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Marketing Strategy for BRITA Water Filters

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Introduction

´╗┐BRITA WATER FILTERS ? ?HOME MADE BEVERAGE? BRITA CASE STUDY ? The Winning Strategy Presented by G-Force TABLE OF CONTENTS Executive Summary...................................................................................................3 SWOT Analysis..........................................................................................................4 Consumer review and findings from segmentation study..........................................6 Recommended target Segments................................................................................8 Recommended Strategies to achieve ?double digit top line growth?.........................10 EXECUTIVE SUMMARY BRITA GmbH was a German water Filter Company. The Clorox Company got the rights to market BRITA in 1988. The Company is a leading consumer products company with fiscal year 2005 revenues of 4.39 billion. With 7600 employees worldwide the company manufactures products in 25 countries and markets them in more than 100 countries. The Clorox Company was organized into SBU?s and BRITA is one of the SBU?s at Clorox. BRITA manufactures the PT (Pour-Through) water filter through which they achieved almost 200 million in revenues in the first 4 years. By 1999 BRITA was available nationally and the brand awareness stood at 70%. 18% of the 103 million US households were using BRITA. During the 1990?s BRITA was faced with stiff competition from numerous companies making water filters. The competition also introduced innovative products ahead of BRITA. In 1998 PUR launched the FM (Faucet mounted) filter that screwed on to the tap. This was an alternative to the PT filter which at the time was the only product BRITA had. The fact that PUR filter removed certain illness causing drugs which was of concern and in line with their positioning to remove impurities helped them pay dividends as it was the only brand that seemed to gain on BRITA, the market leader with 65%-75% market share. PUR continued to grow and was acquired by proctor and gamble. In the late 1990?s the filtered water business changed with introduction of bottled water. Bottled water made up 8% of all the liquids that people paid to drink and was the industry?s fastest-growing category. Sales of BRITA had declined for the first time since its launch. ...read more.

Middle

77% of the consumers believed that BW has a good flavour as compared to 32% of pitcher users. 63% of BW consumers believe that BW is pure as compared to 44% of pitcher users. People see water as healthy and something that they should consume. The AFF and ASI users along with PFF consumers believe that consuming water is good for health. About 73.8% are AFF users. The filter system needs to be easy to use ? to load and to know when to replace. Location of the indicator was not proper. It failed to show the relation between filter replacement and volume of water. As a result of the 46% of PT users who were likely to lapse within the 1st year of using the system, 71% decided not to use a water filtration system. 14% found it too expensive. WFS owners tend to be people who have a hands-on hobby. They Cook more and eat at home more and tend to plan more. They tend to do the ?right things? like eat organic, be vegetarian, take vitamin supplements and eat nutrition bars, exercise/do yoga. Recommended target segments Based on our study of the The Clorox Company, strategic segmentation study by consumer centric solutions Exhibits 7 ? 14, below are the details of the chosen target segments The Brita brand is focusing on providing clean, clear and good tasting water to everyone. The strength is being market leader in pitcher filter (as shown in Exhibit 12, 50.9 of the number of own pitcher filtering system using Brita) which led to strong brand awareness among customers in filtered water market. The three key factors that influence water filter system purchase are water quality, moving home and trying filtered water elsewhere (as shown in Exhibit 13). According to Exhibit 7, from six categories of consumers the target segment has been narrowed down to 3 categories of Water Filtration System (WFS) ...read more.

Conclusion

In the meantime, the company should also pay attention to the price gap with the main competitor to make sure that the price won?t be too high for the competition. However, the opportunity to increase the price comes from the improvement of filters. We can increase the performance of filter in terms of taste removal as well as several value-added benefits mentioned in product activities. Place Short term Strategy There are several places which we can offer product to the customers based on their profile, lifestyle, and purchasing criteria. By consider the information of water filtration system owner (WFS), the customers tend to have health-related activities. By consider their lifestyle, both target segments prefer cooking, reading, and love to learn. Furthermore, PFF segment is still young at the age of 20s, and doing exercise. Moreover, the target segments would like to buy water filtering system when they move to a new house. From all information, we suggest to provide the availability of the products at the place which related to health concern activities which are drug store, organic and healthy food shop, and also fitness centre. Moreover, another place should be convenience store where the people can buy the food. To serve the people at young age and love to learn by themselves, online shop in Brita webpage is the strong recommendation to serve this group of people. Finally, to cope with the customers who consider buying filtering system when moving to a new house, warehouse and furniture shops should be another point of purchase of the products. For long term strategy The product will be made available at all of BRITA?s current distribution channels along with hotels, schools, community halls, tourist spots and the same can also be made available in vending machines which will be installed in all place frequented by people. This will help people who are paranoid about drinking filtered water and the sources of water to simply carry a filter or purchase it conveniently to drink filtered water. ...read more.

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