Friday, December 17, 2010

Can Clorox Clean Up in Other Countries?

Clorox, nearing its 100th birthday, is facing intense competitive pressure in the United States, where recession-weary consumers are still squeezing everything they can from every dollar they spend. To keep growing, the company sees increased profit potential in international markets, both close to home and halfway around the world. For example, it's launched an outreach initiative in Quebec, building on local interest in hockey.

Developing nations in Asia and elsewhere are another important target for Clorox. In a recent interview with McKinsey Quarterly, the company's EVP-International points to the rapid growth of demand in emerging economies and the firm's drive to become #1 or #2 in product categories where it can achieve price premiums.

However, P&G and Unilever have long histories of marketing in developing nations, where they've built strong brand images and solid distribution networks. Can Clorox wipe away the competition in emerging markets and profit from its international strategy?

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