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Brazil

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The varying population of Brazil makes it a prime spot for introducing products. In order to understand marketing aspects we first need to look at the background of the country in order what needs we could meet with our product. Brazil was “discovered” in 1500 with Portuguese awarded the territory in accordance with the agreement of Tordesillas. It was named after a red wood, pau-brasil, which a deep red dye was made out of. In the early days of Brazil sugar plantations drove the economy in the northern part of the country. This lasted for about 150 years until gold was found in the inland southern part of the colony in an area called Minas Gerias in around 1690. This is important because it begins to shift the wealth of the country from the north to the south. Diamonds and other minerals were found. This caused a switch in the main entry port to Rio de Janeiro. In the early 1800’s Napoleon’s army chased the royal family of Portugal out where they fled to their colony of Brazil landing in Rio. As soon as they landed they began to build more modern type infrastructures for Brazil such as banks, universities, mints and museums. The opening and expanding of these ports allowed for better trade with other European nations. When Napoleon fell it allowed Dom Joao VI to return to Portugal and leave his son in charge. During this time Brazil earned status that equal of Portugal. Slave labor was heavily used in Brazil until it was ended in 1888. Landowners were unhappy with this decision leading to the overturn of the government and turning to a more military style rule. Brazil experienced a population expansion from Europeans in the 1900’s due to world wars and other unrest in Europe (www.geographia.com). The brand that I would like to develop in Brazil is called Quivver. Basically, what the product is a pouch that you wear across your body. It has a comfortable strap that makes whatever that is in the pouch conform to your body. This is useful for people that live an active lifestyle, or want to be able to roam around with the restriction of carrying or keeping up with multiple products in different locations on your body. This product would be very useful to people along the coast or in the more sparsely populated jungle regions. As people tend to do they settled in the coastal regions. Modern day Brazil has a total population of 202,656,788 as of July 2014 with the majority living within 150 miles of the coast and 84% of the country living in urban areas. Right away this should tell us valuable information about marketing. Sao Paulo and Rio alone have a population of almost 20 million. That is roughly 10% of the entire population in two cities, but roughly 40% of the population living in these surrounding states (cia.gov). This would seem like the prime spot to start a marketing campaign. There are many sports and activities around the coast for leisure, which would fit the Quivver perfectly. Roughly 60% of the population is between the ages of 15 and 64. These are the active years of life, which is important to the product as well. Another important fact about the population is that Brazil has roughly 90 million Internet users and 90% of those users use social media (emarketer). Because of the capabilities of social media we will be able to find our target audience more easily. The geographical make up in Brazil is important as well. Brazil has 4,500 miles of coastline along the Atlantic Ocean and borders every country in South American except Chile and Ecuador. North Brazil is dominated by the Amazon River, which runs almost 4,250 miles, and dense jungles. The Quivver also fits the lifestyle of people living in this region because it would be important to be able to strap the pouch under your clothes and not worry about it catching on anything as you walk, or as crazy as it sounds no wildlife being able to snatch it. Southern Brazil at one time was covered in jungles but has since been more urbanized with the largest cities of Rio de Janeiro and Sao Paulo. Brazil is a democratic country. Anyone between the ages of 18 and 69 years old and are literate voting is compulsory. Ages 16, 17, and anyone over 69 can choose whether to vote or not. The government is divided into three sections executive, legislative, and judicial. Brazil has the world’s sixth largest economy and the4 second largest in the western hemisphere. Over the last couple years Brazil’s economy has slowed allowing the UK to overtake them. Politically, introduction of a product to a new country can be difficult. Exports into Brazil make up 9.9% of the GDP a low number compared to other countries and should be considered an inward economy (brasilglobalnet.gov.br). Economically speaking because Brazilians tend to purchase home made products, Quivver could possibly look into building a factory in Brazil in order to lower the overall cost of production allowing them to lower the price point of this product. This could be crucial because the poverty level in Brazil is high with 21% living below the poverty level. The top 10% of the country control 42% of the wealth (http://www.cia.gov). Brazilian customs are fairly relaxed and typically informal. They typically kept clean and are well dressed. They are direct in their actions and interrupting a conversation should not be taken as being rude. The business world customs change a little bit. It is not acceptable to wear jeans in a work-related environment. If you do not know the specifics of and individual you should refer to him/her as Mr./Ms.. You should have business cards written in both English and Portuguese. When introduced hand the card English side up, however when dealing with a local hand it English side down. Small talk is used at the beginning of a meeting and building trust is a must, as Brazilians tend to do business with those they trust. They are also not as confrontational so it is important to use a calm friendly approach and not rush them. Considering the product that I am promoting is fairly informal it works to my benefit that these are laid back people, however in the business world they would be able to see that there is a market for it. The last aspect that needs to be looked at in order to determine if this is a viable opportunity for this company is to look at the infrastructure of Brazil. It is important because we need to know how easily the product can be distributed. If we cannot spread the product it does not matter how many people may want it. Brazil has 4,093 airports ranking it tenth in the world. Airfreight can be expensive. Bulk freight on rail is cheaper and Brazil has 28,538 km of rail, roughly 17,773 miles. This ranks second in the world only to the United States (www.cia.gov). Due to these two facts and considering the massive coastline of Brazil, Quivver should not encounter much of an issue shipping its product around the country. With the population of Brazil alone it would seem as though there is a potential market for this product in Brazil. When we take a close look at all the factors, the biggest being where the population is centered, we see that not only is there a market but there is a need for the product and if we develop a plan to introduce it correctly this should be a successful launch for the Quivver brand in Brazil.

http://www.emarketer.com/Article/Brazils-Social-Audience-Keeps-Growing-New-Web-Users-Join/1010003

http://www.brasilglobalnet.gov.br/ARQUIVOS/Publicacoes/Manuais/PUBCEXBrasilI.pdf

www.cia.gov

http://www.geographia.com/brazil/brazihistory.htm

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