The paper "Foreign Market and Market for Energy Drinks Issues" is a perfect example of a Macro and Microeconomics Case Study. The market for energy drinks, in Brazil, is small (Russell, 2012). According to Russell (2012), Brazil had an off-trade of approximately 31m liters of energy drinks volume in 2010, which is just 1% of global energy drinks volume. Nevertheless, in the category of soft drinks, energy drinks were the ones, which had tremendous growth in 2010, with a growth of 33%. This indicates that the growth of energy drinks in Brazil is anticipated to increase by 14% per year (Russell, 2012).
This growth is expected to be at the peak during the 2014 Brazil world cup. What needs to be done to ensure this growth is attained is to ensure that energy drinks are availed, lower price points are adopted, and new positioning is used for this product. This will ensure that the product has the ability to attain its desired market presence. This will occur since Brazil is thirsty for sport and energy drinks, which means satisfying this market, will demand the allocation of adequate resources from companies and distributors of sport and energy drinks in the country. Brazil occupies 8.5m km2 land.
The country is ranked sixth in terms of population with a population of 185 million people. Among this population, the majority are the young individuals while the old occupy approximately 6.2% of the population (Australian Government, 2012). The country is beautiful with fantastic beaches and scenery, which act as tourist attraction centers. Further, the country has low risk with respect to terrorism, war, hurricanes or SARS. Moreover, Brazilian are cheerful and friendly people (Ronnie, 2012).
These are clear indications that the introduction of a new product (energy drinks) into this country will lead to the attainment of considerable benefits to the population and the earning of revenues to the marketer and distributor of the product. Actually, energy drinks are a product, which has higher demand among the young as it is for the Brazilian population, which is composed of young people as the majority. Economic and Financial Environment Brazil's economy is characterized by well-developed and large service, manufacturing, mining, and agricultural sectors, which enabled the country to have a presence in world markets.
Economic forecasting agency have predicted that the economy of Brazil will keep on growing. This indicates that investment in this country is viable. As such, marketing energy drinks in this country will lead to the attainment of benefits instead of losses from the investment activity, which will be adopted. Economic development in Brazil is strengthened by the overwhelming performance of the export sector and the increment of domestic demand for products such as soft drinks. As the international financial environment is changing, Brazil has established adequate international reserves, which have contributed to sustained growth.
Self-sufficiency, in Brazil, has been achieved through the creation of enormous internal markets and the diversity of resources. The inflation and interest rates in Brazil are low (Brazil, 2011). This acts as an effective enticement for foreign investment in the country. Moreover, the country has depicted a sustainable growth of its economic and financial environment. As such, the marketing of energy drinks in this country will result in the earning of revenues to higher levels than expected.
This will occur since the economic environment warrants a return from investment in this country. Figure 1 indicates that international reserves for Brazil have been having a positive trend since the year 2003. This is a clear illustration that the marketing of energy drinks in this country will lead to the earning of revenues since economic and financial shocks are not anticipated in the near future. This is because the country has safeguarded itself by ensuring that it has adequate and reliable international reserves (Ronnie, 2012).
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Ronnie, L. (2012). Economic Life in Brazil. Retrieved from:
Russell, M. (2012). Just the Facts – Sports and Energy Drinks in Brazil. Retrieved from:
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