Coca-Cola’s Dasani in UK

AGENDA

1. The history of the public relation Fiasco (2004, UK)

2. Dasani nowadays

3. Dasani portfolio

4. UK Bottled Water Market

1. Market Analysis

2. Consumers Profile

3. Competitors Analysis (Direct and Indirect)

5. SWOT Analysis

6. Time for reflections…

7. Our solution

The history of the public relations Fiasco (2004, U.K.)

1990’sChanging of consumer habits: healthy conscious

1999Launch of Coca Cola’s Dasani in U.S.A., to compete with PepsiCo’s Aquafina

10th February

2004Launch of Coca Cola’s Dasani in U.K. and starting of the controversy

18th March 2004Discovery of high levels of bromate in Dasani bottles

19th March 2004Recalled of 500,000 Dasani bottles in circulation, what hindered the plans to expand the brand to France and Germany

Dasani nowadays

TargetYoung Adults - 20 to 30 years old- Technology enthusiasts- Importance of portability of

the bottled water

Green Consumers- Choice of environmentally

friendly products- Preference for durable

products

Dasani in the World34 countries: U.S.A, Latin America, Canada…

Dasani Numbers- Coca-Cola is the 3rd

biggest bottled water supplier, with brands like Dasani

- Dasani is the 3rd biggest bottled water brand in the U.S.A, after private labels and Nestlé Pure Life

- Sales of 0.9 billion dollars in U.S.A, and a growth of 36% compared to 2012

(Source: Beverage Industry Magazine; IRI)

PositioningDasani is the bottled water that gives you a pure fresh taste, with a clean, fresh style.

Dasani Portfolio

Dasani FlavorsNatural fruit-flavored water beverages

PlantBottleLaunch of the PlantBottle, a fully recyclable bottle made from up to 30% plant-based plastic

Dasani TwistA bottle that can be twisted down to half of its original size

Dasani DropsLaunch of Dasani Drops, a concentrated flavor enhancer to add to water bottles

Dasani WaterPurified Still Water, “enhanced with minerals for a pure, fresh taste”

Marketing Auditing

UK Bottled

Water Market

Market

Analysis 2 segments in bottled water market: Still water and Sparkling Water

3 sub-segments in still bottled water market: Mineral water, spring water, purified water

Water consumption: Comparing with other packaged drinks, packaged water has the highest consumption (44.4%)

Source: European Federation of bottled waters, UK 2012

Top 3 Competitors: Highland Spring, Evian and Buxton

Sales of £1.5 billion in 2012 Expecting sales of £2 billion in 2016 £549 million revenues in 2012 Growth rate of 0,4% since 2009 to 2014 48 Businesses and 610 employed people

Sources:The Guardian, 15th April 2013

Bottled Water Production Market Research Report, Ibis World, Jul 2013

Consumers

Profile Is the richest 10% that the

most drink bottled water

Britain consumes 3 billion liters of bottled water per year

Sensibility to the price = Growing of multipacks and bigger volume packs sales

Bigger concern about health and environmental issues

Support of the home-grown brand = purchase of more local (British) bottled water products

Sources: Environmental Technology Centre, University of Nottingham

Sustainable Practices Research GroupYahoo Finance News UK & Ireland

Competitors Analysis

Direct Competitors

Company name: NestléTarget : Families and healthy conscious consumersPositioning: Quality you can trust, at an affordable priceTagline: Drink better. Live better.

Company: Highland SpringTarget: 05-45 M/FPositioning: Perfect and pure Spring waterTagline: Full of the joys

Company: DanoneTarget : 20-45 M/FPositioning: Extremely pure and distinctly differentTagline: Fills you with Volcanicity

Competitors Analysis

Indirect Competitors – Spring and Mineral

Company: NestléTarget: Young, urban and activePositioning:  Natural mineral water of high quality and purity with a rejuvenating tasteTagline: Because we care, a drop of pure Britain

Competitors Analysis

Indirect Competitors – Spring and Mineral

Company: Princes LimitedTarget : Anybody at any occasionPositioning: Passionate about leading an active and healthy lifestyleTagline: 100% pure Cumbrian

Company: DanoneTarget: 16-25 M/F Positioning: Purity, equilibrium and healthTagline: Live Young

Company: Eden Springs UK Ltd. Target : Businesses Positioning: The high quality you expect and deserveTagline: Wherever you go

SWOT Analysis

STRENGTHS- Dasani is under the umbrella of

a famous worldwide brand, what means a strong network

- Long- term business experience = cost and supply chain advantages

- Dasani is the 3rd biggest bottled water supplier in the U.S.A

- Dasani is environmentally friendly

WEAKENESSES- Not made with natural spring

water

- High prices

- Not global (not present in Europe, for instance), because of the U.K. public relations scandal

SWOT Analysis

OPPORTUNITIES- Huge potential markets – Coca

Cola doesn’t have water brands in some countries, like U.K.

- Consumers have a healthier and more green lifestyle

- The bottled water market is growing

THREATS- Strong brand competitors

- Financial crisis = less money for consumers to spend

- Growth of private labels (cheaper)

- The local rules of the market (like the 7% calcium of U.K.)

Time for

reflections…

WHY U.K.? Reports inform that bottled water

industry is still growing Non saturated market comparing

with others European countries PepsiCo doesn’t have a still water in

UK yet

1. Ridiculous marketing campaign?

2. Tap water at a high price?

3. Was it a clever strategy?

As colorful as water can be.

Product

THE WATER Fresh and crystal Clear water No minerals added and according to UK law Bottled at source in Devon, England

THE PACKAGING Clear PlantBottle with up to 30% made from

plants 100% recyclable Glassy look Shock resistant Minimal Design Fully Customizable label

Price

0,49£

1,79£

Clear 0,5L Bottle

Clear 1,5L Bottle

PRICE SKIMMING STRATEGY

0,79£

3,39£

0,35£

1,50£

0,5L Bottle

1,5L Bottle

0,61£

3,09£

Placement

HORECA Try to make contracts with some of the

biggest Foodservice operators like: McDonald’s , Subway, Starbucks

RETAIL Be present in Supermarket chains like:

Tesco, Sainsbury's and Asda

INTENSIVE DISTRIBUTION

Promotion

1ST STAGE 2ND STAGE Start teasing campaign on March 1

Clear teaser published in newspapers, MUPIS and billboards all over the UK

Launch the product on March 22, the International Water Day using sampling of their product all over the main cities in the UK

Clear‘s presence in Social Media

Above-the-line promotion: TV, Radio, Cinema, Press, MUPIS

3RD STAGE

Clear will be the England Lead Supporter in the 2014 Football Word Cup in Brazil ( 12 June – 13 July)

Launch of a limited edition series of bottles with the English Flag as well as the official roster

Clear’s “Support England with your message” recycling Container

Offer of one poster with the purchase of a 6 pack 1,5L Bottles

Promotion

Thanks lads!

André Campino | Antonia Radic | Cleide Abreu | Miguel Saúde | Soraia Vale