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The Brita Products Company

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Sales of bottled water from U.S supermarkets and home delivery services grew ... households used either bottled water or some water purification system to limit ... – PowerPoint PPT presentation

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Title: The Brita Products Company


1
The Brita Products Company
2
Overview
  • Couric, a marketing executive with the Clorox
    Company proposed that Clorox acquire the right to
    market Brita in the USA.
  • Clorox supported Courics deficit-spending
    proposal.
  • A decade later, Brita had grown to become one of
    Cloroxs biggest brands.-more than 17 million
    Brita pitchers had been sold, and each pitcher
    sale started a stream of filter dales. The Brita
    brand was generating close to 200 million
    revenues a year.

3
  • Has not defined product well
  • Market Segmentation

4
The Clorox Company
  • Clorox makes laundry and cleaning items
    dressing/sauce, cat litter, car care products,
    the Brita water-filtration system (in North
    America), and charcoal briquettes. Its First
    Brands buy gave Clorox Glad-brand plastic wraps,
    storage bags, and containers

5
The Brita company
  • A family-owned corporation headquartered in
    Germany, made a variety of industrial and
    consumer water filtration products.
  • In September 1988, it agreed to let Clorox form a
    subsidiary, Brita USA, to be the sole U.S
    distributor of Brita products.

6
The Brita product
  • The Brita pour-though Filtration system
  • A two-compartment pitcher
  • A replaceable filter

7
Pitchers
  • BRITA Riviera Pitcher The original BRITA
    water filtration systems, BRITA Pitchers
    eliminate 98 of the Lead and reduce Chlorine
    (taste and odor), Copper, and Mercury that may be
    present in your tap water.
  • Capacity 8 - 8oz glasses of filtered water
  • Electronic Filter Change Indicator to remind you
    when to change the filter
  • Space Saving Design that fits in refrigerator
    door to free up storage space
  • Flip-top lid for easy filling
  • Contoured handle for ease of use
  • Filter is included

8
Consumer Attitude and Behavior
  • Over the decade of the 1990s, the safety of tap
    water became a topic of growing concern to U.S
    households.
  • Sales of bottled water from U.S supermarkets and
    home delivery services grew rapidly during the
    decade.
  • A majority of households used either bottled
    water or some water purification system to limit
    their exposure to public water supplies.

9
Market Performance
  • Britas share of combined system and filter
    market revenues had been steady in the range of
    65 to 75 from 1995 to 1999

10
Distribution
11
Positioning and Advertising
  • Emphasized a taste benefit
  • Communicate the idea of Health
  • To be at the top of mountain

12
Competition
  • Brita remained a leadership of 65 to 75 across
    the decade.
  • In 1999, PUR was the only competitor with double
    digit market share
  • 1998 International Housewares Show in Chicago, a
    dozen manufacturers unveiled new water filtration
    products or extension to existing lines.

13
The faucet Mounted Filter Entry
  • Prior to 1995, Brita executives expressed little
    interest in faucet mounted water filtration
    systems.
  • In 1995, Brita hired an outside design company to
    design a faucet mount

14
Courics Decision
  • How to take the Brita brand forward?

15
A fax and a Phone call
  • Brita learns that a retailer, Target Stores, has
    installed a display which compares alternative
    filtration products on their ability to remove
    contaminants from water. Brita does poorly on
    this comparison relative to PUR.
  • Brita learns that Procter and Gamble has just
    purchased a controlling share of PUR water
    fil-ters, with the implication that PUR will now
    be marketed by a firm that is known for its
    marketing expertise and resources.

16
Faucet Systems
  • Brita Disposable Faucet Filtration System
  • The new Brita Disposable Faucet Filtration System
    features a longer lasting filter element that
    makes installation and maintenance simpler and
    easier. The disposable system lasts for up to 1
    year with no filter to change. Once it's done,
    you simply throw it away
  • Installs easily on your kitchen faucet
  • Disposable system lasts up to 1 year with no
    filter to change (filters up to 300 gallons/1,135
    liters)
  • Once it's done you simply throw it away

17
Faucet Systems
  • BRITA Aquaview System The advanced Brita
    AquaView On Tap water filtration system uses
    multiple stages of filtration in combination with
    granular media and hollow fiber technology. The
    revolutionary window design lets you watch your
    filter turn everyday tap water into cleaner,
    great-tasting drinking water.
  • Electronic LED filter replacement indicator
    flashes red when the filter should be replaced
  • Attaches easily with no tools
  • Easy to switch from filtered to unfiltered water
  • Filter is included

18
Replacement Filters
  • BRITA Pitcher - Filter 3-Pack
  • Certified to remove 98 of Lead
  • Certified to reduce Chlorine (taste and odor) and
    Sediment
  • Pitcher filters should be replaced every 40
    gallons (about 2 months for the average family)

19
Replacement Filters
  • BRITA On Tap Chrome Filter - 2-Pack
  • The most advanced Brita water filtration system
    for healthier, great-tasting water, right from
    your tap. It eliminates 98.7 of the Lead and
    reduces Sediment, Chlorine (taste and odor) and
    also reduces chemicals that may be linked to
    cancer risk (TTHM, benzene, TCE, toxaphene) that
    may be in your water.
  • Each filter lasts approximately 100 gallons or 4
    months, whichever comes first

20
Defending with Price
21
Defend strategies
22
  • What are the customer needs in the home water
    filtration markets and how are they fulfilled?
    How are the brands positioned with respect to
    these needs?
  • What drives profit in the home water filtration
    market?
  • If PUR were not a threat, how would you manage
    the Brita brand?
  • Why has Brita been successful in defending
    against Culligan, Electrolux, Sunbeam, Kenwood,
    Corning, Melitta, Rubbermaid, Teledyne, Omni and
    Mr. Coffee? What are their strength against PUR?
  • Should Brita enter the market for faucet mounted
    water filtration, if so, how aggressively should
    they enter the market?

23
What drives profit in the home water filtration
market?
24
Why has Brita been successful?
25
Should Brita enter the market for faucet mounted
water filtration?
  • They should. Faucet mounted water filtration
    market is a growing market
  • Brita owns less than 3 of the market share at
    the end of 1998
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