Case Study Havaianas: A Brazilian Brand Goes Global Essay

Question 1: What elements could clarify the achievement of Havaianas in turning into a worldwide brand? 1.) Stable and all around created financial foundation through acquisitions and developments lead to a colossal shoe piece of the pie * Sao Paulo Alpargatas exists since 1939, specialization in four specialty units: (shoes, outdoor supplies, mechanical 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 failure advertise * Acquisition of 60% of Alpargatas Argentina to extend in Latin America 2.) Long understanding and skill in assembling shoes and delivering the unique elastic * Own operational and strategic frameworkâ * Extension of the assembling plant in 2007 ( capacity to create 212 million sets of shoes every year) * Production in the upper east of Brazil, Santa Rita, so as to decrease costs, increment profitability and further smooth out the calculated system * Headquters in Camargo Correas Centro Empresarial to upgrade the managerial 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, vigorous * Comfortable * Trademark in 1962 * â€Å"shoes for the poor†, outside work (espresso bean pickers and blue collarâ workers), throughout the day shoes * For blistering and moist climate 5.) Repositioning of the brand (1994) * Before: one style and five hues, poor purpose of deals execution and useful based promotion, picture of a modest item that can be purchased all over the place * â€Å"Havaianas Top†, coordinating sole and tie * in 13 hues * slight premium cost * promoting indicating high society buyers and superstars wearing Havaianas * update through better bundling * new deals channels with increasingly passionate setting * Continuous item advancement * Launch of new structures (80 styles) * Incorporation of world design patterns * Changing costumers * Opinion pioneers, VIPs and privileged costumer wear Havaianas at home, yet in numerous spots and events * Free exposure from fans (worldwide style and famous actors) * International style magazines, catwalk, MTV Music Awards and the Hollywood Oscars 2003 * Communication * 12% of the turnover was spent for advertising * Buzz showcasing and publicizing with electronic media * Local and worldwide VIPs * Online publicizing, youtube recordings, †¦ * Co-marking: Havaianas was connected to biological causes due to IPE restricted releases and constrained versions by popular craftsmen, that financed â€Å"favela† ventures Question 2: How far goes the organization as far as growing 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 methodology, promoting, item and value situating * In 2001 â€Å"Tudo Bem† was set up as an official shipper * Cooperation with directing architects from design to extravagance * Sponsorships (occasions at stylish discotheques, extravagant lodgings, exercise centers) * Customize your own Havaianas * US * Havaianas turned into a â€Å"must wear† * In 2004 â€Å"Style West†, elite wholesaler, prepared famous people and planners each season with the most sultry hues * In 2007, section in the US advertise with a guerilla showcasing methodology * In request to get understudies, the brand must be bona fide, over-advancement can make a brand less cool * The US showcase is very intriguing a direct result of the enormous value, that costumers are happy to pay: up to $30 * Asia * Countries with the perfect Havaiana climate: Philippines, Singapore, Malaysia, Indonesia, Thailand * Hot and muggy climate and comparable footwear culture to Brazil * Philippines is the main market with a noteworthy 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 people * Japan * Fashion cognizant and blistering and damp climate * Limited releases solely for Japan with Chiso * Advertising and buzz promoting procedures 5.) 2007: 20.000 stores in more than 65 nations Main markets: Brazil, US, Australia, Latin America Question 3: How feasible is their upper hand? 1.) Consumers love the â€Å"Made in Brazil factor† * This is one of the most economical elements 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 repeat and makes an economical upper hand just as a cost advantage * Production in the upper east of Brazil, Santa Rita, so as to lessen costs, increment efficiency and further smooth out the calculated system * Headquters in Camargo Correas Centro Empresarial to enhance the authoritative procedures 3.) Bigger piece of the overall industry than its rivals: Expansion of the piece of the overall industry through the obtaining of other flip lemon organizations * Due to the Economies of scaleâ * Due to promoting and marking 4.) Unique brand situating * Celebrities and feeling setters have just adjusted the pattern, this upper hand is successful and convincing however just as long feasible as Havaianas are not supplanted by other footwear brands * Production in the upper east of Brazil, Santa Rita, so as to lessen costs, increment efficiency and further smooth out the strategic system * Headquters in Camargo Correas Centro Empresarial to improve the regulatory procedures 5.) Continuous item development * Adaption to real inclinations 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 overall industry on the grounds that their clients are persuaded of the quality, cost (in Brazil) and in vogue passionate worth. This bundle is one of the keys of the brand’s achievement and is just difficult to recreate of its rivals.