About 3 million people live in Buenos Aires City and the Greater Buenos Aires metropolitan area totals around 13 million, making it one of the largest urban areas in the world.3) Argentine cities were originally built in a colonial Spanish grid style and many still retain this general layout, which is known as a damero (checkerboard).
Introduction<br />Argentina is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires. It is the eighth-largest country in the world by land area and the largest among Spanish-speaking nations.<br />Argentina possesses great potential for economic development. Its large and fertile plains are among the world's richest agricultural areas. The manufacturing and processing industries are well-developed and often employ modern technology to produce a wide variety of products of high quality. The country is nearly self-sufficient in energy. The labor force is relatively sophisticated and Argentina's inhabitants enjoy a health level comparing favorably with man y industrialized countries.<br />
Key Facts About Argentina<br />OFFICIAL NAME : República Argentina (Argentine Republic)<br />CAPITAL : Buenos Aires<br />OFFICIAL LANGUAGE : Spanish<br />INDEPENDENCE DAY : JULY 9, 1816 (SPAIN)<br />CURRENCY : Peso (P) = 100 centavos<br />EXCHANGE RATE : P4.20 per US$ (Floated From Feb 2002)<br />AREA : 2,766,890 km2 , 1,068,302 sq. mi<br />
Continued….<br />POPULATION : 40, 117,096 (2010)<br />ANNUAL POPULATION GROWTH RATE : 1.017%. (2010 est.)<br />GDP : $642.4 billion(2010)<br />GDP PER CAPITAL : $15,854 (2010)<br />GDP REAL GROWTH : 7.5 (2010)<br />UNEMPLOYMENT : 7.9% (2010)<br />INFLATION : 22% (2010)<br />
Demographics Of Argentina<br /><ul><li>ETHNOGRAPHY
CULTURE</li></li></ul><li>Ethnography<br /><ul><li>Argentina is considered a country of immigrants.
Most Argentines are descended from colonial-era settlers, and 19th and 20th century immigrants from Europe.
Argentina was second only to the US in the numbers of European immigrants received and, at those times, the national population doubled every two decades.
The majority of these European immigrants came from Italy and Spain.86.4% of Argentina's population self-identify as being of European descent. An estimated 8% of the population is Mestizo and 4% of Argentines are of Arab or Asian heritage.</li></li></ul><li>Religion<br /><ul><li>Argentina is a Catholic Nation, and operates under Roman Catholic beliefs.
The Roman-Catholic Church is supported by the </li></ul> government of Argentina, with both the president <br /> and vice-president required to be Catholics.<br /><ul><li>According to the World Christian Database </li></ul> Argentines are: 92.1% Christian, <br /> 3.1% agnostic, 1.9% Muslim, 1.3% Jewish, <br /> 0.9% atheist, and 0.9% Buddhist and others.<br />
Education<br /><ul><li>Argentina's educational system consists of three parts; </li></ul> primary, secondary, and higher education. Argentina is among the leaders in education in Latin <br /> America. At each of these levels, Argentina is considered to be one of the best in Latin America. For <br /> years, Argentina's government has put a lot of money into educational reform.<br /><ul><li>Argentina has the highest university enrollment rate, at 36.4% in Latin America, and Latin America has the highest university enrollment rate in the developing world.
Due in great part to Argentina's commitment to education, they have the highest literacy rate in Latin America, at 95.3%</li></li></ul><li>Languages<br /><ul><li>Due to the large proportion of different ethnic groups, there are a large number of languages spoken in Argentina. The official language of Argentina is Spanish.
English is quickly becoming the second language of Argentina, especially in the business sector and in metropolitan Buenos Aires. certain sectors of Argentina have Italians and German speaking their native language. In addition some American Indian languages are spoken in the Pampas………………..</li></li></ul><li>Urbanization<br /><ul><li>Argentina is highly urbanized.The 10th largest metropolitan areas account for half of the population, and fewer than one in ten live in rural areas.
The metropolitan areas of Córdoba and Rosario have around 1.3 million inhabitants each and Mendoza, Tucumán, La Plata, Mar del Plata, Salta and Santa Fe have at least half a million each.
Most European immigrants settled in the cities, and the many small towns founded along the expanding railway system. From the 1930s rural migration into the nation's larger cities accounted for much of their population growth.</li></li></ul><li>Culture<br />Argentine culture has significant European influences. Buenos Aires, its cultural capital, is largely characterized by both the prevalence of people of European descent, and of conscious imitation of <br />European styles in architecture. The other big influence is the gauchos and their traditional country lifestyle of self-reliance. Finally, indigenous American traditions (like yerba mate infusions) have been absorbed into the general cultural milieu.<br />
Economía de Argentina<br /><ul><li> Argentina is Latin America's third-largest economy, </li></ul> with a high rating on the Human development index.<br /><ul><li> Argentina has the fifth highest nominal GDP </li></ul> per capita and the highest in purchasing power terms.<br /><ul><li>Argentina has a market-oriented economy with abundant natural resources, a well-educated population, an export- oriented agricultural sector and a relatively diversified industrial base.
The nation's services sector accounts for around 59% of the economy and 72% of employment, manufacturing is 21% of GDP and 13% of employment, and agriculture is 9% of GDP, with 7% of employment; construction, mining, and public utilities divide the rest.</li></li></ul><li>Economía de Argentina<br /><ul><li>Agriculture, including processed goods, provided 54% of export earnings in 2010, however, while industrial manufactures accounted for 35%
High inflation has been a weakness of the Argentine economy for decades. Officially hovering around 9% since 2006, inflation has been privately estimated at over 20%, becoming a contentious issue again.
Argentina ranks 105th out of 178 countries in the Transparency International's Corruption Perceptions Index for 2010. Reported problems include both government and private-sector corruption,</li></li></ul><li>Doing Business in Argentina<br />Argentines are tough negotiators. Concessions there is not easy to have. Good relationships with counterparts will shorten negotiations so it is important to build networks<br />They prefer face-to-face meetings rather than by telephone or in writing, which are seen as impersonal<br />Contracts are lengthy and detailed. A contract is not final until all of its elements are signed. Any portion can be re-negotiated. Get everything in writing.<br />An Argentine contact is essential to wading through government bureaucracy.<br />Be punctual for business appointments, but prepare to wait thirty minutes for your counterpart, especially if you are meeting an important person.<br />Personal relationships are important and must be developed before business is done<br />
Continued…<br />The pace of business in Argentina is slower than in the United States. A meeting that is going well could last much longer than intended, even if it means postponing the next engagement<br />Argentines often need several meetings and extensive discussion to make deals.<br />Decisions are made at the top. Try to arrange meeting with high-level personnel.<br />Guests at a meeting are greeted and escorted to their chairs. The visiting senior executive is seated opposite the Argentine senior executive.<br />During business meetings, sustain a relaxed manner, maintain eye contact and restrict the use of gestures. Don’t take a hard sell approach.<br />Be prepared for a certain amount of small talk before getting down to business.<br />Avoid confrontation Argentines do not like publicly admitting they are incorrect.<br />
Product For Launch<br />OKF ALOE VERA JUICE<br />
Flavors of Aloe Vera Juice<br />ALOE VERA JUICE - NATURAL<br />ALOE VERA JUICE - MANGO<br />ALOE VERA JUICE - ORANGE<br />ALOE VERA JUICE - STRAWBERRY <br />ALOE VERA JUICE - PINEAPPLE<br />
Factors Favoring the Product Market.<br />The Humid weather of Argentina likely requires the more cool products.<br />Health consciousness of citizens.<br />Prefer more protein and energy juices<br />Its so liked plant popularly known as Wonder Tree<br />They Use ALOEVERA for many other purposes. <br />Good Agriculture production at Low Price <br />Their Liking to have Aloe Vera with Wines Etc.<br />
STP Analysis<br />SEGMENTATION:- Being a Health drink for all it elegantly focuses the entire set of population in-<br />AGE<br />AREA<br />HEALTH CONSCIOUSNESS<br />TARGETING:- <br />As discussed above it mainly targets the health conscious cult of the population and being a nation more inclined to sports using a soccer player as a Brand Ambassador it clearly takes form of a Energy Drink<br />POSITIONING:-<br /> Creating an image of a perfect natural energy drink……. <br />
Price<br />PRICING STRATEGY :- PENETRATION PRICING.<br />PRICES ARE:-<br />PET bottle: 8 Oz. are available in 7 peso.<br />PET bottle: 16 Oz. are available in 13.5 peso.<br />Can : 50 Oz. are available in 40 peso.<br />
Place<br />Product launched keeping in mind the humid and arid areas in order to capture the beverage segment focusing on the health consciousness of the customer<br />Areas selected for primary marketing:<br />Capital : Buenos Aires<br />Along with other areas like:<br />Northern Chaco<br />Central Pampas<br />Santa Fe <br />Corrientes<br />Formosa<br />
Promotions <br />Online food store for the product<br />Food magazines <br />Website promotions specially WWW.Go Fabby.Com<br /> WWW. Facebook.com<br />Radio medium Stations like Blur FM<br /> Radio Carnaval<br /> Radio America<br />Brand Ambassador --Lionel Messi<br /> --Norma Aleandro<br />
People<br />Chalking out an Appropriate importer at an initial stage in order to circulate the product in the market.<br />Using special personal selling force to capture the retail outlets in order to get an even spread across the country.<br />Specialized human resource to keep the import log in order to maintain requisite inventory to rule out lagging situations.<br />
Importing juice from production country i.e. South Korea (Initial Stage)<br />Setting up a manufacturing unit (Later Stage)<br />Process<br />Product Reaching its Destination (ARGENTINA)<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />RETAILERS…..<br />CONSUMERS<br />(FINALLY GRABBED IT…)<br />
Physical evidence<br />Central Head office : Buenos Aires.<br />Customer Reparation and Feedback agency : Outsourced<br />Import Office : Santa Fe.<br />Tie ups with Local Distributors.<br />
Geert Hofstede Analysis<br />Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.<br />Individualism (IDV) On the one side versus its opposite, collectivism, that is the degree to which individuals are inter-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family.<br />
Geert Hofstede Analysis<br />Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found.<br />Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual.<br />