1. Ana Beatriz Andreata Moraes
05/28/2012
BUS 245
Dr. Paul Gerhardt
BRAZIL

2. Brazilian Perception
EXPECTATION REALITY

3. EXPECTATIVE
Federative Republic of Brazil
Discovered in 1500, April 21 by Pedro Alvares
Cabral.
Became independent in 1822.
8,514,877 km of Area.
Localized in South America.

5. 205,716,890 people.
Miscegenation: African, Asian, European, and Native Indian
influences.
Language: Portuguese
Ethnic Groups
Black Main Religions
6.20%
1.30%
5.40%
53.70%
Mulatto
38.50%
Catholic
53.70%
Other 73.60% Protestant
0.90% Spiritualit
Unspecifi
ed

6. Executive : President Dilma Rouseff. (Elected Each 4 Years)
Legislative: National Congress and Federal Senate.
Judicial: Supreme Federal Tribunal.
1989 Constitution: Freedom of Speech,
press and Religion.

7. Mixed Economy.
Government Controls: Power generation, Oil
extraction, Mining, Water Supply, and Telecommunications.
Currency: REAL / US$1 = RS 1,99
Member of: BRICS, WTO, and FTAA.
GDP: US$ 2.2 trillion
GDP per Capita: US$ 10.800

8. Do not confuse Portuguese with Spanish;
Brazil has strong Family feelings;
Build relationships is important;
Do not refuse coffee;
Dress for Success;
High concern for Soccer and Sports;
Low Concern for Time.

9. TOP 10 Countries (in TOP GOODS
billions)
Mineral Fuel and Oil
• China (US$ 28) Machinery
• United States (US$ 17) Iron and Steel
• Argentina (US$ 16) Woods
Agriculture
• Netherlands (US$ 9)
• Germany (US$ 7)
• Japan (US$ 6)
• U.K. (US$ 4)
• Italy (US$ 3)
• Russia (US$ 3)
• Spain (US$ 3)

10. Main Importations
Fuel and Oil;
Mechanical Equipment;
Electrical Equipment;
Vehicles and parts;
Organic and Inorganic Chemicals;
Plastic and products;
Optical and precisions Products;
Pharmaceutical;
Fertilizers

11. Havaianas shoes are famous slippers from Brazil. Because of its
versatility of colors and models, it conquered the world.
The responsible company for Havaianas is Alpargatas S/A.
Its way of selling is exporting through franchises.
With more than 90 models, it already sold 173 million of pairs just
in 2011. It is 6 pairs per second in more than 80 countries.

12. If someone from Washington State wants to import it:
The tariff for shoes importation in Washington is 10%;
The most effective way is through Franchises;
The franchise taxes is about US$15000;
The installation of the store is US$125.000 – US$ 200.000;
2% of the profit should be used for the society;
Pay back: 24 – 36 months.

13. Stores should follow the standard (60 – 80m) and visibility.
Each country has ONE Havaianas’ distributor. All the products go to
the distributor Kerry Sengstaken in California through ship
containers.
The rest of the countries receive its shoes by trucks.
The inventory is possible because the shoes are not perishable. All the
received shoes are stored in a building in California waiting for the
requests.
The products are fabricated in Campina Grande – Brazil.

14. The marketing used for the brand is the slogan: “The
Original”, because there are several kind of slippers, but
none of them are Havaianas.
Newspapers, magazines, TV Advertisements, YouTube
videos are used. All advertisements are colorful and show
good moments or advantages achieved because of the
slippers.
In Washington States advertisements, the strategy is to
show that Havaianas is something exclusive.
Other ways of marketing are: no mass publicity, support to
sport events, partnership with MTV for visualization, and
partnership with famous styles and magazines, such as:

16. The main challenges for the opening of the store are:
bureaucracy, planning, purchasing and inventory, need of renewal
creativity, and the need to take decisions with the franchisor.
To be successful is necessary the importation and selling in
cities with more than 200.000 people.
The business profitability is 12% to 15%.

17. Poverty (8.5% population in extreme poverty);
Environment Issues: need to reduce quantity of gas emission
in 30%, and new Forest Code that affect Amazon Forest;
Low Education rates;
Huge corruption rates;
Real Corruption
Images (2009)

18. In 2014, the Soccer World Cup will be hosted by Brazil;
In 2016, the Olympics will be hosted by Brazil;
The investments in the country are being made, the country just
need to show that is worth of it.