International Marketing Management

International Marketing Management - Memorandum To: Mr....

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Memorandum To: Mr. Bryan Smith, President of Coca-Cola Brazil From: Michael Samuels Date: 5/6/10 Re: How to Improve Performance in the Brazilian Market CENTRAL PROBLEM The unstable market share in Coke’s Brazilian market coinciding with low product profitability margins compared to sales volume presents the biggest and most immediate problems within the region for the Coca-Cola Company. Competition from global and domestic beverage producers have begun cutting into Coke’s significant market share, and these new entrants are becoming more and more prevalent throughout the country. Furthermore, low cost local companies production of a new sweet beverage called “Tubainas” have been distributing their product illegally by selling without taxes which makeup 40% of the cost of beverages. Reestablishing Coke’s growing market share along with, and perhaps more importantly, improving profit margin on the company’s sales volume is the primary objective. Developing new strategies and systems will be fundamental in succeeding in the changing marketplace within Brazil. KEY ISSUES There are many significant issues to address when formulating a proper implementation strategy. These issues must be rectified in order to be successful in accomplishing the goals Coca-Cola has. The key issues are as follows: Pepsi, Coke’s largest global competitor, has partnered with Ambev, Coke’s largest Brazilian competitor. This partnership resulted in a 28% growth in sales for Pepsi, despite a two percent slump in the market, much of this as a result of a new lemon flavored soda entitled: Pepsi Twist. Small local producers who illegally sell their Tubainas product without taxes have carved out a 32% share of the
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International Marketing Management - Memorandum To: Mr....

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