Coca-Cola’s Marketing Challenge

Anup Maheshwari (15PT1-05)

Jasbir Sahi (15PT1-10)
Kishore (15PT1-11)

Guide:
Prof. Kirti Sharma
 Contents
• Case Background: Brazilian Soft Drink Market

• Value Proposition of Coca-Cola

• Strategy Adopted

• SWOT Analysis

• Recommendations
 Case Back Ground
• High Soft Drink penetration in Brazil

• Initially dominated by big brands

• Vivid profile consumers : A/B/C/D grades

• Evolution of small players : making dent

• MNC’s worry on profitability

*Cocacolabrazil.com.br
 Cola-Market
Global Brazil

*Cocacolabrazil.com.br

*ABIR, Case reference

Market Growth
 Brazil Cola Market Analysis
Threat of New Entrants -HIGH
a) Even small size company can compete at low cost
b) Little brand loyalty
c) Weak attention of Govt.
Threat of Substitute Product –HIGH
a) Buyers are price sensitive
b) Customers inclined towards varied taste
c) Substitutes are low cost products but gives variety to customers
Bargaining Power of Suppliers –LOW
a) Very Low
b) Easy availability of raw material and less capital investment
c) Low ,as supermarkets OK for all kinds of products
Bargaining Power of Buyers-HIGH
a) Very High
b) Multiple options at varied prices & taste
c) Competition among companies: advantage to consumers
 SWOT Analysis Weakness
Sluggish performance
Dropping Sales
Low Profit Margin
Seasonal Availability of Fruits

New entrant RC cola

Weak regulations

High Competition
Small Towns untapped

Threats
Shortage of vending machines
High Growth Rate
Large Market Size
Opportunities
 Value Proposition : Coca Col
PRODUCT PRICE
• Items price range : Accessibility to
• Innovation as per customer taste
all
• New product introduction • Re-introduced returnable bottles

• Improve Quality

PLACE
• Easy availability thru vending PROMOTION
machines • Sponsoring & participation in events

• Tie up’s for easy availability • Challenging the un organized sector

 Strategy Adopted : Coca Col
Defensive Strategy
a) Cut price : 1.8 $ 1.25 $
b) Increased variety and improvement in taste
c) Introduction of returnable bottles

Combat Strategy
a) Taking over of Competitive brands
b) Approach court to stop un organized/tax evasion segment
c) Change in marketing & distribution channels

Customer Attention:
a) Tie up with Norse to improve distribution
b) Vending machines for easy availability
c) Participation in social events
 Recommendation

Acquire Local players : Improve profitability

Form Local Partnerships : Gain market share

Introduce new products at rapid pace : Be First Mover

THANK YOU