September 20, 2008
The Brita Products Company
January 15, 2002
1. To what do you attribute Brita’s success?
•It is owned by a well established and successful company, Clorox. •They own a large amount of market share.
•Each pitcher sale starts a flow of filter sales.
•Their customer lifetime value was remarkable. The retention rate is also a high 80%. •They didn’t give up in the early years when sales were very slow because they believed in their product. •They have a large advertising budget.
•They focused advertising equally on how it worked and tasted. •They were so much bigger than all of their competitors, and no one could really compete on their level. PUR is the only one that comes close. •They have the R&D team that most companies only wish they had.
2. What marketing assets has Clorox acquired in these years of vigorous growth, and what is the best use to which the assets can be deployed?
Over the years Clorox has gained substantial market share in the filtered pitcher market. They also have a lot of brand recognition, a large marketing budget, and an experienced research and development team. Clorox can use their large market share to attract customers to new or improved products. Their customers know what types of products they produce and will not be hesitant to purchase them. Brand recognition will be very important in the sale of the faucet filtration systems. They claim to have the best tasting water and according to their research, customers are more concerned about that than removing contaminants. Even though the Brita products are a bit more expensive, people are willing to pay that price for great tasting water. Because Clorox is so successful, they have a significantly large marketing and R&D budget. This gives them a huge advantage over their competitors. They more money they can spend on advertising, the more people are going to see the product and...