Presentation Brazil Marketing
- 2. BrasilCountry Area: 8.511.965 sq Km
- 3. Brazil – Key FactsCountry Name: Federative Republic of BrazilCapital City: BrasiliaGovernment Type: Federal RepublicPresident: Luiz Inacio Lula Da SilvaPopulation: 190.01 millionLanguages: PortugueseStates: 27 units of the Federation and 1 federal district which contains the capital city (Brasilia)Currency: Real (equivalent to 0.582 US$)Life Expectancy: 72 (total population) 68.4 (men)/ 75.7 (woman)ReligionEthnic CompositionPredominantly white and mulatoPredominantly Catholic
- 4. Brazil – Territorial DivisionDivided in 5 different regions(by the Brazilian Institute of Geography and Statistics)North RegionNortheast RegionCentral-West RegionSoutheast RegionSouth Region
- 5. Brazil – Territorial DivisionThe North Region 45.27% of the Brazil land area.
- 6. Lowest number of inhabitants.
- 7. Mainly unindustrialized and undeveloped.
- 8. 2% of GDP.
- 9. Key city to region development and trade– Manaus ( Zona Franca).
- 10. Most of the Amazon Rainforest and indigenous tribes (2% of population).
- 11. Main industry: lumber, mining (iron, aluminum and gold), agriculture, oil and gas and ecotourism.7 statesAmazonZona FrancaAmazonas river
- 12. Brazil – Territorial DivisionThe Northeast Region30% of Brazil’s population.
- 13. It’s the poorest region of Brazil (12% of GDP).
- 14. Main cities: Salvador, Recife and Fortaleza.
- 15. Economy : sugar, cocoa and cotton and tourism.
- 16. Semi-arid climate: Suffers from long droughts.
- 17. Major industries: tourism, agriculture (sugar cane and cotton) and extensive cattle breeding.9 states Sertão NordestinoPorto de Galinhas - PernanbucoSalvador
- 18. Brazil – Territorial DivisionThe Central-West RegionLow demographic population (just 6.4%).
- 19. Pantanal- world’s largest wetland area.
- 20. Cerrado (the world largest savanna).
- 21. Host of the capital city (Brasilia).
- 22. Contributes with 8% of the GDP.
- 23. Political business and tourism are very important for the region
- 24. Key industries: cattle breeding, mining, lumber, agriculture for subsistence .4 statesCerrado SavannaThe PantanalBrasilia
- 25. Brazil – Territorial DivisionThe South-East Region38% of the population.
- 26. 58.5% of total GDP.
- 27. Economy: mining, manufacturing (machinery, electronics, automobile and aviation), energy production, coffee, sugar, tourism, petroleum, textiles, etc.
- 28. Business economic centers of Brazil : largest cities and companies - Sao Paulo and Rio de Janeiro.4 statesRio de JaneiroSao PauloIndustrial Parks
- 29. Brazil – Territorial Division3 statesThe South RegionWealthiest region by GDP per Capita : highest standard of living in Brazil.
- 30. 12.5% of Brazil’s population.
- 31. 16.5% of the GDP
- 32. Main industries: machinery and automobile, textiles, tourism, energy.
- 33. Settled mainly by European immigrants
- 34. It’s the coldest region of Brazil
- 35. Host of Curitiba – benchmark of urban planning PomerodeCuritibaPorto Alegre
- 36. Gross Domestic Product10th Economy in the worldBrasil GDP – Billions of US dollarsSource: International Monetary FundBrasil Growth Rate5.9%Brazil economy has not been badly affected… Strong Trade Balance (Exports higher than Imports)
- 37. The country’s growth rate increased in 2008 to reach 5.9%
- 38. Modern financial system GDP by sectorBrasil GDP by Sector Brazil is leader in agribusiness, but not very significant in terms of GDP
- 39. Services comprise 66% of the GDP, followed by industry and agriculture.
- 40. Tourism, IT and banking are the chief sub-sectors of services.
- 41. The industry sector includes motor vehicles, industrial equipments, chemicals and aircrafts. Most of these industries are clustered in the south-eastern region of the country and employs the maximum workforce in the region. Source: Datamonitor
- 42. Brazil – Trade BalanceBrasil – Trade Balance by yearSource: Brazil Foreign Office (http://www.braziltradenet.gov.br/) Brazil's exports amounted to around $197.9 billion (+23% compared to 2007)
- 43. The imports reached $172.9 billion in 2008 (+43% compared to 2007)
- 44. The country earned a trade surplus of $24.9 billion in 2008 (-38% compared to 2007)
- 45. Mercosul - Brazil, Argentina, Uruguay and Paraguay (Total GDP US$ 1 trillion )Brazil – ImportsBrasil Imports - Importance by countrySource: Brazil Foreign Office (http://www.braziltradenet.gov.br/) Brasil Imports – Main CategoriesSource: Brazil Foreign Office
- 46. Brazil – ExportsBrasil Exports - Importance by countrySource: Brazil Foreign Office (http://www.braziltradenet.gov.br/) Brasil Exports – Main CategoriesSource: Brazil Foreign Office
- 47. Brazil : Leader in AgricultureSource: Secex
- 48. Brazil – Foreign Direct InvestmentsFDI inflows (2001-2008) FDI inflows into Brazil increased from around $35 billion in 2007 to $45 billion in 2008
- 49. Consistent growth from 2005 in terms of attracting FDISao Paulo Stock Exchange Bovespa indexMarket CapitalizationMarket cap increased $710 billion in 2006 to $1,369.7 billion in 2007
- 50. Brazilian economy affected in 2008, but fully recovered.
- 51. Major factors: diversification of trade partners, development of internal market, economic stability, sustainable energy matrix and recent discovery of crude oil.Brazilian Diverse Culture
- 52. Brasil - A Country of ContrastsOpposite HDI in different regions –HDI of Norway and HDI of Africa.
- 53. Country of contracts: One of the highest Gini coefficient. “ Rich spends in three days what the poor spends in a year”
- 54. 30% of population with 72% of total disposable income. 5% with less than $1.25/dayNORTHPOP – 8,1%PP – 5,4%NORTHEASTPOP – 27,6%PP – 18%MID-WESTPOP – 7,1%PP – 6,6%SOUTHEASTPOP – 42,6%PP – 51,6%SOUTHPOP – 14,6%PP – 18,4%POP=PopulationPP=Purchasing PowerGlobo presentation to MBAs
- 55. Positive consumer behaviourEasier availability of credit Lower Risk Brazil Middle class appetite for consumption
- 56. “ Buy now, pay later!”
- 57. Government incentives Young nation and noveaux richesUnseen ways of living and buying among youngsters
- 58. New Rich with economic growth trends - 10% of households income raised 124% since 2002
- 59. Demand for luxury cars, beverages and designed closingPull to the urban centersSão Paulo: 18 MRio de Janeiro: 11M Belo Horizonte: 3 M
- 60. Demand for TechnologyInternet and broadband users Brazil = 5th in number of phones
- 61. 41.1 M fixed lines
- 62. 150.6 cell phones
- 63. Brazil = jump in credit cards use
- 64. Majority growth in poor areas
- 65. 75% of North/NE – income
- 66. SE – tourism, entertainment, clothingIn Brazil, Sport is religion
- 67. Brazil - leading TV marketChinaUSJapanBrazilGermanyFranceUKItalyMexicoSpainHouseholds with TV (million) – Major Countries source: Globo presentation to MBAs
- 68. Advertising Expenditure 2006 (US$ billion)Media landscape in BrazilMedia consumption
- 69. Globo – major Media Free Broadcast TVNewspaper PublisherPay TV ProgrammerRadio BroadcastingSound Recording & E-commerceMagazine PublisherFeature Films ProducerCable & Sat Pay TV SystemsInternet PortalNon-profit foundationGlobo presentation to MBAs
- 70. 75% of broadcast TV advertising market shareTV Globo’s LeadershipSignal reaches 99,4% of the Brazilian population5 owned stations - 116 affiliate stationsNetwork sales in 2007: US$ 4.5 bi59% prime time audience shareHome of the finest artistic and news talent The largest production center in Latin America (2,500 hours/year)Holds rights for the top sports events, films and TV showsExports programming to 130 countriesGlobo presentation to MBAs
- 71. MONDAYTUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY5:306:007:008:009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:0024:001:002:003:004:005:00MORNINGENTERTAINMENTNEWS AFTERNOONFILMSSPORTSOTHERS (Community, Educational,…)EVENINGLATE EVENINGGlobo Horizontal ProgrammingGlobo presentation to MBAs
- 73. Language unity, but cultural diversity
- 75. Colors are crucial
- 76. Humor
- 77. Sport iconsMarketing in two realitiesTargeting Mass: Casas Bahia Targeting Niche:Daslu100% emotional
- 78. High margins
- 79. International = cool , but proud to be brazilian
- 80. Ambiance is key
- 81. Service is very important
- 82. Blogs, links to tweeter and Facebook
- 83. Celebrity – models, important Brazilian icons
- 84. Benchmark – largest retail
- 85. Revenues = R$ 13,5 billion
- 87. Heavily on TV ( 33%)
- 88. Easy credit – “ carnets”
- 89. Buy now and pay a TV in 72 months!Bem-vindo a Volkswagen do Brasil
- 90. Brazil is the Volkswagen’s third largest market after China and Germany with 3 facilities able to produce 800.000 cars a year approximately(star-motoring, 2009).
- 91. Domestic car demand in Brazil is approximately 2 million a year growing at 5% approximately (BNet, 2009).
- 92. Volkswagen in Brazil's is the #1 carmaker, above U.S. rivals General Motors and Ford, with almost 30% of the market share (BNet, 2009).
- 93. Volkswagen is the automobile brand with the highest Recall in Brazil40% according to ABA(Associação Brasileira de Anunciantes, 2008)Gol is the automobile model with the highest Recall in Brazil.25% according to ABA(Associação Brasileira de Anunciantes, 2008)In Brazil, 70% of car buyers purchase subcompacts and compacts, and around 30% buy larger cars(B Krueger: Vice President of Volkswagen do Brasil, 2008)Volkswagen do BrasilKey Facts:
- 94. Volkswagen’s main products offer: Robust cars with raised suspension and powerful motors, specially designed for bumpy dirt roads, ubiquitous in Brazil.
- 95. Reduced vehicles designed to deal with the Brazil’s congested cities where streets are narrow and parking and garage space is limited
- 96. Automobiles able to run on gasoline, ethanol or a mixture of the two.
- 97. Accessories and electronics included inside to provide the best experienceProduct Launch in Brazil: 28 new products expected between 2009 y 2010 (Univision, 2009)
- 98. 3.5 billion to be invested in Volkswagen Brazil from 2009 until 2014 (Univision, 2009)Target Market in Brazil: Recognized for years as “the car of the people”, Volkswagen in Brazil is aiming up-market, to younger Brazil’s drivers with more disposable cash and a burning desire to occasionally leave city life behind (BNet, 2009).Volkswagen do Brasil
- 99. 1953: Volkswagen Fusca (Beetle)Results: 3.350.000 cars assembled in Brazil1970: Volkswagen BrasiliaChallenge: Recreate the Beetle but with a Brazilian flair (Brazil's president Rudolf Leiding) Results: - The total production of VW Brasilia reached over one million. - Successfully exported to many countries in South America, Portugal and Philippine.Chevette - Chevrolet1980: Volkswagen Gol ( futebol)Challenge: To build an all new front engined (cheap) vehicle to compete with the brand new Chevette from Chevrolet.Results: - Uninterruptedly the best-selling car in Brazil since 1987. - Over 5 million Gols have been produced since 1980. - 5 generations launched since 1980Gol G1 (80-94)Gol G2 (94-99)Gol G4 (05-08)Gol G5 (08 +)Gol G3 (99-05)VW Brazil: A history of constant adaptation…
- 100. Street MarketingBillboards:Objective: To communicate the new VW Polo comes with “parking sensors as standards” to avoid scratches and dentsPlace: In the parking lots of the biggest shopping centers in Brazil(1 min, 16 sec)http://www.publicidadymarketingweb.com/pageID_7032152.htmlVW: Advertising Activities in BrazilTV Commercials Intense participation in terms of TRP
- 101. Maximal expression of creativityNew Products:Gol 5th Generation (31 sec)(With Gisele Bundchen and Silvester Stalone)http://www.youtube.com/watch?v=F9TLqlYRofARegular Products: SpaceFox (1min, 02 sec)(puppy-fish)http://www.youtube.com/watch?v=FuwAtPSvwrA&feature=PlayList&p=769DFEF04CD1E30B&playnext=1&playnext_from=PL&index=3
- 102. VW: Advertising Activities in BrazilVolkswagen Run - 10KAnchieta – Espiritu Santo
- 103. VW: Advertising Activities in BrazilSuper Surf - CompetitionBahia, Ubatuba, Guaruja
- 104. VW: Advertising Activities in BrazilRally – Motor SportDakar, Dos Sertoes
- 105. VW: Advertising Activities in BrazilVolkswagen sponsors Brazil’s Soccer Team The company will use the Brazil team and logos in its advertising campaigns.
- 106. The team will travel on a Volkswagen coach.Flavio Padovan, Volkswagen Brazil's vice president commented:"There is great synergy between Volkswagen and the Brazil team. Just as with the Brazil national football team, the brand values are reliability, friendship, passion and closeness to the public."
- 107. Hope to see you at Rio Olympics 2016! Obrigada!http://www.youtube.com/watch?v=U3ciAv7wkJs
Editor's Notes
- #4: Sources – year?
- #6: Zona FrancaTax incentives to many Brazilian Industries - Manaus is the major city of this region
- #7: Bahia -” land of happiness” – culture/ dance/ festivities > 64% of pop is mulatos ( slang – coffee and milk)Foto sertao as well as the extensive cattle breedingVery tourism oriented > sometimes more expensive than going abroad
- #8: Contributes significantly towards the nation’s agricultural output (cattle breeding) ( 4 cattles for one person)This picture of brasilia is the senate and chamber of commons
- #9: The densest regionThe richest in terms of the total economic output It’s the business economic center of Brazil - Embraer (aviation) – competitor of Canadian Bombardier
- #10: Major immigrants are germans and italians.Curitiba- benchmark for transportIt’s the coldest region of Brazil with occasional frost.
- #13: Mercosul The Common Market of the South (Mercosul in Portuguese, Mercosur in Spanish) is an economic, political and social integration project created by Argentina, Brazil, Paraguay and Uruguay.In terms of economic integration the bloc already functions as a customs union, though in accordance with the Asunción Treaty of 1991 its ultimate objective is to become a common market.The four members of Mercosul have a total population of around 240 million and a combined GDP of more than one trillion dollars.
- #16: Even though Brazil is a leader in agribusiness and in the Doha round – which had an objective to decrease agriculture subsidies in rich countries and industrial subsidies in poor countries, this month unfortunately it was cancelled.
- #18: The market capitalization of BOVESPA increased from $710 billion in 2006 to $1,369.7 billion in 2007, registering an annual growth rate of 92%. However, the global economic downturn has lead to the market capitalization falling quite steeply, reaching $801.3 billion at the end of 2008, registering a drop of -41%. However, as seen the trend in 2009 the crisis is over.Industrias - empresas vale gerdau votorantim petrobras Reasons for growth Strong domestic market – increasing purchasing powerbillions of barrels of recently discovered light crudeEconomic stability Largest commodities exporter – not very impactec by crisisDifersified exporting partners
- #19: Osktoberfest Culinaria – sul Mate
- #20: Southeast region = biggest potential – 55% of household expenditure Extremely important to take in consideration culture and expensing differences in advertising in Brazil.Morumbi – chic Gini 55
- #22: 28% under 14 and underIn 2008, 27.3% is under 14 yrsIn 2020, 41.2% will be under 25 yrs
- #24: 1) Orkut – social network site by google - similar to facebook used in North America52% of Orkut users are in Brazil - 2007 33.5 Million2) Number of cell phones – 5th ( first China and USA)3) Internet:% crescimento internet 22% people blogging 37.1% internet retailing4) Cartoes de credito
- #26: High concentration of media: Rede Globo : 53% of the media market and 54% of hearingTV – Major source of information: 88% of Brazilians had a TV in 2001. Radio – Second major media – 88% listened to radio daily in 2001Internet: Growing, but not widely spreadTelemarketing – increasing phenomena for credit cards, banking and news papers Direct Mail – Supermarkets (similar to NA)Globo:Newspaper, radio, TV, sport channels, cable channels, Globo international.Vertical integration of channels – every knows that there is 8-830 reginal news, 8 30 – 9 national news and 9 -30 novelaControls the sport- Since it is the biggest media it controls when a certain match will take place – max audience Glbotransmissao do futebol – maisjogos ( pagamais ) controlaoshorarios – maioraudiencial – muitoesploradonamidia e Greater audience – national news to 11 pmMechanding in novelasDistribuicao de verba de propaganda no brasil > TV
- #28: High quality TV _ poor has access – paid by advertising
- #29: Source: IBOPE PNT – 2006Mon thru Sun– 6pm till midnightBrasil is our origin and our source of inspiration – one of Globos our principles
- #31: http://www.youtube.com/watch?v=02d2sw_l-xY Extremely important to take in consideration culture and expensing differences in advertising in Brazil Controle de prop de cerveja – horarios – abusive ( too sexual) – nao pode com bichos ( copia do superball)Humor Hyper explorado- todos falando de futebol – ojounal esportido futebol – coca cola, refrigerantem
- #32: Casas Bahia largest retail chain store in BrazilIn the last 10 years: 10 x furniture/ 7X appliances/3X TVIn 2008 R$ 13,5 bilhões. 500 storesQuantovendequantaslojascomodistribuicao:Casas Bahia possui 8 Centros de Distribuição (CD) responsáveis pelo abastecimento de todas as lojas da rede. Os CDs estão localizados em Jundiaí, Ribeirão Preto e São Bernardo do Campo (SP), Betim (MG), São José dos Pinhais (PR), Duque de Caxias (RJ), Campo Grande (MS) e Pirajá (BA).Com 300 mil m² de área construída, o CD de Jundiaí é o 2º maior do mundo. Os depósitos de Duque de Caxias (RJ), Ribeirão Preto (SP), Betim (MG), São Bernardo do Campo (SP), Campo Grande (MS), São José dos Pinhais (PR) e Pirajá (BA) possuem, respectivamente, 180 mil, 40 mil, 21 mil, 96 mil, 12 mil, 70 mil, 14,5 mil m², todos de área construída % marketing Tvem 60 mesesQuantovende?Renda media – parcela – 72 meses –Price – comercialprecocasasbahiaIconos > peculiar < empresas tem queadptarsuaculutra Pele -Lula- giselebunchen