CASE STUDY

ON

BRITA PRODUCTS CO.

Submitted To:Ms. Kanika Jhamb Submitted By: Vinmre Kaushal RA1703B2A21 B.Tech (Hons.)MBA-CSE

Such measures paid off and Clorox not only created a $350 million dollar market. . suggests that the value of the customer. first in mass. but also captured 70% of the market revenue. 2. The new product offers health and convenience benefits that the Brita pitcher cannot. once captured and retained. and alone in grocery. Brita has built its marketing position using the strategy ³Established in class. initially engaged in deficit spending. Problem: The small company. had emerged with the impending launch of its faucet-filter system that mounts directly to consumer kitchen faucet. Continue to promote water pitchers Shift promotion to boost filter sales Launch and promote new faucet-filter system While Brita still maintains an overall dominate place in the market. Clorox acquired the right to market the home water filtration system in the United States from Brita GmbH.Situation Analysis:Product History: In 1987. Clorox. citing the overriding long-term benefits of continuous filter sales. Optimistic of its capability to be profitable. In order to compete against this new threat. discovered Brita¶s home water pitcher-and-filter system in health food store. With 80% of customers remaining with the Brita system after five years and purchasing an average of 4 filters each. Charlie Couric. Company Strategy: During the 1990s. lock-in and maintain customer loyalty in each segment.´ Brita¶s competitors were unable to effectively rival Brita in pitcher sales. To retain its market lead. Brita has three alternatives: 1. Brita had to continue to first attract. Therefore. is enormous. Brita should offer a faucet mounted filtration system to the public and capture the emerging segment of consumers focused on health and purification. 3. a marketing executive with the Clorox Company. PUR. the company must continue to evolve its brand and offerings to ensure that lead.

could become market leader in faucet purification ‡ ‡ New faucet sales may cannibalize Brita pitcher sales . presence in multiple channels (³¶Class to mass´) Loyal customer base. strong brand image Large retail distribution system. repeat customers with replacement filters Strong advertising and brand imagery. waterfall equals good.SWOT Analysis Strengths: ‡ Market leader in pitcher/filter category. possible new segment with faucet filter Migrate current customers to new faucet. PUR. about to merge with P&G. clean taste ‡ ‡ ‡ Weaknesses: ‡ Slowing growth in pitcher market Lack of product diversity Change in customer preferences. deficient attention paid to health concerns/benefits Existing channel relationships may not work for faucet launch ‡ ‡ ‡ Opportunities: ‡ Untapped markets to be explored. pitcher becomes a µstepping stone´ product New product appeal to health safety concerns ‡ ‡ Threats: ‡ Entrance of new competitors to the market. pitcher prices may drop New competitor.

with a comparable product. Rather It will enter the market just as it is about to enter the growth stage. With both bases covered. Brita can expect to dominate as the industry leader. Using the Brita name will allow the company to more easily penetrate the market with the introduction of any new products and increases the likelihood of success. while continuing to build upon our excellent reputation for great taste as well. it should be fairly easy to develop a filter for both the pitcher and faucet systems that can filter out these harmful bacteria and microorganisms. commanding a dominant 70% of the pitcher/filter market consistently for a decade. and a huge marketing effort to enlighten consumers as to new health benefits and create the awareness as company needs to dominate this segment too.STP ANALYSIS Segmentation: The new marketing plan designate a large portion of the funding toward enlightening consumers as to the new health benefits associated with the new filters. This new option in filters will meet customer demands for a healthier option that still produces the great taste that we have always been associated with. avoiding the three-year period of losses associated with introducing this new product like was experienced by other competitors. an exquisite reputation. Target: Brita has unmatched brand reputation and recognition in the home water purification industry. . while allowing price conscious consumers who are already satisfied with the existing filter the option to purchase their same filters at a lower cost. Positioning: With the technology available by competition.

Brita faces the loss of customers over time if the company cannot match the benefits of its competition. the company blatantly ignores the growing category of health conscious consumers. rival company Teledyne has produced a faucet mounted filter system since the 1960s with little growth. Since pitchers are kept in refrigerators. Since pitchers have a lengthy product life cycle. ‡Shift promotion to boost filter sales Positives: As Brita users continue to enjoy the benefits of their pitchers. 14% of U. Also. As market research indicates. households have purchased the Brita water filters.S. In addition. Negatives: Staying with the pitcher sales alone will not allow the company to proactively enter new market segments and ward off emerging competitors. with 83% of pitchers and 75% sales in filters sold in retail outlets across the United States. Brita can utilize advertising and promotions to increase current sales of the filter from its established customer base. they must consistently purchase replacement filters over time. indicating that the faucet market might have continued slow growth. . Taste is no longer the only compelling stimulus driving home water filter purchases.Possible Options Available: ‡Continue to promote water pitchers Positives: Brita is the dominant player in the home water filtration industry. water is cold versus lukewarm faucet water. This signals growth opportunity for Brita¶s products. by not producing faucet-filter systems.

. Brita must also invest a large amount of money in consumer advertising and promotion.Negatives: Filter sales occur naturally and typically do not need additional promotion. thereby appealing to a broader customer base the health conscious segment of consumers. Negatives: The possibility of pitcher cannibalization is very likely. In order to compete with PUR¶s new faucet product. Marketing Strategy: Brita should launch and promote new faucet-filter system. Brita must be proactive and produce products that fit the changing lifestyles and needs of the consumers. Brita should not lower the price on its filters. In order to succeed against the competition. Furthermore. The brand¶s emphasis on taste will have to be adjusted to include the real and perceived health benefits of the new faucet mounted system. while delivering great health benefits and possibly improving taste. A more effective strategy would be to develop an LED system indicator that would signal replacement. so pricing more aggressively would be appropriate. The market is becoming more saturated in the pitcher category. Brita¶s launch should not alienate its pitcher market. and the company must continue to sell pitchers with a focus on the mass-market channel. as the cost per glass is less than that of the pitcher. the faucetfiltered water may appeal to consumers. ‡Launch and promote new faucet-filter system Positives: A Brita produced faucet mounted filter system would enable the company to compete with rival company PUR. Additionally. However. since the PUR systems have already a similar LED indicator. Brita should competitively follow suit.

Brita must also increase awareness of filter changes and the ease in which to purchase them. Conclusion: Brita¶s marketing goal becoming the number 1 position in the home water filtration market signals the introduction of a faucet mounted filter as the best choice. The new faucet filter should also be sold under the Brita name. . it must not engage or encourage intense price competition. Brita¶s marketing goals are to leverage the company¶s brand name and image to become the leader in the faucet mounted filter market. the future benefits obtained through higher filter sales and the prevention of lost sales to competitors outweighs the cost. By doing so they must transition the brand¶s definition from taste alone to a combination of taste and health aware. Overall. It is also essential that Brita is successful in transitioning to a health aware brand. If initial advertising is not successful in appealing converting the brand image. As the case illustrates in Exhibit 4. the companies can more effectively transition users from buying the pitcher as a starter product to purchasing the new and sophisticated faucet mounted system. consumers¶ preferences are changing and leaning toward a more healthy and mindful standpoint. As Brita enters the faucet mounted filter market. While the product¶s introduction bears high initial costs.By deepening the consumers¶ relationship with the Brita brand. Brita should pursue an even more aggressive marketing approach since it essential that Brita stakes a position in this upcoming market segment.

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