Brita Case

Brita’s competitors were unable to effectively rival Brita in pitcher sales. Brita dominated despite many new entrants to the market. However, a small competitor, PUR, launched a different water filtration product. PUR’s faucet-filter system offered added health and convenience benefits that Brita’s pitcher couldn’t provide.

With its sales slowing down and its stock price plummeting, Brita needed to make a decision on the future direction of the company. They had three feasible alternatives:

i. Continue to emphasize water pitchers

ii. Shift emphasis to increase filter sales versus pitchers

iii. Begin endorsing a faucet-mounted system

It is recommended that the brand should begin endorsing a faucet-mounte

ÿ Deficient attention paid to health concerns/benefits

Brita has enjoyed success in the market by creating a perception of better tasting water. However, as water purification technology improves and consumer awareness increases, taste alone is no longer enough to sustain its massive market share. Consumers are demanding more in terms of health benefits and Brita needs to respond to their growing needs and wants. Rather than disregard PUR as a debt-ridden company, Brita should seize the opportunity to challenge PUR before it is too late. Brita needs to capitalize on this opportunity to gain new consumers while their name still remains synonymous with quality and taste.

Brita has unmatched brand reputation and recognition in the home water purification industry. Using the Brita name will allow the company to more easily penetrate the market and increases the likelihood of success. Even with the additional costs of having to pay royalties, the benefits outweigh the costs. By increasing the sales price of each unit, Brita can absorb the costs of the royalties. The Market Simulation Study found the price impact created no real significance between the price of 34.99 and 39.99. Thus, a 3% price increase should not greatly affect consumer demand.

ÿ Expand product line to meet a broader range of customers/ avoid stagnation

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