Brita Products Co
In 1988, The Clorox Company approved Charlie Couric’s deficit spending proposal to acquire the marketing rights for the Brita pitcher-and-filter water purification system in the United States. ... In a little over ten years, Couric had grown Brita to the point that it accounted for over a 70% share of the revenues for a thriving $350 million industry it had helped to create. Yet, like many industry leaders, Brita had to make decisions for the future. ... At this juncture, Brita had three choices: 1 Continue to emphasize water pitchers 2 Begin endorsing a faucet-mounted system 3 Shift emphasis to increase filter sales versus pitchers Brita knew their pitchers could be found in approximately 14% of US households. This ensured them that there were still untapped markets available for their products. Thus raising the question, how should Brita attempt to further penetrate the market with their products? In addition, Brita’s promotion of fresh taste was being challenged. Their primary competitor, PUR, was being publicly sited as having greater technological abilities in its filtration process than Brita. Consequently, what necessary steps must Brita take to maintain their current market presence? Recommendations/Conclusions It is recommended that Brita begin endorsing the faucet-mounted water purification system in conjunction with the pitchers. ... It is highly suggested that the faucet-mounted filter be labeled under the Brita name even though it would entail paying the 3 % – 4 % royalties to Brita GmbH. The Brita brand name is a powerful marketing tool. It is recommended that this brand should be broadened to include not only the taste factor that has made it famous, but also emphasize Brita’s abilities to filter out contaminants. ... Rationale/Analysis Brita’s success in the pitcher water filtration system is due to its ability to tap a market that has yet to be utilized to its complete potential. Their goal was to ensure that every household owned a pitcher, regardless if Brita had to take a loss on the sale of the pitcher. ... Currently, 80% of each Brita pitcher purchase is deemed to be worth approximately 2.