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D1 - MKT1 - Brita Case VII

Brita faces challenges in shifting its strategy from selling water pitchers to promoting filtered tap water. Two target segments are identified: 1) "Principled filter fans" - The largest segment at 17.4% of the market. They primarily use pitchers but are open to filtered water. 2) "Assertive self-improvers" - A growing segment dissatisfied with tap water. They have high water consumption and could increase filtered tap usage. Brita's strategy will target these segments by positioning filtered tap water as the primary water source and highlighting its health and environmental benefits over bottled water. However, changing consumer preferences remains a challenge.

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Mayuresh Gaikar
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115 views6 pages

D1 - MKT1 - Brita Case VII

Brita faces challenges in shifting its strategy from selling water pitchers to promoting filtered tap water. Two target segments are identified: 1) "Principled filter fans" - The largest segment at 17.4% of the market. They primarily use pitchers but are open to filtered water. 2) "Assertive self-improvers" - A growing segment dissatisfied with tap water. They have high water consumption and could increase filtered tap usage. Brita's strategy will target these segments by positioning filtered tap water as the primary water source and highlighting its health and environmental benefits over bottled water. However, changing consumer preferences remains a challenge.

Uploaded by

Mayuresh Gaikar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BRITA

In Search of a Winning
Strategy

BY GROUP D1
ANTRA VERMA
D I B YA J Y O T I
BEHERA
K A N VA R S I N G H
KOHLI
MANORAM BASHAL
Problem Faced by Brita
Strategy Key Motives Problems Faced by Brita
Where does Water • Healthy lifestyle positioning • Advertisements were drafted but not pursued
belong? • Focus on refreshment category • Difficult to shift from PT market to refreshment

Bottled Water as the • Unlimited supply of water • Difficult to change the consumers’ preferences
Bad Guy • Skepticism within the company
Leaky Bucket • Retaining strategy to target the lapsed • Maintenance complexity in filter change raised
consumers (70%) doubts and curtailed usage
• Advancement in filter technology • Growth of bottled water consumption

Tap Water Turn-offs • Key focus on tap water consuming • Focus on taste instead of price
segment (31.4%) • Management doubts on the initiative
Bottled Water as the • Simple solution of easier and cheaper • Couldn’t penetrate the existing bottled water
Bad Guy, revisited alternative consumers
Segment to Target
Criteria Tap Weary Tap Principled Affluent Assertive BW
traditionalists Satisfied filter fans Fridge Self Indulger
Followers Improvers s
Geographic- 17.2% 14.2% 17.4% 14.2% 10.4% 11.7%
Market Share
Demographic- 50+ Midwest 40s 20s Never 30s High 40s under 20s
Age, income level, South Atlantic w/children married incomes more $50k women
gender and Lower Pacific educated Mid Atlantic
nationality income level states White collar Small Metros

Behavioral- Low Medium High Low High Low


Attitude towards
the product change
Segment to Target
Criteria Tap Weary Tap Principled Affluent Assertive BW
traditionalist Satisfied filter fans Fridge Self Indulgers
s Followers Improvers
Psychographic- Free, Natural Convenience Health Social status Health Portability
Need (TSI = 220) Low price conscious; conscious; Water
Water Usage Quality (TSI
Quality Volume = 34)
Convenience

Over all No market High Medium No market Medium Difficult


Competition entry
Criteria to Identify Target Segment
Principled filter fans Assertive self improvers
• Long-term strategy
• Short-term strategy • Short-term strategy • Filtered water as primary source
• Highest Market size 17.4% • Market size 10.4% split between – 75.7
• Pitcher is the primary source tap & filter – Potential growth • Potential market to shift to
• More number of people for filter BRITA
consumer water at home • Highest water consumption at • Low tap satisfaction index
• Filtered water as primary home – 10.33
source – 90.6

Affluent fridge followers


Major Criteria for Targeting
Customers
• Highest Market Share

• Segment Penetration- Attitude to change


the consumer preferences

• Filtered water consumption

• Tap satisfaction index

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