The Brita Case Solution
■ The Brita Products Company
◎ SWOT Analysis
Strengths
Market leader in pitcher filter category, strong brand image
Large retail distribution system, presence in multiple channels (“Class to Mass”)
Loyal customer base, repeated purchasing replacement filters
Strong advertising and brand image, waterfall equals good, clean taste
Weakness
Slowing growth in pitcher market
Lack of product diversity
Change in customer preferences, deficient attention paid to health concerns
Existing channel relationships may not work for faucet launch
Opportunities
Untapped markets to be explored, possible new segment with faucet filter
Migrate current customers to new faucet, pitcher becomes a “stepping stone”
New product appeals to health safety concerns
Threats
Entrance of new competitors to the market, pitcher prices may drop
New competitor, PUR, about to merge with P&G, could become market leader in faucet purification
New faucet sales may cannibalize Brita pitcher sales
◎ 3C(Company, Customer, Competitor) ANALYSIS
(1) Company – Using the existing Clorox’s advantages; channels, know-hows
Instead of a health food chain, they used Clorox’s traditional base, grocery and drug outlets. And they set up the efficient business model, could make customer loyalty with repeated purchasing; replacement filters.
Also, they kept insisting trustful price. They reimburse retailers not to feature the price below their MAP(minimum advertised price).
(2) Customer – Concerns for health safety and water quality has increased
Because of the contaminated drinking water accidents in East Woburn(1979) and Milwaukee(1993), people has become doubtful to drink water straight from the tap. And also it was informed that people had not drunk sufficient water compared to the expert recommendation (8-ounce serves daily necessary, but only two-third fulfilled in 1998 survey)
(3) Competitor – First-mover in pitcher purification system
◎ SWOT Analysis
Strengths
Market leader in pitcher filter category, strong brand image
Large retail distribution system, presence in multiple channels (“Class to Mass”)
Loyal customer base, repeated purchasing replacement filters
Strong advertising and brand image, waterfall equals good, clean taste
Weakness
Slowing growth in pitcher market
Lack of product diversity
Change in customer preferences, deficient attention paid to health concerns
Existing channel relationships may not work for faucet launch
Opportunities
Untapped markets to be explored, possible new segment with faucet filter
Migrate current customers to new faucet, pitcher becomes a “stepping stone”
New product appeals to health safety concerns
Threats
Entrance of new competitors to the market, pitcher prices may drop
New competitor, PUR, about to merge with P&G, could become market leader in faucet purification
New faucet sales may cannibalize Brita pitcher sales
◎ 3C(Company, Customer, Competitor) ANALYSIS
(1) Company – Using the existing Clorox’s advantages; channels, know-hows
Instead of a health food chain, they used Clorox’s traditional base, grocery and drug outlets. And they set up the efficient business model, could make customer loyalty with repeated purchasing; replacement filters.
Also, they kept insisting trustful price. They reimburse retailers not to feature the price below their MAP(minimum advertised price).
(2) Customer – Concerns for health safety and water quality has increased
Because of the contaminated drinking water accidents in East Woburn(1979) and Milwaukee(1993), people has become doubtful to drink water straight from the tap. And also it was informed that people had not drunk sufficient water compared to the expert recommendation (8-ounce serves daily necessary, but only two-third fulfilled in 1998 survey)
(3) Competitor – First-mover in pitcher purification system