Business plan on exporting redgreen (Danish chic sportswear products) to Brazil

Résumé du document

Brazil has become one of the most promising emerging countries besides China and India and counts a very large population, whereby extreme poverty and extreme wealth coexist. In this context Redgreen, a Danish company specializing in high end and high quality sportswear outfits considers exporting its product lines to this country. In order to explore the potential of this new market, we will first analyze the country's main features in terms of economic life, politics, etc, before considering the marketing keys to success while finally developing a specific distribution strategy. Brazil is quite interesting place for investment and many companies are entering this developing market. Its high GDP growth, large economy, developed infrastructure, liberalisation of public sector and many Foreign Direct Investments have turned this struggling country into developing nation that holds 2nd place (China is 1st) in amount of foreign capital invested into the economy. In last 5 years, Brazilian government has been quite stable and it seems that Brazil has a sound strategy when it comes to taking its economy into top performing ones. Government is introducing new, more liberal competition laws and it is introducing new forms of investments, such as PPP, or Private Public Property, where both the investor and government share the risks by holding equal stakes in the investments.

Extraits

[...] Our main competitors haven't fully established their operations and demand for our type of product is growing. This is a great opportunity, and we shouldn't miss out on it. As an entry model, the decision has been made to implement franchising model, in order to limit the risk and share it with our partners in Brazil. The current strategy is now defined but in the future, it is possible to open a Redgreen shop or to have a clothes manufacturing operation in Brazil. So, vertical integration could add value and increase profit. [...]

[...] Corporate tax is 15% and there are no clear incentives for leaving the profit in the country. The tax rate is quite high compared to some economies like Ireland, Portugal or Greece. PriceWaterCoopers, consultant agency, highly recommends that exporters seek assistance from local trade and tax consultants before shipping any goods. Social environment We can see that there is a huge economic inequality among the population and around 19% of citizens live under poverty line. But, let's not forget that Brazil has a population of around 188 million people, which makes it 5th largest nation in a world. [...]

[...] Business conditions that change rapidly and social extremes that exist don't add to country's attractiveness. Corruption is still a big issue in Brazil. Opening an operation in Brazil may require additional payments to government officials, which can present a big obstacle to entering a market. According to Transparency International, Brazil holds 70th place in level of corruption among 180 countries, higher then such economies as Cuba, Turkey and Bulgaria. Economic environment Due to large population and inflow of FDI, Brazil has extremely high potential for growth. [...]

[...] On the Brazilian market, since 1995 and the decrease of tariff barriers, many famous brands have created networks to have a strong effect on the market. Instead of quoting all these brands, most important will be positioned on the perceptual card according to the price of clothes and age of consumer (also link to the design and fashion). All this brands focus on rich people who can afford international famous brands Forces of Porter can be used to give an overall idea of the situation. [...]

[...] Business Plan on Exporting Redgreen (Danish chic sportswear products) to Brazil Contents Contents 1 I. The Brazilian Macro-Environment 3 Investment Climate Analysis 3 PESTL Analysis 3 Political environment 3 Economic environment 4 Social environment 4 Legal environment 4 II. The keys to success: a Marketing approach 8 Marketing Vision 8 Marketing Concept 8 Target 8 A double product use 8 Product's values 8 Communication 9 Product selection 9 III. A strategic distribution choice 10 Franchising 10 IV. Expansion opportunities 11 V. [...]