Bp Business Processes

n 1988, The Clorox Company approved Charlie Couric’s deficit spending proposal to acquire the marketing rights for the Brita pitcher-and-filter water purification system in the United States. Couric’s key argument to Clorox was based on the cash flow from the filters necessary to maintain the home-based water purification system.

In a little over ten years, Couric had grown Brita to the point that it accounted for over a 70% share of the revenues for a thriving $350 million industry it had helped to create.

Yet, like many industry leaders, Brita had to make decisions for the future. The market was becoming more interested in the advances of faucet-mounted filters versus pitchers. At this juncture, Brita had three choices:

1 Continue to emphasize water pitchers

2 Begin endorsing a faucet-mounted system

3 Shift emphasis to increase filter sales versus pitchers

Brita knew their pitchers could be found in approximately 14% of US households. This ensured them that there were still untapped markets available for their products. Thus raising the question, how should Brita attempt to further penetrate the market with their products?

In addition, Brita’s promotion of fresh taste was being challenged. Their primary competitor, PUR, was being publicly sited as having greater technological abilities in its filtration process than Brita. Consequently, what necessary steps must Brita take to maintain their current market presence?

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