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Transcript of COCA-COLA
The Tubainas War Roberta Rutigliano
mat. 643761 SWOT ANALYS PROS AND CONS OF STRATEGIES IMPLEMENTED IN BRAZIL PROS THREATS OPPORTUNITIES WEAKNESSES STRENGHTS BRAZILIAN SOFT DRINK MARKET Became a general term for low-profile soft drinks.
Sold at prices significantly lower than nationally marketed soft drink brands
This universe spanned from very small manufacturers to structured companies with regional coverage, considerable revenues and sizable market shares.
Market share 32% BRAND REPUTATION HUGE MARKET SIZE HIGHER PRICE COMPARED TO COMPETITION COMPETITION (AMBEV-TUBAINAS) Brazil among the top ten largest economies in the world in 2004, the "Latin American Titan" , major investment destination of global companies.
more than 3500 brands of soft drinks manufactured in more than 700 plants.
from 1986 to 2003 nonalcoholic drink consumption leaped up to 11.6 billion liters.
per capita soft drink consumption grew to 95.3 liters in 2003.
Cola was the Brazilians' favorite flavor (41.8% in 2003), followed by guarana (23,9%) and orange (11,4%) THE COMPETITION - AmBev AmBev the main Brazilian competitor, the fifth largest beer manufacturer, the seventh largest world beverage manufacturer.
Superior distribution structure one of the major competitive advantages.
March 2004 global alliance with Interbrew, the world's third largest brewer--> new beverage corporation InterbrewAmBev
AmBev's and Pepsi's partnership: AmBev was the largest Pespsi-Cola bottler outside the U.S. The Tubainas' Competitive Pressure CUSTOMER LOYALTY MARKET SHARE INTERNATIONAL RECOGNITION DISTRIBUTION CHANNEL INCREASING PER CAPITA CONSUMPTION MARKET GROWTH PRODUCT QUALITY MANY COCA-COLA'S BRANDS UNKNOWN LOW DIVERSIFICATION CONSUMER LOYALTY LOW PROFITABILITY HIGH ENTRY BARRIERS HEALTHY DRINKS LOW PER CAPITA COKE CONSUMPTION Through the brand extension the company gains visibility and recognition in the market as well as brand loyalty.
The product line extension allows the company to serve better the different tastes of Brazilian customers.
The participation in local, regional and national events helps the company to gain confidence and establish long term relationships with customers CONS cutting prices results in a loss of profitability
buying back franchisee operations in the attempt to stop tubainas' growth produces negative effect on profitability.
buying competitive brands doesn't prevent former owners from reentering the market or new competitors from emerging. WHAT SHOULD COKE DO TO BE MORE SUCCESSFUL IN BRAZIL? Establish close relationships with customers through social networks, advertising, events.
Realize partnerships with local brands to better appeal to customers.
Focus more on quality than on price, ending the price war with Tubainas.
Make investments to improve distribution channels to reach smaller communities with high buying potential. RECOMMENDATIONS TO COMPETE WITH B BRANDS IN EMERGING ECONOMIES Understand emerging markets conducting customer analysis and research.
Pay attention to culture customs and social habits.
Reduce costs by realizing economies of scale in raw materials purchase, production, distribution and sale.
Localize the marketing mix adapting products to local needs, adjusting prices without sacrificing quality, make heavy investments in promotion and achieve a consolidate distribution structure. LEGAL ISSUES