In five pages this paper discusses the acqusition by Clorox in 1999 and how Glad products have been marketed by Clorox in an attempt to reverse its downturn in economic fortunes. Five sources are cited in the bibliography.
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aspect of business Clorox was not very accustomed to because it has had the #1 bleach in the world for so many years (Hoovers, 2001; Robson, 2001). The Glad product
line accounts for 15 percent of Cloroxs total revenues (Robson, 2001). The food storage market is a $1.6 billion business per year (Tucker, 2000). Clorox Company is a
part of two Sectors in the Consumer Products industry: Cleaning Products and Personal Products. It is registered only one SIC Code - 2842 for Polishes and sanitation goods (Hoovers, 2001).
The Clorox Company is facing much greater competition in the food storage sector of the industry. Nonetheless, Glad plastic wraps, storage bags, and containers are the number 1 brand in
the world for this type of product. Glad represents Cloroxs biggest brand to date (Hoovers, 2001). It isnt enough, however, One of the problems was that Clorox purchased First
Brands at just about the same time that new no-name cheaper brands were being introduced on the market. It was also at the same time that resin prices began to
climb dramatically. The shelves of grocery and other stores are filled with private-label storage bags that are far cheaper than Glad bags or Zip-Lock, its chief brand competitor. Since 1995,
these private label food storage bags have grown at a rate of 12 percent per year. Compare this to the growth for the entire category, which is only 5 percent.
Consumers are choosing the cheaper bags far more often (Forbes O, 2001). Since 1995, the Glad bags market share has dropped by 17 percent. That is a huge
amount of share to lose. Hefty, owned by Pactiv Corporation, at the same time has doubled its market share in the last five years to 15 percent (Forbes O, 2001).