Great britain bottled water industry has been dominated by organizations such as Nestlé and Danone for many years. Pepsi, the soft drinks producer, just lately entered the bottled water market in a number of countries, including the UK, with brands such as Malvern and Glacéau. What do you think is the best technique for existing businesses to adopt in response to the entry of a new large competition? Justify the answer with regards to the UK bottled water market and/or other market segments that you know. Nestlé and Danone have been taking over the UK bottled water market for many years with famous names such as Buxton, Evian and Volvic. Coca-Cola is one of the firms who has made a decision to enter the bottled water market with brands including Malvern and Glacéau. Skol are using Ansoff's diversification simply by entering a new market with a brand new product, although they are moving into a related market hence the risk isn't too high because of the knowledge they already have of the sodas market. With a new competitor entering the bottled water market, the current marker market leaders may need to adapt their strategies in response to the large competitor.

Being a quick respond to a new rival coming into an industry, a company could use promotional promotions to keep clients attracted to their very own brand. They will could buy merchandising, to make a more attractive way to sell many or to improve shelf space for their goods, as consumers are more likely to purchase something that stands out and is at their vision level. The firms could also use well-known sales advertising techniques such as contests, free offers, buy one get one free or perhaps coupons. As consumers are becoming more environmentally conscious, they commence to make decisions on homogenous goods based upon things such as just how ethical they may be. In a market where businesses are selling homogenous goods they need to differentiate themselves through their particular brand because what they contend on. A bottled water firm that has prevailed in doing this...