Coca-Cola's Marketing Challenges in Brazil: The Tubaínas War
This case presents the challenges the Coca-Cola Company faced in Brazil. Not only was Coke up against its nemesis, Pepsi, it also had to compete with hundreds of local brands, many of which did not pay taxes. These local brands were generically called tuba?nas. The case provides background information on the history of Coke in Brazil, trends in the Brazilian soft drink market, and on competition by Pepsi and the many local soft drink firms. In addition, Coke's strategies for competing are outlined. The student is asked to analyze the information presented in the case and to make recommendations to Coke on how to better compete in Brazil.
This case is appropriate for both undergrad and MBA international marketing classes. It is ideally suited for discussing international branding and strategies MNCs can use to compete with local brands. The teaching note includes the citation of three excellent articles focusing on global brands versus local brands. These three articles plus the case cover most issues relating to this topic and can be used in conjunction for a discussion covering at least two hours.