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    Perumalla Pradeep Kumar
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    This document provides a case analysis of product options for The Brita Products Company. It analyzes whether the company should launch a new faucet-mounted water filter product line in addition to its existing pitcher filter products. The document evaluates various pricing scenarios and forecasts sales and profits. It recommends that Brita launch the new faucet-mounted filter to take advantage of consumer concerns about water quality, but that it promote the pitcher and faucet-mounted filters separately to avoid cannibalizing existing pitcher filter sales. It acknowledges the risk of potential cannibalization as well as new competition from established companies in the faucet-mounted filter market.

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    The Brita Products Company.pdf

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    This document provides a case analysis of product options for The Brita Products Company. It analyzes whether the company should launch a new faucet-mounted water filter product line in addition to its existing pitcher filter products. The document evaluates various pricing scenarios and forecasts sales and profits. It recommends that Brita launch the new faucet-mounted filter to take advantage of consumer concerns about water quality, but that it promote the pitcher and faucet-mounted filters separately to avoid cannibalizing existing pitcher filter sales. It acknowledges the risk of potential cannibalization as well as new competition from established companies in the faucet-mounted filter market.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    88 views9 pages

    The Brita Products Company PDF

    Uploaded by

    Perumalla Pradeep Kumar
    This document provides a case analysis of product options for The Brita Products Company. It analyzes whether the company should launch a new faucet-mounted water filter product line in addition to its existing pitcher filter products. The document evaluates various pricing scenarios and forecasts sales and profits. It recommends that Brita launch the new faucet-mounted filter to take advantage of consumer concerns about water quality, but that it promote the pitcher and faucet-mounted filters separately to avoid cannibalizing existing pitcher filter sales. It acknowledges the risk of potential cannibalization as well as new competition from established companies in the faucet-mounted filter market.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 9

    CASE ANALYSIS THE BRITA PRODUCTS COMPANY

    GROUP 4
    SHREYA GIROTRA(P16019)
    SREEJAN SINGH(P16051)
    ABHISHEK PANDEY(P16039)
    SOURABH PATIL(P16040)
    KURIAN T R (P16054)
    B.V. VISWANATH (P16004)

    Background
    Company
    Clorox Major manufacturer and marketer of household products
    Brita GmbH Manufacturer of industrial and consumer water filtration products

    Competitors
    PUR
    Teledyne

    Customer
    Total bottled water customers(US) in 1999=0.26 billion
    The number of taking no precautions reduced from 47% to 35% from 1995 to 1999
    1999 National Consumer Water Quality Report - Major respondents in age group 18- 24

    expressed their concern about household water quality

    Context
    In 1987, Clorox acquired the home water filtration system in US from Brita GmbH. After

    initial deficit spending, Clorox(with Brita) captured 70% of market revenue.

    Decision problem statement


    Should Clorox deficit spend ?
    How will faucet-mounted launch affect current pitcher

    product?

    Alternatives

    Build the installed base of pitchers


    2. Encourage the installed base to buy more filters
    3. Build a whole new installed base in faucet-mounts
    1.

    Evaluation
    Faucet share

    PUR showed initial growth and

    250%
    200%

    sudden decline in Faucet market


    share after its launch

    150%
    100%
    50%

    0%
    92-93

    93-94

    94-95

    95-96

    96-97

    97-98

    -50%
    -100%
    Faucet Mounts('000units)

    PUR

    Teledyne

    Total number of faucet mounts units

    Faucet mounts by unit

    increased after PURs launch

    1400
    1200
    1000
    800
    600
    400
    200
    0
    1

    Faucet Mounts('000units)

    5
    PUR

    Teledyne

    Evaluation
    Scenario

    Price

    Consumer Trade

    Consumer
    Total Ad
    Ad
    Competitive price price

    forecast
    Sales forecast revenue

    profit?

    34.99

    5400

    2000

    1800

    3200

    12400

    340

    11896.6 No

    34.99

    5400

    2000

    1800

    6000

    15200

    350

    12246.5 No

    29.99

    5400

    2000

    1800

    3200

    12400

    395

    11846.05 No

    34.99

    11100

    3000

    2300

    3200

    19600

    970

    33940.3 Yes

    29.99

    11100

    3000

    2300

    3200

    19600

    1125

    33738.75 Yes

    29.99

    11100

    3000

    2300

    6000

    22400

    1160

    34788.4 Yes

    34.99

    11100

    3000

    2800

    6000

    22900

    1205

    42162.95 Yes

    34.99

    15000

    4000

    2800

    6000

    27800

    1245

    43562.55 Yes

    29.99

    15000

    4000

    2300

    6000

    27300

    1350

    40486.5 Yes

    10

    29.99

    15000

    4000

    2800

    3200

    25000

    1395

    41836.05 Yes

    Recommended action
    Brita Products Co. should launch faucet mounted filter
    Advantage An extra benefit of filtering of microorganisms

    Company should promote individuals(Pitcher & Faucet-

    mounted filter) benefits separately to avoid cannibalization

    Outcome, constraints/limitations
    Introduction of faucet-mounted filter will pose potential

    risk of cannibalization
    Brita will have to compete against PNGs strong

    distribution network

    THANK YOU ..!!

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