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Brita Case

             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.

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