Entering in New Market- Coffee Chain in Brazil- international marketing
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This is a market entry strategies project for coffee chain which is going to introduce in Brazil from France. Poul is well known brand for pastry and coffee in france.
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Entering in New Market- Coffee Chain in Brazil- international marketing
- 1. I P B International Marketing Present by: Suman BHATTARAI Clément Charlot Marion Virot
- 2. Introduction - French company Paul - Created in 1889 by Francis Holder - The company offers differents types of hot and cold drinks, bread, sandwiches and pastry - Headquarters are located in Marcq-en-Barœul, North of France - 620 shops in the world O 370 in France O More than 15 000 employees in the world O A presence in 34 countries - Revenues of 830 millions of € (2015)
- 3. Economic environment 2/ Macro environment analysis - Largest national economy in Latin America - GDP per capita 2016: $15,048 - Brazil has a labour force of over a 107 million. - Tertiary sector: 64% of GDP - Unemployment rate 2017: 13.5% - Not the same currency: Brazilian REAL 1 BRL = 0.25 EUR - Sales of the Brazilian coffee sector in 2014 : R$ 7 billion
- 4. Demographic environment 2/ Macro environment analysis - Current Population 2016: 210 M inhabitants - Population Density : 25 Per M² - 85% of the Brazilian population is urban - Upper And Middle Class make up more than 100 Million of the population - Brazil Real Average Income Monthly : 2 142 BRL - More than 43% of the Brazilian population are between 25-54 Years.
- 5. Social And Cultural Environment 2/ Macro Environment Analysis - Language : Portuguese - Religion : Catholicism & Protestantism - Many Different Ethnicity (Discrimination) - The National Beverage Is Coffee - Fertility In Decline - Family Sizes : 2 Children Per Household - Disparity Between Men And Women
- 6. Political And Legal Environment 2/ Macro Environment Analysis - Equal Treatment Of Nationals And Foreigners - Competition Policy → Encouraged, Except In Certain Sectors - Foreign Companies: must apply for permission from the Federal Government - Price Controls : prices of services may be adjusted for inflation on a yearly basis
- 7. 3/ Microenvironment analysis Customers - Today’s recession is impacting brazilians consumptions habits. - They are less confident in consuming and for the economic future of the country - Brazilians try to eat/drink more at home.
- 8. 3/ Microenvironment analysis Customers - Brazilians are attached to local products. - They also likes quality foreign products - They having more and more takeaways for meals/drinks - Coffee consumption is increasing every year
- 9. 3/ Microenvironment analysis International coffee chains : - Starbucks & McCafé the most implanted Regional coffee chains : - Aroma café, Juan Valdez café,... Local coffee chains : - Coffee Lab, Sofa café,... Distributors
- 10. 3/ Microenvironment analysis - Only brazilians distributors - Because brazilian coffee free of charge and imports 10% taxes - Deal with local companies for development of others products - Better logistic - Local products Distributors
- 11. 4/ The International Marketing Strategy - International experience - High quality product & range - Image of a luxury shop - Competitive prices - No sitting space in most of stores - Product are not makes in shops which differs from french tradition - Unknown brand in South America Strengths : Weaknesses : SWOT Analysis
- 12. 4/ The International Marketing Strategy Opportunities - Big market potential (brazilian & south American) - Development of pastries & breads Threats - Adaptation to the market - No real differences compared others companies on the coffee segment SWOT Analysis
- 13. 5/ Market Entry Strategy Choice : Franchise - Easier way to enter in the market - Better option when culturally different - Lower risk choice
- 14. Psychographic Segmentation Lifestyle Personal test Values and Attitudes Geographic Segmentation Major Cities 5/ Market Segmentation Demographic Segmentation Age Group Population
- 15. 5/ Targeting Strategy Standardized Global Marketing Strategy ❖ Few Adaptation, Wide Target Area ❖ Varieties of French Bakery with Differents types of Coffee in Best Price for every types of Customers ❖ Targeting Age group (16 Above), ❖ Office Worker, Student, Tourists ❖ Target Cities: Rio de Janeiro & Sao Paulo
- 16. 5/ Positioning Strategy Quality and Price ❖ High Quality ❖ Well-known French Brand ❖ Worth of Price → Local Consumer Cultural Positioning (Coffee) → Foreign Consumer Cultural Positioning (Bakery)
- 17. 6/ Marketing Mix 1. Product Mix 2. Price Mix 3. Distribution Mix 4. Promotion Mix
- 18. 6/ Product Mix ❖ Product Extension - Communication Adaptation ➢ Few Product Adaptation when needed French Bakery will be in same test Varieties of coffee will be offer Labeling will be in Portuguese language ❖ Product / Brand Matrix ➢ Local Product / Global Brand
- 19. 6/ Product Mix Quality of Product ❖ High Quality of Coffee ❖ Fresh Bakery ❖ Global Brand Varieties ❖ Varieties of Coffee and French Bakery
- 20. 6/ Product Offer Coffee (local) - Expresso - Cappuccino - Macchiato - Latte - Mocaccino (dessert) - Affogato (dessert) - ... Bakery (typical french) - Croissant - Chocolate bread - Canelé - Macarons - Muffin - Cookies - ...
- 21. 6/ Price Mix Competitive Pricing Strategy ❖ Geocentric Global Pricing ❖ Price will be as same as Our Competitor WHY ? ❖ To Keep Brand Image ❖ To compete in new market ❖ To positioning
- 22. 6/ Distribution Mix Franchise ❖ Direct Sales ( Producer - Clients) ❖ Operating franchise coffee and bakery in 2 Major Cities ➢ Rio De Janeiro ➢ São Paulo ❖ Location ➢ Tourist Place ➢ Commercial Center ➢ Airport ➢ Other Attractive Places
- 23. Internal Decoration ❖ Well Decorated Ambience ❖ Great Place for gathering with friends ❖ A place of quiet contemplation
- 24. 6/ Promotion Mix Advertising: Newspaper, Radio, Billboards. Sponsorship in Football Public relations: Gift card, good service Social Media Campaign: Facebook, Youtube
- 25. Conclusion - Brazil got a lot of opportunities to start up a business - We choose to implement our shops in differents cities with high population (Sao Paulo, Rio de Janeiro) - Our shop will offer different varieties of product (local or not) - We will entry into the brazilian market through franchise