The Brita Products Company

Propose proper and tactical market definitions for Brita filtered normal water products. Why is it important for Brita to comprehend this variation in their market arena? So how exactly does your classification impact how big is the actual market and likely competitive strategy Brita should take up? Be explicit about how precisely the competition change across your explanations and how this impacts Brita strategy.

Brita should address their market meanings in a manner that supports continued growth throughout the beverage industry. At present, they involve some tactical decisions to make regarding goal marketplaces and the likelihood of a fresh product altogether. Family members penetration of the Brita pitcher is slowing so a new action plan must be produced to take care of the changing circumstances. I propose two tactical market explanations that will lead Brita Products Company into future.

The first will be a newly focused advertising campaign using the existing Brita pitcher targeted towards young those who care about their water and the style of it. This is a youthful marketplace that is too price-sensitive for water in bottles and other store bought drink choices. This group will range between 18 and 34.

The second tactical market explanation will create Brita Faucet Filters. This product will fulfill the need of medical conscious consumer. These individuals are prepared to pay more for the safeness of what they're ingesting and what they're supplying to the people they value. The prospective market will be 25 and 44 and will include people. We build after the well known Brita name to gain preliminary coverage and credibility.

The proper market Brita should give attention to consists of the complete people. Everyone must drink normal water. Their current goal is to 'put a pitcher on every kitchen counter-top top' and that still can be applied. Every household is potential buyer of a Brita product and by 1999 only one in seven actually was. See Display 1 for a breakdown of the market definitions.

The difference in the forex market industry is the understanding what your company does now, where it is headed in the foreseeable future, and who'll be there to compete with. When you establish a tactical marketing description you are outlining a smaller portion of your proper marketing position enabling a focused strategy that will not overwhelm your marketing scheme. By slowly arranging tactical marketing meanings you are setting up a thorough plan of harm for your entire market market.

If Brita were to choose to give attention to the entire normal water drinking population all at one time then their company would collapse under the enormous budget. They would have to compete not only against their substitutes-in-kind opponents such as PUR, Rubbermaid and Teledyne, but also their substitutes-in-use rivals such as bottled water and even plain tap water. Also, by wanting to attract everyone simultaneously then you lose market show to companies who focus on a definite group. The old adage of 'a jack of most investments is a get better at of nothing at all' applies in this situation.

Exhibit 1

Tactical Definition Probable Tactical Definition

for Brita Pitchers for Brita Faucet Filters

Aesthetics Concerned Quality Concerned

Consumers Consumers

A flavor of Nature

The better way to filter

Brita PUR Brita PUR

Rubbermaid Teledyne


Strategic Definition

for Brita filtered

water products

All households

(103 million in 1999)

Clean normal water for everyone

Brita Bottled Water

Tap water


Assume Brita asked you to steer them in the carry out of any competitive research. Write a brief outline for the kids a) discusses why it is worth it to purchase creating a competitive information system, b) advises and justifies the type of customer, competition, and company data that should be accumulated, and c) details how this data would likely be utilized in growing competitive strategy.

There are five steps that are quintessential for a competitive examination

Knowing your competitors

Identifying their strategies

Assessing their strengths and weaknesses

Estimating their reactions to your efforts

Choosing which rivals to challenge and avoid

In a competitive analysis one must compile a good variety of information not only about your competitors but also about your consumers. A firm needs to know which needs these are seeking to meet for his or her consumers and which other company is attempting to meet those same needs. An organization needs to be familiar with the potential opponents coming into the marketplace. This would allow for a lead period to counteract any unique offerings or advantages of your competitor's product. In addition, a close eyes on competitors can assist in the development of services or accessories for your present product. This is another way for Brita to gain benefits in the technology competition for drinking water filtering products.

Investing in a competitive information system can not only provide the above, but also put your enterprise within an action state somewhat than constantly on the defense of new competing products.

The type of customer that Brita should concentrate on in their competitive research is the customer that is not currently utilizing a Brita product. More specifically is the client that is utilizing their current competitor's product. By gauging their perceptions of the opponents product versus your product then you can begin to understand their needs and better ways to meet them.

The competitors contained in the analysis should not only include your immediate clear competitors, but anyone who may be happening into the industry or market. Brita should become aware of the water in bottles companies as well as Brita GmbH who has the technology to adopt American products abroad with the Brita name.

The company data accumulated should include any patents awarded and/or trade shows where in fact the competition is doing an exhibition. Any information regarding new product launches and expenditures on research and development would be of interest. All of this would allow one to see the dynamics of the market and gain insight into competitor's strategy.

If Brita gathers all of this information and uses it appropriately they'll be able to come with an action strategy rather that a response strategy. They'll be in a position to build strategies surrounding the anticipated moves of the competitors. They can gain the first movers advantage available on the market. This will likely be key to keeping market talk about and avoiding needing to lower costs because of unanticipated competition undercutting the Brita position.

Develop a behavioral model or explanation for how consumers connect to Brita Water Filtration Pitchers. Be explicit about key consumer actions, motivations, and likely problems consumers' experience. You evaluation should start with actions that arise once something is helped bring home and continue through disposal.

Based on your evaluation of these conducts, develop and justify several new product ideas and marketing strategies that could help Brita increase sales. Your opinions can be based on your reasoning and don't have to be supported with real consumer research or data.

After the original purchase of the Brita Water Filter Pitcher the buyer will begin to consume the product or in Brita's case, use the pitcher. The first behavior is the beginning of the container and examining this new product. Following the examining process it will probably go straight into the dishwasher of sink to be washed prior to the first use. After the cleansing the pitcher will finally get a chance to prove its value. Finally a first trial run of filling up the pitcher will need place resulting in extended use because the first few times of use will be with thrills about the new product and the better tasting drinking water. The customer will then begin to connect about the merchandise to relatives and buddies passing on the information they have collected from their encounters about the pitcher. As 80% of users survey using their Brita Water Filter Pitcher a year after purchase, I conclude that the removal of the merchandise will be after the plastic pitcher begins to show wear. The buyer will then toss it out to acquire a shining new pitcher.

The overall actions lead to a good referral marketing impact for the Brita Drinking water Filtration system Pitcher. The desire to use the product comes from enthusiasm about the prospect of this not too difficult product to utilize that produces recognizable benefits - better tasting drinking water. There may be some negative feedback that Brita needs to be familiar with.

Once the Brita Normal water Filtration system Pitcher is helped bring home there are several problems customers could face. The first that involves mind is refrigerator space. A typical category of four, if you ask me, often takes up the complete space with food, dairy and juice boxes. This may lead to people leaving it out on the counter where in fact the water would swiftly become room temperatures and loose the sharp, fresh tastes. Another problem is the timing for a refill. It takes approximately 5 minutes for this to move through the filtering process. When you have company over or you are having meals with your family then you will likely go through more than a pitcher of water thus creating the an uncomfortable moment in time when someone can't be refilled when there is a need or be filled to begin with.

I think a fresh product variant for no shelf space in the refrigerator could be an insulated pitcher that placed the freshly filtered drinking water at a colder temperatures. This might have a double benefit of attractive to potential prospects who are on the go and fear that they are not home enough to benefit from a Brita Normal water Filter Pitcher. They could market this as the active family's option to expensive bottles of water or the basic plain tap water.

Another product may be the faster pitcher fill up design. They are really handling this problem essentially with the faucet filter they are thinking of starting. Alas, any form of your faster form for the filtered drinking water would be greatly profit the customers who just don't have the time nor the patience to wait for the five minutes before another pitcher of water is ready to be consumed.

How would you use the Brita name in branding the new faucet filtration system system? Why? Your answer should carefully consider the viability of the different brand architecture naming options mentioned in school. For your selected name, justify why this program is preferred. Be sure to consider big picture issues such as Brita's current brand structures and equity, challengers, and the customers you believe should be targeted.

I recommend naming the faucet filer system the Brita Drinking water Faucet Filter. It really is based on the name of the Brita Normal water Filtration Pitcher and would not confuse consumers as to what these were buying. The retail industry reported in the case that there is a distinct inclination for using a popular name like Brita. Consumers will be able to relate the Brita name with another normal water filtering device and have self-assurance in their purchase decision.

The brand of Brita can be an arbitrary name that has no significance to a consumer if they did not find out about the products. The precise names directed at the Brita products are descriptive of what they are for. This enables customers to fully understand what they may be buying and lessen the chance of the brand taking over the whole industry like the problem that the Music group Aid brand confronted.

The brand Brita uses a branded house architecture that builds upon the Brita name. By carrying on to utilize the Brita brand you are leveraging their equity in your favor. They now have an 80% market share that will provide itself to the trustworthiness of the new product. Pointing out the key differences in the two products can help relieve cannibalization. The sink system is ideal for individuals who cannot wait five minutes each time they use a pitcher's well worth of drinking water. It removes more contaminates so it is a great choice of for medical concerned customers.

Competitors will be quick to become listed on in on the faucet mount effort, but Brita should be ready as they have already been through that with the pitcher product. By keeping yourself up with technology rather than waging in the technology battle with the others Brita has managed its best tastes position and that is the actual brand means to people. Rivals can't take that away.

The Vantis analysis suggested that the relevant cost range for the tap mounted filtration system was between $39. 99 and $34. 99 which both prices provided strong value.

Should this be the "relevant range" for Brita's charges decisions? Why?

How could Brita become more market-based in their pricing? Be very specific about how exactly you would plan the price decision for the faucet mounted filter if you were managing the product.

An important factor to consider when deciding a charges strategy is product setting. Are you setting your product as a discount product, a luxury product, or anywhere in the centre?

Another factor is profitability. In most cases, the lower something is priced, the higher the number of it will sell. However, if income are reduced to increase number demanded, the additional number demanded by the low price must make up for the lower profit margins.

The most important factor to consider is to ensure that the purchase price charged covers at the very least the direct cost of producing the product. Then it is important to check out making certain the expected amount sold at that price will also cover the other associated (set) costs in producing the merchandise.

While it is straightforward to get caught up in looking at short term profitability, it's important to also consider the permanent impact of a price. It could be difficult to raise the price of a product once consumers expect a certain price; it can be equally damaging to the product's reputation if price must be dropped too quickly as consumers can understand a defect in the product.

Another important awareness is that of Potential client Theory. According to Gerald E Smith and Thomas T Nagle in the California Management Review " THE CHANCE theory argues that individuals evaluate purchases in terms of benefits or losses, relative to a research point. Professionals can therefore, affect purchase decisions by how they present or structure, price and benefits in accordance with a reference point". This emphasizes the idea that perhaps a wise pricing methodology is to fee on the bigger end of the price range, and give you a discount leading consumers to feel like they have "won" somewhat than they have lost.

However, with all that said, we are not able to determine that the $34. 99-39. 99 is the relevant price range, as we aren't sure how these volumes were driven. This range could either be too small, too low, or too high. We are not sure, such as the analysis consumers weren't ask to pin point a cost, at which they would purchase the product, or a price at which they might switch to the lower cost choice, or purchase from the rival. Should Brita execute another similar study, they shouldn't give consumers a variety as it might skew the results, but rather as respondents to give a price range.

We can assume, however, that Brita does do their research and are offering us only the relevant information in the event and that the runs given are in fact in the relevant cost range.

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