The main issue is whether Colors would continue to leverage growth around it sustainable products or focus on just lowering costs and increasing profitability in the short term. Alternatives considered: – Colors could give up the green strategy, as this is an expensive strategy and not one to give short-term returns and focus entirely on leveraging the primary’ products further to countries outside the LLC.
S to fuel profits and expansion.It could continue with its brand Britain but divest from Burst’s Bees and Greenhorns as Britain has already been established as a leader in its segment and as a cost effective environment friendly alternative. This position could be further pushed to accelerate growth and market share within the sustainable yet profitable space. – Also, it could continue investing in and developing its sustainable brands as this is where the future lies.
This is what will set Colors apart from its competitors and has the potential to make Colors a strong player in the long term.In my opinion, Colors should continue to leverage green for growth however not let the increased focus distract them from increasing sales, revenues and market share. I recommend revamping the existing marketing mix around he sustainable products since clearly the three year old marketing program was not very successful as the product awareness could not achieve a long term position. The products were seen as ‘fads’, not as superior products that added value.The targeted consumer audience needs to be made aware of the value they add to their everyday life, how the green products are not just good for the environment but for them as well. Colors could adopt a mix of a cost effective and differentiation strategy for its ecological products. Cost cutting could be in the form of decreasing the quantity per unit or installation the current product line. Additionally, the management mentioned internationalization as one of the targets of the centennial strategy.
The company can look to penetrate the developing economies with their established primary brands such as Pine-sol, Formula 409 as these products have reached maturity in the US. Their low prices and effectiveness can help the company’s global aspirations along with supporting the long- term strategy by keeping the sales and revenues consistent. Cons & Challenges: – General perception of natural products being not that natural and environment friendly, expensive and not good at getting the job done presents Colors with a challenge that it needs to break out of.In the case ii both Burst’s Bees and Greenhorns due to unawareness people are less Willie to try’ them and tend to go towards traditional cleaners or completely nature homemade cleaners. – Closer’s inability to convert the desire of consumers buy natural products into a considerable market share and loyalty to their products.
– The company also has an inconsistent image where it is selling ‘toxic’ household cleaners on one hand and natural products on the other.