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CLEANSPRITZ : Case
Analysis
Submitted by:
Anurag Dwivedi FT153054
Rohan Shah FT151052
Priyanka Tras FT151029
Market potential:
- U.S market size of all household cleaning products including cleaning solution and tools for hard
surfaces, rugs, furniture and floors was totaled $5.04 billion in 2010. Out of which $1.46 billion
was generated by selling hard surface cleaners (which includes all purpose cleaning sprays, tub &
toilet cleaners, window and appliance cleaners etc.)
- All-purpose cleaners’ (which includes CleanSpritz) sales was $384 million in 2011 which is
expected to grow due to increase in consumer confidence.
Competitive analysis:
Diluted 3:1 4:1 4:1 Avg. 4:1 4:1 Avg.
spray concentra Recyclable Recyclable Values Dissolvable Dissolvable values
ted pouch(As pouch(As Packet(As Packet(As
per Brand per Finance per Brand per finance
Team) Team) team) team)
total profit 1.10 1.05 1.11 1.11 1.11 1.05 1.05 1.05
per SU
Notes: Total cost for 4:1 recyclable pouch includes 35% extra start-up cost and for 4:1 dissolvable packet includes 41% start-
up cost.
From the table above it can be seen that 4:1 recyclable pouch carries maximum profit however
market share will gradually rise there compared to 3:1 concentrated.
For 3:1 concentrated, increase in revenue by showing environment friendly factor was only 6
million USD. Hence this is not the major factor of consumer choice.
With 4:1 recyclable pouch, production cost will reduce by 14% when compared to diluted spray.
4:1 dissolvable packet, consumer awareness needs to be created and it is not as much cost
effective as 4:1 recyclable pouch is.
Strength Weakness
Opportunities Threats
Conclusion:
- From the above factors , Company should launch new variant as “4:1 recyclable pouch”
- They should keep 3:1 variant in the market till 4:1 recyclable pouch captures market share of 20%
captured by 3:1 concentrated variant.
- Profit margins of 9% would attract retailers to sell more.
- Recyclable feature of 4:1 recyclable pouch will reduce carbon footprint as well.
MARKETING MIX
The following Marketing Communications Mix to be used to create an impact on the prospective
customers of the 4:1 concentrate:
ADVERTISING: Consumer advertising for the 4:1 concentrate would focus on green themes and
ease of use. Promotion strategies also include the incentives to the retailers in the form of 9%
profit margins. This would entice the retails furthermore and would thus be eligible for more rack
space.
PERSONAL SELLING: Company’s sales force would be buckled up for the purpose of making
sales and building customer relationships. They would be required to increase the already
available customer base of MJ Brener and further penetrate the potential market.
SALES PROMOTION: For enhancing sales, at the initial stage of the product launch, the 4:1
concentrate would be offered as a complementary product with the Dilute Sprayer. This would be
aimed as spreading awareness about the product among the existing users of the dilute sprayer.
The promotional banner for the product would be designed in the view of promoting it as greener and
cleaner product in order to address the environmental concerns of the society.
The product would be promoted primarily as a Social Reward – Result of Use Experience in order to
justify the promotional strategy of which focuses on the greener aspect of the product.