Brita Marketing

Topics: Drinking water, Marketing, Water supply Pages: 8 (2269 words) Published: November 29, 2012
Situational Analysis1
P.E.S.T.L.E Analysis2
S.W.O.T Analysis3
Porter Five Forces Analysis3
STP Analysis4
Possible Options Available5
Do nothing5
Manage decline5
Develop and implement a marketing strategy for growth5
Short term - Expand existing market5
Long term - Increase Market Share6

This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales. The report is broadly comprised of three main sections:

1. Background
2. Situational Analysis
3. Options open to Brita
4. Recommended Strategy

Brita, after an extended period of success and dominance in the filtered water market is facing increasing competition, new market entrants and falling sales. After various failed initiatives to reverse the resultant decline, the company is seeking a new strategy that will restore double-digit growth.

In terms of product history, Brita has been very successful with 2 key water filtration products, Pitchers and Faucet Mounted filters. On launching the filtration pitchers, initial efforts to build awareness and create a market were successful, teaching consumers the benefits of filtered water and creating awareness. Subsequent efforts to develop and broaden the market based on taste were also successful (Tap water Transformed campaign). Brita was the market leader for many years and defended that market share successfully for some time. However, the market is now made up of more than 70 competitors and more recent strategies are failing to deliver growth and profits and Brita sales are now actually falling. Situational Analysis

The documentation provided can assist in identifying various problems. The key business issues identified by i-Fusions are: * Brita failed to recognise and correctly identify the competitive market they are in * Brita were too slow to innovate and more agile competitors have entered the market and taken share * The company reaction has been overly product-focused

* Brita has considered and/or launched various reactive advertising campaigns based on competitor action, rather than considering a holistic marketing strategy built on market analysis. * Brita’s organisational structure is top-heavy with multiple reporting lines and no clear chain of responsibility. The result is a lack of clarity as everyone is responsible yet 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 significant external political issues affecting Brita’s business. Economical: The Economy during 1980s & 1990s showed no indications of recession and the emergence of the Internet and the evolution of the global economy generated unprecedented economic prosperity in the United States that lifted consumer purchasing power to better standards. The mid-2000’s marked the end of this boom cycle and the economy is starting to contract. Social: The primary social trends in the late 1980s and 1990s, as faced by Brita were: * People shifting towards a more healthy lifestyle

* Workers working longer hours to gain more salary
* Shift of workforce from Agriculture to Industry & IT Sectors

Technology: The beginning of the 1990’s marked the beginning of the Internet revolution and this has affected people’s lives and lifestyles significantly. The impact on business is that communications are faster and customer expectations are for a more personalised approach (e,g, Emails, Mobile Phones etc). Legal: During 1980s & 1990s, Public Water Hygiene laws & regulations were not enforced effectively to prevent...
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