Brazil
B 380 Intro to International Business
Section 2 – Fall 2015
Brazil-S2_P2-C
Team members:
Nathan Smith– Cover sheet; Purpose statement; Definitions paragraph; Prototype logo
and explanation
Timothy Webster – Product introduction
Brad Caresia – Specific target market
Samuel Velez – Product strategy
Bree Mercado – VRIO analysis
Kyle Eakins – Potential competitors and TOWS analysis
Chelsea Chadwick – Team leader; Final Compilation and final editing
PURPOSE: Team members will introduce and describe our product. We will identify a
specific target market for the product. We will explain the product strategies and how our
product will meet customer needs and wants. We will describe adaptations necessary in
order to be successful in Brazil. We will introduce a product logo prototype. We will give a
VRIO analysis along with a TOWS analysis. We will discuss potential competitors.
DEFINITIONS:
Market Segmentation: The aggregating of prospective buyers into groups (segments) that
have common needs and will respond similarly to a marketing action.1
VRIO Analysis: An analysis of the value, rareness, imitability, and organization used to
evaluate the resources of an organization.2
TOWS Analysis: An analysis of the strengths, weaknesses, opportunities, and threats that
an organization faces. Unlike the classic SWOT analysis, the TOWS analysis looks at each
factor interdependently rather than independently.3
TIM’S SECTION
Target Market
The target market for our venture is the middle class in Brazil. Brazil’s middle class has
substantially lowered their poverty levels. The number of people living in poverty declined
from 26% to 10%4, the middle class is increasing rapidly. Even though Brazil’s middle
class is growing and they’re reaching a lower level of poverty struck individuals, they are
still far below what middle class would be classified as in the United States. Brazilian’s are
considered middle class if they are making anywhere from about $900 to $3,800 a month. 5
This class of people isn’t considered to be ones that will be able to afford two cars or many
hobby related assets. They need something that is a lower budget and still within their
budget each month. This is one great reason a motorcycle company could do well within
the growing middle class. Brazilians need to have transportation that is affordable, efficient,
and stylish.
Members of the growing middle class consist of younger, well-educated, and higher-paid
people. They have been given more consumer credit offerings, which increases their
purchasing power. They are also willing to spend their disposable income. They really want
to spend all they can, when a survey was taken, they were asked what would the Brazilian
middle class consumers do with additional income? They replied with “I would spend it, I
1 http://www.investopedia.com/terms/m/marketsegmentation.asp
2 https://managementmania.com/en/vrio-analysis
3 https://www.mindtools.com/pages/article/newSTR_89.htm
4 www.wsj.com/middleclassbrazil
5 www.mckinseyonmarketingandsales.com
would buy bikinis, shorts, and summer clothes, I would not invest it, that’s for sure!” 6
Brazilian middle class all see spending money and shopping as it is improving their life.
They love being able to spend money and feel better when they can shop. Being able to buy
things is directly related to their social standing. If they show others that they have both one
car, and one motorcycle, this would increase their social standing, and save them money.
They could even have two motorcycles and still save more than what others pay when
having two vehicles. Brazilian growing middle class wants to feel as though they aren’t
middle class, they will purchase something significant monthly, weekly, or even daily, just
to keep their social standing. They will even go as far as using overdraft checks or their
entire credit limit just to buy something they feel will give them instant gratification.
Their biggest and most desired dreams are to own a house and vehicle. If they were to have
something more affordable, such as this motorcycle, they could achieve one of their
dreams, and continue working for the home. They often feel paralyzed or lost when it
comes to dreaming big enough such as owning those items. This idea, is bringing those
dreams closer, and creating a feeling of relief for those people.
PRODUCT STRATEGY
Our product strategy will be built using models that have been proven by other industries
and by other products in Brazil. “Brazilian consumers have proved that they want
novelties.” 7 For this reason we will make sure our products are seen as “the new kid on the
