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Brita: In Search of a Winning Strategy

1. Critically examine the strategies followed by brita from 1999 to 2006 to understand problems faced by
Brita?
Strategy 1: Beverage vs. Appliance
Brita realized that the category of filterization units has reached maturity due to increase in variety of options available;
thus there was a need for differentiation of the products not only among the category but also from the larger
beverage category. The focus should be on R&D to deliver a series of new products that can reinforce the brand
position. Pitching it as a healthy lifestyle drink wouldve been general advertising for filtered (bottled or otherwise)
water which would differentiate it from the rest of the beverage sector, but would do nothing to differentiate it from
other filter products/bottled water.
Strategy 2: Brita Vs. Bottled Water
Bottled water consumers valued convenience and time, and perceived bottled water to be better in terms of flavour,
purity, and price. Thus, the value proposition should have targeted these characteristics instead of the notion of
bottled water taste without the bottle.
Strategy 3: Retaining Customers
Brita customers often lapsed in changing the filters as they could not understand volume of use after which they must
change it. Brita recognized that this was an issue, but proceeded to provide a solution which was not related to
volume of use hence rendering the innovation useless in the mind of the consumer. Visual indicators thereafter did
not work either, perhaps because the customer did not perceive the value derived from these.
Strategy 4: Transform the taste of tap
The strategy aimed to enhance the doubts consumers had about the safety of drinking tap water. Brita wanted to
capitalize on the fact that consumers associated good taste with healthy water. Though it seems like a good way to get
to consumers who are conscious of their drinking water, the management did not feel so.
Strategy 5: Brita Vs. Bottled Water, Round 2
Brita tried to advertise to users of Bottled Water and talk about the former being the easier and cheaper alternative,
which did not work. This is because the ease for these users probably comes from the portability of bottled water.
Furthermore, consumers might not care to calculate actual spendage on bottled water over the years as compared to
a one time cost for a filteration unit, to compare costs properly. The strategy failed, thus, because the customer did
see value.

2. Which segment to be targeted by Greg frank?


The segment that should be targeted is Principled filter fans which constitutes 17.4% of the total population.
Pitcher & Faucet Mount users together in this segment are around 67% and also constitute 83% of the total
users.
Their tap satisfaction index being the lowest offers the right target segment for the values offered by brita.
This segment includes comparatively younger population, hence, it ensures long term growth of the company
Also, low percentage of people (26.2%) owning faucet mount system it gives untapped target population of
(73.8%) being market leader in this segment with 60% share it is easy to increase the share

3. What criteria would you use to identify the target segment?


In identifying the target segments, it becomes clear that there are two possible criteria: choose where one is strong or
choose where there is maximum potential for growth.
Strong Hold
Drive filter sales
Encourage current users to replace their pitchers
Maximum Potential for Growth

Technological leadership
Protect filter annuity from universal filters
Invest in new products or current line?

Brita: In Search of a Winning Strategy

The choice of criteria depends on the objectives of the company, clearly pushing the choice of segment in the direction
of the segment with maximum headroom.