Brita Case

Group 4 – Blue
Bonato / Loreti / Gatti / Panascha / Li
Brita’s Profitability
Pitchers
 Unit sales: 5,266,000
 Revenues: $79,800,000
-Total Cost: $57,100,000
 Net Profit: $22,700,000
 Profit per Unit: $4.31
 Net Profit Margin ：
28.45%
Brita makes money on repeat filter sales
Filters
 Unit sales: 27,413,000
 Revenues: $112,400,000
-Total Cost: $59,200,000
 Net Profit: $53,200,000
 Profit per Unit: $1.94
 Net Profit Margin ： 47.33%
Brita’s Success Attributes
 Market pioneer

 Unique product

 Position and advertising

 Distribution strategy
What caused a market need for filters?
 1990’s Growing concern about water quality
 East Woburn and Milwaukee water contamination
 47% preferred to not drink tap water
 72% were concerned about tap water quality

 Expert recommendation to drink 8 glasses of water per day

Market Creation
 Before 1988, Brita GmbH (product pioneer) sold
primarily in small health food stores

 Clorox purchases Brita rights and expands distribution

and brand awareness to Mass Merchandise and Grocery
Product Benefits
First company in USA to successfully market these
benefits to switch household habits

Customer  Company
 Improved water taste vs.  Repeat filter sales
house tap water  Low cost / high profit
 No water deposit scale margin on filters
when boiled
 Removed heavy metals
and chlorine
 Easy to use
 Position and Advertising
 Reinforced the concept of ‘taste’ to convince consumers
of the associated health benefits
 Educated consumers on “How it Works”
 Campaign against bottled water
 Existing customers introduced the product among their
network to spread awareness to new consumers
Brita Distribution Strategy
“Class to Mass” … Target all consumers

1. Upscale pitchers for high 2. Standard pitchers for mass

end department stores merchants

3. Packs of filters to club retailers

Why are Competitors Unsuccessful?

 First-to-market and successful advertising campaign has created a

high association of water filters to Brita
 Brita is positioned well in the middle (Position Defense)
 High end competitor with new technology (PUR)
 Low priced product (Rubbermaid)

Occupies the most desirable market space in consumers minds making the
brand almost impregnable

16 different styles to choose from

7 out of 10 pitchers sold in the U.S. bear the Brita name
New Entrants Changing the Game
 Brita Problems:
 Water spills when poured prior to filtration completion
 Black specks of carbon in water
 Not elegant for dinner table