The Clorox Company is about to enter a new product market by launching a faucet mounted filter system in order to maintain its dominance in the water filtration business. To do this in a successful way, Clorox has to conquer this market with the right entry strategy. Main goal is therefore to gain market share by targeting the right customer segment and make an appropriate marketing investment. Also the previous pitcher market leadership must be maintained.
The biggest impediment is that the Clorox enters an already existing market and the dominant market leader, PUR, has well developed its “PUR Ultimate” system. Moreover Procter & Gamble are about to take control over PUR. It is also likely that the sale of faucet mounted products will lead to a decline of our pitcher system unit sales.
To enter the new market successfully, it is necessary to divide the market into the different customer segments. By choosing the path of the least resistance we easily steel market share from our main competitor and weaken him thereby. Once successfully entered the new market, we improve technique and distribution channels to encourage rival customers to switch the brand.
II. Problem Analysis:
1. Goals
The main goal of this case is to enter the faucet mounted filter market and gain market shares (first year unit sales approx. 1,205,000) by launching our product to the right customer segments.
Bottom–line Marketing Goal
Improve our brand awareness as only 1/7 US households use a pitcher filter
Keep our leadership in the Pitchers segment: maintain our market share (83%)
Improve the technology of the pitcher regarding contaminants removal
Consumer Marketing Goal
Target the right and best customers, according to age and zone, to get easily into the market.
Adapt the promotion to the goal: choice of the brand name, choice of the best message for advertising.
Distribution strategy must be assessed and optimized to suit our position in