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Transcript of CC Brazl
Beverage retailer, manufacturer and marketer
Offers 500+ brand and has 3500+ beverages
125 years in business
139,600 worldwide employees
49 consecutive years with icreased revenues MISSION AND VISION STATEMENT " At the Coca Cola company we strive to refresh the world , inspire moments of optimism and happiness,create value and make a difference". PEOPLE
PRODUCTIVITY WHY COKE? PSYCHOLOGICAL
CRITERIA A persons' motivation, perception, believes and attitudes towards a certain product is achieved through the product's notion of HAPPINESS FINANCIAL CRITERIA People demand Coca Cola simply because they are willing to buy and they are capable of buying it A certain amount of the population padronises Coca Cola.
It marks their lifestyle identity Coke contains several beneficial ingredients aside from the simply being refreshing.
It contains Kola nuts for promoting energy and it is consumed throughout the world. In a group where we belong people PERSONAL CRITERIA HEALTH CRITERIA SOCIAL CRITERIA THE BRAZILIAN SOFT DRINK MARKET Brazil was among the top ten largest economies in the world into 2004. The latin American Titan more than 700 manufacturing plants more than 3,500 brands of soft drinks Nonalcoholic drink sales in Brazil underwent intensive growth for over two decades. The Soft-Drink Market in the 90s In 1986, market was slightly below 4.9 billion liters. In 1994, an estimated 6.44 billion liters of nonal- coholic drinks. BRAZILIAN SOFT-DRINK MARKET EVOLUTION IN THE 20th CENTURY Volume 1000 liters Growth % SWOT Brazil has the fastest growing GDP per capita in the BRICS
Brand is expected to gain more and more weight in the consumers' decisions
It is dangerous for Coca Cola to compete on prices, without building a long term strenght of its brand in Brazil HOW TO REACT COMPARATIVE
ADVANTAGES Strong distribution channels High perceived quality Low prices Ability to adapt Small communities are hard to reach, but have a huge potential. Quality is the most important attribute for class C consumers Second most important attribute Welfare is increasing. Consumer behaviour and needs are changing Focus on distribution to small shops Improve brand quality perception through an integrated m.mix. Stop competing on prices.
Tubainas will always win. Be flexible and delegate authority to the Brazilian subsidiary WHAT HOW One way to reduce the price of Coca Cola is reducing the tax that is applied by Coca Cola. This will be possible only if Coca Cola approaches the Brazilian government as the policy makers. To do this Coca Cola has to reduce the production cost, choose the cheaper raw material and thus make the quality of the soft drinks worse. 1.Reduce the price of Coca Cola For example Coca Cola Brazil could sponsor some important events locally, nationally, or regionally such as carnavals.
2.Improve the relations with the Brazilians consumers Brazilian consumers may have different flavor preferences than those of other countries 3.Observe the needs of the consumers In order to obtain a tax reduction deal so that lower tax can result in lower sell price and thus higher profits for TCCC. 4.Approach the government 5.Partnership with Local Brands Returnable glass bottles ( green-marketing).
Develop new innovative flavors
Fresh and brilliant advertisement.
Innovate packaging and design 6.Create new technology
The introduction of the new Pepsi twist lead to a sales increase of 28% Political or Economical difficulties alienated for a long period in world economy
Hostile to global brands
Unfair competition (B brands)
Inconsistent Policy Cooperation & Partnership to make up for weaks points Cooperation Pepsi-Ambev
Expansion in new point of sale
Pepsi helped Ambev to distribute its products in oversea markets
Pepsi grew steadly in brazilian market
Partnership Coca Cola-Norsa
Coca Cola regained control of distribution in several northeastern states
Coca Cola’s market share increased by 2,5%
Tubainas’s share decrease by 4% Product diversification Understand emerging markets’ speciality Need a careful analysis and research-Quality
Business Decentralization-Risk Aversion
Brand image marketing-Get rid of negative effect Combination of global image
and localization Developing localized items
special events sponsorship THANK YOU FOR THE ATTENTION THANK YOU FOR THE ATTENTION COMPANY HISTORY Dr. John Stith Pemberton created the first syroup on 1886
Asa Griggs Candler was given the rights to Coca-Cola for $2300
Sold bottling rights to Joseph Whitehead and Benjamin Thomas for $1
Began expanding in 1923
Roberto Goizueta became CEO in 1981 and used "intelligent risk taking" to expand
Entered new markets and brands during the 90s for further growth
Universal product COCA COLA COMPANY Things go better with Coke :) or brand choices. around us end to influence specific products MAIN COMPETITORS ANALYSIS BRAZIL 3) Coca Cola is try to build the good will & image in local community by sponsoring & participating in local , regional & national events. This will help Coke to increase
social acceptance in community 2) Looking at increasing market share of Guarana flavor Coca Cola renovates production facility & planted 200 hectares of Guarana. This will gives Coke cost benefit with control on raw material supply & quality. 1) Increase in Product Mix by expanding the product line through brand-extension in market. Like new flavors such as citrus & strawberry. This helps Coca Cola to increase its visibility in market. They can able to cater all different type of customer with different variants, which result in increased brand loyalty. by Coca Cola in Brazil PROS of the several strategies implemented CONS of the several strategies implemented by Coca Cola in Brazil 3) Buy back franchisees operation s to promote change in distribution channel,same result in negative effect of profitability. 1) Coca Cola acquired few competitors to stop growth of Tubainas, but it will notsucceed due to there is no entry barrier for new comers & former owners. 2) To compete with low price local brand Coca Cola reduced its prices by 48 %,which result in negative effect of profitability. so a solution may be to enlarge the range of flavors according to the specific preferences of Brazilian consumers with some market researches Better distribution: broader accessibility in snack bars and grocery stores with cheaper prices. Can create opportunity to approach the Brazilian market PEACE AND LOVE MAKE IT POSSIBLE! Alessandra Capogrosso