Brazil market entry

Primary and secondary research to aid market entry to Brazil

1. Brazil Market Entry BME can provide Marketing Research/Market Research for new brands considering entering the Brazilian market Brazil has had a lot of attention from round the globe due to the recent World Cup. And the Olympics in Rio in 2016 will continue the momentum. Brazil is a good market to enter due to: A booming economy A middle class demographic of 100m people

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

3. Such a dramatic shift creates aspirations: I want shoes made in Italy not China I want a holiday in Europe not Chile I want a BMW not another VW I don’t want to drink beer with dinner, I want wine I want kids clothes that last more than 3 washes I want better healthcare I don’t want counterfeit Nikes I want more and better stuff – and I can afford it Its interesting to note that the highest per capita consumption of Malt Whisky, anywhere in the world is in Recife a city in the North of Brazil. ( Source: SWA 2013)

4. By a beautiful coincidence the device on our flag reflects our population structure AB C DE

5. 2010 2015 2016 Rank Country € bn Rank Country € bn € 1 US 666 1 China 1,042 2 China 597 2 US 843 3 Japan 272 3 India 428 4 India 265 4 Russia 394 Brazil 343 5 Brazil 219 5 Brazil 330 6 France 208 6 Japan 284 7 Russia 194 7 France 241 8 UK 162 8 UK 194 9 Germany 162 9 Germany 175 10 Italy 130 10 Indonesia 170   Total 2,875   Total 4,101 Brazil, Russia, India and China are all set to be in the top five grocery markets for the first time by 2015 according to latest figures released by international grocery analysts IGD. Growth in Brazil is predicted to be about 50% over the next four years with its grocery market increasing from €219b to €330b and to be 4 th ranked in the world by 2016

6. Some of the high growth markets in Brazil include: Consumer Healthcare/Medical Travel and Tourism Beverages and Snacks Domestic appliances Automotive Fashion/Apparel Jewellery/Luxury Goods Toileteries /Cosmetics Baby/ Kidswear productsB B usiness-to-Business Medical devices/equipment Oil and Gas Logistics/Distribution Retailing/Franchising Healthcare IT/Communications Automotive components Construction Minerals/Mining

7. Brazil Clothing Retail Structure C Sector Top End Malls e.g. Daslu Top End Boutiques e.g. Lourice Large number of smaller shops in Urban areas many specialised by type e.g. Lingerie, Jeans – Low quality and prices Mid – Market Malls Specialist Boutiques Mixed Retail Chains : Renner, Herring, Zara , Riachuelo , Ellus, C &A, Pernamboucas, Marisa Supermarkets/Discount Stores Local AB Sector DE Sector HYPERS, Foreign: Carrefour/Walmart Local: Azucar /Extra

8. Brazil Grocery Retail Structure C Sector Specialist stores e,g Hypers /Supers Carrefour, GPA, Walmart, Cencosud , Dia Atacarejo – local warehouse/discount clubs/ direct selling Regional Smaller Supers Regional Independsnts Convenience Store Chains: Petrobras , Ipiranga , Shell, Esso Independent C stores Local small stores, Street Markets AB Sector DE Sector Smaller format branded fasciia owned by large groups

9. Brazil Drugstore* Retail Structure C Sector Top End Malls/ Dept Stores Hypermarkets/Supermarkets Beauty Specialist retailers Direct Selling e,g . Avon 1.5 representatives, Natura 0.8million reps Mid – Market Malls Specialist Health Public and Private Pharmacies 58,000 Parapharmacies /Drugstore Chains : DPSP/ Onofre / Raia Drogasil / Pague Menos /Big Ben/Araujo/Panel Vel Supermarkets/Discount Stores Local Street Markets AB Sector DE Sector Other smaller local shops Included beauty/health/personal care/ cosmetics/ toileteries fragrances etc

10. Market Entry Research Mostly involving Jewellery Market Analysis Distributor Search Trade Interviews Distributor interviews Distribution Structure Analysis Retail structure analysis Trade barriers/Tariff structures SWOT analysis Labelling/Packaging Entry strategies Import procedures Trade Statistics ( Imports) Confectionery Leather/Luxury goods Medical Devices Apparel ( Womens wear) Kids Wear Jeans Automotive Our recent experience spans several categories and types of Marketing Research/ Information

11. BME sees that potential market entrants have very specific requirements and we understand the context of any proposed research: Market Entrant Requirement Our Methodologies Output We need to understand consumer shopping and consumption behaviour in our category A Usage and Attitude survey amongst category users   Written report/presentation We need to understand how consumers perceive our products/brands/packaging Focus Groups with category users Depth interviews Ethnography Report/Video streaming/ Simultaneous translation We want consumers to use our products and give us feedback Central Location test or Home Usage test   Screener/placement/multiple call backs We want to know what competitors are on the market and at what prices Store checks (with photos) Price checks (plus samples) Mystery shopping   Supermarket prices data plus photos/samples if needed We need background information on our market/category Desk Research   Market size/trend/structure/brands/ distribution We want to identify potential partners/importers Distributor search Trade interviews   Identification/screening/profiles / visits We seek to deliver bespoke solutions and provide added value

12. METHODOLOGIES EXAMPLE PROJECT #1 EXAMPLE PROJECT #2 Comparative Testing Chocolate cake and brownies Fragrances In Depth Interview Surgical Procedures Excavator (telephone) Online Community Tablet and Smartphone Party Beverages Focus Groups Ink Cartridge In Vitro Fertilization (online) CATI Medical Aestheticians Pick-Up Trucks Ethnography Food Consumers Cell Phone Users PAPI Tourism in Brazil Social Survey CAWI Ophthalmologists Industrial Buyers Recent projects we have undertaken include :

13. Our previous experience spans the following sectors: Household Cleaning Media IT - Telecoms Automotive Political Logistics Energy Retail Fashion Apparel Luxury goods Jewellery Food and Drink Cosmetics

14. Our approach to projects is structured: Understand your needs Understand the market context and then: Prepare a proposal defining Objectives, Sample, Methodology , Timing, Costs and Deliverables We can prepare reports/presentations in Portuguese , Spanish and English 5 ) We can provide Data Collection or Full Service (that is with analysis of results and reports)

15. BME offer coverage of all states/cities in Brazil: We utilize a network of over 500 contacts built up over the years: Recruiters (50+) Interviewers (200+) Supervisors (60+) Moderators (32) Viewing facilities (By City) CATI facilities ( By State) Translators (20) Analysts (40) We can construct a team for any market research project on a totally bespoke basis so that clients only pay for what they need

16. Our approach makes us different: BME don’t just rush out a quote at short notice - we consider the marketing context of your research needs which is highly relevant in our fast growing economy. BME consider that Market Entry may have research needs that can be very specific amongst both Trade/Consumer sectors. BME strive to provide insights rather than mere data tables because this gives meaning to survey results

17. How to contact Robert Amine (UK) E-mail [email protected] Tel: [phone] Skype: robert_amine