Livia MelloEduardo

Muracciole

Brasil

Country Area: 8.511.965 sq Km

Brazil – Key FactsCountry Name: Federative Republic of BrazilCapital City: BrasiliaGovernment Type: Federal RepublicPresident: Luiz Inacio Lula Da SilvaPopulation: 190.01 millionLanguages: PortugueseStates: 27 units of the Federation and 1 federal district which contains the capital city (Brasilia)Currency: Real (equivalent to 0.582 US$)Life Expectancy: 72 (total population)

68.4 (men)/ 75.7 (woman)

74%

15%

2%

2% 7%

Catholic

Protestant

Spiritualist

Other

None

53%39%

2%6%

White

Mulato

Black

Other (Jap, Arab,Amerindian)

Ethnic Composition Religion

Predominantly white and mulato Predominantly Catholic

Brazil – Territorial Division

Divided in 5 different regions(by the Brazilian Institute of Geography and Statistics)

1) North Region2) Northeast Region3) Central-West Region4) Southeast Region5) South Region

The North Region 45.27% of the Brazil land area. Lowest number of inhabitants. Mainly unindustrialized and undeveloped. 2% of GDP. Key city to region development and trade–

Manaus ( Zona Franca).Most of the Amazon Rainforest and indigenous

tribes (2% of population).Main industry: lumber, mining (iron, aluminum

and gold), agriculture, oil and gas and ecotourism.

7 states

Amazonas river AmazonZona Franca

Brazil – Territorial Division

The Northeast Region30% of Brazil’s population. It’s the poorest region of Brazil (12% of GDP). Main cities: Salvador, Recife and Fortaleza.Economy : sugar, cocoa and cotton and tourism.Semi-arid climate: Suffers from long droughts. Major industries: tourism, agriculture (sugar

cane and cotton) and extensive cattle breeding.

Salvador Sertão Nordestino Porto de Galinhas - Pernanbuco

9 states

Brazil – Territorial Division

The Central-West Region Low demographic population (just 6.4%).Pantanal- world’s largest wetland area.Cerrado (the world largest savanna). Host of the capital city (Brasilia). Contributes with 8% of the GDP. Political business and tourism are very

important for the regionKey industries: cattle breeding, mining, lumber,

agriculture for subsistence .

4 states

The Pantanal Cerrado Savanna Brasilia

Brazil – Territorial Division

The South-East Region38% of the population.58.5% of total GDP.Economy: mining, manufacturing (machinery,

electronics, automobile and aviation), energy production, coffee, sugar, tourism, petroleum, textiles, etc.

Business economic centers of Brazil : largest cities and companies - Sao Paulo and Rio de Janeiro.

4 states

Rio de Janeiro Sao Paulo Industrial Parks

Brazil – Territorial Division

The South RegionWealthiest region by GDP per Capita : highest

standard of living in Brazil.12.5% of Brazil’s population.16.5% of the GDP Main industries: machinery and automobile,

textiles, tourism, energy. Settled mainly by European immigrants It’s the coldest region of BrazilHost of Curitiba – benchmark of urban planning

3 states

PomerodeCuritiba Porto Alegre

Brazil – Territorial Division

Gross Domestic Product

Source: International Monetary Fund

10th Economy in the world

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

GDP 587 644 554 506 552 664 882 1,089 1,334 1,573

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Brasil GDP – Billions of US dollars

Strong Trade Balance (Exports higher than Imports) The country’s growth rate increased in 2008 to reach 5.9% Modern financial system

Brazil economy has not been badly affected…

5.9%

Brasil Growth Rate

Brazil is leader in agribusiness, but not very significant in terms of GDP

Services comprise 66% of the GDP, followed by industry and agriculture.

Tourism, IT and banking are the chief sub-sectors of services.

The industry sector includes motor vehicles, industrial equipments, chemicals and aircrafts. Most of these industries are clustered in the south-eastern region of the country and employs the maximum workforce in the region.

Brasil GDP by Sector

Source: Datamonitor

GDP by sector

Brazil – Trade Balance

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Exports Imports Total Trade Balance

Exports 55,119 58,287 60,439 73,203 96,678 118,529 137,807 160,649 197,942

Imports 55,851 55,602 47,243 48,326 62,836 73,600 91,351 120,617 172,976

Total Trade 110,970 113,889 107,682 121,529 159,514 192,129 229,158 281,266 370,918

Balance -732 2,685 13,196 24,877 33,842 44,929 46,456 40,032 24,966

2000 2001 2002 2003 2004 2005 2006 2007 2008

Brasil – Trade Balance by year

Brazil's exports amounted to around $197.9 billion (+23% compared to 2007) The imports reached $172.9 billion in 2008 (+43% compared to 2007) The country earned a trade surplus of $24.9 billion in 2008 (-38% compared to 2007)Mercosul - Brazil, Argentina, Uruguay and Paraguay (Total GDP US$ 1 trillion )

Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/)

Brazil – Imports

Ranking Countries US Millions1 USA 25,6272 China 20,0443 Argentina 13,2584 Germany 12,0265 Japan 6,8076 Nigeria 6,7047 Korea 5,4128 France 4,6789 Italy 4,61210 Chile 4,16211 India 3,56412 Taiwan 3,53713 Russia 3,33214 Canada 3,21015 Mexico 3,125

Other Countries 52,878Total Imports 172,976

14.8%

11.6%

7.7% 7.0%3.9% 3.9% 3.1% 2.7% 2.7% 2.4% 2.1% 2.0% 1.9% 1.9% 1.8%

30.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Brasil Imports - Importance by country

10%

7%

7%

5%4%3% 3%

26%

20%

15%

Combustible, Oil

Mechanic Machinery

Electrical Machinery

Automobile

Fertilizing

Chemical-Organic Products

Precision Instruments

Plastics

Medicines

Rubber

Brasil Imports – Main Categories

Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/)

Source: Brazil Foreign Office

Brazil – Exports

Ranking Countries US Millions1 USA 27,4232 Argentina 17,6063 China 16,4034 Netherlands 10,4835 Germany 8,8516 Japan 6,1157 Venezuela 5,1508 Chile 4,7929 Italy 4,76510 Russia 4,65311 Belgium 4,42212 Mexico 4,28113 France 4,12614 Spain 4,04615 UK 3,792

Other Countries 71,034Total Exports 197,942

13.9%

8.9% 8.3%5.3% 4.5%

3.1% 2.6% 2.4% 2.4% 2.4% 2.2% 2.2% 2.1% 2.0% 1.9%

35.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

10%

9%

7%

7%

6%

6%6%4%3%

39%

3%

Mining Industry

Fuel

Automobiles

Iron

Mechanical Machines

Beef

Cement

Electrical Machines

Aircrafts

Sugar

Others

Brasil Exports - Importance by country

Brasil Exports – Main Categories

Source: Brazil Foreign Office (http://www.braziltradenet.gov.br/)

Source: Brazil Foreign Office

Brazil : Leader in Agriculture

Products Exports Rank

Coffee 1st

Orange juice 1st

Sugar 1st

Beef 1st

Meat (chicken) 1st

Paper 1st

corn 2nd

Soya beans 2nd

Source: Secex

FDI inflows into Brazil increased from around $35 billion in 2007 to $45 billion in 2008 Consistent growth from 2005 in terms of attracting FDI

Brazil – Foreign Direct Investments

FDI inflows (2001-2008)

Sao Paulo Stock Exchange Bovespa index

Market cap increased $710 billion in 2006 to $1,369.7 billion in 2007 Brazilian economy affected in 2008, but fully recovered. Major factors: diversification of trade partners, development of internal market,

economic stability, sustainable energy matrix and recent discovery of crude oil.

Market Capitalization

Brazilian Diverse Culture

Brasil - A Country of Contrasts Opposite HDI in different

regions –HDI of Norway and HDI of Africa.

Country of contracts: One of the highest Gini coefficient. “ Rich spends in three days what the poor spends in a year”

30% of population with 72% of total disposable income. 5% with less than $1.25/day

NORTHEASTPOP – 27,6%

PP – 18%

SOUTHEASTPOP – 42,6%PP – 51,6%

SOUTHPOP – 14,6%PP – 18,4%

MID-WESTPOP – 7,1%PP – 6,6%

NORTHPOP – 8,1%PP – 5,4%

POP=Population

PP=Purchasing Power

Globo presentation to MBAs

Positive consumer behaviour• Easier availability of credit

• Lower Risk Brazil

Middle class appetite for consumption

“ Buy now, pay later!”

Government incentives

Young nation and noveaux riches Unseen ways of living and buying among youngsters

New Rich with economic growth trends - 10% of households income raised 124% since 2002

Demand for luxury cars, beverages and designed closing

Pull to the urban centers

Rio de Janeiro: 11M

São Paulo: 18 M

Belo Horizonte: 3 M

Demand for TechnologyInternet and broadband users

Brazil = 5th in number of phones 41.1 M fixed lines 150.6 cell phones

Brazil = jump in credit cards use Majority growth in poor areas 75% of North/NE – income < R$ 1,000 SE – tourism, entertainment, clothing

In Brazil, Sport is religion

Brazil - leading TV market

369

11083

4935 25 25 23 21 16

China

US

Japan Brazil

GermanyUK France

Italy Mexico Spain

Households with TV (million) – Major Countries

source: Globo presentation to MBAs

Media landscape in Brazil

Movies

Pay TV

Internet

Newspapers

Magazines

Radio

Broadcast TV

14%

20%

34%

37%

45%

83%

97%

Advertising Expenditure 2006 (US$ billion)

Rank CountryAdvertising Expenditure

%GDP

1 US 174.8 1.32 Japan 40.5 0.93 UK 21.9 0.94 Germany 20.8 0.75 France 13.1 0.66 China 11.4 0.57 Italy 11.0 0.68 Brazil 11.0 1.09 Spain 8.9 0.7

10 Canada 8.3 0.7

Media consumption

Pay TV Programmer

Sound Recording & E-commerce

Feature Films Producer

Internet Portal

Magazine Publisher

Newspaper Publisher

Radio Broadcasting

Free Broadcast TV

Globo – major Media

Non-profit foundation

Cable & Sat Pay TV Systems

Globo presentation to MBAs

TV Globo’s Leadership

Signal reaches 99,4% of the Brazilian population

5 owned stations - 116 affiliate stations

Home of the finest artistic and news talent

The largest production center in Latin America (2,500 hours/year)

Holds rights for the top sports events, films and TV shows

75% of broadcast TV advertising market share

Exports programming to 130 countries

Network sales in 2007: US$ 4.5 bi

59% prime time audience share

Globo presentation to MBAs

MO

RN

ING

AFT

ERN

OO

NLA

TE E

VEN

ING

EVEN

ING

ENTERTAINMENT

NEWS

FILMS

SPORTS

OTHERS (Community, Educational,…)

5:306:007:008:009:00

10:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:0024:00

1:002:003:004:005:00

MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

Globo presentation to MBAs

Globo Horizontal Programming

Marketing

Celebrity endorsementLanguage unity, but cultural diversityIncome discrepancies Colors are crucialHumorSport icons

Marketing in two realitiesTargeting Mass:

Casas Bahia Targeting Niche:

Daslu

100% emotional High margins International = cool , but proud to

be brazilian Ambiance is key Service is very important Blogs, links to tweeter and

Facebook Celebrity – models, important

Brazilian icons

Benchmark – largest retail Revenues = R$ 13,5 billion Prices = emphasis Heavily on TV ( 33%) Easy credit – “ carnets” Buy now and pay a TV in 72

months!

Bem-vindo a Volkswagen do Brasil

Volkswagen do Brasil

Key Facts:

Domestic car demand in Brazil is approximately 2 million a year growing at 5% approximately (BNet, 2009).

Brazil is the Volkswagen’s third largest market after China and Germany with 3 facilities able to produce 800.000 cars a year approximately (star-motoring, 2009).

Volkswagen in Brazil's is the #1 carmaker, above U.S. rivals General Motors and Ford, with almost 30% of the market share (BNet, 2009).

Volkswagen is the automobile brand with the highest Recall in Brazil40% according to ABA (Associação Brasileira de Anunciantes, 2008)

Gol is the automobile model with the highest Recall in Brazil.25% according to ABA (Associação Brasileira de Anunciantes, 2008)

In Brazil, 70% of car buyers purchase subcompacts and compacts, and around 30% buy larger cars (B Krueger: Vice President of Volkswagen do Brasil,

2008)

Volkswagen do Brasil

Robust cars with raised suspension and powerful motors, specially designed for bumpy dirt roads, ubiquitous in Brazil.

Reduced vehicles designed to deal with the Brazil’s congested cities where streets are narrow and parking and garage space is limited

Automobiles able to run on gasoline, ethanol or a mixture of the two. Accessories and electronics included inside to provide the best experience

Volkswagen’s main products offer:

Product Launch in Brazil:

28 new products expected between 2009 y 2010 (Univision, 2009) 3.5 billion to be invested in Volkswagen Brazil from 2009 until 2014

(Univision, 2009)

Recognized for years as “the car of the people”, Volkswagen in Brazil is aiming up-market, to younger Brazil’s drivers with more disposable cash and a burning desire to occasionally leave city life behind (BNet, 2009).

Target Market in Brazil:

VW Brazil: A history of constant adaptation…

1953: Volkswagen Fusca (Beetle)Results: 3.350.000 cars assembled in Brazil

Challenge: Recreate the Beetle but with a Brazilian flair (Brazil's president Rudolf Leiding)

Results: - The total production of VW Brasilia reached over one million. - Successfully exported to many countries in South America, Portugal and Philippine.

1970: Volkswagen Brasilia

Gol G2 (94-99) Gol G3 (99-05) Gol G4 (05-08) Gol G5 (08 +)

Gol G1 (80-94)

Challenge: To build an all new front engined (cheap) vehicle to compete with the brand new Chevette from Chevrolet.

Results: - Uninterruptedly the best-selling car in Brazil since 1987.- Over 5 million Gols have been produced since 1980. - 5 generations launched since 1980

1980: Volkswagen Gol ( futebol)

Chevette - Chevrolet

VW: Advertising Activities in Brazil

TV Commercials Intense participation in terms of TRP Maximal expression of creativity

http://www.youtube.com/watch?v=FuwAtPSvwrA&feature=PlayList&p=769DFEF04CD1E30B&playnext=1&playnext_from=PL&index=3

Regular Products: SpaceFox (1min, 02 sec)

New Products: Gol 5th Generation (31 sec)http://www.youtube.com/watch?v=F9TLqlYRofA (With Gisele Bundchen and Silvester Stalone)

Billboards: Street MarketingObjective: To communicate the new VW Polo comes with “parking sensors as standards” to avoid scratches and dents

http://www.publicidadymarketingweb.com/pageID_7032152.html

Place: In the parking lots of the biggest shopping centers in Brazil(1 min, 16 sec)

(puppy-fish)

VW: Advertising Activities in Brazil

Volkswagen Run - 10KAnchieta – Espiritu Santo

VW: Advertising Activities in Brazil

Super Surf - CompetitionBahia, Ubatuba, Guaruja

VW: Advertising Activities in Brazil

Rally – Motor SportDakar, Dos Sertoes

VW: Advertising Activities in Brazil

Volkswagen sponsors Brazil’s Soccer Team The company will use the Brazil team and logos in its advertising campaigns. The team will travel on a Volkswagen coach.

Flavio Padovan, Volkswagen Brazil's vice president commented:"There is great synergy between Volkswagen and the Brazil team. Just as with the Brazil national football team, the brand values are reliability, friendship, passion and closeness to the public."

Hope to see you at Rio Olympics 2016!

Obrigada!http://www.youtube.com/watch?v=U3ciAv7wkJs