The Brita Products Company began in 1988 under the recommendation of Charlie Couric, a marketing executive with the Clorox Company. Optimistic of its capability to be profitable, Clorox acquired the right to market the home water filtration system. Clorox, citing the overriding long-term benefits of continuous filter sales, initially engaged in deficit spending. Such measures paid off and Clorox not only created a $350 million dollar market, but also captured 70% of the market revenue. .
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-mounted system due to the undeniable health benefits of such a system and the potential of losing market share to PUR. .
KEY FACTS.
Brita started US distribution in 1988.
Deficit spent in order to penetrate market- Marketing orientation.
By 1999, an estimated 13% to 15% of the 103 million households in the US were using a Brita pitcher.
Held 70% of market revenue share leader in industry.
PUR is emerging as Brita's largest competitor by offering a faucet-mounted filter.
S.W.O.T. ANALYSIS.
Internal Strengths.
Access to a large amount of capital.
High brand values and equity.
Large retail distribution system.
Breadth of distribution .
Diversified distribution strategy.
Expanded "Class to Mass- strategy.
An acknowledged market leader.