the power and influence of an emerging social class

MARCO SIMÕESCOCA-COLA

BRASIL

THINK LATIN AMERICA

How to Leverage the Power and Influence of An Emerging Social Class with Increased

Purchasing Power

Source: U.S. Census Bureau, International Data Base, 2009

WE ARE ALMOST200 MILLION PEOPLE. ALL SHARING THE SAME DREAM: A BETTER FUTURE.

BRAZIL IS DIVIDED IN 5 REGIONS, with many differences among them

Southeast Region has the largest cities (São Paulo and Rio), and is the industrial and financial center 43.0% of population 53.7% of GDP

The Northeast Region, beautiful beaches, but stricken by droughts 28.0% of population15.4% of GDP

The South Region has industries and agriculture14.5% of population15.8% of GDP

Central-West Region, the country’s capital (Brasília) and much of the farmland6.7% of population10.4% of GDP

Source: U.S. Census Bureau, International Data Base, 2009

North Region, mostlycovered by rainforest,is the largest region 7.8% of population4.5% of GDP

FIFA WORLD CUP 2014OLYMPICS 2016

SOCCER, SAMBA, CARNIVAL

ETHANOL, OIL, AIRPLANES

AMAZON, PANTANAL, ATLANTIC RAINFOREST

BRAZILIS ON THESPOTLIGHT

AND THE GOOD NEWS IS:THE FUTURE ISHAPPENING NOW.

WORLD’S 5TH LARGEST ECONOMY BY 2015A leading country in South America and one of the BRIC countries, is #8 today

Source: World Development Indicators Database – World Bank

Top Economies in 2008GDPUS$ billion

USA JAPAN CHINA GERMANY FRANCE UK ITALY BRAZIL

15000500040003000

2500200015001000500

THE EMERGING

MIDDLE CLASS

WHAT IS THE MIDDLE CLASSINCOME IN BRAZIL?

Source: CPS/FGV, IBGE (PNAD) – Relates to Family Income

US$ 7,200-US$ 31,200/Yr – 25% growth in 5 yrs

Source: CPS / FGV / PNAD / IBGE

EMERGING MIDDLE CLASS GROWTH

38%of Brazil’s population

= 64.1MM

2003


= 91MM


= 120MM

2008 2015

49% OF THE COUNTRY’S POPULATION IS IN THIS RANGEIT’S MORE THAN 90 MILLION PEOPLEMORE THAN GERMANY’S ENTIRE POPULATION

Source: CPS/FGV, IBGE (PNAD)

THOSE PEOPLE REPRESENT, TODAY, THE LARGEST CONSUMPTION MARKETAND/OR POTENTIAL MARKET IN THE COUNTRY.46% OF ALL INCOME67% OF THE EMPLOYED WORKFORCE58% OF TOTAL COMPUTER OWNERS50% OF TOTAL TV OWNERS


AND THESE NUMBERS REFER TO 2008!IN 2015, THEY WILL REPRESENT56% OF THE POPULATION, WITH 54%* OF THE PURCHASING POWER.


* Projection

HOW IS THIS AFFECTING THE CONSUMER MARKET?

WHAT HAVE WE LEARNED

NEW PRODUCTSAND SERVICE NEEDSWHAT KIND OF CARAPPEALS TO THIS CLASS?WHAT KIND OF BEVERAGEDO THEY DRINK?WHAT SERVICESDO THEY NEED?

HALF GLASS FULL IS THEIR WAY OF SEEING LIFE They share pride and satisfaction of theirachievements and have an optimistic view of the future.

FAMILY IN HONEYMOONParents and childrenare building a better future togetherwith no conflict of generations .

”“

Although women are not themain income providers, they havegreat influence on purchasing. Mothers are the foundationof the family, recognizedby their community.

“SHE” IS THE LEADER

“MY COMMUNITY

IS MY WORLD”

The community is their extended Family – help lives next door.Services must understand this kind of interactions.

“

THE GROCERY STORE ON THE CORNER IS MY EVERYDAY PARTNER ”Small markets understand these people’s financial circumstances, allowing flexible and delayed payments.

“

TECHNOLOGY MEANS SAFE ENTERTAINMENTBuying electronics for the household is not a matter of social status, it’s about the well-being of the family. With computers at home, children are safer andspend less time out in the streets.

TECHNOLOGY ASA SOCIAL LADDERAs it becomes more accessible, technology now means more than job opportunities – it’s a passport for a better future and an icon for social ascension.

WHAT ISCOCA-COLA

BRAZIL DOING?

Coca-Cola and the community sharinga single goal: a better future for everyone.

COMMUNITY INTEREST

COCA-COLA BRAZIL’S INTEREST

BETTER FUTURE

YOUNG PEOPLE

INCOME GENERATION• Enterprising• First Job

visionBUSINESS + COMMUNITY GROWTH

BUILDING A BETTER FUTURE FOR THE EMERGINGMIDDLE CLASS, THE COUNTRY AS A WHOLE GROWS STRONGER AND SODOES THE COCA-COLA BUSINESS

THIS IS SOCIAL BUSINESS.

TO MAKE IT HAPPEN,WE CREATED THE “COLETIVO” COCA-COLA.

TODAY, WE HAVE 6 COLETIVOSIN OPERATION.There will be many more throughout the country in the future

2009 6 coletivos

2020 1500 coletivos

TO MAKE IT HAPPEN, COCA-COLA BRASIL USES TECHNOLOGY IN A “PLAYFUL WAY”

Besides out-of-home activities, students can learn through simulations of POP duties in a computer game.

TECH IS THE FUTURE

EVERY YEAR, PEOPLE GET MORE CONNECTED

Source: IAB indicadores, 2009

Internet Penetration in Brazil

80%70%60%50%40%30%20%10%0%

2007

90%

2008

2009

71%

33%

15%

76%

39%

21%

89%

45%

25%

Upper class Lower classMiddle class

THERE ARE MORE THAN 90,000 I-CAFES IN BRAZIL, COMPARED TO 2,600 BOOKSTORES OR 2,300 MOVIE THEATERS.

INTERNET ACESS OUT OF THE HOUSEHOLDRESPONDS FOR 49% OF ALL ACCESS

INTERNET CAFES BECAME THE MEETING POINTS FOR THE YOUTH

Source: FGV

Source: McCann-Erickson/Data Popular research, 2008

WE DON’T HAVE TO PERSUADE MIDDLE CLASS MEMBERS ABOUT THE IMPORTANCE OF TECHNOLOGY

agree it is very important that children have access to computers.believe that people who don’t understand technologyare trapped in the past, and have less opportunities in life.

of young people agree they feel addicted to technology.

agree that computers are essential and it’s impossible to live without them.

91%80%79%44%

68% intend to buy a widescreen TV

64% are thinking of buying or changing their computers61% are considering buying/changing their digital cameras


TECHNOLOGY IS ASSOCIATED WITH STATUS, INDICATING PURCHASE INTENT

High Status Products


LAPTOPS ONLY FALL BEHIND CARSAS A SIGN OF STATUS

78

64

51

New car Laptops Designer watch

AND THEY ARE ALSO BUYING ONLINE:

of online buyersin Brazil come fromthe middle class, representing10% of turnover.

Source: e-bit

59%

FINAL MESSAGE

TO ACHIEVE SUCCESS IN BRAZIL, ONE NEEDS TO CONQUERTHE EMERGING MIDDLE CLASS.THEY ARE THE FUTURE.AND THE FUTURE HAS ALREADY STARTED.

BEING SUCCESSFUL IN BRAZIL (AND LATIN AMERICA) WILL MAKE A DIFFERENCE FOR EVERY BUSINESS.

This is the decade of Brazil: The land of the Olympics, the Football World Cup, the energy of ethanol and oil.

And home to the world’s fastest growing consumer power.

THANK YOU MARCO SIMÕES

[email protected]

the power and influence of an emerging social class

Business