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 market, but also captured 70% of the market revenue. Brita enjoyed success in the market by creating a perception of better tasting water.
However, as ater purification technology improved and consumer awareness increased, taste alone was 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. The market environment is characterized by fast growth. As consumers are becoming more health-conscious, bottled water and water- filtration systems are becoming a necessity for most, with a Brita pitcher in 1 out of 7 homes – 103 million households.
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. Now suddenly, our competitors came up with the first mover product. Thus Couric is considering allocating resources to launch a faucet-mounted filtration system in response to these emerging competitors.
Many think Brita needs to capitalize on this opportunity to gain new consumers while their name still remains synonymous with quality and taste. Thus raising the question, how should Brita attempt to further penetrate the market with their products? Lets take a look at the Pros and Cons of each option: Option 1: Implement the new faucet mount filtration system The Purpose This writing aims to present one possible solution to the dilemma that Clorox Company faces.
The Clorox Company was the market leader in water filtration in the USA with the Brita Pitcher (one of the Clorox’s most important product), but in 1999 they faced the threat of a new product ‘ the faucet mounted filter. Clorox already had its own version of this new product ready to launch into the market, so the issue was to decide the best of the following strategies: 1 . Continue selling only the current product; 2. Introduce their new faucet mounted filter in addition to the pitcher into the market 2.
The Analysis Market Summary Clorox launched in 1988 the Brita Pitcher and after a decade they were the market leaders of water filtration systems with a market share of 69%. After the Brita pitcher launch, the water quality became a growing concern to consumers. This new attitude about the quality of drinking water allowed the purified water market to grow in both bottled water and filter systems. This growing on the water market, allowed Clorox Has not defined product Market segmentation