Coca cola presentation International marketing plan for Brazil

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  • ALLHello How are y’all doing today? My name is Ashlee Jorgensen and this is…._____...._______...________..._________We are with Coca-Cola Company here to share our market plan for Coca-Cola’s product Barq’s entry into Brazil
  • ASHLEE1st:The Coca-Cola Company has been in existence since 1886, after more than 125 years in business, Coca-Cola offers more than 3500 beverage choices presently. From an international business perspective, Coca-Cola is well recognized in over 200 countries around the world, with the help of over 146,000 employees that are dedicated to carrying out our mission statement we believe that we can conquer market entry in any market place. At Coca-Cola our Mission is to: “refresh the world, inspiring moments of happiness while creating value and making a difference.”Coca Cola Currently controls 50,1% of Brazils market share
  • POONEH Gp1 1890 Barq Brother Bottling Co. was established1898 started production of sarsaparilla-based carbonated drink, now known as Barq’s root beerDescribe taste of Barq’sBarqs controls 12.06% of coca-cola’s total stock price Barq’s set up their first franchise in 1934, sold the company to entrepreneurs John Oudt and John Koerner in 1976, and in 1995, our company, The Coca-Cola Company, ultimately acquired it. Coca-Cola is currently selling Barq’s root in the US, Canada, Germany, Guam, Mariana Islands, Turks & Caicos, Bahamas, and American Samoa.
  • ASHLEE-Currently, Brazil is the 7th largest economy in the world. -With Brazils economy rapidly expanding, it is expected to become the 5th largest economy in the world by the end of this year. -With purchasingpower in Brazil growing at 3% annually, advantages for market entry is quite impressive with a total purchasing power estimated around 1.04 trillion Dollars. -Brazil contains a large population, over 203 million people, this increases Barq’s target market growth potential considerably.- With a Decrease in inflation rates, this implies the population of Brazil is highly capable of entering a new market as a consumer.-Currently there is No Root Beer carbonated beverage market in Brazil. At this time the country of Brazil is the world’s 3rd largest soft drink market, with a market growth rate of nearly 18% per year. In the last 30 years alone, Brazil’s soft drink industry has grown by 400% total. -Coca Cola currently controls 50,1% of Brazils total soda market share, we feel that this could increase significantly with Barq’s market entry. -We at Coca-Cola believe that our team has significant potential for success with our introduction of Barq’s root beer into Brazil.
  • OSCAR from gp 2.1 May want to mention: Shorten bullets?Brazil is collectivist or group oriented society that feels need to establish relationship, prefers face to face meetings
  • RYAN from gp 2.2 reportMaybe include:-Talk about nominal exchange rate and GDP-Distribution of wealth is only slightly un equal at 53.9 on a scale of 0-100FDI federal direct investment and entry into Brazil’s market due to its large growing economy.-Discuss large exporting market -Real rate of Brazilian currency is equivalent to $1.71dollars in the US (if rate where to increase it could result in an increase in demand and decrease in exports)-Brazil’s inflation rates at low 6.2 percent rather high, but with a drastic decrease of this rate implies that Brazilians are very capable and open minded entering markets-Brazil’s labor force continues to grow at a rate of 102.2 million. Low unemployment-Brazil is largest internet user in Latin America, more Brazilians use cell phones than land lines-
  • POONEHMarketing Objective:Target Market15-30 year olds?? Sales forescast year 1-5Increase overall sales for Coca-Cola by 25% with Barq’s introductionProfit forecast year 1-5Increase by 35% for Coca-Cola overallIncrease for Barq’s specifically by 18%Market penetration and Coverage Coca-Cola currently controls 50.1% of the total market share in BrazilMarket penetration for Barq’s specificallyInitially distribute in the specific regions of Campinas, Santos, Sao Paulo, parts of MatoGrosso de Sul, and parts of the state of GoiasThroughout all regions of Brazil within 5 yearsPossible Issues Root beer not common taste BrazilPrice Competition“premium product” TubainasBrazilian competitorsNearly half the price of Coca-Cola counterpartsCan avoid taxesNationalismIncreasing Health AwarenessReal cane sugar vs. high fructose corn syrupBrazilian government initiatives
  • ASHLEEOur product name will remain the same, “Barq’s root beer,” with initial size of 20 ounce bottles. We believe that proper localization to the Brazilian market, includes changing of english to Portuguese on the bottle.-Brazil enjoys loud bright colors, and are relatively vibrant individuals. We feel that to target our market segment of ages _______ we must adapt to our market. In order to appeal to our target market we will use glass bottles for packaging with a bright sun orange color on our label background. Our lettering will also adapt to Brazilians, while our logo will remain the same. We feel that changing our lettering to appear more like the curvature of Coca-Cola’s bottle insriptions we can send a message to our market allowing them to connect Coca-Cola to Barq’s as a Coca-Cola product, we will also inform our consumers that Barq’s is a product of Coca-Cola distributions. -We plan to translate our slogan “Famous OldeTyme Root Beer since 1898. It’s Good!” from english to portuguese.At the bottom of our bottle we will add, “Product of Coca-Cola. Satisfaction Guaranteed,” also in Protuguese. -During the FIFA world cup we will introduce a new bottle design to specifically appeal to the young segment of Brazil and their liking. -Barq’s root beer contains a weak scent of wintergreen.
  • ASHLEE:Coca-Cola and our marketing team believe that a direct investment mode of entry would be our best option, considering Coca-Cola is already a large market controller of Brazil. -Agents: AKQA, is a marketing agency that is well known and established with over 1,000 employees around the world. AKQA focuses on interactive marketing, and will be Coca-Cola and Barq’s agent responsible for advertisement and promotion. -Currently Coca-Cola has 39 bottling plants located in Brazil. Our barq’s products will be prepared within Brazil at our bottling plants, providing a local touch and localizing to our target market. -Coca-Cola Femsa will be responsible for Barq’s distribution, to begin our product launch, Coca-Cola Femsa will distribute Barq’s to specific regions of Campinas, Santos, Sao Paulo, parts of MatoGrosso de Sul, and Parts of Goias. -Our Goal is for Coca-Cola Femsa to be distributing Barq’s throughout all regions of Brazil within 5 years. -From a retail perspective, Coca-Cola will offer Barq’s root beer at wal-mart, Carrefour and Pao Do Acucar.-Wal-mart and Carrefour are currently launching 70 stores a year within Brazil, this gives Coca-Cola more reason to offer Barq’s at these specific retailers.
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  • Coca cola presentation International marketing plan for Brazil

    1. 1. Ashlee JorgensenPooneh GhanaOscar GarzaPedro HernandezRyan Davidson
    2. 2. • Established in 1886• Mission Statement: “Refresh the world, inspiring moments of happiness while creating value and making a difference.”• In over 200 countries around the world• Over 146,000 employees worldwide• 1.7 Billion Coca-Cola drinks served daily
    3. 3. • Created in 1898 in Biloxi, Mississippi• Founder: Edward C. Barq Sr. • Barq Brother Bottling Co.• Gained rapid popularity due to it’s unique taste over competitors: • Less carbonated • Less sweet • Less foamy• Slogan, “It’s Good Since 1898.”• Set up Franchise in 1934• Eventually bought by Coca-Cola Company• Sold Barq’s company in 1995• Barq’s controls 12.06% of Coca-Cola’s stock price
    4. 4. • 7th largest economy in the world• Population of 203,429,773• Fast growing economy• Purchasing power• Decrease in inflation rates• No Root Beer currently available • Minimal Competition • Ambev bottling company for PepsiCo – 17.7%• 3rd largest soft drink market• Coca-Cola already owns over 50% of thesoft drink market
    5. 5. •Brazilians place a very high importance of family•Education is very sought after, especially with the economy of Brazil growing• Legal system based on civil codes derived from the Portuguese forefathers•Business customs place high importance of uncertainty avoidance, much likeThe way of life in Brazil•Roman catholic is main religion•A wide social gap exists between north and south Brazil• Portuguese is main language
    6. 6. • Still very rural, 9% of roads are paved and of that 35% is Government controlled. • Relies on Train use as well, 18, 000 miles of railroad tracks• Exports to China, United States, Argentina, and others total $201.9 Billion• Imports from China, United States, Argentina, Japan, Germany total 181.9 Billion• Brazilian Real vs. U.S. Dollar $1.88 to every U.S. $1• Inflation rate of 6.2% and Unemployment rate of 4.7%• About 430 computers per 1000 people• Expand into growing retail stores • Wal-Mart, Carrefour building 70 stores/year
    7. 7. Marketing Objective:• Target Market • 10-25 year olds• Sales forecast year 1-5 • Increase overall sales for Coca-Cola by 25% with Barq’s introduction• Profit forecast year 1-5 • Increase by 35% for Coca-Cola overall • Increase for Barq’s specifically by 18%• Market penetration and Coverage • Coca-Cola currently controls 50.1% of the total market share in Brazil • Market penetration for Barq’s specifically • Initially distribute in the specific regions of Campinas, Santos, Sao Paulo, parts of Mato Grosso de Sul, and parts of the state of Goias • Throughout all regions of Brazil within 5 years
    8. 8. • Root beer not common taste Brazil• Price Competition • “premium product” • Tubainas • Brazilian competitors • Nearly half the price of Coca-Cola counterparts • Can avoid taxes• Nationalism• Increasing Health Awareness • Real cane sugar vs. high fructose corn syrup • Brazilian government initiatives
    9. 9. Product:• Brand: Barq’s Root Beer• Product size: 20 ounce bottles• Color & Design: • Label: Bright sun orange • Lettering: Original Logo • Additions: Product of Coca-Cola in Portuguese • FIFA Promotion bottling• Scent: weak slight scent of wintergreen• Packaging: glass bottle see through except label• Warranty: satisfaction guaranteed
    10. 10. Distribution:• Mode of Entry: • Direct investment• Agent: • AKQA• Distributor • Coca-Cola Femsa• Retailers • Wal-Mart • Carrefour • Pao Do Acucar
    11. 11. • Promotion Objective • Brand re-enforcement • New product acceptance• Pre-rolled ads, Mobile ads, Social Media• “MY COKE REWARDS” in Brazil • Chance to win tickets to World Cup• Event Sponsorship • The FIFA World Cup• Family Image through local investments• Corporate Responsibility • Rainforests
    12. 12. • Direct marketing objective: make Barq’s a recognizable brand. • Mobile advertising • Product sampling• Personal Selling objective: make Barq’s a better drink option• Personal sales representatives will help with a strategic plan in order tomaximizequality of customer service • Making the public aware of how well of a drink option Barq’s is • Persuade the public that Barq’s is different, but offers a unique flavor that will change the image of soda in Brazil
    13. 13. • Market a 20oz glass bottle of Barq’s Root Beerfor 3,01 reais ($1.60)• Gain a 5% Market Share• Costs involved are marketing plans,advertising ventures, distribution, promotionetc.• Product cost per unit is $1.22
    14. 14. • Brazil is 5th largest country and 7th largest economy in the world• Outlook for Barq’s introduction in Brazil is promising due to • Purchasing power growing at 3% annually • Current lack of root beer in Brazil • Brazilians interest in change • Coca-Cola Company’s current success in the country• Connect/interact with Brazilians and create happiness with out product • Corporate sponsorship/responsibility • Promotions and Contests• Make Barq’s root beer a successful drink in the country within 5 years
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