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Armstrong Corporation is a food products manufacturing company

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Introduction

INTRODUCTION Armstrong Corporation is a food products manufacturing company, with products which include ready-to-eat cereals, frozen pies, snack items and carbonated beverages. Funky-Cola is the flagship brand of the carbonated beverage division. Our company has decided to introduce Funky-Cola to the United Kingdom beverage market. In this paper, the market potential and opportunities of the country would be investigated in order to affirm our decision to enter into the UK market. Funky-Cola has been doing very well in our Malaysian market. Our company's sales in the year 2003 amounted to over RM2 billion, with Funky-Cola contributing 25% of the overall revenues. Because of this strong performance, our company believes that Funky-Cola has the potential to be successful in a foreign country. We have pooled together our company's resources to make a thorough research on the UK market and the R&D department is working towards extending our product line in order to adapt to the country's market. With our successful past performances, we believe that our company has enough resources, in terms of capital and managerial expertise, to form a wholly owned subsidiary company in UK. This subsidiary company would mainly produce Funky-Cola for the UK market. COUNTRY ATTRACTIVENESS Our company chose to enter the UK market because of its potentials and opportunities. According to a research, the market for the drinks bought by Britons is worth an estimated �51.85 billion in the year 2004, which makes UK the world's tenth biggest cola market. ...read more.

Middle

Therefore, we assume that the people of Birmingham should have an active lifestyle and are sports enthusiasts. It would be suitable to introduce Funky Cola's product line there. d) Technology Funky Cola's factory would mostly be mechanized because the production of fusion drinks requires the mixing of exact proportions of the ingredients. UK is a well developed country with the needed technology for the beverage industry. Our company will acquire the beverage producing machines and form an assembly line, from the mixing of the drinks to the packaging. Employees would be required to control the machines and maintain it in the right condition. Buyer analysis Funky Cola drinks are targeted towards three segments of consumers, which are health conscious Britons, sports enthusiasts, and squash lovers. These target markets are mainly Britons who are between 15-64 years old, which are the majority of the UK population. 66.3% of the UK population belongs to this age group. Competitive and market analysis The UK beverage market consists of many competitors producing a wide range of beverages. Our company would be generally competing against the likes of Coca-Cola, Pepsi (which is sold under Britvit Soft Drinks), Tropicana UK, Princes Soft Drinks, GlaxoSmithKline and many more beverage producers. However, Funky Cola's direct threats consist of beverages from: a) Diet cola drinks - Diet Coke, Pepsi Max b) Energy drinks - Red Bull, Lucozade, Red Devil c) Fruit drinks - Britvit fruit juices, Tropicana fruit drinks, Ocean Spray squashes Funky Cola hopes to use both, low-cost leadership and differentiation strategies to gain a sustainable market share in UK. ...read more.

Conclusion

As this is an introduction of our Funky Cola product line to the people in Birmingham, we need to have a grand launching. Our company will launch Funky Cola at the retail outlets that are selling our drinks. Then, free sample drinks of Funky Cola's three flavours, in small cups, will be distributed for a week to the customers at the retail outlets. Our company will also rent some billboard spaces at strategic places in order to attract consumers' attention. Also, attractive posters would be positioned at several places in the sports centres where our Funky Cola vending machines are situated. It is vital that our advertisements are very appealing especially towards consumers' urge for a refreshing drink. Our advertisements would feature local sportsmen/women, drinking a can of Funky Cola after a sports session. This is to promote the 330ml canned Funky Cola drinks. As for the larger bottled drinks, advertisements would feature family or close friends gathering together to enjoy each other's company while sipping Funky Cola drinks. Price For the first month after the launch of our product line, we will market Funky Cola at a promotional price. This is to attract consumers' attention and encourage them to try out our products. As for our standard price, Funky Cola will be positioned slightly below our competitors' price, as part of our low-cost differentiation strategy. From research, the standard cola price in retail outlets are as follow: a) 330ml can - �0.39; Our price - �0.30 b) 2litre bottle - �1.32; Our price - �1.25 c) 1.25litre bottle - �1.09 Our price - �1. ...read more.

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