Mexicans are among the top consumers of soft drinks in the world. The average Mexican’s soft drink consumption is about 150 litres per year (OECD, 2019). There is great love for Soda in the country as the residents, especially construction workers, must carry two to three litres of the drink to work (OECD, 2019). Children can be spotted sucking on soda bottles every day as it is locally available, cheap and delicious. The Mexicans love Soda to the extent that they elected a former president of Coca-Cola Mexico and head of the company’s Latin American operations as the country’s first democratically elected president in 2000 (White & Barquera, 2020). In particular, the highlands of Chiapas have a distinctive soda culture. Its availability in the region has made the product to be considered to have magical powers. It is deeply ingrained in the local way of life to the extent that it is used in religious rites.
The high rate of consumption of soft drinks in the country is good news for Boka company as it points to a vast market in the county. White and Barquera (2020) state that there is a higher rate of soft drinks consumption in the country than even in the United States, which is the primary source of the products. Therefore, the country has a high rate of foreign beverage diversity as there are many international and local competitors selling hot drinks, soft drinks, alcoholic drinks, dairy, and soy drinks. The market has high sales as Mexicans appreciate diversity and like sharing international drinks. This shows that Mexico is open to a wide range of tastes and, therefore, a suitable market for investing in the soft drinks business. The proliferation was propagated mainly by the 1994 enactment of the North American Free Trade Agreement (White & Barquera, 2020). Boka drinks will venture into the Mexican market through local manufacturing as supported by the agreement. The company will set up production facilities across different regions that have in an established culture of supporting the consumption of soft drinks.
Problem Analysis and Product and Solution Proposition (The Boka Drink)
Despite the booming soft drinks business in Mexico, there are extremely high levels of overweight and obesity among the population. Over 75 percent of Mexicans are overweight, which has led to increased obesity as the population has become accustomed to sugary soft drinks (OECD, 2019). In addition, 34 percent of people with obesity are morbidly obese, which is the highest and worst level of obesity (OECD, 2019). The greatest challenge has been observed among children whose obesity levels have doubled over the past two decades. The rising patterns of overweight and obesity result in other diseases that reduce the life expectancy of Mexicans. Today, the country has the world’s highest number of deaths from chronic illnesses. The consumption of sugary drinks has mainly contributed to the problem, and they are the leading sources of calories. The high death rate in the country is almost three times the rate observed in the country with the second-highest death rate. However, Boka will compete in the Mexican soft drinks market by providing a distinctive product that will promote a healthy lifestyle by using ingredients that do not contain high calories and sugar.
The company seeks to compete with the existing players in the Mexican market through providing a healthy product. The Boka drink will specifically have a reduced sugar content and low calories so as to compete from a health promotion perspective. The drink will be manufactured using healthier ingredients, particularly fresh fruits and sparkling clean water instead of compound formulas. The use of fresh fruits will enhance the competitiveness of the product since the ingredients carry the natural taste and no sugary additives will be added. This will go along with the existing government regulations that support a healthy lifestyle. The drink will specifically be suitable to school going children and support the government’s agenda of reducing overweight and obesity challenges among children.
The company will further support the global movement of balancing calories in with calories out as part of promoting the healthiness of Mexicans. The approach is, at the moment, greatly embraced in the industry globally since it has emerged as a key solution to the problem of obesity. Even though some existing products may have higher levels of calories and sugar, they are not the solitary cause of increasing obesity in Mexico. The challenge is mainly a problem of taking excessive calories than the amount required or than can be expended by the body. Therefore, the company will enhance its competitiveness by encouraging Mexicans to become more physically active instead of consuming soft drinks and lying idle. Some preferred approaches the company will be involved in is developing a gym in the communities where people can exercise their bodies. Supporting people to engage in active bodily activities will ensure that the high calories consumed get broken down and consumed by the body.
The company will additionally support the existing legal framework that regulates the amount of sugar in the drinks by ensuring the standards are observed. The government considers that excessive sugar consumption is the leading cause of increased obesity levels in Mexico. It is even prevalent in slender people who may otherwise be considered healthy. The problem caused the Mexican government to tax sugar-sweetened beverages in 2013 (OECD, 2019). The goal was to make the products somewhat expensive, reducing consumption across the country. The government imposed a tax of one peso per litre, and notable success was realized in the first year as the consumption of sugary drinks declined by about 12 percent (OECD, 2019). The government imposed additional taxes on high-calorie non-essential foods to further manage obesity by reducing their consumption alongside sugary drinks. The Boka drink will be promoted as a drink that is to be consumed after taking a healthy meal. The company will discourage consumption of its product alongside fast foods that will not support the overall goal of having a healthy Mexican population.
The government has taken steps to regulate the sale and marketing of processed foods. For instance, it published guidelines to be observed at schools to ensure children eat nutritious meat with a low fat and sugar content. The introduction of mandatory front-of-pack food labeling followed the move. The move was intended to warn consumers of foods containing high calories, non-caloric sweeteners, excess sugar, sodium, and saturated fat. Properly implemented food product reformulation could promote healthier lifestyles while gradually shifting people toward healthier diets. The OECD (2019) states that a 20 percent reduction in foods high in calories, sugar, salt, and saturated fats in Mexico could save over 1.4 million people from non-communicable infections by 2050. The company would support these measures to provide adequate warning to allow consumers to make informed decisions by identifying healthy and unhealthy products and help the government manage obesity. The Boka drink will be appropriately labeled to indicate the different varieties of the product that will not contain additives. The labeling will help to educate the public of the need to consume the drink that will be derived from freshly picked fruits.
Furthermore, the Boka company will promote the product and enhance its competitiveness through supporting health campaigns and programs. The approach will entail a relentless rollout of all-encompassing educational campaigns aimed at raising awareness about the health benefits of the Boka drink. Promotional messages will be propagated through the media to promote healthy eating and exercise habits. These campaigns will be captured in posters, television advertising, and other public messaging to support the need for Mexicans to make healthier choices about their life and take care of their bodies. The company will also partner with the government to ensure that the problem of obesity is addressed. The partnership will entail developing and promoting healthy food options across the company’s value chain, including distribution, wholesaling, and retailing. The company will act through the value chain by investing in counseling, weight management clinics, and other resources. This is to provide necessary assistance to people to contain problems with their weight and improve their overall fitness.
Conclusion
Mexico provides a good market for the soft drinks business given the high consumption of the product across all regions and ages. However, the high sugar content and high use of processed foods have been considered to be the main reason for the increasing obesity levels in the country. This has led to poor health and increased deaths associated with diseases caused by obesity. The Boka drink seeks to provide a natural and healthy alternative based on the use of fresh fruits. The drink will be promoted as a healthy option to meet the government’s goal of having a healthy Mexican population, especially children. There will be partnerships with the government to develop and implement health campaigns and programs.
References
Organization for Economic Co-operation and Development (OECD). (2019). The heavy burden of obesity – The economics of prevention. Oecd.org. Web.
‌ White, M., & Barquera, S. (2020). Mexico adopts food warning labels, why now?Health Systems & Reform, 6(1). Web.
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