The Bita Products Co.

8/10/2019 The Bita Products Co.

1/24

The Brita Products Compa

By: Amena, Sarah, Allouba, J


2/24

Company: The Brita Products Comp Founded by family in Germany Sells in the U.S mainly through Clo

Brita USA-Started in 1988 Created $350 million industry withsignature product - The Brita Pitch

Case Background


3/24

Company: The Clorox Company Bought out First Brands for $1.2 Bi Strategy based off building domina

brands, international expansion aninvesting in acquiring promising bra Acquired Marketing rights for Brita

USA.

Case Background (Contd)


4/24

The Tap Water Controversies in the Their first mover advantage Consumer Consciousness Their strong skills/competencies in

addressing the concerns of the Ampeople.

It is established by a well known

company Clorox.

Key of Success For Brita USA


5/24

Disruptive technology-Faucet Mount

Slow filter sales andlow penetration in thehousehold segment.

Challenges


6/24

Clorox is recognized by others. It has a large of market share in th

market of filtered pitcher.

Clorox has a marketing budget.

Clorox marketing assets


7/24

Attract customers to their new pro Because people recognize the bran

will be helpful in the sale of fauce

filtration systems. Because the have a lot of budget, can spend it on advertising so morepeople will know about them.

Developing the assets


8/24

Competition AnalysisStrength Weakness

Technologically more advanced

Offered portable drinking water systems for

outdoor enthusiasts

PUR had higher advertising budget $40

Competed on HEALTH advantage

Rubberband launched a low price product

(much similar to Brita product)

PUR was about to close a deal with P&G,

Cloroxs most respected competitor

Most operated on losses

PUR Holds less than 10% o

the pitchers system ( most feare

Bad Taste

PUR pitchers were more ex

Britas


9/24

1990 decade tap water safety became a conce Contaminated well case- leukemia US Environmental Protection Agency declares

sediment under U.S surface water is sufficientcontaminated - threatening to animals and hum

1993 another case lead to 403,000 people sick End of decade- 47% of respondents preferred n

drink tap water

Consumer Attitude & Behav


10/24

Sales of bottled water rapidly grew bottled water made up 8% of all liquids-fastest gr

industry 45% bought still - 27% bought carbonated average price for 128 oz. bottle was $1

of Americans familiar with 8 cups of water a day 20% drank that 8 cups 44% drank 3 or less cups

Consumer Attitude & Behavio

1997 Li id b ht i


11/24

1997- Liquids bought in grocstores

A t f t l d


12/24

Amount of water people dranper day

R d t t t


13/24

Respondents response to tapwater


14/24

1999 Concerns about household water quality

72% any concern Health contaminants- 48% Smell or taste - 40% appearance-26% hardness - 36%

sediments- 38% 72% of respondents, 89% of young adults voice

concern about water quality in household wate people taking no precautions dropped from 47

Consumer Attitude & Behavio

ff f


15/24

Type of innovation

Product characteristicsthat influence diffusion

How fast it will diffuse

Channels used by competition

Diffusion of Innovation


16/24


17/24

systems vs. filters (early in

life cycle growth weunderestimate filter sales)

Product Life Cycle

Lifetime Val e of a C stomer


18/24

Assumptions: 50% of advertising induces pitcher buying and filter buying each Adeffects in the current period alone.

Lifetime Value of a Customer wPitcher at Home


19/24

Brita Company Skills Differentiation (taste) Strong brand with loyalty Competent marketing team- knowledge of customers and ch

Consumer Needs Taste Health Concerns Portability

Response to Competition


20/24

Options

1 Shift emphasis to increase


21/24

1. Shift emphasis to increasefilter sales vs. pitchers

PROS opportunity to improvefilters/water safety

could indirectly improvepitcher sales

dominate PUR whileretaining their strengthin taste

CONS requires additioadvertising/R&D

the people whobuy them are al

existing custom

2 Begin Endorsing faucet


22/24

2.Begin Endorsing faucet-mounted systemPROS increased chance of buying

a Brita line product- wellknown name

diversify market

water is cleaner due tofiner filters improves water taste costs less per glass- filter

lasts longer

CONS

didnt increase in filtration cata whole

will require add

advertising sale

3 F b ildi i t ll d


23/24

3. Focus on building installedbase of pitchers

PROS opportunity to target

other segments thatwerent reached out to

satisfies need for lesshard and cold water

CONS household pitchpenetration was

6/7 households have one

costs more than they had low wa

safety ratings a additional adve

cost


24/24

Improve pitcher filtration system and introduce the faucet-mountsystem

diversified market- not just targeting the people who wanwater

improve water quality/ safety with the faucet rapid market adoption since Brita is recognizable brand

filters can focus to improve the filters themselves for the improve ratings vs. PUR faucet is half the cost of pitcher per glass so they have bo faucet wont cannibalize pitcher sales because half the pe

buy both

Implementing Options 1 & 2

The Bita Products Co.

Documents