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
* Target market water purification industry is the sameHowever people purchasing bottled water is IncreasingReturn on sales might decrease with introduction of faucet mounts. * Diversified marketing towards different classes is difficultHowever people purchasing bottled water is