![]() In 2010, the country’s GDP increased to $2.194 trillion from $ 2.041 in 2009. Due to the governments’ commitment towards ensuring that the country attains economic recovery, Brazil has managed to increase its Gross Domestic Product (GDP). The country’s economic growth was affected by the 2007 economic recession. As a result, the country has been able to achieve a number of macroeconomic goals such as attaining macroeconomic stability, reduce its debt burden and increase its foreign currency reserves. Since the onset of the new millennium, Brazil’s economic growth has been on an upward trajectory. The country’s core economic sectors include manufacturing, agriculture, mining, and the services sector. Brazil is the largest economy within South America (Rathbone & Wheatley, 2010, para.1). The Brazilian government is committed at enhancing the country’s economic growth in an effort to eliminate poverty. Currently, Brazil is experiencing a high rate of economic growth. The high market potential for biscuits in Brazil is also as a result of the country’s economic growth. The market growth being experienced is an indication that the Brazilian biscuits market has not been fully exploited. Despite the fact that 98 per cent of all Brazilian households consume different flavors of biscuits, the industry is undergoing a modest growth (Bharat Book Bureau, 2010, para. ![]() Brazil is the market leader amongst the BRIC economies with regard to the value of biscuits consumed. This shows that the supply for biscuits in Latin American countries is low. Of this, biscuits account for approximately 14 per cent of the total amount supplied in the market. Processed food products in Latin American countries account for approximately 33% of the total baked products in the market. The Brazilian market presents a viable market opportunity for Arnott’s to venture. One of the South American countries that Arnott’s identified to present a feasible market opportunity is Brazil which is a member of BRIC. Considering the competitive nature of the biscuit industry, Arnott’s management team has considered improving the firm’s competitive advantage.įindings of a market research conducted by the firm’s marketing department on the prevailing market potential within the biscuit industry in BRIC (Brazil, Russia, India and China) economies revealed that there is a feasible market opportunity in South America. Some of the countries in which the company has ventured into include Canada, England and some Asian countries such as Israel, Russia and India. In an effort to develop a high competitive advantage, the firm’s management team has incorporated the concept of internationalization in its strategic management. A marketing entry program that will be used in venturing the Brazilian market is also illustrated. A budget outlining the cost of creating market awareness is also illustrated. The marketing plan illustrates the various marketing mix strategies adopted by the firm in an effort to ensure that the products successfully penetrate the market. In its initial expansion phase, Arnott’s intends to introduce its Tim Tam products to Brazil using exportation as its core market entry mode. The country’s biscuit industry has not been fully tapped which means that there is a substantial market potential. ![]() This has led to employment creation and hence an increment in the consumers disposal income.ĭespite the 2007 global economic recession, Brazil has undergone through a significant economic recovery. Over the past decade, Brazil has experienced a significant economic growth. ![]() Decision to select Brazil as the favorite investment destination amongst the BRIC economies arose from the current economic growth that the country is experiencing. ![]()
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