Coca Cola 's Marketing Challenges

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Evans Agbonsalo BUS 152A Professor Paula Ryan Case Write Up: “Coca-Cola’s Marketing Challenges” Problem Facing Coca-Cola: This case study is about Coca Cola’s company in Brazil and how they used different strategies to take over the soft drink industry and continue their strong growth, even with their market share decline in 1999. This shows that the Brazilian market was a big challenge for Coca Cola concerning sales, market share and profitability regardless of their name (existing high brand awareness all over the world). This was due to the significant growth of the Tubaínas (too-bah-ee’-nas) in Brazil change in the Economy. Tubaínas are known as the numerous brands of inexpensive sweet beverages, which are produced and distributed locally in Brazil by hundreds of small companies in the country. This caused stunted growth to Coca Cola even when they kept lowering their prices. This was their biggest challenge to date and they needed to overcome it in order to take over the market and be profitable. In inspecting Brazil’s economy in the 1990s, it is revealed that the Social Class C group benefited more compared to any other group because of the economic stability that happened. This resulted in the decline of market share for brand leaders in several categories, which included Coca Cola. The Social Class C consisted of typical workers in the lower middle class (about 12.6 million Brazilian households) and accounted for 28% of total national consumption of soft drinks.

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