Clorox Strengths And Weaknesses

Clorox is considered the most powerful brand due to the brand’s long relationship with bleach, since 1913 where $100 were set aside to set up America’s first commercial-scale liquid bleach factory. The notion of marketing that using bleach means clean. For a long time, The Clorox Co. used sponsorships as a platform to connect with consumers and driving sales. This company is now taking marketing strategy to another level. Clorox followed The Coca-Cola Co. by creating an in-house entertaining marketing team. The game plan to surpass the competition is to build on past success by using more powerful and integrated campaigns. An example of their new strategy was with the partnership with Univision and the H20 Music Festival in Dallas and Los Angeles. Univision took a multicultural approach, including Mexican bands, Snoop Dogg, and John Legend.

In other words, some of the strengths in The Clorox Co.

has the leading position in the market with more than 60 brands. This company thrives on strong customer relationship ensures the brand loyalty of customers. A strong community presence by participating in community welfare programs such as helping kids with their power of a brighter future program, helping people to fight with seasonal flu and providing help for American Red cross programs. Some of their weaknesses entails high dependency on the US market and 45% of revenue is from top 5 customers of the company. Some opportunities that could help explore new markets such as production of more personal care products and enhancing its business in Latin America. As for the threats, the introduction of more private brands in market of cleaning products. Being in competition with competitors like Unilever and Colgate. Clorox must face intense allegation from feminist organizations for their promotional slogans. Their slogans interpreting laundry as a job for women only initiates reactions from the largest part of the community effecting sales of

Clorox.
Despite the company’s threats, Clorox has been portrayed in the media through earner media coming from creating social media ads that their consumers share. The usage of public relations is to get earned media impressions from the sharing of social media ads that play a huge role in measuring the organic social campaigns. Over 90% of their content is paid stated the director of PR and social media, David Kellis. The sales are expected for 2017 to reach $5.2 billion for household surface cleaners and all-purpose cleaners representing 26% of total sales. The future of this brand is predicted to grow 9.5% during the next year. Clorox is expecting a 21% increase in earnings in the three years’ time. This means expecting the earnings per share to grow to $6.06 levels. The same period revenue is expected to grow from $5,761 million to $ 6.35 billion in 2019 and profit is predicted to escalate from $648 M to $779 M in 2019, roughly 1.2x. Margins are predicted to be respectable 12.3% during this time as well. Clorox has underperformed the Household Products industry over the past year. Clorox has a low amount of equity, but it is expected to improve in 3 years with an impressive return on equity (ROE).
Given these points above, Clorox has engaged with the millennials of this time by surprising a lot of basketball fans by using Stephen Curry from the Golden State Warriors to promote its Brita water filters and the idea of drinking more water in general. Being able to have Stephen Curry was a great choice to get in touch with the millennial consumers. Also, extending to their consumers that whoever makes the most compelling ad about the benefits of drinking water will win a winning spot to feature Mr. Curry.