This document provides background information on promoting Vespa scooters in the Brazilian market. It discusses Brazil's economy, demographic and cultural factors. Specifically, it notes that Brazil has a large urban population and environmentally conscious middle class that is well-suited for Vespa scooters. It also analyzes Brazil's culture using Hofstede's dimensions, finding they place importance on status symbols, tight family bonds, and corruption can arise from protecting friends/family.

1.
Aidan
Barrett
ADV
645
Promoting
Vespa
in
the
Brazilian
Market

2. I.
Introduction
“Brazil
presents
a
huge
opportunity
for
these
companies.
It
combines
a
rapid
expansion
of
the
middle
class
with
some
of
the
most
environmentally
and
socially
aware
consumers
in
the
world.”1
Although
the
economy
of
Brazil
has
faltered
in
the
last
few
years2
it’s
middle
class
market
has
seen
huge
growth,
and
will
continue
to
expand
into
the
future.1
85%
of
the
country’s
population
live
in
cities3;
combine
that
with
the
fact
that
Brazilian
consumers
are
some
of
the
most
environmentally
conscious
consumers
in
the
world,1
and
you
get
a
market
that
is
ripe
for
the
Vespa
Scooter.
Throughout
this
paper,
I
will
give
a
brief
breakdown
of
Brazil’s
current
economic
situation
–
including
the
most
recent
corruption
scandal
–
an
overview
of
the
advertising
industry,
as
well
as
cultural
factors
and
consumer
trends
that
could
positively
affect
the
sales
of
Vespa
products
throughout
the
country.
II.
Background
Brazil
is
the
largest
country
in
South
America,
it
shares
borders
with
Argentina,
Bolivia,
Colombia,
French
Guiana,
Guyana,
Paraguay,
Peru,
Suriname,
Uruguay
and
Venezuela.
The
only
two
countries
it
doesn’t
share
a
border
with
are
Chile
and
Ecuador.3
The
capital
-­‐
Brasilia
-­‐
is
located
in
the
South
Eastern
part
of
the
country.3
The
official
language
is
Portuguese,
but
due
to
a
large
amount
of
immigrants,
it’s
not
surprising
to
here
other
languages
including:
Spanish,
German,
Italian,
Japanese
and
English.3

3. Brazil
enjoys
a
Tropical
climate,
except
in
the
Southern
portion
of
the
country,
where
the
climate
is
more
Temperate.
There
are
recurring
droughts
in
the
North,
as
well
as
floods
and
occasional
frost
in
the
South.3
The
demographic
break
down
of
the
country
is
as
follows:
47.7%
of
the
population
is
white,
43.1%
are
Mulatto,
Blacks
make
up
7.6%,
while
Asian
and
Indigenous
groups
make
up
1.1%
and
.4%
of
the
population
respectively.3
There
are
five
large
cities
in
the
country.
Sao
Paulo,
at
20.8
million
is
the
most
populated.
Behind
Sao
Paulo
are
Rio
de
Janeiro,
Belo
Horizonte,
Brasilia
and
Fortaleza.
The
country
is
also
made
up
of
26
States
and
one
Federal
District.
As
of
January
1st,
2011,
the
president
is
Dilma
Rousseff,
and
the
vice
president
is
Michel
Miguel
Elias
Temer
Lulia.
The
Brazilian
agriculture,
mining
and
manufacturing
industries
are
already
well
developed
and
contribute
hugely
to
the
national
economy.
The
national
GDP
has
risen
from
$2.989
trillion
in
2012
to
$3.073
trillion
in
2014.
In
addition
to
the
national
GDP,
per
capita
income
has
also
risen
from
$15,000
in
2012,
to
$15,200.3
While
the
national
and
per
capita
income
have
increased
within
the
last
three
years,
the
level
of
income
inequality
has
decreased
annually
for
the
past
15
years.3
III.
Hofstede’s
Cultural
Dimensions
According
to
Hofstede,
Brazil’s
Power
Distance
is
69.4
Brazilians
believe
that
hierarchy
should
be
respected,
and
that
inequalities
between
people
are
an
acceptable
part
of
life.
Status
symbols
are
also
important,
as
they
indicate
social
position,
and
communicate
the
amount
of
respect
that
should
be
shown.4
This
high

4. Power
Distance
is
apparent
throughout
the
business
world,
where
decisions
are
usually
made
by
a
single
boss,
who
takes
complete
responsibility.4
Another
notable
aspect
of
Brazilian
culture
regarding
Hofstede’s
Dimensions
is
their
low
score
(38)
for
Individualism.
Brazilians
form
very
tight
knit
groups
that
are
made
up
of
direct
and
extended
family
members.4
The
tendency
to
stick
to
groups
is
visible
in
the
business
world
as
well.
Older,
more
established
family
members
are
expected
to
look
out
for
younger
relatives,
and
help
them
get
jobs
through
their
connections.
This
protective
group
dynamic
is
important
to
know
about
prior
to
business
meetings.
Important
meetings
regarding
business
and
professional
matters
will
begin
with
very
general
conversations;
this
is
done
to
get
to
know
each
other,
and
to
establish
trust
between
the
two
parties.4
Unfortunately
this
same
idea
of
looking
out
for
friends
and
family
can
lead
to
corruption
when
carried
out
too
far.
The
latest
scandal
can
attest
to
this.
Petrobras,
the
state
run
oil
company
has
recently
come
under
fire
for
an
enormous
kick
back
scheme
estimated
to
be
worth
almost
$
4
Billion.2
The
kick
backs
came
from
inflated
contracts
which
were
given
to
favored
construction
companies.
The
money
that
that
was
not
used
in
the
contract
was
funneled
back
to
government
officials
and
used
for
political
campaigns.2
As
of
now,
35
people
have
been
convicted
of
crimes
ranging
from
Corruption,
to
money
laundering,
to
formation
of
a
criminal
organization.2
There
has
been
talk
that
the
president
and
vice
president
were
aware
of
these
kickbacks;
both
parties
have
refused
any
knowledge,
and
no
evidence
has
come
forward
proving
otherwise.2

5. V.
Advertising
Industry
and
Regulation
The
advertising
industry
in
Brazil
has
been
growing,
and
will
continue
to
grow
throughout
the
upcoming
years.
According
to
emarketer,
advertising
in
Brazil
will
pass
$20
Billion
a
year
in
2015.
On
it’s
own,
digital
advertising
will
reach
$3
Billion
in
2015.7
In
addition
to
these
benchmarks,
the
advertising
industry
as
a
whole
is
projected
to
grow
10%
in
2015.
Brazil
is
only
one
of
four
countries
projected
to
grow
by
double
digits.7
As
of
2015,
Brazil
had
the
6th
largest
media
advertising
budget
in
the
world,
and
accounted
for
3.6%
of
global
ad
spending.8
This
is
also
going
to
grow;
Brazil
is
projected
to
account
for
4.1%
of
the
global
advertising
budget
by
2019.8
Brazil
has
an
advertising
self-­‐regulation
code,
which
is
regulated
by
the
Brazilian
Advertising
Self
Regulation
Council.6
In
2014,
the
National
Council
For
the
Rights
of
Children
and
Adolescents
(part
of
the
Department
of
Human
Rights
of
Brazil)
passed
Resolution
163.
This
resolution
deemed
all
advertising
directed
at
children
abusive,
and
therefore,
illegal.6
“The
practice
of
directing
advertising
and
marketing
communication
to
children
with
the
intention
of
persuading
them
to
consume
any
product
of
service”6
is
now
illegal
in
Brazil.6
With
the
exception
of
advertising
to
children,
which
is
plainly
illegal,
the
Brazilian
regulating
council
only
regulates
advertisements
that
have
already
been
exposed
through
the
media;
there
is
not
prior
censure
of
advertisements.6
These
regulations
ensure
advertisers
follow
and
maintain
a
“due
sense
of
social
responsibility,
commercial
principles
of
fair
competition,
conformity
to
the
purposes
of
national
economic,
educational,
and
cultural
development.”6
There
are
also

6. “specific
principles
to
be
observed
in
national
advertising,
such
as:
respect,
decency,
honesty,
truthful
representation.”6
Advertisements
should
also
avoid
causing
fear,
exploiting
superstition,
and
should
not
contain
anything
that
may
lead
to
violence.6
If
these
regulations
are
thought
to
have
been
violated,
the
advertiser
will
face
the
Internal
Statute
of
Ethics
Committee.
There
are
6
panels
in
6
cities
throughout
the
country.
The
committee
has
132
members.6
IV.
Target
Market
Active
men,
between
the
ages
of
18
and
35
living
in
cities
would
be
a
perfect
target
market
for
Vespa.
The
target
would
need
to
be
at
least
in
the
middle
class,
with
enough
disposable
income
to
be
able
to
purchase
a
luxury
product.
With
proper
advertising
and
positioning,
Vespa
could
flourish
in
this
market,
as
“Brazil
ranks
second
only
to
the
U.S
in
terms
of
global
spending
on
sustainability
initiatives,
and
this
looks
set
to
grow
between
2011
and
2016.”1
Brazilians
are
very
aware
of
the
environment
and
are,
in
general,
very
socially
conscious.1
However,
high
awareness
of
environmental
issues
does
not
necessarily
lead
to
changes
in
personal
habits
or
attitudes.1
According
to
Eight
Sustainability,
an
eco
friendly
research
group,
“trying
to
promote
an
inferior
product
or
service
on
the
grounds
that
it’s
‘sustainable’
will
only
appear
to
serve
a
niche
market.”1
Brazilians
do
care
about
sustainable
products,
but
they
will
not
change
based
solely
on
the
sustainability
of
the
product;
it
must
be
better
than
what
they
are
currently
using.1
This
is
all
good
news
for
Vespa.
Sustainable
and
eco-­‐friendly
are
traits
that
consumers
notice,
but
“70%
of
buying
decisions
are…driven
by
factors
such
as
the
need
to
belong,
and
the
need
for

7. recognition,
status,
and
sexual
success.”2
In
addition
to
this,
brand
name
recognition
is
still
one
of
the
most
important
factors
in
the
purchase
decision.
Promoting
Vespa
as
an
environmentally
friendly
alternative
to
gas-­‐guzzling
cars,
while
emphasizing
the
iconic
style
and
brand
name
of
Vespa
would
be
a
hit
with
the
Brazilian
consumer.
Employing
this
tactic
will
allow
the
consumer
to
show
off
their
success
and
style,
while
maintaining
an
environmentally
friendly
life
style.
VI.
Conclusion
Within
the
last
decade,
30
Million
Brazilians
have
made
their
way
into
the
middle
class.2
Vespa
can
take
advantage
of
this
emerging
market
by
positioning
itself
as
the
top
of
the
line
scooter.
Vespa
needs
to
emphasize
its
luxurious
qualities
and
iconic
brand
history,
and
at
the
same
time,
show
consumers
it
is
an
eco-­‐friendly,
sustainable
mode
of
transportation.
Vespa
needs
to
show
consumers
it
is
the
perfect
combination
of
style,
quality,
and
sustainability.
This
combination
will
attract
the
Brazilian
consumer,
as
they
are
willing
to
buy
eco-­‐friendly
products,
but
only
if
they
offer
more
than
what
they
currently
own.
Based
on
the
evidence
at
hand,
I
believe
it
would
make
more
sense
to
introduce
the
Vespa
Scooter
to
the
Brazilian
market,
as
opposed
to
the
Indian
market.
Although
India
has
a
much
higher
population,
and
will
see
an
exponential
increase
in
its
global
middle
class
population,
I
believe
the
style,
heritage
and
added
benefit
of
sustainability
of
Vespa
would
be
much
more
attractive
to
the
Brazilian
consumer.
Vespa
is
luxurious
enough
to
show
the
driver’s
status,
it’s
a
well-­‐known
name
with
great
brand
equity,
and
it
has
the
added
benefit
of
being
an
eco-­‐friendly
means
of
transportation.
Vespa
could
flourish
in
the
Brazilian
market
place.

8.
Works
Cited
1. Burros,
P.,
Cardosa,
F.,
&
Kingaby,
H.
(n.d.).
Emerging
Economies
Consumer
Behavior
Change:
Brazil.
2. Petrobras
Scandal:
Brazilian
Oil
Executives
Among
35
Charged.
(2014,
December
12).
Retrieved
April
1,
2015,
from
http://www.theguardian.com/world/2014/dec/12/petrobras-­‐scandal-­‐
brazilian-­‐oil-­‐executives-­‐among-­‐35-­‐charged
3. CIA
Factbook.
(n.d.).
Retrieved
April
1,
2015,
from
https://www.cia.gov/library/publications/the-­‐world-­‐factbook/geos/br.html
4. (n.d.).
Retrieved
April
1,
2015,
from
http://geert-­‐hofstede.com/brazil.html
5. Advertising
to
Children
Now
Illegal
in
Brazil.
(2014,
April
10).
Retrieved
April
1,
2015,
from
http://www.consumersinternational.org/news-­‐and-­‐
media/news/2014/04/advertising-­‐to-­‐children-­‐now-­‐technically-­‐illegal-­‐in-­‐
brazil/
6. Rocha,
V.,
Hungria,
C.,
&
Umekita,
D.
(n.d.).
Advertising
in
Brazil:
The
Success
of
Self-­‐Regulation.
Global
Advertising
Lawyers
Alliance.
Retrieved
from
http://www.gala-­‐marketlaw.com/pdf/AdvertisingRegulation.pdf
7. Total
Media
Ad
Spending
in
Brazil
to
Pass
$20
Billion.
(2015,
April
10).
Retrieved
April
1,
2015,
from
http://totalaccess.emarketer.com/Article.aspx?R=1012339&dsNav=Ro:-­‐
1,N:411-­‐685,Nr:NOT(Type:Comparative
Estimate)
8. Total
Media
Ad
Spending
Share
Worldwide.
(2015,
March
12).
Retrieved
April
1,
2015,
from
http://totalaccess.emarketer.com/Chart.aspx?R=167860