Case Study Havaianas: A Brazilian Brand Goes Global Essay

Question 1: What variables could clarify the achievement of Havaianas in turning into a worldwide brand? 1.) Stable and very much created monetary foundation through acquisitions and extensions lead to an immense shoe piece of the pie * Sao Paulo Alpargatas exists since 1939, specialization in four specialty units: (shoes, outdoor supplies, modern material and retail) * Controling Shareholder (67%): Camargo Correa Group with activity in 20 nations * Acquisition of Companhia Brasileira de Sandalias (Dupã © brand) in 2006 prompts expanded offer in the Brazilian flip lemon advertise * Acquisition of 60% of Alpargatas Argentina to extend in Latin America 2.) Long understanding and expertise in assembling shoes and creating the extraordinary elastic * Own operational and calculated frameworkâ * Extension of the assembling plant in 2007 ( capacity to deliver 212 million sets of shoes every year) * Production in the upper east of Brazil, Santa Rita, so as to diminish costs, increment profitability and further smooth out the strategic system * Headquters in Camargo Correas Centro Empresarial to upgrade the authoritative procedures 3.) Product advancement * From one style with five hues to 509 new models of shoes and game footwear * Different structures and hues * Special releases 4.) Product properties * Low cost: moderate * Durability, strong * Comfortable * Trademark in 1962 * â€Å"shoes for the poor†, outside work (espresso bean pickers and blue collarâ workers), throughout the day shoes * For sweltering and sticky climate 5.) Repositioning of the brand (1994) * Before: one style and five hues, poor purpose of deals execution and practical based ad, picture of a modest item that can be purchased all over the place * â€Å"Havaianas Top†, coordinating sole and lash * in 13 hues * slight premium cost * publicizing demonstrating privileged buyers and big names wearing Havaianas * update through better bundling * new deals channels with increasingly enthusiastic setting * Continuous item advancement * Launch of new structures (80 styles) * Incorporation of world design patterns * Changing costumers * Opinion pioneers, VIPs and high society costumer wear Havaianas at home, however in numerous spots and events * Free exposure from fans (global design and celebrities) * International design magazines, catwalk, MTV Music Awards and the Hollywood Oscars 2003 * Communication * 12% of the turnover was spent for promoting * Buzz promoting and publicizing with electronic media * Local and global superstars * Online promoting, youtube recordings, †¦ * Co-marking: Havaianas was connected to environmental causes due to IPE constrained releases and restricted versions by popular craftsmen, that financed â€Å"favela† ventures Question 2: How far goes the organization as far as extending the brand? 1.) 1960 fare to Latin America 2.) 1990 the travel industry to Brazil expanded and Havaianas were brought home 3.) 1998 major fare to France * Europe (significant markets are Italy, Portugal, France, Spain, Switzerland, Netherlands) * At the Soccer World Cup of 1998 Havaianas with the Brazilian banner on the lash turned into a moment hit 4.) Communication procedure change * Europe, France * Independently oversaw markets (nearby business people) * European auxiliary to blend the brand system, promoting, item and value situating * In 2001 â€Å"Tudo Bem† was built up as an official shipper * Cooperation with guiding architects from style to extravagance * Sponsorships (occasions at in vogue discotheques, extravagant inns, exercise centers) * Customize your own Havaianas * US * Havaianas turned into a â€Å"must wear† * In 2004 â€Å"Style West†, elite wholesaler, prepared VIPs and planners each season with the most blazing hues * In 2007, section in the US showcase with a guerilla promoting technique * In request to get understudies, the brand must be genuine, over-advancement can make a brand less cool * The US advertise is very fascinating a direct result of the tremendous value, that costumers are happy to pay: up to $30 * Asia * Countries with the perfect Havaiana climate: Philippines, Singapore, Malaysia, Indonesia, Thailand * Hot and moist climate and comparative footwear culture to Brazil * Philippines is the main market with a critical degree of deals * Reason of Haivaiana the fall flat: Large white collar class or beneath and many marked US, EU and Asian contenders just as modest and unbranded Chinese business visionaries * Japan * Fashion cognizant and sweltering and damp climate * Limited versions solely for Japan with Chiso * Advertising and buzz showcasing strategies 5.) 2007: 20.000 stores in more than 65 nations Main markets: Brazil, US, Australia, Latin America Question 3: How practical is their upper hand? 1.) Consumers love the â€Å"Made in Brazil factor† * This is one of the most practical variables of Havaianas’ upper hand as long as the positive Brazilian picture not changes 2.) Bigger size than its rivals: Economies of Scale * This achievement factor is difficult to reproduce and makes a maintainable upper hand just as a cost advantage * Production in the upper east of Brazil, Santa Rita, so as to diminish costs, increment profitability and further smooth out the calculated system * Headquters in Camargo Correas Centro Empresarial to improve the managerial procedures 3.) Bigger piece of the pie than its rivals: Expansion of the piece of the pie through the securing of other flip failure organizations * Due to the Economies of scaleâ * Due to promoting and marking 4.) Unique brand situating * Celebrities and sentiment setters have just adjusted the pattern, this upper hand is viable and powerful however just as long supportable as Havaianas are not supplanted by other footwear brands * Production in the upper east of Brazil, Santa Rita, so as to lessen costs, increment profitability and further smooth out the calculated system * Headquters in Camargo Correas Centro Empresarial to upgrade the regulatory procedures 5.) Continuous item development * Adaption to real propensities and patterns is the best insurance of keeping one’s notoriety and piece of the overall industry. 6.) Top-emit elastic formula * Sustainable upper hand as long as there is no better formula. 7.) Authentic solace and quality * Authentic picture not at any rate because of environmental cognizant co-marking. Havaianas have the greatest piece of the pie in light of the fact that their clients are persuaded of the quality, cost (in Brazil) and trendy enthusiastic worth. This bundle is one of the keys of the brand’s achievement and is just difficult to imitate of its rivals.