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OXICLEAN STARTED IN A GARAGE AND WAS LATER SOLD FOR $325MM!

BACKGROUND

Now the #1 Laundry Stain Remover in the U.S., OxiClean was launched out of a garage in 1998 by Max Appel and his two sons, David and Joel. Initially, they built a 7-figure business selling OxiClean in trade shows, and eventually generated over $5 billion in total sales on HSN, through TV infomercials and in retail, and OxiClean is widely considered the biggest DRTV success in history.

CHALLENGE

Clorox, a multi-billion dollar, century old competitor, attacked OxiClean head on by spending millions of dollars in advertising support for a copycat product, Clorox OxyMagic. OxiClean (then owned by Orange Glo International) sales, at the time approaching $200mm annually, started to decline sharply.

STRATEGY

Jon LaClare and a team of brand managers were brought in to help refocus the company on direct-response advertising that pays for itself to continue to drive awareness in a cost-efficient way that Clorox was
unable to mimic.

 

The team also continued to innovate by launching Kaboom Bathroom Cleaner and Kaboom Bowl Blaster (which quickly became the #1 toilet cleaner) as well as OxiClean Miracle Foam, OxiClean Detergent Ball and OxiClean Liquid.

RESULTS

OxiClean successfully fended off Clorox, and as quickly as it arrived, Clorox OxyMagic was discontinued into the product failure graveyard.

Over the next several years, OxiClean company revenues grew to $250mm, and in 2006, the company was sold to Church & Dwight (makers of Arm & Hammer and Trojan brands) for $325mm, and the founders have hired Harvest Growth to help with several product launches after they exited OxiClean.

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