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Global Business Marketing And Policy

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Question:

Discuss about the Global Business Marketing and Policy.
 
 

Answer:

Introduction:

Brazil is a fast rising economy in the South America with a population greater than one million, and currently, it's the fifth largest country in popularity after China, India, United States, and Indonesia. Additionally, the country's Gross Domestic Product (GDP) is great considering its consumer's Purchasing Power Parity (PPP), thus, making it the seventh largest economy globally (Chequer, 2012). Significantly, the nation is rich in biological and agricultural diversity with a possibility in mining and energy sector.

Relatively, Brazil boasts of a well-developed infrastructure, a broad business base that consists of textile, shoes, cement, pulp, and computer industries and a distinct marketing structure that makes it one of the most preferred countries for direct investment (Alves, F. (2013). Conversantly, Pinatex is a sustainable and none-woven textile product developed through processing of pineapple leave fiber, and its origin is in Philippine.

Moreover, it's a biodegradable material considering that natural substance is used in its production, thus, making it non-pollutant to the environment. The merchandise is of high quality and can be used to make a range of commodities such as shoes, handbags, laptop cases, and watch bands (ananas anam, 2017). Therefore the report gives an analysis of possible environmental variables that might impact the marketing of the product in Brazil.

Pinatex was first developed in Philippine through processing of pineapple wastes, thus, no additional land, fertilizers or pesticides required in its production. Additionally, the product is environmentally friendly with an International Standard Organizations (ISO) acceptance, hence, suitable for use by the majority of world's consumer. Notably, it provides a broad range of commodities that targets various clients such as shoes, handbags, jackets, watch bands, and laptop cases (ananas anam, 2017). Significantly, Brazil provides a better marketing destination for the product considering its fast rising economy compared to other countries in South America.

Also, the majority of population are below age fifty-five with a higher purchasing power for various products, hence, an opportunity for developing a relationship with consumers (Chequer, 2012). Moreover, the country's online utility has risen providing a proper internet marketing of the merchandise through social media such as Facebook, Instagram, and Twitter. Conversantly, the nation's reduction in the populace of persons living in poverty and increasing the middle-class populace by various government projects has helped in raising the state's purchasing power. Besides, it has a diverse cultural and social life that majorly consists of Portuguese, Italian, German, Japanese, and African immigrants. Development of infrastructure and democratic government facilitates a conducive environment for investments by different companies (Chequer, 2012).

 

Environmental Analysis of Pinatex Export to Brazil

History indicates that for a country to succeed in economic growth, the state department has to be involved in creating markets for the nation's products, nurturing businesses, promoting technological advancement, and developing infrastructure through the removal of trade barriers that hinders growth (Salazar, Nübler, & Kozul, 2014). Furthermore, the Nation's constitution facilitates for international development as long as the investment confers to States priority of economic growth through agriculture, technology, and the creation of products that currently are imported.

As such, political stability and bestowment of some political powers to the federal government enable foreign investment and enhancement of country's economic progression. Significantly, foreign investment is permitted in large market sectors but face legal control by the States Central Bank, thus, confining transactions to foreign exchange regulations. Additionally, overseas companies are required to create either a branch or use a local industry to enhance its business since authorization for a subsidiary industry requires presidential assent (Chequer, 2012).

Therefore, numerous international enterprises incorporate subordinate or affiliated firms to market their products as the formation of an outlet entails adverse tax effects and various charges. However, to enhance living standards in the region, the government offers assistance to investors that need financial and advisory services (Hermann, & Gentil, 2016). Notably, the inflation rate is controlled by the Central Bank that checks on interest rates periodically, hence, enhancing the purchasing power of consumers.

The current concern for environmental protection and increased awareness of global warming and pollutions by the majority of customers has affected the way most businesses operates. This has led to use of environmentally friendly production procedures that are licensed by green labels for firms that export their merchandise to Brazil (Jabbour, Santos, Fonsec, & Nagano, 2013). Additionally, the Republic is known for its complicated and strict imposition of environmental laws that protect, conserve, and enhance sustainable utilization of its nature since its economic growth depends on agriculture.

Therefore, enactment of The Environmental Control and Inspection Tax (TCFA) aids in preventing pollution that is propelled by industries by levying charges on potential polluting activities (Jabbour, Santos, Fonsec, & Nagano, 2013). Additionally, firms operations are subject to environmental permitting through indication of forms of production and protection plans to environmental degradation. However, Pinatex is an environmental friendly commodity as its creation entails the use of biodegradable materials that consist of pineapple leaves, and also it involves an ISO certification. Therefore, the product meets the standard requirement of environmental policies enacted by the Brazilian authority that enhance better chances of its promotion and adoption by customers.

 


Brazilian population growth rate and investment are increasing tremendously with majority of the populace being less than sixty years of age. Additionally, it comprises of different ethnic backgrounds such as Portuguese, Germans, Chinese, Indians, and African Americans creating a broad consumer base for products (Chequer, 2012). Notably, most of the citizens live in the urban areas that mainly consists of diverse personalities, and majorly they are the largest consumers of industrial commodities.

 Conversantly, social gap between the wealthy and poor in community is minimal as most of the government’s project aids in uplifting the unfortunate (Martins et al., 2015). Moreover, Portuguese is the official language used in the Republic, hence, boosts product penetration in the market since majority share a common dialect. Also, Roman Catholicism is the most practiced religion though there is an exercise of one's freedom of worship. Relatively, the education standards of the inhabitants are moderately high with the majority of youths making it to higher levels of learning and 80% of the adult individuals considered to be learned (Alves, 2013).

Technological Issues

Advancement in technology has affected ways in which businesses operates by enhancing competition within various industries. Additionally, inventions have led to reduced production costs and profit maximization by many companies that incorporates the techniques. However, the development of Internet technology has revolutionized marketing strategy for most firms since many consumers currently have smartphones that can access the internet (Karodia, Soni, & David, 2014). In Brazil, most of its population browse on various social networks spending at least three hours of their time.

Therefore, this makes it a logical passer way into the world scene unlike other countries such as China that restricts use of social networks such as Facebook, YouTube, and Twitter (Souza, 2015). Hence, the incorporation of strategic and efficient online marketing of pinatex shall enhance quick and easy adoption of the merchandise by online users. Significantly, use of promoting Media such as televisions, radio, and print media will enable spread of the product to rural areas of the country (Goodrich & Mooij, 2014).

 


The Brazilian economy has been on a steady rise over the past decades regarding GDP. The growth has led to increased number of middle-class populations while reducing the rate of poverty and inequality in the country. The noticeable positive changes link to rising income level and employment as well as growth in states social spending and activities (Weisbrot, Johnston, & Lefebvre, 2014). Significantly, the country has reduced its trade barriers on both export and import of products, hence, encourage the importation of substitute commodities when local industries hike their prices or during shortages for local goods (Alves, 2013). 

Notably, the majority of Brazilian residents consists of skilled and semi-skilled individuals that eventually provides sufficient labor force. Moreover, the locals embrace international industries that promote employment and compete on a transparent footage with the domestic firms. Also, the Nation's dependence on farming for most of its industries acts as an advantage to the product's marketing since its development is through agricultural goods (Weisbrot, Johnston, & Lefebvre, 2014). Conversantly, the States participation in various trade blocs like World Trade Organization facilitates enterprise operations in the country since there is coordination of the macroeconomic policies (Ferraz, Kupfer, & Marques, 2014).

Industrial Competition

The rate of competition in the textile industry is high with majority being both local and international firms, hence, tends to control product prices. This is due to high production of raw materials and suitable business environment in the country since the primary economic driver is agriculture (Birnleitner, & Student, 2013). Therefore, to enhance success of Pinatex in the market, product differentiation, and strategic marketing analysis are to be embraced such as branding and integration of small distribution channels (Souza, 2015).

 

Conclusion

Government policies and regulations that confine to increasing the living standards of its inhabitants enhances the ease of investing in Brazil. Additionally, the country's economic rise through increased GDP that is facilitates increased purchasing power of its citizen's makes the nation a suitable spot for trade. Moreover, complex and strict environmental laws in the State deters other companies from investing in the Republic since most of the commodities are required to be environmentally friendly. Significantly, adoption of social networks by residents enables smooth marketing over the internet, hence, making Brazil prone to foreign investments. Therefore, export of Pinatex to Brazil is viable since it's environmentally friendly, thus, will be embraced both by the people and government in a bid to promote green technology.

 

References

Alves, F. (2013). Doing Business and Investing in Brazil (1st ed., pp. 11-66). Brasilia: pwc. Retrieved from https://www.pwc.de/de/internationale-maerkte/assets/doing-business-and-investing-in-brazil.pdf

Birnleitner, H., & Student, D. (2013). Influence of Macro-Environmental Factors to the Process of Integrating a Foreign Business Entity. In MIC 2013: Industry, Science and Policy Makers for Sustainable Future; Proceedings of the 14th International Conference, Koper, 21–23 November 2013 [Selected Papers] (pp. 387-400). University of Primorska, Faculty of Management Koper.

Chequer, T. (2012). Guide to Doing Business in Brazil (1st ed., pp. 3-30). Mayer Brown LLP. Retrieved from https://tauilchequer.com.br/files/uploads/TCDocuments/Guide_to_Doing_Business_in_Brazil.pdf

de Souza Almeida, L. M. (2015). Targeting Brazilian Market through Digital Branding Strategies: The Relevance of the Cultural Dimension. Open Journal of Business and Management, 3(01), 30.

Ferraz, J. C., Kupfer, D., & Marques, F. S. (2014). Industrial policy as an effective development tool: Lessons from Brazil. TRANSFORMING ECONOMIES, 291.

Goodrich, K., & De Mooij, M. (2014). How ‘social’are social media? A cross-cultural comparison of online and offline purchase decision influences. Journal of Marketing Communications, 20(1-2), 103-116.

Introducing Piñatex™ - ananas anam. (2017). ananas anam. Retrieved 16 April 2017, from https://www.ananas-anam.com/pinatex/

Jabbour, C. J. C., Santos, F. C. A., Fonseca, S. A., & Nagano, M. S. (2013). Green teams: understanding their roles in the environmental management of companies located in Brazil. Journal of Cleaner Production, 46, 58-66.

Karodia, A. M., Soni, D., & David, J. E. (2014). International competitiveness, globalization and technology for developing countries: some reflections from previous research. Singaporean Journal of Business, Economics and Management Studies, 2(9), 25-34.

Martins, G. D. F., Gonçalves, T. R., Marin, A. H., Piccinini, C. A., Sperb, T. M., & Tudge, J. (2015). Social class, workplace experience, and child-rearing values of mothers and fathers in southern Brazil. Journal of Cross-Cultural Psychology, 46(8), 996-1009.

Salazar-Xirinachs, J. M., Nübler, I., & Kozul-Wright, R. (2014). Transforming economies: Making industrial policy work for growth, jobs and development. International Labour Office.

Weisbrot, M., Johnston, J., & Lefebvre, S. (2014). The Brazilian economy in transition: Macroeconomic policy, labor and inequality. Center for Economic and Policy Research.

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