CleanSpritz

Group 4

Q1. Describe the CleanSpritz household surface cleaner user. What motivates them to make a
purchase? Do you think the refill package encourages switching by non-CleanSpritz users and/or
new trial by non-users of household surface cleaner, or merely cannibalizes CleanSpritz’s
existing consumer base?

Users:

● CleanSpritz user base is in the US (79%)

● The product was majorly used in household

● Customers were very price sensitive

● They want the product to be effective in cleaning as well as environment friendly

Motivating factors for customers:

● The strong brand value built by other products of MJ Brenner

● The need for strong cleaner household

● Availability in both spray and wipe form

● The satisfying scent after cleaning

Refilling packages: Refill package will encourage switching by non-CleanSpritz users and/or
new trial by non-users of household surface cleaner for the following reasons-

● Refill packages are more user friendly than existing product

● Innovative and more environment friendly

● More cost effective than old spray bottles

 ● Customers can save as they are not required to purchase the spray bottle and can
purchase refills

● As price will be less those customers who were purchasing private labelled products
because of low prices will be attracted as CleanSpritz is a better brand

Q2. Evaluate Beaton’s alternatives. What are the risks and rewards associated with each? Note:
It is recommended that statistical units (SUs) be used as the basis for calculations or projections.

Relaunch existing 3:1 concentrate with heavy promotion focused on environmental

benefits:

Rewards:

● Reduced packaging in comparison to diluted spray(45% less)

● Less pollution from freight

● Reuse of old spray bottle

Risks:

● Cannibalization of sales of regular sprays (projected at rate of 55%)

Add to existing product line a stronger 4:1 concentrate in a lightweight, recyclable pouch
for 32 oz. bottle refill:

Rewards:

● 100% recyclable pouch so can attract environment concerned customers

● 14% cost savings in packaging and delivery and packaging volume reduced by 85%

● It will be easy to display on shelves in retail stores

Risks:

● More leaks during transport compared to 3:1 plastic bottles

 ● More complicated to use as it requires to use scissors to cut

● Have to hire subcontractor for packaging material which meant that product quality and
on time delivery is not in control

Add to existing product line a stronger 4:1 concentrate in an innovative dissolvable packet
for 32 oz. bottle refill:

Rewards:

● 6% cost saving in package and delivery

● Packaging volume reduced by 90%

● Very easy to use slides through standard opening of 32 oz. spray bottle

Risks:

● Would require extra efforts to hold the packets upright during shipping

● Less sturdy than pouch and plastic bottle

● Greater chance of leaking during transport

● Most likely to burst or rip if dropped or snagged

As it is mentioned that the sales are going down from the last five it is clear that the existing
product lines have faults. Also the forecast of CleanSpritz brand team and Division finance team
shows that the projected 4:1 Concentrated Standards Units(SU) will have cannibalization effect
on the sale of diluted spray which shows that customers are willing to move towards new product
line.

Q3. Given your decision, what marketing mix do you recommend for the CleanSpritz product
line? What are the economics of your recommendation?
Customers are concerned regarding effect of cleaning products on the environment as well as on
health. It is true that at present this is not completely shown in their buying patterns. But the
trend is on the upward side for environmentally friendly products. Earlier in 2008, according to a
survey, 32% of the people were environmentally concerned which in 2011 rose to 41%.

So to cover both points i.e. convenience of customers and environmentally friendly product the
option to add to existing product line a stronger 4:1 concentrate in an innovative dissolvable
packet for 32 oz. bottle refill is most suitable.

● Educating the customers about the new product and its benefits to the environment.

● Launching a new marketing campaign for the launch of the new product.

● Adopting safer and more secure transportation for the new product as the new product is
fragile
● Advertisement special focused on ease of use and environment friendliness
● Although the cost of opting this option is high initial but it will give results
● From the survey we can see that customers were more satisfied with dissolvable
packaging over pouch on transferability and handling