TO: Daniel Servitje, CEO of Grupo Bimbo

FROM:
DATE: June 2020
RE: Bimbo should research about the markets they will enter in order to
succeed because customer behaviours and trends are always
different.
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1. How do you propose to face the challenges of Bimbo in Brazil? Be specific in the

actions to take and the problems that would be solved with each action.

In Brazil, Bimbo faced different challenges such as entering a market where bread

consumption is much lower than in Mexico. Artisanal bread was preferred by Latin

American consumers because of the tradition brought by European immigrants. The types

of products preferred by consumers in Brazil differed quite a lot in comparison with

products in Mexico, so the company should understand that different cultures have

different needs and wants. Also, Bimbo targeted small shops in Brazil to sell its products,

but 70% of sales actually occurred in hypermarkets. This can be solved by making a new

distribution strategy adapted to larger retailers instead of small shops. The language

barrier was also a problem because the product names were nor meaningful in Brazil, so

Bimbo should once again adapt to the culture, language and consumer trends of Brazil in

order to succeed. Before entering a market, there should be previous research about the

differences in the country and possibilities to adapt their brand.

2. How do you propose to face the challenges of Bimbo in the United States? Be

specific in the actions to take and the problems that would be solved with each

action.

Bimo faces different challenges in the United States such as the high levels of demand

from the stores to maintain their shelves full, even with products that don’t have a very

high demand. Also, the Hispanic/Mexican market in the United States was not being fully
exploited as well as it should have been. The way that unionized truck drivers performed

their jobs was not as effective because they had too limited power, which also brought

challenges to Bimbo in the U.S. In order to face these challenges, the company needs to

understand that not all “Mexican-American” people were born in Mexico, so their contact

with this brand has been minimum. Taking this into account, Bimbo should understand

the cultural differences between Mexico and the U.S in order to attract a larger public

towards its products and its brand. Better targeted products should be offered, taking into

account the low-carb diet trends. In order to face the problems with the truck drivers,

Bimbo should increase the communication with the drivers, listening to their demands

and therefore increasing their corporate social responsibility.

3. Should Bimbo go to China? Why or why not? If Bimbo decides to continue its

expansion in China, what would you change about the strategy in that country?

Bimbo should go to China and take advantage of a very large and important market,

which would allow them to grow quite a lot. But it should learn from previous mistakes

in order to target the correct audience and offer the correct products. Market research is

important in order to have a competitive position. Also, Bimbo could acquire a strong

Chinese company in order to have a big market share. This could also help to understand

market trends and consumer demands in the market. Bimbo could improve its technology

in order to constantly improve and properly adapt to the new market. Also, they should

target hypermarket chains to sell their products and gain major visibility from customers.