Evaluation Paper on Method Home Company

Introduction

Method Home is a private company which makes and sells an innovative, eco-friendly and bio-degradable line of home, personal and fabric care products. The company was formed in 2001 by two roommates from Detroit, Eric Ryan, and Adam Lowry after continuous exposure to toxic cleaning supplies, its poor design, and unavailability of non-stinky green cleaners ("Method - People against," 2018). Adam had a chemical engineering degree from Stanford University and worked at Carnegie Institution of Science for a climate change policy while Erick did marketing at the University of Rhode Island. Key management staff includes Rudi Becker who is the leader of the packaging department within the company; Geetha Solheim, a green chef, who performs lab test on the products, and Bri Kapellas, consumer response manager, who addresses all questions or concerns about the company and its products.

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The company's product line includes home cleaning items, air fresheners, body and hand cleansers, laundry detergents and dish cleaners. The products are biodegradable and made from natural products such as coconut oil, palm oil and soy ("Method - People against," 2018). Also, the products are cruelty-free to animals as they are not made from animal ingredients, and the packaging of the product is recyclable which makes it good for the environment ("Featured Cruelty," 2010).

The company's mission is PAD (People against Dirty) and making the world, greener, cleaner and a more colorful place. Also, they promote healthy and happy homes for pets and people, healthy workplaces, transparency in audited records and operating a value-driven business. The company's location headquarters is in Downtown, San Francisco. The products are found across all regional and Target stores in America. In 2005, Method Home launched in the United Kingdom and Canada. Other locations of the company include Japan, France, and Australia ("Method - People against," 2018).

Company's Success

Through identifying a market gap and correct timing, Method Home has become a success with annual sales of $100 million. The market gap for cleaning supplies that were eco-friendly and bio-degradable arises, and this opportunity is taken upon as good business by emphasizing the environmental, emotional and health aspects of household cleaners. With a start-up capital of $ 300,000, Adam and Eric cause creative disruption in a billion dollar industry. By 2007, the company has grown rapidly with annual revenues of $ 50 million with just forty-five employees and their products in distribution channels such as drugstores, supermarkets and department stores("Method: Entrepreneurial," 2007).

Customer awareness increases due to living feedback on the website and suggestions of the future about the products which signal the timing of the business being right. With the Method's stated mission "people against dirty," the company becomes distinct in delivering high quality and performance product through a price, health, design and ecological perspective that is appealing to customers. From a clear cleaning spray sale in 2002, the company line has grown to a product line of 125 including hand and body soaps, dishwashing liquids and air fresheners ("method: entrepreneurial innovation," 2007).

Environmental and Sustainability Initiatives

Method products are cruelty-free, nontoxic and biodegradable which are good for the environment. Also, the packaging is eco-friendly and 100% recyclable plastic. In 2006, the Method's founders received recognition in Time's "who's who Eco-Guide" and PETA person(s) of the year for the sustainability commitments and efforts (Schagen, 2008). Seemingly, the company has opened a factory in Pullman, Chicago which uses renewable energy such as solar panels placed on its roof to help in product manufacturing. The factory will be LEED platinum certified, and equipment will be energy-efficient. Also, Thirty-five percent of Method's trucking fleet operates on bio-diesel, and the plastics supplier is nearby thus reducing shipping costs, pollutions due to transportation and operational costs (Yang, 2015). However, refill pouches for laundry detergents, dish soap and hand wash are available which save up to 80% of water and energy than a bottle and saves money.

Sustainability of the workforce is an achievement as employees are 40% paid above minimum wage. The company favors local hiring which promotes local economies while giving twenty hours annually on pay for employees to participate in community service (Yang 2015). Estimations of ocean plastic pollution are at millions of tons annually. However, the Method has come up with the world's first bottle made from ocean plastic which helps to reduce ocean plastic pollution thus sustaining the marine environment and avoiding water pollution ("method - people against dirty," 2018).

Difference From Competitors

Making green look cool and supply chain alignment are ways in which Method Home differentiates itself from its competitors. The competitors include Clorox, Procter & Gamble, SC Johnson, and The Honest Company. The first approach of making green cool is through forming new product mixtures which reduce health and environmental impact while still performing similarly to leading brands. The second approach was utilizing design and packaging to maintain a loyal customer base for the same products. The company is in partnership with Karim Rashid, a famous designer in creating the packaging designs. For example, an hourglass-shaped soap bottle that spurts from the bottom through a non-leaking spout (Schagen, 2008). Also, the company distributes to mass markets such as Staples, Target, Safeway and Lowe's at a lower cost thus reducing the overall environmental impact due to its products (Yang, 2015).

Conclusion

In conclusion, Method Home has remained successful in its mission of people against dirty while still ensuring the protection of the environment. With buyers for products such as Ecover, an environmentally-friendly product company in Belgium, its international markets are set to increase across Europe and Asia continents while communicating their advantage against their competitors on their products being safe, environmental and aesthetic and its market. Companies should, therefore, be innovative to meet the needs of its customers while ensuring their products are environmentally friendly for the sake of the future.

References

Featured Cruelty-Free Company: method | PETA. (2010). Retrieved from https://www.peta.org/living/personal-care-fashion/method/

Method - people against dirty. (2018). Retrieved from https://methodhome.com/

Schagen, S. (2008). An interview with the founders of Method green home-care products. Grist Magazine. Retrieved from https://grist.org/article/fighting-dirty/

University of Virginia, Darden School Foundation. (2007). Method: Entrepreneurial Innovation, Health, Environment, and Sustainable Business Design. Charlottesville, VA.

Yang, A. (2015). Method Soap: Bringing Green (and the Rest of the Color Spectrum) to the Masses - Technology and Operations Management. Retrieved from https://rctom.hbs.org/submission/method-soap-bringing-green-and-the-rest-of-the-color-spectrum-to-the-masses/