Bust the Silos: Clorox
Clorox: How the Traditional Organization Transforms
- How can Demand Creation work within a traditional brand management structure?
- How can intangibles be valued in a quantitatively driven brand management system?
- Why do functional departments and brand management hinder a knowledge management system?
"Innovation is more than R&D. It involves the organization as a whole and brand portfolio and strategy." -David Aaker
Any company can use demand creation to open itself for innovation and growth. At EMM Group, we have focused considerable demand creation work in traditional companies, including consumer packaged goods.
One of our clients is Doug Milliken, Vice President of Global brand Development at The Clorox Company. In this chapter, we’ll examine Doug’s story of transformation.
While better-publicized consumer packaged goods (CPG) companies such as Procter & Gamble Company are in the limelight more often, The Clorox Company ($5.3 billion revenue in 2008) has been a consistent leader in its industry—both in business processes and product innovation. Clorox represents many of the “Main Street” Fortune 500 Companies who have long histories with legacy products and legacy processes. They don’t make a lot of flashy acquisitions. They don’t brag about themselves at innovation fairs. But the active management of businesses such as Clorox Corporation to organize for organic growth has tremendous implications for the global economy. The Clorox Company is a harbinger of the opportunities for mainstream business to thrive in the post-recession economy.
In 2008-2009, The Clorox Company held up remarkably well to the economic roller coaster. It has maintained consistent earnings per share ($3.20 in 2008), EBITDA ($1.1 billion) and its stock market returns have bested the S&P 500 Index. The consumer non-durables sector is usually a safe harbor during an economic recession storm; household cleaning products are staples that need to be replenished no matter what happens in the financial markets.
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