Brita- in Search of a Winning Strategy

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Case: BRITA- In search of a winning strategy

Some of the challenges that Brita faces are as follows:
• Decline in sales since 1998. As company’s flagship brand, Brita was expected to contribute double digit top line growth. But in reality, there was approximately a 5% decline in sales every year since 1998 and this decline continued until 2006.
• Faced the problem of losing customer faith in the Brita brand. Brita had slowed established a string brand position among consumers over the ten year period since 1988. It grew to be a $200m grossing company from a small filter system provider. Brand awareness stood at 70% and 18% of 103m households in US used Brita pitchers. This reputation was at stake due to the decline in sales and
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But data suggests that they are tap water traditionalists. Segmentation by age demographics is not good.

Target Marketing

In order to select the segment, there is a need to develop measure of segment attractiveness. The following are the list of some of the criteria that I used in selecting my target segment: o The size of the segment o Segment growth rate o Industry trends o Potential gains and risks associated with this segment o Customer needs and behaviours o Segment penetration costs o Customers’ habits driving the purchase. o Does the firms’ value proposition match with the benefits asked for by the consumers from the target segment? o Quantity of water consumed by this target segment. o Time spent by consumers at and away from home. o Lifestyle led by the target segment -> busy, healthy, exercising? o Company’s objective and resources. Some attractive segments may no mesh with the long run objective. o Profitability in that particular segment. o Attitudes toward water. o The ease with which you can reach this target segment.

Keeping the above criteria in mind, I recommend that Brita should position itself to attract the following two segments:

Target Segment 1: Affluent fridge followers Target Segment 2: Principled filtered fans

Value proposition and Positioning Strategy

Selected Target segment 1: Affluent fridge followers
Segment (customer) attributes and Preferences - One of

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