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English - The Clorox Company

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PRODUCTS<br />

Our Products Delight Consumers<br />

We are increasing the pace of innovation through a more open and transparent process that<br />

extends beyond our own teams of scientists and marketers. <strong>Clorox</strong>Connects, for example,<br />

is an online resource through which individuals can share their own inventions. And<br />

partnerships with Edison Nation and Evergreen IP, companies that facilitate external idea<br />

solicitation and evaluation, are also helping to bring in more new ideas. For more information<br />

visit www.thecloroxcompany.com/innovation.<br />

Our efforts to accelerate innovation are paying off. We are sustaining annual growth from new<br />

products in the range of 2 percent to 3 percent of total company sales. We’re meeting our<br />

benchmarks for the percent of sales from products that have what we call “60/40” product<br />

superiority, the ratio by which we measure consumer preference of our products against<br />

competing products. Our 60/40 performance has grown from 7 percent in fiscal 2004 to<br />

47 percent in fiscal 2010, which puts us on a path to exceed our goal of greater than<br />

50 percent by 2013.<br />

Marketing Our Brands Responsibly<br />

We are committed to marketing our brands in a responsible and truthful manner, adhering<br />

to the laws and guidelines of the Federal Trade Commission and other relevant governing<br />

bodies. We strive to communicate the benefits, performance and attributes of our products<br />

accurately and directly, with claims that are substantiated. It is also our policy to create and<br />

purchase advertising in such a way as to reach the designated target audience with maximum<br />

efficiency, using advertisements and media that are in keeping and consistent with the character<br />

and the values of our company. Our marketing communications avoid situations that exploit<br />

race, religion, national origin, sexual preference, overt sex or gratuitous violence.<br />

20 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> | 2010 CRR

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