COCA NOTES
Introduction
For a decade Coca cola’s brazilian subsidiary tried to stop the growth of tubainas ( inexpensive, carbonated and sweet beverage) they are sold for more than a half century by hundreds of micro and a few medium-size manufacturers.
Before Brazil = coca’s third largest operation and company’s second largest international market.
Until 1995, tubainas were not a threat but after environmental changes, tubainas market grew and jeopardized the company’s profitability.
Different strategies by coca over Pepsi gained market share thanks to partnership with Brazilian beverage manufacturer ambev and the years. Cola war (pepsi vs coca). + successful launch of pepsi twist.
Background
Coke performance in Brazil could be improved because social economic position similar to mexico
But average consumption of coke in brazil quite low only 144 bottles per capita annually instead of 462 in USA and 402 in mexico
Even if brazil the 3rd market in sales for coca the profitability is 20th because of the competition of tubainas very cheap. They have to keep the price low (dropped of 30% since the 50’s.
Economic stabilization and consumer behavior in brazil
Better situation in Brazil: long period of high inflation and economic stagnation, there was a successful eco stabilization plan called plano real improved the purchasing power of the low income segment of population.
A lot of consumer goods are now accessible and consequently, after the 1995’s numerous segment = tremendous prosperity. Ex : consumption of soda shot up 60 % between 94 and 99
Categorization of Brazilian by marlet research association abipeme developed a social class classification. A to E
C = lower middler class and comprise 12,6 million households or 28% of the national consumption.
Market study : what affect the purchasing decision : * Price 38% of purchase decision * Quality 31% * Brand = least important factor only for personnal care product (22ù of the