Brazil Market Entry

BME can provide Marketing Research/Market Research for new brands considering entering the Brazilian market

Brazil has had a lot of attention from round the globe due to the recent World Cup. And the Olympics in Rio in 2016 will continue the momentum. Brazil is a good market to enter due to:

a) A booming economyb) A middle class demographic of 100m people

One of the main drivers of our economic boom is the transition of the population structure from Pyramid to Diamond…………..

Such a dramatic shift creates aspirations:

• I want shoes made in Italy not China• I want a holiday in Europe not Chile• I want a BMW not another VW• I don’t want to drink beer with dinner, I want wine• I want kids clothes that last more than 3 washes• I want better healthcare• I don’t want counterfeit Nikes• I want more and better stuff – and I can afford it

Its interesting to note that the highest per capita consumption of Malt Whisky, anywhere in the world is in Recife a city in the North of Brazil. ( Source: SWA 2013)

By a beautiful coincidence the device on our flag reflects our population structure

AB

C

DE

2010 2015 2016Rank Country € bn Rank Country € bn €1 US 666 1 China 1,0422 China 597 2 US 8433 Japan 272 3 India 4284 India 265 4 Russia 394 Brazil 3435 Brazil 219 5 Brazil 3306 France 208 6 Japan 2847 Russia 194 7 France 2418 UK 162 8 UK 1949 Germany 162 9 Germany 17510 Italy 130 10 Indonesia 170 Total 2,875 Total 4,101

Brazil, Russia, India and China are all set to be in the top five grocery markets for the first time by 2015 according to latest figures released by international grocery analysts IGD. Growth in Brazil is predicted to be about 50% over the next four years with its grocery market increasing from €219b to €330b and to be 4th ranked in the world by 2016

Some of the high growth markets in Brazil include:

ConsumerHealthcare/MedicalTravel and TourismBeverages and SnacksDomestic appliancesAutomotiveFashion/ApparelJewellery/Luxury GoodsToileteries/CosmeticsBaby/Kidswear productsBBusiness-to-BusinessMedical devices/equipmentOil and GasLogistics/DistributionRetailing/FranchisingHealthcareIT/CommunicationsAutomotive componentsConstructionMinerals/Mining

Brazil Clothing Retail Structure

C Sector

Top End Malls e.g. DasluTop End Boutiques e.g. Lourice

Large number of smaller shops in Urban areas many specialised by type e.g. Lingerie, Jeans – Low quality and prices

Mid – Market Malls Specialist Boutiques

Mixed Retail Chains : Renner, Herring, Zara, Riachuelo ,

Ellus, C &A, Pernamboucas, Marisa

Supermarkets/Discount Stores Local

AB Sector

DE Sector

HYPERS, Foreign: Carrefour/Walmart Local: Azucar/Extra

Brazil Grocery Retail Structure

C Sector

Specialist stores e,gHypers/Supers

Carrefour, GPA, Walmart, Cencosud, Dia

Atacarejo – local warehouse/discount clubs/ direct selling

Regional Smaller Supers Regional Independsnts

Convenience Store Chains: Petrobras, Ipiranga, Shell, Esso

Independent C stores

Local small stores, Street Markets

AB Sector

DE Sector

Smaller format branded fasciia owned by large groups

Brazil Drugstore* Retail Structure

C Sector

Top End Malls/Dept StoresHypermarkets/Supermarkets

Beauty Specialist retailers

Direct Selling e,g. Avon 1.5 representatives, Natura 0.8million reps

Mid – Market Malls Specialist HealthPublic and Private Pharmacies 58,000

Parapharmacies/Drugstore Chains :DPSP/Onofre/Raia Drogasil/Pague Menos/Big Ben/Araujo/Panel Vel

Supermarkets/Discount Stores LocalStreet Markets

AB Sector

DE Sector

Other smaller local shops

Included beauty/health/personal care/ cosmetics/ toileteries fragrances etc

Market Entry Research Mostly involving Jewellery Market Analysis

Distributor SearchTrade InterviewsDistributor interviewsDistribution Structure AnalysisRetail structure analysisTrade barriers/Tariff structures SWOT analysis Labelling/PackagingEntry strategies Import proceduresTrade Statistics ( Imports)

Confectionery Leather/Luxury goods Medical Devices Apparel (Womens wear) Kids Wear

Jeans Automotive

Our recent experience spans several categories and types of Marketing Research/ Information

BME sees that potential market entrants have very specific requirements and we understand the context of any proposed research:Market Entrant Requirement Our Methodologies OutputWe need to understand consumer shopping and consumption behaviour in our category

A Usage and Attitude survey amongst category users

Written report/presentation

We need to understand how consumers perceive our products/brands/packaging

Focus Groups with category usersDepth interviewsEthnography

Report/Video streaming/Simultaneous translation

We want consumers to use our products and give us feedback

Central Location test or Home Usage test

Screener/placement/multiple call backs

We want to know what competitors are on the market and at what prices

Store checks (with photos)Price checks (plus samples)Mystery shopping

Supermarket prices data plus photos/samples if needed

We need background information on our market/category

Desk Research Market size/trend/structure/brands/distribution

We want to identify potential partners/importers

Distributor searchTrade interviews

Identification/screening/profiles/visits

We seek to deliver bespoke solutions and provide added value

METHODOLOGIES EXAMPLE PROJECT #1 EXAMPLE PROJECT #2

Comparative Testing

Chocolate cake and brownies

Fragrances

In Depth Interview

Surgical Procedures Excavator (telephone)

Online Community

Tablet and Smartphone Party Beverages

Focus Groups Ink Cartridge In Vitro Fertilization (online)

CATI Medical Aestheticians Pick-Up TrucksEthnography Food Consumers Cell Phone Users

PAPI Tourism in Brazil Social SurveyCAWI Ophthalmologists Industrial Buyers

Recent projects we have undertaken include :

Our previous experience spans the following sectors:

Household Cleaning Media IT - Telecoms Automotive Political Logistics Energy Retail Fashion Apparel Luxury goods Jewellery Food and Drink Cosmetics

Our approach to projects is structured:

1) Understand your needs

2) Understand the market context and then:

3) Prepare a proposal defining Objectives, Sample, Methodology, Timing, Costs and Deliverables

4) We can prepare reports/presentations in Portuguese, Spanish and English

5) We can provide Data Collection or Full Service (that is with analysis of results and reports)

BME offer coverage of all states/cities in Brazil:We utilize a network of over 500 contacts built up over the years:

Recruiters (50+)

Interviewers (200+)

Supervisors (60+)

Moderators (32)

Viewing facilities (By City)

CATI facilities ( By State)

Translators (20)

Analysts (40)

We can construct a team for any market research project on a totally bespoke basis so that clients only pay for what they need

Our approach makes us different:

BME don’t just rush out a quote at short notice - we consider the marketing context of your research needs which is highly relevant in our fast growing economy.

BME consider that Market Entry may have research needs that can be very specific amongst both Trade/Consumer sectors.

BME strive to provide insights rather than mere data tables because this gives meaning to survey results

How to contact

Robert Amine (UK)E-mail robertamine@aol.comTel: +44 (0) 208 950 2520Skype: robert_amine