THINK LATIN AMERICA<br />How to Leverage the Power and Influence of An Emerging Social Class with Increased Purchasing Pow...
WE ARE ALMOST<br />200 MILLION PEOPLE. <br />ALL SHARING THE SAME DREAM: A BETTER FUTURE.<br />Source: U.S. Census Bureau,...
BRAZIL IS DIVIDED IN 5 REGIONS,with many differences among them<br />The Northeast Region,<br /> beautiful beaches, but st...
FIFA WORLD CUP 2014<br />OLYMPICS 2016<br />
SOCCER, SAMBA, CARNIVAL<br /> ETHANOL, OIL, AIRPLANES <br />AMAZON, PANTANAL, ATLANTIC RAINFOREST<br />
BRAZIL<br />IS ON THE<br />SPOTLIGHT<br />
AND THE GOOD NEWS IS:<br />THE FUTURE IS<br />HAPPENING NOW.<br />
WORLD’S 5TH LARGEST ECONOMY BY 2015<br />A leading country in South America and one of the BRIC countries, is #8 today<br ...
THE EMERGING MIDDLE CLASS<br />
WHAT IS THE MIDDLE CLASS<br />INCOME IN BRAZIL?<br />US$ 7,200-US$ 31,200/Yr – 25% growth in 5 yrs<br />Source: CPS/FGV, I...
EMERGING MIDDLE CLASS GROWTH<br />56%<br />of Brazil’s population<br />= 120MM<br />49%<br />of Brazil’s population<br />=...
49% OF THE COUNTRY’S POPULATION IS IN THIS RANGE<br />IT’S MORE THAN 90 MILLION PEOPLE<br />MORE THAN GERMANY’S ENTIRE POP...
THOSE PEOPLE REPRESENT, TODAY, <br />THE LARGEST CONSUMPTION MARKET<br />AND/OR POTENTIAL MARKET IN THE COUNTRY.<br />46% ...
AND THESE NUMBERS REFER TO 2008!<br />IN 2015, THEY WILL REPRESENT<br />56% OF THE POPULATION, WITH <br />54%* OF THE PURC...
HOW IS THIS AFFECTING THE CONSUMER MARKET?<br />
WHAT HAVE WE LEARNED<br />
NEW PRODUCTS<br />AND SERVICE NEEDS<br />WHAT KIND OF CAR<br />APPEALS TO THIS CLASS?<br />WHAT KIND OF BEVERAGE<br />DO T...
HALF GLASS FULL IS THEIR WAY OF SEEING LIFE <br />They share pride and satisfaction of their<br />achievements and have an...
“<br />FAMILY IN <br />HONEYMOON<br />Parents and children<br />are building a better future together<br />with no conflic...
“SHE” IS THE <br />  LEADER<br />Although women are not the<br />main income providers, they have<br />great influence on ...
“<br />“MY COMMUNITY<br />IS MY WORLD”<br />The community is their extended <br />Family – help lives next door.<br />Serv...
“<br />THE GROCERY STORE ON THE CORNER IS MY EVERYDAY PARTNER<br />”<br />Small markets understand these people’s financia...
TECHNOLOGY MEANS  SAFE <br />ENTERTAINMENT<br />Buying electronics for the household <br />is not a matter of social statu...
TECHNOLOGY AS<br />A SOCIAL LADDER<br />As it becomes more accessible, technology <br />now means more than job opportunit...
WHAT IS<br />COCA-COLA BRAZIL <br />DOING?<br />
BETTER FUTURE<br />COCA-COLA BRAZIL’S INTEREST<br />COMMUNITY INTEREST<br />YOUNG PEOPLE<br />INCOME GENERATION<br /><ul><...
 First Job </li></ul>vision<br />BUSINESS + COMMUNITY GROWTH<br />Coca-Cola and the community sharing<br />a single goal: ...
BUILDING A BETTER FUTURE <br />FOR THE EMERGING<br />MIDDLE CLASS, <br />THE COUNTRY AS <br />A WHOLE GROWS <br />STRONGER...
TO MAKE IT HAPPEN,<br />WE CREATED THE <br />“COLETIVO” COCA-COLA.<br />
VIDEO<br />
TODAY, WE HAVE 6 COLETIVOS<br />IN OPERATION.<br />There will be many more throughout the country in the future<br />2009 ...
TO MAKE IT HAPPEN, COCA-COLA BRASIL USES TECHNOLOGY IN A “PLAYFUL WAY”<br />Besides out-of-home activities, students can l...
TECH IS THE FUTURE<br />
EVERY YEAR, PEOPLE GET MORE CONNECTED<br />Internet Penetration  in Brazil<br />89%<br />90%<br />80%<br />76%<br />71%<br...
INTERNET CAFES BECAME THE MEETING POINTS FOR THE YOUTH<br />INTERNET ACESS OUT OF THE HOUSEHOLD<br />RESPONDS FOR 49% OF A...
WE DON’T HAVE TO PERSUADE MIDDLE CLASS MEMBERS ABOUT THE IMPORTANCE OF TECHNOLOGY<br />91%<br />agreeitisveryimportantthat...
TECHNOLOGY IS ASSOCIATED WITH STATUS, INDICATING PURCHASE INTENT<br />68% intend to buy a widescreen TV<br />64% are think...
LAPTOPS ONLY FALL BEHIND CARS<br />AS A SIGN OF STATUS<br />High Status Products<br />78<br />64<br />51<br />New car<br /...
AND THEY ARE ALSO BUYING ONLINE:<br />59%<br />of online buyers<br />in Brazil come from<br />the middle class, <br />repr...
FINAL MESSAGE<br />
TO ACHIEVE SUCCESS IN BRAZIL, <br />ONE NEEDS TO CONQUER<br />THE EMERGING MIDDLE CLASS.<br />THEY ARE THE FUTURE.<br />AN...
BEING SUCCESSFUL IN BRAZIL (AND LATIN AMERICA) WILL MAKE A DIFFERENCE FOR EVERY BUSINESS.<br />This is the decade of Brazi...
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The Power and Influence of an Emerging Social Class, by Marco Simões

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Marco Simões, Communications and Sustainability Vice-President for Coca-Cola Brazil, explains the increasing purchasing power and influence of an emerging middle class in Brazil and details how the company is tapping into this opportunity through a social program that combines online games and training for the communities.

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The Power and Influence of an Emerging Social Class, by Marco Simões

  1. 1. THINK LATIN AMERICA<br />How to Leverage the Power and Influence of An Emerging Social Class with Increased Purchasing Power<br />MARCO SIMÕES<br />COCA-COLA BRASIL<br />
  2. 2. WE ARE ALMOST<br />200 MILLION PEOPLE. <br />ALL SHARING THE SAME DREAM: A BETTER FUTURE.<br />Source: U.S. Census Bureau, International Data Base, 2009<br />
  3. 3. BRAZIL IS DIVIDED IN 5 REGIONS,with many differences among them<br />The Northeast Region,<br /> beautiful beaches, but stricken by droughts <br />28.0% of population<br />15.4% of GDP<br />North Region, mostly<br />covered by rainforest,<br />is the largest region <br />7.8% of population<br />4.5% of GDP<br />Central-West Region, <br /> the country’s <br />capital (Brasília) and <br />much of the farmland<br />6.7% of population<br />10.4% of GDP<br />Southeast Region has the largest cities (São Paulo and Rio), and is the industrial and financial center <br />43.0% of population <br />53.7% of GDP<br />The South Region has industries and <br />agriculture<br />14.5% of population<br />15.8% of GDP<br />Source: U.S. Census Bureau, International Data Base, 2009<br />
  4. 4. FIFA WORLD CUP 2014<br />OLYMPICS 2016<br />
  5. 5. SOCCER, SAMBA, CARNIVAL<br /> ETHANOL, OIL, AIRPLANES <br />AMAZON, PANTANAL, ATLANTIC RAINFOREST<br />
  6. 6. BRAZIL<br />IS ON THE<br />SPOTLIGHT<br />
  7. 7. AND THE GOOD NEWS IS:<br />THE FUTURE IS<br />HAPPENING NOW.<br />
  8. 8. WORLD’S 5TH LARGEST ECONOMY BY 2015<br />A leading country in South America and one of the BRIC countries, is #8 today<br />GDP<br />US$ billion<br />Top Economies in 2008<br />15000<br />5000<br />4000<br />3000<br />2500<br />2000<br />1500<br />1000<br />500<br />USA<br />JAPAN<br />CHINA<br />GERMANY<br />FRANCE<br />UK<br />ITALY<br />BRAZIL<br />Source: World Development Indicators Database – World Bank<br />
  9. 9. THE EMERGING MIDDLE CLASS<br />
  10. 10. WHAT IS THE MIDDLE CLASS<br />INCOME IN BRAZIL?<br />US$ 7,200-US$ 31,200/Yr – 25% growth in 5 yrs<br />Source: CPS/FGV, IBGE (PNAD) – Relates to Family Income<br />
  11. 11. EMERGING MIDDLE CLASS GROWTH<br />56%<br />of Brazil’s population<br />= 120MM<br />49%<br />of Brazil’s population<br />= 91MM<br />38%<br />of Brazil’s population<br />= 64.1MM<br />2003<br />2008<br />2015<br />Source: CPS / FGV / PNAD / IBGE<br />
  12. 12. 49% OF THE COUNTRY’S POPULATION IS IN THIS RANGE<br />IT’S MORE THAN 90 MILLION PEOPLE<br />MORE THAN GERMANY’S ENTIRE POPULATION<br />Source: CPS/FGV, IBGE (PNAD)<br />
  13. 13. THOSE PEOPLE REPRESENT, TODAY, <br />THE LARGEST CONSUMPTION MARKET<br />AND/OR POTENTIAL MARKET IN THE COUNTRY.<br />46% OF ALL INCOME<br />67% OF THE EMPLOYED WORKFORCE<br />58% OF TOTAL COMPUTER OWNERS<br />50% OF TOTAL TV OWNERS<br />Source: CPS/FGV, IBGE (PNAD)<br />
  14. 14. AND THESE NUMBERS REFER TO 2008!<br />IN 2015, THEY WILL REPRESENT<br />56% OF THE POPULATION, WITH <br />54%* OF THE PURCHASING POWER. <br />Source: CPS/FGV, IBGE (PNAD)<br />* Projection<br />
  15. 15. HOW IS THIS AFFECTING THE CONSUMER MARKET?<br />
  16. 16. WHAT HAVE WE LEARNED<br />
  17. 17. NEW PRODUCTS<br />AND SERVICE NEEDS<br />WHAT KIND OF CAR<br />APPEALS TO THIS CLASS?<br />WHAT KIND OF BEVERAGE<br />DO THEY DRINK?<br />WHAT SERVICES<br />DO THEY NEED?<br />
  18. 18. HALF GLASS FULL IS THEIR WAY OF SEEING LIFE <br />They share pride and satisfaction of their<br />achievements and have an optimistic view of the future.<br />
  19. 19. “<br />FAMILY IN <br />HONEYMOON<br />Parents and children<br />are building a better future together<br />with no conflict of generations .<br />”<br />
  20. 20. “SHE” IS THE <br /> LEADER<br />Although women are not the<br />main income providers, they have<br />great influence on purchasing. <br />Mothers are the foundation<br />of the family, recognized<br />by their community.<br />
  21. 21. “<br />“MY COMMUNITY<br />IS MY WORLD”<br />The community is their extended <br />Family – help lives next door.<br />Services must understand this <br />kind of interactions.<br />
  22. 22. “<br />THE GROCERY STORE ON THE CORNER IS MY EVERYDAY PARTNER<br />”<br />Small markets understand these people’s financial circumstances, allowing flexible and delayed payments.<br />
  23. 23. TECHNOLOGY MEANS SAFE <br />ENTERTAINMENT<br />Buying electronics for the household <br />is not a matter of social status, <br />it’s about the well-being of the family. <br />With computers at home, children are safer and<br />spend less time out in the streets.<br />
  24. 24. TECHNOLOGY AS<br />A SOCIAL LADDER<br />As it becomes more accessible, technology <br />now means more than job opportunities – <br />it’s a passport for a better future <br />and an icon for social ascension.<br />
  25. 25. WHAT IS<br />COCA-COLA BRAZIL <br />DOING?<br />
  26. 26. BETTER FUTURE<br />COCA-COLA BRAZIL’S INTEREST<br />COMMUNITY INTEREST<br />YOUNG PEOPLE<br />INCOME GENERATION<br /><ul><li>Enterprising
  27. 27. First Job </li></ul>vision<br />BUSINESS + COMMUNITY GROWTH<br />Coca-Cola and the community sharing<br />a single goal: a better future for everyone.<br />
  28. 28. BUILDING A BETTER FUTURE <br />FOR THE EMERGING<br />MIDDLE CLASS, <br />THE COUNTRY AS <br />A WHOLE GROWS <br />STRONGER AND SO<br />DOES THE COCA-COLA BUSINESS<br />THIS IS SOCIAL BUSINESS.<br />
  29. 29. TO MAKE IT HAPPEN,<br />WE CREATED THE <br />“COLETIVO” COCA-COLA.<br />
  30. 30. VIDEO<br />
  31. 31. TODAY, WE HAVE 6 COLETIVOS<br />IN OPERATION.<br />There will be many more throughout the country in the future<br />2009 <br />6 coletivos<br />2020 <br />1500 coletivos<br />
  32. 32. TO MAKE IT HAPPEN, COCA-COLA BRASIL USES TECHNOLOGY IN A “PLAYFUL WAY”<br />Besides out-of-home activities, students can learn through simulations of POP duties in a computer game.<br />
  33. 33. TECH IS THE FUTURE<br />
  34. 34. EVERY YEAR, PEOPLE GET MORE CONNECTED<br />Internet Penetration in Brazil<br />89%<br />90%<br />80%<br />76%<br />71%<br />70%<br />60%<br />45%<br />50%<br />39%<br />40%<br />33%<br />25%<br />30%<br />21%<br />20%<br />15%<br />10%<br />0%<br />2007<br />2008<br />2009<br />Upper class<br />Lower class<br />Middleclass<br />Source: IAB indicadores, 2009<br />
  35. 35. INTERNET CAFES BECAME THE MEETING POINTS FOR THE YOUTH<br />INTERNET ACESS OUT OF THE HOUSEHOLD<br />RESPONDS FOR 49% OF ALL ACCESS<br />THERE ARE MORE THAN 90,000 I-CAFES IN BRAZIL, <br />COMPARED TO 2,600 BOOKSTORES OR 2,300 MOVIE THEATERS.<br />Source: FGV<br />
  36. 36. WE DON’T HAVE TO PERSUADE MIDDLE CLASS MEMBERS ABOUT THE IMPORTANCE OF TECHNOLOGY<br />91%<br />agreeitisveryimportantthatchildren haveaccess to computers.<br />80%<br />believethatpeoplewho don’t understand technology<br />aretrappedinthepast, and have less opportunities in life.<br />79%<br />agreethat computers are essential <br />and it’simpossibletolivewithoutthem.<br />44%<br />ofyoungpeopleagreetheyfeel addicted to technology.<br />Source: McCann-Erickson/Data Popular research, 2008<br />
  37. 37. TECHNOLOGY IS ASSOCIATED WITH STATUS, INDICATING PURCHASE INTENT<br />68% intend to buy a widescreen TV<br />64% are thinking of buying or changing their computers<br />61% are considering buying/changing their digital cameras<br />Source: McCann-Erickson/Data Popular research, 2008<br />
  38. 38. LAPTOPS ONLY FALL BEHIND CARS<br />AS A SIGN OF STATUS<br />High Status Products<br />78<br />64<br />51<br />New car<br />Designer watch<br />Laptops<br />Source: McCann-Erickson/Data Popular research, 2008<br />
  39. 39. AND THEY ARE ALSO BUYING ONLINE:<br />59%<br />of online buyers<br />in Brazil come from<br />the middle class, <br />representing<br />10% of turnover.<br />Source: e-bit<br />
  40. 40. FINAL MESSAGE<br />
  41. 41. TO ACHIEVE SUCCESS IN BRAZIL, <br />ONE NEEDS TO CONQUER<br />THE EMERGING MIDDLE CLASS.<br />THEY ARE THE FUTURE.<br />AND THE FUTURE HAS ALREADY STARTED.<br />
  42. 42. BEING SUCCESSFUL IN BRAZIL (AND LATIN AMERICA) WILL MAKE A DIFFERENCE FOR EVERY BUSINESS.<br />This is the decade of Brazil: <br />The land of the Olympics, <br />the Football World Cup, <br />the energy of ethanol and oil.<br />And home to the world’s fastest growing consumer power.<br />
  43. 43. THANKYOU<br />MARCO SIMÕES<br />MSIMOES@LA.KO.COM<br />

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