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please work on this part The Competitive Threat/Opportunity and Achieving Competitive Advantage. Is it a crowded field, or one ripe for entry? Think about how Porter’s 5 Forces might apply and whether those forces are attractive or notdo it for 4 countries, South Africa, Brazil, Indonesia and India.i will upload the PowerPoint for the team product to undestand more
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Getting Ready to Go International
Major Team Assignment #3: WGB 650
The domestic launch of your new product went well. As a result, your team has been given the go-ahead
by senior management of Clorox to explore an international launch. The caveat is that your management
team eventually must choose from among the B.R.I.C.S. (Brazil, Russia, India, China, South Africa), the
M.I.S.T. (Mexico, Indonesia, South Korea, Turkey), or another emerging economy in Africa such as
Nigeria or Senegal.
Why this limitation? Clorox thinks that opportunities in parts of the developed world (e.g., Canada,
Western Europe, Japan, and Australia) will not require quite as much product/market adaptation.
However, they need A-teams like yours to figure out how to identify the best place(s) in the emerging
markets for your already successful domestic product.
Your mission in this assignment is to do the preliminary legwork regarding where your product has the
greatest attractiveness for investment—using the next three years as your time horizon. Using the
domestic market as an important benchmark, you will identify and discuss the salient factors in the
decision-making process for including or excluding a particular country for business entry.
This is an important Business Review. The assignment is an engaging written report explaining your
international goals and methodology used in selecting where to take your domestic new product. It
should be viewed as a competition with the other A-teams presenting their arguments to management.
Clorox’s resources are scarce; you want get your fair share!
[Your written paper, excluding the Executive Summary, should not exceed ten pages in length, but
appendices are excluded from this page restriction; you may include as many appendices as are useful, but
they must be referenced or referred to in the body of the report. Remember that an Executive Summary is
not an introduction; it should summarize the entire scope, methodology, and recommendations that are
more fully developed in the body of the report. Your Executive Summary should not exceed two to three
pages in length. It may be helpful to add a Table of Contents. A Reference Page is required; use APA
citation.
The report should be single-spaced; all charts, text, and appendices should be readable to all the Baby
Boomers on the senior management team—translation 12 point type.]
The components of the pre-launch international review should include or address the following:
➢ An Executive Summary. In this particular assignment, you should adopt a product
manager/general manager point-of-view, identifying the consumer/marketing/competitive
environment that would enhance your product’s chances for success and conversely, the
consumer/marketing/competitive environment that would dampen your product’s chances for
success. In essence, you are trying to gauge market potential for a product like yours in each of
the eight countries as well as your own product’s ability to be a contender in that space.
➢ Consumption Habits and Trends. Your product itself will dictate which consumption habits and
trends are relevant and should be examined. As an example, these might include per capita
consumption of household cleaning, personal care, or wellness products in general and by
category. There also may be cultural habits or restrictions that enhance or detract from your
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product’s appeal.
➢ Attitudinal Trends. These should include the relevant attitudes that have a bearing on your
product’s consumer acceptance. For instance, are there societal forces that work for or against the
category your product falls into? These could include socio-economic trends, demographic trends,
leisure-time trends, cultural attitudes, et cetera. How deeply entrenched are these attitudes, are
they changing?
➢ Other Relevant PESTEL Factors/Trends. Identify any other relevant PESTEL factors/trends
that should be examined in evaluating the market potential in each country.
➢ The Competitive Threat/Opportunity and Achieving Competitive Advantage. Is it a crowded
field, or one ripe for entry? Think about how Porter’s 5 Forces might apply and whether those
forces are attractive or not.
➢ Distribution. To what degree is there a distribution infrastructure that is conducive to the launch
of your product?
➢ Advertising. To what degree is there an advertising infrastructure that is conducive to the launch
of your product? Who in the household is the targeted buyer? What is the target market? Who
would be the early adopters?
➢ Benchmark each Country. Provide a solid rationale for the relative attractiveness of your
product in at least eight countries, benchmarked against those U. S. statistics or attributes you
know to be most important for commercial success.
➢ Identify Your Team’s Top Three (3) Country Finalists. These would be the three countries
you will continue to include in your future international business research. Why does your team
feel that way? What areas of further research seem warranted to make your final country
selection?
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Clorox Natural
Essence
Product Concept
Natural Essence
The Clorox All-Purpose Natural
Essence disinfecting cleaner,
combining natural ingredients and
aroma therapy scents.
Packaging: sleek, modern and
minimalistic.
Ingredients: natural disinfectants
and essential oils.
Unique Value
Proposition
There are other options for
eco-friendly cleaning
solutions.
DIFFERENTIATOR:
Combining trusted disinfectant
eco-friendly solutions, with
natural ingredients + aroma
therapy scents that offer
multiple consumer benefits.
How does this product
fulfill consumers?
Functionally: Powerful cleaning that is safe
for various household surfaces without using
basic harsh chemicals.
Emotionally: Natural scents that creates up
lifting and relaxing properties for consumers.
Socially: allows consumers to align with their
eco-friendly and sustainable values that
benefit their bodies and the environment.
New Product Rational
Increasing awareness:
Awareness on harmful chemicals that
affect environment!
Consumers are seeking cleaning products
that do not compromise cleaning power.
TRENDS TO LEVERAGE:
Natural, plant-based ingredients = safe and
non-toxic to households
Essential ingredients
aroma therapy oils
Market and Product category
analysis
2024 revenue projection for
Household Cleaners market in the
U.S. is $7.98B
Household Cleaners market
expected to grow at 2.74% CAGR
until 2028
2023 All purpose cleaner/disinfectant
product market revenue $1.70B
Increasing demand for sustainable
eco-friendly products, but traditional
chemical-based products still
dominate the U.S. market
Technological advancements being
leveraged to develop products that
outperform traditional alternatives
Competitors
Household cleaners
brand shares
Mr. Clean (P&G) is the
leader
Clorox products make
up 2% of the market
*This is the entire
household cleaners
market and not
specifically all purpose
cleaner
Product and Target
Consumers
▪
▪
Clorox Natural Essence Collection
product will address the growing
consumer demand for effective
and environmentally responsible
products.
With an increasing awareness of
the harmful effects of
conventional cleaning chemicals
on health and the environment,
consumers seek alternatives that
do not compromise cleaning
power.
Target Consumer Profile
Age: Between 25 to 44
Gender: Male/Female
Geographic Location: California is the test market
Income Group: $50,000 a year
Lifestyle: Environmentally conscious consumers
Product Usage Habits: Normal product Usage
Attitude To Price: Willing to pay premium on an eco-friendly product
Loyalty: High loyalty to products that align with environnmental
values
Exposure To Media: Highly exposed
Market Segmentation Map
Category
Segmentation
Age
18-24
25-44√
Gender
Male √
Female √
Lifestyle
Product and price-
Environmentally
conscious
conscious consumers
consumers
√
Pricing
Value
Premium √
Channel of
Grocery chains √
Drug stores
Specialty health
stores √
Distribution
Product benefits
45 and above
Efficacy
eco-friendliness
Both √
Online platforms √
Competition Segment and Rationale
THE CLOROX ALL-PURPOSE NATURAL
ESSENCE DISINFECTING CLEANER WILL,
THEREFORE, BE COMPETING WITH
CLEANING SOLUTIONS SEGMENTS THAT
TARGET CONSUMERS WHO ARE
ENVIRONMENTALLY CONSCIOUS AND
BETWEEN THE AGES OF 25 AND 44.
SPECIFICALLY, IT WILL FOCUS ON
CONSUMERS SEEKING EFFECTIVE
CLEANING SOLUTIONS ALIGNED WITH
THEIR SUSTAINABLE LIFESTYLES AND VALUES.
THE SEGMENT IS SPECIFICALLY FOR
ENVIRONMENTALLY CONSCIOUS
CONSUMERS KEEN TO ENSURE THEIR
BEHAVIORS ALIGN WITH THEIR VALUES.
Brand Name and
Trademark
Clorox Natural Essence
Strong Brand Name with Clorox = effective
cleaning and disinfection.
+ “Natural Essence = synonymous with natural
cleaning + essential smelling oils.
Packaging, Variants
and Sizing
Packaging:
Recyclable bottles made from post consumer
recycled plastic.
Transparent design to display the clear solution
or a variant natural packaging with earth tones.
Variants: Both variants will include same
NATURAL cleaning solution
1. Lavender and Eucalyptus
2. Tea Tree oil + lemon
Product Positioning Statement
“For environmentally conscious consumers aged 25 to 44 who desire not only an
effective cleaning solution but also one that enhances their home environment
with natural scents; Clorox Natural Essence creates the unique benefit of
combining Clorox’s trusted disinfecting power with the soothing experience of
aromatherapy through essential oils. This unique combination harnesses Clorox’s
proven effectiveness and commitment to sustainability, ensuring consumers a
clean, healthy home with the added advantage of natural and mood-altering
scents.”
Consumer Promotion
strategy
Clorox all-purpose Natural Essence disinfecting
cleaner will be promoted to consumers using
green marketing strategy using storytelling that
is purposeful on the ecofriendly initiative
The approach will enable the company to
disseminate information to targeted consumers
using social media platforms connecting with
them through the environmental concerned
mindset
The approach is selected based on the fact
that the targeted consumers are
environmentally conscious and are drawn to
products which align with their values.
Advertising and promotion
Media Strategy
Consumer Promotion Strategy
Trade Promotion
Digital Platforms, Targeted Ads
Online Discounts
– Facebook, Twitter, Instagram,
YouTube
– Promoting consumer engagement
Seasonal Campaigns
– Live displays of the product being
used at select stores
In-Store Displays
– Securing prominent shelf
space
– Temporary discounts to
retailers to encourage
stocking the product
– Spring and Fall
Sampling Events
Monthly Advertising Spending
Chart
In
‘000’
s
Jan
Feb
Mar
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Total
Media
40
40
100
90
80
50
50
35
110
100
50
30
775
Cons 15
umer
Prom
otion
10
45
55
50
30
20
20
40
35
10
5
335
Trad 30
e
Prom
otion
35
55
65
45
35
33
45
60
50
25
25
503
Distribution strategy
Regional Market – California
Advantages:
Eco-conscious Consumer Base
Innovative Retail Market
Tech-savvy Consumers
Large and diverse consumer base
Statistics
Population of our
target market
(aged 25-44)
11,282,671
Largest segment
Medium
Household
Income
Total Households
Aged 25-29
$91,551
13,550,586
2,992,210
(7.58% of total
population)
Why California?
What makes California an ideal test
market?
6th Greenest state in the US
Most eco-conscious shoppers in the
country
Over 2 in 5 Californians (42%) consider the
environment before making purchases
Highest in the US
Millennials and Gen Z are a key
demographic in the state
Study’s show they are more likely to have
sustainable buying habits
27% more likely to purchase eco-friendly
products
Channels
Given the high demand for sustainability
these channels would be beneficial as they
emphasize the value of our product
Specialty Health Stores
Cater to the eco-conscious consumer
Erewhon, Rainbow Acres, Sunshine
Natural Foods
Online Retail
Offer a direct path to our target market
and keeping up with consumer
shopping trends
Clorox.com, Amazon
Grocery Chains and Drug Stores
Widespread presence and frequent
consumer foot traffic
CVS, Whole Foods, Trader Joes, Ralphs
Pricing Comparison
Product
Price (32 oz)
Channel
Lysol All Purpose Lemon
Breeze
$5.49
In store (Vons)
Clorox Original All
Purpose Cleaner with
Bleach
$5.99
In store
SC Johnson Family
Guard Disinfectant
Cleaner Citrus
$4.59
In store
ECOS Plant-Based MultiSurface Cleaner
$10.49
Amazon
Absolute Green All
Purpose Fresh Lemon
$8.79 (25 oz)
In store (Whole Foods)
Pricing strategy
Vons grocery store in California has All-Purpose cleaners ranging
from $3.99 – $5.49 for 32oz
Amazon has eco-friendly All-Purpose ranging from $0.18-$0.33/fluid
oz ($5.76-$10.56/320z)
Natural Essence trade price will be $5.33
Natural Essence retail price will be $7.99
This is higher than average shelf prices of the standard All-Purpose
cleaners, but we have additional value added with the essential oils
aromatherapy and can charge more
Sales forecast
Total # trial purchases: 290,432
Total # repeat purchases: 435,648 (Average # purchases per year = 4)
Pipeline sales: 60,500
Sales forecast volume (units)year one: 786,580
Sales forecast value ($) year one: 786,580 * $5.33 (trade price)
= $4,192,471
Total All purpose cleaner market in U.S 2023: $1,707,300,000
% of overall market 0.25%
Marketing Budget Year 1
$ ‘000s
% of sales
Sales
$4,192
100
COGS
$1,886
45
Gross Margin
$2,306
55
Distribution Expense
$209
5
Advertising Expenses:
-Advertising-Targeted ads
$419
10
-Advertising-Traditional
commercials
$335
8
Total advertising
$755
18
Promotion Expenses:
-Consumer Promotions
$335
8
-Trade Promotions
$503
12
Market Research
$168
4
Total Direct Marketing Expenses
$1,761
42
Product Profit Contribution
$335
8
Strategic fit
Clorox is driven by their IGNITE strategy
and integrated ESG approach
The Clorox Natural Essence All-Purpose
Cleaner aligns with the company’s
strategic direction towards sustainability
and innovation
Meeting Consumer Trends
64% of Global Consumers placing a significant
interest in sustainable products despite price
concerns
Online shoppers lead to a 65% increase in making
a sustainable purchase
78% of consumers in California indicate
sustainability is important, 62% actively seek
sustainable products
Risk vs
Reward?
Risk
Market Acceptance
Pricing Strategy
Rewards
Brand Reputation
Product Differentiation
in a growing segment
Justifiable Approach
References
GreenPrint Survey Finds Consumers Want to Buy Eco-Friendly Products, but Don’t Know How to Identify Them | Business Wire
Household Cleaners: market data & analysis | Statista (oclc.org)
Household Cleaners – US | Statista Market Forecast
United States: household cleaners sales by type 2023 | Statista (oclc.org)
https://www.linkedin.com/pulse/5-green-marketing-tactics-authentic-eco-friendly-promotion-saxena
https://www.almondsolutions.com/blog/5-must-have-green-marketing-strategies-for-2022-and-beyond
California Population by Age – 2023 California Age Demographics | Neilsberg
Research: Consumers’ Sustainability Demands Are Rising (hbr.org)
Survey: Californians Are Most Likely to Consider the Environment Before Every Purchase (prnewswire.com)
52 Huge Environmentally Conscious Consumer Statistics 2024 (theroundup.org)
Search Results | Vons
Amazon.com : eco friendly all purpose cleaner
Cleaner Multi Purpose Lemon, 25 fl oz at Whole Foods Market
Sustainable Consumers 2023: Megatrends and Key Insights – Euromonitor.com
The Elusive Green Consumer (hbr.org)
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