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Transcript of Marketing Plan
Introducing Brazil to Proactiv
Acne and Skin Care Treatment Products
Founders: Katie Rodan and Kathy Fields in 1995
Distributed by a direct marketing company, Guthy-Renker
Brazil Quick Facts
Continent: South America
Climate: Mostly Tropical
Located in the Northeastern part of South America.
Slightly smaller than the United States.
The fifth largest country in the world.
Largest country in South Latin America.
Married Couples live away from parents.
Religous marriages are decreasing.
Husband/Father exerts authority and power.
Work is divided into masculine and feminine tasks.
Mostly Roman Catholics.
Literacy rate: 90%
Children are required to attend school for a minimum of 8 years.
Secondary and higher education needed for professional careers.
Living and Work Conditions
Two story homes.
Women and men wear business attire to work.
Soccer is Brazil's passion.
Biggest meal of the day is eaten in the afternoon.
Government has very little authority
Government runs healthcare known as United Health System
Selected to host 2016 Olympic Games
Growth Acceleration Program (PAC II) 4708
BRIC Nation: Industrialized
GNI: 4% Growth since 2008
7th Largest Economy Globally
Global Market Growth Opportunity.
Urban: 168,602,145 or 87%
Middle Class: 55%
Annual Average Family Income: $27,047
"New Middle Class": 33M
Generous increases to minimum wage
Social welfare reform
Currency: Brazilian Real
1BRL - .43116USD
1BRL - .3936EUR
Trade Restrictions - Complex
Air Handling Fee
Licensing - Legal
Foreign Trade Secretariat
Brazilian Ministry of Health
Establishment of Brazilian Manufacturer, Local Office, or Distributor who is properly authorized.
Retail Market: $230 billion
Beauty and personal care products: $69 billion
$7 million skin care products
Neighborhood Retail Stores
Densely populated urban areas
Online: 73 million internet users
Door to door sales
Credit Card Utilization: 60%
Market Audit and Competitive Market Analysis
Majority of Brazil's population is middle class, female, and middle aged.
15 to 24 years old: 16.8%
25 to 54 years old: 43.4%
Middle class: 55%
Target: middle class women who are between the ages of 15 and 54.
Package includes the 3-step system:
Step 1: Renewing Cleanser
Step 2: Revitalizing Toner
Step 3: Repairing Treatment
Language: Portugese and English
Color: White/clear with green lettering.
Direct Sales via the Interent
Add Brazil as a country option on the Proactiv website.
Brazilian consumes can then purchase their products online.
Direct Response (phone-in) from television advertisements.
Temporary kiosks and vending machines in shopping centers would then be introduced depending on the success of entering Brazil.
The Proactiv 3 Step Solution Package costs $19.95 plus $6.00 in the United States.
Proactiv 3 Step Solution Package would cost around BRL90.24
Total Costumes Value: BRL46.25
Import tax: BRL27.75
ICMS (state tax): BRL16.24
Total Landed Cost: BRL90.24
Direct Sales Method omits the possibility of retail price mark-ups.
An adaptive approach to promotions and advertising will likely be the most sucessful.
The radio and television are the two leading media sources in Brazil.
Door-to-door selling will be key in attracting early adopters.
Proactiv will need to rely on utlizing advertising for educating the market on product purpose.
Message: A prescription strength medication without seeing a dermatologist and emptying pockets.
Promotional sale: Free 60 day trial!
15 day refund!
Preliminary Marketing Plan
Skin Care Growth
The medicated skin care products market is expected to grow by 6.3% compounded annually from 2009 to 2014.
Market Segment Breakdown
Avon is the market leader with a 42.8% share of the medicated skin care products market.
Avon in Brazil
Avon utilizes a direct selling model.
Brazil ranks 4th in the direct selling market worldwide - contributing 9% ($14.6 billion) of total global sales.
Success through direct sales is tied to the economic development.
Currently available for shipment to:
most Asian Pacific Countries
most European Counties
Want to begin exporting to South America; specifically, the beauty driven market of Brazil.
The Market Continued
"Over the next five years, Brazil's consumption of personal care and beauty products will outpace that of develped markets including the U.S."
25% of Brazil's total cosmetics/beauty care market is made up of U.S. ethnic products.
U.S.- made products are preferred because of manufacturers' experience, quality, and brand recognition.
Similiar to U.S., Brazilians have started seeing dermatologists for minor "aesthetic enhancements" (such as acne treatment)
Brazilian Free Health Care system makes seeing a public doctor challenging.
Proactiv has major competitve advantage by offering prescription strength solution without having to see a doctor, and at a fraction of the cost of private medicine.
Great market for Trialability and Copatibility given that Proactiv is primarily sold direct to consumers
direct response ads
"Brazilian women show a trend of buying cosmetics much more frequently via direct sales instead of retail stores"
Direct delivery ensures convenience in continuing of treatment without interrptions.
United States of America
Television: 90% penetration
60% of Ad Spend
Influentional in Culture and Society
High Brand Awareness
by Olympics, expected 80% of population will be online.
Ecommerce: 40% growth in 2010