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New marketing strategy for Clorox
Clorox case study analysis
Clorox case study
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Introduction
Our company, Tech Shield, would like to evaluate The Clorox Company for a potential investment opportunity. For years, Tech Shield has built The Clorox Company’s supply chain machines that make the company’s famous household products. It would be ideal to invest a significant amount of capital in a company Tech Shield has done business with before, but evaluation is still necessary of compatible companies. The Clorox Company is a ninety-six-year-old international corporation dedicated to producing home care products such as Clorox Bleach, Green Works, Fresh Step cat litter, Glad products, and much more. The company’s mission is to make life easier for consumers, and is a business that reaches far beyond cleaning products (). The Clorox Company is recognized under the household products industry, the healthcare industry, and food industry. The competitive strategy the corporation has been an industry-wide differentiation approach in all industries. Henceforth, the company tries to make better quality products within the industry the product is associated with. Tech Shield should invest in The Clorox Company because the company has a strong business ethics that assure employees as well as the public of their integrity, they have done a significant amount of research and
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There is always room for improvement and innovation. Over the years, The Clorox Company has found ways to reach out to the public for input, and new ideas. They established “a cross functional new ventures team that is charged with looking externally to find the next big new products and ideas” ( p.80). They do not just come up with ideas, instead they find what can be improved and what consumers want to see (). The strategy is efficient, because the more they create products consumers want to see, the more the products are
Star Appliance is looking to expand their product line and is considering three different projects: dishwashers, garbage disposals, and trash compactors. We want to determine which project would be worth doing by determining if they will add value to Star. Thus, the project(s) that will add the most value to Star Appliance will be worth pursuing. The current hurdle rate of 10% should be re-evaluated by finding the weighted average cost of capital (WACC). Then by forecasting the cash flows of each project and discounting them by the WACC to find the net present value, or by solving for the internal rate of return, we should be able to see which projects Star should undertake.
Exxon Mobil is a great example of a corporate giant. It all started in 1870, when JD Rockefeller founded U.S. Standard oil a company that will go on to be the most profitable in the world. In 1911 the company split up into 34 different companies, amongst these companies was Vacuum oil company that will later be called Mobil Oil and Jersey Standard which was renamed to Exxon corporation. In 199 the two companies decided to work together again, this was the birth of Exxon Mobil.
Background: Merck & Co. is an American pharmaceutical company and one of the largest pharmaceutical companies in the world. In 1971 the United States approved the use of an MMR vaccine made by Merck, containing the Jeryl Lynn strain of mumps vaccine. In 1978 Merck introduced the MMR II, using a different strain of the rubella vaccine. In 1997 the FDA required Merck to conduct effectiveness testing of MMRII. Initially it was over 95%; to continue the license; Merck had to convince the FDA that the effectiveness stayed at a similar rate over the years.
Under what conditions might the parties to the alliance discussed in this case dissolve or end the relationship?
Another marketing strategy that Clorox is employing is consumer fragmentation. Through consumer fragmentation, the company is able to group its target consumers into groups that can be served with a particular advert or marketing approach. Clorox also intends to increase its brand investment behind superior products and more targeted 3D plans. The company appreciates the influence that media has on the purchasing decisions of consumers, it therefore wants to evolve its demand-creation model of 3Ds in the face of increased fragmentation of retailers and consumers. The three D’s of the model stand for desire, d...
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
Each division has its own brand management, sales, finance, product development and operations line management and was evaluated as a profit center.
Do you think strategic management had contributed to the Clorox Company’s success? Why or Why not?
Innovation is important and is used to create a commercial products. Each industry uses innovation in order to create new products or to enhance an existing product. Clorox uses innovation every day in order to be competitive in the market, and to increase customer value. They manufacture various products and innovation is key to their success. Clorox uses internal innovation and has its own Research and Development department (R&D) with advance technology. They are also able to produce patentable processes and goods that are innovative in nature.
The company shows a flat organization in which there are few layers of management but has broad span of control. According to the chart, the company develops a decentralized authority in the level of their management due to which they focus more on adapting to what customer wants based on decision making from the lower level managers who are more familiar in the local conditions. This type of authority allows them to understand customers such as patients’ needs in order to develop strategies to fulfill this requirement According to Figure 1, they primarily focus more on the health care system and invested in about $7.5 billion dollars in research and development to create a strong product portfolio. The culture of this organization demonstrates a formal organization in order to guide the lines of authority as well as the responsibility for the company. According to Johnson and Johnson Credo statement, their main focus is towards the responsibilities of the doctors, nurses, and patients as well as their employees. They also state their growing responsibilities toward the shareholders and to the communities in order to research and develop new innovations in towards civic improvement to the communities. This entails that they fully care for their customers and employees in which its shows in
Merck & Co. has to be aware of the economy as with any industry. Within the recession, more and more were looking towards generic substitutes. This can at times not be a problem with patents. However, once a patent is up, a competitor who develops generic versions of Merck’s products becomes a low-cost competitor. However, during the recession from 2008 – 2009, Merck didn’t see any drop in sales. Actually, they were able to keep a continual increase in sales and net income.
Second, we want to create innovative and sustainable products. We live to innovate -- it’s who we are. When our corporate responsibility initiatives begin leading us to new product development, it brings a new energy to our efforts. Whole divisions in our company open up to the prospects. Eyebrows are raised. There are results already: We’re finding ways to eliminate the toxic chemicals commonly used in making products and materials and teams are creating business models for generating revenue from ground-up old shoes; designers are developing products made of recycled polyester or organic cotton.
When analyzing a company for investment, there are many quantitative and qualitative measurements to be considered. Not only is the financial information important, but so too is the analysis of the company’s ethics, political environment, and long-term sustainability of the company’s services. In analyzing Kinder Morgan, the quantitative data considered were things such as the trading volume, average stock prices, as well as financial ratios such as the liquidity ratio or earnings per share ratio. Qualitatively, Kinder Morgan has many community outreach programs, sound political ethics, as well as a desire to protect the environment.
In 2011 PepsiCo announced the launch of their Social Vending System. This system featured a full touch interactive screen. A consumer can select a beverage and enter the reciepent's name, mobile number, and personalized message and gift it with a video. PepsiCo uses technology to their advantage for global implementation.The company uses media sites in multiple was as advertisement and marketing tools.
The biggest challenge for me was how to change the perception of customers who have been using existing products on the market. Generating ideas to solve problems should not be restricted to existing products on the market. One of the interesting approaches I learned from opportunity evaluation was to create surveys and conduct interviews to further establish the needs of the general public. For example, in the survey my group created for our new product called I-Band, we were able to receive many positive feedback and ideas for improvements on our product. I learned that a survey which allows users to remain anonymous generates a wider variet...