Analysis Of Vita Coco

As a beverage touting superior hydration and health benefits, Vita Coco Coconut Water faces significant competition from many participants in the beverage industry. In the health-conscious Swedish market, successful beverages must appeal as beneficial to one’s wellbeing. Additionally, the active lifestyle of Swedish culture produces a strong demand for all natural, hydrating drinks. In 2012, the New Nutrition Business stated, “the current value of the European [coconut water] market is estimated to be worth $65 million” (Diggs, 2012). Therefore, as a new participant in the Swedish market, Vita Coco faces staunch competition from European brand Green Coco Europe GmbH. In addition to coconut water beverages, Vita Coco must also compete with sports drink titan Gatorade for the market share.

Competitor Assessment

As the top selling brand of organic coconut water throughout the European market, Green Coco Europe GmbH is perhaps the single greatest competitor and challenger to Vita Coco (Diggs, 2012). Originating as a small German startup company, Green Coco Europe GmbH currently dominates the European market “[raking] in an estimated $43 million in retail sales in 2011” (Diggs, 2012). Touting perceived health benefits as an organic product, the beverage primarily retails in popular Swedish outlets such as local health shops and airports, as well as on Amazon and nu3.com (Diggs, 2012). According to the company website, the product is sold in 200 ml glass bottles, 330 plastic bottles, and in 500ml and 1 liter cartons (“Coco Juice Plain” n.d.). Green Coco is fairly expensive as a single 500ml bottle costs 35 SEK ($5.30 USD), while a 330ml bottle cost 32 SEK ($4.85 USD) on the nu3 website (nu3 n.d.). Green Coco is packaged...

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...rtisements, Vita Coco should have amble opportunity to reach numerous consumers through different forms of advertising. In countries such as the United States, the company has relied on celebrity endorsers such as Rihanna (Driscoll, 2012). Embracing the same strategy should generate curiosity among Swedes unfamiliar with the brand. Vita Coco enjoys a distinct advantage over Gatorade due to the appearance of the liquid. Unlike coconut water, which is clear, Gatorade comes in many different colors and appears chemically produced. The health-conscious Swedish consumers are more likely to reject this appearance for more natural-appearing products. Therefore, it is paramount that the all-natural qualities of Vita Coco are advertised. Additionally, it is important to show that Vita Coco is just as hydrating as Gatorade with significantly less sugar and calories.