Strong advertising campaign.
Low risk/uncontestable product claim, "good taste-.
Cost advantages.
Strong marketing research.
Organization's Weaknesses.
Lack of product diversity.
Deficient attention paid to health concerns/benefits.
Required to pay Brita GmbH a royalty; 3% to 4% of sales depending upon volume.
Falling behind in R&D.
External Opportunities.
Still untapped markets to be exploited.
Growing public concern over the safety of tap water.
Expand product line to meet a broader range of customers/ avoid stagnation.
Diversify into related products.
Increased/increasing recognition in younger generations about the products benefit - positive trend for purchasing behavior.
External Threats.
New and existing competitors.
Changing buyer needs and tastes.
Slower market growth.
Rising sales of substitute product.
PROBLEM STATEMENT.
The Brita Products Company desires to sustain long run growth in the industry. However, growth is waning due to the rising sales of a substitute product, the faucet mount system. Faucet mounted systems are able offer increased health benefits offering protections against hazardous contaminants such as cryptosporidism, giardia and abestos. Brita's pitcher filtration systems only protects against lead and chlorine. Their primary competitor, PUR, is publicly sited as having greater technological abilities in its filtration process than Brita. Brita must determine the necessary steps to maintain their current market presence. They must determine how to further penetrate the market with their products. .
ALTERNATIVES.
Continue to emphasize water pitchers.
Pros.
The Brita Products Company is a clear leader is the home water filtration industry. In just a little over ten years, Brita's sales account for over 70% of the revenues in the $350 million market it helped to create. Pitcher sales have been steadily increasing despite the entrance of new competitors and substitutes. Brita pitcher sales account for 83% of all pitchers sold in retail outlets across the US.
