Viva Natural Beleza do Brazil
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table of
Contents
PAGE 4
About Viva Natural
PAGE 6
About Benefit
PAGE 8
Why Brazil?
PAGE 10
Brazil Country Facts
PAGE 12
Unemployment Rate
PAGE 14
Societal Structure
PAGE 16
Brazilian Culture
PAGE 22
Target Market
PAGE 24
Entry Strategy
PAGE 26
Adaptation Strategy
PAGE 28
Competition
PAGE 30
Pricing Strategy
PAGE 32
Viva Natural
PAGE 34
Promotional Strategy
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about
Viva Natural
The organic line Viva Natural is a brand extension proposal for Benefit Cosmetic’s entry into the Brazilian market. The new line includes organic products made from Brazil’s unique natural resources. We believe that the Brazilian consumer will accept this entry strategy, since they are inclined to purchase organic products made in their own country.
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about
OWNERSHIP |
HEADQUARTERS | CURRENT GLOBAL SPREAD | PRODUCTS |
Benefit Benefit Cosmetics was founded by twin sisters Jane and Joan Ford. the company was acquired by LVMH in 1999 San Francisco, California USA, UK, Europe, Asia, Australia
Benefit cosmetics is a cosmetic and skincare line that has a wide range of products
HISTORY TIMELINE |
1976 Benefit is founded in SF
1990 "The Face Place" renamed to Benefit Cosmetics
1991 Opened in first department store
1997 Went international with London expansion
1999 Acquired by LVMH
2003 Opened the first Brow Bar in Macy's SF Information from: www.benefitcosmetics.com
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why
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Brazil?
Brazil ranks as the 6th fastest growing economy in the world
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High purchasing power in growing middle class
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The beauty market is growing rapidly in Brazil as the economy rises: expected growth of 38% by 2016. It will surpass the consumption of USA and UK
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The brazilian fun loving culture is embodied in this brand
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Benefit will be well accepted in Brazil because of the country’s beauty conscious culture 9
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country
SIZE | POPULATION |
GDP |
Brazil is the 5th largest country in the world Over 200 million (July 2012 est.)
ECONOMIC SITUATION | Brazil has become the most powerful economy in South America. It is ranked as the 2nd emerging market in the world
Facts
Brazil GDP Growth Rate averaged 0.9 % in 2012
ENTRY BARRIERS |
High tariff barriers Long delays at customs due to complex bureaucratic processes
BEAUTY MARKET |
The beauty market is growing rapidly in Brazil as the economy rises. It is expected to grow 38 % by 2016, to reach a total value of $59bn.
CURRENCY | 1 REAL = 0.49 US DOLLARS
HISTORY TIMELINE |
1500 Discovered by Pedro Alvarez
1822 Brazil declared independence from Portugal
1888 Slavery was abolished in Brazil 4 million slaves were freed
1889 End of monarchy in Brazil
2010 Dilma Rousseff becomes first female president
Information from: www.britannica.com www.nationsencyclopedia.com www.indexmundi.com www.tradingeconomics.com www.brasil.gov.br
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unemployment
Rate
UNEMPLOYMENT RATE |
UNEMPLOYMENT RATE!
% 14! 12! 10! 8! 6! 4! 2! 0!
2003!
2004!
2005!
2006!
2007!
2008!
Data: Brazil Central Bank
2009!
2010!
2011!
March
Since 2003, more than 8 million jobs have been created in Brazil and the unemployment rate has fallen from 12.1% to 6.5%. This has created a new section of borrowers — the lower-middle and working classes.
Information from: www.nasdaq.com
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social
BRAZILIAN SOCIAL CLASSES |
Structure
There are several different concepts of social classes in Brazil, but the one that is mostly adopted by the market classifies society as letters from A to E. This definition is based, overall, on the households gross monthly income, as follows below: •
Class A: (above BRL 10.200), completed higher education and are fluent in several languages
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Class B: (above BRL 5.100), same education as Class A
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Class C: (above BRL 2.040), finished high school, sometimes finished higher education or at least a technical degree
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Class D: (above BRL 1.020), have not finished high school
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Class E: (below BRL 1.020), have not finished elementary school
More than half of the population in Brazil now belongs to “class C”, which became the largest slice of Brazil’s classic “social pyramid” for the first time in 2010.
information from: www.thomaswhite.com www.nationsencyclopedia.com www. sparksheet.com
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brazilian
LANGUAGE |
Culture
The principal language in Brazil is Portuguese, although Spanish, French and English are also spoken.
RELIGION |
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Major religion is Roman Catholicism (73.6%).
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Christian churches are growing
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Afro-Brazilian religions that combine various indigenous African beliefs with Catholicism
CELEBRATIONS/ NATIONAL SPORTS |
DIET |
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Brazilian Carnival: Lasts for 6 days and ends with Ash day, before easter.
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Brazilian Soccer
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Capoeira
Main dishes in the Brazilian diet include: •
Feijoada (black beans with beef, pork, sausage, and sometimes pig’s ears, feet, and tail),
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Churrasco, which originated in the south, is a barbecue with a variety of meats.
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Bife à cavalo com fritas (meat with egg and french fries)
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Common drinks include lemonade, milk, fruit juices and shakes, soft drinks, coffee, and an herbal tea called mate Information from: www.lacea.org www.culturegrams.com www.explorious.se ww.prospects.ac.uk
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brazilian
VALUES AND ATTITUDES
Culture
• Family ties are strong in Brazil • People are warm, fun-loving, and free-spirited • Brazilians are hard working people • People in most regions (except São Paulo) appear to have an extremely casual attitude about time • Brazilians are proud of their country’s natural resources and diverse culture
AESTHETICS AND TASTE
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VANITY: Brazilians place high value on appearance. “Looking good” is an integral and important aspect of Brazilian culture
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NATIONAL GOODS: Whenever possible, Brazilians prefer to purchase products made within their own country
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FRUGALITY: Brazilians prefer saving money for larger purchases, such as a house; they often look for a “deal” when purchasing other items
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DRESSING & STYLE: In general, Brazilians are fashionable and like to dress according to the latest styles Information from: www.thebrazilbusiness.com www.demographic.br.com www.cultugrams.com www.quantcast.com
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brazilian
HIGH CONTEXT |
Culture
Brazil is what is called a high context culture. This means that Brazilians place a strong emphasis on how a message is said rather than on the words used alone. Because of this high contexting in communication, one needs to establish personal relationships when conducting business in Brazil.
HOFSTEDE |
• POWER DISTANCE: Hierarchy should be respected and inequalities amongst people are acceptable. • UNCERTAINTY AVOIDANCE: Show a strong need for rules and elaborate legal systems in order to structure life • COLLECTIVISM: People tend to have really strong family and community bonds • MASCULINITY/FEMININITY: The softer aspects of culture such as leveling with others, consensus, sympathy for the underdog are valued and encouraged. Information: www.geert-hofstede.com/brazil.html
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target
DEMOGRAPHICS |
Market
Female ages 20-40 represents 23% of population. • Age: 20-30 • Gender: Female • Income: $38-65k • Education: College • Geographic Segmentation: Main urban cities
ATTITUDES & VALUES |
• She is very proud of her Brazilian heritage and culture • Her family and friends form an important part of her life • She tries to live a healthy and active lifestyle • She is socially and environmentally conscious • She puts a lot of emphasis on her personal appearance
BUYING BEHAVIOR |
• She prefers natural and organic products when making a purchasing decision. • A lot of her purchases are made online • She is more inclined to buy a product that is made in Brazil • She likes to buy renowned brands • A lot of her disposable income goes to clothes, shoes and cosmetics.
Information from: www.everyculture.com www.thebrazilbusiness.com www.pwc.com
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product
Branding
TYPEFACE |
D EA R
LOGO |
JOE
A BC D E FGH I J K LMN OPQ R ST U V W X Y Z
Vi va N a tu ra l
a bcd efg h ijklm n opq rs tu vwxyz 12 3456789 0
COLOR PALETTE | THONBURI ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890
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adaptation
NATURAL PRODUCTS |
Strategy
Products will be part of an organic line made from Brazilian natural
NEW COSMETICS LINE |
Benefit will develop new products specifically for the Brazilian market.
resources, such as: The organic line will include facial skincare •
Guarana
masks, mineral powders, lipsticks and other
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Açaí
products all made from some of the most
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Maracuya
popular natural resources from Brazil.
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Cacao
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Mango
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Papaya
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Coconut
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Passion fruit
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Pineapple
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Guava
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Brazil nuts
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Coffee
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Sugarcane
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market
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Competition
Natura; skin care and bath line made out of natural local ingredients and having a strong eco-friendly philosophy
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Contém 1g; makeup brand
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Duda Molinos: makeup made by a professional makeup artists offered at reasonable price
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O Boticário: makeup, skincare, bath, hair care, fragrances and other lines, specially known for its great quality.
•
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Vult: a drugstore makeup brand.
Information from: www.contem.br www.dudamolinos.br www.oboticario.br www.vult.br www.sephora.br
pricing
PRICE COMPARISON |
PRICING STRATEGY |
Strategy
• GEOCENTRIC PRICING We will have a base price that will consider our productions costs. An appropiate markup reflecting costs of doing business in Brazil will be added. • MARKET SKIMMING We decided to introduce our products based on the skimming strategy, pricing ourselves higher than the competition. This will support a luxury positionning in the Brazilian market.
PLACEMENT STRATEGY |
• BENEFIT BOUTIQUE / SPAS The Benefit boutiques will look and feel like a Spa, paying special attention to the Brow Bar services. Focusing on enhancing the services offered at the Brow Bar will be the main factor that will attract customers into the store. • WHOLE SELLING Continue wholesaling to Sephora
Information from: www.contem.br www.dudamolinos.br www.oboticario.br www.vult.br
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organic
Products
Viva Natural It will be made of organic ingredients from some of Brazil's most known natural resources. The line will include skin care products, lip balms, and natural skin care masks. Because the line is organic, creating sustainable packaging will carry over to the brand’s value and commitment to the environment. • Refillable packaging • Refill incentives with percent discount • Eliminate cardboard packaging and waste
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Packaging from: www.thedieline.com
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entry
Strategy
EXPORTING |
Benefit will export some already existing products, including best
STRATEGIC ALLIANCE |
Benefit will partner with a local cosmetic brand to manufacture the
sellers and current cosmetic line.
organic line. This will make the production process faster and easier. It will also reduce the cost and eliminate entry barriers by deleting transportation, taxes and import tariffs.
BROW BAR |
Since Brazilians are used to purchasing their cosmetics through catalogs, we believe that the Brow Bar service will be a great tactic to encourage customers to come into the store. There will be emphasis on the services being provided as well as add new features to enhance the Brow Bar Experience. The new features will include makeup consultations and facials with our signature mascaras. 31
promotional
OUTDOOR ADS |
Strategy
Since Brazilians are more attracted to outdoor media, we have concluded that using outdoor
LOYALTY CARD |
signage would be pertinent to promotion and an extremely important media component
IN-STORE SAMPLING |
Offering free samples and giveaways of some of
LOYALTY PROGRAM |
• Refill discount (Cost effective, and preserves
our key products
customer loyalty)
BENEFIT L o ya l ty Ca rd
name
• Customer loyalty card • Coupons offering discounts on Brow Bar services when purchasing a product from the
my brow bar expert
catalog start date
CARMEN MIRANDA CAMPAIGN |
In maintaining the classic Benefit image of 1940’s-50’s cinema glamour, the advertising and packaging promotions would highlight the look of Brazilian cinema star Carmen Miranda
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number of refills
promotional
Strategy
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