Business Dissertation

MGT-520

Staff: McDream

Eunkyu Yang, Seung Jae Kwak, Kijin Thomas Lee, Ah Reum Kwon, Go Eun Lyu

The Brita Items Company

1 . To what will you attribute Brita's success?

The success of Brita in america was due to the innovative item model in addition to the great marketing support from a well-researched manufacturer and marketer, The Clorox Organization. Although the company struggled the first few years with low sales volume, yet , they thought that a Brita consumer may have a remarkable lifetime value, leading to the preservation rate of 80%. Not merely their preservation rate was high, Brita's market share have been steady in the range of 65% and 73%, which manufactured them a dominant market player inside the system and filter industry. The reason for being so dominating in the market was because Brita's products had been exactly what the consumers were hoping to find. Attributes of the core product, the pitcher, itself had the following rewards: It increased the taste of water better by lowering chlorine and odors and it was taking out heavy precious metals from the normal water so there was no depositing salts or sediment when the water was boiled.

In terms of marketplace environment, there was clearly actually simply no major concern to the buyers about filtering the tap normal water until it became an issue. During the decade of 90's, the sensitivity persons showed regarding some health-related accidents helped Brita to simply increase their brand awareness to the public and create a significant market. Since the market grew and the merchandise became popular, a lot of people perceived Brita pitcher being a present for friends and close ones.

[Exhibit 6] Retail Market Stocks (United Declares, all selling outlets)

Program

| 1995| 1996| 1997| 1998

Pitchers (thousands of units)| 2, 636| 5, 381| five, 689| six, 307| Brita| 77%| 77%| 80%| 83%

PUR| -%| -%| 4%| 8%

Rubbermaid| -%| -%| 7%| 4%

All others| 23%| 23%| 11%| 5%

Faucet Mounts (thousands of units)| 659| 898| you, 249| one particular, 291| PUR| 9%| 30%| 67%| 74%

Teledyne| 43%| 43%| 27%| 23%

Filtration systems

| 1995| 1996| 1997| 98

Filter Product sales ($millions, retail)| 63. 3| 82. 3| 116. 3| 154. 7| Brita| 65%| 75%| 75%| 75%

Teledyne| 10%| 9%| 7%| 4%

PUR| 1%| 2%| 8%| 17%

Omni| 8%| 5%| 3%| 2%

Sears| 2%| 2%| 1%| 1%

Pollonex| 1%| 1%| 0%| 1%

2 . What marketing property has Clorox acquired during these years of strong growth, and what is the best use to that this assets can be deployed?

Clorox has shown substantive growth and gained significant market share inside the filtered-pitcher industry over the years. Clorox has big brand identification and that helps to ensure profound results for them to make use of their large market share to draw consumers to new products. Buyers already know what products they earn and will not really be hesitant to purchase these people. Brand identification will be a substantially important inside the sale of faucet filtration systems.

Since Brita is known to have the best drinking water taste available in the market and individuals are interested in the better preference than better removing impurities. Therefore , set up Brita products are a little more costly, consumers are willing to pay extra dollars for better tasting drinking water. Plus, as Clorox is actually a hugely effective company, there is a large marketing and R& G budget, which will give them a huge advantage above the competitors on the market. They can advertise the brand and the products in an aggressive way, and more people will see these products, which leads to the next chance of sales increase.

three or more. What are the prospects pertaining to filter revenue? What are the prospects to get the faucet-mounted system? Which usually would you favor?

Brita Organization already has a majority talk about of 74% in the filter market. They are not giving too much pounds to advertising at the moment to increase the filtration system demand and working mainly on in-store promotions only. Thus, if perhaps Brita changes their investment direction to the way that...

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