Q&A BENNO CEO, CHAIRMAN OF THE BOARD, THE CLOROX COMPANY
How can retailers and CPG companies adapt to take advantage of this market shift? There’s an opportunity to collaborate more in service of the consumer. The heart of the discussion isn’t about technology; it’s about the consumer – keeping pace with and responding to changing needs. Consumer insights continue to play a central role, whether consumers are shopping online or in-store. By sharing data, we can collaborate on platforms and systems that are more in sync, and deliver a rewarding and seamless shopping experience.
How will the emergence of the digitally engaged shopper impact CPG companies’ marketing efforts? This is a big growth opportunity, and we’re seeing payoffs for companies that invest early and smartly. Clorox is investing in e-commerce and digital marketing so that we win with the digital shopper. We’re tapping technology partnerships to help us deliver consumer experiences that extend beyond product usage. We recently launched geo-fencing with Snapchat that targeted consumers in a specific neighbourhood and invited them to an experiential event for the launch of Burt’s Bees lipsticks. We’re also using virtual reality to showcase the Brita brand’s clean-water initiatives for Canadian consumers.
24
May | June 2017
At Clorox, we’re moving from doing digital to being digital. It impacts almost everything we do as a company, and we’re investing strongly behind digital in key areas of our strategy. About 45 per cent of our working media budget is dedicated to digital. And, our innovation work is integrating technology in our products and in e-commerce. For example, in the U.S., the Brita Infinity pitcher is Wi-Fi connected. It tracks your usage and automatically orders replacement filters through Amazon Dash Replenishment. Do you think e-commerce sales could potentially cannibalize bricks and mortar, and if so, how can companies keep margins in balance? Clorox is focused on profitable growth, and our e-commerce sales are largely incremental. We’ve doubled this business over the last three years, and in the next three years, we believe we can at least double it again. Still, there’s some cannibalization, which is why it’s important to prioritize a portfolio of SKUs that have high consumer demand and are, at minimum, margin neutral.