The Brazilian Market and Their Interests to Introduce Fogg, a Deodorant Brand in Brazil and Provide a Marketing Strategy
INTERNATIONAL MARKETINGMarket ResearchABSTRACTTo make an analysis of the Brazilian Market and their interests to introduce Fogg, a deodorant brand in Brazil and provide a marketing strategy.Berin Jabez Grant Devadoss – B00724821International Marketing – MKT860Table of Contents1 Introduction 22 Brazil – Market Research (1900 words) 22.1 Market Research Error! Bookmark not defined.2.2 Challenges 22.3 Politics 2Outline 2Trade restrictions: 22.4 Economics 32.4.1 Economic Growth Statistics 32.4.2 Exchange rates 42.4.3 Consumers disposable income statistics | Population statistics 42.4.4 Employment | Unemployment rates 42.5 Social 42.5.1 Hofstede’s Insights analyzing the country’s Cultural Dimensions 42.6 Technological 52.6.1 Infrastructure 52.7 Legal 62.7.1 Ethics 62.7.2 Advertising law and standards 62.7.3 Consumer rights and laws 72.7.4 Employment legislation 82.8 Environmental 82.8.1 Pollution targets 82.8.2 Waste disposal | Recycling procedures 93 Research Data (600 words) 93.1 Data Identified 133.1.1 Analysis and Interpretation of identified data (Survey) | Quantitative research Error! Bookmark not defined.3.1.2 Determine consumption pattern Error! Bookmark not defined.3.1.3 Research Hypothesis Error! Bookmark not defined.4 23 Error! Bookmark not defined.5 References 15IntroductionIn International Marketing the element of a system of knowledge is the biggest factor that determines the activities that an enterprise can perform in other geographical locations (Kozak & Smyczek, 2015).The first part of this report will consist of the pest analysis for Brazil, by analyzing the political, economic, social, technological, legal and environmental characteristics the business will have the knowledge of the important factors relating to status and trends of Brazil that are uncontrollable, but these aspects will have an impact on the business (Granholm, 2017). The analysis will identify external factors, to help determine the impact of the business in the related field.
The second part of this report will justify the opportunity available in the country and the amendments that need to be made in relation to the product and the conditions of the country. This part of the report will consist of a strategy to achieve objectives and overcome challenges to expand company globally.Brazil – Market Research (1900 words)ChallengesCorporate Transparency: Brazil has targeted Foreign Direct Investors to be transparent and the reason provided was stated as the concept of Ultimate Beneficial Owner. The Law was called the Normative Instruction 1634. Before the decree of the said law, when companies confronted financial or legal complications, the responsibility or Liability was on a particular individual such as the Chief Financial Officers, Directors or People in Corresponding positions, which helped foreign partners who held part shares to escape financial scandals (Chagas, 2018). This law obliges companies to produce information about partners and legal entities as registration to avoid practices such as tax heavens or shareholder concealment. Bureaucracy: Brazil is ranked at the 125th Position out of 190 countries under the ease of business adventures, permits for starting businesses, construction permit, taxes and property management. The procedures to be followed on average take 11 hierarchy’s and about 90 working days to be completed (Chagas, 2018).Politics OutlineThe Country is ruled by a president who holds executive power acting as both head of State and head of Government which means the council of ministers are appointed by the President. The legislative power is distributed and maintained by two bodies, The Senate and the Chamber of Deputies. The senate’s members are elected for an 8-year term and comprises of 81 seats, The chamber of deputies members are elected for a 4 year term. The State level legislatives have their own administrators for the 26 states in the country (Santander, 2018).Trade restrictions: South America’s trade bloc encompasses Brazil, Argentina, Uruguay, Paraguay and Venezuela. Between these nations there is a free trade policy. The many restrictions for trade with other countries where lifted in September but one, the import of used commodities except for aviation and motors is still available to businesses to trade used engines or aviation parts (International Trade Administration, 2018). Import Procedures: Before exporting product into Brazil, The Foreign Trade secretariat (SECEX) requires samples to be checked and considered by the Customs provided at Market Value after which an agreement is made with the Ministry of Health and based on the quantity, material and composition of the product a tax rate between 10% to 35% is levied on the product and also it is the Ministry of Health’s responsibility to provide an authorized distributor list to choose from (Santander, 2018).Fuel Price Fluctuations: Brazil’s state owned oil company had introduced a policy that allowed the company to shift fuel prices every day and this decision has affected the fuel prices highly because of political involvement and rise in US interest rates (Leahy, Brazils Diesel Prices, 2018).EconomicsEconomic Growth StatisticsDespite the steady growth rate, the distinct gap between the poor and the rich remains the same. The last minor recession was in 2009 but Brazil has recovered and brought a 7.3 percent rise in GDP in 2010. Brazil is among the BRIC countries (Brazil, Russia, India and China) which denotes that it is one of the fastest growing economies in this tie period (Statists Portal, 2018).