• Extend Vitamin Water into Brazil• We will discuss– Country Outlook– Industry Outlook– Marketing Strategy– Future of Vitamin Water in Brazil

• Brazil: one of the top emerging markets

• Population of 196,342,592

• 8th Largest economy in the world (1.9 trillion PPP)

• GDP of 2.03 trillion (in US dollars)

• Government is pushing for more foreign investments

• Futbol is the most popular sport in Brazil

• Average age is 28.3 years old

• 90% of the population have TVs

• National language: Portuguese

• Many middle-class and elite Brazilians also speak English

• Soft drink market consists of – Bottled waters– Carbonates– Concentrates– Functional (energy and sports drinks)– Juices– Coffee– Tea

• Soft drink market generated 12.8 billion (US dollars) in 2007• Expected compound annual growth rate of 3.1% for the years 2007-

2012

• Coca-Cola is 1st in the country, Guarana Anarctica is 2nd

• Health and energy drinks are predicted to emerge as most preferred choice of all beverages in Brazil

• Independent retailers make up the largest distribution channel for soft drinks in Brazil

• License out Vitamin Water to FEMSA (contract manufacturing agreement)

• FEMSA is the 2nd largest Coca-Cola bottler in the world

• Vitamin Water was acquired by Coca-Cola in 2007 but operates as a separate business entity

• FEMSA has the resources and knowledge to adequately distribute Vitamin Water

• Focus on Brazil’s two largest and most dense cities– Sao Paulo– Rio de Janeiro

• Focusing on Middle to Upper Class• Market to teenagers, young adults and those that lead an active

lifestyle• Teenagers and young adults are more likely to try new products as

they are Experiencers (VALS framework)• Pursuing healthy and active lifestyle segments as consumers are

changing their lifestyles and raising health awareness

• Size of Vitamin Water will be 500ml

• Packaging will consist of Portuguese with “Vitamin Water” in English

• Introducing 4 flavors– Essential– Energy– Endurance– Multi-V

• $1 USD = $2.39 BRL (Brazilian Currency)

• Average bottled water price: $0.27 to $0.41 (in US currency)

• Average price for 600ml of Coca-Cola: $0.91 (in US currency)

• Price Vitamin Water at $0.80 (in US currency)1,75 BRL (Brazilian Currency)

• Using Coca-Cola FEMSA’s distribution network– 4 plants– 27 distribution facilities– Distribute to 107,398 retailers

• Plan to tap into convenience and other retail stores

• In the future we plan to enter other channels such as bars, clubs, restaurants, vending machines, and sporting arenas

• Position Vitamin Water as the new “it” drink that is a healthy alternative as well

• Convey that Vitamin Water is fun and tasteful and something that provides energy and balance for the day

• Plan on advertising through TV, magazines, stadium sponsorships, in-store displays, in-store promotions, and interactive websites

• Television– Vitamin Water is known for their funny and unique commercials

– The US uses celebrity endorsements and we want to continue this strategy in Brazil• Marta Vieria da Silva• Gisele Bundchen• Rodrigo Santoro

– Advertise on MTV Brasil, Big Brother, Malhacao, and ESPN Brasil

• Magazines– We plan on advertising in

• Claudia• Trip• Jornal dos Sports

• Estadio de Maracana futbol– Advertise on scoreboard and within the stadium– Goal is to offer Vitamin Water at concessions

• Interactive Website– Consumers will be able to view products we offer and locations

where Vitamin Water is available– Can leave comments, questions and suggestions– Have consumers vote on new flavor

• Trade and Consumer Promotions– Vitamin Water at end of aisles– Point of purchase displays– In-store sampling– Sampling inside Estadio de Maracana futbol

• Brazil is a great market to expand into

• Vitamin Water has the potential to become the number 1 preferred functional beverage in Brazil

• Overall Vitamin Water has a unique position as a great tasting, healthy, and functional beverage

http://www.youtube.com/watch?v=0T_wU8RaxXQ