Coca-Cola Brazil - Tubainas War
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 17.37% per year. In year 2003 it was 95.3 liters & projected 104.9 liters in 2008 indicating growth.
• As of 2003, the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share.
• Coca Cola is the leader in Brazilian market holding 50.1% market share, AmBev with 17.2% market share is at 2nd position and others-Tubainas accounting for the rest (Dec’ 2003).
• The cola flavor accounted for 45% of the Brazilian soft drink market.
• Tubainas is low price soft drink as compared to other big brands. The main reason being that they are manufactured by small manufacturers with low operational & administrative costs. Also the major factor is that these manufacturers did not have legal existence & did not pay taxes.
• Majority of Brazilian population resided in urban area & due to underdeveloped distribution channel soft drink market is untapped.
• Cola was the Brazilian favorite flavor (41.8%) followed by Guarana (23.9%) and Orange (11.4%).
• Soft drinks were sold in variety of containers made of glass, PET and aluminum, having capacities that varied from 200 ml to 2.5 liters.
• The
• 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 17.37% per year. In year 2003 it was 95.3 liters & projected 104.9 liters in 2008 indicating growth.
• As of 2003, the Coca Cola brand (regular and diet) was the leader in the Brazilian soft drink market with 35.6% market share. Second closest was Guarana Antartica with 7.9% market share followed by Fanta with 7.1% market share.
• Coca Cola is the leader in Brazilian market holding 50.1% market share, AmBev with 17.2% market share is at 2nd position and others-Tubainas accounting for the rest (Dec’ 2003).
• The cola flavor accounted for 45% of the Brazilian soft drink market.
• Tubainas is low price soft drink as compared to other big brands. The main reason being that they are manufactured by small manufacturers with low operational & administrative costs. Also the major factor is that these manufacturers did not have legal existence & did not pay taxes.
• Majority of Brazilian population resided in urban area & due to underdeveloped distribution channel soft drink market is untapped.
• Cola was the Brazilian favorite flavor (41.8%) followed by Guarana (23.9%) and Orange (11.4%).
• Soft drinks were sold in variety of containers made of glass, PET and aluminum, having capacities that varied from 200 ml to 2.5 liters.
• The