Bacardi - On a high in UK
"Bacardi has been transporting the flavors of Cuba to UK (United Kingdom) for a long time now. It is one of the most trusted names in the alcohol industry in UK, as it has been endowed with many awards. The company has very recently won the Green award for reducing the amount of the emissions. They have reduced the carbon emissions by over 13 percent in the last two years. The operations of Bacardi at UK consist of Bacardi Martini and a wholly owned subsidiary called as John Dewar. Bacardi has dominated the rum market throughout the world and UK is no different. Bacardi controls about 85 percent of the market share in the UK.
However, there has been a gradual decrease for rum in the market because, the popular product has been replaced by Vodka and gin. The conventional product is also facing heavy competition from the brands such as Captain Morgan. But, over the years, the growth has been slow yet strong. Owing to these fluctuations in the market, the company has embarked on the policy of diversification. It has introduced many brands like Dewars Scotch whiskey and the Bombay gin. This has led to regaining of market share to a considerable amount as well as the reduction of dependency on one single product.
The alcohol industry is one of the most competitive industries in the world, where the competition is not only between the brands but also between the different categories of the drink. Therefore, there are extremely high chances of product cannibalization because of the element of horizontal competition. The two main competitors of Bacardi in the UK market are Diageo PLC and Pernod Ricard. Diageo PLC produces a lot of products such as Smirnoff and Johnny Walker whiskey. Pernod on the other hand has a much wider portfolio spread across a larger number of products.
As the industry experiences very high levels of competition, it is seen that Bacardi uses the ?pull strategy' for advertising. This would help in the generating more sales, they also tied up with one of the world's top advertising forms, the APP group. The company has also used the concept of co-branding the UK market, where it marketed the product in tandem with Coca- Cola. Even though the UK market has been throwing up a lot of challenges, Bacardi has been going strong and is expected to do so in the coming years. "