Coca-Cola Femsa Strategy


Coca-Cola FEMSA is focused on sustaining and expanding its business across Latin American territories by continuing its multi-segmentation strategy. The strategy lays emphasis on the introduction of different product/packaging/price portfolios based on market groups. The company has segmented its market based on socio-economic levels and competition. The strategy is likely to enable the company define and manage multiple pricing and packaging portfolios at the same time and enhance profitability by driving consumption. As part of the strategy, Coca-Cola FEMSA has also put in place a market intelligence solution, which supplies critical information required by the company for targeting a particular channel or consumer segment. Subsequently, the solution gathers and processes data required for tailoring Coca-Cola FEMSA's product, price, distribution and package strategies for different consumers. The company expects this strategy to improve its sales further in the coming years. However, raw material prices and the influence of Coca-Cola on its operations will continue to determine the company's progress.
The company is also expanding its conventional distribution channel, striving to foster demand for returnable multi-serve packages. The company is also expected to continue with strategic acquisitions, a recent example for which is the takeover of Jugos del Valle (in 2006).
In 2005, Coca-Cola FEMSA introduced different packaging presentations for its flagship brand Coca-Cola at various prices ranging from Ps4 to Ps16, in Mexico. The company could adopt a similar strategy in other territories, in an attempt to promote demand for multi-serve beverage consumption.
Coca-Cola FEMSA's product innovations, particularly in the flavoured CSD segment, are expected to boost sales in the coming years, given the high growth potential for the beverage category. The company is also gearing to exploit the sound sales prospects for the non-carbonated beverages...