Case Study Havaianas: A Brazilian Brand Goes Global Essay

Question 1What factors could explain the succeeder of Havaianas in neat a global provoker?1.) Stable and well developed stinting background by dint of acquisitions and expansions lead to a huge sandal foodstuff luck * Sao Paulo Alpargatas exists since 1939, specialization in four business units (sandals, sporting goods, industrial textile 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 increased share in the Brazilian flip flop market * Acquisition of 60% of Alpargatas Argentina to expand in Latin the States2.) Long experience and know-how in manufacturing sandals and producing the special rubber * Own operative and logistic framework* Extension of the manufacturing plant in 2007 ( capability to asseverate 212 million pairs of sandals annually) * occupation in the northeast of Brazil, Santa Rita, in order to bring low costs, increase productiveness and further streamline the logistic network * Headquters in Camargo Correas Centro Empresarial to optimize the administrative processes3.) Product purpose* From one style with 5 colors to 509 crude models of sandals and sport footwear* Different designs and colors* particular(a) editions4.) Product properties* Low price affordable* Durability, robust* Comfortable* assay-mark in 1962* shoes for the ridiculous, outside work (coffee bean pickers and muddied collarworkers), all day shoes* For hot and humid stomach5.) Repositioning of the brand (1994)* Before one style and five colors, poor point of sales execution and functional based advertisement, image of a cheap product that can be bought everywhere* Havaianas Top, twin(a) sole and strap* in 13 colors* slight exchange premium price* advertising showing upper human body consumers and celebrities wearing Havaianas* upgrade through better packaging* new sales channels with more(prenominal) emotional context* Continuous prod uct innovation* Launch of new designs (80 styles)* Incorporation of world fashion trends* Changing costumers* Opinion leaders, celebrities and upper severalize costumer wear Havaianas non only at al-Qaida, precisely in many places and occasions* Free publicity from fans ( internationalistic fashion and movie stars)* world-wide fashion magazines, catwalk, MTV Music Awards and the Hollywood Oscars 2003* Communication* 12% of the turnover was fagged for marketing* Buzz marketing and advertising with electronic media* Local and international celebrities* Online advertising, youtube videos, * Co-branding Havaianas was linked to ecological causes due(p) to IPE limited editions and limited editions by known 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 increased and Havaianas were brought home 3.) 1998 big export to France* Europe (major markets are Italy, Portugal, France, Spain, Switzerland, Netherlands)* At the Soccer human race Cup of 1998 Havaianas with the Brazilian flag on the strap became an instant pull ahead 4.) Communication strategy change* Europe, France* Independently managed markets (local entrepreneurs)* European subsidiary to submit the brand strategy, advertising, product and price positioning* In 2001 Tudo Bem was established as an official importer* Cooperation with leading designers from fashion to luxury * Sponsorships (events at trendy discotheques, realize hotels, gyms)* Customize your own Havaianas* US* Havaianas became a must wear* In 2004 Style West, exclusive distributor, equipped celebrities and designers each 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 be charter up to $30* Asia* Countries with the ideal Havaiana die hard Philippines, Singapore, Malaysia, Indonesia, Thailand* Hot and humid weather and similar footwear culture to Brazil* Philippines is the only market with an hearty level of sales* Reason of Haivaiana the fail Large middle class or below and many branded US, EU and Asian competitors as well as cheap and unbranded Chinese entrepreneurs* japan* invent 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 benefit?1.) Consumers love the Made in Brazil factor* This is one of the just about sustainable factors of Havaianas competitive reinforcement as long as the arbitrary Brazilian image not changes 2.) Bigger size than its competitors Economies of Scale* This success factor is hard to replicate a nd creates a sustainable competitive advantage as well as a cost advantage * 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 processes 3.) Bigger market share than its competitors Expansion of the market share through the acquisition of other flip flop companies * due to the Economies of scale* Due to advertising and branding4.) Unique brand positioning* Celebrities and opinion setters have 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 actual tendencies and trends is the best protection of keeping ones paper and market share.6.) Top-secrete rubber recipe* Sustainable competitive advantage as long as there is no better recipe.7.) Authentic solace 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 fashionable emotional value. This package is one of the keys of the brands success and is only hard to replicate of its competitors.