BPMM 6013Marketing Management

1.0

INTRODUCTION

Mj Brenner was found in 1925 in Toledo, Ohio by Micheal John Brenner. Started on
manufacturer and then expanded to produce product for paint preparation and clean-up. In
year 1950, the company was expended product for industry and household cleaners. In year
1975, the company was introducing product in Household widow cleaner called WinWipe
and for an Industrial product called Floormax. In year 1980s, cleaning industry continues to
grow through acquisition and international distribution. The benchmark was highlighted are
High quality, strong branding and innovation. High researches and development method been
use on products to ensure access the customer's wishes and competitive and maintaining
brand by limiting the process of introducing new packaging or logo. In year 2012, MJ
Brenner is a private company with 10,000 employees worldwide and manufactured and
distributed more than 30 products under 11 distinct brands and three distant categories such
as Industrial Cleaning Product, Household Cleaning Product and Auto Cleaning Products.

In year 1985, MJ Brenner acquired Stalton and Sons. The company was produced two most
popular products that had been gained in the market share called CleanSpritz and SparKleen.
In year 2011, CleanSpritz product line instead of anchor product called CleanSpritz allpurpose surface cleaner spray and 3:1Concentrated version of the CleanSpritz all-purpose
cleaner. The CleanSpritz all-purpose cleaner called has 32oz spray bottle in slight size, shape
and labelling reminded instead of water and mix of chemicals.
The company was launched the concentrated version that been sold in a 16oz, plastic bottle.
The features looks more cost effective, compact and easy to carry and environmentally
friendly moreover, it was smaller package and may reduce pollution. However the
weaknesses of this features is that consumer need to work more such as measuring, mixing,
pouring and stoking. CleanSpritz was strongly be advertise more on media campaign such as
on television compare to previous that only based on consumer promotion. CleanSpritz also
face the several factors that primer of declining sales such as about the economic recession
that cause of fewer consumers making a purchasing and the migrant that course of the
decreasing number of consumer. Demand on natural sources of product without chemical
ingredients and also the competitor who producing product with lower price.
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2.0

ISSUES AND PROBLEMS

CleanSpritzs future was uncertain because of the sales was decline. The major factors that
cause of the declining sales are environmental awareness among long loyal consumer and
existence the same product with the lower price.
In year 2009, CleanSpritz made some improvement on its existing all-purpose spray formula
be more environment friendly but compare to other competitors, the new formula and
packaging was non-competitive. Without admitting defeat CleanSpritz was come out with a
3.1 concentrated version of its all-purpose spray, but it still failed to meet the consumer
needed. Consumers seeking on product with minimize packaging waste and carbon footprints
but they couldnt find all these kind of features on CleanSpritzs product and simultaneously
CleanSpritz revenue getting drop again.
Between year 2006 and year 2011, when CelanSpritz combined revenue from dilute and
concentrate product the average rate was declined around 7.5% annually. This is cause of the
Economic recession that had lead of fewer consumers buying and some taken a long time to
made repurchase. Migrated to other areas or country also one of the reason of fewer
consumers buying. In addition consumer awareness of the environment due to the standard
chemical ingredients, be big challenging to CleanSpritz to ensure all the product produce
accordingly with the environmental benefit by providing high capacity on research and
development. However, the stronger competitor where by produce more low price product
with almost the same quality and it may cause of consumers to make a choice on brand.
In year 2010, consumer more interest in green cleaning supplies even the price is higher and
it become viral behavioural pattern trend in United Stated. It leads CleanSpritz more deeply
on researchers to determine the real consumers desire. It is about the price or the green
cleaner or it is about the brand confusion?

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3.0

CLEANSPRITZ's STRATEGY

On 21 September, 2012 Claire Beaton a brand manager for CleanSpritz all-purpose cleaning
spray, was lead a marketing strategy session with Steve Logan, senior vice president of
strategy for MJ Banners household cleaning division and also selected members Logans
advisor team. He knew the best way to increase the sale indirectly increase the revenue by do
some improvement on a concentrate version of its all purpose spray. Beaton been given six
month to do the research and strategy planning on concentrate launching.
There are two strategies options that had been created by Beaton and her brand management
team. The first option is about Re-launch the existing 3.1 CleanSpritz concentrate by focusing
on promoting the environmental benefit with reduced packaging (45% less packaging than
diluted spray), will be less pollution from freight and also can reuse of old spray bottle.
Though this effectiveness of effort, Beaton believed that 16 oz concentrate sales will be
increase more than 5M Standard Units.
The second option of Beaton and her brand management team had created is about add to
existing product line a stronger, 4.1 concentrate designed specifically to refill an existing 32
oz. Spray bottle. Agreed with the environmental benefit, the packaging designer come out
with two environmentally friendly and innovative package design on 4.1 refill concentrate.
First designed is about 6.4 oz lightweight with 100% recyclable pouch. Where by consumer
will use scissor to snip a dotted line across of the pouch then pour all the concentrate into an
old 32 oz spray bottle and fill to the top with water to create the CleanSpritz dilute. Second
designed 6.4 oz water soluble packets with feature of 100% biodegradable materials even
though the clear packet resembled plastic and it will dissolved immediately when it exposed
to the water. Consumer would need only to drop the tubular-shaped packet through an old 32
oz spray bottle and fill the rest with water.
In August, 2012 the result of consumer evaluation of packaging option showed that consumer
confident on CleanSpritz refill pouch and dissolved packet was higher even Beaton was
concerned about the discrepancy between reported consumer interest in green alternatives
and the actual sales and would that means to increase sales or consumer only seek for the
expensive private label?.However, Beaton and her team had decided the refill packages retail
price should be $5.69.

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4.0

MARKETING STRATEGY

After go through all the two strategies options that had been created by Beaton and her brand
management team, our group had decided to choose The seconds strategies option Add to
existing product line a stronger, 4:1concentrate designed specifically to refill an existing
32 oz spray bottle, to be packaged in either a lightweight pouch or a dissolvable packet.
We will use the 4 analysis method to elaborate our reasons why we choose the seconds
strategies option.
4.1

The first analysis method that we use is the Marketing Mix (4Ps). The
marketing mix is the set of controllable, tactical marketing tools that a
company uses to produce a desired response from consumers and is also a tool
to help marketing planning and execution. An effective marketing strategy
combines the 4 Ps of the marketing mix. It is designed to meet the companys
marketing objectives by providing its customers with value. The 4 Ps of the
marketing mix are related, and combine to establish the products position
within consumer needed.

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Product
The designs of recyclable pouch and water soluble packet are showed that
CleanSpritz taken seriously about the environmental concern as well as the

trends and consumer needed.

Both designs were friendly user where by consumer can make by them self
the CleanSpritz dilute, they just need only a few step and action such as

cutting, pouring and fill with water then may use it.
Clearly natural product sources and non- chemical ingredients as guarantee

save for healthy and environment.

The product feature itself showed that it is very marketable and profitable.

Price
As Beaton and her brand team mention on this case study, concentrate prices
would be low enough to compel loyal diluted spray users to switch to
concentrate because consumer will be looking for the good product with the

affordable price.
If CleanSpritz can maintain the benchmark on low price with higher quality of
cleaning product, consumer will make repurchase and indirectly it will be the
generations brand.

Place (Distribution)
Researched that had been made by Beaton and her brand team showed that in
year 2013, consumer would be willing to both increase spending and change
their behaviour. Consumer more interest in green cleaning product even it

expensive meaningless chemically and more environmentally friendly.

It had been viral in boarder trend in United State consumers.

Promotion
CleanSpritz strongly work hard for the advertising and had been allocated
more than 70% for trade promotions including on consumer promotion such
sweepstakes, coupons and reward program and mostly promotion by using

new media campaigns.

Media campaigns such as using advertisement on the television, radio,
newspapers and currently by using the media social approach. All the news
around the world can be finding through the internet and CleanSpritz will take
these opportunities to advertise the 4:1 Refill Concentrate cleaning products to
the consumers not only in United Stated event to consumer on around the
world.
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4.2

Secondly, for more strengthen on our groups decision by choosing the second
strategies option, we use the BCG Matrix as analytical tool in brand
marketing, product marketing and strategic management.

The BCG Matrix is composed of four icons, The Cash cows, The Star, The
Question marks and The Dogs. CleanSpritz was stands out as Cash cows in
the BCG Matrix because it has high market share in a slow growing industry.
In year 2011, CleanSpritz acquired revenues totalled was $53.76 million even
though United Stated was on Economic recession.
CleanSpritz was created a strong platform for brand marketing whereby this
product will get consumer attention because it was user friendly and the most
important its packaging was environmentally friendly. As stands as Cash cow,
to remain the high market share even in a slow growing industry, CleanSpritz
should constantly to continuing advertising and promoting its brand as product
on green themes and easy to use. Consumer admired to seeking the quality,
innovative and safety product even though the price is expensive. Research
and development on consumer behaviour should be constantly to ensure meet
the consumers needed.
CleanSprtiz as Cash cows, do not hesitate to made as little investment as
possible, even it look wasted in an industry with low growth. The action taken
by Beaton and the brand team to proposed a 6.5% increase over the 2010
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advertising and promotion budget for Refill Concentrate product was the right
way. The promotion should be expended not only for consumer promotion
such as rewards or coupon; it also should be in all media promotion such as in
television, news papers, magazine and at the social media especially and if this
effort will be constantly and disciplined, indirectly will increase the market
share.
4.3

Thirdly, we use a SWOT Analysis. It may sound like a form of mission

planning for James Bond. A SWOT simply stands for: Strengths, Weaknesses,
Opportunities, and Threats. Each area forms a box on a grid and we fill in each
section to help formulate a marketing strategy.
Strengths and weaknesses focus our business to look internally at what our
business can do. Many businesses are great at looking inward but fail to look
outside their company. Threats and opportunities are external; focusing on the
conditions of the real-world. This is where a SWOT analysis is helpful. It
challenges us to see beyond our company walls to determine what
opportunities are open for our company and how to capitalize on our strengths.

Strengths
Product that already know since year 1975
High quality , strong branding and innovation
They are loyal consumer still stay behind the CleanSpritzs product because

they have higher trusted and confidence level on CleanSpritzs brand.

Maintaining brand by limiting the process of introducing new packaging or
logo
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In year 2008, Concentrate Cleaning Spray feature was more cost effective, the

bottle was compact and it easy to carry and also it environmental friendly
Beaton and her brand team were very competent by created the very
innovative package designs and environmentally friendly, the 4.1 Refill

concentrate.
Mj Brenner Company has enough income to do the research and development
on consumer behaviour to meet the consumer needed, indirectly to increase
sale.

Weaknesses
In year 2009, overlooking about the consumer awareness of green product,
currently consumer attention more on product on minimize packaging waste

and carbon footprints.

ClenSpritz was launched the Concentrate Cleaning Spray in year 2008, but
Not enough Branding Image on product exiting all- purpose spray formula in year
2009 cause of fewer consumer buying and repurchase the product.
the features not friendly user because consumer need to do more woks such as
measuring, mixing, pouring and storing rather than previously.

Opportunities
The trends on green cleaning product, consumer more interested on the natural

product sources without chemical ingredients also environment friendly.

Advertising will make consumer more influence by using the media
approached such as on television and social media especially.

Threats
Economic recession cause of fewer consumers making a purchase. The

migrant also decrease the number of consumer.

Environment benefit is the priority on the selection of product as well as the

impact of chemical product on health and environment.

Competitor with lower price and standard quality lead consumer has option to
choose.

4.4

Finally, the fourth analysis that we use is a Product Life Cycle analysis. It is
an important concept in marketing. It describers the stages of product from
when it was first thought of until it finally is removed from the market.

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The main stages of the product life cycle are:

Introduction Stage
This stage more on incurred high costing there is cost of research and
development, consumer testing and the marketing for launching a new
product.
Growth Stage

The growth stage where a strong growth in sales and profit because the
company stat to collect income from sale and as well as overall amount of
profit will also increase.

Maturity Stage

The maturity stage, the product is now established and the aim for the
company is how to maintain in the market share and improvements of the
production process.

Decline Stage

Final stage of the cycle, when sales begin to fall because the market
becoming saturated where consumer are switching to a different type of
product.

CleanSpritzs product life cycle could be illustrated by looking at the sales during the
time period of the product. In this case, extension strategies mean extend the life of
the product before it goes into the decline. Because of that situation, CleanSpritz was
use marketing techniques to improve the sales and the marketing techniques taken as
below.
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1. Adding Value & New Packaging

Add to existing product line a stronger, 4.1 concentrate designed specifically to

refill an existing 32 oz. Spray bottle. The packaging come out with two
environmentally friendly and innovative package designs on 4.1 refill
concentrate. First designed is about 6.4 oz lightweight with 100% recyclable
pouch. Second designed 6.4 oz water soluble packets with feature of 100%
biodegradable materials even though the clear packet resembled plastic and it will
dissolved immediately when it exposed to the water.

2. Pricing Reduction
To get attractive to consumer, Beaton and her brand team had decided for refill
packages retail price is $5.69 compare to diluted spray price was $5.99.
3. Advertising and promotion
In effort try to gain a new consumer and also remind the current consumer,
aggressive promotion had been done by focusing on social media campaign rather
than consumer promotion only (given coupon and rewarded). In that case, Beaton
and her brand team were proposed a 6.5 % increase over the year 2010
advertising and promotion budget.

5.0

RECOMMENDATION
There are a few recommendation to archive MJ Brenner on CleanSpritzs product
goals and performance, meanwhile to increase revenue and market share and able to
compete with others competitors.
1. Survey on Green Guidance for Cleaning Products Sector from Other County
In current CleanSprtiz situation, the US Government has yet to finalise and
firmly stated the guidelines for green labelling. The survey has to be done to
determine or forecast most likely the US Government will implement.

While waiting for the US Government firmly stated on freen labelling

guidelines, Beaton and her management team can consider to use the United
Nation Report on Sustainable Procurement Guidelines for Cleaning Products and
Services dated 6 May 2008. The report consist the clear guideline on the
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matter. Basing on the United Nation Report, Beaton should be able to instruct
Research and Development team to start to develop the New CleanSpritz.
2. Packaging
Once the new CleanSpritz has developed, Beaton and her management team
need to concentrate on packaging design. It must be catchy, portray of
environmental friendly and government endorsement as biodegradable product
is stated clearly. It must state important information on the packaging itself and
how the usage will benefits the user or consumer.

3. Distribution

Basically CleanSpritz using the retailer to distribute all product produce, our
recommendation is that Beaton and her brand team can change the distribution
method by using the Vending Machines cleaning product. By build this
Vending Machine, consumer much easier to buy the product at everywhere and
anytime they need. As we know retailer usually open the shop on the morning
and will be close at afternoon. However, by using the Vending Machine
consumer will buy the cleaning product anytime they need and it lead
consumer easy to make repurchase as much as they want.

This Vending Machine location also important to ensure consumer easier to get
the product. The location should be at the supermarket, hypermarket, shopping
mall where many consumer entering every day.
4. Essential oil blends
Everybody like to smell fragrance, Beaton and her brand team can took this
opportunities to create the cleaning product based on essential oil as
replacement for chemical ingredients. This product is not only has a smell
great in additional are done so in a healthy responsible manner.

It can be produce with several flavours such as lavender oil, vanilla oil, lemon
oil, green apple oil and etc. This product was marketable and different from
other product indirectly may attract consumer to buying.

In this case, Beaton and her brand team should aggressive on promotion and
advertising to introduce the product to consumer.
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5. Well Trained and Knowledgeable Sales Team

The sales personal need to be well trained and fully knowledgeable on all
related matters of CleanSprtiz. They have to know each content in CleanSpritz,
what is the purpose of the chemical, in what term or why we say that
CleanSpritz is environmental friendly, how is going to react to the surface and

how CleanSpritz is a safe product and etc.

The correct and effective products information deliver to consumer is very
crucial as they will make decision based on information that they gather. It is
important to make it right to introduce or promoting CleanSpritz to the
consumer. The positive impact to the consumer is important and it will
determine either they buy and consistently use the new CleanSpritz.

6. Government Endorsement
No doubt that at this moment, the US Government has yet to be finalising on
the guidelines on green labelling, but Beaton and her management team have
to obtain the government endorsement on new CleanSpritz. With government
endorsement, the consumer will be more confident to purchase and use it.

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6.0

REFERENCES

http://en.wikipedia.org/wiki/cleanspritz_plan

Maekrting mix: product,price,place & promotion http://.marsdd.com/mars-library/the

marketing-mix-in-marketing-strategi-product-price-place-promotion/

http://en.wikipedia.org/wiki/SWOT_analysis

http://en.wikipedia.org/wiki/Growth-share_matrix

http://productlifecyclestages.com/

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