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A Marketing Audit On Glad Trash Bags Of Clorox Company

6310 words - 25 pages

Consumer Packaged Goods compromise the bulk of Clorox's products. The segments in which the Glad brand operates yield almost $8 million retail per annum with three key categories including - but not limited to - trash bags, wraps and disposable food containers. Glad's main competitors are Hefty (Pactiv), SC Johnson & Sons, Ruffy, Reynolds, and Rubbermaid. Hefty is the most popular brand for trash bags, while Ruffy is on the lower end and Clorox ranks in the middle. SC Johnson - which produces Ziploc Bags and SaranWrap - is Glad's main competitor in the market for plastic wrap and disposable food containers (Cheryl Hagedorn).As a result of longevity and therefore strong brand awareness, competition is fierce in these various markets. Glad's competitors work with a greater amount of working capital and they spend an abundance of money at trade with retailers in an effort to gain sales. Glad's Contribution Margin goals are lower than their competitors'. Glad has a low contribution margin, but must monitor the cost of Resin prices. Resin is a hydro-carbon secretion of many plants, particularly coniferous trees, valued for its chemical constituents and uses such as varnishes and adhesives, as an important source of raw materials for organic synthesis, or for incense and perfume ( Much like the price increases in the natural gas and oil industries, Glad cannot control the price increases of Resin. Thus, because Glad cannot control Resin prices, Resin prices control Glad and the pricing of their products, and it is the same for all of Glad's competitors (Cheryl Hagedorn). Clorox accepts the lower profit goals because they have greater profits in the other sectors that they compete in.Unusual for a corporation of its size, SC Johnson & Sons is a privately held company. This means that ownership of the company is held by a relatively small group of holders whose shares are not publicly traded on the stock market. This gives them an immense competitive advantage because they do not have shareholders that they need to pay. The operations and profits belong exclusively to the owners. They take the risks and reap the benefits. Whatever profits are left over after all of their contracted expenses are paid belongs to the owners of the company and they decide what to do with the earnings. Furthermore, a privately held company is more likely to have greater flexibility and fewer constraints in management and operations (Cheryl Hagedorn).Glad's broad range of targets spread across the U.S. This is imperative because they produce commodity items. They have also partnered with other large companies in order to from a competitive advantage and economies of scale. Economies of scale can be defined as: "a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit" ( For example, Hillshire Farms has partnered with Glad to package their meats using GladWare...

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