The paper attempts to provide the problem faced by CleanSpritz’s management along with the company’s situation analysis. The paper also attempts to perform analysis through the application of SWOT analysis for the company. While providing recommendations, the paper provides the application of SWOT analysis for the particular option suggested along with marketing mix and Marketing Communication Mix. Lastly, implementation plan has been provided.
The sales of CleanSpritz has been declining from the past 5 years while the company believes that it is declining due to the fact of increased consumer awareness about environmental friendly products. Therefore, the management is hopeful that they can increase their revenues through choosing amongst four options. The first option includes re-launching the current brand, the second option includes developing a 4:1 concentration with a recyclable pouch or shall develop the same concentration with dissolvable packet. Lastly, the company has option to follow a business status-quo option. Therefore, the company is in a paradox situation to select amongst the three options.
The revenues for MJ Brenner in the year 2011 were totaled $6.2billion, where the largest portion of its sales i.e. 80% has been achieved from the United States. The market share for CleanSpritz in the category for All-purpose cleaning spray is 14% which is the highest market share in the industry alongside private-label products. The company is renowned for its high quality brands, and strong innovation because it invests 7% of sales in Research and Development. The company has an aim to exceed the expectations of its customers through providing offers that differentiates from its competitors.
Furthermore, the company 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. Moreover, MJ Brenner is a private owned company; therefore, it provides the owners with authority and control to make decisions which are in best interest for the company. The company has strong presence worldwide as it has appointed 10,000 employees along with launching 30 products and 11 brands. The brands have their own teams and leaders and are operated differently in a company so that there should not be any confusion regarding the brand perception and identity.
Despite of all the hard work and efforts laid on the CleanSpritz brand to make it environmental friendly by decreasing the chemical content by 15%, the sales for its products declined steadily. The company had been the first to note the consumer trend shifting from traditional cleaning products towards environmental friendly products and hoped to gain the first-mover advantage in the market due to increased demand; the company kept losing its long-loyal customers at an average rate of 7.5% annually.
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. Therefore, the company did not made any changes in its products, packaging, and logos. For every business it is required that the company should bring continuous innovation in its products and as well as in the features of its products. For that, the company is accustomed to make frequent changes according to customers’ needs and desires.
The company has various options to pursue which include developing of a 4:1 concentrate along with recyclable pouch, the other option include launching the same 4:1 concentrate with a dissolvable packaging, while it shall also pursue a strategy where it can develop a business status-quo. 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.
The existing all-purpose cleaning industry has increased competition due to which it has stirred a price war amongst its competitors. The players in the market are competing for higher market shares and higher revenues for its products. Along with this, the company has threats over government policies to develop 100% biodegradable products for consumers in order to make environmental friendly products. Moreover, the existence of cheaper products in the particular market would create a further threat for MJ Brenner……………………..
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