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…show more content… But data suggests that they are tap water traditionalists. Segmentation by age demographics is not good.
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