Brita Report

Problem Statement: P&G, the largest consumer products company in the world and Clorox’s most respected competitor, is acquiring PUR. PUR is a small company that has achieved double-digit market share of the at-home water purification market dominating the faucet-mounted filtration system market that provides superior health benefits & convenience to consumers than Brita’s line of filters.

Recommended Marketing Strategy

We recommend that Clorox allocate significant resources to promoting their new faucet-mounted filters in order to take full advantage of the expanding at-home water purification industry. They should concentrate heavily on the health benefits of the new faucet-mounted filters while leveraging the strong brand name of Brita, utilizing the established reputation for quality and great taste. They should be sure not to weaken the consumer perception of Brita being known for great tasting water but should focus enough on the health benefits of the new system to ensure that they don’t lose customers to PUR systems due to the health benefits of the PUR systems.

There should also be a portion of advertising that targets the bottled water drinker, a $3.4 billion industry. The consumer incentive to promote to this group should be price, as faucet-filtered water is approximately 90% cheaper than bottled water.

The marketing mix should include high consumer promotion and trade spending ($9.1 million), very high consumer advertising ($15 million) and maintain the current pricing levels ($34.99 minimum advertised price).

Analysis/Recommendation Justification

Promoting the faucet-mounted filters.

* The pitcher purification system market has become saturated and growth has slowed and Clorox should look for other areas to continue to grow their purification business.

* Maintaining market leadership in the water purification business requires Clorox to meet the consumer needs & wants as they demand more convenient systems...