The team proposes introducing Guarana, a Brazilian soft drink known for its natural energy, to China. Their objectives are to capture 5% market share in Guangzhou within 2 years and generate $5M in sales while breaking even. Their strategy is to target active sports fans by positioning Guarana as a refreshing drink that provides natural energy from Brazil. They will sponsor Brazilian football players and leverage Guarana's sponsorship of the Brazilian national football team. Financially, they forecast sales growth reaching breakeven in quarter 3 of year 2, and measure success through revenues, expenses, customer satisfaction, and brand recognition metrics.

1. INTRODUCING
Guarana
TO CHINA
Team 8 Waitan
Malindile Nkambule
Ashley Neyland
Santiago Liotta
Alexey Belov
Maximilien Meilleur

2. Marketing
Objectives
 Introduce Guarana Antartica to the
Chinese consumer
 Capture 5% of the soft drinks market in
the Guangzhou area and progressively
expand to the rest of China
 Be in the top 5 soft drink (in market
shares) within 2 years in the areas where
Guarana is distributed
Marketing
ObjectivesFinancial
Objectives
 Generate sales of $5M
 Breakeven within 2 year from launch

3. Agenda  Target Market
 Market Size
 Competitors
 Target Segment
 Target Geography
 Marketing Strategy
 Positioning
 A case for football
 Product & Pricing
 Promotion
 Supply Chain
 Financial Projections
 Advertising Spending
 Sales Forecast
 Breakeven Analysis
 Controls & Success Measures

4. +
Target Market
Market Size
Competitors
Target Segment
Target Geography

5. Carbonated
Soft Drink
Extract from
GUARANA BERRY
Natural Energy
from
Amazonia, BRAZIL
Official sponsor of
Brazil National
FOOTBALL TEAM
Owned by
INBEV
Top 15th soft drink sold
IN THE WORLD
(Brazil, Japan, Europe, Latin America..)
What is Guarana?

6. Market Size: Capturing 5% of the market*
represents a $19M opportunity
Guarana’s Market Share (5%)
• Revenue = $19 million
• Volume = 35 million liters
Guangzhou Greater Area (6%)
• Revenue = $380 million
• Volume = 700 million liters
Carbonated Soft Drinks (22%)
• Revenue = $6.3 billion
• Volume = 11.8 billion liters
Soft Drink Market in China (2010)
• Revenue = $28.6 billion
• Volume = 47.6 billion liters
* 5-year plan

7. Competitive Landscape
Pepsi
Pepsi Light
Coke
Sprite
Diet Coke
Coke Zero
Fanta
Red Bull
Guarana
Caffeine
Sugar
Caffeine free
Sugar free/Healthy
Company % Share
The Coca-Cola
Company 65.10%
PepsiCo, Inc. 26.70%
Guangdong Jianlibao
Group Co., Ltd 3.30%
Sunkist Growers, Inc. 0.50%
Other 4.40%
Total 100%

8. - Male/Female 16-35
- Active Lifestyle
- Sports Spectators
- Plays Sports 3-5 times a month
Active
Sports
Fan
“Danny Xu is 27 years old, plays badminton twice a month and
occasionally goes to the gym. He likes meeting up with his friends and
watch sports on TV, especially football.”
Market Segmentation: Active Sports Fan
600 million football fans
3.5 million regular stadium attendants
IN CHINA:

9. Targeted Market:
Greater Guangzhou Area (65million)
Greater
Guang
zhou
3rd
biggest city
en China
65million
inhabitants
Nº 1
football city
in China
2Major
professiona
l football
teams
8Brazilian
top players
in those
teams
Strong
International
Amateur
League

10. From a SWOT analysis, key facts emerged that
helped in developing our marketing strategy
Weaknesses
ZERO brand awareness in China
(education needed)
HIGH sugar and citric acid content
Threats
FRAGMENTED market with many
competitors
At the mercy of PEPSICO as the
only official distributor
Strengths
UNIQUE natural energy and taste
Sponsor of the BRAZILIAN football team
Opportunities
The soft drinks market is GROWING at a
rate of 20% in China
Many SPORTS FANS in China/Guangzhou

11. +
Marketing Strategy
Positioning
A case for football
Product & Pricing
Promotion
Supply Chain

12. How we will position Guarana in
China
Product position
Brand position in China
FRESHNESS
NATURAL ENERGY
DRINKABILITY
Guarana is positioned in the niche between Cola products and coffees. It
is easier to drink than coffee, and fresher than Coca-cola
To target the “active sports fan” segment, we will position Guarana as the
refreshing soft drink that delivers natural energy. We will leverage its Brazilian
origin and the equity and fame of the Brazilian national football team. Finally, we
will also emphasize the following attributes of the brand:
… AND ITS FOOTBALL
ASSOCIATION!

13. A case for targeting football in China
2002: China national football team qualifies for the first
time for the World Cup finals (Korea-Japan World Cup)
2008: Beijing Olympics fuels national
support for sports teams in general.
Football becomes the most watched sport in
China. Estimated viewership: 600M
2010: South Africa World had cumulative viewership of
3.2bn
2014: Brazil will host the 20th World
Cup
Guarana is the official
sponsor of the Brazilian
National Football team!!

14. Product & Price
 Format
 Aluminum can, 350ml
 Packaging
 Consistent with the international
packaging (no major
modifications)
 Brand name
 Remains the same: Guarana
Antartica
 Chinese / English Brand name &
slogan: “Nature Energy from Brazil”
 Price
 The products in the most
direct competition (CocaCola,
Sprite) are sold for 2,50RMB
 We will price Guarana at
2,70RMB and introduce it
with a 15% discount
 Price after discount:
2,30RMB

15. Supply Chain: we will leverage the
existing capabilities
•Produce guarana
berry concentrate
•Ship to bottling plants
worldwide
Amazonia
InBev Plant
•Receive guarana
berry concentrate at
InBev-operated Plant
•Bottling for Japanese
market
•Distribute to Chinese
partner
Japan
InBev Plant
•Bottle Guarana with
Chinese market
specifications
•Ship to distribution
center
Guangzhou
PepsiCo Bottling Plant
•Distribute to retailers
and small shops
through their
established network
Guangzhou
Tingyi Distribution
Center
Inbev-PepsiCo
Distribution Alliance
Pepsico/Tingyi
Joint Venture
This part of the supply chain is already in operations as
InBev is already producing Guarana in Japan.
InBev already has an agreement for PepsiCo to be the
international distributor of Guarana Antartica.
The PepsiCo/Tingyi joint venture is already signed and will be
effective in March 2013

16. Promotion: marketing mix by quarter
Create buzz
through ad
partnerships with
famous football
players
Q0
Unaware
Strengthen
position in
market
Build momentum
for World Cup
Q3
Available Gain repeat
customers
through
recognition as a
sponsor of the
World Cup
Q4
Repeat
Increase
awareness
through initial
promotional
discount of 15%
Q1
Aware
Get customers
to try through
sample
distribution at
sports events
Distribute
promotional
merchandise
Q2
Trial
- Two Brazilian
players on the
Guangzhou
Evergrande football
team.
- Sample distribution
at Guangzhou’s 5
main sport centers
- Leverage brand
sponsors (players) in
billboard and POS
advertising in GZ
- Launch micro website
supporting world cup
campaign
- Sign two more players
in preparation for the
World Cup buzz
Launch date:
June 1st, 2013

17. +
Financial Projections
Advertising Spending
Sales Forecast
Breakeven Analysis
Controls & Success Measures

18. Advertising Spending, year 1
Player Sponsorship $200,000 0 0 0 $300,000
Brand Support
Advertisement
$150,000 $200,000 $120,000 $120,000 $250,000
Q0 Q1 Q2 Q3 Q4
Sign exclusive yearly contracts with top players form the Guangzhou top teams to become the brand
ambassadors
Players images will be used on promotional material (TV, billboards ads…) and events.
Player Sponsorship Program:

19. Sales Forecast
Y1 Y2 Y3Q1 Q2 Q3 Q4
($,000) Q1 Q2 Q3 Q4
Cumulative Sales 950 1,950 3,000 4,200
Quarterly Sales 950 1,000 1,050 1,200
($, 000) Y1 Y2 Y3
Cumulative Sales 4,200 10,600 19,600
Yearly Sales 4,200 6,400 9,000
What’s in it for PepsiCo?
As our distributor, they will get 8% of our sales. Year1 revenues: $340,000
Annual Sales Growth: 30%
Expected Market Share: 1.1%
Annual Sales Growth: 40%
Expected Market Share Y3: 4.7%
Quarterly Cumulative Sales, Year1 Yearly Cumulative Sales, 3Y

20. Breakeven analysis: we will breakeven
in Q3, year2
Year1:
10.1M
We know that the average contribution margin for Guarana worldwide is 18%.
Retail Price: $0.43 (2.70RMB)
Contribution margin: $0.09
Cumulative Costs
Year 1: $2.2M
Q0
Units Sold
Year 2 Year 3
Costs
Breakeven point:
Q3 year 2

21. We will control and measure the
success of the implementation
 Revenues & Expenses: monthly and quarterly review of actual
performance compared to planned.
 Customer Satisfaction: quarterly analysis of repeat customers
and net promoter score (word of mouth)
 Brand Recognition: quarterly analysis of purchase intent and
brand awareness

22. THANKYOU!
Team 8 Waitan
Malindile Nkambule
Ashley Neyland
Santiago Liotta
Alexey Belov
Maximilien Meilleur