22nd October 2013
M/s Brita GmbH
Marketing situation at the end of 2006:
There are 4 major findings which are observed when we analyse the Marketing situation faced by Brita at the end of 2006.
Firstly, the market for the Brita Pour-through system(PT), which is the core product that propelled Brita’s position in the market, has been stagnant since the introduction of alternative sources of filtered systems such as Faucet-mounted(FM) filter and the introduction of bottled water in to the market. With Brita reluctant to explore the alternative options quickly, other competitors such as PUR, have gained a firmer foot-hold in terms of ...view middle of the document...
Firstly, since the introduction of Faucet-mounted filter(FM) in 1998 and its subsequent success in the market, Brita has been unable to identify its target customers as they were as able to, when they entered the market. This has meant that Brita has not had a safety net in the market, when they implement new strategies and thus are still lagging behind other competitors such as PUR.
Secondly, it was observed that Brita has been unable to retain its existing customers for long-term. In other words, the leakage of customers is a major issue to be dealt with as the customers are unsure about the use-full life of the product. Even though a lot of work was put in to educate the customers about the issue, significant changes in customer retention is yet to be observed.
Thirdly, Brita has been unable to take introduce significant innovations into its flagship product, the Pour-through (PT) filters. With the entry of Faucet-mounted (FM) filters and bottled water into the market, the market for Pour-through (PT) filters has remained stagnant for the last few years. Even though R&D has been able to improve the level of impurity removal, significant breakthroughs are not yet observed which has meant that Brita has been unable to make expected profits from its flagship product.
Fourth, the high potential for bottled water has resulted in an intense competition among all competitors in terms of market-share. This has also resulted in lower demand for other type of products such as Faucet-mounted (FM) filters and more significantly for Brita, the Pour-though (PT) filters. Although, Brita has put in significant efforts to create awareness among customers about the possible ill-effects of bottled water, there has been no observed change in customer perception regarding bottled water and it is still a growing market, which Brita has been unable to cope with.
Main findings of the consumer review and segmentation study:
Since 1999, when Brita’s sales suddenly and unexpectedly started to decline, Brita had employed a number of strategies to pick up its sales volumes which met limited success. It had been difficult for Brita to identify its target consumer base and consequently it had been unable to understand what the consumers wanted. Hence, to tackle this problem, a consumer review and market segmentation study was performed and some interesting observations came out of the study.
The study was conducted across 2,003 respondents of which 1,622 were filtration system owners and 381 non-owners, the age-group was between 18 and 65. This sample was evenly divided by gender and respondents were identified as water drinkers if they had consumed water at least twice in the week prior to the study.
One main message that came out of the consumer review process was that consumers were aware that the quality of water in filtration systems was much better than tap water. They knew that drinking water was good for them and drinking tap water wasn’t...