GRI

Strategy 2

INCREASE BRAND INVESTMENT

Putting additional resources behind our brands, with a focus on targeted plans to drive demand for our products at the three moments of consumer choice, which we refer to as the 3Ds: desire (prepurchase), decide (point-of-purchase) and delight (post-purchase).

  • Behind new products such as Hidden Valley® buffalo, cilantro lime, honey BBQ and sriracha ranch flavors; Fresh Step® with Febreze cat litter; Glad® DualDefense and Glad with Clorox® anti-microbial trash bags; Kingsford® professional briquets and briquets with hickory and applewood in small sizes; Clorox Healthcare® Optimum-UV Enlight system; and Clorox® Clothes laundry additive (International), we delivered about 3 percent incremental sales growth from innovation.
  • Burt's Bees® all-natural, moisturizing lipsticks were introduced with features unique to the category, including lightweight, recyclable No. 5 plastic packaging composed of 60 percent post-consumer recycled materials, with no outer packaging — adhering to the brand’s sustainability commitment.

PRIORITIES

Business

  • Increase sales from brands that deliver superior consumer value.
  • Expand sense-and-respond digital marketing and e-commerce.
  • Implement new tools and sustain investment to increase growth from product and commercial innovation.

Corporate Responsibility

  • Drive sustainability improvements in product formulations and packaging and ensure key renewable materials are responsibly sourced.
  • The Brita® brand announced a partnership with professional basketball star Stephen Curry to tout the benefits of Brita® filters and the importance of drinking water. As the brand ambassador, Curry was featured in an advertising campaign that included television, print and digital and appeared at public events to spread the positive message about maintaining a healthy lifestyle.
  • The Brita® Infinity pitcher, the company’s inaugural Internet of Things product that uses the Amazon Dash Wi-Fi-connected platform to automatically reorder filters when a replacement is needed, was conceived and launched within a 12-month period, tapping the expertise of a cross-functional team from Research and Development, Information Technology, and Marketing.
  • As part of the ongoing build-out of our sense-and-respond marketing capabilities, we used a data management platform for 40 percent of our digital media purchases, allowing for more refined consumer targeting, with initial results showing this driving a mid-single-digit increase in the return on investment of our advertising dollars. SRM pilot projects also yielded success, helping identify new target audiences and informing the development of more effective advertising campaigns for our Brita®, Hidden Valley® and Clorox® brands.
RESPONSIBLE SOURCING
  • The Burt’s Bees® Natural Launchpad, which focuses on health and well-being, was started to support entrepreneurs and create a potential pipeline for innovation. From 175 applicants, 10 winners were chosen to be part of the startup accelerator and receive financial support, coaching, networking and association with the brand.
  • We continued to increase the percentage of our overall media spending on digital communications, growing to 41 percent this year, double our investment in this space compared to two years ago.
  • We updated our public commitment to improve responsible sourcing of palm oil-derived ingredients, ensuring it is done in a manner that does not contribute to deforestation, protects peatlands and respects human rights. We developed a time-bound action plan to work with our supply chain and third-party stakeholders to achieve those goals and will publicly report on our progress twice annually.
  • A number of businesses reduced materials used in their products and packaging. Our Professional Products Division introduced a new 700-count wipe alternative that uses 24 percent less overall packaging per wipe than the 500-count product it replaced, and we reduced corrugated paperboard in cleaning product shipping cases by 2.6 million pounds, continuing to minimize the amount of material entering the waste stream.
  • In the highly competitive litter category, we introduced Fresh Step® with Febreze, committing 100 percent of the brand's media spend behind the launch. The differentiated benefit of eliminating rather than masking odor resonated with consumers and helped drive growth in volume and sales as well as a turnaround in market share in the fourth quarter.
  • The first-ever Burt’s Bees® television advertising campaign for the core lip-care category, which launched in the second quarter of fiscal year 2015, helped drive a 1-point increase in market share1 and 1.1 percent growth in household penetration2 for lip balm in fiscal year 2016. See our ad here.
  • Consistent with the brand’s goal to source ingredients responsibly, the Burt’s Bees® business converted to the use of community-sourced beeswax for its core lip balm products.
  • By increasing our investment in the Clorox® disinfecting wipes business, the brand — already No. 1 in its category — grew market share by nearly 5 percent3 and household penetration by 3 points4 while also regaining distribution with its largest customer in the club channel after a two-year absence.
  • Based on a study of online flu conversations that showed a strong correlation between these conversations and actual flu cases last year, the Clorox® brand launched the Clorox® Cold & Flu Pulse, a cold and flu social media conversation tracker that is a predictor of the flu. This platform, which generated more than 33,000 followers, allowed consumers to take preventive steps to kill germs before viruses spread.

1 IRI Multi-outlet Sales (52 weeks ending June 19, 2016).

2 IRI Panel Data (52 weeks ending July 10, 2016).

3 IRI Multi-outlet Sales (52 weeks ending June 20, 2016).

4 IRI Panel Data (52 weeks ending May 2016).