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Case Analysis CleanSpritz

CleanSpritz's annual sales have declined 7.5% annually over 5 years as customers switch to more environmentally friendly and cheaper alternatives. The brand manager disagrees with the suggestion to reduce distribution. There are three options proposed: heavy promotion of environmental benefits, launching a new more concentrated 4:1 product, or delaying changes for 2 years. The recommendation is to launch a 4:1 concentrate that refills existing spray bottles in a lightweight pouch packaging to appeal to price-sensitive customers and retailers, reduce costs by 14% and 85% packaging volume respectively, and market the environmental benefits strongly.

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KANIKA GORAYA
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960 views

Case Analysis CleanSpritz

CleanSpritz's annual sales have declined 7.5% annually over 5 years as customers switch to more environmentally friendly and cheaper alternatives. The brand manager disagrees with the suggestion to reduce distribution. There are three options proposed: heavy promotion of environmental benefits, launching a new more concentrated 4:1 product, or delaying changes for 2 years. The recommendation is to launch a 4:1 concentrate that refills existing spray bottles in a lightweight pouch packaging to appeal to price-sensitive customers and retailers, reduce costs by 14% and 85% packaging volume respectively, and market the environmental benefits strongly.

Uploaded by

KANIKA GORAYA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case: CleanSpritz

Problem statement:

CleanSpritz’s future is uncertain as the annual sales are declining at an average rate of 7.5% in 5
years because of shift of loyal customers to other environmentally friendlier substitutes and cheaper
options. MJ Brenner suggested reducing the distribution of the product. I, Claire Beaton, Brand
Manager for CleanSpritz disagree with the decision and hence a proper strategy is required to keep
the product in the market. There are three options:

 Re-launching the existing 3:1 concentrate with heavy environmental benefits focused
promotions
 New 4:1 concentrate product to refill an existing 32oz spray bottle packaged in either a
lightweight pouch or a dissolvable packet.
 No short term changes. Re-launching the product with 99% biodegradable spray 2yrs later or
cartridge system 12 months later.

Recommendations:

Adding a stronger product line 4:1 concentrate to refill 32oz. spray bottle in a lightweight packet is
highly recommended.

 Even though the customers are environment concerned, they are not considering the same
fact while buying as interpreted by survey. So to increase sales, retailers is the segment
needed to be focus for better positioning of the product.
 Since my end customers are price sensitive and are not considering brand while buying, to
ensure the sales, product is needed to be on the shelf with attractive packaging and reduced
prices as compared to the other competitors.
 It will be more cost effective as this will help to save 14% of the cost in packaging and
delivery as the packaging material volume is reduced by 85%.
 The concentrated and reduced package size gives a strong platform for marketing. This will
give irresistible advertising message focusing for the betterment of the environment.
 Customers are more familiar with the pouch because of which customers adopting the
product will increase.
 Can be shipped in the already existing shipping containers used for 3:1 concentrate so the
cost can be reduced.
 As the cost will be reduced this will compel loyal diluted spray users to switch to
concentrate.

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