Kik cola market analysis and consumer appeal

KIK Cola

What factors must the company consider when considering the Brazilian market? The Japanese market?

More than anything KIK must think globally, but market locally. Different cultures bring differences in consumer tastes, advertising and packaging appeal, and purchase patterns. And, each country has its on rules and regulations regarding manufacturing, distribution and sales. Moreover, KIK has no unified, global brand to leverage when entering these new markets as do many other vendors of soft drinks such as Coca Cola and Pepsi.

What changes in their marketing mix might be required with regard to Brazil?

Brazil is a highly competitive market with established players vying for market share. KIK will need to explore its existing product portfolio and products already being offered in Brazil to determine what products are likely to achieve success. The intense competition, lack of brand recognition and the Brazilian economy may dictate lower price points for soft drinks even though KKK is already in the lower-cost private label business. Further, KIK will need to develop advertising and packaging that appeal to Brazilians. In addition, now that KIK is ready to be a global player it ought to consider establishing a unifying, global brand.

3. Outline what would be included in a marketing strategy KIK might design for Japan.

The soft drinks industry in Japan is dominated by off-trade sales. Understanding distribution channels and gaining access to them will be a key success factor. With a more diverse climate, seasonality may also affect sales more so than in other countries. All of the factors mentioned for Brazil hold true for Japan, but this more affluent market may be less price sensitive. In fact, this market may expect more upscale beverages.

4. Speculate on an appropriate market entry alternative and explain why you chose the alternative, and what factors you considered for each of the two potential markets.