The Brita Products Company

1
The Brita Products Company
2
Overview

• Couric, a marketing executive with the Clorox
  Company proposed that Clorox acquire the right to
  market Brita in the USA.
• Clorox supported Courics deficit-spending
  proposal.
• A decade later, Brita had grown to become one of
  Cloroxs biggest brands.-more than 17 million
  Brita pitchers had been sold, and each pitcher
  sale started a stream of filter dales. The Brita
  brand was generating close to 200 million
  revenues a year.

3

• Has not defined product well
• Market Segmentation

4
The Clorox Company

• Clorox makes laundry and cleaning items
  dressing/sauce, cat litter, car care products,
  the Brita water-filtration system (in North
  America), and charcoal briquettes. Its First
  Brands buy gave Clorox Glad-brand plastic wraps,
  storage bags, and containers

5
The Brita company

• A family-owned corporation headquartered in
  Germany, made a variety of industrial and
  consumer water filtration products.
• In September 1988, it agreed to let Clorox form a
  subsidiary, Brita USA, to be the sole U.S
  distributor of Brita products.

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The Brita product

• The Brita pour-though Filtration system
• A two-compartment pitcher
• A replaceable filter

7
Pitchers

• BRITA Riviera Pitcher The original BRITA
  water filtration systems, BRITA Pitchers
  eliminate 98 of the Lead and reduce Chlorine
  (taste and odor), Copper, and Mercury that may be
  present in your tap water.
• Capacity 8 - 8oz glasses of filtered water
• Electronic Filter Change Indicator to remind you
  when to change the filter
• Space Saving Design that fits in refrigerator
  door to free up storage space
• Flip-top lid for easy filling
• Contoured handle for ease of use
• Filter is included

8
Consumer Attitude and Behavior

• Over the decade of the 1990s, the safety of tap
  water became a topic of growing concern to U.S
  households.
• Sales of bottled water from U.S supermarkets and
  home delivery services grew rapidly during the
  decade.
• A majority of households used either bottled
  water or some water purification system to limit
  their exposure to public water supplies.

9
Market Performance

• Britas share of combined system and filter
  market revenues had been steady in the range of
  65 to 75 from 1995 to 1999

10
Distribution
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Positioning and Advertising

• Emphasized a taste benefit
• Communicate the idea of Health
• To be at the top of mountain

12
Competition

• Brita remained a leadership of 65 to 75 across
  the decade.
• In 1999, PUR was the only competitor with double
  digit market share
• 1998 International Housewares Show in Chicago, a
  dozen manufacturers unveiled new water filtration
  products or extension to existing lines.

13
The faucet Mounted Filter Entry

• Prior to 1995, Brita executives expressed little
  interest in faucet mounted water filtration
  systems.
• In 1995, Brita hired an outside design company to
  design a faucet mount

14
Courics Decision

• How to take the Brita brand forward?

15
A fax and a Phone call

• Brita learns that a retailer, Target Stores, has
  installed a display which compares alternative
  filtration products on their ability to remove
  contaminants from water. Brita does poorly on
  this comparison relative to PUR.
• Brita learns that Procter and Gamble has just
  purchased a controlling share of PUR water
  fil-ters, with the implication that PUR will now
  be marketed by a firm that is known for its
  marketing expertise and resources.

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Faucet Systems

• Brita Disposable Faucet Filtration System
• The new Brita Disposable Faucet Filtration System
  features a longer lasting filter element that
  makes installation and maintenance simpler and
  easier. The disposable system lasts for up to 1
  year with no filter to change. Once it's done,
  you simply throw it away
• Installs easily on your kitchen faucet
• Disposable system lasts up to 1 year with no
  filter to change (filters up to 300 gallons/1,135
  liters)
• Once it's done you simply throw it away

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Faucet Systems

• BRITA Aquaview System The advanced Brita
  AquaView On Tap water filtration system uses
  multiple stages of filtration in combination with
  granular media and hollow fiber technology. The
  revolutionary window design lets you watch your
  filter turn everyday tap water into cleaner,
  great-tasting drinking water.
• Electronic LED filter replacement indicator
  flashes red when the filter should be replaced
• Attaches easily with no tools
• Easy to switch from filtered to unfiltered water
• Filter is included

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Replacement Filters

• BRITA Pitcher - Filter 3-Pack
• Certified to remove 98 of Lead
• Certified to reduce Chlorine (taste and odor) and
  Sediment
• Pitcher filters should be replaced every 40
  gallons (about 2 months for the average family)

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Replacement Filters

• BRITA On Tap Chrome Filter - 2-Pack
• The most advanced Brita water filtration system
  for healthier, great-tasting water, right from
  your tap. It eliminates 98.7 of the Lead and
  reduces Sediment, Chlorine (taste and odor) and
  also reduces chemicals that may be linked to
  cancer risk (TTHM, benzene, TCE, toxaphene) that
  may be in your water.
• Each filter lasts approximately 100 gallons or 4
  months, whichever comes first

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Defending with Price
21
Defend strategies
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• What are the customer needs in the home water
  filtration markets and how are they fulfilled?
  How are the brands positioned with respect to
  these needs?
• What drives profit in the home water filtration
  market?
• If PUR were not a threat, how would you manage
  the Brita brand?
• Why has Brita been successful in defending
  against Culligan, Electrolux, Sunbeam, Kenwood,
  Corning, Melitta, Rubbermaid, Teledyne, Omni and
  Mr. Coffee? What are their strength against PUR?
• Should Brita enter the market for faucet mounted
  water filtration, if so, how aggressively should
  they enter the market?

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What drives profit in the home water filtration
market?
24
Why has Brita been successful?
25
Should Brita enter the market for faucet mounted
water filtration?

• They should. Faucet mounted water filtration
  market is a growing market
• Brita owns less than 3 of the market share at
  the end of 1998