Birita Essay
1.To what do you contribute Brita 's success?The success of Brita in the USA market is due on the one hand to attributes of the core product and on the other hand to factors related to the market environment and successful marketing.
•Attributes of the core productThe pitcher itself had the following benefits: it reduced chlorine and odors, it made water to taste better, it was extracting heavy metals from the water and the water was not depositing salts/sediment when boiled.
•Market environmentInitially, there was no major concern to the consumers about filtering the tap water. However, the sensitivity that people showed about some health problems and/or accidents that rose during the decade of 1990, aided by significant publicity of these …show more content…
•Successful marketingBrita pitcher was a technologically advanced product made from a well known German producer of industrial and consumer water filtration products, characteristics which made it attractive to Clorox who had significant marketing experience and distribution channels in the US. Clorox, which obtained the license from Brita GmbH to set up a subsidiary in USA, knows very well the specific market as it was a major manufacturer and marketer of home products with $3.9 billion dollars of sales in 1998.
Clorox provided the support for Brita: capital for 4 years, the desired know how and leadership, as expressed by the insistence and personal involvement of Mr. Couric.
Furthermore, Brita was the first very successful system of water filter, which created the home water purification industry.
In the distribution area, Brita USA has achieved dominant position in most of the outlets and department stores in the market covering all five possible channels of distribution (Department stores, Mass merchandisers, Grocery stores, Club stores, Drug …show more content…
Can you comment on their positioning choices?Marketing assetsThe Clorox company for the first four years faced real problems to launch the pitcher in the market. After the four years the company managed to create a strong image and build strong brand equity. These assets of the Brita 's pitcher are revealed through the following facts:First of all Brita company is a strong brand name in the market of water purification system. This functions as an asset to support and boost the sales of Brita 's pitcher (or any other water purification system), as there is high degree of brand awareness.
Also, by the year 1999 Clorox had created with the Brita pitcher a significant home water purification industry worth of $350 million at retail and was holding about 70% of revenue share or about $250 million, being a market leader.
Furthermore there is a strong customer base who will buy new filters for the next years (80% of the buyers who have tried the pitcher were still using it a year later and they were re-buying extra filters of about 2.5 pieces per year). Furthermore, from the Lifetime Value of a Customer (LVC) analysis shown in the next question (No 3), it is obvious that filters contribute significantly to the profitability of this
•Attributes of the core productThe pitcher itself had the following benefits: it reduced chlorine and odors, it made water to taste better, it was extracting heavy metals from the water and the water was not depositing salts/sediment when boiled.
•Market environmentInitially, there was no major concern to the consumers about filtering the tap water. However, the sensitivity that people showed about some health problems and/or accidents that rose during the decade of 1990, aided by significant publicity of these …show more content…
•Successful marketingBrita pitcher was a technologically advanced product made from a well known German producer of industrial and consumer water filtration products, characteristics which made it attractive to Clorox who had significant marketing experience and distribution channels in the US. Clorox, which obtained the license from Brita GmbH to set up a subsidiary in USA, knows very well the specific market as it was a major manufacturer and marketer of home products with $3.9 billion dollars of sales in 1998.
Clorox provided the support for Brita: capital for 4 years, the desired know how and leadership, as expressed by the insistence and personal involvement of Mr. Couric.
Furthermore, Brita was the first very successful system of water filter, which created the home water purification industry.
In the distribution area, Brita USA has achieved dominant position in most of the outlets and department stores in the market covering all five possible channels of distribution (Department stores, Mass merchandisers, Grocery stores, Club stores, Drug …show more content…
Can you comment on their positioning choices?Marketing assetsThe Clorox company for the first four years faced real problems to launch the pitcher in the market. After the four years the company managed to create a strong image and build strong brand equity. These assets of the Brita 's pitcher are revealed through the following facts:First of all Brita company is a strong brand name in the market of water purification system. This functions as an asset to support and boost the sales of Brita 's pitcher (or any other water purification system), as there is high degree of brand awareness.
Also, by the year 1999 Clorox had created with the Brita pitcher a significant home water purification industry worth of $350 million at retail and was holding about 70% of revenue share or about $250 million, being a market leader.
Furthermore there is a strong customer base who will buy new filters for the next years (80% of the buyers who have tried the pitcher were still using it a year later and they were re-buying extra filters of about 2.5 pieces per year). Furthermore, from the Lifetime Value of a Customer (LVC) analysis shown in the next question (No 3), it is obvious that filters contribute significantly to the profitability of this