GREAT LAKES INSTITUE OF

MANAGEMENT

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)

UNITS(cont 7.24 0.9 2.478 1.239 1.858 2.478 1.23 1.858

ainers)
(in millions)
projected 1.81 4.525 6.195 3.097 4.646 6.195 3.097 4.646
SUs(in
millions)
projected 4.34 10.45 14.12 7.06 10.59 14.12 7.063 10.59
revenues
(in millions)

total 12.67 3.077 3.717 1.85 2.78 4.08 2.04 3.066

directed
cost per SU
(in millions)
Advertiseme 10.86 2.60 3.53 1.756 2.646 3.53 1.765 2.646
nt cost
(in millions)
total cost 23.53 5.67 7.24 3.62 5.45 7.60 3.81 5.75
(in millions)
total 19.99 4.75 6.88 3.45 5.16 6.50 3.25 4.89
profit(Appr
ox.)
(in millions)
total profit 110 104.5 111 111 111 105 105 105
per 100 SU

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.

SWOT ANALYSIS of 4:1 recyclable pouch:

Strength Weakness

 14% cost savings in packaging and  More leakage during transport.

delivery.
 Packaging material volume reduced by
85%
 100% recyclable.
 Firm and rigid design hence enables easy
standalone display on shelves.
 Easy adoption by consumers.
 Can be shipped in existing shipping
containers used for 3:1 concentrate.
 Less product storage required.
 Cannibalization of existing diluted spray
and 3:1 concentration refill.
 Requires scissors to cut spout.
 More likely to burst or rip if dropped.
 33% additional start-up cost for first 1
million SUs.
 Dependency on 3rd party for packaging.

Opportunities Threats

 Large market share.  Change in government norms will make to

 Cartridge system once consumers are
comfortable with this.
 Increment in consumer base.
 Contribution to reduce the carbon footprint
and greenhouse effect.
 99% biodegradable version is expected by
2014.
change the content of packaging.
 Competitors with cheaper products.
 Change in consumer preferences.
 Decline in sales due to chance of recession
in future.

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

PRODUCT PRICE PLACE PROMOTION

 A 4:1 concentrate in a  Consumers are  Major  Total annual marketing budget of
lightweight recyclable primarily price distribution $26,486,861 (25% of total Revenue)
pouch for refilling in sensitive post- channels to be
32 Oz spray bottle recession Food ,drug and  ADVERTISING: Consumer
period, so is the mass merchant advertising for the 4:1 concentrate
 6.4 Oz, recyclable cost is retailers (FDM) would focus on green themes and ease
pouch for easy considerably & Supermarkets of use. Promotion strategies also
refilling and usage by kept lower than which accounts include the incentives to the retailers
customers 3:1 variant for 70% of sales in the form of 9% profit margins. This
(2011) would entice the retails furthermore
 Drivers for product  Small refill and would thus be eligible for more
change are variant packets of 6.4  Distribution rack space.
development and oz. has channels to
technology change benefitted in include small  PERSONAL SELLING:
which is spurred by reducing the grocery chains, Company’s sales force would be
Cannibalization and freight charges local markets, buckled up for the purpose of making
stiff competition for delivery of convenience sales and building customer
the containers. stores, discount relationships. They would be required
 Product to packaging More containers stores, home to increase the already available
ratio to be optimized per case thereby stores, online customer base of MJ Brenner and
so that there is no can be delivered retailers etc. further penetrate the potential market.
wasted use of air space at lower cost
and packaging which reduces  SALES PROMOTION: For
material. This reduces the enhancing sales, at the initial stage of
the transport space environmental the product launch, the 4:1 concentrate
and cost, hence impacts of using would be offered as a complementary
reducing carbon the newer 4:1 product with the Dilute Sprayer. This
footprints variant in a would be aimed as spreading
biodegradable awareness about the product among
 Cube optimization to pouch. the existing users of the dilute sprayer.
fit orders into
packaging dimensions  DIRECT MARKETING:
leading to a win-win Promotion-On-Wheels would be one
situation for both method to enhance visibility. These
business and promotional vehicles would be
environment. demonstrating the convenience with
which the 4:1 concentrate could be
used.

 PUBLIC RELATIONS: The focus

would be on enhancing the blurring
image of the company by setting up
feedback registering system which
would be a platform for customers to
provide a feedback for the MJ
 Brener’s products. This would be in
the form of a small questionnaire to be
filled up by the customers while
purchasing the products.

Integrated Marketing Communications

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.

 DIRECT MARKETING: Promotion-On-Wheels would be one method to enhance visibility.

These promotional vehicles would be demonstrating the convenience with which the 4:1
concentrate could be used.

 PUBLIC RELATIONS: The focus would be on enhancing the blurring image of the company by
setting up feedback registering system which would be a platform for customers to provide a
feedback for the MJ Brener’s products. This would be in the form of a small questionnaire to be
filled up by the customers while purchasing the products.
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.

Clean
spritz