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

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Burt's Bees, Brita and GreenWorks? All successful companies with a positive sustainable image and brand power in a struggling economy...Discover how they manage to grow and thrive with Mike Kraft of ...

Burt's Bees, Brita and GreenWorks? All successful companies with a positive sustainable image and brand power in a struggling economy...Discover how they manage to grow and thrive with Mike Kraft of The Clorox Company!

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  • Small CPG compared to many of our direct competitors $5B in sales spread across some very diverse categories, many of our brands are leaders within their respective categories
  • Consumer insights critical to success of Clorox, want to take a minute to review several key insights we hold regarding “green” consumers
  • Consumer’s “environment: for most is what is closest to them and expands outward Starts with “in me on me around me” Their perception of what they can control, and/or make impact on, is key to the my vs the environment concept
  • Personal protection and cost savings, both “my” environment focused are strongest motivators for mainstream consumers In tough economy, personal protection and cost savings dominate even more
  • Feel good about green trends over the long term, here to stay and not a fad Institutional factors: companies making public commitments and continuing to do so even in tough times, legislation, our children in schools etc Green/natural categories performing better than conventional
  • Water filtration products, pitchers and faucet mount deliver filtered water removing contaminants Offers alternative to plastic water bottles 60MM bottles tossed everyday with less than 1 in 5 being recycled, One Brita pitcher filter can replace ~ 300 standard 16.9 oz water bottles
  • Great strength of the brand is that is delivers against multiple key desires of sustainable consumers highlighted earlier Basic benefit is to provide healthy water, in past year and half the brand highlighted the good for the planet aspect. Recently, in light of economy, the brand is also highlighting the cost saving aspect of using Brita – this is taking a more prominent role in the brand messaging which I will point out
  • Over the past year, we ran a very effective series of ads pointing out plastic water bottles going to landfill, you may recall the “30 mins on a treadmill, forever in a landfill” This new ad, while still pointing out the environmental benefit, explicitly goes after the value aspect of using Brita system
  • - You’ll see the same environment and wallet theme in these examples of recent Earth Day initiatives, we had strong retailer support and outstanding results with these programs
  • Brita also continued the extremely effective FFG campaign – a campaign that was recently recognized at the CLIO awards with a Gold Medal, one of the judges commented that “What impressed me most about the Filter For Good Program was that it was successful in actually changing consumer behavior…” Here you see how Brita and FFG tapped into the Sundance Festival eliminating need for 50M bottles just for this event
  • Finally, late last year, responding to consumer interests, we initiated a pitcher filter recycling program which takes the polypropylene filters, partners with Preserve to upcycle them into usable products Program starting in Whole Foods and also mail in option
  • Company where sustainability is core to the entire way they do business, the Greater Good model Clorox acquired in later 2007
  • See product lines New add in past year include Men’s products and a body wash
  • Burts was built upon grass roots marketing approach such as the Bee-utify your world tour that the brand continues It gives the opportunity for relationship marketing, to connect face to face with consumers and tap into the fun that helped build the brand
  • While Burts was built upon grass roots marketing approach, following acquisition by Clorox and gaining distribution in mass merch drove need for some more traditional mass awareness vehicles, print ads have been one of the most effective mechanisms Print ad enables ability to communicate some pretty detailed product information and this campaign seeks to really highlight to consumers the difference between Burts and synthetic products, you’ll notice the small green seal down in the bottom right….that is the NPA Natural Standard……….
  • Most consumers are not sure what natural is and most also think natural products are regulated The natural standard seeks to give clarity to consumers on this front
  • - Very positive on the long term prospects of the brand despite slowing growth driven by the economy
  • Basic brand product offering was to address what had historically been the greatest inhibitor of mass consumer adoption of natural cleaners: too expensive, did not work well and had to go to special stores to find it. In Jan 2008 GW launched 5 skus which truly addressed these issues and gave consumers a truly affordable, effective, readily available natl cleaner, the results as you will see have been great
  • - A pretty impressive result for a one year old brand and in some great company, indicative of a great product and a well executed launch truly meeting a consumer need
  • I will show you television advertising in a minute, our research shows that this consumer reads more magazines and spends more time on-line. Here’s print ad showing new dish liquid – notice the emphasis on performance Therefore, we will have a strong print and on-line presence. For those of you in the back, the copy on this print ad reads: Just what the world needs..another cleaning product. Made from plants and as powerful as traditional cleaners. Green Works is exactly what the world needs.
  • - Spot shows new dish liquid but also hits on consistent theme of efficacy and natural ingredients
  • Like Brita, we had great retail support for Earth Day this year You will see in these images that GW is actually bundled with Brita - this was a new Greener Choices program Clorox initiated this year which helped retailers tie together various sustainable products for their consumers called Simple Steps, in the last case you’ll even notice this extended beyond Clorox products
  • - Seven 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 - Green Works ™, along with Brita and The Clorox Company, committed $500,000 along with product donations to support the rebuilding of Greensburg, Kansas - Green Works continues to give back to communities through Green Heroes program * Awarded five, $10,000 grants to people working on eco-friendly programs in their communities - I also want to note that GW received a Silver CLIO award for the launch

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

  • Learning From the Field Since Sustainable Brands 2008 Mike Kraft- Sr. Manager Environmental Sustainability The Clorox Company
  • Total FY08 Sales of $5.3 Billion Home Care (17%) Auto Care (4%) Charcoal (9%) Dressings & Sauces (8%) Cat Litter (7%) Brita / Canada (8%) Laundry Care (12%) International (16%) Glad (16%) Sales of Professional Products Division allocated to each business unit Burt’s Bees (2%)
  • Key Consumer Insights
  • Consumers are Most Concerned with Their Own Environment Yard Within My Control — “Immediate” Outside of My Control — “Long-Term” World Parks Community Work Car Family/ Home Local Natural Environment Body Consumer Definition of “ My” Environment vs. “ The” Environment My Environment The Environment
  • Four Key Motivators Drive Interest in the Environment Personal Protection The environment Is getting worse and I need to protect myself and my family Cost By reducing and re-using my family’s consumption, I can save money Status Letting others know I care about the environment shows that I am responsible Altruism Improving the environment by minimizing human impact is the right thing to do
  • Green Trend & Consumer Behavior in Tough Economy
    • Green Trend Outlook
      • Consumer attitudes towards green are fundamentally solid
      • Structural forces continue to institutionalize green
      • Green product launches accelerating (including major CPG’s and Private Label)
      • Green products continue to grow
    • Consumer purchasing clearly affected by economy
      • Tighter budgets driving consumer to prioritize
      • “ My environment” focused products offering cost savings and/or personal/family protection at reasonable premium fare best
  • Three Clorox Examples:
    • In me
    • - Brita ® Water Filtration System
    • On me
    • - Burt’s Bees ® Natural Personal Care Products
    • Around me
    • - Green Works ™ Natural Household Cleaners
  • A More Sustainable Alternative to Bottled Water
  • Saves Money Cheaper than bottled water Good For Me Healthy, great tasting filtered water Brita ™ Water Filtration A Broadened Positioning Addresses Consumer Needs on Multiple Vectors Good For The Planet Reduces plastic bottled water waste
  • New Brita TV Spot
  • Strong Retail Earth Month Support
  • + = 50,000 plastic water bottles eliminated
  • Closing the Loop with Preserve ® = + =
  • Brita ® Business Results
    • In Tough Economy
      • Continued Double-Digit Growth
      • Continuing to Grow Share
  • “ Burt’s Bees make people’s lives better every day - naturally.”
  • Burt’s Bees® Natural Personal Care Products Lip Face Body Hair Baby Outdoor & Natural Remedies Gifts Kits
  • Bee-utify Your World Mobile Tour
  •  
  • The Natural Standard for Personal Care Products
    • Developed in 2008 by the Natural Products Association with Burt’s Bees and leading Natural Personal Care companies
    • Provides consumer with standard definition of “natural” for personal care products
  • Business Results
    • Expanded “Hive” shelf presence into 2,500 Wal-mart stores
    • Leader in natural personal care with 27% share, double that of number two player
    • Business continues to grow in size and share - slowed by the economy
    • Natural Personal Care category continues to outpace conventional personal care
  • powerful cleaning. done naturally.
  • 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
    • Over the past year…..
    • Added to initial product line-up by launching Green Works ™ natural glass cleaner, natural cleaning wipes and natural dishwashing liquid
    • Green Works ™ established as the number one brand in natural cleaning with the number one product in each category in which we participate
    • Natural cleaning category growth tripled in the first year of launch*
    • Green Works ™ natural cleaners established strong consumer brand recognition
    *IRI FDKT
  • “ When you think of ‘green’ or an environmentally-friendly product, what is the first consumer product that comes to mind?” 0% 1% 2% 3% 4% 5% 6% Clorox Green Works Toyota Prius Simple Green Windex Seventh Generation Method GE Yale Green IQ Green Consumer Survey 2008 – Yale School of Management, Yale School of Forestry & Environmental Studies in collaboration with McKinsey & Company Strong Brand Recognition within First Year
  •  
  • Green Works ™ TV Spot
  • Strong Earth Day Retail Programs
  • Green Works ™ Natural Cleaners Partners
  • Green Works ™ Business Results
    • 45%+ share of a natural cleaning category still growing by strong double digits*
    • Number one in every category in which we participate
    • Already a $100MM brand
    • Strong consumer repeat purchase trends
    *IRI FDKT
  •