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Segmentation Variables for the water market in the UK. Coca-Cola in UK - Assignment Example

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Segmentation Variables for the water market in the UK. Coca-Cola in UK

Dasani failed in the UK market because unlike most of the bottled water which were obtained from precious natural spring or alpine glaciers, Dasani was obtained through local tab water which the company put in the purification process and added mineral salt to it. Within just five weeks of its launched Dasani was withdrawn from the market resulting in financial loss, created a bad image in the minds of the customers reducing the brand value. Bottled water is the fastest growing product in the soft drink category and Coke needs a successful bottled water to capture the UK and European market (Garrett, 2004). Segmentation Variables for the water market in the UK The benefits of market segmentation are highly recognized by the marketing practitioners. With more advanced and sophisticated technology the consumers have become more sophisticated in their shopping behavior and so it becomes important for the marketers to consider the potential market segment and introduce the product. The principle assumption lies on the fact the consumers are numerous and are varied in their product needs and requirements and are not satisfied by single offering, thus market segmentation is required to satisfy the different needs and demands of the customers. ...
The UK soft drink sector has showed a growth rate in the year 2010 and is expected to grow in the future. The soft drink market registered an impressive 4.1% of growth along with 5.8% increase in the value and stood at 14585 million litters in 2010. UK soft drink sector is divided into five segments comprising of carbonates (44%), dilutables (24%), fruit juice (8%), bottled water (14%) and still and juice (10%) respectively. UK water markets are segmented into three types of water which includes natural mineral water comprising of 61%, spring water comprising of 28% and bottled drinking water which comprises of 11% (BSDA, 2011). Segments for bottled water UK soft drink sector consists of five different segments in which the bottled water compromises of 14% of the market share. Consumption of bottled water in UK was highest in 2006 where consumption amounted to 2240 million liters and in 2010 consumption of bottled water amounted to 2055 million liters. UK bottled water falls under three segments, still bottled water comprising of 72%, sparkling bottled water accounting for 14% and still water cooler comprising of 14% in the bottled market sector (BSDA, 2011). UK bottled water market continued to recover and grew by 0.7%in volume. With promotional activity along with few lucky breaks experienced in the weather kept the market share of bottled water rising. Segment targeted by Coke The target audience segmented by Coke was similar to the soft drinks, Diet Coke one of the most popular and famous product of Coke. The target customers were all those people who wanted to a product that would quench their thrust and at the same time is healthy. It can also be said that ...Show more


Coca Cola which is known for its innovation and best soft drinks produced by them globally is not a company which makes mistakes often. Coke had launched its Dasani bottled water in UK which resulted in a disaster for the company…
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