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Subject category: Marketing
Published by: IBS Center for Management Research
Published in: 2005

Abstract

Coca-Cola, the world's largest carbonated beverages company, ventured into the fast growing bottled water industry. The company launched its bottled water brand Dasani in the US in 1999. Once it became a success in the domestic market, Coca-Cola launched Dasani in the UK in February 2004. However, Dasani soon ran into controversies as the British media wrote that tap water was the source of Dasani. The media criticised Coca-Cola for misleading the public by describing tap water as 'pure' and cheating them by selling it at a highly inflated price. The explanations given by the company that it adopted the most sophisticated purification process before bottling the water, did not convince the critics. To further add to Coca-Cola's problems, regular inspections conducted by the company revealed that something had gone wrong at the Dasani's purification factory and a bad batch of minerals had contaminated the bottled water containing potentially carcinogenic (capable of causing cancer) bromate. Coca-Cola had to recall the entire range of Dasani from the UK and postpone indefinitely the launch of Dasani in France and Germany.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Industry:
Size:
Very large
Other setting(s):
2004-2005

About

Abstract

Coca-Cola, the world's largest carbonated beverages company, ventured into the fast growing bottled water industry. The company launched its bottled water brand Dasani in the US in 1999. Once it became a success in the domestic market, Coca-Cola launched Dasani in the UK in February 2004. However, Dasani soon ran into controversies as the British media wrote that tap water was the source of Dasani. The media criticised Coca-Cola for misleading the public by describing tap water as 'pure' and cheating them by selling it at a highly inflated price. The explanations given by the company that it adopted the most sophisticated purification process before bottling the water, did not convince the critics. To further add to Coca-Cola's problems, regular inspections conducted by the company revealed that something had gone wrong at the Dasani's purification factory and a bad batch of minerals had contaminated the bottled water containing potentially carcinogenic (capable of causing cancer) bromate. Coca-Cola had to recall the entire range of Dasani from the UK and postpone indefinitely the launch of Dasani in France and Germany.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Industry:
Size:
Very large
Other setting(s):
2004-2005

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