Presentation Brazil MarketingPresentation Transcript
Livia Mello Eduardo Muracciole
Brasil Country Area: 8.511.965 sq Km
Brazil – Key Facts Country Name: Federative Republic of Brazil Capital City: Brasilia Government Type: Federal Republic President: Luiz Inacio Lula Da Silva Population: 190.01 million Languages: Portuguese States: 27 units of the Federation and 1 federal district which contains the capital city (Brasilia) Currency: Real (equivalent to 0.582 US$) Life Expectancy: 72 (total population) 68.4 (men)/ 75.7 (woman) Religion Ethnic Composition Predominantly white and mulato Predominantly Catholic
Brazil – Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics) North Region Northeast Region Central-West Region Southeast Region South Region
Brazil – Territorial Division The North Region
45.27% of the Brazil land area.
Lowest number of inhabitants.
Mainly unindustrialized and undeveloped.
2% of GDP.
Key city to region development and trade– Manaus ( Zona Franca).
Most of the Amazon Rainforest and indigenous tribes (2% of population).
Main industry: lumber, mining (iron, aluminum and gold), agriculture, oil and gas and ecotourism.
7 states Amazon Zona Franca Amazonas river
Brazil – Territorial Division The Northeast Region
30% of Brazil’s population.
It’s the poorest region of Brazil (12% of GDP).
Main cities: Salvador, Recife and Fortaleza.
Economy : sugar, cocoa and cotton and tourism.
Semi-arid climate: Suffers from long droughts.
Major industries: tourism, agriculture (sugar cane and cotton) and extensive cattle breeding.
9 states Sertão Nordestino Porto de Galinhas - Pernanbuco Salvador
Brazil – Territorial Division The Central-West Region
Low demographic population (just 6.4%).
Pantanal- world’s largest wetland area.
Cerrado (the world largest savanna).
Host of the capital city (Brasilia).
Contributes with 8% of the GDP.
Political business and tourism are very important for the region
Key industries: cattle breeding, mining, lumber, agriculture for subsistence .
4 states Cerrado Savanna The Pantanal Brasilia
Brazil – Territorial Division The South-East Region
38% of the population.
58.5% of total GDP.
Economy: mining, manufacturing (machinery, electronics, automobile and aviation), energy production, coffee, sugar, tourism, petroleum, textiles, etc.
Business economic centers of Brazil : largest cities and companies - Sao Paulo and Rio de Janeiro.
4 states Rio de Janeiro Sao Paulo Industrial Parks
Brazil – Territorial Division 3 states The South Region
Wealthiest region by GDP per Capita : highest standard of living in Brazil.
12.5% of Brazil’s population.
16.5% of the GDP
Main industries: machinery and automobile, textiles, tourism, energy.
Settled mainly by European immigrants
It’s the coldest region of Brazil
Host of Curitiba – benchmark of urban planning
Pomerode Curitiba Porto Alegre
Gross Domestic Product 10th Economy in the world Brasil GDP – Billions of US dollars Source: International Monetary Fund Brasil Growth Rate 5.9% Brazil economy has not been badly affected…
Strong Trade Balance (Exports higher than Imports)
The country’s growth rate increased in 2008 to reach 5.9%
Modern financial system
GDP by sector Brasil GDP by Sector
Brazil is leader in agribusiness, but not very significant in terms of GDP
Services comprise 66% of the GDP, followed by industry and agriculture.
Tourism, IT and banking are the chief sub-sectors of services.
The industry sector includes motor vehicles, industrial equipments, chemicals and aircrafts. Most of these industries are clustered in the south-eastern region of the country and employs the maximum workforce in the region.
Brazil – Trade Balance Brasil – Trade Balance by year Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/)
Brazil's exports amounted to around $197.9 billion (+23% compared to 2007)
The imports reached $172.9 billion in 2008 (+43% compared to 2007)
The country earned a trade surplus of $24.9 billion in 2008 (-38% compared to 2007)
Mercosul - Brazil, Argentina, Uruguay and Paraguay (Total GDP US$ 1 trillion )
Brazil – Imports Brasil Imports - Importance by country Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/) Brasil Imports – Main Categories Source: Brazil Foreign Office
Brazil – Exports Brasil Exports - Importance by country Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/) Brasil Exports – Main Categories Source: Brazil Foreign Office
Brazil : Leader in Agriculture Source: Secex
Brazil – Foreign Direct Investments FDI inflows (2001-2008)
FDI inflows into Brazil increased from around $35 billion in 2007 to $45 billion in 2008
Consistent growth from 2005 in terms of attracting FDI
Sao Paulo Stock Exchange Bovespa index Market Capitalization
Market cap increased $710 billion in 2006 to $1,369.7 billion in 2007
Brazilian economy affected in 2008, but fully recovered.
Major factors: diversification of trade partners, development of internal market, economic stability, sustainable energy matrix and recent discovery of crude oil.
Brazilian Diverse Culture
Brasil - A Country of Contrasts
Opposite HDI in different regions –HDI of Norway and HDI of Africa.
Country of contracts: One of the highest Gini coefficient. “ Rich spends in three days what the poor spends in a year”
30% of population with 72% of total disposable income. 5% with less than $1.25/day
NORTH POP – 8,1% PP – 5,4% NORTHEAST POP – 27,6% PP – 18% MID-WEST POP – 7,1% PP – 6,6% SOUTHEAST POP – 42,6% PP – 51,6% SOUTH POP – 14,6% PP – 18,4% POP=Population PP=Purchasing Power Globo presentation to MBAs
Positive consumer behaviour Easier availability of credit Lower Risk Brazil
Middle class appetite for consumption
“ Buy now, pay later!”
Young nation and noveaux riches
Unseen ways of living and buying among youngsters
New Rich with economic growth trends - 10% of households income raised 124% since 2002
Demand for luxury cars, beverages and designed closing
Pull to the urban centers São Paulo: 18 M Rio de Janeiro: 11M Belo Horizonte: 3 M
Demand for Technology Internet and broadband users
Brazil = 5th in number of phones
41.1 M fixed lines
150.6 cell phones
Brazil = jump in credit cards use
Majority growth in poor areas
75% of North/NE – income < R$ 1,000
SE – tourism, entertainment, clothing
In Brazil, Sport is religion
Brazil - leading TV market China US Japan Brazil Germany France UK Italy Mexico Spain Households with TV (million) – Major Countries source: Globo presentation to MBAs
Advertising Expenditure 2006 (US$ billion) Media landscape in Brazil Media consumption
Globo – major Media Free Broadcast TV Newspaper Publisher Pay TV Programmer Radio Broadcasting Sound Recording & E-commerce Magazine Publisher Feature Films Producer Cable & Sat Pay TV Systems Internet Portal Non-profit foundation Globo presentation to MBAs
75% of broadcast TV advertising market share TV Globo’s Leadership Signal reaches 99,4% of the Brazilian population 5 owned stations - 116 affiliate stations Network sales in 2007: US$ 4.5 bi 59% prime time audience share Home of the finest artistic and news talent The largest production center in Latin America (2,500 hours/year) Holds rights for the top sports events, films and TV shows Exports programming to 130 countries Globo presentation to MBAs
Marketing in two realities Targeting Mass: Casas Bahia Targeting Niche: Daslu
International = cool , but proud to be brazilian
Ambiance is key
Service is very important
Blogs, links to tweeter and Facebook
Celebrity – models, important Brazilian icons
Benchmark – largest retail
Revenues = R$ 13,5 billion
Prices = emphasis
Heavily on TV ( 33%)
Easy credit – “ carnets”
Buy now and pay a TV in 72 months!
Bem-vindo a Volkswagen do Brasil
Brazil is the Volkswagen’s third largest market after China and Germany with 3 facilities able to produce 800.000 cars a year approximately(star-motoring, 2009).
Domestic car demand in Brazil is approximately 2 million a year growing at 5% approximately (BNet, 2009).
Volkswagen in Brazil's is the #1 carmaker, above U.S. rivals General Motors and Ford, with almost 30% of the market share (BNet, 2009).
Volkswagen is the automobile brand with the highest Recall in Brazil
40% according to ABA(Associação Brasileira de Anunciantes, 2008)
Gol is the automobile model with the highest Recall in Brazil.
25% according to ABA(Associação Brasileira de Anunciantes, 2008)
In Brazil, 70% of car buyers purchase subcompacts and compacts, and around 30% buy larger cars(B Krueger: Vice President of Volkswagen do Brasil, 2008)
Volkswagen do Brasil Key Facts:
Volkswagen’s main products offer:
Robust cars with raised suspension and powerful motors, specially designed for bumpy dirt roads, ubiquitous in Brazil.
Reduced vehicles designed to deal with the Brazil’s congested cities where streets are narrow and parking and garage space is limited
Automobiles able to run on gasoline, ethanol or a mixture of the two.
Accessories and electronics included inside to provide the best experience
Product Launch in Brazil:
28 new products expected between 2009 y 2010 (Univision, 2009)
3.5 billion to be invested in Volkswagen Brazil from 2009 until 2014 (Univision, 2009)
Target Market in Brazil:
Recognized for years as “the car of the people”, Volkswagen in Brazil is aiming up-market, to younger Brazil’s drivers with more disposable cash and a burning desire to occasionally leave city life behind (BNet, 2009).
Volkswagen do Brasil
1953: Volkswagen Fusca (Beetle) Results: 3.350.000 cars assembled in Brazil 1970: Volkswagen Brasilia Challenge: Recreate the Beetle but with a Brazilian flair (Brazil's president Rudolf Leiding) Results: - The total production of VW Brasilia reached over one million. - Successfully exported to many countries in South America, Portugal and Philippine. Chevette - Chevrolet 1980: Volkswagen Gol ( futebol) Challenge: To build an all new front engined (cheap) vehicle to compete with the brand new Chevette from Chevrolet. Results: - Uninterruptedly the best-selling car in Brazil since 1987. - Over 5 million Gols have been produced since 1980. - 5 generations launched since 1980 Gol G1 (80-94) Gol G2 (94-99) Gol G4 (05-08) Gol G5 (08 +) Gol G3 (99-05) VW Brazil: A history of constant adaptation…
Street Marketing Billboards: Objective: To communicate the new VW Polo comes with “parking sensors as standards” to avoid scratches and dents Place: In the parking lots of the biggest shopping centers in Brazil (1 min, 16 sec) http://www.publicidadymarketingweb.com/pageID_7032152.html VW: Advertising Activities in Brazil TV Commercials
VW: Advertising Activities in Brazil Volkswagen Run - 10K Anchieta – Espiritu Santo
VW: Advertising Activities in Brazil Super Surf - Competition Bahia, Ubatuba, Guaruja
VW: Advertising Activities in Brazil Rally – Motor Sport Dakar, Dos Sertoes
VW: Advertising Activities in Brazil Volkswagen sponsors Brazil’s Soccer Team
The company will use the Brazil team and logos in its advertising campaigns.
The team will travel on a Volkswagen coach.
Flavio Padovan, Volkswagen Brazil's vice president commented: "There is great synergy between Volkswagen and the Brazil team. Just as with the Brazil national football team, the brand values are reliability, friendship, passion and closeness to the public."
Hope to see you at Rio Olympics 2016! Obrigada! http://www.youtube.com/watch?v=U3ciAv7wkJs