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Leveraging Environmental Sustainability at Clorox with Brita, Burt's Bees, and Greenworks
 

Leveraging Environmental Sustainability at Clorox with Brita, Burt's Bees, and Greenworks

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Presentation on sustainability, marketing, product development, and portfolio management at Clorox with Burt's Bees, Brita, and Greenworks. ...

Presentation on sustainability, marketing, product development, and portfolio management at Clorox with Burt's Bees, Brita, and Greenworks.

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    Leveraging Environmental Sustainability at Clorox with Brita, Burt's Bees, and Greenworks Leveraging Environmental Sustainability at Clorox with Brita, Burt's Bees, and Greenworks Presentation Transcript

    • Leveraging Environmental Sustainability for Growth Bill Morrissey The Clorox Company
    • Total FY07 Sales of $4.8 Billion International (15%) Home Care (18%) Cat Litter (7%) Dressings & Sauces Laundry Care (13%) (8%) Charcoal (10%) Brita / Canada (7%) Auto Care (5%) Glad (17%) Sales of Professional Products Division allocated to each business unit The Clorox Company
    • Environmental Sustainability provides businesses with three fundamental opportunities Risk Mitigation Footprint Reduction Growth The Clorox Company
    • Door #3: Leveraging Sustainability for Growth  Make existing brands more sustainable - redesign core brand offering - line extend with sustainable option  Invest in new sustainable brands - via internal development - via acquisition The Clorox Company
    • Door #3: Leveraging Sustainability for Growth  Make existing brands more sustainable √ - redesign core brand offering - line extend with sustainable option  Invest in new sustainable brands √ - via internal development √ - via acquisition 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 are open to environmental information and products The Clorox Company
    • This Green Movement has transitioned from Niche to Mainstream only recently Over 1/3 of consumers claim to regularly buy green products today 40 35 30 25 20 Aug. 2006 15 Dec. 2007 10 5 0 Regularly Buy Green Never Purchase Green Products Products Mintel December 2007 online consumer survey, nationally rep sample of 3085 Internet users 18 and older. The Clorox Company
    • Consumers are Most Concerned with Their Own Environment Consumer Definition of “My” Environment vs. “The” Environment The Environment My Environment Work Family/ Home World Parks Car Community Body Yard Local Natural Environment Within My Control — Outside of My Control “Immediate” — “Long-Term” The Clorox Company
    • Four Key Motivators Drive Interest in the Environment Personal Protection Cost The environment Is getting worse and I By reducing and re-using my family’s need to protect myself and my family consumption, I can save money Status Altruism Letting others know I care about the Improving the environment by minimizing environment shows that I am responsible 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
    • The More Sustainable Alternative to Bottled Water 1 The Clorox Company
    • Brita™ Sustainability Fact Base  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 The Clorox Company
    • Brita™ Water Filtration A Broadened Positioning Addresses Consumer Needs on Multiple Vectors Good For Me Saves Money Healthy, great tasting Cheaper than bottled filtered water water Good for the planet Reduces plastic bottle waste 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 candles from 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 Day NATURALLY The Clorox Company
    • The Greater Good Business Model The Clorox Company
    • Burt’s Bees® 2020 Vision for Sustainability Sustainability Goals: The Greenest Personal Care Company on Earth Employee Engagement Sustainable Product 100% Employee 100% Natural Engagement 100% PCR/ Biodegradable Eliminate Carbon Eliminate Waste Green Building 100% Renewable Zero Waste LEED Platinum Energy IS0 14001 The Clorox Company
    • Burt’s Bees® Natural Personal Care Products Leading natural personal care products company merged in 11/07 Lip Hair Face Baby • Lip Balm • Shampoos • Day Creams • Powder • Lip Shimmers • Conditioners • Night Creams • Oil • Lip Gloss • Hair Treatment • Eye Creams • Lotions Outdoor & Kits Gifts Natural Body Remedies • Hand Creams • Ointments • Foot Creams • Insect Relief • Body Lotions • Sun Care • Lip Balm 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 Channels Fueling Continued Growth The Clorox Company
    • 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… Natural Criteria Biodegradable  Eco-Friendly  From Plant-Based Ingredients  Non Animal-tested  Non-Allergenic  With Ingredient Transparency  Recyclable Packaging  The Clorox Company (1) Green Works Natural Bathroom Cleaner product is not DfE certified
    • A Different Kind of Product Green Works™ natural cleaners really work! Perform as well as or better than leading conventional cleaners The Clorox Company
    • The GreenWorks™ Vision: The Clorox Company
    • Targeting a Different Consumer  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 The Clorox Company
    • A More Powerful Print Campaign The Clorox Company
    • Green Works™ Natural Cleaners 3rd Party Support  Green Works™ products are recognized for environmentally preferable chemistry by the EPA’s Design for Environment program  Green Works™ products carry the Sierra Club logo, and are proud to support Sierra Club’s efforts to protect the planet The Clorox Company
    • GreenWorks™ Natural Cleaners Earth Month Activity Food Lion: Costco: Wal*Mart: - Feature ad - Mailer & coupon - 30 Day event - End Cap with Scott Naturals - Demos - Shelf signage - Free bag offer w/coupons - Pallet displays - Pallets with Sierra Club- Parade ad Home Depot: - Register displays - Shopping bag give-away - TV The Clorox Company
    • Green Works™ Product Line is Exceeding Initial Expectations Year One Sales Expectations Launch Sept Fcst Oct Fcst Nov Fcst Dec Fcst Jan Fcst Feb Fcst* Reco The Clorox Company