Internatio

nal

Business

Presented By

44

05 59 0242

43

37

Worlds 5th

Largest Country

One of the Latest Emerging

Super-Power on the Global Platform

World’s World’s Largest Largest

Exporter of Exporter of Iron Ore and Iron Ore and

SoyaSoya

9th Largest Economyin terms

of Purchasing

Power

Largest Reserves of Tropical Forest, Freshwater and

Bio-Diversity

10th Largest 10th Largest Economy Economy

in terms of in terms of Market ExchangeMarket Exchange

RatesRates

Introduction

• Brazil is larger than the continental US and Australia

• Brazil is also one of the most unequal

societies.• The country outside the G8 with the

best science base.• It is a key player on the world stage.

e.g G20, BRIC, Mercosul and many more..

Brief Description

EconomyBusiness

EnvironmentBusiness

RegulationsProduct Conclusion

Introduction

Brazilian Population

178,000,000

180,000,000

182,000,000

184,000,000

186,000,000

188,000,000

190,000,000

192,000,000

2003 2004 2005 2006 2007

Year

Popu

latio

n

• Population.Population.

• Age Structure.Age Structure.

• Literacy.Literacy.

• Religion & LanguageReligion & Language

Demographic

0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

Mal

e/Fe

mal

e

0-14 15-64 65 & above

Age Group

Age Structure

0

20

40

60

80

100

Literate Illiterate

Male

Female

EconomyPolitical

IssuesBusiness

RegulationsProduct Conclusion

EconomyIntroduction

Overview

• GDP Growth rate – 3.8 % (2006)

• Inflation – 3 % (2006)

• Major Industries

• Trading Partners

• International Economic Organizations

• Government Structure

BusinessEnvironment

BusinessRegulations

Product Conclusion

BusinessEnvironment

Introduction Economy

Business Opportunities

• Introduction of publicly and privately-run agencies.

• Promising and Predominant Urban Market.

• Foreign investment growth has increased from US$ 2 billion(1995) to US$ 20 billion(2006).

• Trade surplus improved BOP position.

• Infrastructure development.

BusinessRegulations

Product Conclusion

EconomyIntroductionBusiness

EnvironmentBusiness

Regulations

Political Environment

• Undeniable distress in regards to macro-economic policies.

• Impact of Presidential election in 2002.

• Devaluation of Brazilian Currency.

Product Conclusion

Introduction EconomyBusiness

Environment

Legal Environment

ExecutiveBranch

Public Ministry

Legal AidOffice

Public DefenseOffice

• Defends the juridical order and to ensures compliance with the law. • Its activities also extend towards decisions regarding Labor and the Armed Forces.

BusinessRegulations

Product Conclusion

ProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

Overview

• Licensing from SECEX (Secretariat of Foreign Trade)

• licenses are valid for 60 days starting from the date of dispatch of the goods

• The license is granted only if the payment is effective within 30 days from the date of B/L (Bill of Lading)

• Custom Duties reduced considerably with the formation of

Mercosur.

• $70 payable lump sum to obtain an import license.

Conclusion

ProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

Product Details

• Product Category : Pet food for dogs• Brand Name : “Dog Chow”• Parent Company : Nestle• Product Attributes and Benefits:

– Nestlé's Premium pet food brand– Formulated with high quality proteins, vitamins.– 100% complete and balanced nutrition– Pet supper stores.

Conclusion

ProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

B 2 C Market

• Today, a majority of the big retailing chains have their own import agencies.

• Brazilian supermarkets handle 80 % of the sales of goods of basic necessity.

• The first three retailing chains in the ascending order are: Carrefour, Pao de Acucar and Sendas.

Conclusion

ProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

Pet Food Industry - Brazil

• Brazil has 27 million dogs and 11 million cats

• They consume about 95 percent of Brazil’s pet food and supplies.

• If all pets were fed processed pet food, the market would total $2.1 billion.

• The Industry is growing at a rate of 26% annually.

• Consumers in the upper income level are the main buyers of pet food and accessories,

• This fast-growing sector is perfect for foreign companies with medium- and long-term plans to enter the Brazilian market

Conclusion

ProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

Market Insights

Retail Dog Food Sale

0

20

40

60

80

100

120

140

160

180

200

1990 1995 2000 2006

Years

Do

llar

in M

illio

n

Conclusion

ConclusionProductIntroduction EconomyBusiness

EnvironmentBusiness

Regulations

Why would Dog Chow be Successful ?

Premium Pet foods see highest growth.

Focus on value-added products.

Relatively few companies dominate the pet food segment.

Pet superstores attract pet owners

ProductIntroduction EconomyBusiness

EnvironmentBusiness

RegulationsConclusion

Future of Dog Chow

• Future challenge -- to convert pet owners at lower income

levels completely to commercially-produced Premium Pet

food .

• Increasing awareness through education on animal health.

• Mid- and economy priced segments increasingly look to

premium lines as a step towards innovation.