Marketing 448 Presentation


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Mkt 448 - Fundamentals of International Marketing.
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Marketing 448 Presentation

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