Reference no: EM131031972

Case: Clorox Green Works Line

The $3 billion household cleaner market is a mature and stable market. Why did Clorox think it could introduce five new products into this market? The environment. Clorox's internal research showed that 25 percent of consumers worried about the harsh chemicals in cleaners and 40 percent wanted a natural product that worked. Clorox, under its Green Works line, now offers five such products, including a glass cleaner and a toilet bowl cleaner. Within six months of launch, Green Works had estimated sales of $20 million. There have been several key factors in the early success. First is the product, which Clorox advertises as a natural product that really works. Second is price, which is comparable with "regular" cleaners as opposed to the high prices, other "green" competitors, such as Method and Seventh Generation. Third is distribution through m merchandisers rather than specialty stores. As one expert notes, "People want to make green choices, but they don't want to sacrifice."

Perhaps as significant as all of these factors is the alliance that Clorox has farmed with the Siena Club. As noted by Clorox CEO Don Knauss on its Web site:

I am proud to announce an alliance with the Sierra Club, the arks, largest, and mats influential grassroots environmental organization in the United States. Our partnership with the Sierra Club is signs Hearst for Green Works and for our entire company. It is critical for the environment that industries such as ours move toward sustainability.

As you can imagine, the dialogue with an organization commuted to the environment didn't happen oven night. Extensive conversations between the Sierra Club and Clorox took place over several months. They included tough question, and straight answers not only about Green Wades, but about our complete product portfolio, sustainability initiatives and corporate practices.

The Sierra Club is allowing its logo to appear on the Green Works products, the first time it has ever done so. In rerun, the club will receive an undisclosed amount of the sales of these products as a way for Clorox to support its environmental work.

This partnership has not been without controversy. For instance, 4 of the 60 chapters opposed die partnership outright. Some have quit over the partnership and now blog about it, with entries expressing the opinion that the Sierra Club is "Whoring the environment for financial gain, they've lost their mission and lost their way.

The negativity of individual members of this important alliance partner provides a cautionary note for companies and organizations looking for such endorsement deals particularly within social cause organizations with independent memberships. You have an activist mentality combined with today's Internet tools to execute effective attacks with relatively little support or funding. Says one expert in the area:

You need to spend a lot of time upfront before you ink a deal and know that both brands are sharing reputations and halos.

Perhaps as a way to counter some of the negativity of disgruntled Sierra Club members. Clorox hoc also part-toted with two other important entities: The U.S. EPA has given four of the products its DfE (designed for the environment) designations, and Better Homes and Gardens is partnering with Clorox to conduct a "living Green Tour."

Discussion Questions

1. What attitude change strategies is Clorox using to persuade consumers to buy its Green Works products?

2. Which of the six environmental activism segments. Discussed in Chapter 3 (p. 90) does the Clorox Green Works line appeal to? Explain.

3. In what of is the Green Works" name utilizing a rhetorical figure? Is it effective? Explain.

4. Should Clorox engage the negative bloggers directly by Winging as well, should it simply ignore them, or should it try other indirect toothed, of dealing with the negative fallout?

5. Why are the endorsements of Sierra Club, the EPA, and Hewer Homes and Gardens so important to Clorox and hem success of Green Works?

6. Does it affect your attitude toward Green Works to know that the Siena Club is receiving money from Clorox? Which aspect of the attitude process is at work here?

7. Clorox never in its history has put an ingredient list on its package. Now it does on Green Works. What attitude process is at work here?

8. Examine the packaging for Green Works. What perceptual processes are evident in the design and in how consumers will perceive and interpret the Product?