The United Kingdom Beverage Market Essay -- Business and Management St

The United Kingdom Beverage MarketINTRODUCTIONArmstrong Corporation is a food productions manufacturing company, withproducts which include ready-to-eat cereals, frozen pies, snack itemsand carbonated beverages. Funky-Cola is the flagship brand of thecarbonated beverage division. Our company has decided to introduceFunky-Cola to the United Kingdom beverage market. In this paper, themarket potential and opportunities of the country would beinvestigated in order to affirm our decision to go in into the UKmarket.Funky-Cola has been doing very well in our Malaysian market. Ourcompanys sales in the year 2003 amounted to over RM2 billion, withFunky-Cola contributing 25% of the overall revenues. Because of thisstrong performance, our company believes that Funky-Cola has thepotential to be successful in a impertinent country. We have pooledtogether our companys resources to make a thorough research on the UKmarket and the R&D department is working towards extending our productline in orde r to adapt to the countrys market.With our successful past performances, we believe that our company hasenough resources, in terms of capital and managerial expertise, toform a wholly owned subsidiary company in UK. This subsidiary companywould mainly produce Funky-Cola for the UK market. COUNTRY ATTRACTIVENESSOur company chose to enter the UK market because of its potentials andopportunities. According to a research, the market for the drinksbought by Britons is worth an estimated 51.85 billion in the year2004, which makes UK the worlds tenth biggest cola market. Theresearch besides revealed that 7.2% of all consumers spending are spenton purchasing drinks and Britons drink 130 cans of soft drinks or43litres per year. However, Britons are moving towards consuming different resistant ofdrinks, such as squashes, diet colas, energy drinks, tea and soforth. There is also a new breed of health conscious male consumersin the UK. This was due to the increased focus on obesity by thegove rnment and media. Therefore, Britons have decreased the frequencyof consuming cola drinks. Our company sees this as an opportunity torevive the cola market by producing fusion drinks which combines thetraditional cola with the new preferred drinks of Britons. This wouldsatisfy the UK consumers need to stay healthy, and at the same time, keep on to enjoy the great taste ... ...cost differentiationstrategy. From research, the standard cola price in retail outletsare as followa) 330ml can - 0.39 Our price - 0.30b) 2litre nursing bottle - 1.32 Our price - 1.25c) 1.25litre bottle - 1.09 Our price - 1.00REFERENCESRed Bulls Place in the UK Soft Drinks Markethttp//www.bized.ac.uk/compfact/redbull/redbull11.htmBBC News BusinessCola Sales assemble to Lose Sparklehttp//news.bbc.co.uk/1/hi/business/3121690.stmCoca-Cola Britain Using Market Research to Develop Product Rangehttp//www.thetimes100.co.uk/case_study.php?cID=3&csID=108&pID=1 forage Soft Drink Battle Heating Up in UKhttp//www.bev erageworld.com/beverageworld/index.jspDrinks Market UK Beverage Market Research from Key Notehttp//www.just-drinks.com/store/products_detail.asp?art=32671&lk=rotw_archBirmingham Wikipedia, the waive Encyclopediahttp//en.wikipedia.org/wiki/BirminghamUnited Kingdom Wikipedia, the Free Encyclopediahttp//en.wikipedia.org/wiki/United_KingdomWest Midlands Directory of Health, Sports, Fitness & Leisure Clubshttp//www.health-club.net/w-midlands.htmSainsbury to You Price Checkhttp//www.sainsburystoyou.com/index.jsp?bmUID=1115818459144