Kopparberg Cider Case Study

1.0 INTRODUCTION

This report will plan to address Kopparberg Cider issue of high price inflation and importing and exporting costs that is due to Brexit (Hull Daily Mail, 2017). Due to brexit Kopparberg Cider will be facing higher fee’s of importing their goods into the UK, which may result in Kopparberg increasing their prices of their products which can cause customers to look for alternatives and their competitors which will lead to their sales decreasing (Telegraph, 2017) (Express, 2017). Kopparberg will lose supply deals with companies in the UK, such as J.D. Wetherspoons and will cause their sales to decrease (Express, 2017) (ECHO, 2017). This will cause to Kopparberg also lose supplier power with companies in the UK. (Porter’s five
The price of the product will not have to change as they will be moving into the UK and already being at competitive pricing allows them to compete with Strongbow one of their main competitors in the Cider industry as Strongbow are the leaders in the market (The Drinks Business, 2016). Kopparberg could expand to other countries as they will not have to face with the price inflations and importing and exporting costs, as currently they import to just more than 30 countries (Kopparberg, 2018). By doing this they are able to increase their sales and revenue and gain more exposure of their brand. As to the products mentioned in previous marketing strategy they can create new flavours as of they now they have 5 flavours, they could also expand their alcohol free ciders and frozen fruit ciders as they have great potential in the market as alcohol free drinks are becoming more and more wanted. Kopparberg have used vast methods of promotion as in 2016 they promoted their new larger range through advertising slots on buses, digital screens and press publication as well as staged events such as an art event in BoxPark (Promomarketing, 2016). This promotional campaign cost a total of £6 million (Staff Writer, 2016). Using Social media would increase the exposure of their brand as currently people spend a lot of time on social media as study suggests, 56% of adults use more than one social media platform (Mary Lister, 2018), this will help gain exposure to young adults. The process in which Kopparberg will have to take is to get a European Free Trade association (EFTA) deal with the UK, with this Kopparberg will be able to trade with the UK from Sweden for free, similar as of now before Brexit (Transporteca, 2017). Therefore doing this will grant them access to import goods from Sweden to UK such as their ingredients that are used for the their products which makes up for their unique selling