Presentation on sustainability, marketing, product development, and portfolio management at Clorox with Burt's Bees, Brita, and Greenworks.
Learn more about Sustainable Business & Design at: http://sustainablelifemedia.com
2. 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
4. 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
5. 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
7. 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
8. 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
9. 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
10. 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
11. 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
14. 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
15. 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
18. 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
20. 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
21. 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
23. 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
24. 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
28. New Distribution into Mass Merchandiser & Grocery Channels
Fueling Continued Growth
The Clorox Company
29. 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
31. 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
32. 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
33. A Different Kind of Product
Green Works™ natural cleaners really work!
Perform as well as or better than leading
conventional cleaners
The Clorox Company
35. 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
37. 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
38. 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
39. 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