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The Brita Products Company was founded in 1988 on the recommendation of Charlie Couric, a marketing executive at the Clorox Company. With a strong belief in its potential for profitability, Clorox acquired the rights to market the home water filtration system. Initially, Clorox engaged in deficit spending, citing the long-term benefits of continuous filter sales. This strategy paid off as Clorox not only created a $350 million market but also captured 70% of the market revenue. Brita's success in the market was attributed to creating a perception of better-tasting water.
However, as water purification technology advanced and consumer awareness grew, taste alone was no longer sufficient to maintain Brita's significant market share.
Consumers began to demand more in terms of health benefits, prompting Brita to adapt to their evolving needs and preferences.
The market landscape was characterized by rapid growth, with consumers becoming increasingly health-conscious. Bottled water and water filtration systems were no longer seen as luxuries but as necessities, with a Brita pitcher present in 1 out of 7 homes, totaling 103 million households.
Despite facing numerous new entrants to the market, Brita's competitors struggled to compete effectively in pitcher sales.
Brita continued to dominate the market, but a small competitor, PUR, introduced a different water filtration product.
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PUR's faucet-filter system offered additional health and convenience benefits that Brita's pitcher did not provide, posing a new challenge for Brita. In response to these emerging competitors, Couric contemplated allocating resources to launch a faucet-mounted filtration system.
Many believed that Brita needed to seize this opportunity to attract new consumers while maintaining its reputation for quality and taste.
This raised the crucial question of how Brita should further penetrate the market with its products.
To address this dilemma, we will explore the pros and cons of two potential options:
Continue selling only the current product;
Introduce the new faucet mount filtration system in addition to the pitcher.
Since its launch in 1988, Clorox's Brita Pitcher had established itself as a market leader in water filtration systems, capturing a 69% market share within a decade. The introduction of the Brita pitcher sparked a growing concern among consumers about the quality of drinking water, leading to an expansion of the purified water market encompassing both bottled water and filter systems. This shift in consumer attitudes towards water quality fueled the growth of the water market, providing Clorox with a lucrative opportunity to capitalize on the evolving needs of consumers.
As consumer awareness increased and technological advancements in water purification emerged, the market dynamics began to change. Taste, which had been Brita's primary selling point, was no longer sufficient to maintain its dominance in the market. Consumers now sought water filtration systems that offered not only improved taste but also additional health benefits and convenience features. This shift in consumer preferences posed a challenge for Brita, as competitors like PUR introduced innovative products that addressed these evolving needs.
With the threat of losing market share to competitors offering more advanced filtration systems, Brita faced a critical decision regarding its product strategy. The introduction of a faucet-mounted filtration system by PUR highlighted the need for Brita to innovate and diversify its product offerings to stay competitive in the rapidly evolving market. Couric's consideration of launching a similar product reflected the company's recognition of the importance of meeting consumer demands for enhanced health benefits and convenience in water filtration.
Despite Brita's strong brand reputation and market presence, the emergence of new competitors with innovative products presented a significant challenge. To maintain its position as a market leader and continue to attract consumers, Brita needed to adapt to changing consumer preferences and technological advancements in water filtration. The decision to introduce a faucet-mounted filtration system alongside its existing pitcher was seen as a strategic move to expand its product line and cater to a broader range of consumer needs.
In conclusion, the evolving market trends and competitive landscape necessitated Brita's strategic response to meet the changing demands of consumers. By introducing a new faucet mount filtration system, Brita could position itself as a leader in providing innovative and health-conscious water filtration solutions, ensuring its continued success in the dynamic market environment.
Britas Inception and Cloroxs Influence: A Brief History. (2018, Oct 20). Retrieved from https://studymoose.com/brita-case-essay
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