...Case Study: The Brita Products Company CASE SUMMARY Situation Analysis: In 1988 Charlie Couric, a marketing executive at Clorox, oversaw the acquisition by Clorox of the right to market Brita Water Purifier Pitchers in United States, and then became the President and General Manager of Brita USA. He proposed a risky deficit-spending strategy to gain market with the goal of getting a Brita water pitcher on every kitchen countertop in the United States. As a result Brita USA incurred heavy losses upfront as initial sunk costs dwarfed any revenue from sales, and the company saw no profits in its first 4 years. Couric however, believed that in the long run the strategy would pay off as once Brita had achieved enough market share the company would make back its losses through repeat sales for pitcher filters. Time proved Charlie Couric right in that, for while the pitchers were developed at a high cost, the lower costing filters saved the consumer more money in the long run and became the main source of revenue for Brita. By 1999 Brita had sold 17 million pitchers and had close to 200 million in revenues per annum. Brita now enjoyed a 70 market share of home water purification industry. Problem: In 1999, Brita now faces a new competitor in the water purification industry, with a new product. PUR, the only competitor to Brita with double digit market share, announced that it would be spending $40 million in advertising and promotion to support the launch of...
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...HBS – The Brita Products Company Brita saw early success due to several factors. The first was due to the inherent product feature of the system that suggested that it would have extremely high customer lifetime value. For each pitcher sale would start a flow of filter sales. The pitcher was sold with a single filter in place and the filters would require to be replaced every two months or so. Another major factor can be attributed to one relating to ‘Context’. Over the the decade of the 1990s, the safety of tap water became a major topic of growing concern to US households. The US Environmental Protection agency declared that about 10% of the sediment under US surface waters was contaminated, enough to potentially pose a threat to human life. As such the need for clean water became heightened amongst American consumers. And instead of buying bottles of water all the time, consumers were on the hunt for something more practical, this is where Brita and its system came into play. As such, eventually Brita managed to create a home water purification industry worth $350million at retail, and held a 70% revenue share. What was interesting was the decision from management to position Britas system on grounds that emphasized the taste benefit. After the product was well known enough and people knew how it worked, the management focused on positioning it on the basis of taste. A water purifier that emphasizes taste? Sounds strange. The rationale for this was that aside from benefiting...
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...declined consumption of baby food per capita grant to a decrease of domestic volume sales. The overall baby food industry decreased about 7% in 1997 fiscal year. Baby food industry is facing an increasing requirement for quality products and innovation. There are several ministry regulations for the standards of pesticide and other ingredients. Buyers tend to be very diplomatic to suitable feeding nutrition and other concepts such as sugar, salt, modified food starches, etc. Gerber’s extensive consumer research shows that a growing number of parents prefer baby foods without added starches and sugar. By competition being compared to other similar foods, baby foods higher priced. Pricing and promotion are very important methods employed by firms in this specific industry. For example, the companies Gerber and Beech – Nut all have an aggressive expenditure in promotion movement. Due to the aging of birth percentage and at the same time comprehensive international opportunities, the tournament in this industry is becoming progressively intense. Gerber controls the industry for proportionate decades with a market share of about 70% presently in time. Breech – Nut is the second largest manufacture which is taking about 15%. Also many other companies for example like H.J. Heinz took the rest of the 5%. My family has friends that have a six month old girl that eats baby food constantly. Her...
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...F.T.C. v. H.J. Heinz Co. United States District Court for the District of Columbia, 2000. 116 F. Supp. 2d 190; 2000-2 Trade Cases (CCH) ¶73,066. The Federal Trade Commission seeks a preliminary injunction pursuant to Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. § 53(b), to enjoin the proposed merger of the baby food divisions of H.J. Heinz Company and Milnot Holding Corporation ("Beech-Nut"). . . . I. BACKGROUND A. Market overview Four million infants in the United States consume 80 million cases of jarred baby food annually, representing a domestic market of $865 million to $1 billion. There are only three major manufacturers and distributors of jarred baby food in the United States: Heinz, Beech-Nut, and Gerber Products Company. Gerber is by far the largest domestic manufacturer. It enjoys, and has enjoyed for some 40 years, a dominant market share that has recently grown to between 65 and 70 percent. The Gerber market share is now 65 percent, the Heinz share 17.4 percent, and the Beech-Nut share 15.4 percent. . . . Heinz's domestic baby food products are manufactured at its Pittsburgh, Pennsylvania plant, which was recently updated at a cost of $120 million. The Pittsburgh plant now operates at 40 percent of its production capacity and produces 12 million cases of baby food annually. . . . Beech-Nut manufactures all of its baby food in Canajoharie, New York, at a manufacturing plant that was built in 1907 and began manufacturing baby food in 1931. The plant...
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...families through out this campaign. Research has been conducted to find out average income and ages in households that we are targeting to help with price points. A thorough market analysis helped us learn whom we are going to get more involved with. Even though Gerber is already known for targeting parents and their young children we want this campaign to specifically include first time parents, parents that are expanding the family, stay at home parents, organic parents, parents on a budget, and parents who want to be as educated as possible about their children health and growth. We want to use many means of communication during this campaign to promote purchase motivation is that Gerber is more than just a familiar face they have a product that is right for every type of parent. We will mix the old and new with this campaign we want families to think “ Growing Up Gerber” for years to come along with the Gerber Baby original picture. All this will be accomplished with a very reasonable budget broken down explaining where money will be invested in this campaign. The end result will be more continued revenue and education for the families. Introduction: Gerber has been around since 1927 and is a very well known and established brand....
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...Entrepreneurship Failure Background of Petite Palate Company Business enterprises are established to exploit existing and emerging market opportunities. Competition in these markets is expected to stiffen as more entrants come in, raising the number of competing enterprises in the market. Creativity and innovativeness of an entrepreneur pushes the business to the next level. These are the scenarios that Petite Palate Company had to deal in the with U.S baby food industry when it established its operations in the year 2006. The company was set up in Long Island City, New York. Petite Palate specialized in producing baby food, and targeted Northeast and Midwest markets of the United States. At the time the company started its operations, the market had become significantly competitive due to the number of players that had already established operations in prior years. On the same note, the enterprise was essentially a gourmet baby food company that only pursued this line of production, unlike other players who had mixed lines of production for diversity purposes (Lawrence, Lyons & Wallington, 2012). The dedication by the enterprise to gourmet baby food constrained its operational strategies in terms of diversity. The baby food industry and the markets in this industry were experiencing an ever growing trend in terms of operational business enterprises and baby food and baby formula varieties before and during the time Petite Palate started its operations. As a result...
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...Costs of Having a Baby Worksheet - Child Development | Assignment: Having a baby involves huge financial considerations. The purpose of this project is to calculate the amount | of money it takes to raise a child from conception to one year of age. | | | | | Internet Source: | Price Per Item: | Number Needed: | Total Cost: | Pregnancy Needs | | | | | Maternity Wardrobe - a complete outfit | www.walmart.com | 14.48$ | x 5 | 75$ | Maternity underwear | www.ebay.com | 2.93$ | x 5 | 15$ | Maternity bra | www.walmart.com | 8.97$ | x 3 | 29$ | Comfortable, safe, shoes | www.walmart.com | 7.88$ | x 1 | 7.88$ | Prenatal vitamins (multivitamin - 150 tablets) | www.walmart.com | 28.47$ | x 2 | 58$ | Other: | | | | | Pregnancy Needs Subtotal: | | Internet Source: | Price Per Item: | Number Needed: | Total Cost: | Delivery Needs | | | | | Hospital Delivery | www.revolutionhealthcare.com | 30,000.00 | x 1 | 3000000 | (vaginal delivery with no complications) | | | | | Prenatal and Postnatal Doctor Visits | www.revolutionhealthcare.com | 150.00 | x 14 | 2,100.0(ar) | Other: | | | | | Delivery Needs Subtotal: | | Internet Source: | a | Number Needed: | Total Cost: | Baby's Clothing | | | x 5 | | 0-3 month onesies | | | x 5 | | 0-3 month outfit | | | x 5 | | 3-6 month onesies | | | x 5 | | 3-6 month outfit | | | x 5 | | 6-9 month onesies | | | x 5 | | 6-9 month outfit...
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...Decision Tree Gerber Product Company A. Background of the Company: Gerber was founded in 1927 in Fremont, Michigan by Daniel Frank Gerber, owner of the Fremont Canning Company, which produced canned fruit and vegetables. At the suggestion of a pediatrician, Gerber's wife Dorothy Gerber began making hand-strained food for their seven-month-old daughter, Sally. Recognising a business opportunity, Gerber began making baby food. By 1928 he had developed five products for the market and six months later, Gerber's baby foods were distributed nationwide. The brand eventually became a major company in the baby food industry, offering more than 190 products in 80 countries, with labeling in 16 languages and controls eighty-three percent (83%) of the baby food market in the United States. In 1994 Gerber merged with Sandoz Laboratories. Two years later, Sandoz merged with CIBA-Geigy to form Novartis, one of the largest pharmaceutical companies in the world. In 2007 Gerber was sold to Nestle for $5.5 billion. In 1960 Gerber started selling its baby food in glass jars, which often found new life as household storage, especially in home workshops. Soon after, other items such as pacifiers, , baby bottles, and small baby toys were introduced. Source: https://en.wikipedia.org/wiki/Gerber_Products_Company B. Problem Encountered and Quamet Solution Used or Applied Gerber used decision tree analysis in deciding whether to continue using the plastic known as poly-vinyl...
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...not safe for human consumption. Many sources of water in Mexico, especially tap water, are characterized by impurities that are harmful for human consumption. Testing is often done for water supplied in cities and other localities. This is not the case for water in Mexico. In this regard, a water filtration system will go a long way in ensuring that the population has safe water for consumption (Guasch 104). A bottle filtration system is designed to deal with sediments, smell, taste, and appearance of water. ` This essay will detail a SWOT analysis for is Brita Water system. This analysis will show the advantages and issues that the company will face in Mexico in regards to manufacturing and selling the water filtration system. The filtered bottle system, by Brita, will be able to meet the Mexican consumer needs. The many environmentally conscious clients will prefer a good product. A single filter used by the company can act as a replacement for about 250 water bottles. This will save the planet as it reduces landfill waste from plastic bottles. In Mexico, a large number of the population is...
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...Brita Case Analysis Opportunity Identification: The bottled water industry is a very saturated market. How is one supposed to market water, which is essentially the same product, and be successful in doing so? A consultant of Clorox Company, Charlie Couric, saw an untouched market niche segment that he wanted to expand Clorox into. Clorox was considering several different options to maintain its dominance in the market by joining the water filtration industry. After coming across an in home water filtration system made by a German company, Couric decided to take a niche market approach and launch Brita filters within the Clorox business. Clorox wanted to launch filters with their already established pitcher systems, essentially being the same product just in a different form. We must consider three major factors for long term and short-term company success when doing this, those being: 1. Do we enter the faucet-mount market? 2. How do we increase our current pitcher sales? 3. How do we increase our filter sales? 4. Would having a faucet mount negatively impact pitcher sales and take over that market? The person who is making these decisions and is bringing this opportunity to light is Charlie Couric. The time frame of it not of immediate importance, but rather that Couric saw an opportunity and wanted to present it to Clorox with a potential business plan to see if the addition with Brita would be beneficial. As much as this decision-making isn’t on a time constraint, Clorox...
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... Marketing Plan: The Brita Products Company Product: • Brita Pitcher-filter water system Price: $15.16 pitcher system and $4.10 filter • Brita faucet system Price: $34.99/$39.99 Faucet System Place: Pitcher system: main health food chains introducing department stores, mass merchandise, grocery stores, club stores, drug stores. (Minimum advertised price). Faucet to be launched. Promotion: They are very focused in taste for pitcher. It has been a good decision since I think probably to try to find another proposal for purity and health for the faucet system. Diagnosis: The first question is can we launch faucet system? Or would it cannibalize the pitcher system in which we are the leader? I think we definitely should launch the faucet system it is cheaper so we can access to another segment of customers. Also the faucet could even convince people that regularly drink water directly from the tap, because it last longer, and the cost is lower compared to the pitcher. It even helps the customer get to know Brita and improve taste on water, and even evolution as a Brita customer, first the faucet system then the pitcher. Then how would we promote the faucet in order to differentiate it from the pitcher? Would the taste be also the main focus on our campaign? Or should we focus on health and bacteria? Even though public is not very aware of the bacteria issues on water. Another question is to launch the faucet filter with the Brita brand? I think it would be easier...
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...BRITA WATER FILTERS – “HOME MADE BEVERAGE” BRITA CASE STUDY for Marketing Management (BMM699) – The Winning Strategy Presented by G-Force, [pic] ABS MBA 2012 class 1. Artit Chewachatchawal 2. George Philip Cheruvelil 3. Mohammed Omar 4. Ratchanee Bhakdibanjiabongse 5. Varun hedge TABLE OF CONTENTS 1. Executive Summary.......................................................................................................3 2. Marketing situation and challenges faced - Analysis ................................................4 3. Consumer review and segmentation study.................................................................6 4. Recommended Strategies to achieve “double digit top line growth”.....................10 1. EXECUTIVE SUMMARY BRITA GmbH was German water Filter Company. The Clorox Company got the rights to market BRITA in 1988. The Company is a leading consumer products company with fiscal year 2005 revenues of 4.39 billion. With 7600 employees worldwide the company manufactures products in 25 countries and markets them in more than 100 countries. The Clorox Company was organized into SBU’s and BRITA is one of the SBU’s at Clorox. BRITA manufactures the PT (Pour-Through) water filter through which they achieved almost 200 million in revenues in the first 4 years. By 1999 BRITA was available nationally...
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...the Brita products company is to obtain faucet mounted products’ retail market share by at least 10 % in 2 years as a niche product targeting younger people aged between 18 and 44 in western U.S. while maintaining the market share of pitcher products. The main impediment for this is that PUR, number 2 brand, already has owned 74% of total faucet mounts sales in market. The solution for this can be divided into 2. One is to launch innovated faucet-mounted products to earn the market, highly preoccupied with PUR and the other one is to redirect the market towards younger people for Brita pitchers. 2. Problem analysis The most important goal is to obtain faucet mounted filter product’s market share by about 5% in the first year and increase market share by at least 10% in the second year by launching the faucet-mounts as a niche product targeting younger people(18-44), maintaining water purification market share from pitchers. Increasing market share is the primary goal over building brand equity or increasing profitability for several reasons. Firstly, in the consideration of market share, water purification market’s future looks bright as the safety of tap water is growing concern to U.S households. A 1999 survey found that 72% of all respondents seriously concerned about the quality of their households’ tap water and the number of people not caring about water quality is decreased from 47% in 1995 to 35% in 1999. Therefore, when it comes to market share of the Brita company...
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...analyzed in terms of how much expected market share they are going to take from us if we do not respond and how we can respond most effectively. We need to asses our returns on advertising expenditure to see how impactful our advertising techniques really are and whether we need to project a different image in order to satisfy the current market trends. Our distribution strategy must be assessed and optimized to suit our position in the market. The level of urgency at the moment is not severe as our major competitors are still experiencing losses, however, it is expected that they are going to become more aggressive in their advertising and thus we need to formulate an effective strategy that will counteract their efforts. It took the Brita line four years before it began witnessing success. Next year will be the fourth year since our major competitors launch their pitcher systems and so we need to implement an effective plan within a year. External Analysis Market Environment The market environment is characterized by fast growth. As consumers are become more health-conscious,...
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...Brita Case Study The primary goal for the Brita products company is to target and obtain the faucet mounted products and also to increase its retail market share by at least 10 % in 2 years as a niche product targeting younger people aged between 18 and 44 in western U.S. while maintaining the market share of pitcher products. The main obstacle for this is that PUR, number 2 brand, already has owned 74% of total faucet mounts sales in market. Problem: The small company, PUR, had emerged with the launch of its faucet-filter system that mounts directly to consumer kitchen faucet. This new product offers health and convenience benefits that the Brita pitcher cannot. In order to compete against this new threat, Brita has three alternatives according to my opinion: 1. Brita should continue to promote water pitchers more extensively 2. It should further enhance its marketing and promotion strategies to boost filter sales 3. Should probably try to produce the products which match the customers need and preferences. It is evident that while Brita still maintains an overall dominate place in the market, the company must continue to evolve its brand and offerings to ensure that lead. Therefore, Brita should offer a faucet mounted filtration system to the public and capture the emerging segment of consumers focused on health and purification. SWOT Analysis Strengths: 1. Brita is the market leader in pitcher/filter category and it has a strong brand image among the consumers...
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