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Brand Management

Brand Management. Agenda. Introductions - My Background Clorox Company Overview Consumer Driven General Management Brita Case Q&A. The Clorox Company. Performance. Portfolio of Strong Brands Business Results International Growth. Portfolio. Just acquired First Brands:

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Brand Management

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  1. Brand Management Agenda • Introductions - My Background • Clorox Company Overview • Consumer Driven General Management • Brita Case • Q&A

  2. The Clorox Company Performance • Portfolio of Strong Brands • Business Results • International Growth

  3. Portfolio Just acquired First Brands: - STP, Glad Bags, Johnny Cat - Complete restructure in progress

  4. Clorox Brands are Market Leaders #1 or #2 in Nearly Every Category! • Home Cleaning • Laundry Additives • Salad Dressing/Barbecue Sauce • Insecticides • Home Water Filtration System • Automotive Care Products • Charcoal/Grill Products

  5. Revenue Growth(Sales: $Millions)

  6. Profit Growth1992-1998 Net Earnings ($MM)

  7. Revenue Growth % Average Annual Growth Rate 1992-1998

  8. 5-Year Total Shareholder Return $243

  9. 5-Year Total Shareholder Return $281 $243

  10. 5-Year Total Shareholder Return $417 $281 $243

  11. Clorox Introduced a Record 41 New Products Worldwide in 1998

  12. Clorox is Aggressively Pursuing Acquisitions to Fuel Growth Brand Year Pine-Sol & Combat 1991 S.O.S 1993 Black Flag 1995 Armor All 1997 Lestoil 1996 8 Int’l Acquisitions 1994/95 2 Int’l Acquisitions 1997 7 Int’l Acquisitions 1998 First Brands 1999

  13. International Growth Clorox International business has increased four times since 1992 5% 18% 1992 1998

  14. Consumer Driven General Management

  15. Brita Case Study

  16. Why was Clorox interested in Brita? Brita presented a growth opportunity and a solution to consumer need: • High growth in bottled water category • Expensive, inconvenient solution • Consumerconcern about air/water quality • Medical studies on negative effects of lead

  17. Brita Vision • Change the way Americans drink tap water • Original Objectives: • 70% awareness • 8% household penetration • Comparable profit margins

  18. Early Consumer Insights • Purchase of Brita linked to dissatisfaction with taste of tap water • Brita Early Adopters • Water involved (5+ glasses/day) • Believe that drinking water is a way to feel healthy • Urban, high income & educated • Filtration not broadly recognized as alternative to tap water • Direct marketers of in-line systems • Bottled water

  19. Early Brita Copy Focused on educating consumer Benefits: Brita makes tap water taste great Support: Removes impurities like lead and chlorine “Works/Taste”

  20. The Beginning1988-1992 Business Issues: • Cost Structure • Organization Structure • Financial • Distribution Channels

  21. Fish or Cut Bait1993 • Brita had achieved profitability • Awareness: 22% • HH penetration: 2% • Distribution in 11,000 stores • Long term commitment to Brita • Distribution expansion plan • Increased marketing investment • New pitcher models • Expanded consumer understanding 8% Target 0

  22. Brita Users are drawn to the brand because it gives them clear, clean, refreshing water and makes them feel that they have done something good for themselves. Increasing Consumer Understanding

  23. Brita Copy Focused on water in nature & leverage emotions & benefits Benefits: Brita makes your tap water clean, clear and refreshing Support: Removes impurities like lead and chlorine “There was a Time”

  24. Open the Floodgates!1993-1996 • Aggressive Growth • Awareness: 40% • HH penetration doubled each year to 9% in 1996 • Expanded Distribution from 11,000 to over 30,000 stores 8% Target 0

  25. Open the Floodgates!1993-1996 Business Issues • Geographic Expansion • Filter Manufacturing • Infrastructure 8% Target 0

  26. Ride the WaveToday • Exceeded Brita Vision objectives • Awareness: 70% • HH penetration: 14% • Market Share: 71% • Brita user loyalty: 85% • Distribution in 40,000+ stores • Over 70 failed competitors • One of our top 4 revenue brands • Continues to grow at double digit rate 8% Target 0

  27. Future Challenges • Category maturity • Drive filter sales • Encourage current users to replace their pitchers • Competition • Technological leadership • Protect filter annuity from “universal filters” • Brita Equity • Invest in new products or current line? • Where should we take the Brita equity

  28. Consumer Driven General Management • Recognized Marketing Expertise • In-Depth Understanding of Our Consumer • General Management Responsibility

  29. Brand Management Skill Sets • Leadership • Interpersonal Skills • Results Focus • Strategic Thinking • Analytical Problem Solving • Innovativeness

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