•RESULTS OBTAINED•ACTIONS AND SOLUTIONS CARRIED OUT

• COMPETITIVE SCENARIO•STRATEGIC OBJECTIVES

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D E M A R K E T I NG

2011

IN POPULAR COMMERCEINNOVATION

With less than three years of existence,

the Shopping do Porto (“Porto

Shopping Center”) has established

itself as one of the main shopping

options in Porto Alegre. It has been

recognized and won awards, but is

proud to highlight that the quantitative

results were surpassed by the goal,

the most significant of this public

concession being the social insertion

of 800 retailers, from street vendors

to entrepreneurs. A radical change has

taken place. These achievements have

opened an opportunity to substantially

improve the quality of life of these

people, not only in the material sense,

with the acquisition of homes, cars

and children with better learning

conditions. The achievement has been

so great that it is reflected in the

restoration of citizenship, valuing them

as citizens who enjoy their rights and

at the same time are aware of their

duties.

Customers are more and more

present – in greater numbers – and are

consuming more daily. This is a sign

that their desires and needs are being

attended to.

There is still much more to be done,

but the awareness that the work done

has been having an effect is very

pleasurable and challenging.

Administrating the Shopping do Porto

in a more humane manner is the

mission, and the focus is to pursue

the best result – for the retailers and

entrepreneurs as well as for society

through socially valid actions, which

generate sustainability for everyone.

This document aims to present the

scenario as it is, the challenges

established, the activities accomplished

and the results obtained. It has been a

trajectory full of emotion, replete with

breakthroughs and conceived with a

lot of sweat. It has all the makings

of an example, an administration by

concession model for the Country. This

is the story of people who, united in a

cohesive team, sought to accomplish

their part, each one individually,

refuting pity and misfortunes in favor

of valuing rights, but also obligations.

Elaine Deboni

General Director of the Shopping do Porto

INTRODUCTION

VERDI CONSTRUCTIONSRio Grande do Sul/Brazil, specifically in

the city of Erechim in 2000, was where

Verdi Constructions S.A. was founded.

The business, which currently has

500 collaborators and around 1000

outsourced employees working on

their different operations and ongoing

constructions, has emerged to attend to

the demand of industrialized constructions

and special arts constructions (bridges

and overpasses), offering engineering

solutions and civil construction for

various business groups in Brazil. Over

the past 10 years, the company has

established itself in the field by creating

and patenting a penitentiary construction

system (SISCOPEN, Sistema Construtivo

Penitenciário), a project through which

the company has built more than 47

prisons and penitentiaries all over Brazil.

The product is an answer to the urgent

need by society and the state for efficient

solutions, with a good cost/benefit

relation and which attends to the norms in

effect, satisfactorily fulfilling some of the

main needs of the Brazilian prison system.

Currently, the company is already enjoying

the glory of its achievements, such that,

according to the Isto É Dinheiro magazine,

March 26, 2008, the Verdi construction

firm is among the top 50 successful cases

of applying corporate efforts to positive

initiatives, which deserve to be recognized

and replicated. To enter the select group

of Empresas do Bem (“Business Doing

Good”), the magazine divided the

performance of the companies into ten

different segments: Education, Health and

Nutrition, the Environment, Science and

Technology, Culture, Sports, Support for

the Community, Recycling, Entrepreneurial

Sustainability and Valuing Diversity.

Verdi was recognized by the publication in

the entrepreneurial sustainability category,

where it was highlighted that the

sustainable performance of a company is

not limited to the simple use of renewable

materials that do not compromise the

environment in their processes and

products.

In May 2007, Verdi Constructions,

in a process of diversifying its

investments, disputed the bidding for

the construction and administration of

the Popular Shopping Center of Porto

Alegre. And it won.

THE CONSTRUCTION OF THE SHOPPING DO PORTO – CAMELÓDROMO (“BAZAAR”),

INITIALLY KNOWN AS THE CENTRO POPULAR DE COMPRAS (“POPULAR SHOPPING

CENTER”), BEGAN IN 2007 AND WAS CONCLUDED AFTER TWO YEARS. THE OFFICIAL

INAUGURATION OCCURRED ON FEBRUARY 9, 2009.

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The bold and challenging project,

which aimed to remove the camelôs,

or street vendors, from the streets,

granted a space with the necessary

infrastructure for commerce and to benefit

entrepreneurship. The design came

from public authorities. First, the City

Hall of Porto Alegre granted the areas

for construction. Then, it established

a partnership with a private initiative,

specifically Verdi Constructions S/A – the

winning company of the bidding process

for the use and administration of the

location for 25 years, extendable for 10

more years. Since Verdi believed in the

enterprise, it invested around US$ 16

million, an amount that surpassed the

previously estimated value by more than

US$ 6 million.

The 18,521m² building was strictly

adapted to all of the security

requirements. The building was planned

with the ground floor dedicated to bus

complexes from the Public Transport and

Circulation Company (EPTC, Empresa

Pública de Transporte e Circulação),

favoring movement into the shopping

center. The second floor was for the 800

stores, from various areas, as well as a

food court with a variety of gastronomic

options, lottery agency and ATMs. The third

floor was planned for a theme restaurant,

restrooms and parking for 216 vehicles.

The building has a food court, restrooms,

special needs access (escalator and five

elevators), private security, a video camera

security system and policing. In this

building, there are two walkways with a

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panoramic view of the bustling Júlio de

Castilhos Avenue.

The 800 stores attend the sectors of

women’s, men’s and children’s clothing,

accessories, beauty products, electronic

equipment, but, moreover, the shopping

center employs around 400 people in

other services offered. There are 19 stores,

which include snack bars and restaurants,

the food court, as well as ATMs, a lottery

agency, a tobacco shop and beauty salon.

The retailers occupy, individually, a stall

of at least four square meters, which

have electricity and telephone lines.

The shopping center also has a theme

restaurant.

With an avant-garde spirit and connected to the culture of Rio Grande do Sul, the

location stands apart for bringing together culture and leisure and, at the same

time, for spreading the relevant social role of the enterprise.

Verdi works incessantly to be and to provide the mark of prosperity in the life

of each one of the more than 800 new entrepreneurs.

Mission

To provide the community of Porto Alegre and the

Metropolitan Region with a location for shopping and

entertainment, contributing to the social, economic and

cultural development of the Gaúcha Capital.

Values

Ethics

Integration

Commitment

Entrepreneurial spirit

THE SHOPPING DO PORTO CONSTRUCTION

THE BUILDING WAS EXECUTED WITH THE USE OF ARCHITECTURAL PRECAST PANELS, WHICH

PROVIDED THE USE OF STATE-OF-THE-ART TECHNOLOGY, AS WELL AS THE POSSIBILITY OF

CONCLUDING THE CONSTRUCTION IN LESS TIME. THE DEVELOPMENT OF THE PROJECT WITH THE

USE OF ARCHITECTURAL PRECAST PANELS GAVE VERDI THE FIRST PLACE IN THE 15TH FALCÃO

BAUER COMPETITION OF TECHNOLOGICAL INNOVATION FOR HOUSING AND SUSTAINABLE

CONSTRUCTION – CBIC, ONE OF THE MOST STANDOUT BRAZILIAN AWARDS.

A WORLD IN TRANSFORMATION

THE SOCIAL ASCENSION OF THE LOW-

INCOME POPULATION OF THE COUNTRY

PROVOKED A HEAVY TRANSFORMATION

IN THE CONSUMER MARKET AND,

CONSEQUENTLY, IN THE STRATEGIES

ADOPTED TO ATTEND TO THIS MARKET.

A LEGION COMPOSED OF 37 MILLION

BRAZILIAN FAMILIES, WHO ARE AVID

CONSUMERS. IN 2010, THE C, D AND E

CLASSES REACHED AN INCOME OF US$521

BILLION, MORE THAN 60% OF ALL

BRAZILIAN INCOME

(Source: Instituto Data Popular).

The emerging consumer wants quality. The

fact that his wallet is fuller does not reduce

the value that he gives to his money. What

has changed is that today, his purchase

is not made based only on the price; he

wants guarantees that the product is good

and that it has the qualities it advertises.

This consumer wants information. To be

certain that he is making the best choice,

he needs to know everything he can about

the product, whether by word of mouth

with friends, relatives and neighbors,

or by communication from the brands

themselves. The popular classes consider

the cost/benefit relation of their purchases

and this relation needs to be perceived

explicitly. This new client profile reveals

the great potential for the development of

shopping centers focused on the popular

segments, with convenience and safety of

the shopping centers allied with offers of

products with differentiated products.

STREET COMMERCE: A MEANS FOR SUBSISTENCE

With the significant increase in the

population and the lack of jobs, many

have invested in the purchase of products

for resale, becoming street vendors and,

this way, providing their livelihood and

that of their dependents.

In the big cities, this type of commerce

has been growing more and more and

these vendors, known as “camelôs”,

face various difficulties. Whether for the

lack of resources, the lack of structure

and conditions found on the streets, or

for the problems caused by the climactic

variations, to all of these obstacles we

may add the informality of the activity,

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which is often the only option for the

family’s survival. If, on the one hand,

various street vendors were prospering

and became more professional, many

others remained unprepared and,

therefore, continued creating problems

for their clients and for the region. The

rhythm of expansion of activities as well

as the disorder with the invasion of the

public space denounced the seriousness of

the problem. In Porto Alegre, something

needed to be done immediately.

INNOVATING COMMERCE

For 250 years, people lived with the

“camelôs” in the most central zone

of Porto Alegre. In the past 20 years,

a population of approximately 800 of

them, the most of which were licensed,

gathered around the Public Market and the

Rua da Praia (one of the main streets in

downtown Porto Alegre). The city needed

to change this scenario.

The City Hall of Porto Alegre expedited the

establishment of the first popular shopping

center in the city. The format of the project

was based on the experience of popular

shopping centers from the state of Minas

Gerais. However, to establish such an

enterprise, it was necessary to promote a

change of norms for the street vendors.

After the presentation, the project was

approved, which standardized and

regulated the street sales in the downtown

area, altering the law that allowed for

a variety of activities on sidewalks. This

way, it became illegal to have commerce

on the streets and sidewalks outside of

pre-established areas or those areas still

accepted by the City Hall. Based on the

guarantee that people would no longer

be allowed to remain on public streets for

purposes of commerce in the downtown

area, the SMIC (Municipal Secretary of

Industry and Commerce) authorities

began to act on prevention to avoid the

establishment of new street vendors

outside of the specified locations. The City

Hall evaluated that 1.2 thousand spaces in

different popular shopping centers would

be sufficient to house the estimated two

thousand street vendors, which were

divided into three categories: licensed

(such as those located in the Praça Quinze

Square – Downtown), listed (those on

Voluntários da Pátria Street – Downtown)

and the tolerated (late afternoon vendors

on Andradas Street – Downtown).7

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PROBLEMS: LACK OF PLANNING AND RESISTANCE TO CHANGE

THE 800 CAMELÔS REGISTERED FOR THE

POPULAR SHOPPING CENTER RECEIVED

THE NOTICE OF THE BEGINNING OF THE

OPERATION OF ACTIVITIES OF THEIR

SELLING SPOTS FOUR DAYS PRIOR TO THE

DATE. A SPECIAL OPERATION BETWEEN

THE MILITARY BRIGADE AND THE SMIC

AUTHORITIES WAS SET UP, IN ORDER TO

PREVENT THE INVASION OF THE CENTER BY

INVADING AND ILLEGAL CAMELÔS.

In February of 2009, the Popular Shopping

Center – The Camelódromo of Porto Alegre

began its operations. In the beginning,

and even in the first few months, serious

problems emerged. The obstacles ranged

from the bad relationship among the

vendors that were established there to the

weak flow of people who went there.

The reasons for this difficult scenario

involved various flaws, but all fell back on

the fact that there had not been enough or

adequate training for those workers from

street stalls. Though aware of the arduous

battle, facing the strong sun, the rain and

the harassment from the authorities, they

kept resisting the innovative idea. Many

did not want to start having rules, hours

and formalized costs for renting space,

since they felt like there were more doubts

than guarantees. The place and the change

began to generate distress and a backlash.

It seemed that despite the fact that the

past was full of risks and uncertainties, the

future did not signal better horizons.

If a Popular Shopping Center in the heart

of Porto Alegre left many established

retailers satisfied, the same did not occur

for the street vendors. The sensation

was more than a victory for the

street vendors than an opportunity or

recognition for the vendors and camelôs.

Those that were not able to be a part

of the new space, and even those who

were had been given a box, had many

complaints.

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The main reason for the rejection of

most of the vendors refers to, mainly,

the costs that would be charged. Before,

the camelôs expended, on average, US$

113 per month. Among the expenses

were included the costs of the deposit of

the commercialized products, food and

transport. The value stipulated, initially,

for the Popular Shopping Center, was

US$250 per month, plus the expenses for

electricity, cleaning and building security

services. The vendors alleged that they

wanted a Camelódromo and that they

would be in a shopping center full of

additional costs without visualizing the

gains with this.

Some stalls did not amount to US$160 in

stocked merchandise for sale. The greatest

concern was the inability, mainly for the

small vendors, of assuming a commitment

of payment that, theoretically, was greater

than their earnings. It was improbable to

guarantee the compensation of the rent

of the proposed space, since, according to

the contract, non-compliance led to a fine

and substitution of the tenant. In other

words, they sensed potential problems of

defaults.

AT THE BEGINNING OF THE POPULAR SHOPPING CENTER, THERE WAS PROTEST, MONITORING AND APPREHENSION OF ILLEGAL PRODUCTS.

THERE WERE MANY COMPLAINTS FROM THE RETAILERS. THEY ARGUED THAT THEY DID NOT EARN THE SAME THAT THEY DID ON THE STREET. BEFORE, THEY DID NOT HAVE TO PAY TAXES. NOW, IN ADDITION TO

HAVING TO PAY REVENUES, THEY COULD ONLY SELL WHAT WAS LEGAL.

Some vendors also rejected the Popular

Shopping Center because the exposition

was detrimental to their products.

According to them, on the street it was

easier for those passing by to admire their

products. They questioned whether people

would go out of their way to the location

in order to appreciate each one of the

800 stands. Even with the Center offering

escalators, elevators, a place with fast

food franchises and parking, the vendors

doubted that the location would attract

more of the public than on the streets.

There were many critics and, frequently,

they were quite violent.

The camelôs had a lifestyle and a way of

selling that had nothing to do with a place

like the one to which they were being

transferred. Initially, many of them could

not find advantages in the move, only risks

and losses.

The location developed with state-of-

the-art technology, following the most 9

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demanding standards of responsibility

to the environment, by Verdi, removed

more than 800 retailers and offered

dignified work conditions and structure.

When there were only sidewalks in the

city to sell their products, these groups

often faced inhumane situations. However,

unfortunately, there was no recognition

of the comprehensiveness of the

completely innovative project. There was

no perception of the value of the change.

There was no evaluation on the part of

the vendors that they were migrating

to a commercial enterprise that would

come to provide true work conditions in a

quality environment. It was important that

everyone was prepared for a new reality.

The fact demonstrated that much still

needed to be done.

CHALLENGE: TRANSFORM CAMELÔS INTO RETAILERS AND ATTRACT THE PUBLIC TO THE LOCATION

The situation signaled that it was

necessary to go beyond a simple change

of location. Many other transformations

would need to be worked on. It was

necessary to be advanced with concrete

actions of management knowledge,

entrepreneurial training, in addition to

providing the opportunity of a cultural

evolution with new perspectives, fostering

opportunities and socialization.

Before winning over the consumer public, it

would be important to win over the internal

public. It would be important to qualify the

relationship between the entrepreneur and the

new businesspersons. It would be such a big

change for many of them. The big challenge

was to transform the camelôs into retailers.

Many street vendors claimed a great

accommodation. Some counted on and hoped

for the social “handouts” by public authorities

and from administrators. This posture was

common among the retailers, who wanted

to compensate their misfortunes in sales.

The amateurism in the conduct of business

was visible in the un-businesslike behavior,

frequently observed in many of the ex-

camelôs, remnants of the times of sales on

the street, when they did not have strict hours

or firm commitments. Many retailers could

not deal with having to pay for rent and a

building tax. They resisted to adapting to the

new model, which required a differentiated

commercial framework and another level in the

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Some retailers worked only part-time and

did not earn what they could have earned,

so they complained about the rent and

low presence of the public. The fact of

the costs being fixed, and the growing

market and technical demands, altered the

paradigm of the business and the way of

working. A new posture was imperative.

Many were not prepared or even willing to

do this.

This dissatisfaction was responsible for a

high rate of default. In the first months

of operation, the rate of default got up to

33%. More than a third of the 800 retailers

did not pay the necessary fees. A large

part of the non-payers was in this situation

for not accepting the rules brought about

by the change. Many were outraged and

wanted to go back to the streets.

This circumstance was allied to the

challenge of attracting the public and

pursuing differentials that could be

perceived and valued by society. In

other words, it was necessary to create

attractions for the consumers and sales for

the retailers. The entire marketing process

needed to be reviewed.

The administrative company of the

shopping center, Verdi Constructions,

had a serious problem. The situation

made the project impossible and

forecasted a tragic solution for all:

entrepreneur, city hall, the population

and, the most affected, the retailers of

the Popular Shopping Center.

TO MAKE IT POSSIBLE IT WAS NECESSARY TO: ADD VALUE, ATTRACT PUBLIC AND SELL MORE The challenges were great. Verdi would

have to pursue the possibility of the

business by adding value to the shopping

center to attract more public. The

strategy would have to contemplate the

qualification of the existing operations.

It would be fundamental to structure

a project of marketing of relationship

with the retailers, qualifying them and

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It was imperative to decrease the level

of default. To this end, it was necessary

to increase sales, a fact that indicated

the urgent need to increase the flow

of people. Nevertheless, to attract the

public it was essential to offer products

and services that satisfied the needs and

demands of this target. In other words,

the central base of the objectives was to

qualify the enterprise, to attract public and

to sell more.

The market context was favorable. There

was demand; the Camelódromo would

have to be positioned to pursue its slice of

the potential market. The main mission of

the entrepreneurs was the construction of

a new form of relating and attending to

the clients. Moreover, it was necessary to

direct the flow of consumption that was

previously on the streets to the inside of

the enterprise. The circumstances indicated

the need to attract this public and attend

them well. However, first the resistance

and limitations of the retailers themselves

had to be overcome as they needed to

recycle themselves for a new moment.

Many were the challenges, but, certainly,

much greater would be the results if the

work was well executed.

The entrepreneurs as well as the retailers

wanted to be happier and accomplished.

The path to increasing sales and to be

recognized as a new and important center

of popular consumption in Porto Alegre

would have to be taken quickly.

REPOSITIONING TO ATTRACT MORE AND ADD MORE VALUE

The enterprise needed to win over more

clients, broaden its market, and add value

to its business. Therefore, the Popular

Shopping Center brand – Camelódromo

needed to be reviewed and repositioned.

The proposed value of the enterprise had

to be better understood by everyone, by

the internal public as well as by the clients

and by society as a whole.

The values of the brand needed to be

more tangible through communication and

relations. The actions executed up until 12

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then were out of tune, their investment

in communication was scattered, it was

important to direct and pursue measurable

results from the investments carried out.

A marketing plan had to be elaborated

and strategic partners for the structure and

establishment for the necessary actions

had to be contracted. The organization of

one-time promotions and events were

important strategies for pursuing the

positioning and the intended value.

QUALIFYING SERVICES AND PRODUCTS: FROM CAMELÔS TO RETAILERS

To improve business, Verdi had to invest

in the fast tracking of the adaptation of

the retailers to their new reality. It would

be necessary to have training activities,

awareness raising and sensitivity to the

new moment.

It was essential for there to be a shock,

a change, a transformation. A portion of

the retailers needed to be motivated and

another, which had good qualifications,

deserved to be more valued. People

with high potential and excellent sellers

were among the “new entrepreneurs”.

Nevertheless, they needed to be

encouraged, while the other did not have

the energy necessary to undertake the

business, since they did not have the

vision of the future. The endomarketing

process was shown to be fundamental for

placing the existing retailers inside the

process of change. At the same time, it

was important to train them with selling

techniques and processes that would make

their work easier. There was a conviction

that they would only win over new clients

and the loyalty of the current ones by

offering a superior customer service,

in every way. Therefore, they would

need to invest in training, technological

updating and continuous improvement in

the pursuit of the quality perceived of its

services. And this had to be done quickly.13

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THE CAMELÓDROMO CAME TO DEVELOP ACTIONS THAT WOULD MAKE IT POSSIBLE TO ACHIEVE THEIR OBJECTIVES AND STRATEGIES. TO OBTAIN RESULTS WITH HIGH LEVELS OF EXCELLENCE, IT WAS NECESSARY TO BE ATTENTIVE TO THE

DETAILS, IN EACH ACCOMPLISHMENT, AS WELL AS TO THE HIGH STANDARDS OF QUALITY IMPRINTED ON THEIR CONCEPTIONS. WITH DIFFERENTIATED FORMATS OF RELATIONSHIP AND POSITIONING IN GAÚCHO RETAIL, THE BUSINESS WAS

GIVING IMPORTANT STEPS TO ACHIEVE ITS GOALS. MANAGEMENT WITH A FOCUS ON RESULTS HAD TO BE ACHIEVED.

SHOPPING DO PORTO – CAMELÓDROMO, NEW COMMUNICATION AND POSITIONING

The Camelódromo opted for a new form

of communicating with the market.

To reconnect, win over clients and

prospect new ones, a strong institutional

repositioning was necessary. The name of

the enterprise was changed from Popular

Shopping Center to Shopping do Porto –

Camelódromo.

A change that not only implied the

“naming”, but the positioning of

the enterprise. The transformation

advocated a significant evolution: it

was necessary to stop being a center

for camelôs in order to be a popular

shopping center.

It was necessary to be positioned as such.

Not as a building with 800 camelôs, but

as a place with various attractions as a

true shopping center – safety, cleanliness,

events, promotions and parking - but with

its essence preserved – that of being a

Camelódromo, that is, a popular shopping

center, where one can find a large variety

of products for low prices. A large fair

of products with the convenience of a

shopping center, but with the flavor of

personalized customer service of 800

camelôs that became retailers, without the

inconvenience of being outdoors on the

streets of downtown. All were identified

and located in their stalls, with the safety

of knowing that purchase was being made

with someone who is established in a

fixed location and not a street vendor.

Moreover, the shopping center received

a new internal signaling, a differentiated

decoration and a cultural center.

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TRAINING PROGRAM: FROM CAMELÔS TO RETAILERS

The preparation for an administration that

is more adequate for the new reality and

good customer service were important

points that deserved attention from

the retailers. Courses and motivational

talks and professional training for the

retailers were carried out in the Shopping

do Porto, in partnership with important

entities. The Camelódromo promoted a

training program for sales aimed at the

popular retailers who occupy their stands.

The initiative was a partnership with

the Association of Marketing and Sales

Directors of Brazil (ADVB-RS, abbreviation

in Portuguese).

The program, formed by three

seminars, was scheduled for after the

retailers’ working hours. The basic

purpose was to work on techniques of

communication and customer service

to promote a greater understanding on

the importance of motivation at work,

which contributes to an improvement

in the performance of the retailers in

medium and long term.

The inaugural class was on the topic “the

secret to earning more money”. The

next lessons were “grade A customer

service” and “techniques for serving better

and selling more”. However, training

is teaching to use. The vendors of the

Camelódromo, previously camelôs were

not being transformed into retailers.

Though it was difficult for them to see

themselves in this new role, since some of

them had worked with street selling for a

long time, where there was no marketing,

no management, and much less publicity.

Their way of sales was only shouting, the

insistence towards people who passed

by. There was also pirate goods and

smuggling. However, with the fostering

of the entrepreneurial feeling, things

changed. There was a change of attitude, a

renewal of methods. With the appropriate

criteria to be successful in business, the

market laws were implemented. Those

most capable excelled.

Moreover, motivational and encouraging

actions were carried out. Since the

opening of the Camelódromo, it was

perceived that the retailers needed to

promote modifications to increase sales.

An important activity with this objective

was the motivational talk with Nelma

Penteado, nationally renowned for

proposing corporate solutions based on

principles of self-esteem and motivation

and considered one of the best specialists

on the topic in the Country. The talk was

carried out in the Shopping do Porto for

all of the retailers. The people went in

despondent about their future and left

personally and professionally motivated. 15

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The attitudes, the enthusiasm and

the energy of the speaker influenced

the participants. With the promotion

of motivational talks and orientation

towards increasing sales and creating

loyal customers, the lessons ranged

from marketing strategies to the type

of merchandise that should be exposed,

since the profile of the public has

been evolving into a more demanding

category.

The shopping center added to its mix

of services and stores, beyond the

stalls of the ex-camelôs. It started

to offer services such as a lottery

agency, ATMs and a beauty salon.

Differentiated gastronomic options were

also introduced – such as an operation

specializing in cheese breads and a

small Greek restaurant. The specialized

stores, such as a tobacco shop and

telecommunications company, promote

the increase in the flow of clients.

In addition to the low prices and the

privileged location, in the downtown

area of the Capital, the Camelódromo

has among the variety of products

and in the speed of restocking its

competitive differentials. The retailers

were encouraged to restock seasonally

demanded products quickly, such as fans,

and adapt their mix easily on dates such

as Christmas and Carnival.

PERFECTING THE MIX SERVICES AND PRODUCTS

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SIMPLICITY AS A DIFFERENTIATING ELEMENT

The informality of the shopping center and

its simplicity has become its differentials.

The public has come to understand that

a popular shopping center has different

characteristics than a non-popular

shopping center. The perception that

this results in lower prices and greater

accessibility for consumption has become

important. There are still a number of

challenges for the location to have more

conditions for winning over the public

from the large shopping centers of the

city and from street vendors, such as for

example, the decoration of the corridors

and pavilions, which is still discrete.

FASHION EVENTS: INTERNAL TALENT MAKES A DIFFERENCEOne of the important actions for

positioning the popular shopping was

the implementation of fashion shows.

However, these were not typical fashion

shows. The retailers themselves or their

children, relatives or friends, were the

stars of these events. In addition to

displaying the products that were on

sale in the shopping center, the events

fostered a process of internal relations

(endomarketing) and a substantial

increase in the self-esteem of the

participants. The objective was to show

that it was possible and intelligent to walk

in style spending little and highlighting

that the shopping center also provides

fashion creators. This is because a large

part of the retailers, as well as vendors,

were producing their own brands.

One of the walkways of the shopping

center over Júlio de Castilhos Avenue

was transformed into a fashion corridor,

17

Translate do titulo da matéria do jornal

Translate do titulo da matéria do jornal

for the first shopping center fashion

show. Clothes and accessories sold by the

retailers were on display by 70 models

chosen in the selection carried out in the

shopping center. The models chosen in

this very location presented the products.

The team of models, composed of children

and acquaintances of the 800 ex-camelôs,

presented the trends for Spring-Summer

2009/2010 on the catwalk.

FASHION MAGAZINE: ADDING VALUE AND POSITIONING

THE SHOPPING DO PORTO HAS BEGUN TO EDIT A FASHION MAGAZINE EVERY SEMESTER AND BEGAN TO USE IT AS A PROMOTIONAL TOOL FOR SELLING THE PRODUCTS OF THEIR RETAILERS. THE MAGAZINE PRESENTS THE FASHION SHOWS THAT ARE PRODUCED BY THE CAMELÓDROMO – STARRED MAINLY BY THE CHILDREN OF THE RETAILERS, THEIR EMPLOYEES, OR, IN SOME CASES, BY THE RETAILERS THEMSELVES. THE VEHICLE, IN ADDITION TO BEING A PIECE OF COMMUNICATION, PRESENTED ITSELF AS AN ELEMENT OF SELF-ESTEEM AND MOTIVATION. THE 800 RETAILERS BECAME THE PROTAGONISTS OF THEIR OWN SUCCESS.

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segunda-feira, 9 de maio de 2011 23:03:08

Perfil de cores: Desativado

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The idea was to reveal all of the

potential that the shopping center has as

a new shopping center and with quality

and highly competitive products. The

intention was to show that luxury is a

question of context and which can be

very well democratized. The magazine,

organized by the board of directors of

Verdi Constructions, has an important

characteristic: the models are the

sons and daughters of the retailers or

employees.

The cover girl of the first issue, Sabrina

Hendler, who was at the time a waitress

at the Shopping do Porto said: “Being

a model is a dream of every girl. I was

very happy to be in the magazine, not

to mention that it is good for the self-

esteem”, Sabrina joked. In August of

2009, the first edition of the Shopping do

Porto Magazine emerged, a publication

in color, with 40 pages, with pictures

from the fashion shows promoted

by Verdi, fashion tips and behavior

and what was most fashionable in

the 800 stores. The initial circulation

was of 10 thousand copies. The board

of directors of the shopping center

distributed 40 thousand copies in

Porto Alegre, in various spots: the bus

station, the International Salgado Filho

Airport, the bus stops and in events.

After the success as cover girl of the

Shopping Center magazine, Sabrina’s

dream became a reality. Today she is a

professional model.

By June of 2011, four editions of the

magazine had been published.

19

MODA NO SHOPPINGMODA NO SHOPPING

22 Revista Shopping do Porto – Maio 2011

CULTURAL EVENTS: NEW SPACE IN DOWNTOWN

Cultural and educational events are carried

out for the integration and entertainment

of the visitors and consumers of the

shopping center. The proposal is to be

positioned in a different way, attracting

the public and positive media. Moreover,

the fact of being a new cultural spot in

downtown Porto Alegre motivated the

implementation of a space for events.

The idea of transforming the Shopping

do Porto into a multidisciplinary space,

bringing together culture, fashion and

entertainment, made the place one of the

obligatory stops on the touristic itinerary

of the city. The objective is to provide

important moments of culture to those

who go and work there. The initiative

provided social inclusion by means of

access to musical knowledge and artistic

experiences. One of the objectives is to

develop attitudes and sensitivity, promote

self-esteem and collectiveness, and at

the same time, stimulate sensibility and

knowledge of local culture. Within this

approach, various actions were developed,

some which can be highlighted were:

1st EXHIBITION OF CULTURE OF RIO GRANDE DO SUL

In September of 2009, the event marked

the inauguration of the cultural space

of the shopping center, celebrating the

commemorations of the Farroupilha

Revolution with a photographic exhibition.

The exhibition. was also marked by a

circuit of shows by nativist songs and

talks about the most celebrated historical

passage in the State.

On the occasion, those who went to the

Camelódromo could watch the surprise

shows by nativist artists. The presentations

occurred in the Food Court. Parallel to

the shows, people could also observe

the photographs by Eduardo Rocha and

participate in the drinking of the typical

chimarrão. The gigantic panels with rural

images caused an impact on the public,

which is preferentially urban.

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ST. VALENTINE’S DAY

To commemorate St. Valentine’s Day, a

special performance by the Group Criar

(“Create”) was promoted, with the theme

being “Alice in Wonderland”.

SURPRISE OPERA

A surprising meeting between the clas-

sic and the popular moved hundreds of

people. The Shopping do Porto was the

stage of an unusual action that gathered

the public which filled the corridors of the

shopping center on the eve of Father’s

Day. Two lyrical singers, pretending to be

clients, carried out a live and unexpected

presentation, singing parts of the La Tra-

viatta Opera. The mini-spectacle, which

lasted around 5 minutes, accompanied by

a piano, told a little bit of the tragic love

story between Violeta and Alfredo.

MOTHER’S DAY

An exhibition of photos of the retailers

and their mothers on the walkway of the

shopping center and a sale, in which the

client who bought more than R$50.00

would compete in a raffle of products.

21

COMMUNICATION ACTIONS: COMPETITIVE INTELLIGENCE

The Shopping do Porto had very low marketing

funds to be invested in their actions of

communication and promotions. The option to

have a highly competitive result was to work

through the effort focused on competitive

intelligence, developing extremely directed

and business oriented media and promotion

planning, highlighting the result and not the

mere visibility of the brand. The objective

was to highlight the main differences of the

service and its form of relating to its clients.

This work required talent and study from the

marketing sector. The Shopping do Porto is

always innovating to attract more consumers.

The concept of low prices and large variety in the

buying options are the standout ingredients in

communication.

The established plan of communication

prioritized the focus of the work on events and

sales. The directed communication occurred

through the distribution of the magazine and

it was also highlighted to the external media

that, using busdoor, focused on its target public

(classes B, C and D) of Porto Alegre and the

Metropolitan Region.

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USING THE INTERNET AND SOCIAL MEDIA

After promoting fashion shows and cultural

events, the Shopping do Porto launched other

innovative ideas. Accessing the website www.

shoppingdoporto.com.br, the public can know

more about the products and services available

there.

The initiative aimed to improve the

communication between popular consumers and

retailers. Based on the site, there is information

available not only about products, but also

on news and there is even the possibility of

following the day-to-day of the place, where

thousands of people pass daily. In addition to

being an important tool of approximation with

the public, this was a way to promote the work

accomplished.

The portal offers a list of stores and products.

This way, it enables the navigator to find what

he wants from the links such as “accessories”,

“handicrafts”, “bazaar”, “toys”, “cosmetics” and

“electronics”, among others. The internet user

can locate the store according to its name and

number, since all are registered.

Events promoted there, such as the Cultural

Exhibition and the fashion shows are highlighted

in photos and texts. Thus, like the first edition

of the Shopping do Porto, available in PDF, in

addition to search tools and dissemination

of institutional videos telling the story of the

enterprise and future plans.

Accordingly, it was possible to register clients

and fans of the shopping center who participate

in the sales and start receiving all pertinent

information. From the first institutional phase,

with the creation of a database, new actions of

relations and the use of social media are being

planned. All of this is to intensify and strengthen

the relationship with different publics. 23

SPECIAL SPACES FOR EVENTS AND SALES

The shopping center makes spaces

available for the production of events and

promotions. Due to the privileged location,

in downtown Porto Alegre, with easy

access and intense public flow, its common

areas are excellent for holding events.

The National Service of Commerce

organized in the Shopping do Porto, in

May of 2011, the 6th edition of the Fair of

Opportunities, one of the biggest events

of professional education in the Country.

Promoted simultaneously in the 40 units

of the institution in Rio Grande do Sul, the

action has the objective of encouraging

and orienting the qualification of workers

that integrate the sector of commerce

of goods, services and tourism. On the

third floor of the shopping center, various

environments were set up which offer

to participants more than 50 options of

talks, workshops, seminars and actions of

professional orientation in an arena with

120 seats.

Over the course of a day, in the other

spaces, free services were provided aimed

at the community such as nutritional

orientation, massage therapy, blood

pressure checking, professional resumé

writing and Work Card processing.

Over the course of the day, the public

filled up the workshops with nutrition,

computer science, language, fashion and

professional orientation tips. Due to the

great public turnout, it was attested that

the location is an excellent option for

events and promotions in Porto Alegre.

24

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INTEGRATED MARKETING: GREATER IMPACT AND RELATIONS

The synergy between the different

marketing tools enabled the optimization

of the results and contributed to making

the brand even stronger, not only its

image, but also the circulation of its

services.

Integrated marketing – resulting from

events, promotions, merchandising in the

selling points, direct marketing, digital

media, public relations, press consulting,

research and endomarketing, among

others, subsidized the positioning of the

brand, the invigoration of the enterprise,

stimulated the prospection of new clients

and strengthened the already existing ties.

With empathetic actions it was possible

to help the retailers to help themselves

through the practical application of

knowledge and of resources that

improved the quality of their personal and

professional daily lives.

WITH THE SHOPPING DO PORTO, A NEW LIFE HAS BECOME POSSIBLE FOR MANY FAMILIES. DEDICATED ENTREPRENEURS WHO WORKED WITH EFFORT, GENERATED OPPORTUNITIES AND BENEFITS FOR MORE THAN

30,000 CONSUMERS WHO PAY A DAILY VISIT TO THE BIGGEST POPULAR SHOPPING CENTER IN THE SOUTH OF BRAZIL.

population and in the recovery of the

Central Region. The rate of return of clients

reinforces this expectation. Currently, 60%

of the clients come back later. This makes

the challenge to stimulate the first visit.

The occupation of the commercial area is

98%, an indication that the change of the

Square XV to the Shopping do Porto has

been financially advantageous for a good

part of the 800 retailers.

The level of default of the retailers in

February of 2009 reached 33%, in August

2010, within the 800 existing operations

in the Camelódromo, the percentage fell

to 14% and in July of 2011, it was 7%.

Since the main revenue of the operators

is the rent received, there has been a

relevant increase in the rates of the result

of the operation. A strong indicator that

the actions developed have had an effect

on sales and the level of management of

the new retailers. Another indicator is the

rate of turnover (rotation of stall renters).

Since February of 2009, it was only 1%, an

extremely low number under any criteria.

THE SHOPPING DO PORTO – CAMELÓDROMO IS A SUCCESS OF THE PUBLIC AND SALES AND ALREADY COMMEMORATES

ITS ACHIEVEMENTS. THE NUMBERS PROVE THE SUCCESS.

TODAY, THE SHOPPING CENTER MAINTAINS A FLOW OF 30 THOUSAND PEOPLE A DAY, BEING THAT ON COMMEMORATIVE DATES, THESE NUMBERS ARE EVEN HIGHER.

On Saturdays, the average of public

is around 50 thousand people and, in

December, the daily average of visitors

on the three levels of the location – bus

terminal, sales area and parking – already

hit 100 thousand. On the eves of the

commemorative dates (Children’s Day

and Mother’s Day), the flow of public also

reaches levels of approximately

100 thousand people.

The flow of people increases regularly, the

shopping is no longer concentrated only on

Fridays and weekends and the quantity of

retailers and satisfied customers indicates

a rising trajectory.

The Shopping do Porto is important for

offering options of shopping for the

RES

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EVOLUTION IN THE REDUCTION OF DEFAULT LEVELS

Feb Apr Jul Nov Fev Mar Jun Jul Aug Abr Jul2010 20112009

Source: Shopping do Porto Administration

33% 30% 29% 28%18% 19% 17%

16% 14% 8% 7%

50

40

30

20

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SATISFIED CLIENTS, MORE PURCHASES MADE

In December of 2009, a research was

carried out on the profile of the consumer

and satisfaction in shopping at the

Camelódromo of Porto Alegre. The work

was elaborated by the Center of Studies

and Research in Administration of the

Federal University of Rio Grande do Sul

(CEPA/UFRGS). The objective was to

measure the level of satisfaction and

loyalty of the clients, after 10 months

of its establishment. The investigation

contemplated the different indicators of

satisfaction in a sample of 695 clients,

proportionally representing the whole

operation. The results confirmed that the

quality and the services of the Shopping

do Porto were perceived and have reached

their target. An important statement of the

work accomplished; they are the fruits of

a process of prospecting and maintaining

clients.

Some of the main

points of information

INCREASE IN PURCHASES:

42.5% OF THE CONSUMERS

HAVE BEGUN

TO BUY MORE PRODUCTS

FROM THE CAMELÔS

IN THE NEW LOCATION.

GREATER FREQUENCY:

17.5% BUY ONCE

A WEEK IN THE CAMELÓDROMO

DEGREE OF SATISFACTION WITH THE SHOPPING DO PORTO – CAMELÓDROMO

Attribute researched Level of satisfaction (in %)

Variety of products sold 86.8

Quality of products sold 79.0

Customer service 76.0

Location 88.8

Ease of access 89.0

Prices 72.4

Cleanliness 73.6

Organization 76.4

General evaluation 79.6

Source: CEPA/December 200927

SOCIAL AND LEGAL: CITIZENSHIP ABOVE ALL

Before the Shopping do Porto, practically

all camelôs that were transferred there

were inserted in an informal economy.

Currently, 60% of the retailers are

formalized. The payment with credit

and debit cards is a routine in the

shopping center and surprises the client.

The shopping center encouraged and

supported, through its legal department,

that the retailers had their situations

formalized as micro-entrepreneurs.

STRONG MEDIA PRESENCES, PROMOTING THE POPULAR SHOPPING CENTER

The Shopping do Porto was intensely

present in the media. Consecutively,

the business became a point of

reference and was on the agenda of

stories on popular commerce and social

insertion. The high points were a special

participation in one of the main Gaúcha

television program, Jornal do Almoço

(“Lunchtime News”), on RBS TV, where

the group of retailers and their children

appeared, presenting economical

suggestions for everyday fashion and

gave important testimonies.

28

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RECOGNITION AND AWARDS

The Shopping do Porto won the TOP of

Marketing award by ADVB-RS – Association

of Directors of Marketing and Sales in

the category of Commercial Poles. It was

victorious in the main awards ceremony

on marketing in Rio Grande do Sul. The

award recognized the success of the bold

and innovative shopping center, built in

the heart of Porto Alegre, which won

over prejudices and worked arduously to

transform street vendors into retailers,

trained to attend to demanding customers.

The shopping center surpassed its

objectives by going beyond a simple space

for hosting retailers, establishing itself

as a reference in the category of popular

shopping center in the South of Brazil.

Moreover, the September/October edition

of 2010 of the Case Studies Magazine,

published with the support of the Getúlio

Vargas Foundation, which presents

important cases of entrepreneurial

management, conveyed the complete

case of the Shopping do Porto “Promoting

innovation in popular commerce”,

highlighting the success and results

achieved by the enterprise. A national

recognition of the work accomplished.

The director of the enterprise was honored

with the Medal of the City of Porto Alegre.

The tribute was a consequence of her

professional trajectory and her leadership

in the innovative process of transforming

street vendors into retailers. In addition

to her accomplishments with respect to

professional training and the actions of

valuing the innovative commercial space

in Porto Alegre.

29

Case studies

p e r s o n a l c a s eR i c a R d o G o R s k i

Diretor regional Da aspect para o Brasil

revista brasileira de managementwww. ins ightnet .com.br /case ISSN 1981-6057

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ale mídias digitais e guerrilha transferindo atitude à marca

grêmio foot-ball Porto alegrense marketing de relacionamento gerando valor para todos

CASE STUDIES

38

Verdi Construções

Em 2008, ao se tornar uma referência nacional na construção de monoblocos de alta quali-dade para penitenciárias, ampliou considera-velmente sua produção. Paralelamente, presta

serviços diversos para a construção civil, como:• Estudos e/ou consultorias • Assessoria aos arquitetos na concepção de

projetos• Desenvolvimento de projetos• Produção de peças especiais pré-fabricadas • Entrega e colocação dos produtos• Realização de fundações

Atualmente a empresa já usufrui os louros de suas conquistas. Tanto que, segundo a revista IstoÉ Dinheiro, de 26 de março de 2008, a Construtora Verdi está entre os 50 casos bem-sucedidos de aplicação de esforços corporativos em iniciativas

No Rio Grande do Sul, na cidade de Erechim, em 2000, foi onde a Verdi Construções S/A iniciou suas atividades. A empresa, que conta atualmente com 995 colaboradores e cerca de 1.000 operários terceirizados trabalhando em suas diferentes operações e obras em andamento, surgiu para atender à demanda de obras de saneamento e obras de artes especiais (pontes e viadutos), oferecendo soluções de engenharia e construção civil para diversos grupos empresariais do Brasil. Entre suas primeiras obras estão o Viaduto Salgado Filho, em Porto Alegre, e a Ponte Irineu Bornhausen, na cidade de Brusque, Santa Catarina.

Promovendo a inovação no comércio PoPular

P a u l o R a t i n e c a s / e l a i n e D e b o n i

A TRANSFORMATION IN THE LIVES OF MANY PEOPLE

The most important result was the transformation

provided for the greatest protagonists of the enterprise:

the retailers. This fact enabled not only the social

insertion but also the development and greater quality

of life for hundreds of people.

The shopping center became a reality and many came

to live out their dreams with the establishment of the

Camelódromo, whether from a financial perspective or

from the strengthening of self-esteem. Many cases reflect

the development and the result of the work done. The

great majority of ex-camelôs became retailers, earning a

market, appropriately generating their resources, growing

in their sales and having more

quality of life. The population began to have an important

option for their shopping, in addition to being able to

participate in cultural activities and take advantage

of moments of entertainment.

30

“During the 44 years of my existence, I have always faced the bad weather working in street commerce. Initially, as a street vendor of fruits and vegetables, then moving on later to costume jewelry, bags and knickknacks in general; depending on the profits from these sales to sustain my family. It was always an arduous and difficult work, since we faced the rain, thunder and storms, sometimes even losing merchandise due to the difficulties from the weather. Then, someone came up with the brilliant idea of building the Camelódromo (Shopping do Porto), which changed the lives of many people for the better; mainly for my family and me. We started to work as microbusinessmen, evolving financially. It became an organized commerce and valued by the clientele and by society. Our lives with the Camelódromo took a 180 degree stand for the better. The torture of the canvases and ropes ended as well as the difficulties because of the weather. In the morning, when we arrive to open the store doors and we start working with the products already in their place and at night at closing time we close the store doors and we go home with the peace of mind for our business being in a safe place. Our microbusiness started buying state-of-the-art products and from recognized and renowned companies from all over Brazil. For these reasons of great transformation and prestige in commerce, we can affirm with certainty that the Camelódromo (Shopping do Porto) is today a reality that worked. A dream has become reality.” Francisco de Assis Navas - PONTO CERTO - STORE 311

“I was a camelô for 11 years in Square XV; I was the third to arrive every day. When I came to the shopping center, my life changed for the better and I hope that it will change even more. This is the shopping center of the future for the one who knows how to work. I will learn English by the time of the World Cup of 2014. Nivaldo Gonçalves - BLUE BOX ABSOLUTA EM ESTILO – STORE 600

“I just have to say that I am very happy for having my store in the Camelódromo and I already do not miss at all the times on the street and the suffering I went through with the rain, sun and wind. Now it is just happiness and Verdi has been a great partner for us to become businessmen.” Sergio Antonio Paim – FREITAS MOKA BOLSAS E MOCHILAS - STORE 757

“The idea of the Camelódromo transformed my life in 360 degrees, mainly when I remember the conditions that we had on the street to work in. Today, I work in a safe place, protected from the bad weather. We now have credibility, which we did not have before. I work for our Camelódromo to become a national example of a successful enterprise.” Maria Padilha - NUNES E PADILHA ARMARINHOS – STORE 352

“Things worked out for me in the Shopping do Porto because I was able to improve my life 1000%. My whole family works in the shopping center, we are known as the Entrepreneurial Family. I have already bought a car and a nice apartment. I have other dreams that I will still realize.” Pedro Villarim Ribeiro - BAZAR DA TIA MARIA E DO TIO PEDRO - STORE 255

“I worked on the street for many years. Today I have my store in the shopping center, which is my pride and joy. I also participated in the magazine as a model, which has raised my self-esteem and I make a point of showing it to everyone so they know how wonderful our shopping center is.” Tairone - SHINE PRESENTES - STORE 489

TRANSFORMING LIVES

THE TESTIMONIALS OF SOME OF THE RETAILERS FROM THE SHOPPING

CENTER WHO SUPPORT THE RESULTS DISCUSSED HERE:

Rua Voluntários da Pátria, 210 - Porto Alegre/RS - CEP 90030-001 - FONE +55 (51) 3072.7591

contato@shoppingdoporto.com.br I www.shoppingdoporto.com.br

75Revista Shopping do Porto – Maio 2011

Há poucos dias, quando par-ticipei junto com o prefeito JoséFortunati da entrevista coletiva deentrega do restauro do Chalé daPraça XV, o permissionário EdemirSimoneti referiu que aquela con-quista havia se viabilizado a partirda realocação dos ambulantes queantes, de forma desordenada, ocu-pavam a Praça XV. Poucos dias de-pois, importantes veículos da mídialocal deram destaque a um movi-mento que nós da Smic, no setorde Licenciamentos, já havíamosdetectado: a retomada do afluxode empreendimentos comerciais ede serviços para o Centro Históri-co. Por evidente que a fala deSimoneti e os dados da Smic apon-tam num mesmo sentido e ates-tam que o empreendimento cora-joso da construção do shopping

Prêmio dividido com o secretárioNesta foto, a Diretora do Shop-

ping, Elaine Deboni, levou até a SMIC,para dividir com o secretário Valter Na-

Foto

: Gui

lher

me

Mer

cado

EDINARDO DANIELLI, Elaine Deboni, Sec. Valter Nagelstein e Diógenes Pereira

gelstein, a Medalha de Porto Alegre, aqual representa o sucesso do empre-endimento e sua sustentabilidade. Mo-

mento vivido graças à postura do se-cretário em honrar com o compromis-so pre-estabelecido em lei.

Shopping do Portopopular foi o vetor inicial de um pro-cesso que eu espero que se concluacom a Revitalização do Cais Mauá.

O Shopping do Porto trouxe, além

do pontapé inicial para que empre-endimentos outros ali aconteçam,um espaço digno para pessoas queempreendiam ao relento, viviam sobuma lona ou a sol a pino, e tal qualnômades, todos os dias tinham queencaixotar e providenciar a guardados materiais que precariamenteficavam expostos.

Se problemas existem, ocor-rem até em shoppings de alto luxo,tais como a mortalidade de um ououtro empreendimento. O impor-tante é que todos reconhecem - ea própria cidade sente - que oShopping do Porto foi um divisorde águas na história recente denosso município.

*Valter NagelsteinSecretário Municipal da

Produção, Indústria e Comércio