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What do Brazilians care about? Tatiana Maia Lins, CEO Makemake.

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Presentation on theme: "What do Brazilians care about? Tatiana Maia Lins, CEO Makemake."— Presentation transcript:

1 What do Brazilians care about? Tatiana Maia Lins, CEO Makemake

2 The authors Tatiana Maia Lins CEO of Makemake Communications & Strategy, a Rio de Janeiro based company that provides services to local and international clients wishing to operate in Brazil. Research partners: Marcelo Silva Ramos, Rodrigo Cotrim and Raquel Goulart Póntos Research and Consulting: a group of experts focused on business innovation, combining anthropological research and guidelines for marketing and branding.

3 The research The research was done specially to this conference. It draws general conclusions on what Brazilians care about in foreign brands that operate in Brazil. Results came from: desk-top research, online communities discourse analysis, observation in stores, in-depth interviews and an online questionnaire. Although we highlight general tips on how to win Brazilian hearts, the research focused its attention on the make-up brand M.A.C, which has achieved in Brazil a superior appeal than in its original country: Canada.

4 The questionaire sample The quantitative research considered 107 valid answers from Brazilian consumers from Rio de Janeiro and São Paulo (90% of all replies), as well as other important cities, including Brasília. The authors intentionally wanted to have more replies from Rio de Janeiro and São Paulo - the two biggest urban areas in Brazil, places where international brands usually step first when coming to Brazil.

5 The questionaire sample The public that replied to the questionnaire is very attractive to foreign brands looking to reach the Brazilian Market because: 72% are women. In 2009, from R$ 2 trillions of spending in Brazil, women were responsible for spending R$ 1,3 trillion (R$ 800 billion were spent directly by women and R$ 500 bi were spent by men under women influence). 84% of all respondents have household monthly incomes of at least 4 minimum wages. (36% of respondents have household monthly income between 10 and 20 minimum wages and 19% of respondents make more than 20 minimum wages a month). It gives them the purchase power to try new products and to enjoy items they consider as accessible luxury.

6 Great purchase power and very atracted by foreign brands 62% of respondents are from the largest working population share in Brazil: from 26 to 35 years old.

7 WHY GOING TO BRAZIL? Brazil has beaten the European countries at soccer for a long time, but beating them at economics is a new phenomenon.

8 Understanding Brazil Brazil is the 6th largest economy in the world and it accounts for nearly 60% of South Americas total GDP. Despite the global recession, Brazil lives a billionaire boom. In 2011, 12 new Brazilian names appeared on Forbes Worlds Billionaires list. Last May 1st, the unemployment rate was 10,5% in Europe, 9,5% in the US, and 6% in Brazil. Almost 70% of all Brazilians are expected to be in the middle class by 2030. In Brazil, poverty dropped 50% from December 2002 to December 2010. Few markets in Brazil could be considered saturated and theres not much competition in Brazil comparing to mature markets.

9 Brazilian Economic Growth

10 HOW TO BE A STRONG GLOBAL BRAND IN BRAZIL? It´s important to understand the Brazilian Multicultural Ambient

11 Brazil as a country Formed by three major waves of immigrants. 1) Portuguese, African slaves and few Jewish (1500); 2) Portuguese Royal Family (1808) and Jewish; 3) Italian, German, Lebanese and Japonese (1850 to 1930). Is a young democracy. It started on 1822 but the country went through two dictatorships: Vargas (1937-1945) and the Military (1964-85). Is a country with a strong relationship-based culture. Its population is getting older, richer and fatter.

12 Even the population is changing in Brazil

13 10 TIPS ON HOW TO WIN BRAZILIAN HEARTS Now that we know what´s going on in Brazil, let´s see how to win Brazilian hearts with the research findings

14 1: Create relationships Its important to Brazilians to create ties and relationships. Brazilians expect a warm and friendly treatment from brands. Brazilians like to be pampered and they value brands that engage with them looking for a long term relationship. Brazilians like to have someone they can trust offering the services of a brand. In M.A.C example, consumers value the shop attendants who are also make-up professionals who teach how to use the products. They like to learn from a brand and to exchange knowledge.

15 2: Be social and digital Traditional adverts work, but Brazilians prefer users testimonials than traditional adverts. The engagement to a brand is higher when the person is introduced to the brand by a friend or someone close. Blogs are a very important source of news for Brazilians. In Brazil, there are people who write blogs just for the fun of writing it and others who do it as a business. Brazilians take much consideration from experts while buying. In M.A.C case, the close and trust-based relationship Brazilians have with their make-up professionals look like their relationships with their hair-dressers.

16 3: Be creative and positive Brazilian people love innovation and a positive atmosphere. M.A.C is connected to Brazilians also because it keeps a vanguard attitude from its first days till now. Deliver to customers more than your competitors. In developing countries like Brazil, theres a massive demand for consumption. Try to set trends.

17 4: Dont expect the same behavior as abroad The higher prices in Brazil comparing to prices in USA and Europe make some global brands to have a different appeal and target in Brazil than in their original countries. As prices are higher in Brazil than abroad, the domestic purchase in Brazil for international brands is less impulsive than when the same consumers are buying abroad. In other words, high prices constrain purchase but it doesnt affect the love or admiration Brazilian have towards a brand.

18 5: Offer a good buying experience Brazilians like impressive packaging. But if the product has a good buying experience, they don´t care to simple packaging. Brazilians like to have a whole experience with a brand. In M.A.C example, people like M.A.C brushes and variety of colors. This mix helps a higher amount of people to find the perfect product for themselves. Deliver what you promise, otherwise you might see your image seriously damaged.

19 6: Flirt with them while they are abroad Five of the ten largest M.A.C stores in the world have Brazilians as their biggest customers. Today M.A.C has 27 stores in Brazil and plans to double its operations in Brazil up to 54 stores until 2017. Brazil has already surpassed Mexico in M.A.C products consumption. Brazilians like the feeling that now they are part of the team, show your consideration to them. M.A.C shops in New York and Miami have Portuguese speaker sales attendants to take care of Brazilian customers. "The success of MAC before entering Brazil began with the Brazilians traveling to New York, Toronto, Miami, London and Paris," says Estéer Lauder Group President John Demsey.

20 7: Dont steriotype Brazil is a country split in five regions, 26 states and a Federal District, forming the 5th largest country in land in the World with 8,514,877 square km and also the world's fifth largest country in population with over 192 million people. There are solid Portuguese, Jewish, Italian, German, Lebanese and Japanese communities in Brazil. We consider Brazilian anyone born in Brazil, no matter their parents origins. Respect towards diversity is one aspect that unites Brazil as a country. Its important to understand Brazilian multicultural aspects.

21 8: Invest on quality The brands nationality isnt that relevant to Brazilians, what matters is global quality. Many people in Brazil think that M.A.C is American. When it was said that it was Canadian, it was said: M.A.C is global. When asked would you recommend this brand to a friend? Please explain why, responders pointed that YES, they recommend brands to friends i) if they believe the products are good, ii) if they are well treated by the brand staff Brazilians recommend even products and brands seen as expensive or those they have not tried but that they see as brands of good reputation.

22 Would you recommend M.A.C to a friend? Why?

23 9: Sustainability is a plus When Brazilians know that a company has sustainable practices, it is valued by them. They do not choose a brand because of its sustainable public speech, but they appreciate to know that a brand has sustainable practices.

24 10: Reputation is built by customers and ambassadors M.A.C in Brazil does not have a strong institutional communications presence, but, instead, it has its reputation service done by customers, bloggers and make-up professionals. Being a global brand helps, but M.A.Cs reputation is due to its financial, commercial and logistics strength; to the quality of its products; and to the relationship built with consumers. So, it takes more than having a foreigner label to conquer Brazilian hearts nowadays. M.A.C recognizes its make-up professionals as artists, what helps to retain and engage talents and improves the corporate culture.

25 Thanks a lot for your attention, hope to see you soon in Brazil! Tatiana Maia Lins +55 (21) 81352023 Skype: tmaialins

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