Aussie Project by wangyanyi

Global Market Entry into Latin America Chelsea Colaluca Lexie Hartnett Natsu Ishikawa Adriana Torres Yanyi Wang

1 EXECUTIVE SUMMARY 1. EXECUTIVE SUMMARY ........................................................................................................................ 4 1.1 RESEARCH ............................................................................................................................................................... 4 1.2 TARGET MARKET ................................................................................................................................................... 4 1.3 POSITIONING ........................................................................................................................................................... 4 1.4 MARKETING STRATEGIES ..................................................................................................................................... 4 1.5 COMMUNICATION AND CREATIVE ....................................................................................................................... 5 2. AUSSIE ...................................................................................................................................................... 6 3. SITUATION ANALYSIS ......................................................................................................................... 7 3.1 BEAUTY .................................................................................................................................................................... 7 3.2 HAIR CARE ............................................................................................................................................................... 9 3.3 BRAZIL’S BEACH CULTURE ................................................................................................................................ 10 3.4 THE CHANGING ROLES OF WOMEN ................................................................................................................. 10 4. RESEARCH PLAN ................................................................................................................................. 13 5. SWOT ANALYSIS ................................................................................................................................. 14 6. BRAZILIAN MARKET ANALYSIS ..................................................................................................... 15 7. COMPETITOR ANALYSIS .................................................................................................................. 17 7.1 DIRECT COMPETITORS ....................................................................................................................................... 18 7.2 INDIRECT COMPETITORS ................................................................................................................................... 19 7.3 PRICE AND ADVERTISING .................................................................................................................................. 20 7.3.1 Price Range .................................................................................................................................................... 20 7.3.2 Advertising (See Appendix 3) ................................................................................................................. 21 8. TARGET MARKET ............................................................................................................................... 22 9. POSITIONING ....................................................................................................................................... 23 10. MARKETING OBJECTIVES ................................................................................................................ 24 11. MARKETING STRATEGIES ............................................................................................................... 24 11.1 INTRODUCTION TO MARKET .......................................................................................................................... 24 11.2 BRAND REACH/IMPRESSIONS ........................................................................................................................ 25 11.3 DISTRIBUTION ................................................................................................................................................... 26 11.4 PLACE ................................................................................................................................................................. 27 11.5 PRICE .................................................................................................................................................................. 28 12. COMMUNICATION & CREATIVE OBJECTIVES ............................................................................ 28 13. COMMUNICATION & CREATIVE STRATEGIES ........................................................................... 29 13.1 ABOVE THE LINE .............................................................................................................................................. 29 13.1.1 Traditional -‐ Television .......................................................................................................................... 29 13.2 BELOW THE LINE .............................................................................................................................................. 29 13.2.1 Web ................................................................................................................................................................. 29 13.2.2 Social -‐ Facebook, Twitter, Instagram ............................................................................................ 30 13.2.3 Social -‐ YouTube ........................................................................................................................................ 31 13.3 PUBLIC RELATIONS/COMMUNITY OUTREACH ........................................................................................... 33 13.3.1 Out of Home ................................................................................................................................................ 33 13.3.2 Events ............................................................................................................................................................. 33

1.1 Research 14. IMC MIX .................................................................................................................................................. 35 15. MEDIA OBJECTIVES & PLAN ............................................................................................................ 37 16. BUDGET & FINANCIAL FORECASTS .............................................................................................. 38 17. EVALUATION ........................................................................................................................................ 39 18. PRODUCT REVIEWS & RECOMMENDATIONS ............................................................................ 39 19. CONCLUSION ........................................................................................................................................ 41 20. APPENDICES ......................................................................................................................................... 42 20.1 APPENDIX A ....................................................................................................................................................... 42 20.2 APPENDIX B ....................................................................................................................................................... 43 20.3 APPENDIX C ....................................................................................................................................................... 44 20.3.1 Pantene ......................................................................................................................................................... 44 20.3.2 TRESemmé ................................................................................................................................................... 46 20.3.3 Wella .............................................................................................................................................................. 47 20.3.4 O Boticário ................................................................................................................................................... 49 20.4 APPENDIX D ...................................................................................................................................................... 50 20.5 APPENDIX E ....................................................................................................................................................... 51 20.6 APPENDIX F ....................................................................................................................................................... 52 20.7 APPENDIX G ....................................................................................................................................................... 53

21. REFERENCES ........................................................................................................................................ 54 22. PRESENTATION ................................................................................................................................... 59

1 EXECUTIVE SUMMARY

1. EXECUTIVE SUMMARY Aussie, one of Procter & Gamble’s hair care brands, was founded in 1979 with a unique inclusion of natural Australian ingredients. As the company grows and expands globally, Aussie sees potential in bringing its original post-‐conditioning product, 3 Minute Miracle deep conditioning treatment, into the Latin American market. In order to evaluate this decision, the company must first obtain a full understanding of the Latin American hair care market, select a target market, and determine the most effective entry strategy.

1.1 Research A focus on beauty is prevalent throughout Latin America, and even more so in Brazil. Both primary and secondary research regarding the beauty industry, its projected rate, and trending preferences towards western brands, supports market entry in Brazil. There is underground demand for Aussie products, but the brand must position itself in a way that attracts the attention of its desired target audience in order to make an effective market entry.

1.2 Target Market With an ever increasing number of women heading into the workforce, Aussie’s target market is working women ages 25-‐35. From entrepreneurs to mid-‐level executives in top Brazilian businesses, these high achievers manage more than just their hair. These women balance family, work, friends, and the beach, all while maintaining their beauty routines. Their busy lifestyles drive them towards time saving products as often as possible.

1.3 Positioning Aussie’s positioning focuses on a combination of the brand’s personality as well as the product’s target market. The positioning embodies both beauty and its meaning to Brazilian women. With Aussie, there truly is great hair for great women.

1.4 Marketing Strategies Brand awareness and efficient distribution are key to the marketing strategies for the entry of

1.5 Communication and Creative Aussie 3MM in the Brazilian market. Through the education of salonists and free samples, Aussie is scheduled to make a big splash in Brazil. These strategies allow for deep penetration into São Paulo, where the product will first arrive.

1.5 Communication and Creative Aussie’s communication strategies, together with creative executions, are designed to reach as many women in the target market as possible. The tactics, strategically placed throughout the year, will focus on empowering women through events, networking, and sponsorships. Throughout every execution there will be a tie into the Aussie brand and the sun soaked Brazilian lifestyle it embodies.

2 AUSSIE

2. AUSSIE Founded in 1979 by Tom Redmond and acquired by Procter & Gamble in 2001, Aussie offers a range of hair products from shampoos and conditioners to treatments and styling formulas. Each product incorporates natural Australian ingredients, which mirrors its laid back, beach style brand image. The company’s first product was a deep conditioning treatment called the 3 Minute Miracle, known for its intense moisturizing characteristics in hair repair. This product remains one of the most popular within the brand’s collection, and the most prominent on a global scale. Aussie boasts its ability to deliver “carefree hair with time to spare” and has separate product lines for women, men, kids, and family. The brand’s positive attitude and successful products that deliver real results have allowed the company to expand beyond its U.S. roots. Aussie currently operates in seven countries worldwide, and is always looking for opportunities for further expansion where appropriate.

3.1 Beauty

3. SITUATION ANALYSIS 3.1 Beauty Beauty is not just an aspiration, but a way of life for Latin Americans. From hair and makeup to body physique, attaining “perfection” is the goal for most women. Although beauty is expected, it does not come without effort. It takes considerable time, money, and dedication. Latin American women of all ages have become accustomed to spending hours in front of the mirror applying make-‐up and styling their hair until they attain the “perfect look”. This glorification of self-‐image is essential in Latin American culture, in a way that shapes the everyday behaviors of women. To these women, beauty is not an option, it is a necessity. In the best sense, Latin American women possess a cultural soul of vanity. The obsession with beauty in Latin America, and especially in Brazil, dates back several centuries to the Trans Atlantic Slave Trade during the 1800’s. "The female slaves were used as sexual objects to initiate the master's son's sexuality or to satisfy him. And the result has been that until today, Brazilian women are seen in a more sexualized way, because she was used as a sexual object for so long” (Garcia-‐Navarro, 2014). This legacy of objectification has imparted a lasting effect on women of every class and race in Brazil to this day. Looking beautiful is an important aspect in women’s lives as their role in society has traditionally depended upon it. In one poll of Latin American women, ‘looking your best in day-‐to-‐ day life’ is deemed either important or very important by 91% of people (Laporte, 2014). Beauty has always been important to Latin American women, and as time goes on, this has been even more amplified by the presence of the media. According to NPR, “What’s sold as beautiful here today is someone like Brazilian model Gisele Bundchen: a woman who is tall, thin, blond, with straight hair, bigger breasts and fewer curves” (Garcia-‐Navarro & Chalk, 2014). But as anthropologist and social scientist Marcelo Ramos points out, "If you look at the traditional body type of a Brazilian, you would see a woman with dark skin,

3 SITUATION ANALYSIS curly hair, small breasts and a larger bottom — a body that is very different from the body marketed as desirable” (Garcia-‐Navarro & Chalk, 2014). Images of flawless models with silky, shiny, and smooth hair fill the industry’s advertising channels, implying that in order to be successful, women must strive to embody these unrealistic images. Many Latin American women have taken to cosmetic surgery as an answer. Brazil recently surpassed the U.S. as, “the nation with the most cosmetic surgeries performed in the world” (Garcia-‐Navarro & Chalk, 2014). This is even more notable when taken into account that Brazilians have both a smaller population and less collective disposable income per capita compared to the U.S. For some Brazilian women cosmetic surgery is viewed as a privilege, but for an even greater number, it is a necessary tool to achieve beauty, and the success and confidence that comes thereafter. Not all Latin American women see such cosmetic surgeries and body alterations as ideal methods of attaining beauty, however. Many women rely on beauty products to achieve their ideal “look”. In 2012, a study by IBOPE Intelligence reported that Brazilian women spent more than $7.7 billion on products, representing nearly half of their total spend for personal care and beauty products (Stylist, 2015). Weekly manicures, three or four monthly visits to beauty salons, and countless hours of care at home are typical for Brazilian women; they are expected to be "divina" from 12 to 90 years old (Stylist, 2015). Women choose on an individual basis what styles and types of products give them the boost in self-‐esteem and happiness they need. Like different beauty products, Latin American women have different definitions of what beauty means to them, but there is much overall evidence to the importance of beauty to each and every woman: ●

"Beauty, for me, is fundamental. It’s the door. It’s the entry to many things — for work, for everything.” -‐ Erileide Barbosa da Rocha

●

"Beauty is feeling comfortable and looking in the mirror and liking what you see. It’s

3.2 Hair Care loving yourself.” -‐ Gisele Silva Geronimo ●

“Beauty is feeling good about yourself.” -‐ Mariza Chaves

●

"Us women, we’re born with the desire to be a mother. But we’re also born with the desire to be beautiful. So, we really deserve it." -‐ Janet da Silva Timal de Araujo

3.2 Hair Care Hair care is seen as one of the most crucial aspects of personal beauty within Latin American cultures. Spending time on hair is critical to a woman’s routine, and according to a Household and Personal Products industry magazine, six out of ten Latin American women will not leave their house if they did not have time to properly style their hair (Ferreira, 2014). This being said, the hair care market in Latin America has huge potential and opportunity. The women of Latin America, with a wide range in natural hair types, demand many special treatments in order to keep their hair the way they want, which consequently leads to an increase the demand for hair care products throughout the region. Certain hair care products are developed in order to protect hair damage from pollution and humidity, or lack there of. Meanwhile, other products focus on stimulating hair growth and aid in everyday maintenance (Ferreira, 2014). Brazilians, who lead the hair care market segment in Latin America, specifically tend to treat their hair frequently and in a dedicated manner (Micallef, 2014). The graph in Appendix A demonstrates how Brazilians spend substantially more on hair care than any other beauty or personal care category. Specifically, they spend a lot of money outside the home, as 37% of Brazilian women said that going to the salon is a necessity. Keratin hair treatments are very common in Brazil, with over 80% of Brazilian women having chemically treated their hair at least once (Ferreira, 2014). At one point keratin treatments were, “the newest trend in defrizzing and smoothing many textures of hair from curly to relaxed”, and the trend has proven to last (Lin, n.d.). These “Brazilian blowout” treatments began in Brazil but then spread to Chile, Argentina, Peru, and beyond, showing just how influential the hair care industry in Brazil truly is (Lin, n.d.). Since this

3 SITUATION ANALYSIS trend began, hair moisturizing and maintenance products have also increased in popularity due to how dry keratin treatments leave hair afterwards.

3.3 Brazil’s Beach Culture Tourists of the world look to Brazil to experience the ultimate beach vacation, but many Brazilians are born and raised along the country’s beautiful coastal shores, making the beach central to their lives. The beach’s cultural presence is apparent in the language they use when describing the weather. Reporters describe the upcoming conditions stating, “Da praia no fim de semana?,” which translates to “will the beach be possible this weekend?” and the answer will trigger either a room full of disappointed moans or glorified cheering. When a family member or neighbor is headed to the beach it is customary to say, “Boa praia para você” meaning “Have a good beach (Schneider, 2012)!” To Brazilians the beach is not only a destination, but a way of life, symbolizing relaxation and leisure, and serving as a community space. The beach is a place to unwind, smile, and experience life. From meeting up with friends, to going on a first date, the beach is always the recommended location for Brazilians (Vilar, 2015).

3.4 The Changing Roles of Women Since 1990 women’s presence in the workforce has increased by 21% within Latin America, encompassing 100 million women and climbing in 2012 (Corpart, 2013). The rise of women in the workforce has positively affected the economy throughout Latin America with females contributing an average 36% to their families’ income (Women Matter, 2013). Only 17% of women in Brazil worked outside the home in 1960, yet fifty years later two thirds of females are employed (Amazons, 2012). In the case of Brazil, women’s participation accounted for a 30% decrease of those living in extreme poverty (Women Play, 2012).

The influx of Brazilian women joining the workforce is paralleled to females being the

predominant gender in higher education. 28% more women are enrolled in Medical studies and 10

3.4 The Changing Roles of Women 67% more women are studying Natural and Earth Sciences, Arts, Humanities, and Health versus their male counterparts (Women Matter, 2013). An obstetrics professor within Brazil explains the modern woman that has emerged over the past two decades, “Brazilian women are tremendously strong. It was just a matter of them deciding, and then having the means to achieve it (Gomey, 2011)”.

While these highly educated women have values that more closely align to those of North

American women than ever before, the perception of her own drive is far beyond the educated woman of the United States (Corpart,2013). 59% of college-‐educated Brazilian women described themselves as “very ambitious”, compared with just 36% of women in the United States (Amazons, 2012).

The ambitious attitudes and entrepreneurial spirit of Brazilian women led to them

represent half of Brazil’s entrepreneurs in 2010 (Ezequiel, 2013). In looking inside corporate Brazil one can witness the struggle of this transition as females learn how to conquer the work world and simultaneously accomplish their domestic responsibilities. On average, Latin American women dedicate 2.6 times more hours than men to domestic activities, which adds up to 26.6 hours per week compared with 10.6 hours for men (Women Matter, 2013).

A female VP of Human resources for an automotive company within Brazil expands on the

work life balancing act, “Women place barriers on themselves. If a woman doesn’t feel 100% prepared she won’t take a new opportunity, even though everyone else thinks she is able to do it.” In turn, Latin American women are likely to move laterally or take up a part time schedule within a company in order to fulfill family responsibilities (Women Matter, 2013).

While an extensive wage gap between male and female workers exists within Brazil the

society at large has embraced females’ positions in leadership. For example, while the current President Dilma Rousseff was running for office, national debates surrounded her political ideas and affiliations, not whether the nation was ready for its first female president (Gomey, 2011). 11

3 SITUATION ANALYSIS During her presidency Rousseff has focused on heading state owned business with better qualified politicians, often females, and has increased female cabinet members to 25% (Amazons, 2012).

Entering as a VP of HR at the Hyatt in 2008, one Brazilian woman recalled being the only

female at executive council meetings. Since then, more females have been incorporated, and today she works daily with a high level sales director who is also a woman. She stresses that the amount of female applicants has “soared” (Amazons, 2012). As a result, women have experienced an increase in both financial independence and disposable income. Analysts predict the influx in working women will cause an increase in demand for consumer goods that are convenient and make daily chores less burdensome (Corpart, 2013). As the lives of Brazilian women become busier and their spending power increases, it is critical for brands to take note. These women are influential, and gaining their attention is steadily growing more important.

3.4 The Changing Roles of Women

4. RESEARCH PLAN

Objectives: -‐

Understand the history of Aussie and the 3MM product

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Evaluate all potential markets for entry into Latin America

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Choose most desirable market

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Understand the competitive landscape in chosen market

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Choose desirable target market

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Position Aussie 3MM for chosen market

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Develop further marketing goals and strategies

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Develop communication methods creative executions to reach target market

Strategies: -‐

Research current beauty and personal care trends in Latin America

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Complete PEST analyses of markets and choose the market with the most opportunity and relevance

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Complete SWOT analysis of Aussie in chosen market

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Research lifestyle and behavioral aspects of women using hair care products

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Determine their needs and wants

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Investigate media habits of target market

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Create plan that implements media usage, personal behavior, and the product as a solution for the target market’s needs

Hypotheses: -‐

There is a pre-‐established demand for Aussie 3MM in Brazil through online channels, meaning Brazil may be a great market to enter

-‐

Beauty is important to Latin American women, so the Aussie 3MM has great potential to fit into their lives

5 SWOT ANALYSIS

5. SWOT ANALYSIS STRENGTHS • • • • • •

Time saver (only 3 minutes) Low price Appealing coconut smell Pre-‐established brand awareness (coveted icon) Easy and simple to use Delivers great results (The majority of users say “it works”)

WEAKNESSES • • • •

OPPORTUNITIES • •

• •

• Product category growth over the past 5 years Distribution: specialist beauty retailers & e-‐commerce, adding the element of one-‐to-‐ • one personal touch Tailored products Conditioners and post-‐conditioners are very popular for women with treated/damaged/colored/dry hair Thirty-‐six percent of Brazil moms said they trusted sponsored content Latin women are searching for and trust online insights (tutorials, product reviews, and skin analysis technologies)

P&G has no experience with direct selling No eco-‐friendly process built into the Aussie brand Product benefits are not clearly highlighted in packaging No option for large-‐size packaging-‐rising trend in Brazil where consumers struggled through big economic downfall

THREATS Competition (Well established and hold a large market share) The availability of external “underground” channels (online) could be a roadblock to Aussie’s pricing strategy

3.4 The Changing Roles of Women

6. BRAZILIAN MARKET ANALYSIS Procter & Gamble’s lack of experience with direct selling distribution comes at a disadvantage in the Brazilian market, since this method is highly practiced and valued in the beauty and cosmetics sector among Brazilian consumers. The competitive advantage of direct selling is the one-‐to-‐one personal touch that allows sellers to advise their customers on the type of products they should and should not purchase. “Direct selling is done through personal relationships, and consumer behavior in Brazil is heavily influenced by recommendations from family and friends” (Bonifacio, 2014). On the other hand, Brazil has had a great increase in the use of e-‐commerce sites for purchasing beauty products, which is expected to keep rising in the upcoming years. Brazilian consumers are tech-‐ hungry, and they usually rely on technology for many parts of their lives. This has created a very strong desire for more digital services that offer a more dynamic and enjoyable experience. In fact, 74% of Brazilians wish that they could make all of their purchases online, numbers that are much more compelling than their American and British counterparts, 51% and 49%, respectively, (Digital Dopamine, n.d.). Brazil is also the only country in Latin America to crack the top 10 worldwide retail e-‐commerce markets according to eMarketer’s latest estimates of retail sales, in which 59% of the purchases were for beauty products (eMarketer, 2015). This provides Aussie with a great opportunity to develop online strategies for Brazilian consumers by creating a variety of digital platforms to make their purchase process easy, educational, interactive, and personal. Moreover, Brazilian women highly trust reviews and insights from beauty websites, which presents the opportunity to make collaborations with beauty bloggers, online influencers, and product reviewers that could help increase awareness of the 3MM product and the Aussie brand as a whole. Overall, the Brazilian beauty industry is a very attractive market in which Aussie can invest its 3 Minute Miracle Deep Conditioner. Brazil obtains the second position for the biggest hair care market in the world after the U.S., and the forecasted annual growth for the beauty and cosmetics sector over the next 5 years is 11% (Lourenco, S. 2015). Opportunities for new post-‐shampoo

6 BRAZILIAN MARKET ANALYSIS products are greatly increasing in Brazil; according to Mintel, more than one third of Brazilian consumers interviewed expressed that they look for hydrating and anti-‐frizz formulas in hair care products (Matthews, 2014). Aussie has the opportunity to launch the 3MM product in a market that has a promising future in the hair care sector, and would attract the large segment of Brazilian women who are seeking hydrating and smoothing benefits for their hair. On the other hand, Brazil’s beauty industry has faced a few challenges such as an increase in prices that is mainly due to the rise in competition, high investment, and the increase in the presence of direct sellers that have bypassed high distribution costs through wholesalers. Other issues include high taxes, infrastructure challenges that increase transportation costs, and high import costs that can be over 70% of total prices (Pomela, 2015). Many beauty brands that launch their products in the Brazilian market at a high cost have quickly become unaffordable to the majority of the population, causing these products to fail in their first years. This is an important fact that Aussie should take into consideration when establishing a price for the 3MM product.

3.4 The Changing Roles of Women

7. COMPETITOR ANALYSIS Just 20 years ago, the U.S., Western Europe, and Japan accounted for two-‐thirds of the world’s market for cosmetics, fragrances, and toiletries. In 2012, Brazil became the third-‐largest segment of the $308 billion global beauty market (Jones, 2012). According to Euromonitor, as of August 2013 in Brazil, the beauty and personal care market has seen significant growth rates despite inflation and the high per capita consumption in some categories. Specifically, hair care posted current value growth of 9%, reaching R$18.9 billion in 2013. Brazilian women have a great sense of dedication towards their hair and according to a 2012 study by IBOPE Intelligence, Brazilian women spent more than $7.7 billion on products, which represents nearly half of their total spend for personal care and beauty products (Ferreira, 2014). Considering the consumption of post-‐shampoo treatment products per household each year, Brazilian consumers purchase three times as much as US consumers, and four times more than the world average, according to IBOPE. With such devotion to hair, there are more than 3,000 brands of shampoo and conditioners on the Brazilian market. Brazilians’ natural propensity to experiment with different brands, has led to a low level of brand loyalty to hair care products amongst Brazilian women. Furthermore, there is a common belief among Brazilian women that hair performs better if shampoo and conditioner brands are changed regularly (Ferreira, 2014). To combat low brand loyalty, leading players have begun introducing large-‐sized packaging in which consumers are unlikely to need a new brand for several months. This also bodes well for consumers searching for a good value-‐for-‐money, an important factor as Brazil´s economic growth slows. To continue stimulating consumption, companies are investing in products with higher added value, offering multiple benefits in one product. The concept of “premiumization” is also gaining

7 COMPETITOR ANALYSIS more strength in beauty and personal care in Brazil. This trend of offering products with higher added value, with multiple benefits and superior performance, has attracted more and more consumers. The industry is increasingly moving towards this concept of investing in new products with premium positioning and superior results as a tool to attract consumers. Offering more intensive and tailored treatments, inspired by skin care, could be a key opportunity for marketers as innovation is crucial in the hair care battleground.

Although the forecast for beauty and personal care is optimistic for the coming years,

economic slowdown, inflation, and market saturation in various categories will begin to impact the industry more strongly in the future. Regardless, the passion of Brazilian consumers for beauty and personal care products, combined with investments in launches and innovation that is expected by the manufacturers, should guarantee at least moderately positive growth between 2013 and 2018 (Euromonitor, 2014).

7.1 Direct Competitors According to Wischhover (2014), Brazilians tend to trust foreign brands more and there is the culture that foreign products are much better than national ones. In terms of both product category and target audience, Proctor & Gamble’s brand, Pantene, has the potential to be Aussie’s biggest direct competitor. The Pantene collection provides a post-‐conditioning product similar to Aussie’s 3MM treatment, both of which boast time-‐saving benefits. In fact, not only Pantene, but almost every hair care brand currently produces products that focus on time-‐saving benefits (see Appendix B). Pantene is sold in a premium category of retail. Although the target audience is slightly different, Unilever´s TRESemmé and Procter & Gamble´s Wella Pro Series could be other direct competitors in terms of the country of origin. Performing well in the short-‐term, they both have been successfully associated with professional salon brands for home use in the Brazilian market. TRESemmé specifically has proven to be a big hit in Brazil. It used to be the leader in the hypermarkets and is widely perceived as an affordable premium brand 18

7.2 Indirect Competitors among Brazil´s lower-‐middle income consumers. According to Euromonitor, in 2013, Unilever Brasil had 40.7% of market share, L’Oréal 15.9% and P&G 9.3%.

7.2 Indirect Competitors Some ambitious local brands have been powerful threats to foreign companies, trying to enter the Brazilian beauty and personal care product market. Natura Cosméticos has been the Brazilian beauty giant for more than 30 years. They have been a strong brand built around natural, socially responsible and sustainable products (Penteado, 2011). Natura has been a leader in the beauty and personal care products market in Brazil since overtaking Unilever in 2004, holding 14% of the highly competitive market in 2010. Its 2010 net revenues of $2.8 billion rank it among the world’s top 20 beauty companies, and its $660 million in pre-‐tax profits represent a stunning margin of 24.5%, placing it among the most profitable in its category (Jones, 2012). There are two essential factors behind the success of Natura. First of all, they have patiently built a direct-‐sales network of more than one million independent, mainly female sales consultants, who perform door-‐to-‐door sales (Jones, 2012). Although such direct-‐selling networks are costly and time-‐consuming to establish because relationships have to be forged one by one, once in place, these networks allow a company to expand at low marginal costs even in times of economic adversity. In Natura’s case, their efforts were rewarded. Secondly, Natura emphasizes healthy relationships between the company and its customers, its customers and its million-‐plus sales consultants, the company and its suppliers, and, more broadly, society and the environment. In Brazil, the beauty and personal care product industry has been criticized for creating women’s insecurities, promoting racist stereotypes of beauty, instilling the fear of aging, and overselling the functional attributes of its products. Natura’s founders wanted to foster a company ethos and operating model based on the healthier relationships between all parties involved. Following this 19

7 COMPETITOR ANALYSIS ethos, Natura became a pioneer in the natural cosmetics market (Jones, 2012). Another strong local brand, Botica Comercial Farmacêutica’s O Boticário, is a potential competitor for Aussie. O Boticário continues to show strong growth driven by large investments in marketing such as TV commercials and print media. Price promotions offered for some specific categories such as fragrances also brought great results and attracted many consumers. Although primary business of these local competitors is not within the hair care product category, the companies do provide a variety of unique hair care products that act as indirect competition.

7.3 Price and Advertising 7.3.1 Price Range Price examples of each brand’s products that have similar attributes to Aussie’s 3MM:

Pantene

Trata E Repara Ampola 3 Minutes De Resgate

(R$10.00 -‐ R$15.00)

Wella

Brilliance Condicionador, Mascara Brilliance

(R$15.98, R$18.48)

TRESemmé Ampola de Tratamento Split Remedy TRESemmé

(R$17.00)

Natura

(R$ 36.80, R$13.90)

Oleo de Tratamento Reconstructor (Plant), Mascara de Tratamento Cor Intensa (Sou)

O Boticário Native Spa Mascara Capilar Ultra-‐Hidratante

(R$21.49)

7.3 Price and Advertising

7.3.2 Advertising (See Appendix 3) -‐

-‐

Pantene ●

Works with a local advertising agency, MatosGrey

●

Works with Brazilian art director & visual designer, Rafael Ribeiro

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Print Ad focus

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Celebrity endorsement (Gisele Bündchen)

TRESemmé ●

Experiential Marketing

●

Celebrity Endorsement (Nikki Reed, a “Twilight” star)

Wella ●

Works with a local partner, New Energy

●

Works with Brazilian art director & visual designer, Rafael Ribeiro

●

Print Ad focus

●

Created a hair scan mobile app for Wella Koleston

●

Celebrity Endorsement (XUXA, a Brazilian Television Presenter)

●

Online Adverting, #xuxamorena campaign -‐ “Transformation Dream” for Wella Koleston -‐

Challenge: Turning Koleston, in a short period, into the favorite brand of Brazilian Women

-‐

Solution: Transforming XUXA, the most famous blonde of Brazil, into the most famous brunette of Brazil. From long talks with her, the insight arose: the dream of being a brunette (and actually that’s her mother’s dream).

-‐

Natura ●

Working with a local agency, Taterka

●

“Truly Beautiful Women Campaign,” which featured ordinary women over 30.

O Boticário ●

Interactive Print Ad focus

Suave was intentionally excluded from our competitors since there are many other popular brands in the Brazilian market that more closely mirror Aussie as a brand.

8 TARGET MARKET

8. TARGET MARKET The target audience selected for the launch of the 3MM product in Latin America is Brazilian women, aged 25 to 35 with ranging hair types. Beauty is of high priority to these women, yet they also place value on education and their careers; they are inspired to be known and respected for something much more than their physical appearance. These women fall into Brazil’s Class B; this class generates an income above R$ 5,100, has completed a higher education, and is composed of professions such as directors and managers, as well as budding entrepreneurs (Novais, 2011). They are well aware of the shift in the status quo for Brazilian women, going from the expectation of women putting marriage and motherhood before a career, to women having opportunities and room for advancement in the workplace. Seeking empowerment, these women have decided to enter the workforce and because of their talent and dedication, have achieved mid-‐level positions. However, these women still resist moving upwards in their work because they worry that they would have to sacrifice other important aspects in their lives such as family, friends, hobbies, and time set aside for relaxation, often at the beach. As Hofstede’s Model of Cultural Dimensions suggests, Brazil is a very collectivist country, highly valuing the extended family and collaboration amongst groups (The Hofstede Centre, 2015). Moreover, it is very probable that a typical woman in our target market forms part of a large family that is very close, supports one another, and highly values the time spent together. This woman also looks up to her mother as her role model, and although she is expected to follow in her footsteps, this woman wishes to create her own path in life. She desires to thrive in a world that she created for herself and her loved ones by succeeding in her career while still maintaining her domestic duties, taking care of her family, spending time with her friends, staying active, and enjoying some down time when she can catch it. This independent, confident, and optimistic woman does everything in her power to succeed in all her roles as a woman, but above all else, she will never sacrifice her beauty, as that is a part of her core identity.

7.3 Price and Advertising Even though these women aspire to tackle all of their duties in a flawless manner, they are realistic. They understand that it is near impossible to get everything done just the way they wish. These women are always looking for products that ease the stress and full schedule that they live by on a daily basis. They aspire to be their best selves in all aspects of their lives, for everyone that is a part of their lives.

9. POSITIONING Great hair for great women Aussie’s 3 Minute Miracle Moist deep conditioning treatment is packed with irresistibly effective coconut scented moisture. Every woman wants to be beautiful, but not every woman has spare time for excess hair care. As the Brazilian expression “jeitinho brasileiro” goes, resilience and resourcefulness are a way of life for Brazilians; they find an alternative “way” or shortcut to get the necessities (Living Well, 2014). With Aussie 3MM, even a busy woman with a full schedule can find time to treat her hair the way she should. She may not have a full 30 minutes to perform a traditional deep conditioning treatment, but she does have time for a 3 minute treatment. Aussie 3MM is not just a shortcut to well-‐moisturized and healthy hair, but it is a wise choice for women seeking natural beauty. Other conditioners communicate hair optimization, but Aussie optimizes hair and also empowers the women using the product. Aussie brings the best ingredients from the beaches of Australia to the women who need them most. Aussie allows great hair for great women.

11 MARKETING STRATEGIES

10. MARKETING OBJECTIVES 1. Achieve a 2% hold in market share a. Improve P&G’s overall market share from 11% to 13% 2. Have Aussie fall within the top 5 brands of “post conditioning products” for Brazilians in our target market within 1 year of entering the market a. Unaided recall b. Increase of overall brand awareness

11. MARKETING STRATEGIES 11.1 Introduction to Market In order to make an effective entrance into the Brazilian market, Aussie must make salonists and hair enthusiasts aware of their brand and product. Building buzz and raising awareness are important in driving demand prior to market entry. It is recommended that Aussie places a two-‐ page spread in the leaflet that is distributed to attendees of Brazil’s largest hair exposition, Hair Brasil, prior to the event. Readers flipping through to see which hair care brands will be in attendance will find an Aussie ad and short editorial describing the beachy brand and its entry into the Brazilian market. The ads will ask salonists if they are “Ready for #SunSoakedSuccess?”(See Appendix D for examples). Next, it is recommended that Aussie attends one of São Paulo’s largest hair expositions, Hair Brasil. This exposition is scheduled to take place from April 16-‐19, 2016. This fashion forward forum offers the exclusive presence of of hair treatment products, services, equipment, essentials, and more. It is a “widely recognized event that provides a diverse platform to the latest innovations and technologies of this industry” (Hair Brasil, 2015). This exposition draws the attention of salon owners throughout the country, and ranges from salon entrepreneurs to professionals. Past attendance at this exposition has been up to 80,000 visitors from Brazil, Latin America, and other countries around the world. It hosts on average 900 brand suppliers, and allows them to set up

11.2 Brand Reach/Impressions booths to distribute products and allow attendees to try certain products (Hair Brasil, 2012). As of 2015, the exposition also offers a Business Roundtable that brings together the Beauty Care Brazil organization and the U.S. Department of Commerce in order to bring buyers and distributors together (Hair Brasil, 2015). This would be a great chance for P&G’s distributors to work with buyers in Brazil and throughout Latin America in the future. After Aussie is established in São Paulo, this would be a great way to expand the brand in Brazil (See Appendix E for examples of previous Hair Brasil expositions). Setting up an Aussie booth would be a great way for Aussie to make a presence at the exposition and fully portray its brand image and relevance to Brazilian hair care. At the exposition, Aussie would distribute free bottles of Aussie 3MM to salon owners in exchange for their contact information. They will also give away one ounce sample bottles of Aussie 3MM that salonsists can give to clients for at-‐home trial and increased brand impressions for Aussie. This is a way to build a network for future distribution to interested salonists. It is recommended that Aussie focuses on small salon owners, known as “in-‐home salonists” to build rapport with salon owners on a personal level. In this fashion, Aussie would be able to differentiate itself from its domestic and international competitors who access their customers via direct selling and distribution through professional salons. Aussie should supply in-‐home salonists with enough 3MM product to last three months, at no cost to the salonists.

11.2 Brand Reach/Impressions Estimating that 50% of visitors at Hair Brasil stop by the Aussie booth, and at least 30% of these salonists sign up for free Aussie samples, this accumulates to a direct reach of 12,000 salonists. As our primary research shows, one third of urban Brazilian women are customers at in-‐home salons at least once a month. Aussie would have the potential to spread brand awareness to 1.9 million women within São Paulo, which is one third of the 5.7 million women currently living there. Additional brand awareness can be generated through a social media push during the Brasil Hair 25

11 MARKETING STRATEGIES exposition. Aussie can announce their arrival and presence at the exposition through their main social networks, Facebook, Twitter, and Instagram, and encourage visitors at the Aussie booth to take pictures with the 3MM products and utilize the #SunSoakedSuccess hashtag among others. For the first three months, Aussie should continue to supply in-‐home salons throughout São Paulo with the 3MM product in full and trial sizes, but beginning in August, the distribution system should then be switched over to supermarkets and convenience stores. The salons will receive emails containing coupons for 3MM at reduced prices, but for the salon clients, they can begin purchasing the Aussie 3MM product on their own. This time frame allows enough time for brand awareness to increase and for buzz about the product to escalate to a level that will drive sales. The one ounce trial bottles of 3MM can continue to be distributed to in-‐home salons, centering around times such as holidays and hotter summer months (December through March). This strategy will encourage trial of the 3MM product, increase awareness, build credibility and the sense of exclusivity, and above all drive demand for the product. It also assists in building relationships between salonists, clients, and the Aussie brand.

11.3 Distribution It is recommended that Aussie 3MM is distributed through supermarkets and pharmacies with attached convenience stores. The first reason is that the selected target audience, working women ages 25-‐40, frequently shops in these types of locations (Euromonitor International, 2011). This would allow these women to pick up Aussie 3MM that they have previously tried in an in-‐home salon, or have heard of through advertising and word-‐of-‐mouth. As the women’s schedules are busy, they look for efficient ways in which to buy products. This emphasizes another factor for Aussie’s distribution, which is convenience. If these targeted women are already shopping there, it is easy for them to pick up hair products like Aussie 3MM while they are also doing their grocery shopping. There is also a higher tendency for shoppers to make an impulse purchase for hair products while passing products in store aisles. 26

11.4 Place Aussie is encouraged to take a different route in distribution than local Brazilian beauty companies such as Natura and O Boticário, who focus on direct door-‐to-‐door selling and sales through high-‐end salons (Jones, 2012). This not only sets Aussie apart as a sought after western brand, but it coincides well with P&G’s distribution and sales experience with its other brand, Pantene.

11.4 Place The recommended place to begin distribution is in São Paulo, one of the fastest growing beauty markets in the world (DS Healthcare Group, 2014). The same location as the Hair Brasil exposition, it is a hub for in-‐home beauty salons. “There are 342,000 salons scattered throughout the country, with a heavy concentration in the southeast, where it is possible to see as many as 10 salons in a single city block” (Ferreira, 2014). São Paulo also offers great potential with distribution to Brazilian women in Class B through Drogaria Iguatemi, the most well-‐known affluent retail drug store chain in São Paulo. As the leading high-‐end pharmacy and beauty product carrier, Drogaria Iguatemi offers an ideal retail distribution channel to launch Aussie’s 3MM product line (Drogaria Iguatemi, 2015). Proctor & Gamble currently has an office in Brazil, and has plans to build a manufacturing plant within the country in the coming years (EMIS, 2015). This manufacturing effort was encouraged by growing profitability in the Brazilian market, and will help to localize products by being closer to where the main consumers are (Barreto, 2013). There must be collaboration between P&G U.S. and P&G Latin America in order to begin manufacturing Aussie 3MM within Brazil, where there is great opportunity. It is also important to recognize the importance of beach culture in São Paulo; a city with access to many beaches, but a city center located slightly off the coast, making it attractive for Aussie to bring “the beach” to residents of São Paulo via their 3MM product, “beach in a bottle”.

12 COMMUNICATION & CREATIVE OBJECTIVES

11.5 Price Aussie 3MM should be priced at a premium level due to the current demand for the product via underground online channels. Lower-‐end post-‐conditioning products are selling for under R$10, while high-‐end products are on the market for as much as R$38 (Ribeiro, 2014). The recommended price for Aussie 3MM in Brazil is R$15.00; a price that still values Aussie at a premium, but also recognizes that the intended target audience has both “beauty and brains”. She cares about beautiful hair, therefore she wants a product that is guaranteed to work, but she is looking to pay a lower price than what the woman who obsesses over her hair pays. Our woman is looking for a “steal”.

12. COMMUNICATION & CREATIVE OBJECTIVES 1. Increase online traffic to Aussie’s website by 20% after first year a. Use comparison to past year’s data 2. Increase Aussie’s social media following by 10% within 1 year of entering the market a. Increase consumer engagement and digital brand interaction 3. Build and sustain a relationship with the target audience by providing consistent brand experiences 4. Create a desired brand perception in the target consumers’ minds to ensure demand for Aussie 3MM

13.2 Below the Line

13. COMMUNICATION & CREATIVE STRATEGIES 13.1 Above the Line 13.1.1 Traditional -‐ Television

The XXXI Olympic Games is scheduled to be held in Rio de Janeiro, Brazil in August 2016. As beach volleyball is extremely popular in Brazil, it is a great opportunity for Aussie 3MM to engage with Brazil’s Olympic volleyball team throughout the competition. Women’s beach volleyball aligns well with the Aussie brand, with its focus on the beach lifestyle and women achieving success at a high level. Aussie has the potential to increase its brand awareness during times of high TV viewership, such as the Olympics. The viewership during these volleyball matches is predicted to be high as the team has been very successful in the previous two Olympics, winning gold in both the 2008 Summer Olympics in Beijing and the 2012 Summer Olympics in London. It is recommended that Aussie buy a 30 second TV spot at the halftime break of two of Brazil’s matches. Aussie’s spot should incorporate the beach lifestyle, but from a perspective that shows how women are able to “use” the beach; specifically the volleyball players who have taken the Brazilian beaches and turned them into the ground for their own #SunSoakedSuccess. Aussie should show its support for these women, just like they support working women throughout Brazil.

13.2 Below the Line 13.2.1 Web

In order to promote the Aussie brand specifically in the Brazilian market, it is recommended that Aussie create an E-‐commerce website specifically for Brazil. The website will be written entirely in Portuguese, as that is the official language of Brazil, and is spoken by 99% of the Brazilian population. The frame and the content of the website can follow Pantene or Tumblr’s model offering different images, videos, and content spread throughout the homepage. Aussie can also link sales to local stores that will then ship Aussie 3MM direct to consumers. This is styled after Aussie’s U.S. E-‐commerce platform that is currently a success for Aussie. Besides selling 3MM products on the E-‐commerce website, Aussie can also focus on building and maintaining consumer brand

13 COMMUNICATION & CREATIVE STRATEGIES relationships. They can style engaging and interactive content in formats such as “get the style you love” or “hair truth”, which will attract more Brazilian women to find their favorite hairstyle on the Aussie website. Aussie can also post news about current events sponsored by Aussie, and all the ways in which Aussie is being used and talked about by Brazilian consumers. There should be direct links to Aussie’s social media platforms so consumers can more easily engage in social conversations happening locally and around the world. When Wella released its pro series collection, they launched an unique Wella Academy Campaign. They turned consumers’ computers into digital dressing tables. Using the computer camera as a mirror, consumers were able to make hairstyles suggested in step by step videos (See Appendix F). Aussie could combine this idea with their Easy Hair Guide videos to further enhance their website interaction.

13.2.2 Social -‐ Facebook, Twitter, Instagram

Within the social atmosphere, it is critical to make a splash upon entry. In order to be unique and remain authentic to the Aussie brand image, Aussie is recommended to introduce the epitome of #SunSoakedSuccess through a character named Amelia. Amelia is to Aussie as Flo is to Progressive; a quirky woman on a mission, baring flawless hair and a go-‐getter attitude. Amelia, a native Brazilian, is São Paulo’s leading beach environmentalist. She works tirelessly to ensure patrons of the sandy shore are having the best experience possible providing her audience with quick wit and cheesey humor, all in true Brazilian fashion. Different from the celebrity endorsements of competitors, Amelia represents the motivated woman who works tirelessly to empower the working ladies who long for the solace of the beach. Amelia’s presence will take various media forms, from 15-‐30 seconds videos, to still lifes, and even an appearance as the protagonist of Aussie’s Olympic TV commercial spot. With $500,000 dedicated to production and promoting Aussie’s content, Amelia will truly maximize Aussie’s social engagement.

13.2 Below the Line

Example Narratives: •

Amelia, sporting business casual and flowing locks, manages a crew of sand art sculpturists. -‐-‐ “Detail folks, keep it smooth! Us ladies deserve to be beach blown away by this masterpiece” “Im not yelling, just caring loudly!” -‐-‐ The workers pull away and a sand sculpture of 3MM is revealed. Amelia makes a check on the clipboard, stares at the camera and winks ‘Now thats #SunSoakedSuccess.’ Aussie logo stamps on. o

Post Text: The big reveal is coming to a store near you in three days. Get ready for smooth, restored hair without the fuss, so you can conquer your to-‐do’s.

•

Amelia stands before the Olympic beach volleyball court explaining how last year’s beach volleyball tournaments simply raked the sand before the games. But with the Olympics they kicked it up a notch and hired Amelia. Now Amelia has attached laser pointers that take into account sand depth, stone size, ensuring the perfectly manicured playing arena.

“Beauty and brains -‐ Now that’s #SunSoakedSuccess” Aussie logo stamps on.

13.2.3 Social -‐ YouTube

Aussie’s Amelia interviews the #SunSoakedSuccess women of Brazil; This four part series, set on the coasts of São Paulo, highlights women making strides for female leadership. The content revolves around the presence of femininity in the workplace, personal perceptions of beauty, and balancing life at home. Suggested interviews include Anarkia Boladona (explained in OOH), Leila Velez (explained in events), Maria Carolina Cintra, and Gabriella Cezar. Maria Carolina Cintra -‐ Maria, a native Brazilian, is the founder and Innovation Director of Kingo Labs. Kingo Labs specializes in building products for social networks that can be customized for specific companies. Cintra also created the association “Subversive Ideas Lab” which focuses on supporting women entrepreneurs through mentoring, and inspiring girls to launch their own

13 COMMUNICATION & CREATIVE STRATEGIES companies (Hiem, 2011). Gabriella Cezar -‐ Cezar began her career as a stem cell researcher but is now the director of the life sciences merchant bank, Burrill & Company, that launched in Brazil. Cezar is also launching a Belle Capital Brazil fund that focuses on startups that have a “female founder, owner and/or commitment to recruiting top female talent to C-‐Suite and Boards” (Hiem, 2011).

13.3 Public Relations/Community Outreach

13.3 Public Relations/Community Outreach 13.3.1 Out of Home

In order to further project Aussie brand awareness, induct trial, and provide empowering branded content, Aussie should collaborate with Brazilian graffiti artist and feminist activist Anarkia Boladona. Her final piece will be a design that depicts the Brazilian women’s ties to the beach and ambitions for the future. #SunSoakedSuccess will be included in the design and press releases administered to local newspapers will emphasize Aussie’s collaboration with Anarkia Boladona. An interview with her will also be conducted and included within the #SunSoakedSuccess YouTube series. The collaboration with Anarkia Boladona is critical to reinforce Aussie’s mission of empowering females. In 2012, Newsweek named Boladona one of the “150 that Shake Up The World” (Walters, 2012). Boladona states her mission, “I want to change women’s minds about their abilities, about our place in the world. There is a misconceived notion that women shouldn’t do some of the things that men do. For example, some people are not willing to accept a woman scaling a building to paint a pichação. For me this made no sense. Women can be whatever they want” (Walters, 2012).

13.3.2 Events

In July, directly before the Summer Olympics, Aussie will sponsor a networking event for Brazil’s female entrepreneurs. The event titled, “Sun Soaked Success: Building Your Business In Brazil”, will host 200 female small and large business owners. Taking place within a tented, beach front area of São Paulo, the program will include two guest speakers, an all-‐female band, catered hors-‐d'oeuvres (from an all female company), a meet and greet with Brazil’s olympic volleyball team, and a beauty area where women can try 3MM and have access to a complimentary hair stylist. Aussie’s branding will be highly present throughout the event, from branded tents and information packets to using #SunSoakedSuccess when sharing about the event within the social atmosphere. Images shared to Instagram, Twitter, and Facebook will be featured on the central

13 COMMUNICATION & CREATIVE STRATEGIES screen during networking break outs. Speakers, Gayle Lemmon and Leila Velez, will discuss the importance of female leadership and provide advice and strategies for advancing their business. Select guests will also receive tickets, complimentary of Aussie, to attend one of the Brazilian women’s Olympic volleyball matches. About the keynote speakers: Gayle Lemmon -‐ The opener for TedxWomen in 2012, Lemmon is a Harvard MBA graduate and former ABC reporter. She focuses on sharing the stories of female entrepreneurs across the globe. Lemmon will share inspiring stories of women who have succeeded in some of the toughest business environments and have created jobs against all obstacles (Gayle, 2012). Leila Velez -‐ A Brazilian native and CEO of Beleza Natura, a beauty salon chain, Velez has come a long way from her first job at McDonalds. Beleza Natura currently has twelve locations across Brazil and sees up to 87,000 clients per month. The salon focuses on serving the 70% of Brazilian women who are mixed race and have coarser hair. Her business prioritizes sustainability and empowers their employees to pursue higher education through financial grants (Ruvolo, 2012). Hosting “Sun Soaked Success: Building a Business in Brazil” will provide Aussie with regional and global coverage, as well as an influx in social engagement. In 2011 Dell hosted a similar event, although smaller in size and spunk, and received global coverage from US Today and Forbes. Their hashtag reached over 16 million Twitter users (Solutions, 2011). On a smaller scale Aussie will also sponsor an event in January in support of ‘Subversive Ideas Lab.’ In this scenario Aussie will provide free product samples and utilize their branded tents to bring the female entrepreneur networking program to the shoreline.

13.3 Public Relations/Community Outreach

14. IMC MIX The integrated marketing communication charts below summarize each of the different elements used within the marketing communications plan that encompasses Aussie’s introduction into the Latin American Market. The various tactics have been divided into the following: ●

Above the line techniques: encompassing the traditional advertising channels

●

Below the line techniques: focusing on the digital realm

●

Public relations: generating word-‐of-‐mouth brand advocation through community based programs.

Each IMC strategy reinforces the connection that Aussie provides “great hair for great women” via their method of #SunSoakedSuccess. Aussie 3MM allows women to restore their hair in a timely fashion so they can conquer the other aspects of their lives. The visual and copy are implemented based on graphic and content standards depicting a cohesive tone across all mediums. The communication efforts are designed to stimulate brand awareness, induce trial, and develop meaningful relationships with the target audience through branded content and experiences. The tools to accomplish these goals include: ● ● ● ● ● ● ●

Television Print Website (E-‐commerce) Social Media Out of Home Events Sampling Integrated Marketing Communications Summary Chart: Above the Line

MEDIA Television

JUSTIFICATION Television is the most predominant, and effective, form of traditional media within Brazil. Brazilians watch 4.5 hours of TV per day during the week and 4.25 hours per day during weekends, with 73% of Brazilians watching TV everyday (Almeida, 2015). While an expensive tactic, Aussie’s presence within this space is a key component in communicating the brand’s end to end consumer benefits and delivering a call to action for interested consumers to

14 IMC MIX

further interact with the brand. B2C Print

In Aussie’s introductory phase, the print channel will communicate Aussie’s presence at the Brasil Hair exposition. The ads will focus on capturing the curiosity of those attending, resulting in initial demand for the product within the home salon owner audience.

Integrated Marketing Communications Summary Chart: Below the Line MEDIA

JUSTIFICATION

Website

In Brazil beauty products are one of the top consumer goods that are purchased through E-‐commerce (Kligin, 2014), thus it is integral that Aussie creates an innovative website that entices purchasing and social engagement.

Social Media -‐-‐

Brazilian's social nature and instant adaptation to social platforms make these IMC channels a high priority for engaging with the target audience. Opportunities to customize messages based on education, occupation, location, and interest provide a great opportunity for positive interactions.

Facebook, Twitter, Instagram

Brazil has 65 million Facebook users, with the majority of users comprising of the middle, upper middle and affluent class (Brazil Health, 2014). In one study, 36% of Brazilian moms said they trusted sponsored content and 76% of Brazilian moms said they would have a positive perception of an advertiser utilizing native content (Social Media, 2014). Also, 77% of Brazilian social media users have a positive attitude toward shopping and buying on social networks (Arno, 2013). The positive perception of branded content and Brazilian's willingness to engage in E-‐commerce on social channels will allow Aussie to effectively and efficiently penetrate Latin America. Social Media -‐-‐ Youtube

YouTube offers the opportunity to interact with target consumers through a channel that is digitally innovative and combines visual and auditory senses. The YouTube series encourages the target consumer to preview Aussie as a brand that supports her in being a well rounded woman, further increasing Aussie’s brand equity.

13.3 Public Relations/Community Outreach Integrated Marketing Communications Summary Chart: Public Relations/Community Outreach MEDIA Out of Home

Events

B2C Sampling

JUSTIFICATION Collaborating with the well known graffiti artist and feminist activist, Anarkia Boladona, allows Aussie to align itself with a cause that supports female rights. This issue is top of mind for the target audience due to consistent coverage regarding the tremendous gender wage gap in Brazil. This communication tactic will also generate local media coverage furthering Aussie’s awareness and positive brand associations. Sponsorship at conferences and female business networking events allows Aussie to directly interact with their target consumer. In these channels Aussie can actively portray the product’s ability to bring the restorative qualities of the beach to their lives, allowing women to be leaders in the workforce while feeling confident about their smooth, frizz-‐free hair. In the introductory phase, in-‐home salon owners provide one ounce samples to clients to generate interest and demand before entering the mass market.

15. MEDIA OBJECTIVES & PLAN Aussie’s effective implementation into the Brazilian market revolves around a media placement strategy that curates initial demand, ensures awareness, and communicates Aussie’s functional and emotional benefits through a flighting placement schedule.

16 BUDGET & FINANCIAL FORECASTS

16. BUDGET & FINANCIAL FORECASTS Given a $3 million budget, it is recommended that Aussie uses the majority of its spending on TV advertising and community outreach. These are two ways in which Aussie can reach Brazilians in meaningful ways in order to make memorable impressions in the minds of consumers. The detailed breakdown of the budget is as follows:

13.3 Public Relations/Community Outreach

17. EVALUATION In order to evaluate which areas of the campaign attributed to success and which can be improved for the future, it is vital that there are measurement mechanisms implemented from launch to commencement. Baseline, mid-‐campaign, and post measurements will be conducted to ensure Aussie’s campaign is on route to meet the pre-‐set marketing, communication and creative objectives. A digital survey will be conducted to analyze the pre and post campaign ability to name Aussie, without aid, when listing post-‐conditioning products. Sales revenues will be analyzed to determine Aussie’s ability to acquire a 2% increase in Proctor & Gamble’s market share. Web analytics, social conversation/engagement, event attendance, and an estimation of reach based on viewership will also serve as key metrics in determining Aussie’s ability to drive sales of 3MM and stimulate interest through branded content and experiences.

18. PRODUCT REVIEWS & RECOMMENDATIONS The Aussie 3 Minute Miracle Moist Deep Conditioner has been a great success in the U.S. market. It has revolutionized the hair care industry by offering women an intense conditioning treatment for their hair that can be achieved in less than 3 minutes. Even beauty experts have commended the product, voting Aussie 3MM as the 2012 Best of Beauty winner by Allure Magazine and the 2013 Glammies Winner by Glamour Magazine’s “Reader’s Choice Awards”. In conducting primary research, our team decided to use the 3MM product for one week in order to test out its quality and review our overall experience. Even though we each have different hair types and lengths, we surprisingly had very similar results. The first thing each of us noticed when using the product is how easy it is to use, followed by the wonderful smell of coconut that immediately transported us to the tropics and truly gave us a sense of relaxation. Additionally, after rinsing out the product we felt our hair was very soft and much more manageable, which allowed

18 PRODUCT REVIEWS & RECOMMENDATIONS us to trust that the product actually works. After concluding our personal experiences with the 3MM product, we proceeded to conduct secondary research by analyzing online reviews in Aussie’s website and Amazon.com. On Aussie’s U.S. website, the majority of reviews posted are very positive, with consumers expressing how much they love the product and how willing they are to continue purchasing it. The emerging themes throughout were the ease of use, low price point, and the great quality of the product, which led the majority of the online reviewers to recommend it. On the other hand, Amazon has become an important platform for 3MM because it has allowed women from all over the world to have access to it, especially in Brazil where women are creating their own online stores just to distribute this product in the Brazilian market. The Amazon website concluded that this product has a rating of 4.5 out of 5 stars from a total of 675 customer reviews, where 495 of the users gave the product 5 stars. Aside from the reviewers that expressed their love for the product, there was a great number of consumers that wrote about their concern for the product’s newest formula. For example, a woman with fine and curly hair said, “This formula doesn’t work well for me. It doesn’t smooth my frizz, it doesn’t seem much more hydrating than a normal conditioner, and I haven’t seen any impressive results since starting it”. There were many reviews that mentioned a change in the formula but consumers seemed to prefer the original one, which is definitely something that Aussie should take into consideration in the research and development of future products. In order to accommodate Brazilians’ hair types we suggest that Aussie first launches Aussie 3MM Moist, the traditional “go-‐to” product for customers seeking deep-‐conditioning moisture. After the launch of this product in Brazil is evaluated and proven to be successful, we then recommend adding 3MM Color and 3MM Smooth to the shelves in Brazilian grocery stores and pharmacies. Of the 3MM line we see these SKUs being the most relevant to Brazilians hair needs, as they often bleach, color, and chemically treat their hair in hopes of de-‐frizzing it (Ferreira, 2014). In terms of the packaging, Aussie’s 3MM Moist product has been very well accepted by 40

13.3 Public Relations/Community Outreach consumers in Brazil who have been able to try it, either from online stores or on their visits abroad. Through several interviews with Brazilian women, it was confirms that Brazilians tend to perceive North American and European products as prestigious and trustworthy compared to the local ones. Because of this, we recommend that Aussie maintains their product labeling in English. Additionally, a recent study by UBET shows that 81% of Brazilians are concerned about the origin of natural ingredients that are used to manufacture cosmetics (Ferreira, 2014). Knowing how Brazilian women seek many benefits from their products, we also recommend that the packaging is slightly adapted to simulate the UK version of the 3MM (as shown in Appendix G), where the main benefits and exotic ingredients that differentiate Aussie products are highlighted on the front of the bottle.

19. CONCLUSION Based upon the proposed entry of Aussie 3MM into the Brazilian market, Aussie is ready to implement true #SunSoakedSuccess. The marketing, communication, and creative strategies recommended in this plans book provide a comprehensive outline for full market entry. The product launch in Brazil has the potential to do more than moisturize hair, but also positively affect the lives of women throughout the country. This launch, once successful in São Paulo, has all the ingredients to make an even larger splash in other markets throughout Latin America in the near future.

20 APPENDICES

20. APPENDICES 20.1 Appendix A

20.2 Appendix B

Pantene

Dove

TRESemmé

Head & Shoulders

Garnier

Embelleze

20 APPENDICES

20.3 Appendix C 20.3.1 Pantene

The tiny, barely readable circle of copy near the model's right ear reads, "Make sure your hair is the second thing he looks at."

20.3 Appendix C

Pantene: Gisele

20 APPENDICES

20.3.2 TRESemmé

20.3 Appendix C

20.3.3 Wella

For Wella Koleston (Online Advert and Celebrity Endorsement, XUXA)

20 APPENDICES

Hair Scan Mobile App

20.3 Appendix C

20.3.4 O Boticário

20 APPENDICES

20.4 Appendix D

20.5 Appendix E

20 APPENDICES

20.6 Appendix F

20.7 Appendix G

21 References

21. References Almeida, Bruno. "10 Media Must-‐Knows for Planners Targeting Brazil." Latin Link. Us Media Consulting, 23 Jan. 2015. Web. http://latinlink.usmediaconsulting.com/2015/01/10-‐media-‐ must-‐knows-‐for-‐planners-‐targeting-‐brazil/ "Amazons at Work." The Economist. The Economist Newspaper, 30 June 2012. Web. 13 May 2015. http://www.economist.com/node/21557799 Arno, Christian. "Brazil: A Social Media Marketers&#039; Gold Mine." Social Media Today. Social Media Today, 05 Apr. 2013. Web. 13 May 2015. http://www.socialmediatoday.com/content/brazil-‐social-‐media-‐marketers-‐gold-‐mine Barreto, 2013. Brazilophiles. Proctor & Gamble expanding in Brazil. Retreived from http://www.brazilophiles.com/2013/03/19/procter-‐gamble-‐expanding-‐in-‐brazil/ Bonifacio, F. (2014). Direct sales channel grows alongside eCommerce. Retrieved May 13, 2015, from http://www.brazilbeautynews.com/direct-‐sales-‐channel-‐grows-‐alongside-‐ ecommerce,120 "Brazilian Health & Beauty Brands Adopting Social Media to Build Brand Loyalty; Expected to Spend US$20.2 Million in 2014." Socintel360, 2 May 2014. Web. http://www.socintel360.com/brazilian-‐health-‐amp-‐beauty-‐brands-‐adopting-‐social-‐media-‐ to-‐build-‐brand-‐loyalty-‐expected-‐to-‐spend-‐us202-‐million-‐in-‐2014/18/ Cheryl Wischhover. (2014, June 16). Brazilian Women And Their Hair: Local Secrets Looking Like Gisele. Fashionista. Retrieved on May 13, 2015 from http://fashionista.com/2014/06/brazilian-‐hair-‐care Claudia Penteado. (2011). Brazil's Natura Building Global Brand Power. Advertising Age. Retrieved on May 13, 2015 from http://adage.com/article/global-‐news/brazilian-‐ cosmetic-‐company-‐natura-‐building-‐brand-‐globally/228143/ Corpart, Guillaume. "The Latin American Consumer of 2020." Americas Market Intelligence.

20.7 Appendix G Americas Market Intelligence, 2013. Web. 09 May 2015. http://americasmi.com/en_US/expertise/articles-‐trends/page/the-‐latin-‐american-‐ consumer-‐of-‐2020 Daniela Ferreira. (2014). Brazil Dominates Hair Care In Latin America. happi. Retrieved on May 13, 2015 from http://www.happi.com/issues/2014-‐01-‐01/view_latin-‐ america-‐news/brazil-‐dominates-‐hair-‐care-‐in-‐latin-‐america/ Digital Dopamine: 2015 Global Digital Marketing Report from Razorfish (n.d.). Retrieved May 14, 2015, from http://www.razorfish.com/binaries/content/assets/ideas/digitaldopaminereport2015.pdf Drogaria Iguatemi, 2015. Retrieved from http://www.drogariaiguatemi.com.br/ DS Healthcare Group, 2014. Retrieved from http://globenewswire.com/news-‐ release/2014/04/10/626224/10076303/en/DS-‐Healthcare-‐Group-‐to-‐Roll-‐Out-‐Products-‐ in-‐Sao-‐Paulo-‐the-‐Largest-‐City-‐in-‐Brazil-‐s-‐46-‐Billion-‐Beauty-‐Market.html eMarketer, 2015. Brazil Ranks No. 10 for Retail Ecommerce Sales Worldwide Retrieved May 14, 2015, from http://www.emarketer.com/Article/Brazil-‐Ranks-‐No-‐10-‐Retail-‐Ecommerce-‐ Sales-‐Worldwide/1011804 EMIS, 2015. A Euromoney Institutional Investor Company. Proctor & Gamble do Brasil S.A. (Brazil). Retrieved from http://www.securities.com/php/company-‐ profile/BR/Procter___Gamble_do_Brasil_SA_en_1153154.html Euromonitor International, 2014. Beauty and Personal Care in Brazil. Retrieve on May 13, 2015 from http://www.euromonitor.com/beauty-‐and-‐personal-‐care-‐in-‐ brazil/report Euromonitor International, 2011. Brazil: Cosmetics, Fragrances & Toiletries Market. Retrieved from http://static1.squarespace.com/static/54174114e4b0bec2d7efcf78/t/543422bde4b0b9af e43985d8/1412702909570/Astor+Group+-‐ 55

21 References Brazilian+Cosmetics%2C+Fragrances%2C+Toiletries+Market.pdf Euromonitor International, 2014. Hair Care in Brazil. Retrieved on May 13, 2015 from http://www.euromonitor.com/hair-‐care-‐in-‐brazil/report Ezequiel, Lara. "How Brazil's Women Are Rising to the Top." The Huffington Post. TheHuffingtonPost.com Inc., 16 Sept. 2013. Web. 13 May 2015. http://www.huffingtonpost.ca/girls-‐twenty/brazil-‐women_b_4102438.html Ferreira, D. (2014). Beauty is a Natural Throughout Brazil. Retrieved May 12, 2015, from http://www.happi.com/issues/2014-‐03-‐01/view_latin-‐america-‐news/beauty-‐is-‐a-‐natural-‐ throughout-‐brazil/ Garcia-‐Navarro, 2014. NPR. Which place is more sexist: The Middle East or Latin America? Retrieved from http://www.npr.org/blogs/parallels/2014/03/11/289058115/which-‐ place-‐is-‐more-‐sexist-‐the-‐middle-‐east-‐or-‐latin-‐america Garcia-‐Navarro & Chalk, 2014. NPR. Plastic Rebirth. Retrieved from http://apps.npr.org/lookatthis/posts/plastic/ "Gayle Tzemach Lemmon”, 2012. TedxTalks. Ted Conferences LLC. Retrieved from https://www.ted.com/speakers/gayle_tzemach_lemmon Geoffrey Jones. (2012,). The Growth Opportunity That Lies Next Door. Harvard Business Review. Retrieved on May 13, 2015 from https://hbr.org/2012/07/the-‐growth-‐ opportunity-‐that-‐lies-‐next-‐door Gomey, Cynthia. "Brazil's Girl Power." National Geographic. National Geographic Society, Sept. 2011. Web. 12 May 2015. http://ngm.nationalgeographic.com/2011/09/girl-‐power/gorney-‐ text/2 “Hair Brasil”, 2015. Retrieved from http://10times.com/hair-‐brasil “Hair Brasil”, 2012. Retrieved from http://10times.com/hair-‐brasil Heim, Anna. "Latin American Startups: 10 Women to Watch -‐ TNW Latin America." TNW Network. 56

20.7 Appendix G The Next Web Inc., 12 June 2011. Web. 15 May 2015. http://thenextweb.com/la/2011/06/12/latin-‐american-‐startups-‐10-‐women-‐to-‐watch/ Laporte, 2014. http://news.in-‐cosmetics.com/2014/02/booming-‐brazil-‐the-‐3rd-‐bastion-‐of-‐the-‐ beauty-‐industry/ Living Well, 2014. Retrieved from http://www.huffingtonpost.com/2014/01/28/what-‐brazil-‐can-‐ teach-‐the_0_n_4662253.html Lourenco, S. (2015). The Latin American Shampoo And Conditioner Market. Retrieved May 14, 2015, from http://news.in-‐cosmetics.com/2014/08/the-‐latin-‐american-‐shampoo-‐and-‐ conditioner-‐market/ Matthews, I. (2014). Booming Brazil. GCI. Retrieved May 14, 2015, from http://www.gcimagazine.com/marketstrends/regions/bric/Booming-‐Brazil-‐ 242267781.html Novais, 2011. The Brazil Business. Social classes in Brazil. Retrieved from http://thebrazilbusiness.com/article/social-‐classes-‐in-‐brazil Pomela, 2015. Cosmetic Industry in Brazil. The Brazil Business. Retrieved May 14, 2015, from http://thebrazilbusiness.com/article/cosmetic-‐industry-‐in-‐brazil Ribeiro, 2014. Quebrei a regra. Ampolas de tratamento por ate R$10,00. Retrieved from http://www.quebreiaregra.com.br/2014/04/ampolas-‐de-‐tratamento-‐por-‐ate-‐10-‐reais.html Ruvolo, 2012. "Bye-‐Bye Brazilian Blowouts: The Next Big Brazilian Hair Trend Is Beleza Natural." Forbes. Forbes Magazine, July 2012. http://www.forbes.com/sites/julieruvolo/2012/01/23/bye-‐bye-‐brazilian-‐blowouts-‐the-‐ next-‐big-‐brazilian-‐hair-‐trend-‐is-‐beleza-‐natural/ Schneider, Manuel. "Our Endless Numbered Days." N.p., 18 Dec. 2012. http://manuelschneider.blogspot.com/2012_12_01_archive.html "Social Media, Internet Use and Marketing in Latin America." Gooibiz. Mygooi, 21 Nov. 2014 57

21 References http://gooibiz.com/social-‐media-‐internet-‐use-‐and-‐marketing-‐in-‐latin-‐america/ "Solutions & Services." Dell. Dell Inc., 2011. Web. 14 May 2015. Retreived from http://www.dell.com/learn/us/en/04/smb-‐merchandizing/dwen-‐agenda Stylist, 2015. Beauty. Retreived from http://www.stylist.co.uk/beauty/made-‐in-‐brazil The Hofstede Centre, 2015. Brazil. Retrieved from http://geert-‐hofstede.com/brazil.html Vilar, Ludmila. "Road to Beauty Day 1: Salons, Sun, and Saturday Nights in Rio." Marie Claire. Hearst Communications, 13 Mar. 2015. Web. 14 May 2015. http://www.marieclaire.com/beauty/a13707/road-‐to-‐beauty-‐day-‐1-‐salons-‐sun-‐saturday-‐ nights-‐in-‐rio/ "Women Matter: A Latin American Perspective." McKinsey & Company, May 2013. Web. 10 May 2015. http://www.mckinsey.com.br/LatAm4/Data/Women%20Matter%20Latin%20America.pdf “Women Play Key Role in Economic Gains in Latin America and the Caribbean.” The World Bank, 29 Aug. 2012. Web. 13 May 2015. http://www.worldbank.org/en/news/feature/2012/08/29/women-‐play-‐key-‐role-‐in-‐ economic-‐gains-‐in-‐latin-‐american-‐and-‐caribbean

20.7 Appendix G

22. Presentation

22 Presentation

20.7 Appendix G