Coca-Cola's Dasani in the UK - The Public Relations Fiasco

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Case Details:

Case Code : MKTG103
Case Length : 16 Pages
Period : 2004-05
Pub Date : 2005
Teaching Note : Not Available
Organization : Coca Cola
Industry : Bottled Water, Beverages
Countries : UK

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Fiasco

Dasani was launched in the UK on February 10, 2004, with the punch line "the more you live life, the more you need Dasani." The composition of the Dasani introduced in the UK markets differed from that of the one in the US since the UK range contained calcium chloride to comply with the UK laws, which required all the bottled waters to contain calcium.

In all other respects, such as sourcing and the purification process, the two ranges were similar. In the US, Dasani was the local tap water purified by a scientific process with selected minerals added to improve its taste.

Although Coca-Cola never implied that the water was being sourced from a spring or any other natural source, the company described it as being especially "pure."

At the time of its launch, a few players in the bottled water industry knew that the source of Dasani in the US was tap water; but it was not yet public knowledge in the UK...

The Controversy

When the news of Dasani being just tap water broke out, Coca-Cola's executives did not refute the charges of the English media. The marketing executives of the company were not disheartened due to the negative publicity by the press. They protested that they had been grossly misunderstood. The management tried to justify the use of the term "pure" on the grounds that they used the most sophisticated scientific cleansing process, called reverse osmosis to purify the water...

The Aftermath

After decades of steady growth, the sales growth of carbonated beverages of Coca-Cola was beginning to slow down in the early 2000s. The bottled water segment, however, was growing fast. This was why Coca-Cola introduced Dasani.

After tasting success in the domestic market, the company wanted to expand to Europe and hence it entered the UK first. However, the sourcing and bromate controversy, considered to be a major public relations disaster, hindered the plans of the company to expand to the rest of Europe...

Exhibits

Exhibit I: Harmful Effects of Bromine
Exhibit II: Coca-Cola's Product Line
Exhibit III: Caricature Promos of Dasani Designed by Critics
Exhibit IV: Product Withdrawal Statement Issued by Coca-Cola
Exhibit V: Dasani Promotional Ads