Case Study: the Brita Products Company Essay

1111 Words Mar 21st, 2012 5 Pages
Case Study: The Brita Products Company

CASE SUMMARY

Situation Analysis:
In 1988 Charlie Couric, a marketing executive at Clorox, oversaw the acquisition by Clorox of the right to market Brita Water Purifier Pitchers in United States, and then became the President and General Manager of Brita USA. He proposed a risky deficit-spending strategy to gain market with the goal of getting a Brita water pitcher on every kitchen countertop in the United States. As a result Brita USA incurred heavy losses upfront as initial sunk costs dwarfed any revenue from sales, and the company saw no profits in its first 4 years. Couric however, believed that in the long run the strategy would pay off as once Brita had achieved enough market share
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* Option 2: Continue with its current launch plan for its faucet-mounted product with the belief that this is only at best a niche market in the larger water purification market. * Decision Statement:
Using a SWOT analysis and secondary sources, and Grand Strategy Matrix model, we conclude that of these available options, the recommended course of action for Brita is to execute strategy # –
Option 3: Focus its resources entirely on firming up the install base of its current pitcher and filter products.

Recommendation:

This strategy is recommended for the following reasons:

* If Brita does not go into faucet mounts there will be a decrease in brand perception; customer retention rate, and overall profits * * It is in line with the Grand Strategy Matrix.

SWOT Analysis

Strengths | Weaknesses | * Brita captures 70% market share in industry * Established Brand Name of Clorox and Brita * Infrastructure to invest in faucet mounts promotion * Volume of pitchers sold in the market are 5 times the volume of faucet mounts sold * Serves a niche market can gain advantage by promoting faucet mounts * Only Brita’s faucet mount is perceived to improve the waters taste * Wide array of filtration products to choose from * Pitchers of different sizes Family sized containers Personal water bottles etc | * Brita lost first

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