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
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