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Finish Line Inc. Profile:...............................................................................................................................1

History of Brazil..........................................................................................................................................1
Criminal Statistics:......................................................................................................................................1
Brazilian Business Customs:.......................................................................................................................2
Religion:......................................................................................................................................................2
Trade & Commerce:....................................................................................................................................2
Political Factors:..........................................................................................................................................2
Social Factors:.............................................................................................................................................2
Sports/Leisure:............................................................................................................................................2
Demographics. Table 1: Brazil Demographic Table (CIA, 2013)...............................................................3
Table 2: Brazils Government Data and Statistics (CIA, 2013)...................................................................3
BRAZIL ECONOMIC OUTLOOK:...........................................................................................................4
Sports Consumer:........................................................................................................................................5
Sports Market:.............................................................................................................................................5
Market.........................................................................................................................................................6
Target Market:.............................................................................................................................................7
Plenty Space for Market Growing...............................................................................................................9
Communication:..........................................................................................................................................9
Communication Mix....................................................................................................................................9
Market Segmentation...................................................................................................................................9
Demographics segmentation:.......................................................................................................................9
Psychographics and behavioral segmentation:...........................................................................................10
Geographic segmentation:.........................................................................................................................10
Targeting:...................................................................................................................................................10
Following are the some of the proposed target strategies of Finish Line:..................................................10
Market Positioning:...................................................................................................................................10
Strategy Summary.....................................................................................................................................10
Pricing strategy:.........................................................................................................................................10
Market expansion strategy:........................................................................................................................10
Challenges ahead:......................................................................................................................................11
Brazilian Consumers proactively search for savings:.................................................................................11
Some remain brand loyalbut only if the price is right............................................................................11
Once they trade down, they might not go back........................................................................................11
There are splurges in select categories.......................................................................................................11
Brazilian Consumers shop across channels................................................................................................11

Finish Line Inc. Profile:

Finish Line is a retailer of athletic shoes, apparel and accessories. The Company operates approximately
590 Finish Line stores, which average over 5,550 square feet, in approximately 40 United States' states
and Puerto Rico. In addition, Finish Line operates an e-commerce site, www.finishline.com, as well as
mobile commerce through m.finishline.com. Finish Line carries a selection of men's, women's and kids'
athletic shoes (footwear), as well as an assortment of apparel and accessories (soft goods). Finish Line
offers various brand names, which include Nike, Brand Jordan, Adidas, Under Armor and Puma.
Under the Finish Line brand, the Company is the retailer of athletic shoes, both in-store and online, for
Macy's Retail Holdings, Inc., Macy's Puerto Rico, Inc. and Macys.com, Inc.
History of Brazil
A Short History of Brazil examines the events that have led to Brazil's ascendancy, looking at the
indigenous peoples who populated the territory until its discovery in 1500 and chronicling the
tempestuous years since, leading to the economic miracle of recent years. It covers the three centuries of
Portuguese colonial rule when sugar became the main export, produced with the help of around three
million slaves who were forced to make the deadly crossing of the Atlantic from Africa. It describes how
Brazil declared independence from Portugal as a monarchy in 1822, the monarchy being replaced by a
republic in 1889, and details the pattern of boom and bust in the Brazilian economy since then, covering
the lives of some of the authoritarian rulers that seized power along the way. Finally, A Short History of
Brazil looks at the many difficulties Brazil faces in the 21st century the devastating social problems
resulting from its dramatic economic inequality and the often ruthless exploitation of the country's natural
resources which is a topic of major concern for the entire world.
The recent advancement of the internet and other technologies broadcasting live events across the world,
has sparked the advertisement industry of an astronomical magnitude. Nations across the world are
pitching to the appropriate committees to host major world events such as; the World Cup - a soccer
(football) tournament, Summer Olympics, Winter Olympics, Mrs. Universe Pageant, and other worldly
events to profit from the influx of tourist dollars, and advertisers in which will boost the host nations
economy.
For the eleventh time in history a country will host the World Cup, and the Summer Olympics, and the
third time within two years apart (Kwizmi, 2013, para.1). Brazil is causing multi-national companies
mass hysteria to acquire a piece of the marketing share, and the huge profits it can warrant a company.
According to Laura Stampler of Business Insider (2013), a digital video advertiser can receive a billion
views during World Cup 2014. Simply speaking, that means huge profits for companies.
Brazil, a country that has every major multinational corporation on their toes will open their doors for the
world to see, in the beginning of summer 2014 and again in 2016 for the Summer Olympics.

Criminal Statistics: Crime in Brazil is staggering, and may deter small business dealings within city
limits. Above statistics do not show racial breakdowns of homicides. Many studies have shown that
organized crimes, gangs, drug cartels, and basic criminals are indeed a large part of Brazils social
problems, but the governments lack of attention to the crime rate and its effortless agenda to improve
such; is looked upon as a bigger issue.
Brazilian Business Customs: The official Brazil website Brazil.org (2014), share that their culture
is very affectionate and when conducting business having certain etiquettes and expectations must be
adhered to, in order to be successful. The government notes that In business relationships, Brazilian

businessmen will usually get to know one another before committing to long-term business dealings, as
they want to know those with whom they deal.

Religion:

The Brazilian government (2014) reports, from their recent census, two-thirds of the
population are identified as Roman-Catholic, awarding them the country with the most Catholics. Other
religious groups are present but as stated above most are Catholics. Only 1% of the nation do not believe
in a supreme God, or religion. Catholicism is Brazils official religion (Brazil.org, 2014).

Trade & Commerce:

Customs procedures in Brazil are highly bureaucratized, and in addition

Brazilian legislation is full of exceptions from the adopted general standards. Many goods require
obtaining an import license before importing, granted after a thorough verification of the import rights.
The Brazilian import tax system is one of the most complex in the world. There are dozens of import
taxes and many ways of their calculation.

Political Factors: The government is proactive and stable and there is no political instability in the
country at the moment. However, for how long? This is something which cannot be predicted, as the
modern history of Brazil indicates things can change overnight, especially during elections, as the
political situation tends to heat up a great deal.
Corruption still remains a big issue in the country and its worsening. It has escalated to the extent that
even opening a small business (at times) may require you to make payments to government
representatives and officials. According to a survey by Transparency International, Brazil is ranked
72nd out of 180 countries when it comes to corruption. This is even higher than economies like Turkey,
Bulgaria and Cuba.

Social Factors:

There is economic inequality with the population as around 20% of the population
lives under the poverty line. Looking at the class distribution, there are a considerable number of wealthy
citizens and a huge segment of people with minimal incomes. The middle class is growing. However,
there is still time for it to establish. In addition, 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. The country hosted the FIFA World Cup 2014 and a majority of the population has a keen
interest in football.

Sports/Leisure: The Brazilian people are very involved in sports. Most of the people regularly follow
and participate in veracious kinds of sports. The most popular sport of Brazil is football. This sport is in
the blood of the people and can be considered a cultural phenomenon. The climatic conditions of Brazil
are perfect for playing and practicing football. Brazil is the only country to have been participated in all
the Football World Cups and even won the tournament five times (1958, 1962, 1970, 1994 and 2002).
The World Cup draws Brazilians together, with people skipping work to view the national team play.
Besides football volleyball is becoming popular in Brazil. In 1992, during the Olympic Games in
Barcelona, the golden generation conquered the gold medal. Ever since the interest has only grown. It has
been said that the strength of Brazilian volleyball was in fact built around the culture associated with
people playing beach volleyball all day at the famous beaches such as those in Rio de Janeiro.

Demographics. Table 1: Brazil Demographic Table (CIA, 2013)

Ethnic
Groups
Religion

White:
Mulatto:
Black:
Other:
53.7%
38.5%
6.2%
0.9%
R. Catholic
Protestant
Spiritualist
Voodoo
73.6%
15.4%
1.3%
0.3%
Language
Portuguese
Population
201.009,622
Age 0-14
Age 15-24
Age 25-54
th
6 in world
24.2%
16.7%
43.6%
Median Age
Total
Male
Female
30.5
29.5
31.1
Birth Rate
14.97 births / 1,000 population world comparison: 133
Death Rate
6.51 death / 1,000 population world comparison: 152
Table 2: Brazils Government Data and Statistics (CIA, 2013)

Other
2%
Age 55 +
15.5%

Government Type:

Federal Republic, comprised of 26 states and one district. Capital is Brasilia.

President is Dilma Rousseff (term started Jan.1, 2013).

Legal System
Educational
Statistics
Internet

Civil Law (2002), Constitution ratified Oct. 5, 1988

Education expenditure 5.8% of GDP (49 th in world), Literacy 90.4%. Male 90.1%, Female 90.7%
(are able to read above the age of 15)
Top-level domain, managed by the Brazilian Internet Steering Committee. Ranked fourth in the
world with 23, 456, 00 Internet hosts, 10th in the world with 48,572,160 IPv4 addresses allocated,
23.6 per 100 residents Facebook is number one site (2013).

Energy
2013)

(EIA,

8th Largest Energy consumer in the world. 13 Billion Barrels of Crude oil available in reserves (US
and China chief importers). 2nd Largest world producers of Ethanol. 14 Trillion cubic ft. of natural
gas available. 2 active Nuclear Power Plants (2 units), 1 under construction.

Telecommunicatio
ns
Transportation

Center and South Brazil have 3G HSPA, DSL ISDB based Digital TV. Other areas of the country,
particularly the north and northwest regions, lack telecom including basic analog telephone lines.
5.5% of the roads are paved and 94.5% are unpaved. The most important highway of the country is
BR-116 and the second is BR-101. 2 International Airports (Guarulhos International Airport in So
Paulo and Galeao International Airport in Rio de Janeiro). High-speed rail under construction.

BRAZIL ECONOMIC OUTLOOK:

Brazil is the worlds fifth largest country by both population and total area. The countrys great natural
beauty and biodiversity is on display from the northern cities of Fortaleza and Manaus in the Amazon
rainforest to Porto Allegre in the south. The breathtakingly picturesque, cosmopolitan coastal city of Rio
de Janeiro vies with business-driven Sao Paulo as leading hubs of Brazils economic dynamism.
Brazils economy is slowly heading towards a recovery. Monthly data suggest that the recession
continued to lessen in 2016 Q3 although data remains poor. Industrial production rebounded in September
and the current account deficit moderated, but retail sales continued to fall in August. Leading indicators
for 2016 Q4 continue to show some improvement: consumer confidence rose in October and the
manufacturing PMI recorded the best result since January. PMI (Purchasing Managers Index) is an
indicator of the economic health of the manufacturing sector. The decline in GDP has already hit rock

bottom but austerity measures, rising unemployment and tight credit conditions will keep the economy in
a profound recession this year. Some panelists expect that the economy will drop 3.2% in 2016, which is
unchanged from last month's projection. Next year, GDP is expected to grow to rebound to a 1.0%
expansion.
Population (million)
GDP per capita (USD)
GDP (USD bn)
Economic Growth (GDP, annual variation in %)
Domestic Demand (annual variation in %)
Consumption (annual variation in %)
Investment (annual variation in %)
Industrial Production (annual variation in %)
Retail Sales (annual variation in %)
Unemployment Rate
Fiscal Balance (% of GDP)
Public Debt (% of GDP)
Money (annual variation in %)
Inflation Rate (CPI, annual variation in %, eop)
Inflation Rate (CPI, annual variation in %)
Inflation (PPI, annual variation in %)
Policy Interest Rate (%)
Stock Market (annual variation in %)
Exchange Rate (vs USD)
Exchange Rate (vs USD, aop)
Current Account (% of GDP)
Current Account Balance (USD bn)
Trade Balance (USD billion)
Exports (USD billion)
Imports (USD billion)
Exports (annual variation in %)
Imports (annual variation in %)
International Reserves (USD)
External Debt (% of GDP)
Sports Consumer:

2011
197
13,237
2,613
3.9
4.7
4.7
6.7
0.4
6.7
8
-2.5
35.1
18.7
6.5
6.6
4.1
11
-18.1
1.86
1.67
-2.9
-77
29.8
256
226
26.8
24.5
352
11.4

2012
199
12,342
2,459
1.9
2.1
3.5
0.8
-2.3
8.4
7.4
-2.3
32.9
9.1
5.8
5.4
9.1
7.25
7.4
2.05
1.95
-3
-74.2
19.4
243
223
-5.3
-1.4
373
12.7

2013
201
12,244
2,461
3
3.8
3.5
5.8
2.1
4.3
7.1
-3
31.2
10.9
5.9
6.2
5.1
10
-15.5
2.36
2.16
-3
-74.8
2.3
242
240
-0.2
7.4
359
12.5

2014
203
11,915
2,416
0.1
-0.9
1.3
-4.5
-3
2.2
6.8
-6.1
33.7
9.9
6.4
6.3
2.2
11.75
-2.9
2.66
2.35
-4.3
-104.2
-4
225
229
-7
-4.4
364
14.6

2015
204
8,651
1,769
-3.8
-6.8
-4
-14.1
-8.3
-4.3
8.5
-10.4
38.5
6.2
10.7
9
11.3
14.25
-13.3
3.96
3.34
-3.3
-58.9
19.7
191
171
-15.1
-25.2
356
19.1

72% of Brazils population is in-between 12-64 have an interest in sport. 64% of watches sports on TV.
38% do physical activity (48% males, 31% females). Walking is the preferred form of exercise (41% walk
every day). Weight training increased 50% from 2006 to 2013. Football is the most popular sport, 30.4
million people play. Second most popular sport is volleyball. Approximately 15.3 people play volleyball.
Table Tennis, swimming and indoor futsal are other popular sports in Brazil. Expenditure on average is
714$ per year per person on gyms, clothing, apparel.
Consumers in Brazil are most likely to report planning a purchase of brand name sports shoes or
sportswear in the next 12 months. In Brazil, 62 percent of respondents in the lowest income bracket of
those earning less than the equivalent of $1,000 (US$, PPP) per month plan to buy brand name sports

shoes or wear. This percentage is considerably higher than the corresponding percentages of planned
purchases of brand name sportswear for many countries regardless of income level. For example, in
China and India, the share of consumers planning to buy brand name sports shoes or wear in the next 12
months tops out at 47 percent and 49 percent, respectively, for the highest income level of those earning
more than the equivalent of $2,000 (US$, PPP) per month.
Football (soccer) is so imbedded in popular culture that boys start playing soccer at an early age. Men
love watching the games and wear their favorite sports club shirts. Local teams have their own clubs and
fan clubs, with devoted followers. For instance, Flamengo, a Rio-based team, has the largest fan club with
more than 35 million fans, followed by Corinthians, based in Sao Paulo, with 27 million fans and Sao
Paulo Club with 14 million fans. It is estimated that the country has more than 150 million soccer fans.
Most of the national teams are sponsored by corporations. Flamengo and Corinthians are sponsored by
national bank Caixa. On the other hand, Brazils national football team, which plays during World Cups
or Regional Cups, has the same devoted fan group, and is sponsored by Ultrafarma, a giant in the
pharmaceutical industry. Brazil has won five World Cups and its national players are considered amongst
the best in the world.
Sports Market:

Nike remained the leading company in sportswear in Brazil, holding an 11% value share in 2015.
However, the company registered weak current value growth of 1%, reaching R$2.9 billion in sales. This
was its weakest growth period for the last five years, and the reason for that could be the weak
performance of the economy and a devaluation of Brazilian currency.
Over the forecast period, sportswear is expected to see slower growth than it did over the review period,
with a CAGR of 1% at constant 2015 prices, compared to the CAGR of 3% for the review period of
2010-2015 in constant prices. The worsening of the macro-economic scenario is the main culprit for this
performance, but it is expected that by 2017-2018 the economy will start showing some signs of recovery.
Brazil apparel and footwear market, which is hugely driven by textile consumption, personal disposable
income, cotton consumption and Brazil population. The interlinked designing methods and fashion trends
in the country have been steadily dissolving the difference between sports apparel, fitness wear, casual
and active wear, which has changed the buying behavior of the target audience. Versatility, fashion, style
and comfort have created a high demand for apparel and footwear which provide better performance and
strong appeal in terms of style and looks.
The retail landscape of apparel and footwear space in Brazil has been majorly occupied by global apparel
and footwear players which include Nike, Adidas, Geox and Puma. The major channel of distribution for
apparels and footwear has been brick and mortar stores. Some major native players also have a strong
presence in the market. These include Alpargatas, Vulcabras, Grupo Dass and others. Additionally, in the
recent years, online portals have become an important channel of sales for apparels and footwear. Online
portals have gained popularity, especially among the youth on account of considerable exposure to
technology and the internet.

Market
In emerging markets such as Brazil, the spending power of consumers is rapidly changing the retail
industry. As consumers are having greater disposable income per capita, they increasingly spend their
money on items beyond the basic necessities. One of the top segment that would feel the change is
clothing and footwear, this enhances markets retail volume in total. Consumers still seek look and feel

adventure when buying a physical product, but more and more buyers are gearing towards online
shopping and is increasing at a faster pace. Coz it allows them to choose from a wide range of products
and brands to fulfill their needs, especially millennials or ibrains. They tend to rely on trust-worthy
product reviews which facilitates them with well-informed buying process especially regarding priceperformance rations and product quality. Majority of them have strong brand preferences and hence
purchase their desired products manufactured by their favorite brand.
Brazils consumers are extremely fond of shopping for clothes and they buy them for going out with
friends and family. Brazils mass-market clothing shoppers seem particularly conscious of fashion and
majority of the consumers have a strong preference for local fashions, so fashion trends are heavily
shaped by local celebrities (Sports & Entertainment) due to which social influencers play a big role,
fashion blogs or social media platforms such as Instagram reach huge audience. Consumers highly regard
local brands sold by local retailers and perceive that local brands have better product quality in
comparison to foreign brands. Some of the multi-national brands have had success when they have
established local identities, such as running campaigns featuring Brazilian supermodels. Consumers are
far more open to using credit and they think that it is perfectly all right to shop for products on credit.
Women not only buy for themselves but also play an important role in buying for their children and
husbands.
The total Brazilian Athleisure market comprises of total revenue generated through sale of all types of
mens, womens, children sports clothing and sports/fashion footwear. Revenue in this Athleisure segment
amounts to US$6,947.2m in 2015, with compound annual growth rate (CAGR) of 6.3% between 2011
and 2015. The market did contract by 3% in 2015 after a period of robust growth, but it's expected to
recover and relish a proportionate strong growth moving forward. Revenue is expected to show an annual
growth rate (CAGR 2016-2020) of 6.1 % resulting in a market volume of US$9,335m in 2020. The
Brazilian Athleisure market is large, growing, and mostly untapped by multinational competitors.

Clothing, Footwear & Accessories Specialists dominate Brazils mass market, ringing more than 70%
share of the total market value followed by Department Stores (7.8%), Hypermarkets (7.6%), OnlineRetail (4.8%) and others (3.1%). Clothing, Footwear & Accessories Specialists retailers in Brazil use
attractive credit offerings, such as installment payments, to entice customers. They typically offer cards
with low initial spending limits that increase as consumers prove their creditworthiness. Small-time

retailers who cant afford to offer credit cards often allow shoppers to pay for purchases in installments,
with postdated checks.

Target Market:
When launching Finish line in Brazil, it is important to target a specific consumer group to gain a
foothold within the country. As the CAGR of 6.1% for next 5-years looks promising for Finish line,
however their first goal must be to penetrate the market with targeting specific group of consumers and
take it from there. Our primary target market would be women with fashion sense, coz womens
Athleisure is the largest segment of the Athleisure market in Brazil, accounting to 50.6% of total markets
value followed by mens (28%) and Childrens (21.4%). Also as mentioned previously, Women not only
buy for themselves but also influence in buying of Athleisure for their children and husbands. If we can
penetrate and able to capture significant share in womens market, then it would be easy for Finish line to
tap into other markets.

The positioning Finish Line will take will be a premium fashion footwear company, primarily geared
towards the womens market. According to market research, womens footwear in Brazil controls 50% of
all footwear sales, with a skew towards fashion. This strategy will allow Finish Line to continue on its
current strategy to get more women into stores. They will have to lean on a heavier fashion trend that
Brazil is currently experiencing as well as trying to get the a more localized celebrity. Instead of leaning
so heavily on Hip-Hop artists and Basketball players the Brazilian market will likely respond more

appropriately to the soccer stars in Brazil. The urban adaptation that Finish Line currently employs in the
United States is something that will resonate well with the Brazilian market as they themselves are seeing
The product strategy Finish Line will need to employ in Brazil will have to be adapted from Finish Lines
current offerings in the United States as they are roughly 55% mens footwear dollars, another adaption
will be that they will need to keep more SKUs of a lower shoe size as the Brazil market is generally a full
size smaller in both Mens and Womens shoes. Since Finish Line has only 1 other international market in
Puerto Rico, in which they did not do much market research in the area and just sold what they are selling
currently in the United States there is not much adaptation required between other countries and the
Brazilian market. In terms of packaging, since Finish Line is a retailer and not a manufacturer they will
not be able to change much in terms of package design. This is controlled by manufacturers with little to
no input from retailers and wholesalers. The Brazilian market already has footwear retailers in the area so
the company will not be seen as very innovative on a product front. Having a more balanced approach to
the Footwear Finish Line sells in Brazil regarding its vendors will also be something they need to watch.
In 2015 Nike was 11% of the Brazilian market in Footwear sales, while in the United States it is roughly
40% of the market share according to research conducted by NPD.
There are a large number of competitors in the Brazilian market which leads to an intense battle to gain
customers on price. Our pricing strategy will still be to come in at a higher price, because of our premium
product selection, then have our loyalty program help lower costs of products. Currently Finish Line has a
Loyalty program that gives $20 off coupons when a customer spends more than $200 a year. This level is
very easy to attain as the majority of shoes offered are very near or even over the $200 threshold. Since
we will be a smaller operation and are going after a fashionable Womens clientele we will be entering the
niche market in Brazil and we will be able to compete with some of the larger chains on price as our
customers will be looking for those shoes vs looking for the best bargain. A major hindrance on price
competition in Brazil would be that Finish Line does not set much of their price, often being told by
manufacturers what price they need to be set at when they are first sold, and then they can markdown
accordingly to be able to sell the shoes. This price may be set lower since a large portion of shoes are
manufactured in Brazil or in closer areas than they are to the United States which Manufacturers have to
realize shipping and transportation costs vs the retailer.

Plenty Space for Market Growing

In Brazil, the imported products most purchased online are clothes, shoes and accessories, followed
by cosmetics and beauty items. Jewelry and watches came in third, with electronics ranked in the last
position.
Finish line will be distributing the new women athletic shoe line inclusive of multiple brands in Brazil
through two major channels:

By selling the products to wholesalers in the Brazil market.

o As Finish line will be new to the Brazilian shoe market, by having the new stores in
shopping malls will give Finish line a jump start and target customers will become
familiar to the store and the ambience with multiple line of brands to choose from.
By direct-to-customer inclusive of the inline and the retail outlets and the e-commerce sales via
the finish line website. It will help Finish line to
o Brand the product to target audience and instore experience and best innovative products
and design lines for women.

o
o

Online sales through its online portal which will minimize the supply chain and inventory
costs in store while maximizing the revenue and providing better in-class services to the
customers.
Direct-to-customer, inline and retail factory outlets, will help Finish line to build up
customer trust in big cities which can, over time be expanded to small towns too.
Direct-to-customer will also provide Finish Line with higher margins than do sales to the
wholesalers.

Communication:
To describe the main methods of communicating in society, Brazilians focus primarily on radio,
television, phone, and internet. In 1999, Brazil had 1,822 AM radio stations with 407 radio receivers per
1000 of population. In 1997, there were 138 television stations recorded in Brazil. Also, in July 2015
there were 43.67 million main phone lines and 257.814 million mobile cellular phones in use by
Brazilian consumers (CIA World Factbook, Brazil). In 2015, Brazil had 120.67 million Internet users
and in 2015 there were 26.57 million Internet hosts (CIA World Factbook). Even more interesting, the
number of Brazilians using the internet is growing exponentially every year which implies internet is
continuing to be a strong global medium effective in communicating a brands message.

Market
Segmentation
segmentation
consumers
groups
to
create
to
target:
segmented
an
Nike
Age
and
gender
has
such
group
that
is
it
female
that
has
age
range
of
15-55.
behavioral
Nike
segmentation:
has
this
that
why
to
answer
products
and
what
the
and
purchasing
have
habits.
interest
So
segments
its
market
which
includes:
oriented
lifestyle(interest
fitness
and
exercise
for
in
recreation)
segmentation:
basis
of
this,
On
has
target
to
serve
its
world.
It
has
major
markets
pacific
Europe,
in
USA,
Africa
Asiabut
it
has
cater
countries
markets
as
well
in
other
like
North-America,
China,
etc.
(Nike
Inc,
2016
(Segmentation,
Targeting
Positioning)
and
Communication Mix
Market Segmentation

It has following segmentation to create consumers groups to target:

Demographics segmentation: Finish Line will segmented the Brazilian targeted customer for the
age, and gender group as it has such products that serve male and especially female that has age range of
15-55.

Psychographics and behavioral segmentation:

Finish Line will have this segmentation to

answer that why consumers need its products and what the consumers have interest and purchasing
habits. So regarding this Finish Line will segments its market which includes women who are:
Sports or athletic oriented
Active lifestyle (interest in fitness and exercise for recreation)

Geographic segmentation: On the basis of this, Finish Line will do segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa but it has
continuous objective to cater markets in other countries as well like North-America, China, Japan, and
Middle-East etc.

Targeting:

As for market segmentation, Finish Line will have a niche market to serve that is Finish
Line will focuses and targets women athlete or sportsperson and women inclining towards a healthy
lifestyle segment and provides required products to them as footwear and apparel products, which have
quite specific and unique feature as compared to other footwear products.
Following are the some of the proposed target strategies of Finish Line:
Its target strategies include aggressive internet and social media marketing to make aware its target
consumers about the mix of the product line available with Finish Line and even make its target

consumers enable to get their desired products through a variety of shoes available from multiple vendors.
Apart from this, its targeting strategies include sponsorship of its products line availability through sports
team or celebrities to make targeted audience available of the brands available with the brand under one
roof. It has objective of styling its product through psychological tactics on target market by linking
triumph with apparel that is products are viewed as victory when sponsorship is done by athlete
celebrities.

Market Positioning: Finish Line will position itself in the mind of its target customers as a leader to
provide the sports goods and the footwear from multiple brands under one roof for the convenience of the
targeted customers. It will provide such a variety of products that satisfy its niche market with all
products related to sports. Its slogan Deliver the Epic Finish will made an appeal to the target customers
to buy the product which suits the needs while providing multiple options to the customer.

Strategy Summary
Its main focus is to gain leading role as a chain providing and cratering the needs of women in athletic
market and increase its market share to provide quality and variety of products for target consumers It has
following strategies in terms of following factors:

Pricing strategy: Finish Line will provide its targeted audience major athletic shoe brands and related
accessories while keeping a premium price that customer value so it has high prices for its products as it
has niche market to serve with valuable products.

Market expansion strategy:

Finish Line will expand its distribution channels all over the Brazil
while utilizing the learnings from the US market and avoiding the common pitfalls seen by the brand in
the recent years and through constant improvement in its supply chain.

Challenges ahead:
Brazilian Consumers proactively search for savings:
Consumers in Brazil are changing their buying behaviors in a variety of ways. Almost three out of every
four respondents in Brazil agreed that theyre increasingly looking for ways to save money (Exhibit 2).
More than half said they are paying more attention to prices, actively looking for sales and promotions or
delaying purchases. Many are also shopping at multiple stores to find the best deals or waiting for
products to go on sale. In addition, Brazilian consumers are making thriftier food choices, with 42 percent
saying they chose to eat at home more in the past year.
Some remain brand loyalbut only if the price is right
More than one-third of Brazilians claimed they havent abandoned their preferred brands but are shopping
around to find retailers that sell these brands at lower prices; 19 percent are purchasing in smaller
quantities; and 14 percent are waiting until the brands are on sale or buying only with discount coupons
(Exhibit 3)

Once they trade down, they might not go back.

Twenty-one percent of Brazilian consumers (versus 12 percent globally) said they traded down to less
expensive brands. This number varied considerably by category; laundry supplies, household-cleaning
products, and bottled water had the highest trade-down rates.
Only 18 percent of consumers who traded down opted for private-label products. By contrast, in Latin
America as a whole, 26 percent of down-traders chose private-label products; in more mature markets
such as the United Kingdom and the United States, the figures were above 60 percent. Indeed, privatelabel or store brands in Brazil, although growing, still account for only a small fraction of total retail sales
(5.1 percent, equivalent to approximately $970 million, according to data from Nielsen).
Among Brazilian down-traders, 60 percent said they dont intend to go back to the more expensive brand
(Exhibit 4). Its worth noting that US and European consumers who traded down during the global
financial crisis have only recently begun to trade up again. If Brazil follows the same pattern, downtraders in Brazil will be trading down for at least the next few years.
There are splurges in select categories.
Even as most Brazilians sought to save money, some opted to trade up in certain categories. Although
Brazils trade-up rate of 5 percent is much lower than the global average of 11 percent, its still
meaningful in the handful of categories that clearly matter to consumersin particular, alcoholic
beverages and personal products. For example, 15 percent of consumers indicated they traded up in beer,
11 percent in wine, 10 percent in spirits, and 9 percent in athletic footwear.
Brazilian Consumers shop across channels.
Brazilian consumers are shifting some of their spending to discount chains and the cash-and-carry format
known locally as atacarejo, which combines both retail and wholesale. This trend isnt unique to Brazil:
in more mature markets, such as the United Kingdom, consumers have already shifted much of their
spending to discounters and are beginning to make distinctions between discount and premium
discount. However, one channel that has made huge strides in some developed marketsthe online
channelisnt yet a factor in Brazils grocery categories.
In light of these new consumer behaviors observed in Brazil it will be wise of the Finish Line to act on the
following imperatives mentioned below:
1. At every price point, think value for money: With many of the targeted consumers seeking the
savings opportunities, Finish Line can provide targeted consumers a solid reason, by providing a
wide variety of in-store collection of women athletic shoes while at the same time providing deep
discounts, by having competing price compared to the competitors, and providing world class
consumer service by leaning on the solid supply chain background learning from the US market.
Also, Finish line need to provide the emotional attributes to the consumers by advertising the
time saved by the consumers having different products under one roof.
2. Investing in advance revenue growth management capabilities by arriving at the decisions,
promotions, and deep discounts driven by the data. It will help to answer the challenges from the
evolutionary Brazilian consumer mind set as social media and internet is a huge mean of
communication and advertisement in Brazil: Which promotions are most effective and why? How
should prices and promotions be communicated?
3. To survive and thrive in the challenging Brazils economic environment, Finish Line will need a
data driven approach to identify the pockets of growth inclusive of supply chain & ware house
location and optimization.

4. During the downturns, based on past trends, Brazilian consumers tend to gravitate to either high
end or low end brands. In this case Finish line should have a clear and complete price band
offering both the high end shoes and the compelling low prices offering aimed at the mass
consumers.
5. Brazilian consumer is on a hurry, so to make and keep a brand loyalty, Finish Line will have to
use the learnings form the US market to create shortcuts and speeding up the delivery of the
products / new products and anticipate the customer needs.
6. Brazilian consumer are ranked #1 in the world for average hours spent on social media, by being
active on social media and providing deep discounts and speedy shipment of the products
purchased online will be the key. Finish Line will take this opportunity of dual branding by
helping targeted audience to show their social status on social platforms and to enhance this
marketing strategy with traditional media, TV/Radio, advertisement.
7. Brazilian consumers do care about the brands that take care of their cities with the safety
measures especially after the riots of the last soccer world cup. Finish Line can invest more on
city safety measures, cleaning and visuals than the brick & mortar stores to help consumers make
aware of their presence and get consumers pay the premium price.

Exhibit 2

Exhibit 3

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