Brita Marketing

content Introduction1 background1 Situational analysis1 P. E. S. T. L. E Analysis2 S. W. O. T Analysis3 hall porter tail fin Forces Analysis3 s.t.p. Analysis4 Possible Options Available5 Do nothing5 sleep with decline5 Develop and work through a selling scheme for evolution5 Short shape flourish be commercialiseplace5 Long boundary subjoin securities industry place Shargon6 windup6 Introduction This document represents The i-Fusions consultants Report on BRITA. The social clubs original stage business emplacement is analysed and diverse options for action checked.The writing aims to let proscribed a abstemious food grocerying dodge for Brita in order to address the stream issues facing the ph iodiner the associated f in alling sales. The report is broadly comprised of cardinal main sections 1. punctuate 2. Situational Analysis 3. Options open to Brita 4. Recomm conclusioned Strategy Background Brita, after an extended s go acrosspage of suprem acy and dominance in the filtered wet foodstuff is facing increasing competition, parvenu foodstuff entrants and locomote sales. After various failed initiatives to arise the resultant decline, the comp whatsoever is seeking a new strategy that ordain revivify double-digit ontogeny.History In wrong of merchandise history, Brita has been very fortunate with 2 line body of wet filtration outputs, mounds and Faucet jumped filters. On ingress the filtration pitchers, initial efforts to build awargonness and construct a merchandise were successful, teaching consumers the benefits of filtered pissing and creating sentiency. Subsequent efforts to develop and broaden the commercialise based on hold were as well as successful ( tippytoe pissing Transformed campaign). Brita was the commercialize leader for many years and defended that foodstuff sh atomic effect 18 successfully for nearly time.However, the market is now made up of much than 70 competitors and much recent strategies are failing to deliver crossroad and moolah and Brita sales are now genuinely falling. Situational Analysis The documentation provided whoremonger serve in identifying various problems. The key business issues identified by i-Fusions are * Brita failed to blemish and correctly identify the competitive market they are in * Brita were besides loath to innovate and more than(prenominal) agile competitors direct entered the market and puddlen share * The company reaction has been overly product- cogitate Brita has considered and/or launched various reactive advertising campaigns based on competitor action, rather than considering a holistic marketing strategy built on market abstract. * Britas organisational structure is top-heavy with multiple reporting lines and no clear chain of responsibility. The result is a leave out of clarity as everyone is responsible except nobody is responsible. * The net result of all of the above is that Brita sales are falling. P. E. S. T. L. E Analysis Political There are no solid external policy-making issues affecting Britas business.Economical The Economy during eighties & 1990s showed no indications of recession and the development of the Internet and the evolution of the global parsimoniousness generated unprecedented economic prosperity in the United States that lifted consumer purchasing causality to let out standards. The mid-2000s attach the end of this boom cycle and the economy is set-backing to contract. Social The primary social trends in the late 1980s and 1990s, as confront by Brita were * People shifting towards a more healthy lifestyle * Workers on the job(p) longer hours to gain more profits Shift of workforce from Agriculture to industriousness & IT Sectors Technology The beginning of the 1990s marked the beginning of the Internet revolution and this has unnatural peoples lives and lifestyles signifi posteriortly. The impact on business is that chats are instant(prenominal) and customer expectations are for a more personalised admission (e,g, Emails, Mobile Phones etc). intelligent During 1980s & 1990s, Public weewee hygienics laws & regulations were not enforced effectively to frustrate peeing-borne diseases outbreaks that occurred during that period of time.During the 12 year period (1991 2002), Public Water contamination outbreaks came from fellowship & non-community weewee supply (78%) compared to 22% from individual(a)/individual urine supply systems as report by the Journal of Water and wellness published in 2006 environmental During the late 1980s and 1990s, Environment gracious organisations & NGOs ( much(prenominal) as Greenpeace) were not creating an influential awareness of foxing urine health issues. As a result, people were not possessing self-awareness of dangers change to drinking impure & contaminated pissing. Porter Five Forces AnalysisRivalry The market is very competitive and the threat of competit ion is noble. Many companies are present and they are more successful than Brita. It seems to appear a rivalry two in terms of product and muddle Barriers to Entry The entry barriers in the market are relatively low, making it palmy to access. However, as the market is saturated it could be marvelous for new companies to decide to start new enterprises in this field. Threat of substitutes This represents one of the main threats for Brita. Both tap urine and soft drinks are potential substitutes for the product that Brita offers.Supplier power The suppliers do not pretend a major role for Brita growth. The product offered is relatively simple and its components are light to procure. Buyer power The consumers strike a high decision power which can drastically affect the performances of Brita. Depending what type of drink they decide to consume (filtered weewee, tap water or soft drinks), the sales entrust increase or decrease. The Five Forces analysis tool highlights that Br ita has to focus its attention on what consumers want in order to make success (appendix A ).The product is uncomplete significantly unique nor essential to encounter success on its own and taken in the context of a commodious number of substitutes, consumers then hold significant purchasing power. Simultaneously, Brita has to take in musing the highly competitive nature of the market. If Brita does not update its product benefits, and then bewilder themselves in such a central point that they offers customers a unique benefit opposite number competitors, it is in all likelihood further lose market share. Therefore, customers and matching their lifestyle choices should be the focal point of Brita strategy if double growth has to be gained.S. W. O. T Analysis STP Analysis Segmentation Using behavioral Segmentation, i-Fusions have considered 6 predominant market ingredients. See Appendix B and C smash Traditionalists Slow to change, like the devisal and cheapness of tap water. Weary Tap Users Low involvement in their water drinking decisions. Like tap water and unlikely to change. They are also the lowest consumers of total water per day. Principled filtrate Fans High involvement in their water utilization decisions and intend filtered water is more healthy. blotto Fridge Fans Highly involved in their water consumption decisions and associate water with health and weight control. Assertive ego Improvers Highly involved in their water consumption decisions and drinks a lot of water for health. This group has the highest overall daily use of water and drinks most of their water at folk. Bottled Water Indulgers Highly involved in their water consumption decisions and use bottled water as a reward for effort. They are highly attached to bottled water. Of the 6 categories of consumers, 3 have been pointed as the target market PFF, ASI and AFF.Target Market Analysis In terms of water consumption patterns, tap water is still the most utilised (35 . 4%) with filtered water also popular (33. 3%). Bottled water is increasingly popular and before long holds 21. 7% of the market. See Appendix D The main perceived issues customers have with Tap Water are Quality and Port readiness. close to consumers believe that using water filters improves the taste of the waterand using fridge filters makes it more convenient to consume filtered water. Out of a total of 59. 6% people owning the Pitcher fall into place system, 50. % own the Brita product stand up higher in comparison to the PuR Product. Brita faces some perception challenges as the Faucet Mount and Pitcher do not shortly have any stand out features for customers and the Filtering Pitcher is seen as time-consuming and little simple when compared to Bottled water. In terms of well-behaved flavour of the water, 77% consumers support BW whereas only 32% support Pitchers. In terms of pureness, 63% consumers support BW and 44% consumers support Pitchers. Positioning Analysis Bri ta has strong strike out recognition and is before long viewed in the key segments as a healthy water option.There is a trustworthy customer base dedicated to filtered water which represents a growth opportunity if Brita can occupy the changing consumer postulate. i-Fusions would therefore advise that Brita builds on this spot strength with a marketing strategy that highlights health and health and sustainability and believes that Brita has strong advantages over its competition to cope with these targets. Possible Options Available Brita faces a severe market and there are three broad business options they can consider. 1. Do nothing 2. bear away decline 3.Develop and go through a marketing strategy for growth Do nothing i-Fusions recognise that at times it may be acceptable for firms to take a wait and see admittance to their business but we do not barrack this as a unravel of action to Brita. The risk of inaction is too great in a market with such high competition and falling market share. Britas cautious approach to date is reflected in their current situation. Manage decline Brita could get across with their current accent on pitchers and faucets and manage decline mooring costs acutely as sales fall.It is the view of i-Fusions that, given the high number of competing defacements, there is a risk that adopting any low cost/low damage strategy would merely lead to a race to the bottom. In any case, Brita is unlikely to be able to undercut its smaller, more nimble rivals due to its size and structure. specially, this strategy does not fit with the stated need for double-digit growth. However, the current product motley and their current specification are in the be on stage of the product life-cycle so Brita needs to seek ways to add encourage to maintain current sales and to consider new products to drive growth.Our recommendations are therefore predicated on the value that the brand has in the eyes of its customers and to leverag e the reputation for role that the company has built up. Develop and implement a marketing strategy for growth The advice of i-Fusions is for Brita to follow a growth strategy, focused on meeting the needs of key identified market segments with clear product offers, consistent put across, via the optimal distribution carry and at the appropriate price. Short term Expand real marketProduct Existing users Brita should aggressively target existing filtered water users (Principled Filter Fans and Assertive Self Improvers) with Pitchers and Faucets with improved ability to remove impurities and taste. Brita should therefore focus R&D effort on astir(p) the purity capability of its filters, reinforcing the key brand messages of health and purity. Price find existing pricing strategy Place Brita should continue with the hoi polloi distribution strategy as changes in the past have right away translated in lost sales.Promotion Find new uses Brita can create new uses of existing pr oducts through promotion of additional activites such as using filtered water for cooking, an drill that is important to key segments Strong atomic number 53 brand messaging around Health/Purity/Sustainability using a mix of targeted TV and radio, social media, lifestyle magazines (home, food, well-being), demonstrations and sense of taste instore and at gyms/yoga-chains etc Brita is in a emplacement to add complementary messaging around its green/sustainable credentials, which fits with target segment values and has the additional benefit of orbit other segments in the water consumption market. Long term Increase Market Share Product Change product mix in the longer term. Brita should intuitive feeling at expanding its product mix to better meet the behaviour patterns of its identified segments.For example, underdeveloped a filter for fridge water dispensers is highly advisable. Form alliances i-Fusions strongly recommend that Brita forms strategic alliances with quality w hite goods manufacturers in order to jointly develop a product that meets the needs of the key market segments identified. It is recommended that quality brands are identified and targeted in order to maintain Britas brand image and support the growth strategy. Additional alliances with yoga-chains/gyms for joint marketing opportunities should also be explored. Finally, alliances with home-builders/plumbing providers was considered as an option but i-Fusions do not recommend this for Brita as it is effectively a new and very different market.Price Reduce costs learning on reducing overall upper-case letter costs is scarce but drip on R&D is likely to increase in the short/ fair term. In terms of Fixed Costs, Brita should come off its organisational structure, both to clarify reporting lines and deoxidize management overhead. Finally, it would make sense for Brita to have a single brand, with clear associated brand messages, managing their product lines within that brand. Promot ion unexampled users Brita should aggressively target consumers in the Affluent Fridge Followers category, given the high consumption of water at home and their fit with the key Brita health messages. Maintain green credentials with targeted messaging.Place Brita should continue with the mass distribution strategy as changes in the past have quickly translated in lost sales. People Brita should implement clearer communication channels with clearly identified lines of authority. Conclusion On analysing the information available i-Fusions believe that Brita needs to refocus its attention on the market, using short and long term strategies that target appropriate segments with specific products, messaging and distribution channels to best meet their requirements, aspirations and life-styles. We believe that the marketing strategy recommended will assist in driving double-digit top line growth.