Presentation Brazil Marketing


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  • Sources – year?
  • Zona FrancaTax incentives to many Brazilian Industries - Manaus is the major city of this region
  • Bahia -” land of happiness” – culture/ dance/ festivities > 64% of pop is mulatos ( slang – coffee and milk)Foto sertao as well as the extensive cattle breedingVery tourism oriented > sometimes more expensive than going abroad
  • Contributes significantly towards the nation’s agricultural output (cattle breeding) ( 4 cattles for one person)This picture of brasilia is the senate and chamber of commons
  • The densest regionThe richest in terms of the total economic output It’s the business economic center of Brazil - Embraer (aviation) – competitor of Canadian Bombardier
  • Major immigrants are germans and italians.Curitiba- benchmark for transportIt’s the coldest region of Brazil with occasional frost.
  • Mercosul The Common Market of the South (Mercosul in Portuguese, Mercosur in Spanish) is an economic, political and social integration project created by Argentina, Brazil, Paraguay and Uruguay.In terms of economic integration the bloc already functions as a customs union, though in accordance with the Asunción Treaty of 1991 its ultimate objective is to become a common market.The four members of Mercosul have a total population of around 240 million and a combined GDP of more than one trillion dollars.
  • Even though Brazil is a leader in agribusiness and in the Doha round – which had an objective to decrease agriculture subsidies in rich countries and industrial subsidies in poor countries, this month unfortunately it was cancelled.
  • The market capitalization of BOVESPA increased from $710 billion in 2006 to $1,369.7 billion in 2007, registering an annual growth rate of 92%. However, the global economic downturn has lead to the market capitalization falling quite steeply, reaching $801.3 billion at the end of 2008, registering a drop of -41%. However, as seen the trend in 2009 the crisis is over.Industrias - empresas vale gerdau votorantim petrobras Reasons for growth Strong domestic market – increasing purchasing powerbillions of barrels of recently discovered light crudeEconomic stability Largest commodities exporter – not very impactec by crisisDifersified exporting partners
  • Osktoberfest Culinaria – sul Mate
  • Southeast region = biggest potential – 55% of household expenditure Extremely important to take in consideration culture and expensing differences in advertising in Brazil.Morumbi – chic Gini 55
  • 28% under 14 and underIn 2008, 27.3% is under 14 yrsIn 2020, 41.2% will be under 25 yrs
  • 1) Orkut – social network site by google - similar to facebook used in North America52% of Orkut users are in Brazil - 2007 33.5 Million2) Number of cell phones – 5th ( first China and USA)3) Internet:% crescimento internet 22% people blogging 37.1% internet retailing4) Cartoes de credito
  • High concentration of media: Rede Globo : 53% of the media market and 54% of hearingTV – Major source of information: 88% of Brazilians had a TV in 2001. Radio – Second major media – 88% listened to radio daily in 2001Internet: Growing, but not widely spreadTelemarketing – increasing phenomena for credit cards, banking and news papers Direct Mail – Supermarkets (similar to NA)Globo:Newspaper, radio, TV, sport channels, cable channels, Globo international.Vertical integration of channels – every knows that there is 8-830 reginal news, 8 30 – 9 national news and 9 -30 novelaControls the sport- Since it is the biggest media it controls when a certain match will take place – max audience Glbotransmissao do futebol – maisjogos ( pagamais ) controlaoshorarios – maioraudiencial – muitoesploradonamidia e Greater audience – national news to 11 pmMechanding in novelasDistribuicao de verba de propaganda no brasil > TV
  • High quality TV _ poor has access – paid by advertising
  • Source: IBOPE PNT – 2006Mon thru Sun– 6pm till midnightBrasil is our origin and our source of inspiration – one of Globos our principles
  • Extremely important to take in consideration culture and expensing differences in advertising in Brazil Controle de prop de cerveja – horarios – abusive ( too sexual) – nao pode com bichos ( copia do superball)Humor Hyper explorado- todos falando de futebol – ojounal esportido futebol – coca cola, refrigerantem
  • Casas Bahia largest retail chain store in BrazilIn the last 10 years: 10 x furniture/ 7X appliances/3X TVIn 2008 R$ 13,5 bilhões. 500 storesQuantovendequantaslojascomodistribuicao:Casas Bahia possui 8 Centros de Distribuição (CD) responsáveis pelo abastecimento de todas as lojas da rede. Os CDs estão localizados em Jundiaí, Ribeirão Preto e São Bernardo do Campo (SP), Betim (MG), São José dos Pinhais (PR), Duque de Caxias (RJ), Campo Grande (MS) e Pirajá (BA).Com 300 mil m² de área construída, o CD de Jundiaí é o 2º maior do mundo. Os depósitos de Duque de Caxias (RJ), Ribeirão Preto (SP), Betim (MG), São Bernardo do Campo (SP), Campo Grande (MS), São José dos Pinhais (PR) e Pirajá (BA) possuem, respectivamente, 180 mil, 40 mil, 21 mil, 96 mil, 12 mil, 70 mil, 14,5 mil m², todos de área construída % marketing Tvem 60 mesesQuantovende?Renda media – parcela – 72 meses –Price – comercialprecocasasbahiaIconos > peculiar < empresas tem queadptarsuaculutra Pele -Lula- giselebunchen
  • Presentation Brazil Marketing

    1. 1. Livia Mello<br />Eduardo Muracciole<br />
    2. 2. Brasil<br />Country Area: 8.511.965 sq Km<br />
    3. 3. Brazil – Key Facts<br />Country Name: Federative Republic of Brazil<br />Capital City: Brasilia<br />Government Type: Federal Republic<br />President: Luiz Inacio Lula Da Silva<br />Population: 190.01 million<br />Languages: Portuguese<br />States: 27 units of the Federation and 1 federal district which contains the capital city (Brasilia)<br />Currency: Real (equivalent to 0.582 US$)<br />Life Expectancy: 72 (total population)<br /> 68.4 (men)/ 75.7 (woman)<br />Religion<br />Ethnic Composition<br />Predominantly white and mulato<br />Predominantly Catholic<br />
    4. 4. Brazil – Territorial Division<br />Divided in 5 different regions<br />(by the Brazilian Institute of Geography and Statistics)<br />North Region<br />Northeast Region<br />Central-West Region<br />Southeast Region<br />South Region<br />
    5. 5. Brazil – Territorial Division<br />The North Region<br /><ul><li> 45.27% of the Brazil land area.
    6. 6. Lowest number of inhabitants.
    7. 7. Mainly unindustrialized and undeveloped.
    8. 8. 2% of GDP.
    9. 9. Key city to region development and trade– Manaus ( Zona Franca).
    10. 10. Most of the Amazon Rainforest and indigenous tribes (2% of population).
    11. 11. Main industry: lumber, mining (iron, aluminum and gold), agriculture, oil and gas and ecotourism.</li></ul>7 states<br />Amazon<br />Zona Franca<br />Amazonas river<br />
    12. 12. Brazil – Territorial Division<br />The Northeast Region<br /><ul><li>30% of Brazil’s population.
    13. 13. It’s the poorest region of Brazil (12% of GDP).
    14. 14. Main cities: Salvador, Recife and Fortaleza.
    15. 15. Economy : sugar, cocoa and cotton and tourism.
    16. 16. Semi-arid climate: Suffers from long droughts.
    17. 17. Major industries: tourism, agriculture (sugar cane and cotton) and extensive cattle breeding.</li></ul>9 states<br /> Sertão Nordestino<br />Porto de Galinhas - Pernanbuco<br />Salvador<br />
    18. 18. Brazil – Territorial Division<br />The Central-West Region<br /><ul><li>Low demographic population (just 6.4%).
    19. 19. Pantanal- world’s largest wetland area.
    20. 20. Cerrado (the world largest savanna).
    21. 21. Host of the capital city (Brasilia).
    22. 22. Contributes with 8% of the GDP.
    23. 23. Political business and tourism are very important for the region
    24. 24. Key industries: cattle breeding, mining, lumber, agriculture for subsistence .</li></ul>4 states<br />Cerrado Savanna<br />The Pantanal<br />Brasilia<br />
    25. 25. Brazil – Territorial Division<br />The South-East Region<br /><ul><li>38% of the population.
    26. 26. 58.5% of total GDP.
    27. 27. Economy: mining, manufacturing (machinery, electronics, automobile and aviation), energy production, coffee, sugar, tourism, petroleum, textiles, etc.
    28. 28. Business economic centers of Brazil : largest cities and companies - Sao Paulo and Rio de Janeiro.</li></ul>4 states<br />Rio de Janeiro<br />Sao Paulo<br />Industrial Parks<br />
    29. 29. Brazil – Territorial Division<br />3 states<br />The South Region<br /><ul><li>Wealthiest region by GDP per Capita : highest standard of living in Brazil.
    30. 30. 12.5% of Brazil’s population.
    31. 31. 16.5% of the GDP
    32. 32. Main industries: machinery and automobile, textiles, tourism, energy.
    33. 33. Settled mainly by European immigrants
    34. 34. It’s the coldest region of Brazil
    35. 35. Host of Curitiba – benchmark of urban planning </li></ul>Pomerode<br />Curitiba<br />Porto Alegre<br />
    36. 36. Gross Domestic Product<br />10th Economy in the world<br />Brasil GDP – Billions of US dollars<br />Source: International Monetary Fund<br />Brasil Growth Rate<br />5.9%<br />Brazil economy has not been badly affected…<br /><ul><li> Strong Trade Balance (Exports higher than Imports)
    37. 37. The country’s growth rate increased in 2008 to reach 5.9%
    38. 38. Modern financial system </li></li></ul><li>GDP by sector<br />Brasil GDP by Sector<br /><ul><li> Brazil is leader in agribusiness, but not very significant in terms of GDP
    39. 39. Services comprise 66% of the GDP, followed by industry and agriculture.
    40. 40. Tourism, IT and banking are the chief sub-sectors of services.
    41. 41. 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. </li></ul>Source: Datamonitor<br />
    42. 42. Brazil – Trade Balance<br />Brasil – Trade Balance by year<br />Source: Brazil Foreign Office ( <br /><ul><li> Brazil's exports amounted to around $197.9 billion (+23% compared to 2007)
    43. 43. The imports reached $172.9 billion in 2008 (+43% compared to 2007)
    44. 44. The country earned a trade surplus of $24.9 billion in 2008 (-38% compared to 2007)
    45. 45. Mercosul - Brazil, Argentina, Uruguay and Paraguay (Total GDP US$ 1 trillion )</li></li></ul><li>Brazil – Imports<br />Brasil Imports - Importance by country<br />Source: Brazil Foreign Office ( <br />Brasil Imports – Main Categories<br />Source: Brazil Foreign Office<br />
    46. 46. Brazil – Exports<br />Brasil Exports - Importance by country<br />Source: Brazil Foreign Office ( <br />Brasil Exports – Main Categories<br />Source: Brazil Foreign Office<br />
    47. 47. Brazil : Leader in Agriculture<br />Source: Secex<br />
    48. 48. Brazil – Foreign Direct Investments<br />FDI inflows (2001-2008)<br /><ul><li> FDI inflows into Brazil increased from around $35 billion in 2007 to $45 billion in 2008
    49. 49. Consistent growth from 2005 in terms of attracting FDI</li></li></ul><li>Sao Paulo Stock Exchange <br />Bovespa index<br />Market Capitalization<br /><ul><li>Market cap increased $710 billion in 2006 to $1,369.7 billion in 2007
    50. 50. Brazilian economy affected in 2008, but fully recovered.
    51. 51. Major factors: diversification of trade partners, development of internal market, economic stability, sustainable energy matrix and recent discovery of crude oil.</li></li></ul><li>Brazilian Diverse Culture<br />
    52. 52. Brasil - A Country of Contrasts<br /><ul><li>Opposite HDI in different regions –HDI of Norway and HDI of Africa.
    53. 53. Country of contracts: One of the highest Gini coefficient. “ Rich spends in three days what the poor spends in a year”
    54. 54. 30% of population with 72% of total disposable income. 5% with less than $1.25/day</li></ul>NORTH<br />POP – 8,1%<br />PP – 5,4%<br />NORTHEAST<br />POP – 27,6%<br />PP – 18%<br />MID-WEST<br />POP – 7,1%<br />PP – 6,6%<br />SOUTHEAST<br />POP – 42,6%<br />PP – 51,6%<br />SOUTH<br />POP – 14,6%<br />PP – 18,4%<br />POP=Population<br />PP=Purchasing Power<br />Globo presentation to MBAs<br />
    55. 55. Positive consumer behaviour<br />Easier availability of credit <br />Lower Risk Brazil<br /><ul><li> Middle class appetite for consumption
    56. 56. “ Buy now, pay later!”
    57. 57. Government incentives </li></li></ul><li>Young nation and noveaux riches<br /><ul><li>Unseen ways of living and buying among youngsters
    58. 58. New Rich with economic growth trends - 10% of households income raised 124% since 2002
    59. 59. Demand for luxury cars, beverages and designed closing</li></li></ul><li>Pull to the urban centers<br />São Paulo: 18 M<br />Rio de Janeiro: 11M<br /> Belo Horizonte: 3 M<br />
    60. 60. Demand for Technology<br />Internet and broadband users <br /><ul><li>Brazil = 5th in number of phones
    61. 61. 41.1 M fixed lines
    62. 62. 150.6 cell phones
    63. 63. Brazil = jump in credit cards use
    64. 64. Majority growth in poor areas
    65. 65. 75% of North/NE – income < R$ 1,000
    66. 66. SE – tourism, entertainment, clothing</li></li></ul><li>In Brazil, Sport is religion<br />
    67. 67. Brazil - leading TV market<br />China<br />US<br />Japan<br />Brazil<br />Germany<br />France<br />UK<br />Italy<br />Mexico<br />Spain<br />Households with TV (million) – Major Countries<br /> source: Globo presentation to MBAs<br />
    68. 68. Advertising Expenditure 2006 (US$ billion)<br />Media landscape in Brazil<br />Media consumption<br />
    69. 69. Globo – major Media <br />Free Broadcast TV<br />Newspaper Publisher<br />Pay TV Programmer<br />Radio Broadcasting<br />Sound Recording & E-commerce<br />Magazine Publisher<br />Feature Films Producer<br />Cable & Sat Pay TV Systems<br />Internet Portal<br />Non-profit foundation<br />Globo presentation to MBAs<br />
    70. 70. 75% of broadcast TV advertising market share<br />TV Globo’s Leadership<br />Signal reaches 99,4% of the Brazilian population<br />5 owned stations - 116 affiliate stations<br />Network sales in 2007: US$ 4.5 bi<br />59% prime time audience share<br />Home of the finest artistic and news talent <br />The largest production center in Latin America (2,500 hours/year)<br />Holds rights for the top sports events, films and TV shows<br />Exports programming to 130 countries<br />Globo presentation to MBAs<br />
    71. 71. MONDAYTUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY<br />5:30<br />6:00<br />7:00<br />8:00<br />9:00<br />10:00<br />11:00<br />12:00<br />13:00<br />14:00<br />15:00<br />16:00<br />17:00<br />18:00<br />19:00<br />20:00<br />21:00<br />22:00<br />23:00<br />24:00<br />1:00<br />2:00<br />3:00<br />4:00<br />5:00<br />MORNING<br />ENTERTAINMENT<br />NEWS <br />AFTERNOON<br />FILMS<br />SPORTS<br />OTHERS (Community, Educational,…)<br />EVENING<br />LATE EVENING<br />Globo Horizontal Programming<br />Globo presentation to MBAs<br />
    72. 72. Marketing<br /><ul><li> Celebrity endorsement
    73. 73. Language unity, but cultural diversity
    74. 74. Income discrepancies
    75. 75. Colors are crucial
    76. 76. Humor
    77. 77. Sport icons</li></li></ul><li>Marketing in two realities<br />Targeting Mass: <br />Casas Bahia <br />Targeting Niche:<br />Daslu<br /><ul><li>100% emotional
    78. 78. High margins
    79. 79. International = cool , but proud to be brazilian
    80. 80. Ambiance is key
    81. 81. Service is very important
    82. 82. Blogs, links to tweeter and Facebook
    83. 83. Celebrity – models, important Brazilian icons
    84. 84. Benchmark – largest retail
    85. 85. Revenues = R$ 13,5 billion
    86. 86. Prices = emphasis
    87. 87. Heavily on TV ( 33%)
    88. 88. Easy credit – “ carnets”
    89. 89. Buy now and pay a TV in 72 months!</li></li></ul><li>Bem-vindo a Volkswagen do Brasil<br />
    90. 90. <ul><li>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).
    91. 91. Domestic car demand in Brazil is approximately 2 million a year growing at 5% approximately (BNet, 2009).
    92. 92. 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).
    93. 93. Volkswagen is the automobile brand with the highest Recall in Brazil</li></ul>40% according to ABA(Associação Brasileira de Anunciantes, 2008)<br /><ul><li>Gol is the automobile model with the highest Recall in Brazil.</li></ul>25% according to ABA(Associação Brasileira de Anunciantes, 2008)<br /><ul><li>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)</li></ul>Volkswagen do Brasil<br />Key Facts:<br />
    94. 94. Volkswagen’s main products offer:<br /><ul><li> Robust cars with raised suspension and powerful motors, specially designed for bumpy dirt roads, ubiquitous in Brazil.
    95. 95. Reduced vehicles designed to deal with the Brazil’s congested cities where streets are narrow and parking and garage space is limited
    96. 96. Automobiles able to run on gasoline, ethanol or a mixture of the two.
    97. 97. Accessories and electronics included inside to provide the best experience</li></ul>Product Launch in Brazil:<br /><ul><li> 28 new products expected between 2009 y 2010 (Univision, 2009)
    98. 98. 3.5 billion to be invested in Volkswagen Brazil from 2009 until 2014 (Univision, 2009)</li></ul>Target Market in Brazil:<br /><ul><li> 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).</li></ul>Volkswagen do Brasil<br />
    99. 99. 1953: Volkswagen Fusca (Beetle)<br />Results: 3.350.000 cars assembled in Brazil<br />1970: Volkswagen Brasilia<br />Challenge: Recreate the Beetle but with a Brazilian flair <br /> (Brazil&apos;s president Rudolf Leiding) <br />Results: - The total production of VW Brasilia reached over one million. <br /> - Successfully exported to many countries in South America, Portugal and Philippine.<br />Chevette - Chevrolet<br />1980: Volkswagen Gol ( futebol)<br />Challenge: To build an all new front engined (cheap) vehicle to compete <br /> with the brand new Chevette from Chevrolet.<br />Results: - Uninterruptedly the best-selling car in Brazil since 1987.<br /> - Over 5 million Gols have been produced since 1980. <br /> - 5 generations launched since 1980<br />Gol G1 (80-94)<br />Gol G2 (94-99)<br />Gol G4 (05-08)<br />Gol G5 (08 +)<br />Gol G3 (99-05)<br />VW Brazil: A history of constant adaptation…<br />
    100. 100. Street Marketing<br />Billboards:<br />Objective: To communicate the new VW Polo comes with “parking sensors as standards” to avoid scratches and dents<br />Place: In the parking lots of the biggest shopping centers in Brazil<br />(1 min, 16 sec)<br /><br />VW: Advertising Activities in Brazil<br />TV Commercials<br /><ul><li> Intense participation in terms of TRP
    101. 101. Maximal expression of creativity</li></ul>New Products:Gol 5th Generation (31 sec)<br />(With Gisele Bundchen and Silvester Stalone)<br /><br />Regular Products: SpaceFox (1min, 02 sec)<br />(puppy-fish)<br /><br />
    102. 102. VW: Advertising Activities in Brazil<br />Volkswagen Run - 10K<br />Anchieta – Espiritu Santo<br />
    103. 103. VW: Advertising Activities in Brazil<br />Super Surf - Competition<br />Bahia, Ubatuba, Guaruja<br />
    104. 104. VW: Advertising Activities in Brazil<br />Rally – Motor Sport<br />Dakar, Dos Sertoes<br />
    105. 105. VW: Advertising Activities in Brazil<br />Volkswagen sponsors Brazil’s Soccer Team<br /><ul><li> The company will use the Brazil team and logos in its advertising campaigns.
    106. 106. The team will travel on a Volkswagen coach.</li></ul>Flavio Padovan, Volkswagen Brazil&apos;s vice president commented:<br />&quot;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.&quot; <br />
    107. 107. Hope to see you at Rio Olympics 2016!<br /> Obrigada!<br /><br />