CLEANSPRITZ

Nur Aiedah Binti Sabri

Norazimah Binti Mohamad Tahir

COMPANY BACKGROUND
1925

SUMMARY OF THE CASE STUDY

MJ Brenner Sales

Auto Cleaning; 29%

Insustrial Cleaning; 40%

Household Cleaning; 32%

CLEANSPRITZ HISTORY

PROBLEM STATEMENT

Sales of CleanSpritz had decline at average

rate of 7.5% annually since 2006
Believes that the sales are dropping due to
the fact of rising consumer awareness about
environmental friendly products
Economic recession in 2008 as the customers
prefers the lower priced products
In 2009 CleanSpritz created a new formula
with 15% less chemical content and more
biodegradable than the original formula

PROBLEM STATEMENT

After the sale performed poorly, the

company launched its 3:1 concentrated
version of all- purpose spray in the same
year, but also wasnt successful.
CleanSpritz's management is considering
several options to address the environmental
concerns in hopes of reversing the decline in
revenue

CURRENT SITUATION

Industry segment :Cleaning industry

MJ Brenner s 2011 revenues totalled $
6.2 billion, with 80% of sales coming from
U.S, generated by the following divisions :
Household cleaning Products : 31.5%
Industrial cleaning Product : 40%
Auto cleaning Products: 28.5%

CURRENT SITUATION

Market segment and target market

DEMOGRAPHICS
age, occupation,
gender, education,
income, social class,
and religion

Age: adult

Income: High,
Middle,
Low
Nationality:
American

Family Size: Small

to large family

PSYCHOGRAPHIC
Lifestyle

Lifestyle: working

Attitude: Fast,
Convenient,

Beliefs: Quality and

reliability

Interest: easy to
carry product

BEHAVIOUR
climate, nations,
states, countries and
neighbourhood

Usage rate: Daily,

Weekly, Monthly
Benefit :
environmental
friendly
Attitude towards
product: Quality
and Convenient,
Cheap

CURRENT SITUATION

Consumer Behaviour

2008 - U.S - economic recession -consumers more

price sensitive as a result of the economic downturn
cleaning habit had changed as well.

To conserve resources, consumers used fewer

cleaning products, and replenished those product s
at a slower rate than they had before the recession.

Competitors
all-purpose cleaner is shine, Glisten, Magic Mary
and Clear n Clean

CURRENT SITUATION

Marketing Programmes: current marketing mix strategy

Product

cleanspritz will focus on product that comply to the

environmental standard to ensure its product will be
delivered at high standard of quality to customers

Price

Cleanspritz concentrare will be produced to minimise waste

and maximise efficiencyreduce the packaging cost -refill
packages retail price for cleanspritz should be $ 5.69.
Make sure the prices of the products are at its lowest

Promotion
allocate budget for advertisement and promotion
Maintaining long-term relationships with customers

Promote & record customer particular detailFreegift,pamplet,promotion pack mailed ton customer

To

listen and improve on customer feedback

After sale service-email,phone, mail

OPPORTUNITIES / ISSUE
ANALYSIS

STRENGTHS

The the MJ Brenner Company has established as the

popular cleaning product since 1985 which has
gained market share in its categories.
The company has strong presence worldwide as it
has appointed 10,000 employees along with
launching 30 products and 11 brands.
The company is renowned for its high quality, strong
branding, and strong innovation.
The company has enough funding and invests 7% of
the sales in Research and Development.
MJ Brenner has an aim to exceed the expectations of
its customers through providing offers that
differentiates from its competitors.

STRENGTHS

Limited new packaging or logo to enhance label

recognition.
The CleanSpritz spends 25% of its products revenues
on its marketing and promotion in order to create
brand awareness and retain its customers in a
competitive environment.
A private owned company which grant the owners
with authority and control to make decisions for the
best company interest.
Separate the teams and leaders for each brands and
operated independently in the company so that
there should not be any confusion regarding the
brand perception and identity.

STRENGTHS

The CleanSpritz brand team are very

innovative by introducing 2 new package
designs of the 4:1 refill concentrate in pouch
and dissolvable packet.
Has wide distribution network which enables
the product to be purchased at various
outlets.
The concentrate has high interest from
professional cleaners that seeks for money
saving and help the environment.

WEAKNESS

The company had been reluctant to make

changes in its brand as it believed that its loyal
customers would shift away from consuming its
products.
Had overlooked the consumer awareness of
green ingredient product causing some long
loyal customers to tried the environmentally
friendlier substitutes.
Profit margins at large supermarket chains were
small.
Neighbourhood grocery stores and convenience
store has limited shelf space.

WEAKNESS

Not enough branding image promotion on

existing allpurpose diluted spray product to
promote product repurchase.
The 3:1 version of concentrate productis not
user friendly as the user has to mix and store
the product prior to usage.
The new version of refill concentrate
packaging is less sturdy and prone to
leakage.

OPPORTUNITY

The trends on green cleaning product is

increasing where the consumer are more
interested on the natural product sources with
less chemical ingredients and environmental
friendly, the 99% biodegradable product will be
ready in 2 years.
The company can further increase its market
share and growth by acquiring other companies
which have strong products but do not have the
required infrastructure to market its product in
a comprehensive manner.

OPPORTUNITY

Advertising via mass media such as television

and social media will gained more product
recognition among the consumer.
The social media conversation might damage
the brands reputation, however it will open
up the improvement opportunities by quick
response to the consumers comments.

THREATS

The existing all-purpose cleaning industry has

increased competition and price war amongst
its competitors.
Consumers are more price sensitive because
there was slight product differentiation
among the eight leading brands of cleaning
products.
Economic instability will cause the
consumers to migrate to the cheaper option
and they might not repurchase the product
even after the economy is improved.

THREATS

The concentrate product version would

cannibalised and jeopardise the diluted spray
sales.
The 99% biodegradable product might be
taking too long to be produced causing the
option for keeping the status quo to be
unfavourable as the product sales will
continue to decrease.
The use of environmental friendly labelling
might lead to false advertising as the product
itself contains non biodegradable ingredients.

BCG MATRIX

BCG MATRIX

Known as the product portfolio to help the

company in allocating the resources and also
used as an analytical tool in brand marketing,
product management, strategic management,
and portfolio analysis. (Henderson, 2015)
CleanSpritz could be categorised as Cash Cows
in the BCG Matrix because it has high market
share in a slow business growth rate
constantly advertise and promote the brand
make some investment even though it seems
to be detrimental in low growth rate setting

PRODCT LIFE CYCLE

PRODCT LIFE CYCLE

The product life cycle analysis is an important

concept in marketing. It describes the stages
of product from when it was first thought of
until it finally is removed from the market.
(Karniel & Reich, 2011)
extension strategies implied by the brand
team is to extend the life of the product
before it declines.
The CleanSpritz brand team enhance the
marketing effort in conjunction to the product
improvement to recover the sales rate

PRODCT LIFE CYCLE

Introduce new product with new packaging

introducing

to the existing product line a stronger 4:1

concentrate solution
6.4 oz lightweight with 100% recyclable pouch
6.4 oz water soluble packets featuring of 100%
biodegradable materials

Price reduction
the

refill packages retail price is proposed to $5.69

comparable to the diluted version, $5.99

Dynamic advertising and promotion

focusing

on the social media campaign rather than limited

to the consumer promotion
proposed a 6.5 % increase in advertising and promotion
investment

OPTIONS AVAILABLE

Re-launching the current product

Add to the product line a stronger 4.1

concentrate with different packaging options
pouch and dissolvable Packet.

Keeping the business status-quo

OPTION 1:
RE-LAUNCHING THE CURRENT PRODUCT
Re-launch the existing 3:1 CleanSpritz concentrate with
heavy promotion concentrated on environment benefits.

Cost effectiveness analysis:

-Reducing packaging costs

-Increase in add spending by 6% will have an

impact on the net operation income
The risk of cannibalization effect:
-The projected rate of cannibalization by
finance team is 55%.

the

OPTION 2:
ADD TO THE PRODUCT LINE A STRONGER 4.1
CONCENTRATE WITH DIFFERENT PACKAGING OPTIONS
POUCH AND DISSOLVABLE PACKET.

Cost effectiveness:
- Reducing packaging and delivery costs
-Retail cost reduction (retailer benefits)
Increase in add expenses

The risk of cannibalization effect:

-the cannibalization rate seems to be much
higher than the first option.

OPTION 3:
BASE CASE/ STATUS QUO AND WAITING FOR
CARTRIDGE SYSTEM

Make no changes in short term

Consider launching with 99% biodegradable
spray(2 years) or cartridge system (12 months)
develop friendly environmental products and
packaging at the same time

THE MARKETING MIX

PROPOSED MARKETING
STRATEGY

OPTION 2 : adding to existing product line a

stronger, 4:1concentrate designed specifically
to refill an existing 32 oz spray bottle, to be
packaged in either a lightweight pouch or a
dissolvable packet.
The 4 Ps of the marketing mix are related, and
combine to establish the products position
within consumer needed.
Product
Price
Place
Promotion

PRODUCT

The CleanSpritz has taken the first step in

producing environmental friendly product by
introducing the recyclable pouch and water
soluble packet in their product lines. This
step is not only helps the environment, but
also saves the handling costs.
Both designs were user friendly as the user
can easily mix their own solution at home.
The customers can reuse the old spray bottle
instead of ditching it and buying the new
bottle every time.

PRODUCT

The product was upgraded to be 15% reduced

chemical content and more biodegradable
compared to the original formula. This is
upgrade is to complement the green product
approach in providing health and
environment safe product.
The product has well established
featuresthat provethe product is marketable
and profitable. It has strong branding, high
quality and strong innovation.

PRICE

The concentrate prices would be low enough

to compel loyal diluted spray users to switch
to concentrate. The consumer will be looking
for the good product with the affordable
price.
Since the customers are price sensitive,
CleanSpritz should maintain the standard
ofhigh quality but low price of cleaning
product. The consumer will repurchase and
eventuallyit will be the generations brand.

PLACE (DISTRIBUTION)

The product is available at various outlets

including the neighbourhood grocery stores
and supermarkets.
CleanSpritz had been well known among the
US and should be introduced to the other
country as well.

PROMOTION

CleanSpritz brand team had work hard for

the advertising effort and allocated more
than 70% of the income for trade promotions.
Mass media campaigns such as advertising on
the television, radio, newspapers and social
media approach will keep the branding stand
firm. CleanSpritz should take opportunities
to advertise the 4:1 Refill Concentrate
cleaning products to all over the world.

IMPLEMENTATION
focus

on second option :

offer better solution for the environmentally issues.

By selecting this option the users can help the
environment in the same time.
Consumers can choose either to use the 6.4 oz
lightweight , 100% recyclable pouch
or 6.4 oz water soluble packet. The clear packet of
this water soluble packet was made of 100%
biodegradable materials that no harm to
environment.

IMPLEMENTATION

Personnel requirements:
hire

sales person with good personal presentation, excellent

communication, able to clearly present product, friendly and
confident manner with a pleasant personality and enjoy working
with people. This requirement is very important
to gain the trust from the customer.
offer incentives to encourage their staff to perform well
especially to market the product.

Financial requirements:
Contribution

margin analysis - a measure of operating leverage -it

measures how growth in sales translates to growth in profits.
computed by using a contribution income statement, a
management accounting version of the income statement that has
been reformatted to group together a business's fixed and variable
costs.

IMPLEMENTATION

Marketing information system

requirements: the company should
establish the marketing information system
that be used operationally, managerially,
and strategically for several aspects of
marketing of the product

Controlling Methods: establish the standard

of procedure(SOP) to ensure the quality of
the product always Achieve the target.

RECCOMENDATION

Obtain some clear idea on the Green

LabelGuidlines

Some study should be made to forecast the outcome

of the guideline.
At the meantime, the team could refer to the article and
journals such as The United Nation Report on Sustainable
Procurement Guidelines for Cleaning Products and
Services dated 6 May 2008.
The brand team should be able to instruct their Research and
Development team to redevelop the innovative CleanSpritz
formula.

RECCOMENDATION

Packaging
redesign the packaging.
environmental friendly image
obtained the authority endorsement as a
biodegradable product.
The sturdier and stable packaging should be
used to prevent leakage and better display
on the store shelf.

RECCOMENDATION

Distribution
The brand teamcould also opt to use the
vending machine as popularised in Japan.
Besides that, they should establish an online
shopping method to ease the busy customer
as well as the industrial customer which
usually buys in bulk.

RECCOMENDATION

New fragrance
Some people could not stand with some
household cleaning product.
Some industrial customers such as hotel
owners, would prefers the aroma theraphy
smells to please their guests. The brand team
can took this opportunityto create the
cleaning product with essential oil mixture to
replace chemical perfume.
Every once in a while, special fragrance
should be introduced as limited edition to
attract more housewives to buy the product.

RECCOMENDATION

Good team
The sales personal need should be well trained and
knowledge on all related matters of their products.
They are the front liners that will impose the
image of the company. They should know contents
in product and give some advice about the product
and the emergency aid if the consumer develops
allergies or accidentally swallowed the product.
The product should be retrieved from the market if
any discrepancies or manufacturing defect occurs.
This will keep the brand trusted for the users as
the team is dedicated in providing the best product
to the consumers.

THE END
Thank You