CleanSpritz Harvard Case Solution & Analysis

CleanSpritz Case Solution

RESPONSIBILITIES OF THE COMPANY AS A CORPORATESOCIAL CITIZEN

This case focuses on the problem, which CleanSpritz is facing due to the rising concerns of the consumers regarding the environmental effects of the product.Lately, the company came up with an attractive plan of managing a consumer group that it has lost by revising the strategies and re branding its image as a responsible corporate social citizen.The following are the measures which it took to fulfill the responsibility of a corporate social citizen

  1. Adding a New Product:In order to make the environment safe and healthy,the company introduced a new product in the market with the composition of 3:1 ratio of water and cleaning chemicals respectively in a recyclable pouch to recreate and build the image of corporate social responsible company that takes care of the environment around the company’s customers.Moreover, the new product reduced the wastage as well as the freight pollution.
  2. Adding a concentrate in new packaging:The company aggressively invested in the product enhancement and product development strategy to create an environmental friendly image.In order to do so, the company launched a concentrated product in a dissolvable packet in order to provide ease to the customer from the hassles of suing CleanSpritz pouches which had the procedure of pouring, mixing of the mixture in big water cans.

These were few factors which the company considered in order to fulfill the responsibilities of a corporate social responsible citizen.The company as a whole has some responsibilities, which it took into account when faced with environmental issues.The key responsibilities of the company towards the environment issues were:

  • Reducing the waste material produced and disposed in the environment.
  • The chemical product should be tested, which is used in cleaning households, in the laboratory to identify if there are any harmful effects when using the product.
  • Communication with the target market regarding the uses and precaution that must be taken into account when using the cleaning agents.
  • The company can also spread the sense of ecological balance by making its CleanSpritz 32 lb bottle reusable.
  • The company should emphasize on reducing the packaging cost and making the product in smaller skus in order to reduce freight pollution.(Sammi Caramela)

TRENDS OF ENVIRONMENTAL CONCERNS

After 2008, there was a financial crisis globally in which the buying habits and the consumption pattern of the consumers changed, as they became more price sensitive and demand such products, which were long lasting.

Moreover, the consumers also became cautious regarding the use of cleaning products as they were conscious regarding their health and safety of the children when using the products. In order to answer these queries and clear the confusion,the company launched its “Green” product which was an eco-friendly product and contained water mostly,therefore it was less dangerous to the environment and human.(Benson, (2003))

DROPPING OF SALE AND THE REACTION OF MJ BERNER

MJ Brenner, the owner of all the SBUs, of the company did not overact to the situation, which was presented to him,because according to current market scenario,the sales of CleanSpritz were continuously declining,despite the fact that the company has reduced its cost as well as its price in order to gain more customers, however its sales are still decreasing . MJ Brenner is determining whether to stop the production of CleanSpritz therefore, he should rather come up with a solution, which can increase the sales of the product.

The reduction in the sales is mostly due to recession, due to which the customer-based market has become price conscious and demands cheap products, which last for a long period of time.In such a situation, entrepreneurs have taken the step to launch eco-friendly brands that are affordable and as a result, force other companies to reduce their prices.The other reason for the reduction in the sales in CleanSpritz was the changing trend of the customers, as the customers focused on environmental issues and became inclined towards the use of eco-friendly products.As. a result, this phenomenon also reduced the sales of the company.(Oppenheim, 2008)..................

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