winning in desire, decide, and delight -...

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Winning in Desire, Decide, and Delight

Larry PeirosExecutive VP andChief Operating Officer, North America

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Centennial Strategy – June 2009

We make everyday life better, everyday

Maximize economic profit across categories, customers and countries

Be best at building big-share brands in economically-attractive midsized categories

• 3% to 5% Sales Growth

• EBIT Margin Growth +75 bps to +100 bps

• Free Cash Flow of 10% to 12% of Sales

Double-Digit Economic Profit

growth Be a high-performance organization of enthusiastic owners

Win with superior capabilities in Desire, Decide and Delight

Accelerate growth both in and beyond the core

Relentlessly drive out waste

ANNUAL GOALS STRATEGIES

MISSION

OBJECTIVES

ANNUAL GOALS

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Win with Superior Capabilities in 3Ds

DESIRE DECIDE DELIGHT

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3D Levers Drive ValueDeliver Against Affordability

Price

PerceptionProduct

3

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DESIRE

Good Progress Against 3Ds Tactics

Implemented Integrated Marketing

Communications

Strong investment in advertising

Print

Hispanic

PackagePR

Promotion

TV

On-line

Integration

$0

$100

$200

$300

$400

$500

FY09FY08FY07FY06FY05

INTEGRATED COMMUNICATION ADVERTISING SPENDING

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DECIDE

Cannondale Top 10 PoweRanking

Grocery stabilized with incremental

resources


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DELIGHT


Increasing % of Sales with 60/40 Wins

0%

10%

20%

30%

40%

50%

FY09FY08FY07FY06FY05

44%

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Impact of Pricing

• Commodity cost increases of nearly $600MM over last 5 years

• More than 50 price increases taken

• Almost 2/3 of portfolio impacted

• Key brands, like Glad Trash and Clorox Liquid Bleach, had multiple price increases

• Shares stable despite price increases

Made right investments to offset impact of pricing

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Shares Stable

Total Clorox Categories - US

24.5% 24.4% 24.1%22%

24%

26%

28%

30%

Apr-07 Apr-08 Apr-09

52 Weeks Ending

$ Sh

are

27.5% 27.3% 27.3%

All Outlet

Tracked Channels

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Looking Forward: New 3D Focus Area

DESIRE

Drive integrated

brand growthideas

DECIDE

Leverageshopperinsights

for assortment wins

DELIGHT

Deliverdecisive product

wins

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New 3D Focus Areas

DESIRE

Drive integrated

brand growthideas

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Brand Growth Idea

Consumer Insights

ExternalFactors

Consumer Megatrends

CompetitiveFrame

Drives brand AND CategoryFocuses all brand-building efforts

GROWTH IDEA

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+15%

Vegetable Consumption

(2) Vegetable consumption when HV Ranch on the table

*Source: University of California at Davis Expanded Food and Nutrition Education Program school study

Growth Idea: Hidden Valley®

Broaden use to all salads and vegetables becauseHidden Valley makes vegetables taste great

VegetableConsumption

Chronic Disease,Obesity

(1) Need for Veggies

67% 33%

(3) Consumer Preference

>

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Television Advertising

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60

Magazine Advertising


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Public Relations

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Results have been very strong• Maintained premium pricing

• Share of salad dressings +1.2 points*

• Record volume

• Record sales


* Source: IRI US FDKT P52WKS Ending April 2009

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Transform tap water for healthier, great tasting water that is better for you (health & value) and

the environment.

Growth Idea: Brita®

(1) Brita removes lead and other impurities

(3) One Brita filter eliminates the need for 300 bottles

(2) Only a pennyper glass

10

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Growth Idea: Brita® Commercials

Where you live - Advertising At the Gym Advertising

Value Advertising

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The Growth Idea has driven growth!• Category consumption up 10%*

• Record volume

• Record sales


* Source: IRI US FDKT P52WKS Ending April 2009

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Growth Idea: Clorox® Home Care

Technical Expertise

Increase disinfecting occasions with superior cleaning products that prevent family illness.

(1) Serious Consumer Need

80% of germs are spread by touching

surfaces

Powerful Brand

Highest ratedbrand on

“killing germs”

(2) PowerfulBrand

"Bleach has savedmore lives than any

other substance madeby man."

(3) TechnicalExpertise

Former President, AmericanPublic Health Association

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Growth Idea: Clorox® Home CareCommercials

TV AdvertisingGeneral Market

TV Advertising Hispanic

TV Advertising ‘Truth About Bleach’

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Mata 99.9% de virus y bacterias, incluyendoel virus de influenza humana (A H1N1)

Mexico

Costa Rica


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Results have been strong

• Clorox disinfecting +7% CAGR past 4 years

• Surpassed Lysol as leading disinfecting brand

• Driven significant international growth


winning in desire, decide, and delight -...

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