CleanSpritz Case Solution
1. What, if any, responsibilities do companies have to be a good corporate citizens relating to environmental issues? What are the trends?
Clean Spritz is a generally useful cleaning splash under the MJ Brenner organization its sales have been declining subsequent to marginally sooner than the recession time frame. However, the rate of customers who really aware of the green family unit cleaner weren't that high (48% in 2008 and 58% in 2011), therefore, Claire Beaton needs to present four key alternatives to the organization meeting: (1) base case situation of keeping up existing conditions and holding up (no adjustment in short term); (2) re-dispatch the 3:1 concentrate with substantial innovation; (3) include the 4:1 refill focus in recyclable pocket; (4) include 4:1 refill concentration in the dis solvable parcel.(Zalosh, 2014).
The development of new product requires the more technology use and also heavy research and development for launching it with 99% of the biodegradable, as the company’s sales has been declining since past years and it would also take some more timefor its relaunching that may arise the risk of losing loyal customers. Therefore, the company is introducing the “Green Brand” (alternative 3 and 4)that will provide a new way to clean, which is environment friendly.
2. Is MJ Brenner overreacting to the environmental threat? Explain the drop in sales.
The sales of the company is decreasing since last five years, the reaction of management is concerned more with the environment concerns to all the US customers. The company is not over reacting because the sales are declining more and it should take reasonable steps to improve its profitability and this can be occurred through making some improvements in its existing products or generating some alternative as the company is doing, as mentioned in above answer.
Drop in Sales:
After the recession the sales have been declined that decreased the demand of the cleaning products especially, hard surface cleanser hat decreased the sales of $ 13 billion. The reason is that the consumers began the price sensitive after the recession period that resulted in decline of sales by 11% along with this, the buying pattern of the consumers changed and they used to store the cleaning products and refill those products for next time using. The trend shows that the customers increased its usage of the products but did not changed its buying pattern that resulted in decline of sales.
3. Describe the CleanSpritz household users and their purchase motivation.
The company developed its most relevance household and industrial cleaning products named as Win wipe (the household window cleaner) and Floormax (the industrial floor cleaner) and theses resulted in continued growth of the company’s sales.
The customers began to think more about their well being and nature. The third exhibit demonstrates the change in trend of household hat 55% of shoppers were worry about the effect of the chemical and that has expanded for 15% in 3 years. On the other hand, 75% of the clients in 2008 were more worry about nature than a year ago and it additionally expanded for 7% in 3 years. (Zalosh, 2014)
It was observed that the household customers are facing the problems that resulted in decline of the sales and therefore,the company decided to introduce 17 new brands I the household cleaning items that are environment friendly that may increase the motivation of consumers to buy the products...................
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