Market Share

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Whitney Williams MKT 428 MW 2:00-3:15 September 20, 2008 The Brita Products Company John Deighton January 15, 2002 1. To what do you attribute Brita’s success? • It is owned by a well established and successful company, Clorox. • They own a large amount of market share. • Each pitcher sale starts a flow of filter sales. • Their customer lifetime value was remarkable. The retention rate is also a high 80%. • They didn’t give up in the early years when sales were very slow because they believed in their product. • They have a large advertising budget. • They focused advertising equally on how it worked and tasted. • They were so much bigger than all of their competitors, and no one could really compete on their level.…show more content…
Conclusion Couric’s final decision should be to put the weight of their resources behind building a whole new installed base in faucet-mounts. Reason Launching a new product line of mounted-faucets will increase Brita’s market share and have a positive impact on revenues. Evidence After calculating customer lifetime value and net present value for each scenario, I chose to go ahead and launch the faucet-mount because it had the highest CLTV and NPV. The numbers show that it will be a successful product and have a positive impact on Brita. The ACNielsen Vantis study proved that the faucet could live side-by-side with the pitcher and that it would increase the likelihood of buying a product from the Brita line. Because Brita has already acquired about 80% of the market they have a huge advantage over their competition. They already have a steady customer base and can use that as a starting point when launching the faucet-mounts. Brita is unique because they use “great taste” as their advertising strategy while everyone else uses contaminant elimination. So far, it has been a successful strategy for Brita and they should continue to use that to promote their products. In the following pages you will see my calculations and reasoning behind choosing to launch the
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