Role: A consultant to Charlie Couric of Clorox.
The water filtration industry was experiencing some shifts in the competitive landscape and now Clorox, a market leader, is considering several options to maintain its dominance in the market. Couric is considering allocating resources to launch a faucet-mounted filtration system in response to emerging competitors, notably PUR. Our objectives are to consider the impact of not entering the faucet-mounted filtration market on our market share, brand image and profitability. We must consider the short-term and long-term implications of different scenarios including: entering the faucet-mounted market, increasing our current pitcher sales, and increasing our filter sales. Our competition’s strategies must be analyzed in terms of how much expected market share they are going to take from us if we do not respond and how we can respond most effectively. We need to asses our returns on advertising expenditure to see how impactful our advertising techniques really are and whether we need to project a different image in order to satisfy the current market trends. Our distribution strategy must be assessed and optimized to suit our position in the market. The level of urgency at the moment is not severe as our major competitors are still experiencing losses, however, it is expected that they are going to become more aggressive in their advertising and thus we need to formulate an effective strategy that will counteract their efforts. It took the Brita line four years before it began witnessing success. Next year will be the fourth year since our major competitors launch their pitcher systems and so we need to implement an effective plan within a year. External Analysis
The market environment is characterized by fast growth. As consumers are become more health-conscious, bottled water and water-filtration systems are becoming a necessity for most. There have been cases in which many people have died due to contaminated tap water and thus there is a significant emphasis placed on safe, clean water these days. Some consumers appreciate the portability factors of water more than the taste and health features. Others place a heavier emphasis on taste. Consumers are becoming very well informed about healthy living as more information regarding this matter is rampant in the market currently. Technology is becoming more available in the market to create these filtration systems. It seems as if every year there is a new microbiological specimen that people need to be concerned about in their waters, and technology resolves these concerns almost immediately with improved filtration systems. Regulators in the industry are always testing claims of water-filtration and bottled-water companies to ensure that they are consistent, so it is important to deliver what you promise in this industry otherwise it becomes very difficult to recover any brand equity. Companies can choose to compete through price or quality in this market. Some firms offer standard quality bottled water and filtration systems, which cater to the needs of specific segments. Other firms have more sophisticated systems and products that purify water significantly and some segments do value this. Depending on how companies position themselves in that regard, appropriate distribution channels can be selected to capture and distributed their products. Bottled water can be found virtually anywhere from department stores, mass merchandisers, grocery stores, vending machines, restaurants, club stores, and even drug stores. Filtration systems on the other hand are less accessible to consumers but that is not to say it is difficult to find one in the market. Filtration systems can be found in department stores, mass merchandisers, grocery stores, club stores, and drug stores. Depending one which channel is selected, distributor power can vary from low to high. There are not currently...
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