...Case Presentation : The Brita Products Company Group 8 Prepared by Ashish Gauba 11P070 Gunjeet Singh 11P078 Himanshu Sehgal 11P080 Ishan Agrawal 11P081 Srinivas R R 11P112 Vignesh K 11P119 Table of Contents Background: 3 ACNielsen Market Simulation Study: 5 Problem Analysis: 6 Customer Lifetime Value Analysis: 8 Ten scenarios of Brita’s marketing investment: 9 Recommendations: 10 Background: The Clorox Company was a major manufacturer and marketer of laundry additives, household cleaners, charcoal, auto care products, cat litter and home water purifiers. In 1987, Charlie Couric , a marketing executive, charged with finding new business ideas, discovered Brita’s home water pitcher and filter system in health food store. Optimistic of its capability to be profitable, Clorox acquired the right to market the home water filteration system in the United States from Brita GmbH. Brita GmbH, a family owned corporation headquartered in Tanusstein, Germany, made a variety of industrial and consumer water filtration products. It was struggling to sell its home filtration system in the US. After various negotiations, in September 1988 it agreed to let Clorox form a subsidiary, Brita USA, to be the sole distributor of Brita products. Clorox would buy filters from Brita GmbH and design and make its own pitchers. Clorox supported Couric’s deficit spending proposal...
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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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...Business Administration Capstone Professor Clayton Sinclair III April 17, 2015 Strategic Management and Strategic Competitiveness The company that I researched was The Clorox Company. The company was founded in 1913 and is a part of the household and personal care industry. According to (Forbes List, 2014), they are listed as number 98 on The Forbes list for the most innovative company and number 94 for the world’s most powerful company. They employ 8,400 employees and bring in a total sales of $5.65 billion. Clorox cleaning products consist of Tilex, 409, Pine-Sol, SOS, Clorox bleach, Formula 409, and Green Works. Their household products consist of Glad, Kingsford, Ever Fresh and Scoop Away. Their lifestyle products consist of Brita, Burt’s Bees, Hidden Valley and KC Masterpiece (The Clorox Company , 2014). Assess how globalization and technology changes have impacted the corporation you researched. The Clorox Company manufactures products in more than two dozen countries and markets them in more than 100 countries. Clorox products are available over 100 countries touching households and businesses in almost every region. They have consistently achieved competitive success while others failed to do so. Clorox Company international brands include: Agua Jane, American Heritage, Arco Iris, Arela, Astra, Bluebell, Bon Bril, Brimax, Clorinda, Emperatriz, Gumption, Handy Andy, La Negrita, Lemon Tok, Lestoil, Límpido, Los Conejos, Luminosa, Lustrillo, Mono, Mortimer, OSO...
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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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...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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...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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...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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...start to only use a Brita. Buying a bottle of water is something that I have never thought twice about. During my day when I am on campus I will normally buy at least two-three water bottles. I was unaware of all the harmful effects plastic has on the environment. Bottled water produces up to 1.5 million tons of plastic waste per year (Baskind). Assume that every empty bottle makes its way to a garbage can. Plastic waste is now at such a high volume that vast eddies of current-bound plastic trash now spin endlessly in the world's major oceans (Baskind). This issue holds a great risk to marine life endangering animals such as birds and fish, that accidentally mistake our garbage for food. Nearly 90% of plastic water bottles are not recycled, instead take thousands of years to decompose. After researching and learning this information, my activity is to give up plastic water bottles. I will no longer buy any kind of plastic water bottled drinks. Instead I have purchased the Brita pitcher, which I will be committed to using. After exploring Brita’s website, I found out, “Over the course of a year, the average Brita pitcher filters 240 gallons of water or about the same as 1800 standard 16.9-ounce plastic bottles.” By purchasing a Brita I am also saving money. One filter can replace 300 bottles of water. That is saving over $600 a year. When I am on campus I will no longer purchase water at Starbucks when I get my daily coffee. I instead will be using my Brita filter to fill my reusable...
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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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...THE WAY FORWARD Recommendations for Leveraging Sustainability and Optimizing Existing Green Lines Instructor: Kim Bates Course: Integrative Weekend – W2012 Date: March 4, 2012 Consultants: Deborah Sue Chee Eva von Biehler Mehdi Tahuri Serhiy Rudak S.Mehmood Ul-Hasan Vern Puchoon Executive Summary In the face of consumer changes and current economic conditions, Clorox must make several key decisions regarding resource allocation and strategic focus across its product divisions. Specifically, there has been a strong focus since 2006 on product sustainability and green initiatives. As such, Clorox needs to determine if this is the right strategy to pursue for the long-term and if it needs to be green organization-wide, not just toward a few products. In recent years, many changes have been made to start shifting public perception of Clorox toward being an eco-friendly supporter. Due to this strategy and consumer trends, Clorox should stay the path of being an eco-friendly, green organization. Current consumer preferences support the notion that green sustainability is a megatrend, not a passing fad. To achieve the Centennial Strategy goal of double-digit profit growth in 2013 and to implement green initiatives and best practices across all Clorox product divisions, small changes in strategy and an increase of approximately $18 million in marketing and advertising needs to happen in the short run. The tweak in strategy will open new growth opportunities in other consumer segments...
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...citizens who are in need of clean water. While many companies are looking to get into the $14.2 billion market the country offers by cleaning the local tap water (Taylor, & Leung, 2009) there are those who may live or work in areas that will not have this water immediately. This could include manufacturing workers and wealthy business people who travel to remote areas who would like to use them at work and in their homes. In order to serve this market and others, a wise way to get into it is to offer Brita portable water filtration systems to individuals and the companies who hire them. Memo: Selling Portable Water Filtration System in China China boasts the world’s largest population with more than 1.3 billion people (U.S. Census Bureau, 2010). Many of them are hard working and honest, but lack what industrialized nations should have: access to potable drinking water from the tap. For this reason, it is imperative that Brita International, market its portable filtration devices to them before other companies with an equal ability to penetrate the market do so. The key demographics include wealthy, health-conscious households as well as manufacturing workers. The wealthy families will be inclined to purchase a larger array of products, such as countertop systems for the family as well as canteen water bottles. As for the latter group, China’s manufacturing workforce boasts more than one-hundred-twelve million people whose...
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...in the marketplace the company needs to reinvent and look at building a long-term competitive position by focusing on consumer megatrends of health, wellness and environmental sustainability, which is also the aim of its centennial strategy. The main issue is whether Clorox should continue to leverage growth around it sustainable products or focus on just lowering costs and increasing profitability in the short term. Alternatives considered: - Clorox could give up the green strategy, as this is an expensive strategy and not one to give short-term returns and focus entirely on leveraging the primary products further to countries outside the U.S to fuel profits and expansion. - It could continue with its brand Brita but divest from Burt’s Bees and Greenworks as Brita has already been established as a leader in its segment and as a cost effective environment friendly alternative. This position could be further pushed to accelerate growth and market share within the sustainable yet profitable space. - Also, it could continue investing in and developing its sustainable brands as this is where the future lies. This is what will set Clorox apart from its competitors and has the potential to make Clorox a strong player in the long term. In my opinion, Clorox should continue to leverage green for growth however not let the increased focus distract them from increasing sales, revenues and market share. I recommend revamping the existing marketing mix around the sustainable products...
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...bottle water, Aquafina. Wanting to visit Pepsi, but instead Royte stays close and visits the second best-selling bottled water Dasani, manufactured by Coca-Cola. The International Bottled Water Association describes that most bottled water companies are not only competing with soda, but also trying to get rid of tap water. Royte closes the chapter with the thought that it is not about how much oil is used to make water bottles but who is controlling the water because the world can survive without oil, but it will die without water. Royte talks about how many households around America are using Brita and how it has become very popular. I have had an experience with a Brita bottle and I can honestly say that it is very easy to use, also it works. When I was in high school my teacher had a Brita bottle and I used to fill it up for her and I experienced how it works. I also used the Brita bottle to fill up my water bottle because it felt fresher to me. While reading through the book, I have had a change of view on the water that I drink, from tap water to bottled water. I am now a little scared of drinking water from the tap and water bottles because of the many things that Royte talks about. For example, all the chemicals that are in the water bottles and also the dangerous bacteria in the tap water system. I kind of regret reading the book because, before I did not really care about what kind of chemicals and infections were in the water. Now, I am worried about whether the water...
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