Emerging Markets (Buss4)

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Emerging Markets is used to describe a country in the process of rapid growth and industrialisation Opportunities- Strong Economic Growth /Rising consumer incomes and growing ‘middle-classes’/Opportunities for joint ventures with local businesses Threats- Culture/varying customer needs/Difficult to protect ideas from competition due to inadequate laws/Infrastructure could be poor, making distribution and marketing difficult The US soft drinks giant announced a 6% rise in operating revenue to $11.14bn (£6.98bn) in the first three months of the year on the same period a year ago.It said it had seen volume growth in all regions that it operates in but highlighted India (+20%), China (+9%) and Brazil (+4%).Net profit for the quarter rose 8% on the year to $2.05bn.As well as Coke, the group owns other brands including Fanta, Sprite, Vitaminwater, Powerade, Minute Maid and Del Valle.Volumes grew 9% at its still beverage division, outperforming the 4% growth in sparkling beverages. In 1994, three years after the barriers to international trade had opened in India, Kellogg’s decided to invest US $65 million into launching its number one brand, Corn Flakes. The news was greeted optimistically by Indian economic experts such as Bhagirat B Merchant, who in 1994 was the director of the Bombay Stock Exchange. ‘Even if Kellogg’s has only a two percent market share, at 18 million consumers they will have a larger market than in the US itself,’ he said at the time.However, the Indian sub-continent found the whole concept of eating breakfast cereal a new one. Indeed, the most common way to start the day in India was with a bowl of hot vegetables. While this meant that Kellogg’s had few direct competitors it also meant that the company had to promote not only its product, but also the very idea of eating breakfast cereal in the first place.The first sales figures were encouraging, and indicated that breakfast cereal consumption was on the rise. However, it soon became apparent...
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