Business

1346 Words Mar 30th, 2013 6 Pages
MGT-520
Team: McDream
Eunkyu Yang, Seung Jae Kwak, Kijin Ryan Lee, Ah Reum Kwon, Go Eun Lyu

The Brita Products Company

1. To what do you attribute Brita’s success?

The success of Brita in the United States was due to the innovative product model as well as the great marketing support from a well-established manufacturer and marketer, The Clorox Company. Although the company struggled the first few years with low sales volume, however, they believed that a Brita consumer would have a remarkable lifetime value, resulting in the retention rate of 80%. Not only their retention rate was high, Brita’s market share had been steady in the range of 65% and 75%, which made them a dominant market player in the system and filter market.
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Whether it is a pitcher or a faucet-mounted system, the users need filters periodically and in order to increase the filter sales, the company should focus on selling the system units. As people become more interested in the quality of tap water and their well-being [Exhibit 4], PUR’s advanced filtering technology has been in the limelight and the market for faucet-mounted system has been expanded.
Because of these reasons, Brita Company is considering launching the new faucet-mounts.

[Exhibit 4] Water Quality : Consumer Attributes and Behavior

Expressed concerns about household water quality (% of respondents) | 1995 | 1997 | 1999 | Expressed any concern | 75 | 75 | 72 | Health contaminants(net) | 54 | 50 | 48 | Bacteria | | | 9 | Aesthetics(net) | 61 | 60 | 56 | Smell and/or taste | 45 | 42 | 40 | Appearance | 33 | 26 | 26 | Hardness | 38 | 39 | 36 | Sediments | 43 | 40 | 38 |

Expressed concerns about household water quality by age in 1999(% of respondents) | 18-24 | 25-34 | 35-44 | 45-54 | 55-64 | 65+ | Expressed any concern | 89 | 79 | 79 | 70 | 59 | 56 | Health contaminants | 67 | 56 | 58 | 45 | 36 | 25 |

4. How will you defend against the new competition? What other alternative strategic choices one could come up with? Among them, what would be the best solution of your choice that is most effective to fight against the new competition?

A. Keep the focus on building

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