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Marketing 448 Presentation

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Mkt 448 - Fundamentals of International Marketing. …

Mkt 448 - Fundamentals of International Marketing.
Group project.

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  • 1.  
  • 2.
    • Extend Vitamin Water into Brazil
    • We will discuss
      • Country Outlook
      • Industry Outlook
      • Marketing Strategy
      • Future of Vitamin Water in Brazil
  • 3.
    • Brazil: one of the top emerging markets
    • Population of 196,342,592
    • 8 th Largest economy in the world (1.9 trillion PPP)
    • GDP of 2.03 trillion (in US dollars)
    • Government is pushing for more foreign investments
  • 4.
    • Futbol is the most popular sport in Brazil
    • Average age is 28.3 years old
    • 90% of the population have TVs
    • National language: Portuguese
    • Many middle-class and elite Brazilians also speak English
  • 5.
    • Soft drink market consists of
      • Bottled waters
      • Carbonates
      • Concentrates
      • Functional (energy and sports drinks)
      • Juices
      • Coffee
      • Tea
  • 6.
    • Soft drink market generated 12.8 billion (US dollars) in 2007
    • Expected compound annual growth rate of 3.1% for the years 2007-2012
    • Coca-Cola is 1st in the country, Guarana Anarctica is 2 nd
    • Health and energy drinks are predicted to emerge as most preferred choice of all beverages in Brazil
    • Independent retailers make up the largest distribution channel for soft drinks in Brazil
  • 7.
    • License out Vitamin Water to FEMSA (contract manufacturing agreement)
    • FEMSA is the 2 nd largest Coca-Cola bottler in the world
    • Vitamin Water was acquired by Coca-Cola in 2007 but operates as a separate business entity
    • FEMSA has the resources and knowledge to adequately distribute Vitamin Water
  • 8.
    • Focus on Brazil’s two largest and most dense cities
      • Sao Paulo
      • Rio de Janeiro
    • Focusing on Middle to Upper Class
    • Market to teenagers, young adults and those that lead an active lifestyle
    • Teenagers and young adults are more likely to try new products as they are Experiencers (VALS framework)
    • Pursuing healthy and active lifestyle segments as consumers are changing their lifestyles and raising health awareness
  • 9.
    • Size of Vitamin Water will be 500ml
    • Packaging will consist of Portuguese with “Vitamin Water” in English
    • Introducing 4 flavors
      • Essential
      • Energy
      • Endurance
      • Multi-V
  • 10.
    • $1 USD = $2.39 BRL (Brazilian Currency)
    • Average bottled water price: $0.27 to $0.41 (in US currency)
    • Average price for 600ml of Coca-Cola: $0.91 (in US currency)
    • Price Vitamin Water at $0.80 (in US currency)
    • 1,75 BRL (Brazilian Currency)
  • 11.
    • Using Coca-Cola FEMSA’s distribution network
      • 4 plants
      • 27 distribution facilities
      • Distribute to 107,398 retailers
    • Plan to tap into convenience and other retail stores
    • In the future we plan to enter other channels such as bars, clubs, restaurants, vending machines, and sporting arenas
  • 12.
    • Position Vitamin Water as the new “it” drink that is a healthy alternative as well
    • Convey that Vitamin Water is fun and tasteful and something that provides energy and balance for the day
    • Plan on advertising through TV, magazines, stadium sponsorships, in-store displays, in-store promotions, and interactive websites
  • 13.
    • Television
      • Vitamin Water is known for their funny and unique commercials
      • The US uses celebrity endorsements and we want to continue this strategy in Brazil
        • Marta Vieria da Silva
        • Gisele Bundchen
        • Rodrigo Santoro
      • Advertise on MTV Brasil, Big Brother, Malhacao, and ESPN Brasil
  • 14.
    • Magazines
      • We plan on advertising in
        • Claudia
        • Trip
        • Jornal dos Sports
    • Estadio de Maracana futbol
      • Advertise on scoreboard and within the stadium
      • Goal is to offer Vitamin Water at concessions
  • 15.
    • Interactive Website
      • Consumers will be able to view products we offer and locations where Vitamin Water is available
      • Can leave comments, questions and suggestions
      • Have consumers vote on new flavor
    • Trade and Consumer Promotions
      • Vitamin Water at end of aisles
      • Point of purchase displays
      • In-store sampling
      • Sampling inside Estadio de Maracana futbol
  • 16.  
  • 17.  
  • 18.
    • Brazil is a great market to expand into
    • Vitamin Water has the potential to become the number 1 preferred functional beverage in Brazil
    • Overall Vitamin Water has a unique position as a great tasting, healthy, and functional beverage
  • 19.
    • http://www.youtube.com/watch?v=0T_wU8RaxXQ
  • 20.  

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