Coca Cola is one of the most famous companies in the world. Now that this spectacular growth had leveled out, the company is striving for future growth opportunities for their drinks businesses. Bottled water was earmarked as the next big event in the beverage industry, and the avenue for future growth.
Dasani, one of the Coca Cola’ brands, had initially developed in the United States in an effort to capture the lucrative bottled water market. In less than twenty years, the bottled water market has undergone a remarkable transformation. Previously people only drank bottled water because of the fear of contaminated tap water. Now people are consuming large volumes of bottled water as the drive towards a healthier lifestyle continues (Anonymous, 2008). The marked success behind these bottled water brands is due to the links with absolute purity, and the association with an active and healthy lifestyle. Since its inception, the brand had achieved tremendous sales growth in its domestic US market, fully utilizing Coca Cola’s powerful distribution system. Based on this success, Coca Cola decided to launch the brand in continental Europe, firstly in the UK, and then rolling it out to other countries. Dasani, a “pure” still water was launched in the United Kingdom in February 2004, with a huge promotional budget. But when it hit the British market, it promptly suffered a major public-relations disaster. Therefore, it failed in the UK market in 2004. Four years later, the Coca Cola Company intends to enter into the UK market again (Anonymous, 2007).
So, in this essay, we are determined to analyze the essential situation of the case study of Dasani. On base of the analysis of Dasani and its target market in the UK. We will utilize useful global marketing strategy theories, concepts and market entry strategies to refer to our some available recommendations and suggestions to Coca Cola, and they will offer some references to the entrance into the UK market for Dasani.
2. The strategic analysis of Dasani and the opportunity in the UK
2.1 The strategic analysis of Dasani in the UK
Dasani, as a brand of Coca Cola, in the US has achieved enormous success for a relatively new brand. Coca Cola’s huge marketing muscle and extensive distribution network ensured this success. In the US, this brand of purified “tap” water with added minerals, sat beside natural spring waters from mountain peaks on shelves, and still won over customers(Vomits, Demetrius; Sharp, Iain., 2003). The UK was chosen as the launch pad for Dasani in Europe. The big players in bottled water see the UK market as still ripe for exploitation. The annual consumption of bottled water per capita in several nations as follows (Figure 1).
Figure 1 the annual consumption
[pic] Source: (Conor Carroll 2008)
From the histogram, we can see that the annual consumption of bottled water per capita in the UK is smaller than other nations, therefore, there are many opportunities for Dasani’ access to the UK market.
2.2 The opportunities for Dasani in the UK
Before Decani’s expansion in Europe, Coca Cola Co. has achieved massive success in the USA, so according its experience, there must be many opportunities and will make a great success in the world market.
2.2.1 Opportunity one: The influential international brand recognition and strong overseas expansion skills. In the world, Coca-Cola is the strongest soft drink company, almost every people drunker are drinking Coca-Cola, and thanks to its good quantity it wins widespread praise. At the same time, Coca-Cola has a strong financial strength; it will provide a good economic base for the expansion of its overseas market. For it keeps an increase of sales growth and net income growth form 2004 to 2006(Figure 2).
Figure 2 the sales income and net income (2004-2006) Unit: millions of dollars...