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WKD Brand in the UK Alcopops Market - Case Study Example

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The paper "WKD Brand in the UK Alcopops Market" states that the market position in terms of regulation and tax on the product may well change within the next 12 months. Therefore it is recommended that a controlled test entry into the market takes place before the end of 2009…
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WKD Brand in the UK Alcopops Market
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Download file to see previous pages Alcopops generally have been accused of targeting underage drinkers. Indeed, as recently as 2006 WKD itself was accused of fuelling underage binge drinking and its TV commercials were banned by the Advertising Standards Authority who stated that '...the music and personalities in the ads were likely to appeal strongly to under 18s.’
A study by the Organisation for Economic Cooperation and Development of youngsters well-being in 30 industrialised nations has concluded that the UK’s young people are amongst the worst behaved in Europe and they are more likely to get drunk (especially girls) than those in any other country. In recent years the political climate in the UK has been firmly anti binge drinking by teenagers. The UK government and the alcohol industry have both tried to promote socially responsible drinking amongst young people.
The government has also recently adopted a ‘Youth Alcohol Action Plan’ which outlines how the problem of underage and excessive drinking by young people will be dealt with. The plan is to forge stronger partnerships with parents, industry, criminal justice and law enforcement agencies and communities (Department for Children, Schools, and Families 2009).
The global economy is still in a recession although there are indicators suggesting that the worst may be over. In the UK the recession is expected to have moderated by the end of 2009 with recovery underway by the second quarter of 2010, according to the CBI (Sargeant, R. 2009).
In terms of the alcopops market itself then demand may be hit by a change of government in 2010. The price of alcopops will be increased by £1.50 for a large bottle under plans unveiled by the Conservatives. (Barnes, E. 2009).
It has to be remembered that the target group has substantial spending power. However, this spending power has been severely damaged by the recession. With the recession has come unemployment and one of the hardest-hit groups has been the 18 to 24-year-olds which as seen unemployment numbers rise from just under 500,000 in the last quarter of 2007 to 722,000 in the second quarter of 2009. This figure is expected to grow to 770,000 by the middle of 2010' (Kearn, D.2009). ...Download file to see next pages Read More
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