Brita Case Analysis
Situation Analysis
Clorox Company has acquired Brita’s pitcher as it looked promising.
High customer loyalty is an invaluable asset for Brita.
Brita was a trusted brand in the water purifier market and was the biggest player in the market.
However, the entry of faucets into market looks to be a potential threat to its share.
Moreover, there has been a decline in penetration of the pitcher product.
Launching a new product in faucet category can cannibalise the pitcher sales.
Customers becoming more and more health conscious by the day.
Problem: The threat from PUR’s faucet-filter product as this new product provides some benefits which Brita’s products don’t.
Options: At this juncture, Brita has the following three options:
Continue with pitchers
Shift the budget to ramp up filter sales
Launch new product in the faucet segment
Analysis
Not entering faucet market would mean risking the loss of customers.
Launching a new product in the faucet category could help explore untapped markets.
By introducing a new product in faucet category, Brita can maintain its leadership in the water-purifiers market.
The customer awareness of faucet products can help Brita in its costs in launching the product.
The established Brita brand name capable of driving the sales in the long run.
Water purification is more of a need and customers would see it as a one-time long term investment and thus, would prefer faucet for its low per litre cost.
The strength of being present in multiple product segments.
Little necessity for promotion of pitcher product, as Brita already as a huge market share in the segment.
Recommendation: It is recommended that Brita should enter the faucet market as this would benefit the firm in the long run.
Clorox Company has acquired Brita’s pitcher as it looked promising.
High customer loyalty is an invaluable asset for Brita.
Brita was a trusted brand in the water purifier market and was the biggest player in the market.
However, the entry of faucets into market looks to be a potential threat to its share.
Moreover, there has been a decline in penetration of the pitcher product.
Launching a new product in faucet category can cannibalise the pitcher sales.
Customers becoming more and more health conscious by the day.
Problem: The threat from PUR’s faucet-filter product as this new product provides some benefits which Brita’s products don’t.
Options: At this juncture, Brita has the following three options:
Continue with pitchers
Shift the budget to ramp up filter sales
Launch new product in the faucet segment
Analysis
Not entering faucet market would mean risking the loss of customers.
Launching a new product in the faucet category could help explore untapped markets.
By introducing a new product in faucet category, Brita can maintain its leadership in the water-purifiers market.
The customer awareness of faucet products can help Brita in its costs in launching the product.
The established Brita brand name capable of driving the sales in the long run.
Water purification is more of a need and customers would see it as a one-time long term investment and thus, would prefer faucet for its low per litre cost.
The strength of being present in multiple product segments.
Little necessity for promotion of pitcher product, as Brita already as a huge market share in the segment.
Recommendation: It is recommended that Brita should enter the faucet market as this would benefit the firm in the long run.