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
spray

3:1
concentra
ted

4:1
Recyclable
pouch(As
per Brand
Team)

4:1
Recyclable
pouch(As
per Finance
Team)

Avg.
Values

4:1
Dissolvable
Packet(As
per Brand
team)

4:1
Dissolvable
Packet(As
per finance
team)

Avg.
values

UNITS(cont
ainers)
(in millions)
projected
SUs(in
millions)
projected
revenues
(in millions)

7.24

0.9

2.478

1.239

1.858

2.478

1.23

1.858

1.81

4.525

6.195

3.097

4.646

6.195

3.097

4.646

4.34

10.45

14.12

7.06

10.59

14.12

7.063

10.59

total
directed
cost per SU
(in millions)
Advertiseme
nt cost
(in millions)
total cost
(in millions)
total
profit(Appr
ox.)
(in millions)
total profit
per 100 SU

12.67

3.077

3.717

1.85

2.78

4.08

2.04

3.066

10.86

2.60

3.53

1.756

2.646

3.53

1.765

2.646

23.53

5.67

7.24

3.62

5.45

7.60

3.81

5.75

19.99

4.75

6.88

3.45

5.16

6.50

3.25

4.89

110

104.5

111

111

111

105

105

105

total profit
per SU

1.10

1.05

1.11

1.11

1.11

1.05

1.05

1.05

Notes: Total cost for 4:1 recyclable pouch includes 35% extra start-up cost and for 4:1 dissolvable
up cost.

packet includes 41% start-

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

14% cost savings in packaging and

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.

Weakness

Opportunities

Large market share.

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.

More leakage during transport.

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.

Threats

Change in government norms will make to

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
A 4:1 concentrate in a
lightweight recyclable
pouch for refilling in
32 Oz spray bottle
6.4 Oz, recyclable
pouch for easy
refilling and usage by
customers
Drivers for product
change are variant
development and
technology change
which is spurred by
Cannibalization and
stiff competition
Product to packaging
ratio to be optimized
so that there is no
wasted use of air space
and packaging
material. This reduces
the transport space
and cost, hence
reducing carbon
footprints
Cube optimization to
fit orders into
packaging dimensions
leading to a win-win
situation for both
business and
environment.

PRICE
Consumers are
primarily price
sensitive postrecession
period, so is the
cost is
considerably
kept lower than
3:1 variant
Small refill
packets of 6.4
oz. has
benefitted in
reducing the
freight charges
for delivery of
the containers.
More containers
per case thereby
can be delivered
at lower cost
which reduces
the
environmental
impacts of using
the newer 4:1
variant in a
biodegradable
pouch.

PLACE
Major
distribution
channels to be
Food ,drug and
mass merchant
retailers (FDM)
& Supermarkets
which accounts
for 70% of sales
(2011)
Distribution
channels to
include small
grocery chains,
local markets,
convenience
stores, discount
stores, home
stores, online
retailers etc.

PROMOTION
Total annual marketing budget of
$26,486,861 (25% of total Revenue)
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:
Companys 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 Brenner 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

Breners 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: Companys 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 Breners 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