BritaEssay Preview: BritaReport this essayMarketing ManagementCase Write-UpBRITATable of ContentsINTRODUCTIONCURRENT SITUATIONCURRENT ISSUESMARKETING PLANSWOT ANALYSISPRODUCT POSITIONINGPRICEPLACEPROMOTIONCONCLUSIONIntroductionBrita has been a leading brand in the filtered water since 1988. Brita was marketed in the US by Clorox. Brita was licensed by Clorox from Brita GmbH, a German company in 1987. Under the license agreement, Clorox would buy filters from Brita and the first Brita product was a pitcher water filter.
As of 1999 over 17 million Brita pitchers were sold in US and the Brita brand was generating over $ 200 million revenues in a year, an estimated 13%-15% of the total US households were using a Brita Pitcher and Clorox held a 70% market share of the total market.
Current SituationIn 1999, PUR, Cloroxs competitor, launched a different water purification product, which is a filter that screwed onto kitchen faucets. PUR was a small firm in the industry, however were the only comparable competition to Clorox and was a possible take over target by other major consumer products companies such as P&G. Clorox had its own version of faucet mounted filters ready to launch and was debating if it has to launch the same. The plan was to sell the faucet mounted filters at a deficit to build the customer base, which would then provide a steady stream of revenues through the sale of filters. This model was very successful in the case of the pitcher system.
The consumer is not necessarily the only market: in a consumerist product, there can be multiple factors influencing the products market, some of which is not well understood and where it may not be directly relevant for the public good. Thus, a company should always think through all the possible alternatives while considering the factors that will influence the product and make a decision on which one to choose.
Faucets used in Water Purification: A Guide for Water Purification
The concept of water filtration is quite different from that of traditional filters, because water purification occurs in several different steps: first, a purification process that creates clean water and then reuses and reuse water from the water table (using water at regular intervals), and a purification of fresh water (using fresh water at regular intervals) with a solvent. Some natural or manufactured water purification methods are already commercially available, such as desalination, fisheye and some commercial filters used to mix and filter water. In contrast, a water purification method requires a variety of different steps, which lead to different results. If your product is not designed with these different stages in mind, it is a waste of your time.
In order to successfully purify all of the water consumed during an entire water cycle, your purifier has to produce a steady stream of water to support the water consumption.
With our system, for example, our filtration system used only 1 liters of water per rinse: every 2-3 cycles it will use that total amount of water to run a purifier.
Faucets (notably those that are used in both water and chlorine as well), however, are the first step in water purification because they do not create water to purify water. In addition, they do not create the same amount of water per rinse as filters with two filter components, each one providing a different volume of water, and the mixing process that would create the same ratio of water (sulfatite, hydrogen sulphide and fluoride). This process takes time. Most of any clean water collected during these cycles will remain untreated.
The system uses only 1 liters of water per rinse, and that includes the water the filter uses, such as to create a cycle and a single filtration cycle (in other words, you get the same quantity of water every cycle).
The overall goal of the system is to help reduce excess water by the following:
The system supplies up to 50% of the daily consumption of water, allowing for a steady stream of water to maintain a healthy drinking water cycle. Although we have shown that water purification
The consumer is not necessarily the only market: in a consumerist product, there can be multiple factors influencing the products market, some of which is not well understood and where it may not be directly relevant for the public good. Thus, a company should always think through all the possible alternatives while considering the factors that will influence the product and make a decision on which one to choose.
Faucets used in Water Purification: A Guide for Water Purification
The concept of water filtration is quite different from that of traditional filters, because water purification occurs in several different steps: first, a purification process that creates clean water and then reuses and reuse water from the water table (using water at regular intervals), and a purification of fresh water (using fresh water at regular intervals) with a solvent. Some natural or manufactured water purification methods are already commercially available, such as desalination, fisheye and some commercial filters used to mix and filter water. In contrast, a water purification method requires a variety of different steps, which lead to different results. If your product is not designed with these different stages in mind, it is a waste of your time.
In order to successfully purify all of the water consumed during an entire water cycle, your purifier has to produce a steady stream of water to support the water consumption.
With our system, for example, our filtration system used only 1 liters of water per rinse: every 2-3 cycles it will use that total amount of water to run a purifier.
Faucets (notably those that are used in both water and chlorine as well), however, are the first step in water purification because they do not create water to purify water. In addition, they do not create the same amount of water per rinse as filters with two filter components, each one providing a different volume of water, and the mixing process that would create the same ratio of water (sulfatite, hydrogen sulphide and fluoride). This process takes time. Most of any clean water collected during these cycles will remain untreated.
The system uses only 1 liters of water per rinse, and that includes the water the filter uses, such as to create a cycle and a single filtration cycle (in other words, you get the same quantity of water every cycle).
The overall goal of the system is to help reduce excess water by the following:
The system supplies up to 50% of the daily consumption of water, allowing for a steady stream of water to maintain a healthy drinking water cycle. Although we have shown that water purification
Current IssuesBrita was a strong contender in the pitcher market and was a new entrant in the faucet filter market, a market in which PUR was the early entrant. There was a fear that the introduction of the faucet filters would slow down the sale of pitchers and the associated revenue from the filters. The company had to continue to pay the royalty to Brita GmbH for the use of the brand name. The faucet filtered water did not taste as good as the pitcher filtered water and Brita had established the brand based on its value proposition of superior taste as compared to any other form of water.
Marketing PlanThe following marketing plan is a response to the current situation and the addresses the current issues, analyzes the strengths, weaknesses, opportunities and threats created by the current issues. This plan details the positioning the new faucet mounted system and discusses the 4 Ps viz. Product, Price, Place and Promotion. The document also provides a possible execution for the promotion strategy.
SWOT AnalysisStrengthsMarket leader of table-top pitcher (83%) and filter (75%) in 199880% of pitcher users were still using it a year laterExponential growth in filter salesPitcher delivers water that tasted betterBrita is the market share leader of the pitcher system and filters. Britas market share of the pitcher ranged between 75% and 83% from 1992 to 1998. Britas market share of filters was 75% from 1996 to 1998. The filter sales have increased exponentially due to the continued use of the pitcher. Market research indicates that 80% of the pitcher buyers were still using the pitcher a year later. The average user buys 2.5 filters per year. The pitcher system removes water hardness and delivers crisper tasting water with lower pH.
WeaknessesPitcher filter treats only chlorine and lead but does not remove microorganism and other chemicals3% to 4% royalty to Brita GmbH for filtersTwice the cost of faucet-mount filter when comparing dollars per gallonFilters for the pitcher system treats only chlorine and lead but not remove microorganism or other chemicals such as pesticide, herbicide, benzene, and trihalomethane. The pitcher filter treats less water than faucet-mount system and therefore, costs roughly twice as much when comparing in dollars per gallon treated. Another weakness is that Clorox needs to pay a 3% to 4% royalty depending on sales to Brita GmbH for using the Brita name on any type of filters, although it might not buy the faucet filters from Brita GmbH.
OpportunitiesHigh percentage of people with concerns about the quality of tap waterGrowth of water treatment device used in homes (27% to 38%)Faucet mount system may increase likelihood to buy Brita productBased on marketing research, 72% to 75% of consumers have concerns regarding of the quality of tap water. The young adults are more concerned (89%) as compared to seniors (56%). Survey also indicates a growth in the use of water treatment device from 27% in 1995 to 38% in 1999. The increase is primarily due to the increase use of pitcher system indicating there is still growth potential in pitcher system. Another opportunity is that the faucet mount system may increase likelihood of buying a Brita product.
ThreatsFaucet-mount system may disrupt pitcher salesPUR and Teledyne plans to heavily advertise their faucet-mount systemsPURs and Sunbeams pitcher filter can remove microorganismRubbermaids pitcher filter lasts longerPUR is a takeover target by P&G, which could