driven General ManagementBrita Case
Q&A
The Clorox Company
Performance
Portfolio of Strong Brands
Business Results
International Growth
Portfolio
L au n d ryH om e C lean in g
C loroxE q u ity
H om eC lean in g
H ou seh o ldP rod u c ts
D ress in g& S au ces
P ro fess ion a lP rod u c ts
F oodP rod u c ts
C h arcoa l C atL itte r
In sec tic id es A rm or A ll
K in g s fo rdP rod u c ts
In te rn a tion a l B rita
C lo roxC orp ora te
Just acquired First Brands:- STP, Glad Bags, Johnny Cat- Complete restructure in progress
Clorox Brands are Market Leaders
#1 or #2 in Nearly Every Category!
Home Cleaning Laundry Additives Salad Dressing/Barbecue Sauce Insecticides Home Water Filtration System Automotive Care Products Charcoal/Grill Products
Revenue Growth(Sales: $Millions)
1,547 1,6341,837
1,9852,224
2,5332,741
0
500
1,000
1,500
2,000
2,500
3,000
1992 1993 1994 1995 1996 1997 1998
Profit Growth1992-1998 Net Earnings ($MM)
99
167180
200222
249
298
0
50
100
150
200
250
300
1992 1993 1994 1995 1996 1997 1998
Revenue Growth
10.5%
6.8%
5.2%
7.0%
3.1%
0%
2%
4%
6%
8%
10%
12%
Clorox Gillette Procter &Gamble
Colgate GeneralMills
Clorox is Growing Faster than Its Peers
% Average Annual Growth Rate1992-1998
5-Year Total Shareholder Return
1993 1994 1995 1996 1997 1998
CloroxS & P 500Peer Group
$243
5-Year Total Shareholder Return
1993 1994 1995 1996 1997 1998
CloroxS & P 500Peer Group
$243
$281
5-Year Total Shareholder Return
1993 1994 1995 1996 1997 1998
CloroxS & P 500Peer Group
$417
$281
$243
Clorox Introduced a Record 41 New Products Worldwide in 1998
8
15
28
38 3639 41
05
1015
202530354045
1992 1993 1994 1995 1996 1997 1998
New Products
Clorox is Aggressively Pursuing
Acquisitions to Fuel Growth
Pine-Sol & Combat 1991
S.O.S 1993
Black Flag 1995
Armor All 1997
Lestoil 1996
8 Int’l Acquisitions 1994/95 2 Int’l Acquisitions 1997
7 Int’l Acquisitions 1998
First Brands 1999
Brand Year
International Growth
Clorox International business has increased four times since 1992
1992 1998
5% 18%
Consumer Driven General Management
Brita Case Study
Why was Clorox interested in Brita?
Brita presented a growth opportunity and a solution to consumer need:
High growth in bottled water category Expensive, inconvenient solution
Consumer concern about air/water quality
Medical studies on negative effects of lead
Brita Vision
Change the way Americans drink tap water
Original Objectives: 70% awareness 8% household penetration Comparable profit margins
Early Consumer Insights
Purchase of Brita linked to dissatisfaction with taste of tap water
Brita Early AdoptersWater involved (5+ glasses/day)Believe that drinking water is a way to feel healthyUrban, high income & educated
Filtration not broadly recognized as alternative to tap waterDirect marketers of in-line systemsBottled water
Early Brita Copy Focused on educating consumer
Benefits: Brita makes tap water taste great
Support: Removes impurities like lead and chlorine
“Works/Taste”
The Beginning1988-1992
Business Issues: Cost Structure
Organization Structure
Financial
Distribution Channels
Fish or Cut Bait 1993
Brita had achieved profitability Awareness: 22% HH penetration: 2% Distribution in 11,000 stores
Long term commitment to Brita Distribution expansion plan Increased marketing
investment
New pitcher models Expanded consumer
understanding
0 0 0 1 2 205
1015
2025
1988 1989 1990 1991 1992 1993
HH penetration
1988 1989 1990 1991 1992 1993
Profits
0
8% Target
Increasing Consumer Understanding
Brita Users are drawn to the brand because it gives them clear, clean, refreshing water and makes them feel that they have done something good for themselves.
Values Emotional Benefit Functional Benefit Brita Features
- I care aboutdoing good thingsfor myself
- Healthy- Look/feel good- Refreshing- Not worried
- Clear, cleanrefreshing water
- Removesimpurities- Makes tap watertaste great
Consumer Beliefs Water is life essential Water must be pure to help me be my best Water has impurities; often can’t see or taste them People & their activities cause impurities Best water is pure from nature (waterfall)
Brita Copy
Focused on water in nature & leverage emotions & benefits
Benefits: Brita makes your tap water clean, clear and refreshing
Support: Removes impurities like lead and chlorine
“There was a Time”
Open the Floodgates!1993-1996
Aggressive Growth
Awareness: 40%
HH penetration doubled each year to 9% in 1996
Expanded Distribution from 11,000 to over 30,000 stores
2 26
9
05
1015
2025
1993 1994 1995 1996
HH penetration
1993 1994 1995 1996
Profits
0
8% Target
Open the Floodgates!1993-1996
Business Issues
Geographic Expansion
Filter Manufacturing
Infrastructure
2 26
9
05
1015
2025
1993 1994 1995 1996
HH penetration
1993 1994 1995 1996
Profits
0
8% Target
Ride the WaveToday
Exceeded Brita Vision objectives Awareness: 70% HH penetration: 14% Market Share: 71% Brita user loyalty: 85% Distribution in 40,000+ stores
Over 70 failed competitors
One of our top 4 revenue brands Continues to grow at double
digit rate
1 2 26
913
16 18
0
5
10
15
20
25
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
HH penetration
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Profits
0
8% Target
Future Challenges
Category maturity Drive filter sales Encourage current users to replace their pitchers
Competition Technological leadership
Protect filter annuity from “universal filters”
Brita Equity Invest in new products or current line?
Where should we take the Brita equity
Consumer Driven General Management
Recognized Marketing Expertise
In-Depth Understanding of Our Consumer
General Management Responsibility
Brand Management
Skill Sets
Leadership
Interpersonal Skills
Results Focus
Strategic Thinking
Analytical Problem Solving
Innovativeness