Timing/Strategy of Entry for Hansen Natural Into Argentina (Hypothetical Case)

Timing/Strategy of Entry for Hansen Natural into Argentina (hypothetical case)

For Hansen Natural, this proposal for a possible marketing venture into Argentina is not simply one targeted towards the country itself, but rather the Latin American market as a whole. Initial results from marketing ventures into countries such as Argentina and Brazil by a number of the largest corporations in the carbonated and energy drinks industry (most notably, Coca-Cola, PepsiCo and Red Bull), indicate that the Latin American market is a key emerging market that has been relatively untapped. Trends and statistical reports also predict that the largest growth in functional and carbonated drinks is expected to occur in the Asian and Latin American markets (Euromonitor International: The Coca-Cola Co – World, April 2010).

Furthermore, many corporations develop marketing strategies around the notion that profitable opportunities are related to high income levels. Such a narrow conceptualization of potential markets often result in marketing strategies that neglect the huge market potential of low-income earners and those living in poverty. According to Prahalad (2004), nearly 5 billion people represent this market that is estimated to be equivalent to $14 trillion in purchasing power. Considering that a considerable percentage of Latin Americans belong to this market segment, it is not surprising that firms in the functional and carbonate drinks industry have only recently begun to realize the potential growth in the Latin American market.

To take advantage of this, Hansen Natural already has plans to launch Monster Energy into Brazil in the near future in a co-operative exporting strategic alliance with Coca-Cola. This is to be done in a similar way in which Hansen Natural made a multi-country distribution agreement with Coca-Cola to make use of its vast and effective distribution system to successfully enter the Canadian and numerous Western European markets. The market...