Our team was given the challenge to introduce a successful product to a country where it is not yet existant. We chose to bring Smirnoff Vodka to Brazil.

1. Team Brazil
Smirnoff Vodka
Kendra Goldman Joseph Kelley
Jonathan Lynch Jennifer Murdix
David Shake Malcolm Winston-Townsend

2. History
 Brazil was discovered in 1500 by Pedro Alvarez Cabral
 On September 7th, 1822 Brazil had their first independence day
 Brazil was officially free from Portugal and was now its own country
 1888 slavery was abolished
 1945 Brazil becomes a member of the United Nations

3. Geography
 Located in South America
 Broken up into 5 separate regions:
northern, northeast, west
central, southeast, and the
southern region
 Each region has its own
geographical characteristic
 Some of the world’s largest
mountain ranges, plateaus, rain
forests and rivers
 Although the regions also contain
valleys, the majority of Brazil is
covered with mountains and rain
forests.

4. Social Institutions
 Family is the foundation of Brazil in the social structure
 Children are expected to live with their family until marriage
 The education systems in Brazil are not as strict as the American
culture
 In Brazil it is mandatory for children of ages six to fourteen to
attend school
 Brazil is not run by one ruler; they have political parties similar
to America’s such as judicial, executive, and legislative
 Business customs are significant to any company especially when
going international as they may very drastically or in this case be
fairly similar

5. Business Practices
 Negotiation Style-
 A lot of touching and body language
 Tend to “fill” silent periods with arguments or
concessions
 Nonverbal Behavior-High Disclosure Rate

6. Religion
 One of the Seven Wonders of the World, O Cristo
Redentor, translated as Christ the Redeemer
Roman Catholic Protestant Spiritualist
Other Unspecified Athiest
2% 2%
1%
7%
15%
73%

7. Aesthetics
 A well-known Afro-Brazilian form of martial arts
incorporated with dance is known throughout
clubs, schools, and the streets as Capoeira
 Not only a beautiful art form recognized by many but it
is a representation of past slaves longing for freedom
throughout the country
 Considered to be a sport

8. Aesthetics Continued
 Brazilian carnival which takes place 40 days before
Easter and lasts for four days straight
 Carnival starts on Saturday and finishes on Fat Tuesday
with the beginning of Lent on Ash Wednesday

9. Living Conditions
 Health care and sanitary living conditions vary widely
from region to region
 There is a wide social gap between the northern and the
southern regions
 The majority of the population lives in urban areas (87%)
 Northeast region faces the worst health conditions in the
whole country
 Widespread of diseases which calls for serious medical
attention

10. Recreation & Health
 There are a majority of people who drink dirty water
and have improper nutrition while living in these poor
conditions
 A majority of the 60% of the population who use the
public health care system are limited to the amount of
healthcare services provided
 Statistics show that children born in Favelas area in
Brazil are six times more likely to die than other
children born into middle class families

11. Language
 The official spoken and written language of Brazil is Portuguese
 Spanish
 Other languages that are used in the country is a small
percentage of German, Italian, and English

12. Population
 Over 199 million people
 Number 5 largest population
in the world
 This population supports a
huge target market of young
adults
 Per 1,000 live births there are
20.5 deaths

13. Key Economic Variables
GDP Total $2.294 Trillion
GDP Growth Rate 2.70%
Personal Income Per Capita $11,800
Average monthly family Income $731
Ports 36 Deep-Water Ports
Miles of Rail Roads 19,186
Miles of Paved Highways 114, 425 (2002)
Telephone (Main Lines) 43.026 million (2011)
Mobile Devices 242.232 million (2011)
Comparison to the World 4
Internet users 75.982 million (2009)
Radio <1000 radio stations
Television 100 TV stations

14. Economic Variables Continued
 Known for exporting
 Transport equipment
 Iron ore
 Soybeans
 Footwear
 Coffee
 Autos

15. The Product
 Smirnoff Triple Distilled Vodka
 Contains 40% alcohol
 Originated in a small distillery within
Moscow in the late 1800’s

16. Additional Product Information
 Advantages- Pleases several different preferences
within one target market
 Different flavors
 Different types of Smirnoff beverages (5-40% alcohol)
 Problems- 8-15 % of the burden of disease in South
America is attributable to alcohol compared to only
4% worldwide
 Need to provide warning labels
 Usage- Beverage to be enjoyed at different social
outings or on an individual basis
 Positioning- Currently the World’s leading vodka

17. Target Market
 Primary Market Segment
 Young adults native to Brazil
 Night club owners
 Secondary Market Segment
 American or European tourists who are already familiar
with the product

18. Price & Competitors
 Average price per 750 ml bottle is $30.00
 Smirnoff with our rates will come in $2.16 less expensive
 It is a small difference that still keeps us in the same
middle grade class, however it gives us an advantage over
Amazon Rainforest

19. Pricing & Structure
 Keep price equivalent to that of the U.S.
 Brazilian Real compared to the USD is about 2 to 1 or
about $1.99 Real to every 1 USD
TABLE 1. Price By Bottle Price By Bottle Price By Case Price By Case
Product: (750 ml) (1.75 L) (12-750ml Btls) (6-1.75L Btls)
Smirnoff Classic $13.99 USD $24.99 USD $159.49 USD $142.44 USD
Smirnoff $13.99 USD $24.99 USD $159.49 USD $142.44 USD
Flavors
Signature Line
Smirnoff N/A $19.99 USD N/A $116.44 USD
TABLE 2. Price By Bottle Price By Bottle Price By Case Price By Case
Product: (750 ml) (1.75 L) (12-750ml Btls) (6-1.75L Btls)
Smirnoff Classic $27.84 BZ $49.72 BZ $318.33 BZ $283.41 BZ
Smirnoff $27.84 BZ $49.72 BZ $318.33 BZ $283.41 BZ
Flavors
Signature Line
Smirnoff N/A $37.89 BZ N/A $231.68 BZ

20. Distribution & Logistics
 Ship from current bottling facilities
 Keep price of product equivalent to what it is sold for
in America with additional tax to cover shipping
charges
 Shipped to:
 Nightclubs
 Local markets and grocery stores
 Resorts

21. Promotional Efforts
 Increase in internet users
 Broadcast on Youtube, Google, Yahoo News, etc.
 Traditional ads losing power/effectiveness
 More interactive environment is on the rise in Brazil
 Magazines
 Revista VIP
 Cool Magazine
 Elle Brazil
 Tela Viva
 Televised
 MTV Brasil- Similar to America’s MTV
 Gazeta-Similar to ESPN

22. Promotion Continued
 “Five years after Gilberto Kassab, the mayor of Sao
Paulo, Brazil passed the "Clean City Law", banning all
visual pollution around the city, both citizens and
businesses are thankful”
 Coupons and free samples will be provided at:
 Clubs
 Resorts
 Casinos
 Beaches
 Utilizing Brazil’s soccer team:
 5-time World Cup Champions
 Commercials
 Magazine Ads
 In the stadium during the games

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