Lotus bakeries is looking for new markets to sell its traditional waffles. Why Brazil would be an appropriate market? Brazil is the 10th most important economy in the world. The financial policies leaded by Lula, established the trust in the Brazilian market. The economic growth was around 0.5% in 2003 and reached 3.3 in 2005. Brazil has historically been one of the preferred countries for foreign investors. Retail and consumer, and particularly the food and beverage segment, is the most attractive sector for FDI in Brazil in 2005 with more than 5 billion US dollars invested. Currently, the Brazilian property market is very attractive for both, local and foreign investors. In general, foreign or local investors are welcome and treated equally as regards investments incentives or tax concessions. Very few restrictions are imposed on foreign ownership.
If you settle in Brazil the main direct and indirect taxes applicable are:
[...] Snacking is part of the culture (some families have 3 snacks per day) Weaknesses Unknown in the market, new concept for the market: can be rejected by the consumers Lack of local partners ►Brand weakness in Brazil Threats Competitors such as “Bauducco”, “Break which are on the market for a long time and offer more or less the same kind of products (snack, cookies, biscuits Low wage-level in general, middle-upper and middle class are just a small part of the population. [...]
[...] Moreover, income per capita in Brazil has increased during the past years and is expected to continue to grow in the medium term as a result of the expected economic growth. Besides, Brazil is nowadays a low risk country; it won't be dangerous to launch the product on this new market: Risques politiques Risques commerciaux Faibles Faibles Elevés Elevés SWOT analysis Strength ►Lotus Bakeries' business consists of providing authentic specialties from the biscuit and cake world. Strong brand that already constitutes 75% of the total turnover of the group. [...]
[...] We will focus on the main cities because more than 80% of the population in Brazil is urban and approximately 30% live in the ten principal metropolitan areas. The metropolitan areas of São Paulo and Rio de Janeiro have populations of around 19 million and 12 million. (See appendix 3). Moreover, between these cities, there are good transport infrastructures whereas in the rest of the countries roads are not that well developed. Promotion Two different channels will be used for the promotion: commercials on TV. [...]
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