Sports Retail Brands Strategies in Brazil
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Transcript of Sports Retail Brands Strategies in Brazil
SPORTS BRANDS IN BRAZILA STRATEGIC FOCUS 2011
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In order to generate an overview of sports
brands presence in the Brazilian market the
research SPORTS BRANDS IN BRAZIL: A
STRATEGIC APPROACH 2011 includes a
brief analysis of performances, strategies,
positioning and actions related to key players
in the segment.
PRESENTATION
Copyright Global Sports Network (GSN) 2011©Frederico Mandelli Guaragna – Business Intelligence ManagerJUNE 2011
www.gsnsports.com.br
Within a bold position Adidas aims to
improve communication with young
people thereby justifying its greater
attention on investments in social media.
Adidas has posted an average double-digit growth in
Latin America and will focus its marketing efforts in
World Cup and Olympic sponsorship activation to
increase revenues in Brazil. The group expectation is to
increase its national market share - currently 20% - and
achieve a turnover of U.S. $ 700 million in the country
until 2014 - which would result in an increase of 5% to
8.5% on the Brazilian representativeness market in
German brand’s total global revenue.
4
In contrast Nike also provides marketing strategy
based on increasing sport consumption trends before
plan the mega events happening in Brazil. Sponsor of
the Brazilian Soccer Team the U.S. brand will have a
privileged position in the 2014 World Cup and is
already studying the possibility of supporting some
form of confederation to be present at the Olympic
Games.
NIKE HAS PLAN TO 2014-2016
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5
Believing in the potential of the
Brazilian market - representing 21% of
revenues in Latin America - Nike bets
on promising segments such as
"running" and extreme sports "Nike
6.0" to win the leadership.
After learning during start up operational Puma is consideredsolidified in Brazil. Occupying the third spot in the globalsporting competition the Italian brand had rapid penetration inthe Brazilian market through its differentiated positioningfashionable sportswear. Consolidated the original objectivesPuma turns marketer with the challenge of becoming moreaccessible to gain market share without compromising the idealsof the brand.
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Weakened internationally after its sale to Adidas Reebok remains strong
in Brazil with a share of 15%. This fact is consistent with its presence in
domestic football - currently the only brand provides material for the
Premier League teams and Australian but the goal should continue to be
female audience. Umbro already acquired by Nike has slowly loses
visibility focusing on developing high technology products mainly in
football.
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If the British brands have remained in operation after
being built by Germans and Americans the Italian
manufacturers seek to reinvent themselves for not
having the same fate.
The Diadora which had already applied for bankruptcy
and was acquired by GEOX continues its global
challenge of rejuvenating the brand and product
portfolio review with indecision on how to add
technology to the segment of sports fashion.
ITALIAN BRANDS WEAKENED
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9
Prestigious brands in Italy Kappa and Lotto have difficulties in following the development
of the Brazilian market since the financial capacity constraints that prevent larger
investments in marketing, research and development - key to local competitiveness -
which also does not run with the Italian Fila .
A strategy to qualify its products and thus increase prices gradually yielding results for the
Italian group which trades on average more than 2.2 million pairs of shoes and making
almost $130 million annually in Brazil.
FILA QUALIFY ITS PRODUCT MIX
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10
Innovation in conjunction with a business based on marketing
activities direction of aimed to meet specific niches can be an
effective alternative to the definitive consolidation of a mark in the
industry. In this sense there are examples of success from one of
the largest global technological poles - Japan.
With a policy of continuous investment in
research and products development
Japan's Mizuno and Asics have managed
to create an identity strongly linked to the
public by constantly running articles
launches high performance.
JAPANESE TECHNOLOGY
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The focus will allow Mizuno and Asics both remain as
leaders in this segment despite the change to a more
aggressive competitive posture of Nike, Adidas and
Olympikus in running mainly targeting Brazil.
Already the U.S. Speedo not turn away from its core
business and concentrating its activities only in aquatics -
now with greater participation of the Italian Arena.
MARKET FOCUS AND DIRECTION
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12
The heating of the Brazilian economy
stimulates new players entry in order
to increase revenue and reduce
negative impact that European crisis
is affecting businesses. However the
lack of knowledge of Brazilian market
peculiarities - particularly as regards
the logistics and distribution - has
been an impediment to the entrants.
Even in Latin American Joma and Mitre have not
found an efficient way of operation as Arena, New
Balance, Saucony, Ironman, Babolat, Avia are on
the business sustainability in the country
surpassed process by Spalding and Wilson in the
past decade.
13
While the market came with the
harassment of foreign brands in the
country the Brazilian manufacturers find
ways to ensure competitiveness in the
segment are reinventing themselves.
Investment technologists, product
development and media are vital for
sustaining the local operation.
Nevertheless, pressured by international
players the Brazilian sports brands
enhance its competitiveness in foreign
trade primarily in Latin America
considered the second largest market in
the continent.
BRAZILIAN BRANDS REINVENT ITSELF
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Isolated leader in sports footwear market in the
country Olympikus continues to pursue
strategic planning for technological
improvement of its product line to raise the
brand status in consumer perception. Heavy
investment in sports sponsorships, media
advertising - currently Olympikus is the largest
advertiser in its segment - and at points of sale
complement the marketing plan to make the
impressive Brazilian brand in Brazil and Latin
America.
TECHNOLOGICAL IMPROVEMENT
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15
Since these guidelines were drawn by Vulcabrás - current manufacturer - Olympikus's revenues
growing an average of 12%. In 2010 the brand has achieved a turnover of $750 million - to
include foreign markets -. The models innovations success like Jet Tub and Zomax contributed
to an increase of 74% of net sales in the last four years - now accounted for 17 million pairs of
shoes sold annually. The central positioning in high technology results in a significant increase
in the average selling price of the shoes Olympikus retail.
Traditional in the market Topper and Penalty identified the
need for a new visual identity as a way to communicate new
positioning. Both banking on expanding the range of sports
footwear, equipment and supplies, expanding its products
portfolio to different modalities.
Investments in creative campaigns whose bid valuation of
brands "really" national aims to establish emotional
connections with the public and aggressive pricing strategies
are adopted by Topper and efficient Penalty in the face of
fierce competition in the domestic market.
REBORN, REBUILD A BRAND VALUE
Focus on global expansion - exports to 80 countries - Topper has joined its operations in Mercosul
and looking to enhance capabilities and improve-commercial area. In Argentina the manufacturer is
a leader in its segment with 32% market share while in Brazil despite being released 36 years ago
does not exceed 7%. With a sports sponsorship policy investment aligned with strategic objectives
Topper managed to increase sales by 15% in Latin America last year.
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For Olympikus the decision to explore Argentinean
market in is one of the preparatory steps for ambitious
planning towards brand internationalization in North
American soil. In just three years of operation in the
neighboring country, Olympikus already has 5%
market share and as Penalty and Topper aimed much
of its marketing dollars to activation campaigns in the
sports environment.
Penalty already decided to increase its manufacturing
capacity in Argentina and open office in Spain on the
opportunities in the industry. Currently revenue from
exports to 18 countries represents 27% of total sales
of the brand belonging to the group Cambuci.
EXPANSION TO LATIN AMERICA
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19
Business Plan
The GSN provides consulting solutions in several areas important to
the effective entry of its brand in Brazil such as:
Strategic Plan
Sales Strategy Market Research
Trading
DOING BUSINESS WITH BRAZIL
www.gsnsports.com.br
Market ResearchLogistics &
Distribution
Centro Empresarial CittàAmérica
Av. das Américas 700 - Bl. 6 - Sl. 228/234
Barra da Tijuca - Rio de Janeiro - RJ
(55) 21-2495-1716
Frederico Mandelli - [email protected]
Mídia Esportiva I Gestão Esportiva I Marketing Esportivo I Gestão de Carreira
@gsnsports