EMERGING MARKETS BRAZIL Michael Lauenstein

BRAZIL Pop. 186 Million Pop. Concentrated along the coast Immigrant population Largest Market in SA +50% of all SA Developed infrastructure, continual investment in roads, ports and airports

Pop. 186 Million

Pop. Concentrated along the coast

Immigrant population

Largest Market in SA

+50% of all SA

Developed infrastructure, continual investment in roads, ports and airports

BRAZIL Higher interest rates (currently 8.2%) Stable currency (FX - 2.06BR = 1USD) Stable inflation (currently 4%) Largest Export in $ - Airplanes Positioning itself as a leader of developing nations/Mercosur Looks to Europe / Looks away from US Political Alliances Design Business

Higher interest rates (currently 8.2%)

Stable currency (FX - 2.06BR = 1USD)

Stable inflation (currently 4%)

Largest Export in $ - Airplanes

Positioning itself as a leader of developing nations/Mercosur

Looks to Europe / Looks away from US

Political Alliances

Design

Business

BRAZIL Local Presence/Product Large market, difficult to manage from 5,000 miles away Used import delays – Don’t want product outs Non-Hispanic Prefer English over Spanish Can be difficult to find a Portuguese speaker in US Don’t want to work with non-Brazilian S. Americans Business is modernizing Managers well trained and worldly Product/Sales Analysis Accustomed to Technology

Local Presence/Product

Large market, difficult to manage from 5,000 miles away

Used import delays – Don’t want product outs

Non-Hispanic

Prefer English over Spanish

Can be difficult to find a Portuguese speaker in US

Don’t want to work with non-Brazilian S. Americans

Business is modernizing

Managers well trained and worldly

Product/Sales Analysis

Accustomed to Technology

BRAZIL Brand conscious consumers Important to build a relationship first, then do business Love to negotiate Will always figure a way to get something done.

Brand conscious consumers

Important to build a relationship first, then do business

Love to negotiate

Will always figure a way to get something done.

BRAZIL Complicated Tax system Varying state taxes Various levels of taxes Import Procedures Bureaucratic Main ports expensive Unions strong

Complicated Tax system

Varying state taxes

Various levels of taxes

Import Procedures

Bureaucratic

Main ports expensive

Unions strong

Sample Import Costing

BRAZIL Foreign Companies in Brazil Wal*Mart Carrefour GM, Ford, Chrysler, Renault, Peugeot, VW SC Johnson Johnson Controls Nestle Brazilian Multinationals Embraer AmBev Tramontina Azalea Varig / TAM Airlines Zoomp / ING Café do Ponto

Foreign Companies in Brazil

Wal*Mart

Carrefour

GM, Ford, Chrysler, Renault, Peugeot, VW

SC Johnson

Johnson Controls

Nestle

Brazilian Multinationals

Embraer

AmBev

Tramontina

Azalea

Varig / TAM Airlines

Zoomp / ING

Café do Ponto

EMERGING MARKETS