Coca-Cola Brazil - Tubainas War Essays

Decent Essays
1. Briefly summarize the major characteristics of the Brazilian soft drink market.
• There were more than 3500 brands of soft drink in Brazil, manufactured in more than 700 plants in 2004. From 1986 to 2003 nonalcoholic drink consumption lead to 11.6 billion liters with average year to year growth of 13.92%.
• Post economic stabilization in Brazil, per capita consumption of soft drinks shot up 60% from 1994 to 1999.
• According to Brazilian Market Research Association classification of five social classes, class C accounts for 28% of the total national consumption of soft drinks and these class C people favor price affordability at comparable quality.
• Per Capita Consumption of Soft Drink in Brazil is increasing by average rate of
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|Franchisee |Cons |Buy back of franchisees operations to promote change in distribution channel, had same result - negative effect of|
|acquisition | |profitability. |

2. Perform a SWOT analysis of the Coca-Cola Company in Brazil.
|Strengths |Weakness |
|World leading Soft drink manufacturer. |Underdeveloped distribution channel. |
|Market leader in Brazil soft drink market by more than 50% market share. |Price of Coca Cola product is high compared to local manufacturer |
|Established infrastructure in Brazil (39 Bottling plant, 25000 direct & |Brazil was Coca Cola’s third market in sales but ranked a worrisome 20th |
|250000 indirect employees & 9000 vehicle for distribution). |position in profitability due to drop in prices by nearly 30% since 1950’s. |
|Coca Cola having broad product mix in Brazil. Product Line Includes soft |Absence of
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