Brazil is a country that is always open to novelties and innovations among the market’s sectors. But first of all, to open a business in the country, it is necessary to understand the market in which you will focus and adapt to its particularities.
According to a survey by the renowned global brands consultancy Futurebrand about the importance of the origin of the brands, when consumers were asked about the purchase of products and brands from their own countries, consumers of developed countries valued and prefered products from their own countries. However, consumers in developing countries such as Brazil, showed preference for products and brands from foreign countries. This fact opens the market further for foreign businesses who want to start a business in Brazil. However, there are a few things the business owner should be aware of.
When foreign investors decide to expand to other countries, it is common that they are concerned about the bureaucratic side of their business such as laws and taxes, and tend to forget that communication and brand positioning are two of the main factors for success and for gaining market prominence. Therefore, they should also receive the necessary attention.
It is common that the company has great success in its origin country or elsewhere abroad, but when they arrive in Brazil, the company doesn’t gain market attention. The solution is often communication planning that has to be done to reach this new consumer base and also to show that the company is aware of the country’s particularities, despite itself being a foreign company.
Corporate communication and positioning are extremely important because they show that the company stands out for its innovations and understands the needs and desires of its consumers, which in this context may have different priorities depending on the country. Therefore, the importance of research and planning.
Shell is an example of a multinational company that in Brazil had to create a specific communication plan for Brazilian suppliers. This communication plan had some actions, for example, business events to get closer to this audience, considering the fact that in Brazil companies in the oil and gas sector need to have a minimum percent of local content.
Tips on how to position your company in Brazil
An important issue about communication is the language. It is essential that your company adapt to Portuguese, the official language in Brazil. Remember that there are differences between the Portuguese language spoken in Brazil and the Portuguese spoken in other countries such as Portugal.
Another important thing is the brands points of contact with its target. Brazilian consumers like to interact with their favourite brands and to learn more about the company. Therefore, it is essential that your website and social networks are updated regularly with a well-defined visual identity so that your Brazilian audience recognize your brand as strong.
Strategic planning towards different social classes in Brazil
In Brazil the differences between the social classes is very defined. It is common to call these classes A, B, C and D. The A and B classes are the upper classes and the C and D are the lower classes.
In addition, when we talk about consumer products and services inside this context, it is important to know whether you are targeting the upper or lower or sometimes for both. For example, the same brand may have a product for class B and another for class C. What also happens is that first, the company has a positioning directed for the class A and then change the target or something else which changes the positioning to class C.
C&A is an example of a multinational (Dutch) company that has a strong audience in Brazil, but had to change its target class. The company, which has more than 200 stores in Brazil, repositioned itself from being associated to class C, in an attempt to approach class B. In this repositioning, the brand started to do fashion collections in partnership with well known Brazilian and International fashion designers and celebrities.
As a result, the brand achieved the objective and nowadays not only have the class C as an audience, but also class B, what increases profits. This is why you have to be attentive about the differences and preferences between the classes in Brazil.
How to begin
If you want to expand your business to Brazil you must have a solid communication plan that shows above all, your market differential. The idea is to search for Brazilian companies that provide strategic communication services which can help your brand adapt itself and gain prominence in the country.
JAL Design is an example of a company that has experience in offering a quality service in strategic communication plan and branding. JAL Design develops websites, advertising material, branding creation and project and strategic communication planning according to the company’s needs.
This article was written by Judith Adler Levacov from Jal Design.