Harvard Case - Keeping it Clean During COVID-19: The Sanitizer Shortage
"Keeping it Clean During COVID-19: The Sanitizer Shortage" Harvard business case study is written by Aradhna Krishna. It deals with the challenges in the field of Marketing. The case study is 4 page(s) long and it was first published on : Mar 16, 2020
At Fern Fort University, we recommend a multi-pronged strategy for Purell to navigate the sanitizer shortage and capitalize on the burgeoning demand. This strategy will focus on:
- Addressing the immediate shortage: Prioritizing production and distribution of existing products to meet the critical need.
- Leveraging the brand's equity: Reinforcing Purell's position as the trusted leader in hand hygiene.
- Capitalizing on the opportunity: Expanding product offerings and exploring new market segments to sustain long-term growth.
2. Background
The case study centers around Purell, a leading hand sanitizer brand, facing an unprecedented surge in demand due to the COVID-19 pandemic. This surge has led to a severe shortage of product, creating challenges for Purell in terms of production, distribution, and customer satisfaction. The case study highlights the company's need to navigate this crisis while also capitalizing on the opportunity for long-term growth.
The main protagonists are:
- Purell: The company facing the challenge of meeting the surge in demand.
- Consumers: Desperate for hand sanitizer due to the pandemic.
- Competitors: Other hand sanitizer brands vying for market share.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand recognition and trust
- Established distribution channels
- Expertise in hand hygiene solutions
- Existing manufacturing infrastructure
Weaknesses:
- Limited production capacity
- Difficulty meeting the sudden surge in demand
- Potential for supply chain disruptions
Opportunities:
- Growing demand for hand sanitizers
- Potential for product diversification (e.g., larger sizes, different scents)
- Expansion into new market segments (e.g., industrial, hospitality)
Threats:
- Increased competition from new entrants
- Potential for price wars
- Consumer fatigue and shifting preferences
PESTEL Analysis:
- Political: Government regulations on hand sanitizer production and distribution.
- Economic: Impact of the pandemic on consumer spending and purchasing power.
- Social: Increased awareness of hygiene and sanitation practices.
- Technological: Potential for innovation in hand sanitizer formulations and packaging.
- Environmental: Sustainability concerns related to packaging and production.
- Legal: Compliance with regulations regarding product safety and labeling.
Consumer Behavior Analysis:
- Increased hygiene consciousness: Consumers are more aware of the importance of hand hygiene.
- Preference for trusted brands: Consumers are seeking out well-known and reliable brands.
- Price sensitivity: Consumers are willing to pay a premium for essential products but are also price-conscious.
Competitive Analysis:
- Increased competition: New entrants are flooding the market, creating a more competitive landscape.
- Price wars: Competitors are lowering prices to attract customers, putting pressure on Purell's pricing strategy.
- Differentiation: Competitors are focusing on product differentiation through features like scents, packaging, and formulations.
4. Recommendations
Phase 1: Addressing the Immediate Shortage
- Maximize Production: Increase production capacity by leveraging existing facilities, exploring alternative manufacturing partners, and implementing efficient production processes.
- Prioritize Distribution: Optimize distribution channels to prioritize essential customers like healthcare facilities and government agencies.
- Communicate Transparency: Be transparent with consumers about the shortage and provide updates on production and availability.
Phase 2: Leveraging Brand Equity
- Reinforce Brand Positioning: Maintain a consistent brand message emphasizing Purell's commitment to quality, reliability, and hand hygiene.
- Strengthen Customer Relationships: Engage with customers through social media, email marketing, and customer service to build loyalty and trust.
- Leverage Public Relations: Partner with healthcare organizations and public health authorities to promote hand hygiene and raise awareness of Purell's role in public health.
Phase 3: Capitalizing on the Opportunity
- Product Diversification: Expand product offerings to cater to different needs and preferences, including larger sizes, travel-friendly formats, and specialized formulations.
- Market Segmentation: Target new market segments like industrial facilities, hospitality businesses, and schools.
- Digital Marketing Strategies: Utilize targeted digital marketing campaigns to reach specific demographics and promote new products.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Leveraging Purell's existing strengths in hand hygiene expertise and brand equity.
- External customers and internal clients: Addressing the needs of both consumers and healthcare professionals.
- Competitors: Staying ahead of the competition by focusing on product differentiation, brand building, and market expansion.
- Attractiveness: Potential for increased market share, revenue growth, and long-term profitability.
6. Conclusion
The COVID-19 pandemic has created a unique opportunity for Purell to solidify its position as the leading hand sanitizer brand. By addressing the immediate shortage, leveraging its brand equity, and capitalizing on the growing demand, Purell can navigate this crisis and emerge stronger than ever.
7. Discussion
Alternatives:
- Ignoring the shortage: This would damage Purell's reputation and lead to lost market share.
- Raising prices excessively: This could alienate consumers and create opportunities for competitors.
Risks:
- Production delays: Difficulty in scaling up production could exacerbate the shortage.
- Competition: New entrants may disrupt the market and erode Purell's market share.
- Consumer fatigue: Consumers may become less reliant on hand sanitizer as the pandemic subsides.
Key Assumptions:
- The demand for hand sanitizers will remain high in the near future.
- Purell can successfully increase production and distribution capacity.
- Consumers will continue to value Purell's brand reputation and quality.
8. Next Steps
- Immediate: Implement production and distribution optimization strategies.
- Short-term: Launch targeted marketing campaigns to address the shortage and reinforce brand positioning.
- Long-term: Develop new products and expand into new market segments.
This comprehensive strategy will enable Purell to navigate the sanitizer shortage, capitalize on the opportunity, and solidify its position as the leading hand hygiene brand for the long term.
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Case Description
This case looks at the product shortages of N95 and N99 masks, hand sanitizers and wipes as a result of a new coronavirus, COVID-19. Students have to respond to the question: What are some alternate strategies to control product shortages and how do they impact consumers and disease control?
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