Brita

A winning Strategy

GROUP : D2
SAMPAN
Situation Analysis
- German Company, pioneered household water filters in America in 1987
- Dominant presence across distribution channels - 71% revenue share; 70% brand awareness
- Multiple Faltering Competitors : PUR product innovation, bottled water as a substitute

Current Issues Faced :

- Declining market share, change in consumer trends to bottled water

- Unable to dominate the FM product market

Strategies adopted to counter the issues and why they failed?

Strategy Reason for Failure

Brand Repositioning making Emotional Appeal Research showed lack of customer engagement and connect
Different segments of people using Brita and Consumer perceived bottled water as better in every aspect such as
bottled water, with low chance of conversion flavour, purity, affordability, convenience to use except time
consumption
Customer retention by product modification and Movement towards FM Model, bottled water and failure of Smart
customer need evaluation PITCHER technology
Reemphasizing poor quality of tap water Failure to connect with masses
Emphasizing bottled water as the Bad Guy Failure to connect with masses
Customer Segments*
Segment Tap Weary Tap Principled Filter Affluent Fridge Assertive Self
Name Traditionalists Satisfied Fans Followers Improvers BW Indulgers

Stressed out, Health conscious,

Pragmatic, family Living Well, health Creative and Career centric,
budget principled. Opinion
centered, opinion conscious. Use Diligent. Opinion : achievement
Consumer Profile constraints. Less : Use filtered water
that tap water is refrigeration system Drinking lot of water driven, quality
concern for as it is healthier
free for filtered water keeps one healthy minded
filtered water than tap

Market Size 17.20% 14.20% 17.40% 14.20% 10.40% 11.70%

Primary Source Tap Tap Filtered Filtered Split Bottled
Type of Filtration N/A N/A Pitcher Refrigerator Pitcher/Faucet N/A

Tap Satisfaction
220 171 43 81 121 34
Index

Affinity to move
towards filtered Low Low High Low High Medium
system

*Refer Exhibit 9
Criteria to Select Customer Segment

Customer Willingness to switch to filtered

water OR
Preference Tap water satisfaction index

Market Size Population Segmentation on

consumer behaviour

Current source of
water consumption
 Target Customers

Tap Traditionalists Weary Tap Satisfied Principled Filter Fans Affluent Fridge Followers Assertive Self Improvers BW Indulgers
Health conscious,
Stressed out, Living Well, health Creative and Diligent.
Pragmatic, family principled. Opinion : Career centric,
budget constraints. conscious. Use Opinion : Drinking lot of
Consumer Profile centered, opinion that Use filtered water as achievement driven,
Less concern for refrigeration system for water keeps one
tap water is free it is healthier than quality minded
filtered water filtered water healthy
tap
Market Size 17.20% 14.20% 17.40% 14.20% 10.40% 11.70%
Primary Source Tap Tap Filtered Filtered Split Bottled
Type of Filtration N/A N/A Pitcher Refrigerator Pitcher/Faucet N/A
Tap Satisfaction Index 220 171 43 81 121 34
Affinity to move towards
Low Low High Low High Medium
filtered system
Marketing Strategy
Short Term
Target Assertive Self Improvers: Believe in Right Water for Right Body
1. Position Pure Water at Reasonable Price - Cross segment preference to reduce impurity (Exhibit
14)
2. Purity conscious, key adoption factor (Exhibit 13) Focus R&D on Purity
Target Principled Filter Fan: Product Faithfuls;
1. Mine client pocket share by customer retention initiatives
a) After Sales O&M services enable continuous engagement and stable revenues (like Aqua Guard)
b) Customer Leakages prevented by repeat filter sales

Long Term
Target OEMs of new gen fridges to supply filters for their products; B2B stable revenue business
High volume with modest margins