Brazil - Market Study

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Anne Chen International Advertising & Promotions October 31, 2012 Cultural/Economic Market Study of Brazil 1

description

"Brazil - Market Study." Date completed: October 2012. Brief: International Advertising & Promotions - Country Research Summary. Write-up #3 for a semester-long project which asked us to build a marketing strategy for a company to enter into a new country. This paper follows "UNIQLO - Opportunities in Brazil". Includes an analysis of the Brazil's economy, people, and culture. By first gaining a full understanding of the BRIC member, I was then better armed to develop a strategic marketing plan for how UNIQLO should venture into the country.

Transcript of Brazil - Market Study

Anne Chen

International Advertising & Promotions October 31, 2012

Cultural/Economic Market Study of Brazil

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General Description & Overview of Brazil

Located in eastern South America, at 8,514,877 square kilometers, Brazil’s the largest

country on the continent.1 Topographical conditions are varied; around ninety-percent of Brazil

enjoys a tropical climate, with rainy summers and dry winters, while its southern parts possess a

more temperate weather.

The Amazon River Basin covers most of northern Brazil; the Amazon rainforest dominates

much of this area, and the Amazon River is among the largest rivers running through Brazil. Most of

Brazil’s principal cities are located along the lowlands of the country’s northeast coast.2

Prominent natural resources include bauxite, gold, and iron ore. Current environmental

concerns include the “deforestation in [the] Amazon Basin”; the “illegal wildlife trade”; and the “air

and water pollution in Rio de Janeiro, San Paulo, and several other large cities”.3

Claimed back in 1500 by Portuguese Pedro Alvares Cabral, Brazil gained independence on

September 7, 1822. Dictators such as Getulio Vargas and Castela Branco interrupted Brazil’s periods

of democratic governance, but on October 5, 1988, Brazil obtained its own Constitution, which

instituted “Brazil as a federal republic of twenty-six states and a Federal District.”4 Brazil’s now

home to several political parties, including the Brazilian Democratic Movement Party, the Brazilian

Republican Party, and the Communist Party of Brazil.5

Demographic Analysis

Brazil’s nationality is Brazilian; its total population as of July 2012 is 199,321,413 people.6

This sizeable populace hosts diverse cultural affiliations, and this heterogeneity has been viewed as

either a national strength, or a weakness contributing to the country’s “backwardness”7.

Population Distribution8

Population Growth Rate 1.102% Birth & Death Rates 17.48 births/1,000 population; 6.38 deaths/population

Sex Ratio 0.98 male/female (2011 est.) Age Groups 0-14 years: 24.7%; 15-64 years: 68.2%; 65+ years: 7.1%

Ethnic Groups White: 53.7%; Mulatto: 38.5%; Black: 6.2%; Other: 0.9%; Unspecified: 0.7% (2000 est.)

Languages Portuguese, Spanish, German, Italian, Japanese, English, minor Amerindian languages

Religions Roman Catholic: 73.6%; Protestant: 15.4%; Spiritualist: 1.3%; Bantu/Voodoo: 0.3%; Other: 1.8%; Unspecified: 0.2%; None:

7.4% (2000 est.) Urbanization Urban Population: 87% of total population; Urbanization Rate:

1.1% annual rate of change (2010-15 est.) Major Cities São Paulo: 19.96 million; Rio de Janeiro: 11.836 million; Belo

Horizonte: 5.736 million; Porto Alegre: 4.034 million; Brasilia: 3.798 million (2009 est.)

Net Migration Rate -0.09 migrant/1,000 population Literacy 88.6% of total population

a further analysis of the country’s demographics provided in chart form based on 2012 data (unless otherwise noted) compiled by the CIA 2

Cultural Analysis

When the Portuguese first arrived in Brazil, they encountered nomadic Indians leading

culturally-rich lives which featured cannibalistic practices and intertribal warfare. Consequently,

Brazil’s most prominent language today, Portuguese, is substantially influenced by Indian dialects, as

well as African ones.9

Literature & the Arts At the start of the 20th century, Brazilian artists established Modern Art Week in São Paulo;

festivities celebrated a creative revolution which focused upon Brazil’s national history and

folklore.10 Today’s contemporary literary works are “centered on city life and all its features:

loneliness, hostility, political problems and media control.”11

Modern Art Week, “a watershed in the history of Brazilian culture”12, was strongly connected

to other trends, particularly urbanization and the rising influx of immigrants. Hence the new interest

in expressing nationalistic questions in artistic and literary forms, as seen in the works of sculptor

Victor Brecheret and the paintings of Anita Malfatti and Di Cavalcanti. Theatre, however, wasn’t

included in Modern Art Week.

Brazilian architecture has been described as a “creative melting pot”13. A most recent trend is

a growing interest in landscape architecture, which “synthesize[s] art and horticulture in three-

dimensional design”14; a prominent example is Roberto Burle Marx’s terrace garden in Rio de

Janeiro.

Delving farther into the past, “Brazilian colonial architecture was derived from Portugal, with

adaptations demanded by the tropical climate.”15 Evidence of the colonial style can be seen in the

monasteries and churches of Brazil’s older cities. City designs were also modeled after Portuguese

cities, with narrow streets converging upon central plazas – open areas where religious and

administrative buildings are located. Architectural design is now aimed to answer the pressing

question of efficient space allocation, especially in the face of Brazil’s rapid city growth.

Concernedly, Brazil’s lively cities stand in stark contrast to the rural “backlands” which border them,

where poverty continues to be a major issue.16

Music Music holds a significant value in Brazilian culture. Along with Samba, considered to be

Brazil’s national musical style, other genres include Choro, Bossa nova, and Forró/frevo. Samba

incorporates both Brazilian and African rhythms; its more modern versions have been popularized in

Rio de Janeiro.17

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Sports The most popular Brazilian sport is soccer, or “futebol”. Brazil’s Maracanã Stadium is the

largest in the world; the country has five other stadiums, ideal for fans to cheer on their beloved

Brazilian National Soccer Team, which, thanks to its five World Cup victories, can claim to have

won the title the most amount of times.18 Other popular sports include volleyball, basketball, tennis,

and motor racing.

Carnaval The most famous Brazilian holiday is the annual, week-long festival of Carnaval. “A time of

camaraderie [and] freedom”19, Carnival features extravagant parades filled with colorful costumes

and traditional Brazilian music.

Other key holidays include Tiradentes’ Day (April 21), which marks the anniversary of the

death of national martyr Tiradentes; Our Lady of Aparacida (October 12), which commemorates the

Patron Saint of Brazil; and the Day of the Dead (November 2), which honors the deceased.20

Cuisine The most renowned Brazilian dish is “feijoada”, a bean and pork-based stew served with rice,

collard greens, and manioc flour. The manioc root “was a staple of the Brazilian Indian’s diet”21.

Other favorite dishes include the cheese puff “Pão de Queijo” – usually washed down with a glass of

the “guaraná” – and sweets such as “cajuzinhos”.

Brazilian cuisine enjoys foods which stem from its Indian and Portuguese roots. Original

Indian eats include hearts of palm, pound cake, and corn bread; the Portuguese brought with them

potatoes, fruits, and cod fish. There are also African culinary remnants, such as okra, palm oil, and

shrimp moqueca. Modern cuisines have developed thanks to the importation of international dishes,

such as pizza from Italy and taboule from Lebanon.

Popular Culture Essential to Brazilian pop culture are Telenovelas, “dramatic soap operas” which “not only

grip the nation, but are sold to 120 countries around the world.”22 According to television director

Carlos Magalhaes, “About thirty years ago, Brazil was a lot of countries … I think TV has unified it

... We used to be many different countries. We speak the same language. We know we are a country

now.”23

Due to the influx of international influences thanks to developments in communicatory

channels, there’ve been many efforts to preserve Brazil’s indigenous traditions. The UNESCO Office

in Brasilia24 is most markedly wary of encroaching Western ideals which threaten to usurp time-

honored values. Conservative worries aren’t assuaged by three technology trends which have

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exploded in Brazil: the ubiquitous presence of mobile phones, the rising rate of Internet penetration,

and Brazilian citizens’ active online participation and utilization of social media25.

Economic Analysis26 GDP $2.324 trillion

Currency Real (BRL)

Exchange Rate 1.6728 BRL per U.S. $

Income per Capita $11,900

Distribution of Wealth “aside from the official fivefold regional division of Brazil, a simpler economic distinction is made between the poor,

underdeveloped North and the wealthier, more industrialized South … this distinction is sometimes referred to as the "two

Brazils" or "Belindia” … at times these contrasts are translated into negative stereotypes as when inhabitants of São Paulo, the

huge metropolis in southeastern Brazil, blame their city's poverty and high crime rate on migrants from the North”27

Distribution of Family Income 51.9 (2012 est.)

Unemployment Rate 6%

Inflation Rate 6.6%

Public Debt 54.2% of GDP

Major Industries agricultural (coffee, soybeans, wheat, rice, corn); mining (iron ore); manufacturing (textiles, shoes, chemicals, cement, steel,

aircraft, motor vehicles, machinery); services Major Exports $256 billion (transport equipment, iron ore, soybeans,

footwear, coffee, autos) Major Imports $219.6 billion (machinery, electrical & transport equipment,

chemical products, oil, automotive parts, electronics) Major Transportation Channels 4,105 airports (2012 est.); 28,538 km railways; 1,751,868 km

roadways; 50,000 km waterways Military Expenditures 1.7% of GDP (2009 est.)

a further analysis of the country’s economy provided in chart form based on 2011 data (unless otherwise noted) compiled by the CIA

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Works Cited

1. “Geography: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October. 2012. Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

2. “Brazil – Topography.” Encyclopedia of the Nations. 2012. Web. 29, October. 2012.

<http://www.nationsencyclopedia.com/Americas/Brazil-TOPOGRAPHY.html> 3. “Geography: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October. 2012.

Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

4. “Brazil – Political Background.” Encyclopedia of the Nations. 2012. Web. 29, October. 2012. <http://www.nationsencyclopedia.com/World-Leaders-2003/Brazil-POLITICAL- BACKGROUND.html#b>

5. “Government: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October.

2012. Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

6. “People: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October. 2012.

Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

7. “National Identity.” Countries and Their Cultures: Brazil. Advameg, Inc. 2012. Web. 28, October. 2012. <http://www.everyculture.com/Bo-Co/Brazil.html#b> 8. “People: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October. 2012.

Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

9. “Brazil: History.” interKnowledge Corp. para. 7. 1998-2006. Web. 29, October. 2012.

<www.geographia.com/brazil/brazihistory.htm> 10. “Brazil – Literature.” Brasil: Um Pais de Todos. para. 5. Web. 29, October. 2012.

<http://www.un.int/brazil/brasil/brazil-literature.htm>

11. “Contemporary.” Brazilian Literature. Portuguese Language. 2005-2012. Web. 29, October. 2012. < http://www.portugueselanguageguide.com/portuguese/culture/ brazil/brazilliterature.asp.> 12. “Modernism in Brazil.” Visual Arts. Encyclopaedia Itaú Cultural. 10, June. 2009. Web. 29,

October. 2012. <http://www.itaucultural.org.br/aplicexternas/enciclopedia_ic/index.cfm? fuseaction=termos_texto_ing&cd_verbete=4900&1st_palavras=&cd_idioma=28556&cd _item=8> 13. “Architectural Brazil: 10 Breathtaking Modern Monuments.” The Coolist. para. 1. 2009.

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Web. 29, October. 2012. <http://www.thecoolist.com/brazilian-architecture-10-brea thtaking-modern-monuments/>

14. Rohter, Larry. “A New Look at the Multitalented Man Who Made Tropical Landscaping An

Art.” The New York Times. 20, January. 2009. Web. 30, October. 2012. <http://www.ny times.com/2009/01/21/arts/design/21burl.html?pagewanted=all>

15. “Brazil - Architecture.” Brasil: Um Pais de Todos. para 1. Web. 29, October. 2012. <http:// www.un.int/brazil/brasil/brazil-arquitetura.htm> 16. “Urbanism, Architecture, and the Use of Space.” Countries and Their Cultures: Brazil.

Advameg, Inc. 2012. Web. 28, October. 2012. <http://www.everyculture.com/Bo-C o/Brazil.html#b>

17. “History of Samba and Samba.” Sua Pesquisa. Web. October 30, 2012. <www.suapesquisa.c om/samba/> 18. “Sports.” Kids Corner Brazil. Consulate General of Brazil in Los Angeles. Web. 29, October. 2012. < http://www.kidscornerbrazil.org/content/sports.php> 19. “Brazil’s Famous Carnival Holiday.” Topics Online Magazine. 1997-2009. Web. 29,

October. 2012. <http://www.topics-mag.com/internatl/holidays/brazil/carnival-brazil.ht m>

20. “Brazilian and American Holidays.” Brazil. United States Diplomatic Mission to Brazil.

Web. 30, October. 2012. <http://brazil.usembassy.gov/holidays.html> 21. “Brazilian Food.” Kids Corner Brazil. Consulate General of Brazil in Los Angeles. Web. 29,

October. 2012. < http://www.kidscornerbrazil.org/content/eats.php> 22. “Brazil: Telenovelas.” Telenovelas – Identity & Myth. BBC World Service. para. 1 and 2. Web. 30, October. 2012. <http://www.bbc.co.uk/worldservice/arts/features/latinameri canwords/brazil/telenovela.shtml> 23. “Brazil: Telenovelas.” Telenovelas – Identity & Myth. BBC World Service. para. 5. Web. 30, October. 2012. <http://www.bbc.co.uk/worldservice/arts/features/latinamericanwo rds/brazil/telenovela.shtml> 24. “Cultural Diversity in Brazil.” UNESCO Office in Brasilia. UNESCO. 1995-2012. Web. 30,

October. 2012. <http://www.unesco.org/new/en/brasilia/culture/cultural-diversity/> 25. Kaushal, Priyanka. “3 Technology Trends from Brazil.” Latest Ideas. Corporate Executive

Board CEC Insider. 30, January. 2012. Web. 30, October. 2012. <http://cecinsider.exbdbl ogs.com/2012/01/30/3-technology-trends-from-brazil>

26. “Economy: Brazil.” The World Fact Book. Central Intelligence Agency. 4, October. 2012.

Web. 29, October. 2012. <https://www.cia.gov/library/publications/the-world- factbook/geos/br.html>

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27. “Orientation: Identification.” Countries and Their Cultures: Brazil. Advameg, Inc. para. 3. 2012. Web. 28, October. 2012 <http://www.everyculture.com/Bo-Co/Brazil.html#b>

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