The Brazilian market:
Brazil remains a market that holds great potential for IKEA but to be successful, a company hasto carefully investigate related information before getting into this market. The 12C framework for analyzing international markets proposed by Doole &Lowe (2008) is applied to examine theBrazilian market.Table 2: 12C framework for analyzing the Brazilian market1. Country: |
* Brazil belongs to Latin America, the Americas. It is Latin America’s largest market and theworld’s fifth
-most populous country * The economy of the country is one of the w
orld’s tenth
-largest economies in GDP terms * There is a large middle class population which is mainlyinvolved in profession such as retailing, civil services and other skilled occupation * However,earnings is inequality and Brazil is also one of the wor
ld’s most unequal countries |
2. Concentration: |* According to geographical position, the Brazilian market can be separate into South-Centraland North-East * The South-Central is generally similar to the less rich parts of Southern Europe,whereas the North-East is in contrast * The market can be separated into three main categories:residential (60%), office (25%), and institutional organizations (15%) |3. Culture/ Consumer behavior |* The country has almost all features of Latin America. * There are problems influencing on
Brazilian consumers’ shopping habits such as energy, bad traffic jams… Besides, an important
point is that middle-class Brazilians are more conscious of status than middle-class NorthAmericans or Europeans because they are people who serve others. So when opening a store, thefirm should not make it as for the rich people or for the poor * Many low-income consumers donot own cars. So like Chinese market, the organization should carefully consider where to locateits stores |4. Choices: |* From numbers of Brazilian Furniture Association, IKEA will encounter approximately 13500competitions in manufacture furniture. However, almost...