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2009 Company Plans: Expansion Into Brazil

2009 Company Plans: Expansion Into Brazil. About Our Company. Who Are We? . Invigoration: Business Description. Personal products industry Manufacturing and marketing of personal products Middle-end personal products Specializing in cosmetics Hair Care, Skin Care, Fragrances

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2009 Company Plans: Expansion Into Brazil

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  1. 2009 Company Plans:Expansion Into Brazil

  2. About Our Company Who Are We?

  3. Invigoration: Business Description • Personal products industry • Manufacturing and marketing of personal products • Middle-end personal products • Specializing in cosmetics • Hair Care, Skin Care, Fragrances • Products at reasonable prices for superior quality • Change from a Domestic Business • Slogan : Invigorate Yourself.

  4. Invigoration: Business Description Cont’d • Available many locations in Canada • INVIGORATION’s extensive distribution channels primarily made of pharmacies and department stores • INVIGORATION not only enhances the beauty of our customers, but also has great looking and innovative packaging • Extensive R&D • INVIGORATION unique in developing lines for specific occasions

  5. INVIGORATION: Ownership/Management/A History • Incorporated under the laws of Ontario 2000 • Equal partners: Janis Chung and Victoria Craig • Our strong passion in cosmetics brought forward ideas of producing quality cosmetics at reasonable prices • International Demand • Brining the brand to South America, not only greater potential sales, but ability to help this country with job creation and economy stimulation

  6. INVIGORATION: Mission Statement/Vision Statement Mission Statement At INVIGORATION, we strive to be a leader in the cosmetic and personal products industry. We will achieve and deliver the highest value to our costumers, employees, shareholders, and society by providing products of the utmost quality. We are committed to delivering high quality personal products at reasonable prices, while stimulating economies and providing jobs for the countries to which we sell our products.

  7. INVIGORATION: Mission Statement/Vision Statement Con’t Vision Statement It is our vision to become a worldwide leader of cosmetics and personal products. We strive to become an internationally-recognized company for going the furthest to provide products that deliver the utmost quality and the greatest satisfaction to our customers. We will become a company that will help every man or woman express their beauty and invigorate themselves.

  8. INVIGORATION : PRODUCTS Cosmetics: • Eye Products: Shadows, Liners, Mascaras • Lip Products: Gloss, Liner, Lipsticks • Face Products: Foundations, Concealers, Powders Skin Care: • Moisturizers • Acne Reducers • Exfoliators • Cleansers

  9. INVIGORATION : PRODUCTS CONT’D Hair Care: • Hair Treatments • Shampoos/Conditioners • Hair Sprays/Mousses Fragrances: • Eau de Toilettes • Sprays/Mists • Scented Creams

  10. INVIGORATION: Future Plans & Rationale for International Expansion • Demand for the product in other markets from enormous success in Canada • Step-by-step approach in expanding • Next market: Brazil • Brazilian Lines (esp. Carnival line) • Domestic Co. -> Exporting Co.

  11. Host Country Profile: Brazil Why Brazil?

  12. INVIGORATION: All About Brazil • Largest within South America • Most populated (200 million) • Eastern South America • Leading economy in South America • Agricultural & industrial growth • BRIC • Median age: 28 years old • Culture : football (soccer), beaches, Carnival

  13. INVIGORATION: The Brazilian Economy • Free market economy • 10th largest GDP • $10 500 GDP Per Capita • Advanced mining, agriculture, manufacturing, service sectors • 9.3% unemployment, labor force 99.23 mil • Trade Surplus $40 bn • Part of BRICs • Oil • 6% risen inflation due to strong consumer spending • Slowing unemployment, easier credit, increasing income

  14. INVIGORATION: Brazil’s Political Stability • Generally politically stable • Preside Lula da Silva 78% approval rating • High crime rate in “slum” areas • July & August “wave” of attacks • Previous attacks by PCC • Changes in process reducing crime rate • Accelerate Growth Program (PAC) • Brazil known for maintaining good relationships with neighborign countries

  15. INVIGORATION: Brazilian Culture • Lively & widely celebrated • Ethinic mix began with Native Americans, Portugese, Africans • Multicultural • Catholicism • Soccer • Carnival • Revillion • Brazilian line of more eccentric colors and lines • Customize for their culture • Beaches (-waterproof)

  16. INVIGORATION: Brazilian Competitors • Brazil has large makeup industry • NaturaCosméticos S/A leader $1.3 billion revenues • International Competitors: • Unilever • Avon • Beiersdorf • L’Oréal • Competitive advantage

  17. INVIGORATION: Brazilian Infrastructure • Poor condition • Roads main priority to the Brazilian government • 66.3% highways considered in “deficient” position • 2007 report by World Bank, infrastructure investments 1% GDP, recommended 3.2% • PAC Program to stimulate and increase economic growth • 26% investment increase to the $636.2 billion USD by 2010 • Decent air transportation 21 international airports • Guarulhos International Airport at São Paulo and Galeão International Airport at Rio de Janeiro

  18. INVIGORATION: Brazilian Infrastructure Cont’d • Decent telecommunication (and improving) • 1999 telephone service privatized • +138 television stations (advertising opportunities) • Computer products top imports • 41% of regional market internet users • 7th place for greatest internet use, 50 million • Growing demand for computer and internet • Good for communicating with company HQ

  19. INVIGORATION: The Brazilian Industry • Large industry, large demand • 2006 determined Brazil would be the 3rd largest beauty market by the end of 2008 • Currently 4th largest in the world • 2006 Cosmetics sales growth 12.3% • 2006 sales $8.28 billion in USD according to ABIHPEC • 90% women find cosmetics to be essential (avrg 77%) • Most “vain” • 2005 growth of market 34.2% (8.2% avrg)

  20. INVIGORATION: Brazil’s Service Modifications • Lines created to fit the Brazilian lifestyle • Ex. Carnival & Waterproof • Different Brazilian Lines celebrate their ethnicities and cultures

  21. INVIGORATION: Target Markets • 66.8% age structure 15-64 (+50% female) • Median age 29 years old • Target market 15-30 • Younger target market (eccentric and vibrant) • Eventually new markets (new lines or brands) • Average Income Women

  22. INVIGORATION: Pricing Strategy • Fourth largest cosmetic market worldwide, priority to women • Lower cost pricing strategy to afford • Similar to AVON and other department store brands

  23. INVIGORATION: Positioning in Brazil • Similar strategy to AVON • Benefit and target positioning • Benefits: colour schemes, waterproof, broad variety colours • Target positioning • Reflect outgoing, young individuals (those who are more the party type) • Distinctive positioning

  24. INVIGORATION: Promotional Activities • Strong promotional activities to gain public awareness and a strong brand name • Giveaways and samples at celebrations, soccer games, events • Sponsor floats at the Carnival • Advertising in RevistadaFolha (magazine) • Television ads • Billboard ads

  25. INVIGORATION: Distribution • Pharmacies and department stores • Wal-Mart (+330 locations in Brazil) • Flagship boutique opening along popular beaches (Copacabana)

  26. INVIGORATION: Manufacturing • All Brazilian products manufactured in Brazil • Cost effective and to stimulate economy and job creation • Cheapest manufacturing states in Brazil : Paraná, Santa Catarina and Rio Grande do Sul

  27. INVIGORATION: Transportation • Roads • Trucks and ships from manufacturing plants to main cities where sold

  28. INVIGORATION: Management • Polycentric approach • Initially employees sent from headquarters to train and educate host-country nationals

  29. INVIGORATION: Brazilian Legal Factors • Founded on European principles • Based on Roman codes/traditions • Portuguese civil laws • Not yet accepted International Court of Justice jurisdictions • Awareness of advertising laws in Brazil

  30. INVIGORATION: Contributions to Brazil • Unique international company in differentiating products from other market by giving back to the Brazilian people and economy • Create jobs • Stimulate economy • Ingredients from local farmers (ex. Acai, Guava, Passion Flower Seed Oil & Brazil Nut Oil) • Community Trade • Promote renewable farming practices • Preserve natural resources

  31. Contact Information:Janis Chung / Victoria Craig

  32. INVIGORATION: WORKS CITED • "Booming Brazilian Internet Infrastructure Market Could be Next Logical Step for American Internet Companies." BNet. 5 Apr. 2000. 5 Dec. 2008 <http://findarticles.com>. • "Brazil." Amazon Adventures. 6 Dec. 2008 <http://amazonadventures.com>. • "Brazil." CIA World Factbook. 4 Dec. 2008. 10 Dec. 2008 <http://www.cia.gov>. • "Brazil Infrastructure, power, and communications." Nations Encyclopedia. 6 Dec. 2008 <http://nationsencyclopedia.com>. • "BrazilJudicial System." Nations Encyclopedia. 6 Dec. 2008 <http://nationsenencyclopedia.com>. • "Brazil risk: Political stability risk." TMC News. 20 July 2006. ECONOMIST INTELLIGENCE UNIT. 6 Dec. 2008 <http://www.tmcnet.com>. • "Brazil set to be world's third largest beauty market by 2007." 23 May 2006. Cosmeticsdesign-Euro. 2 Dec. 2008 <http://cosmeticsdesign-euro.org>. • "Brazil." Wikipedia. 5 Dec. 2008. 6 Dec. 2008 <http://en.wikipedia.org>. • "Brazilian beauty companies continue to boom." Cosmetic Design. 15 Feb. 2007. 6 Dec. 2008 <http://cosmeticdesign.org>. • "Brazilian Market." ABIHPEC. Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry. 29 Nov. 2008 <http://brazilianbeauty.org.br>. • "Brazilian Sales of Cosmetics Grew By 12.3%." Beauty-On-Line. 13 Feb. 2007. 27 Nov. 2008 <http://www.beauty-on-line.com>. • "Brazilian Women Vainest In World Study." RedOrbit. 3 Sept. 2003. 6 Dec. 2008 <http://www.redorbit.com>.

  33. INVIGORATION: WORKS CITED • "BRIC." Wikipedia. 6 Dec. 2008. 9 Dec. 2008 <http://en.wikipedia.org>. • "Consumer spending rises in Brazil." Entrepreneur.com. 1 July 2006. 9 Dec. 2008 <http://www.entrepreneur.com>. • "Cosmetics and Toiletries in Brazil." Euro Monitor. May 2008. 6 Dec. 2008 <http://www.euromonitor.com>. • "Culture of Brazil." Wikipedia. 4 Dec. 2008. 27 Nov. 2008 <http://en.wikipedia.org>. • Delfeld, Carl. "Brazil Best of the BRICs." Best Ways to Invest. 28 Nov. 2008 <http://www.bestwaystoinvest.com>. • "Doing Business in Brazil." Maria-Brazil. 3 Dec. 2008 <http://maria-brazil.org>. • "In Rio slum, Brazil's Lula pledges end to neglect." Reuters UK. 4 Dec. 2008. 6 Dec. 2008 <http://www.uk.reuters.com>. • "Investing in Brazil." Investing in Brazil. WikiInvest. 6 Dec. 2008 <http://www.wikiinvest.com>. • "Lauren Hutton." Lauren Hutton. 6 Dec. 2008 <http://www.laurenhutton.com>. • "Law of Brazil." Wikipedia. 25 Sept. 2008. 6 Dec. 2008 <http://en.wikipedia.org>. • Loguercio, Edgardo, and Chen Weihua. "Brazil to strengthen investment in infrastructure amid global crisis." News. 12 Apr. 2008. 6 Dec. 2008 <http://www.news.xinhuanet.com>. • "Make Up In Brazil To 2011." Research and Markets. 6 Dec. 2008 <http://researchandmarkets.com>. • "Manufacturing in Brazil: Personal account, advice." Control Engineering. 2 Jan. 2008. BerendBracht, Bosch Rexroth Corp. 2 Dec. 2008 <www.controleng.com>.

  34. INVIGORATION: WORKS CITED • "Natura – Natural success in Brazil." World Business Council for Sustainable Development. 15 Sept. 2008. World Business Council for Sustainable Development. 6 Dec. 2008 <http://www.wbcsd.ch>. • "Natura." Wikipedia. 13 Nov. 2008. 6 Dec. 2008 <http://en.wikipedia.org>. • Pitmat, Simon. "Brazil cosmetics market remains a hot spot for investors." 10 July 2008. 6 Dec. 2008. • "Unilever." Wikipedia. 4 Dec. 2008. 6 Dec. 2008 <http://www.en.wikipedia.org>. • "Booming Brazilian Internet Infrastructure Market Could be Next Logical Step for American Internet Companies." BNet. 5 Apr. 2000. 5 Dec. 2008 <http://findarticles.com>. • "Brazil." Amazon Adventures. 6 Dec. 2008 <http://amazonadventures.com>. • "Brazil." CIA World Factbook. 4 Dec. 2008. 10 Dec. 2008 <http://www.cia.gov>. • "Brazil Infrastructure, power, and communications." Nations Encyclopedia. 6 Dec. 2008 <http://nationsencyclopedia.com>. • "Brazil risk: Political stability risk." TMC News. 20 July 2006. ECONOMIST INTELLIGENCE UNIT. 6 Dec. 2008 <http://www.tmcnet.com>. • "Brazil set to be world's third largest beauty market by 2007." 23 May 2006. Cosmeticsdesign-Euro. 2 Dec. 2008 <http://cosmeticsdesign-euro.org>. • "Brazil." Wikipedia. 5 Dec. 2008. 6 Dec. 2008 <http://en.wikipedia.org>. • "Brazilian beauty companies continue to boom." Cosmetic Design. 15 Feb. 2007. 6 Dec. 2008 <http://cosmeticdesign.org>. • "Brazilian Market." ABIHPEC. Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry. 29 Nov. 2008 <http://brazilianbeauty.org.br>.

  35. INVIGORATION: WORKS CITED • "Brazilian Sales of Cosmetics Grew By 12.3%." Beauty-On-Line. 13 Feb. 2007. 27 Nov. 2008 <http://www.beauty-on-line.com>. • "Brazilian Women Vainest In World Study." RedOrbit. 3 Sept. 2003. 6 Dec. 2008 <http://www.redorbit.com>. • "BRIC." Wikipedia. 6 Dec. 2008. 9 Dec. 2008 <http://en.wikipedia.org>. • "Consumer spending rises in Brazil." Entrepreneur.com. 1 July 2006. 9 Dec. 2008 <http://www.entrepreneur.com>. • "Cosmetics and Toiletries in Brazil." Euro Monitor. May 2008. 6 Dec. 2008 <http://www.euromonitor.com>. • "Culture of Brazil." Wikipedia. 4 Dec. 2008. 27 Nov. 2008 <http://en.wikipedia.org>. • Delfeld, Carl. "Brazil Best of the BRICs." Best Ways to Invest. 28 Nov. 2008 <http://www.bestwaystoinvest.com>. • "Doing Business in Brazil." Maria-Brazil. 3 Dec. 2008 <http://maria-brazil.org>. • "In Rio slum, Brazil's Lula pledges end to neglect." Reuters UK. 4 Dec. 2008. 6 Dec. 2008 <http://www.uk.reuters.com>. • "Investing in Brazil." Investing in Brazil. WikiInvest. 6 Dec. 2008 <http://www.wikiinvest.com>. • "Lauren Hutton." Lauren Hutton. 6 Dec. 2008 <http://www.laurenhutton.com>. • Loguercio, Edgardo, and Chen Weihua. "Brazil to strengthen investment in infrastructure amid global crisis." News. 12 Apr. 2008. 6 Dec. 2008 <http://www.news.xinhuanet.com>. • "Make Up In Brazil To 2011." Research and Markets. 6 Dec. 2008 <http://researchandmarkets.com>.

  36. INVIGORATION: WORKS CITED • "Manufacturing in Brazil: Personal account, advice." Control Engineering. 2 Jan. 2008. BerendBracht, Bosch Rexroth Corp. 2 Dec. 2008 <www.controleng.com>. • "Natura – Natural success in Brazil." World Business Council for Sustainable Development. 15 Sept. 2008. World Business Council for Sustainable Development. 6 Dec. 2008 <http://www.wbcsd.ch>. • "Natura." Wikipedia. 13 Nov. 2008. 6 Dec. 2008 <http://en.wikipedia.org>. • Pitmat, Simon. "Brazil cosmetics market remains a hot spot for investors." 10 July 2008. 6 Dec. 2008. • "Unilever." Wikipedia. 4 Dec. 2008. 6 Dec. 2008 <http://www.en.wikipedia.org>.

  37. INVIGORATION: Works Cited Pictures • http://images.google.ca/imgres?imgurl=http://www.internationaleducationmedia.com/images/brazil_logo.jpg&imgrefurl=http://www.internationaleducationmedia.com/brazil/&usg=__S-XGtHp-5WKcUYzWBCy4z8SXS3s=&h=336&w=448&sz=58&hl=en&start=18&tbnid=e1et2jGi94MRrM:&tbnh=95&tbnw=127&prev=/images%3Fq%3Dbrazil%26gbv%3D2%26hl%3Den • www.venezuelanalysis.com • www.coolchaser.com • www.destination360.com • www.bugbog.com • www.theinterpretersfriend.com • united-children.blogspot.com • profile.myspace.comfashiontribes.typepad.com • web.piczo.com • www.enviroblog.org • your-cosmetics.com • teamsugar.com • Youtube.com • http://images.google.ca/imgres?imgurl=http://www.clker.com/cliparts/b/7/e/4/1194984908683104165flag_of_brazil_rodrigo_t1.svg.med.png&imgrefurl=http://www.clker.com/clipart-2765.html&usg=__zrI-iVslZyproKoCkoeU32TQNeE=&h=210&w=300&sz=13&hl=en&start=39&tbnid=A_nHaq7WBmVtIM:&tbnh=81&tbnw=116&prev=/images%3Fq%3Dbrazil%2Bclip%2Bart%26start%3D20%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN • http://ccc.byu.edu/prelaw/law.jpg • www.ELcompanies.com • Lorealparis.com • flickr.com/photos/33003674@N00/2346489539 • http://www.cbc.ca/olympics/soccer/story/2008/07/10/canada-brazil.html

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