Professional Documents
Culture Documents
AIDS, Condoms and Carnival Durex in Brazil
AIDS, Condoms and Carnival Durex in Brazil
Durex in Brazil
Problem formulation
Economic factors
• GDP growth -0.2
• Unemployment 8.1%
• Inflation rate 5.1%
• CB discount rate 8.75%
• Lending rate 47.25%
• Exchange rate R$1 = $0.6
or €0.43
• Improved credit rating
2010, BBB- by Fitch
PESTEL
PESTEL
Socio-cultural factors
• 66.8% between 15-64
• Years in school: 14
• Religion: Roman Catholic
• Internet users: 96.6 M
• Mobile owners: 46.3%
• 44hrs working week
• Up to 30 days of holiday
• HIV deaths/year: 15000
• Condom use: 20-46.5%
PESTEL
Technological factors
• 60% of R&D in Latin America
• Government spent more
than R$ 1.7 bn since 2006
• State-owned condom
factory
• “Terrible infrastructure”
• R$ 500 bn earmarked for
infrastructure up to 2015
PESTEL
Environmental factors
• 45.5% of energy consumption
from renewable energy sources
• Environmental policy
• Cancellation of some taxes
if contributing to develop.
• PIS – social integration
program
• Program H – changing
attitudes
PESTEL
Legal factors
• Board of Director’s must be
at least 2 residents
• IPI tax 10%
• INSS – healthcare tax
• II – import tax
• Labour laws (44
hour/week, min. wage
R$510, annual vacations)
CONCLUSION PESTEL
PRO CON
• Stable government • Corruption and violence
• No international conflicts • High income disparity
• Member of trade org • Under developed
• Stable economy infrastructure
• Promising economy • Difficult to open up
• Gov spends on R&D business
• Cumbersome procedures
and regulations
CONDOM MARKET IN BRAZIL
SIZE
Commercial market: 660 000 000 (6.6 million)
Government hand-outs: 1 000 000 000 (1 billion)
BRANDS
MARKET SEGMENTATION
PORTER’S FIVE FORCES
PORTER’S FIVE FORCES
• Companies dictate
conditions
• Many suppliers
LOW • Large amounts purchased by
companies
PORTER’S FIVE FORCES
• Difficult to differentiate
• No substitute to prevent
MEDIUM/LOW STD’s and AIDS
PORTER’S FIVE FORCES
HIGH – Prudence
• Many small brands
• Fierce competition:
– Few differentiation options
– High fixed costs
– High growth possibility
CONCLUSION PORTER’S FIVE FORCES
UNATTRACTIVE ATTRACTIVE
ATTRACTIVE
SSL
Super-market
Reckitt Benckiser
• Acquried SSL
international 1/11 2010
SWOT Analysis
Strenghts
Excellent brand image / Widely
recognized market leader
Good quality / Superior technological
skills
Wide geographic coverage
Strong financial condition
Weaknesses
Webpages
• Angloinfo. http://brazil.angloinfo.com/countries/brazil/socsecurity.asp (accessed 2 October, 2010)
• Avert. http://www.avert.org/aids-brazil.htm (accessed 4 October, 2010)
• BBC news. http://www.bbc.co.uk/news/world-latin-america-11389613 (accessed 5 October, 2010)
• BBC news. http://news.bbc.co.uk/2/hi/americas/7335925.stm (accessed 5 October, 2010)
• Bloomberg. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aFJJVxM6CVD8 (accessed 24 October, 2010)
• Business week.
http://www.businessweek.com/news/2010-02-01/brazil-infrastructure-projects-require-85-billion-in-financing.html
(accessed 4 October, 2010)
• Business week. http://www.businessweek.com/news/2010-02-04/brazil-s-infrastructure-in-terrible-shape-fraga-says.html
(accessed 4 October, 2010)
• British Chambers of commerce. http://www.exportguides.co.uk/brazil/ (accessed 10 October, 2010)
• Central Intelligence Unit. https://www.cia.gov/library/publications/the-world-factbook/geos/br.html (accessed 2 October
2010)
• Currency calculator. http://www.x-rates.com/calculator.html (accessed 14 October, 2010)
BIBLIOGRAPHY
Webpages continued.
• Embassy of Brazil in London. http://www.brazil.org.uk/economy/foreigntrade.html (accessed 15 October, 2010)
• Euromonitor international. http://www.euromonitor.com/factfile.aspx?country=BR (accessed 5 October, 2010)
• Federal Research Division of the Library of Congress. http://www.country-data.com/cgi-bin/query/r-1810.html (accessed 19
October, 2010)
• France 5. http://www.france5.fr/sante/histoires/W00476/1/
• Historical exchange rates. http://www.oanda.com/currency/historical-rates (accessed 14 October, 2010)
• SSL International. http://www.ssl-international.com/Pages/default.aspx (accessed 9 October, 2010)
• Ministry of External relations.
http://tgspaaa1.miniserver.com/~tgspawnb/system/brazilianchamber/images/PDF/5.1legalguide.pdf (accessed 9 October,
2010)
• OECD. http://www.oecd.org/dataoecd/62/35/35415135.pdf (accessed 4 October, 2010)
• Portal Brazil. http://www.brasil.gov.br (accessed 29 September, 2010)
• Preservativos Natex. http://www.preservativosnatex.com.br/en/index.html (accessed 2 October, 2010)
• Promundo. http://www.promundo.org.br/en/ (accessed 5 October, 2010)
• Prospects. http://www.prospects.ac.uk/brazil_job_market.htm (accessed 10 October, 2010)
• Time Magazine. http://www.time.com/time/world/article/0,8599,2022661,00.html (accessed 29 October, 2010)
• The Wall Street Journal. http://online.wsj.com/article/BT-CO-20100924-711075.html (accessed 4 October, 2010)
• WTO. http://www.wto.org/ (accessed 29 September, 2010)
• http://www.citesciences.fr/francais/ala_cite/science_actualites/sitesactu/question_actu.php?id_article=10703&langue=fr.