Case Study Havaianas: A Brazilian Brand Goes Global Essay

foreland 1What figures could inform the success of Havaianas in becoming a global fire dirt?1.) Stable and healthful developed economic background finished acquisitions and expansions lead to a huge sandal mart sh ar * Sao Paulo Alpargatas exists since 1939, specialization in quartette business units (sandals, sporting goods, industrial cloth and retail) * Controling Shareholder (67%) Camargo Correa Group with operation in 20 countries * Acquisition of Companhia Brasileira de Sandalias (Dup brand) in 2006 leads to ontogenesis assign in the Brazilian passing play flop securities industry * Acquisition of 60% of Alpargatas Argentina to expand in Latin America2.) Long experience and know-how in manufacturing sandals and producing the special guard * Own operating(a) and logistical framework* Extension of the manufacturing fructify in 2007 ( capability to produce 212 wiz million million million pairs of sandals annually) * crossingion in the northeasterly of Brazil, Sa nta Rita, in order to reduce costs, increase harvest-homeivity and further streamline the logistic lucre * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes3.) crossroad innovation* From unrivaled style with fiver colors to 509 new models of sandals and sport footgear* Different designs and colors* Special editions4.) Product properties* Low price affordable* Durability, buirdly* Comfortable* Trademark in 1962* billet for the poor, outside work (coffee hit pickers and blue collarworkers), all twenty-four hour period shoes* For hot and wet last5.) Repositioning of the brand (1994)* Before whiz style and five colors, poor advert of sales execution and functional found advertisement, image of a cheap harvest that can be bought everywhere* Havaianas buy the farm, matching sole and strap* in 13 colors* slight tribute price* advertising showing pep pill associate consumers and celebrities wearing Havaianas* upgrade through and t hrough better packaging* new sales channels with more emotional consideration* Continuous product innovation* insertion of new designs (80 styles)* Incorporation of world means trends* Changing costumers* Opinion leaders, celebrities and upper class costumer wear Havaianas non save at home, but in umpteen places and occasions* Free publicity from fans ( internationalist mould and movie stars)* International way magazines, catwalk, MTV melody Awards and the Hollywood Oscars 2003* dialogue* 12% of the perturbation was spent for merchandising* Buzz marketing and advertising with electronic media* Local and international celebrities* Online advertising, youtube videos, * Co-branding Havaianas was linked to ecological causes due to IPE contain editions and limited editions by famous artists, that financed favela projectsQuestion 2How far goes the company in terms of expanding the brand?1.) 1960 export to Latin America2.) 1990 tourism to Brazil increase and Havaianas were br ought home 3.) 1998 big export to France* europium (major markets are Italy, Portugal, France, Spain, Switzerland, Netherlands)* At the Soccer military personnel Cup of 1998 Havaianas with the Brazilian flag on the strap became an instant hit 4.) Communication strategy change* Europe, France* Independently managed markets (local entrepreneurs)* European subsidiary to harmonize the brand strategy, advertising, product and price positioning* In 2001 Tudo Bem was complete as an official importer* Cooperation with leading designers from fashion to luxury * Sponsorships (events at trendy discotheques, visualize hotels, gyms)* Customize your own Havaianas* US* Havaianas became a must wear* In 2004 drift West, exclusive distributor, equipped celebrities and designers apiece season with the hottest colors* In 2007, entry in the US market with a guerilla marketing strategy* In order to catch college students, the brand had to be authentic, over-promotion can make a brand less cool* The US market is extremely interesting because of the huge price, that costumers are willing to pay up to $30* Asia* Countries with the ideal Havaiana weather Philippines, Singapore, Malaysia, Indonesia, Thailand* Hot and humid weather and similar footwear conclusion to Brazil* Philippines is the just market with an pregnant level of sales* Reason of Haivaiana the break off Large middle class or below and many branded US, EU and Asian competitors as salubrious as cheap and unbranded Chinese entrepreneurs* japan* Fashion conscious and hot and humid weather* Limited editions exclusively for japan with Chiso* Advertising and buzz marketing techniques5.) 2007 20.000 stores in over 65 countries Main markets Brazil, US, Australia, Latin America Question 3 How sustainable is their competitive profit?1.) Consumers love the do in Brazil factor* This is one of the most sustainable factors of Havaianas competitive improvement as long as the peremptory Brazilian image not changes 2.) lar ge size than its competitors Economies of Scale* This success factor is big(a) to replicate and creates a sustainable competitive value as well as a cost return * Production in the northeast of Brazil, Santa Rita, in order to reduce costs, increase productiveness and further streamline the logistic mesh topology * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes 3.) larger market share than its competitors Expansion of the market share through the acquisition of former(a) flip flop companies * Due to the Economies of dental plate* Due to advertising and branding4.) rummy brand positioning* Celebrities and opinion setters hurt already adapted the trend, this competitive advantage is effective and persuasive but only as long sustainable as Havaianas are not replaced by other footwear brands * Production in the northeast of Brazil, Santa Rita, in order to reduce costs, increase productivity and further streamline the logistic network * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes5.) Continuous product innovation* Adaption to existent tendencies and trends is the best protection of keeping ones reputation and market share.6.) Top-secrete rubber recipe* Sustainable competitive advantage as long as at that place is no better recipe.7.) Authentic still and quality* Authentic image not at least due to ecological conscious co-branding.Havaianas have the biggest market share because their customers are convinced of the quality, price (in Brazil) and in emotional value. This package is one of the keys of the brands success and is only hard to replicate of its competitors.