Coca-Cola is one of the most enormous conglomerates in the globe. The company is multinationalin its functioning and has successful branches around the globe. The multinational is the world’s leading non-alcoholic beverages manufacturer anddistributor. The company’s headquarters is in Atlanta, Georgia. The new product is Bubble-tea, a ready to drink tea which will be marketed through the name “Bubble Buzz”. Ingredients of Bubble Buzz include green tea (primary ingredient), lased with different flavors which will cater for different customer preferences. The target country is the United Kingdom where food anddrinks industry is the most profitable in the country. This paper will analyze the UK market for Bubble Buzz, offering the company advice on how to undertake its marketing strategy.
- Socio-cultural forces
The UK is one of the most culturally diverse countries in Europe. The country has people from different races and cultural backgrounds. As such, people have different affinities for different products. However, unlike the US, the country is more engrained in drinking coffee than tea. According to statistics, people in the UK take 60 billion cups of tea annually, way more than the nearest non-alcoholic beverage. As such, culturally and socially Bubble Buzz is bound for success
- Economic forces
In 2004, the functional drinks segment in the United Kingdom reached 342.2 million. All these were the result of 125.9 million liters consumed. In 2015, tea occupied a market share of 14.3%, only eclipsed by softdrinks with a market share of 56.5%. In addition, the sector has seen a consistent increase of 13.5% per year, since the beginning of the recordings in 1999(distribution of non-alcoholic sales values in the UK 1). It is also vital to note that the drinking trend of non-alcoholic drinks is changing especially in the UK with people diverting from the traditional drinks to healthier beverages. Of these beverages, tea is one of the larges growers illustrating the benefits of focusing on green tea by Coca-Cola. The trend has shown a decrease in sales for carbonateddrinks.
The United Kingdom is one of the most technologically progressed countries in the world. As such, the nation is well affiliated with technological methodologies that can be utilized in marketing Bubble Buzz. The country has huge number social media utilizers. As of 2015, the UK has 14 million people who have Instagram accounts. In addition, 30 million and more people utilize Facebook in the UK(Social Media users in the UK 1). Also, methodologies to ferry and supply the green tea are in place due to the technological force in the country.
- Competitive forces
The United Kingdom has over 8000 non-alcoholic beverage companies(Food and drink Investment opportunities in the UK 1). The huge number of companies illustrate the competition is steadfast. In addition, the company has to face the member of the global oligopoly that deals with such products. Such companies like Pepsi are also delving into healthier drinks. In addition, the company will face huge competition from tea processing companies in the UK. The companies that produce the traditional tea are numerous in the United Kingdom. However, the company is in a unique position as it will be the first producer of green tea in the country.
- Regulatory forces
Like every other nation in the globe, the United Kingdom has strict rules and regulations on the sale of food anddrinks. For Bubble Buzz to set foot in the country, the company must ensure the drinks meets the standards required the British government and the European Union. The regulations control the ingredients, processing methodologies and the marketing strategies of the company. It is vital for Bubble Buzz to meet the set regulations.
For the product to experience success in the UK, it should succumb to the following steps
The product will be designed to cater for all economic levels in the UK. It will also carry the Coca-Cola brand. Because the product is mainly targeting the middle class levels of society and the working class. It will be packed in satchels that are affordable to these economic levels. The company will also introduce stalls and restaurants where people can get the tea. It will also sell Bubble Buzz through retailers
Pricing of the product will depend on several important aspects. In consideration will be the consumer demand, the substitutes that will exist and the product lifestyle. How the consumers will demand Bubble Buzz will be vital in analyzing the conducive price to charge. The monopolistic market of the mother company will also affect the pricing(Rizvi 78)
Bubble Buzz will mainly be sold in the cities and towns as this is where the largest target market of the product dwells. The working and middle class are mostly located in the cities.
The promotion strategy will adopt different dynamics which include, appropriate media selection and specified advertising. It will utilize avenues like the internet, televisions, radios and billboards to get the product across to consumers.(Bhuyian 750)
Bhuyian, N. “A framework for successful new product development.” Journal of Industrial Engineering and Management (2011): 746-770. document.
“distribution of non-alcoholic sales values in the UK.” 28 June 2015. Statista.com. Web. 23 April 2016.
“Food and drink Investment opportunities in the UK.” n.d. GOV.UK. Web. 23 April 2016.
Rizvi, Qamar. “Going International: A Practical, Comprehensive, Template for Establishing a footprint in Foreign markets.” May 2010. Ivey Business Journal. Web. 23 April 2016.
“Social Media users in the UK.” n.d. Statista.com. Web. 23 April 2016.