Scrub Daddy is a cleaning product company known for its smiley face-shaped sponge that changes texture from firm to soft depending on the water temperature. It has become very successful after being featured on Shark Tank, with over $200 million in lifetime sales. A SWOT analysis identifies Scrub Daddy's main strengths as its unique changing texture and its success earning over $70 million. Weaknesses include being a new brand and having a higher price than competitors. Opportunities exist in international expansion and partnerships. Main threats are existing competitors and cheaper alternative products. Conducting a thorough SWOT analysis helps identify how to minimize weaknesses and threats to maximize strengths and opportunities.

1. SAGE UNIVERSITY, INDORE
INSTITUTE OF MANAGEMENT STUDIES
(SESSION 2021-2023)
PROJECT MANAGEMENT
SWOT ANALYSIS OF SCRUB DADDY
SUBMITTED BY: - SUNNY GARHWAL SUBMITTED TO: - PROF. RISHABH PARE SIR
ENROLLMENT NO. – 20MGT2BBA0310
SEMESTER – 5TH
SECTION - E

2. CONTENTS: -
1. INTRODUCTION OF COMPANY.
2. BRIEF EXPLANATION OF SWOT
3. SWOT ANALYSIS OF THE COMPANY.
4. CONCLUSION.

3. SCRUB DADDY
 Scrub Daddy is a cleaning product company best known for an eponymous sponge it
manufactures in the shape of a smiley face. The product is made of a polymer which
changes texture – firm in cold water and soft in warm water.[1] As of 2019, Scrub Daddy had
the highest revenue of any product successfully pitched on the ABC reality show Shark Tank.
 Scrub Daddy is made from a strong "high-tech polymer", which is likely to be polycaprolactone based on
prior patent filings. The texture changes in water: firm in cold water, soft in warm water. The original Scrub
Daddy is a yellow circular sponge with a smiling face punched into it. Krause has two patents on its
design.
 After damaging the exterior of a vehicle when cleaning the outside, detailer Aaron Krause invented a line
of buffing and polishing pads. The company was acquired by 3M in August 2008. 3M did not purchase a
line of sponges Krause had invented, leaving them to sit in his factory. Five years later, Krause used the
remaining sponges to clean his dishes and lawn furniture. According to Krause, this is when he "realized
his multi-million dollar idea.
 According to the company's website, Scrub Daddy, Inc. was founded in 2012 with grassroots
marketing. On the Shark Tank episode originally airing in October 2012, Lori Greiner made a 20% equity
stake deal with Krause for $200,000. The following day, Greiner and Krause sold out of 42,000 sponges in
under seven minutes on QVC. Greiner then helped Scrub Daddy to be sold in retail stores such as Bed,
Bath & Beyond. In January 2017, Scrub Daddy's total revenues surpassed $100 million – the highest of
any Shark Tank product.As of October 2019, the company's lifetime sales were $209 million.

4. SWOT ANALYSIS
SWOT analysis (or SWOT matrix) is a strategic planning and strategic
management technique used to help a person or organization identify Strengths,
Weaknesses, Opportunities, and Threats related to business competition
or project planning. It is sometimes called situational assessment or situational
analysis. Additional acronyms using the same components include TOWS and
WOTS-UP.
This technique is designed for use in the preliminary stages of decision-making
processes and can be used as a tool for evaluation of the strategic position of
organizations of many kinds (for-profit enterprises, local and national
governments, NGOs, etc.). It is intended to identify the internal and external
factors that are favorable and unfavorable to achieving the objectives of the
venture or project. Users of a SWOT analysis often ask and answer questions to
generate meaningful information for each category to make the tool useful and
identify their competitive advantage. SWOT has been described as a tried-and-
true tool of strategic analysis, but has also been criticized for its limitations, and
alternatives have been developed.

5. SWOT ANALYSIS OF SCRUB DADDY
STRENGTH: -
1. Strength is basically the quality of being strong. In business point of view strength can be
defined as the ability of company to compete with their competitors.
2. The uniqueness of Scrub Daddy’s product is that , when there scrub is dipped in the hot water
the scrub becomes soft which can be used to wash dishes, but when the scrub is dipped in the cold
water the properties of scrub changes instantly and it become hard.
3. Thus, this is the reason which made scrub daddy’s net worth over 70 million.
WEAKNESS: -
As a newcomer among the market of cleaning products and supplies, the Scrub Daddy brand is a
new and relatively unknown brand that causes many difficulties to begin with. Many consumers
will continue to buy products they already recognize or use, there fore not giving new companies
like Scrub Daddy a chance. The retail price for the Scrub Daddy Original is $3.99 for one and $25
for a pack of 12. The price is higher than competing products and may be reason for a consumer
to skip out on the product as he/she could purchase as ponge pack of 21, such as Scotch Brite’s,
for around $14. The price difference is somewhat large for these sponges and presents a problem
in competing with other brands.

6. Opportunities: -
Going global and selling internationally could be a possibility for Scrub Daddy, as cleaning
scrubs are needed for day to day use especially in restaurants and kitchens domestically and
around the world. Making partnerships as it previously did with Lori Greiner would benefit
the product as it could expand into the market by partnering with soap brands that could
sponsor or create a two-in-one pack where the soap is sold alongside with a “trial” Scrub
Daddy already in the works.
Threats: -
With emerging products, there are numerous threats, but the most prominent
may be existing competitors like as cleaning product sand supplies, which also
have a dominant share in the market and most likely have loyal customers.
Cheaper products pose a threat as well because consumers seek value. Not
many consumers are aware of the various features that the Scrub Daddy has
and could choose to settle for a cheaper product.

7. CONCLUSION: -
It is not simply enough to identify the STRENGTH, WEAKNESS,
OPPORTUNITIES and THREATS of a business unit. It applying
the SWOT analysis it is necessary to minimise or avoid both
weakness and threats. Weakness should be analysed in order to
convert them into strengths. Likewise, threats should be converted
into opportunities.

8. THANK YOU!