Global Marketing Plan

1. Global Marketing Plan
Spring 2017 BUSS 442 International Marketing Talita Schweinberger

2. Brazil
Is the largest country in South America, the world's fifth-largest country by area and
population and it is the largest country to have Portuguese as an official language.
The border countries are Argentina, Bolivia, Colombia, French Guiana, Guyana,
Paraguay, Peru, Suriname, Uruguay, and Venezuela.

3. Population
207,847,528 million people
White 47.7%, mulatto
(mixed white and black)
43.1%, black 7.6%, Asian
1.1%, indigenous 0.4%.
Language
Portuguese is officially and
most spoken language. Less
common languages include
Spanish (border areas),
German, Italian, Japanese,
English, and a large number
of Amerindian languages)
Religions
Roman Catholic 64.6%,
other Catholic 0.4%,
Protestant 22.2%
(includes Adventist 6.5%,
Assembly of God 2.0%,
Christian Congregation of
Brazil 1.2%, Universal
Kingdom of God 1.0%,
other Protestant 11.5%),
other Christian 0.7%,
Spiritism 2.2%

4. Cooler weather during May- September and warmer weather from December-March,
Brazil' summer. The country has 5 distinct climatic regions.
Climate

5. Entry mode strategy
Marketing mix (the 4 Ps)
MARKET ENTRY
STRATEGIES
MARKET
PROGRAMME
STP strategy
Opportunities
WHICH MARKETS
TO ENTER External analysis
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors

6. WHICH MARKETS
TO ENTER External analysis
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors
Entry mode strategy
Marketing mix (the 4 Ps)
Case study
MARKET ENTRY
STRATEGIES
MARKET
PROGRAMME
STP strategy
Opportunities

7. PESTEL analysis of Brazil
A framework of macro-environmental factors used in the
environmental scanning component of strategic management.
Political factors
Economic factors
Social factors
Technological factors
Environmental factors
Legal factors

8. Political factors
Government Form: Democratic Republic
Government effectiveness: -0.15 (2014). Corruption is a big issue in Brazil.

9. Political factors
Following the impeachment of President Dilma Rousseff on August 31, 2016, former
Vice President Michel Temer took office as the new President.
He announced that his government would pursue several fiscal adjustment
measures and a reform agenda to reestablish confidence and to restore a favorable
investment environment.

10. • Brazil is currently going through a deep recession.
• The country's growth rate has decelerated steadily since the beginning of this
decade, from an average annual growth of 4.5% between 2006 and 2010 to 2.1%
between 2011 and 2014.
• GDP contracted by 3.8% in 2015, and is expected to fall at least 3% more in 2016.
Economic factors

11. Economic factors
Major business trade relation
Top export destinations:
• China $40.9B
• United States $27.3B
• Argentina $14.3B
• The Netherlands $10.8B
• Germany $8.19B
Top import origins:
• China $37.2B
• United States $35.1B
• Argentina $14B
• Germany $13.8B
• Nigeria $8.77B
Top exports products:
• Iron Ore which represent
11.8% of the total exports
of Brazil
• Soybeans, which account
for 10.3%
The imports products:
• Refined Petroleum
represents 7.54% of
the total imports of
Brazil
• Crude Petroleum,
which account for
6.12%

12. Economic factors
Foreign investment:
Strengths:
• A domestic market of nearly 210 million inhabitants
• Easy access to raw materials
• A diversified economy that is less vulnerable to international crises
• A strategic geographic position that allows easy access to other South American
countries
Weaknesses:
• Investment in Brazil remains risky because of the country's economic crisis and the
high rate of inflation.
• Other negative factors affecting FDI include cumbersome and complex taxation,
bureaucratic delays and heavy and rigid labor legislation.
The main investors in Brazil are the United States, Spain and Belgium.

13. Social factors
Urban population: 85.7% of total population
Rate of urbanization: 1.7% annual rate (2010-15)
Literacy: 92.2% of population can read and write

14. Social factors
• Economic inequality with the population as around 20% of the population lives
under the poverty line.
• Considerable number of wealthy citizens and a huge segment of people with
minimal incomes.
• The middle class is growing.
• Brazilians are up-to-date in the fashion world and are considered modern, as they
are aware of big brands and are keen to buy expensive and luxurious products.

15. Social factors
Cultural Dimensions
Power Distance
Brazil reflects a society that believes hierarchy should be respected and inequalities
amongst people are acceptable. In companies there is one boss who takes complete
responsibility. Status symbols of power are very important in order to indicate social
position and “communicate” the respect that could be shown.
Individualism
In business it is important to build up trustworthy and long lasting relationships: a
meeting usually starts with general conversations in order to get to know each other
before doing business. The preferred communication style is context-rich, so people will
often speak profusely and write in an elaborate fashion.

16. Technological factors
Compared to countries like the US and Russia, Brazil possesses a weaker
technological infrastructure, as well as investment, but there are efforts being made
to push the development of technology centers all over the country. However, IT is a
sector in which Brazil has been constantly improving and it currently ranks 53rd in
the world.

17. Environmental factors
Deforestation
Under the Brazil-U.S. climate plan,
Brazil has committed to restoring
12 million hectares (almost 30
million acres — about half the
size of Uganda) of lost forest.
Food production
Brazil is one of the greatest
food producers in the world,
ranking among the top three
in commodities such as
soybeans, coffee, meat and
sugar.
Cities
Intertwined with forest and
agriculture issues are cities,
which are now home to more than
85% of Brazil’s population, São
Paulo is currently facing its worst
drought in more than 50 years.

18. Legal factors
• Fulfilling the Sociedade Limitada (LTDA) Requirements
Organizations must contend with a labyrinth of steps (17 in all) to create one, which
together can take between 90 to 152 days to complete.
• Corporate Tax Filings
Filings for different states have different deadlines. In addition, for companies setting
up cost centers in Brazil, the regulators do not recognize the generally accepted OECD
“cost plus” model for intercompany agreements. The result: Brazil is an accountant’s
dream and a business owner’s nightmare.
• Employment Law
Worker ratio requirements, unemployment insurance regulations, social security taxes,
termination restrictions and payroll laws. Employees are compensated based on 13
months every year.

19. WHICH MARKETS
TO ENTER External analysis
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors
Entry mode strategy
Marketing mix (the 4 Ps)
Case study
MARKET ENTRY
STRATEGIES
MARKET
PROGRAMME
STP strategy
Opportunities

20. Segmentation Targeting Positioning Strategy
Segmentation Targeting Positioning
Geographic region:
Southeast
Brazil Premium Frozen Yogurt
Demographic age: 2+
Family size: 1+
Gender: male, female
Income: $10,000+
Loyalty status: Medium,
strong

21. Entry mode strategy

22. WHICH MARKETS
TO ENTER External analysis
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors
Entry mode strategy
Marketing mix (the 4 Ps)
MARKET ENTRY
STRATEGIES
MARKET
PROGRAMME
STP strategy
Opportunities

23. Marketing mix: Product
Different flavors would sell in Brazil.
Opportunity to use local fruits.

24. Marketing mix: Pricing
A small cup of frozen yogurt cost $3.50
In Brazil it would cost R$10.92

25. Marketing mix: Place
Brazilian retailing
Airports Shopping
mall
Franchising
Chain Stores
Traditional channel

26. Marketing mix: Promotion
Demonstrations, consumer contests,
the use of novelties (free gifts),
and guaranteeing quality.
Brazilians enjoy loyalty programs
which gives them discounts from
being a loyal customer.

27. Marketing Communication
• Social media- Facebook and Twitter would be essential social media tools that
Pinkberry can benefit in Brazil.
• Customer loyalty- Incorporating a competition will give customers additional
motivation to visit.
• Customer referrals- A friend recommending a product or service instantly boosts a
consumer's opinion of that product or service. An option to have a "treat your
friend" promotion in which the company gives discount to the customer bringing
the friend. If the friend comes back that month with another friend, gets a free
frozen yogurt.
• Special events- Hosting a few special events or an ongoing event gives a boost in
the offseason. As “happy hour” or free frozen yogurt with a purchase.

28. WHICH MARKETS
TO ENTER External analysis
Political factors
Economical factors
Social factors
Technological factors
Environmental factors
Legal factors
Entry mode strategy
Marketing mix (the 4 Ps)
Case study
MARKET ENTRY
STRATEGIES
MARKET
PROGRAMME
STP strategy
Conclusion

29. Conclusion
Brazil is a country where foreign products and companies are welcomed by the
population. With warm months most of year, a frozen yogurt franchise has a lot of
potential. Even with some bureaucratic steps to open a business in Brazil it has a lot
of chances to succeed.

30. References
AZ central (n.a.). Marketing strategies to establish a frozen yogurt business. Retrieved on
April 19, 2017 from http://yourbusiness.azcentral.com/marketing-strategies-
establish-frozenyogurt-business-12671.html
Central Intelligence Agency. (2016). Brazil. In the world factbook. Retrieved on April 19, 2017
from https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Geert Hofstede. Retrieved on April 19, 2017 from https://geert-hofstede.com/brazil.html
Keegan, W. J. & Green, M. C. (2015). Global marketing (8th ed). Upper Saddle River,
NJ: Pearson Prentice Hall.
Meyer, A. (2010). Brazil environmental issues. Retrieved on April 19, 2017 from
http://www.brazil.org.za/environmental-issues.html

31. Nair, S. (2011). Top five compliance issues for businesses expanding to Brazil. Retrieved
on April 19, 2017 from http://www.corporatecomplianceinsights.com/top-five-
compliance-issues-for-businesses-expanding-to-brazil
PESTLE Analysis (2014). Pest analysis of Brazil: high potential for growth. Retrieved on
April 19, 2017 from http://pestleanalysis.com/pest-analysis-brazil-shows-high-
potential-growth/
XE Live Exchange Rates. Retrieved on April 19, 2017 from
http://www.xe.com/currencyconverter/convert/?Amount=3.50&From=USD&
To=BRL

32. Thank you