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Country Analysis

International Marketing

Academic Group 5: Anu | Ashish | Madeleine | Maitri | Shweta| Zehan


Pricing

 Mark-up (Cost-based) pricing  Know the real value and are


and competitor pricing is the price sensitive– Prefer
common strategy smaller SKUs at affordable
prices.
 Governed by COGS and
inflation rate  IT support companies
services in Skype calls display
 Average number of times average price allowing choice
that firms change prices is of price to customer
3.6 per year*
 Introduce value-added
 Economic recession and services like installation,
hyperinflation of 80s and repair to maintain margins
90s, lived in decades of
price fluctuations

* https://www.bcb.gov.br/pec/wps/ingl/wps422.pdf
Distribution
 Distribution like India  Speedy deliveries and tailored
solutions expected
 Agents, distributors, import
houses, trading companies,
subsidiaries, and branches
of foreign firms all exist
Need for multiple  High import and storage
registrations, 60% duty and costs discourage inventory.
value limits on goods through Creation of Bonded
Simplified Customs Clearance Warehouses has helped
for express deliveries – Need  12% projected growth of e-
for localization of production commerce, 4th largest
in Brazil internet users, 57%
internet penetration in
2016 suggest opportunities
in e-commerce
Success Story –
McDonald’s
• Entered Brazil with a single restaurant in Rio de
Janeiro in 1979 through a JV

• Created a Master Franchise with Arcos Dorados


Holdings Ltd.

• Expanded to 150 restaurants across Brazil

Key Success Factors:

 Open Culture in Brazil


 Creative Marketing Strategies
 Selection of local partner
Success Story –
McDonald’s
Identified the right Product Adaptation Piggybacked on the
target Segment to local tastes popularity of Football

Football – an integral part of the


• Growing middle class - Fruits & juices – culture of Brazil
54% of the population throughout the
day
• Entered through Urban Sponsored
centers - Rio & Sao Paulo 2014 World
Healthy Cup
• Expanded into cities with options -
population > 80,000 Fresh local
ingredients
• Attracted youth through
Pão de queijo - Launched the
social media campaigns
Cheese bread Brazil burger
only available in
Brazil
Recent Market Entry

 Didi Chuxing : Chinese player  New Mobility Solutions:


 E-hailing, Bike –Sharing ->
 99: Brazilian start-up Integrated Mobility

 Urban development and unevenly  Entry Strategy:


developed public transportation  Initial 10% stake buy-out
system  Sent engineers and
technicians to perfect the
 Global rivalry with Uber Brazilian product
 Bought out Uber’s Chinese
shares in 2016
 Mexico entry next in line
Thank you!

Academic Group 5: Anu | Ashish | Madeleine | Maitri | Shweta| Zehan


References

 https://www.linkedin.com/pulse/new-re
alities-brazil-5-marketing-strategies-adri
ano-caccamo/

 https://www.export.gov/article?id=Brazi
l-Distribution-and-Sales-Channels

 https://www.bcb.gov.br/pec/wps/ingl/w
ps422.pdf