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

The United Kingdom Beverage grocery storeINTRODUCTIONArmstrong Corporation is a food products manufacturing p machinationy, withproducts which include ready-to-eat cereals, frozen pies, snack itemsand change crapulences. Funky-Cola is the flagship brand of thecarbonated beverage division. Our partnership has decided to introduceFunky-Cola to the United Kingdom beverage foodstuff. In this paper, themarket potential and opportunities of the country would beinvestigated in arrangement to affirm our decision to enter into the UKmarket.Funky-Cola has been doing very well in our Malayan market. Ourcompanys sales in the year 2003 amounted to over RM2 billion, withFunky-Cola contribute 25% of the overall revenues. Because of thisstrong performance, our company believes that Funky-Cola has thepotential to be victorious in a foreign country. We have pooledtogether our companys resources to make a thorough research on the UKmarket and the R&D department is working towards extending ou r productline in couch 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 insobrietysbought by Britons is worth an estimated 51.85 billion in the year2004, which makes UK the worlds tenth biggest grass market. Theresearch alike revealed that 7.2% of all consumers spending atomic number 18 spenton purchasing drinks and Britons drink 130 cans of soft drinks or43litres per year. However, Britons are moving towards consuming assorted kind ofdrinks, such as squashes, diet colas, energy drinks, tea and soforth. There is also a new breed of health aware male consumersin the UK. This was due to the incr eased focus on fleshiness by thegovernment 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 posit to stay healthy, and at the same time,continue to enjoy the great insight ... ...cost differentiationstrategy. From research, the standard cola price in retail outletsare as followa) 330ml can - 0.39 Our price - 0.30b) 2litre bottle - 1.32 Our price - 1.25c) 1.25litre bottle - 1.09 Our price - 1.00REFERENCESRed Bulls Place in the UK squeezable Drinks Markethttp//www.bized.ac.uk/compfact/redbull/redbull11.htmBBC News BusinessCola Sales Set to drop Sparklehttp//news.bbc.co.uk/1/hi/business/3121690.stmCoca-Cola Britain Using Market look into 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.beverageworld.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 Free Encyclopediahttp//en.wikipedia.org/wiki/BirminghamUnited Kingdom Wikipedia, the Free Encyclopediahttp//en.wikipedia.org/wiki/United_Kingdom atomic number 74 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