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Team Brazil Smirnoff Vodka Kendra Goldman Joseph Kelley Jonathan Lynch Jennifer

International Marketing Campaign

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Our team was given the challenge to introduce a successful product to a country where it is not yet existant. We chose to bring Smirnoff Vodka to Brazil.

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Page 1: International Marketing Campaign

Team BrazilSmirnoff Vodka

Kendra Goldman Joseph Kelley Jonathan Lynch Jennifer Murdix David Shake Malcolm Winston-Townsend

Page 2: International Marketing Campaign

HistoryBrazil was discovered in 1500 by Pedro Alvarez Cabral

On September 7th, 1822 Brazil had their first independence day Brazil was officially free from Portugal and was now its

own country

1888 slavery was abolished 1945 Brazil becomes a member of the United Nations

Page 3: International Marketing Campaign

GeographyLocated in South AmericaBroken up into 5 separate

regions: northern, northeast, west central, southeast, and the southern region

Each region has its own geographical characteristicSome of the world’s largest

mountain ranges, plateaus, rain forests and rivers

Although the regions also contain valleys, the majority of Brazil is covered with mountains and rain forests.

Page 4: International Marketing Campaign

Social InstitutionsFamily is the foundation of Brazil in the social

structure Children are expected to live with their family until

marriageThe education systems in Brazil are not as strict as

the American culture In Brazil it is mandatory for children of ages six to

fourteen to attend schoolBrazil is not run by one ruler; they have political

parties similar to America’s such as judicial, executive, and legislative

Business customs are significant to any company especially when going international as they may very drastically or in this case be fairly similar

Page 5: International Marketing Campaign

Business PracticesNegotiation Style-

A lot of touching and body languageTend to “fill” silent periods with arguments or

concessionsNonverbal Behavior-High Disclosure Rate

Page 6: International Marketing Campaign

ReligionOne of the Seven Wonders of the World, O

Cristo Redentor, translated as Christ the Redeemer

73%

15%

1%2%

2%7%

Roman Catholic Protestant SpiritualistOther Unspecified Athiest

Page 7: International Marketing Campaign

AestheticsA well-known Afro-Brazilian form of martial

arts incorporated with dance is known throughout clubs, schools, and the streets as CapoeiraNot only a beautiful art form recognized by

many but it is a representation of past slaves longing for freedom throughout the country

Considered to be a sport

Page 8: International Marketing Campaign

Aesthetics ContinuedBrazilian carnival which takes place 40 days

before Easter and lasts for four days straight Carnival starts on Saturday and finishes on Fat

Tuesday with the beginning of Lent on Ash Wednesday

Page 9: International Marketing Campaign

Living ConditionsHealth care and sanitary living conditions vary

widely from region to region There is a wide social gap between the northern

and the southern regions The majority of the population lives in urban

areas (87%)Northeast region faces the worst health

conditions in the whole countryWidespread of diseases which calls for serious

medical attention

Page 10: International Marketing Campaign

Recreation & HealthThere are a majority of people who drink

dirty water and have improper nutrition while living in these poor conditions

A majority of the 60% of the population who use the public health care system are limited to the amount of healthcare services provided

Statistics show that children born in Favelas area in Brazil are six times more likely to die than other children born into middle class families

Page 11: International Marketing Campaign

LanguageThe official spoken and written language of Brazil is

PortugueseSpanish

Other languages that are used in the country is a small percentage of German, Italian, and English

Page 12: International Marketing Campaign

PopulationOver 199 million peopleNumber 5 largest population

in the worldThis population supports a

huge target market of young adultsPer 1,000 live births there

are 20.5 deaths

Page 13: International Marketing Campaign

Key Economic VariablesGDP Total $2.294 Trillion

GDP Growth Rate 2.70%

Personal Income Per Capita $11,800

Average monthly family Income $731

Ports 36 Deep-Water Ports

Miles of Rail Roads 19,186

Miles of Paved Highways 114, 425 (2002)

Telephone (Main Lines) 43.026 million (2011)

Mobile Devices 242.232 million (2011)

Comparison to the World 4

Internet users 75.982 million (2009)

Radio <1000 radio stations

Television 100 TV stations

Page 14: International Marketing Campaign

Economic Variables ContinuedKnown for exporting

Transport equipment Iron ore Soybeans Footwear CoffeeAutos

Page 15: International Marketing Campaign

The ProductSmirnoff Triple Distilled Vodka

Contains 40% alcohol

Originated in a small distillery within Moscow in the late 1800’s

Page 16: International Marketing Campaign

Additional Product InformationAdvantages- Pleases several different

preferences within one target marketDifferent flavorsDifferent types of Smirnoff beverages (5-40%

alcohol)Problems- 8-15 % of the burden of disease in

South America is attributable to alcohol compared to only 4% worldwideNeed to provide warning labels

Usage- Beverage to be enjoyed at different social outings or on an individual basis

Positioning- Currently the World’s leading vodka

Page 17: International Marketing Campaign

Target MarketPrimary Market Segment

Young adults native to BrazilNight club owners

Secondary Market SegmentAmerican or European tourists who are already

familiar with the product

Page 18: International Marketing Campaign

Price & CompetitorsAverage price per 750 ml bottle is $30.00

Smirnoff with our rates will come in $2.16 less expensive

It is a small difference that still keeps us in the same middle grade class, however it gives us an advantage over Amazon Rainforest

Page 19: International Marketing Campaign

Pricing & StructureKeep price equivalent to that of the U.S.

Brazilian Real compared to the USD is about 2 to 1 or about $1.99 Real to every 1 USD

TABLE 1.

Product:

Price By

Bottle (750

ml)

Price By

Bottle

(1.75 L)

Price By

Case

(12-750ml

Btls)

Price By

Case

(6-1.75L

Btls)

Smirnoff

Classic

$13.99 USD $24.99 USD $159.49 USD $142.44 USD

Smirnoff

Flavors

$13.99 USD $24.99 USD $159.49 USD $142.44 USD

Signature Line Smirnoff

N/A $19.99 USD N/A $116.44 USD

TABLE 2.

Product:

Price By

Bottle (750

ml)

Price By

Bottle

(1.75 L)

Price By

Case

(12-750ml

Btls)

Price By

Case

(6-1.75L

Btls)

Smirnoff

Classic

$27.84 BZ $49.72 BZ $318.33 BZ $283.41 BZ

Smirnoff

Flavors

$27.84 BZ $49.72 BZ $318.33 BZ $283.41 BZ

Signature Line Smirnoff

N/A $37.89 BZ N/A $231.68 BZ

Page 20: International Marketing Campaign

Distribution & LogisticsShip from current bottling facilities Keep price of product equivalent to what it is

sold for in America with additional tax to cover shipping charges

Shipped to:NightclubsLocal markets and grocery storesResorts

Page 21: International Marketing Campaign

Promotional EffortsIncrease in internet users

Broadcast on Youtube, Google, Yahoo News, etc.Traditional ads losing power/effectivenessMore interactive environment is on the rise in Brazil

MagazinesRevista VIPCool MagazineElle BrazilTela Viva

Televised MTV Brasil- Similar to America’s MTVGazeta-Similar to ESPN

Page 22: International Marketing Campaign

Promotion Continued“Five years after Gilberto Kassab, the mayor of Sao

Paulo, Brazil passed the "Clean City Law", banning all visual pollution around the city, both citizens and businesses are thankful”

Coupons and free samples will be provided at:ClubsResortsCasinosBeaches

Utilizing Brazil’s soccer team:5-time World Cup ChampionsCommercialsMagazine AdsIn the stadium during the games

Page 23: International Marketing Campaign

Works Cited123Independenceday.com. Compare info base limited, n.d. Web. 1 Jan. 2013. Binny’s Beverage Depot. Gold Standard Enterprises, 2013. Web. 29 Jan. 2013.“Brazil Has Become a Trailblazer in Computer Use.” Redorbit.com. Knight Ridder Washington Bureau, 25 Sept. 2005. Web. 16 Jan. 2013.“Brazil: History.” Geographia.com. Interknowledge, 1998. Web. 1 Jan. 2013.“Brazil: Housing.” Nationsencyclopedia.com. Advameg, 2012. Web. 1 Jan. 2013.“Brazilian household income hits record high in 2009.” Peoples Daily Online. Peoples Daily Online, n.d. Web. 10 Jan. 2013.“Brazilian Television.” Brazil Travel. Yahoo, n.d. Web. 29 Jan. 2013.“Brazil in the Football World Cup.” World Cup 2014 in Brazil. Yahoo, n.d. Web. 29 Jan. 2013.“Brazillian Dress Code.” WorldBusinessCulture.com. CDA Media, 2012. Web. 1 Jan. 2013.“The Brazillian Legal System.” oas.org. Organization of American States, n.d. Web. 1 Jan. 2013. Brazillianperformingarts.org. N.p., n.d. Web. 1 Jan. 2013.“Brazil Timeline.” Brazil Timeline. History Timelines, n.d. Web. 1 Jan. 2013.“Brazil - Transportation.” Encyclopedia of Nations. Advameg, Inc, n.d. Web. 10 Jan. 2013.

Page 24: International Marketing Campaign

Works CitedA Dantas de Medeiros, Adelardo. “3.3.b. Brazilian dialectal zones.” The Language of Portuguese. Department of Computer Engineering and Automation Technology Center, n.d. Web. 5 Dec. 2012.“EveryCulture.com.” Countries and Their Culture. Advameg, n.d. Web. 17 Dec. 2012.“Executive Office of the President.” Office of the United States Trade Representative. N.p., 2012. Web. 29 Jan. 2013.“Family Structures.” Ldldproject.net. Lesley University, n.d. Web. 1 Jan. 2013.“Flag of Brazil.” Enchantedlearning.com. Enchantedlearning.com, n.d. Web. 1 Jan. 2013.Gordon, Kayla. “Banned Billboards a Success in Brazil.” Planetizen. Urban Insight, n.d. Web. 29 Jan. 2013.James, Gary. “Business Basics in Brazil.” Journal of Accountancy. American Institute of Certified Public Accountants, Nov. 2011. Web. 15 Jan. 2013.Kubacka, Katarzyna. “Education at a Glance: OECD Indicators 2012.” Oecd.org. OECD, n.d. Web. 1 Jan. 2013.“Living in Brazil.” LivinginBrazil.com. N.p., n.d. Web. 1 Jan. 2013.“The Market.” N.d. PDF file.Pgranoff. “Can You Party like a Brazilian?” NY2Rio.com. NewYorker-2-Carioca, 7 Nov. 2011. Web. 28 Jan. 2013.“Population Density in Brazil.” A-level Geography Population. S-Cool Youth Marketing Limited, n.d. Web. 13 Jan. 2013.

Page 25: International Marketing Campaign

Works Cited“The School System.” AngloInfo.com. AngloINFO Limited, n.d. Web. 1 Jan. 2013. Thebrazilbusiness.com. Fujikawa, 11 Aug. 2011. Web. 29 Jan. 2013.“Types of Vodka.” Smirnoff. www.typesofvodka.net, 2011. Web. 29 Jan. 2013.“Vodka.” Amazon Rainforest-Vodka. FindTheBest.com, 2013. Web. 29 Jan. 2013. W3newspapers.com. Brazilian Magazines Online, n.d. Web. 29 Jan. 2013.“Way of Life, Brazil, South America.” Costasur.com. CMS by SelfModif(c), n.d. Web. 15 Jan. 2013. We Are Heineken. Heineken, 2012. Web. 29 Jan. 2013.“The World Fact Book.” CIA-The World Fact Book. Central Intelligence Agency, n.d. Web. 5 Dec. 2012.World Health Organization. “Brazil: Socioeconomic Context.” 2011. PDF file.