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A Marketing Strategy for Brita
Introduction
This essay will discuss the broader marketing environment including PESTEL factors, before the narrower tactical issues contained in the marketing mix.
PESTEL Factors
This section will consider the political, economic, social, technological, environmental and legal factors relevant to BRITA. The political factor is that government regulation will make sure that water is safe for human consumption. Large scale water purification facilities have been built to achieve this objective. These facilities provide the baseline quality for tap-water. Brita’s filtered water will be compared against this baseline standard. The slow growth in the British and other economies may lead to a reduced willingness to pay for water filtering cartridges, such as those manufactured by Brita. Therefore, Brita may need to reduce the prices of its products to maintain demand.
The poor state of the economy may be offset by increasing consumer concern over water quality. There could be a social awareness that could lead to a greater demand for filtered water. Affluent consumers may be more aware of water quality through traditional or newer forms of social media. This is a technological factor which is affecting the market for filtered water. Another technological factor is that Brita has a research and development unit which will increasingly work to higher specifications to remove more impurities for private consumption. For example Paavola states that there is a “need to focus more on removing taste violators” (2007:8).
The possible increase in environmental contaminants could be another reason for an increase in demand for filtered water. Ecological concern over the use of plastic bottles, for bottled water, could also make water filters more attractive to consumers. A legal factor could be that Brita filtered water, legally, would not meet the standard of a large scale water purification facility. Filters may be able to improve on domestic tap water. However, it cannot improve on large scale purification. Therefore, some consumers, such as ‘tap traditionalists’, think that filtered water is unnecessary Paavola (2007:15). The factors here which affect demand for filtered water will have implications for the industry’s structure.
Porter’s Five Forces
This analysis can help determine where Brita has competitive advantage in its (water purification) market.
New Entrants: The paper suggests that many new entrants into the filtered water market have since left the
industry which has left the company in a stronger position.
Power of Suppliers: Brita will have to pay for the components in its filters. However, it is a strong brand name, with relatively few
competitors, so the power of suppliers should be limited.
Threat from Substitute Firms: The threat from substitute firms is serious, as the paper argues thatProctor and Gamble has been a significant competitor in the filtered water market. Another significant problem is that substitute firms are not just in the filtered water market, but also in the bottled water market generally. Many soft drink companies have their own bottled water brand. Therefore all of these companies can be seen as ‘substitute firms’ for Brita’s filtered water. The level of competition and competitive rivalry is therefore significant. However, an understanding of this high level of competition should help Brita plan its strategy. It needs to defend itself against all bottled water products and not just filtered water products.
Ansoff’s Matrix
If it is assumed that Brita is not going to implement a diversification approach with a new product in a new market, then there are three options available. First there is market penetration. Brita could try and promote or reposition its products. There may be some scope for doing this. However, the paper suggests that there have been problems within Brita’s market and therefore it needs to offer a more radical approach than just greater market penetration. The company could extend the product into new markets. Brita could sell its products, into newly industrialised countries, where there is increasing affluence and where there could be more demand for its goods. Brita could develop a new product, or rather a modified product. The company could attempt to increase sales by introducing a modified product into the market which could be a simpler and clearer filter. Steps have already been taken to produce a simpler and clearer device. For example, a “start button” was introduced with “a new filter” to “indicate when the filter needed replacing” (Paavola (2007:5). This argument demonstrates the importance of the product component in Brita’s marketing mix.
The Marketing Mix
The price of Brita products is relevant because it generates revenue for the company. However, although the company may want high profit margins; it may need to reduce the prices of its products so that it can obtain a larger market share. Moreover, the company needs to clearly demonstrate that its products are cheaper than competitors who sell bottled water. The price level has been based on the socio-economic characteristics of the consumers. Brita has targeted the premium segment of the market, with sales being made to affluent consumers who are “affluent” and “principled” (see page 15). The product element of the mix needs to be that the product is easier to use; as stated above. The promotion would need to reflect that the company is selling an easier to use filter and one which is cheaper than bottled water. The place element of the mix could be to sell into Newly Industrialised Countries.
Maslow’s Hierarchy of Needs
Brita wants to sell its goods, so that its customers link the product with status. The purchase of the product should confer status upon consumers. Brita developed an emotive advertising campaign which attached emotions to the filtered water. The filtered water could lead to a feeling of achievement; that the consumer has achieved good health; see level four in the figure below.
Diagram to show: Maslow’s Hierarchy of Needs
Conclusion
A marketing approach should focus on an easier and simpler product. This assumes that such improvements in ease can be made. The product should be cheaper to widen the appeal of the good and encourage consumers to try the product. The environmental benefits of the product need to be emphasised. This is important in differentiating filtered water from bottled water. Emphasis on the health benefits of filtered water may not work. This is because bottled water shares similar health benefits.
Recommendations
This section will offer some recommendations in terms of what the marketing strategy should be.
1) Brita needs to widen the market with an easier filter product, so that the company can attract people who want the simplicity of bottled water. The capacity of the filter cartridge could be larger so that it needs to be changed less often. This would make the product easier to use over time.
2) It could sell the pitcher at a much cheaper price unit; like a cheap computer printer. Brita would want to convey that its products are cheaper than bottled water. It could then sell the filter cartridges, like printer cartridges, once the consumer has been encouraged to buy the original pitcher.
3) The environment aspect of PESTEL stated that there were environmental concerns with bottled water. Plastic bottles were sent to landfill or incineration. Brita could present its filters as environmentally acceptable as they could avoid the waste associated with plastic bottles. However, if Brita wanted to be perceived as environmentally acceptable then it would have to consistent. Brita would need to make sure that its filter cartridges were able to be recycled. The bottles and the pitchers would also need to be recyclable.
4) Brita needs to try and compete with bottled water better. It needs help from convenience store retailers, to achieve this aim, with the use of prominent display materials on the shelves. These displays would highlight the choice between bottled water and filtered water. Brita would want to emphasise the environmental attributes of its products in shops.
5) Promotional material should be focused on affluent families, with children, who have the money and the concern to buy filtered water products. An appropriate approach could be to target families with joint incomes above £50,000. Brita may want to work with premium grocers such as Waitrose.
Further Questions
Who are the target consumers and what drives them to our category?
Relatively high income consumers who can afford the product are target consumers. Customers who are interested in environmental concerns will tend to buy the product especially if they also have health concerns.
What business are we really in, i.e., how broadly or narrowly should we define the category?
The category needs to be defined broadly to cover all types of bottled water.
What should our brand promise be in order to be differentiated and sustainable?
This brand removes the most impurities of any private water filter device.
Can our current product deliver on this promise?
The product can deliver on this promise if the research and development capability is maintained to industry leading standards.
Do we have the R&D capability to deliver on it?
This can be achieved if investment in the research and development capability is maintained and improved as stated in the last question.
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