Case Study
Nielsen Insights in Action:
The Clorox Company Has
Product Assortment In the Bag
Collaborative relationship with Nielsen yields
a fresh perspective on product mix
Company
The Clorox
Company
Perhaps best known for the bleach cleaning products that gave the
organization its start, The Clorox Company has evolved over its
nearly 100-year history into a diversified business with numerous
consumer product lines. Today, the Oakland, California-based
company has annual revenue of more than $5 billion and counts
well-known names such as Pine-Sol®, Tilex®, Burt’s Bees® and
Brita® among its brands. Nearly 90 percent of the company’s
brands hold No.1 or No.2 market share positions in their
categories.
In 1998, The Clorox Company acquired Glad® through its purchase
of First Brands, adding one of the world’s leading trash bag and
food storage nameplates to its portfolio.
The Business
Issue
The largest brand-name maker of waste bags in Canada, Glad’s
product innovation was vital in helping the company differentiate
from private label competitors. The Glad lineup saw a gradual
increase in packaging and product options over the past decade,
including the resilient ForceFlex® bags that hit store shelves in 2004.
Company Facts
The Clorox Company
• Founded in 1913 in
Oakland, California • Currently owns more than 55 brands worldwide,
including Clorox®, Glad®, Pine-Sol®, Tilex®, Burt’s Bees® and Brita®
• Products are sold in more than 100 countries • Approximately 8,300 employees
While a proliferation of waste bag SKUs created more choice for consumers, in 2008 the company explored
whether paring down the product line across Canada would create a simpler, more efficient shopping
experience for consumers. Reducing the number of offerings also had the potential to lower operating costs
and create supply chain efficiencies. Clorox’s management team brought in long-time collaborator
The Nielsen Company to bring actionable insights to its product assortment process.
Nielsen Insights in Action:
The Clorox Company Has
Product Assortment In the Bag
The Solution
Case Study
“
Nielsen helped The Clorox Company better understand the
factors influencing waste bag purchases and implement a
strategy to optimize the company’s product mix. Research
showed that consumers, who were making less frequent shopping
trips since the recession began, were confused by the vast number
of options on the shelf. Creating simplified store shelves to help
buyers choose the appropriate product for their needs took on
added importance.
An experienced Nielsen team worked full-time with The Clorox
Company to help evaluate which existing SKUs to retain. Drawing
on extensive historical purchase data and its proprietary Nielsen
Assortman Optimizer simulation software, Nielsen offered a
detailed analysis of the brand’s assortment that looked beyond
traditional metrics such as sales performance and velocity. By
offering insight into how different products within a brand and
category relate to one another, Nielsen gave the company a
clearer perspective on which items contributed the most to the
performance of the brand and category.
“Through a truly collaborative process, Nielsen worked with us to
highlight opportunities and identify actions that make the most
sense from an operational standpoint,” said Chris Budinszky,
Clorox’s Business Insights Lead. “It helps to work with a company
that really understands our business, which makes implementing a
new strategy a lot easier.”
A Win-win
Outcome
“Rethinking our product
mix had important
implications. “It’s
benefitted consumers,
who are better-equipped
to select the waste bag
products they need, as
well as helped retailers
make the most of their
limited shelf space.”
”
Chris Budinszky,
Clorox’s Business Insights Lead
The Clorox Company began approaching major retailers in late 2009 regarding a collective effort to
simplify the shopping experience for consumers and, as a result, improve sales. The response to Clorox’s
sophisticated, insights-driven strategy was overwhelmingly positive. Consumers have responded favorably
to the streamlined assortment, as evidenced by baseline category growth at many retailers. Meanwhile,
shrinking Glad’s SKU count by 18 percent helped Clorox lower costs and simplify its supply chain. In addition,
the collaborative assortment optimization process was effective at strengthening Clorox’s relationships with
retailers by demonstrating their commitment to category-focused insights.
“Rethinking our product mix had important implications,” Budinszky said. “It’s benefitted consumers, who
are better-equipped to select the waste bag products they need, as well as helped retailers make the most of
their limited shelf space.”
To learn more about how Nielsen can help with your assortment
strategies, contact [email protected] or visit www.nielsen.com
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