The purpose of this report is to analyse potential cultural and economic factors that would affect the introduction of Sanitarium’s Up and Go into the foreign, developing market of Brazil. The report firstly provides a synopsis of Sanitarium as well as a background into the product itself which surmises that it is a breakfast drink which is targeted toward time poor individuals and to a lesser extent health conscious people.
The report goes on to discuss the relevant economic and cultural factors of Australia which contributed to the success of Up and Go in this market. Australia’s high levels of GDP per capita, the fact it is a developed economy and high rates of urbanisation means that a large segment of the market have the disposable income to purchase Up and Go and overall do not have to travel far to access a retailer for it.
Table of Contents
1. Executive Summary
2. Background of Company and Product
3. Australia
3.1 Economic Analysis
3.1.1 Population
3.1.2 Budgetary Position
3.1.3 Infrastructure
3.1.4 Education
3.1.5 Labour Market and Income
3.2 Cultural Analysis
4. Brazil
4.1 Economic Analysis
4.1.1 Population
4.1.2 Economic Statistics and Activity
4.1.3 Transportation and Infrastructure
4.1.4 Channels of Distribution
4.1.5 Media
4.1.6 Other Important Economic Factors
4.2 Cultural Analysis
4.2.1 Geographical Setting
4.2.2 Social Organization
4.2.3 Cultural Behaviour
4.2.4 Living Conditions
5. Standardisation and Adaptation
6. Differences in Consumer Behaviour
6.1 Economic Analysis
6.2 Cultural Analysis
7. Strategy
Research Objectives and Themes
The primary objective of this report is to analyze the cultural and economic feasibility of introducing Sanitarium’s "Up and Go" beverage into the Brazilian market. The study aims to identify necessary adaptations for the marketing mix, distribution strategies, and operational processes to ensure successful market entry, while accounting for significant differences in consumer behavior and business culture between Australia and Brazil.
- Cultural comparison utilizing Hofstede’s dimensions.
- Economic analysis of potential target demographics in Brazil.
- Adaptation of the marketing mix (product, price, promotion, place).
- Strategic recommendations for local partnership and indirect exporting.
Excerpt from the Book
Cultural Analysis
According to Elliot, T (2010) culture “includes all the characteristic activities and interests of a people” (Page 14). These are measured along various dimensions which have been analysed in this report. The following is an analysis of Australia, with the cultural analysis of Brazil to follow later in the report.
Australia was colonized by the British Empire in 1788. It served as a British colony until its independence in 1901 (Lawrence & Davies, 2011) The Australian culture developed with respect to the country’s historical ties with Great Britain. The typical Australian family consists of four people with two adults and two children (Australian Social Trends, 2013). However, this is often affected by various factors including Australia’s ageing population, technological advances and immigration patterns (Australian Institute of Family Studies, 2015).
The standard of living in Australia is comparatively higher than the rest of the world. Australia ranks above average in key aspects such as health status, education and skills, but below average in work-life balance (OECD Better Life Index, 2015). However in recent times Australia has experienced an increasing obesity rate. Almost two thirds of Australian adults are overweight as well as twenty five percent of children being either overweight or obese (OECD Better Life Index, 2015). This has prompted the social trend of healthy eating and fitness (Wyn & Woodman, 2006), which Up and Go has capitalised on.
Summary of Chapters
Executive Summary: Provides an overview of Sanitarium's mission and the strategic goal of expanding "Up and Go" to the Brazilian market.
Background of Company and Product: Outlines the history of Sanitarium as a health-focused food company and describes the "Up and Go" beverage as a convenient breakfast solution.
Australia: Analyzes the economic indicators and cultural characteristics of Australia that have contributed to the domestic success of "Up and Go".
Brazil: Examines Brazil's economic landscape, demographic potential, and the specific cultural traits that influence business and consumer behavior.
Standardisation and Adaptation: Discusses the necessary modifications to the marketing mix, including product flavors and pricing strategies, to align with Brazilian food culture.
Differences in Consumer Behaviour: Contrasts the consumer profiles of Australia and Brazil, highlighting the impact of cultural distance on decision-making.
Strategy: Proposes an indirect export strategy and the use of the Delphi technique to mitigate market entry risks and capitalize on local partnerships.
Keywords
Up and Go, Sanitarium, Brazil, Market Entry, Cultural Analysis, Economic Analysis, Marketing Mix, Hofstede, Consumer Behavior, International Marketing, Adaptation, Distribution, Strategy, Breakfast Drink, Business Culture
Frequently Asked Questions
What is the primary focus of this report?
The report examines the potential for Sanitarium to export its "Up and Go" breakfast drink from Australia to Brazil, analyzing both economic and cultural feasibility.
What are the central thematic areas?
The analysis covers economic performance, consumer demographics, cultural dimensions (Hofstede), and strategic international marketing adjustments.
What is the main research question?
The research seeks to determine how Sanitarium must adapt its product and marketing strategy to succeed in the unique, high-context, and polychronic environment of Brazil.
Which scientific method is utilized in the study?
The report employs a comparative cultural analysis using Hofstede’s dimensions and suggests the use of the Delphi technique to acquire expert guidance for decision-making.
What does the main body address?
It provides detailed economic and cultural profiles of both Australia and Brazil, contrasts their consumer behaviors, and outlines specific adaptations for the 4Ps of marketing.
Which keywords define this work?
Key terms include "Up and Go", "Market Entry", "Cultural Analysis", "Marketing Mix", "Brazil", and "Sanitarium".
Why is Brazil's "high context" culture important for Sanitarium?
Because Brazil prioritizes relationships and trust over schedules, Sanitarium must invest in local partnerships and establish long-term connections before business negotiations can succeed.
How should Sanitarium handle the pricing strategy in Brazil?
The report recommends a penetration pricing strategy initially to gain market awareness, despite the challenges of high import taxes and tariffs.
- Citar trabajo
- Anonym (Autor), 2016, Cultural Analysis Report. Analysing the Potential of Exporting Up and Go to Brazil, Múnich, GRIN Verlag, https://www.grin.com/document/371069
