CONSUMER MARKETING

ASSIGNMENT-1

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INTRODUCTION
Havaianas is a Brazilian brand of flip-flop sandals. Its owning company was origi-
nally founded as footwear for the São Paulo working class. Today, it is the world’s
most popular flip flop and bought by people all across the socioeconomic spectrum.
The company’s history and modern image are reflections of Brazil’s history with
immigration and its ongoing reconciliation of international influences with the evo-
lution of local tastes, resources, and status. In this case study, I profile how Hava-
ianas responded to these issues and the two phases of its subsequent growth into
the prototypical Brazilian multinational firm: Adaptation to Dynamic Domestic
Needs and Tastes A domestically produced solution to a common need arises due to
limitations on foreign alternatives. The product evolves to local tastes, which also
evolve with the economy. Internationalization through Brand Strength Positive in-
ternational perception of a country or culture can be a product’s value proposition,
beyond quality or uniqueness. The brand abroad is built using country-oforigin im-
age (COI) for product differentiation.
The first pair of Havaianas was born in 1962, based on the traditional Japanese
sandal known as the Zori. The name Havaianas is Portuguese stands for Hawaiians.
By 1964 practically every worker in Brazil wore a pair. The rubber flip-flops were
sold inside a plastic bag by salesman who drove Volkswagen vans all over the coun-
tryside. In 1966, Havaianas registered the patent of the mode l as “a new type of
sole with a strap”.
By that year Havaianas were traditionally only available in blue and white
(Figure1). However, a production error produced a batch of green Havaianas, which
ended up hitting the marketplace. The reaction was so positive that Havaianas
seized the opportunity and started producing brown, yellow and black pairs. During
32 years, Havaianas sold only one flip-flop style.

Only in 1995 Havaianas decided to produce the first cover printed flip-flops and in
1996 launched other 8 different colors of the sandals. After the “Brazilian flag ver-
sion” produced in celebration of the ’98 World Cup, Havaianas rapidly spreads
throughout the world and they begin being officially distributed in Spain, Portugal,
Italy, France, England, USA, Dominican Republic and Japan. After the in-
ternational expansion, the brand not only started to produce several styles beyond
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flip-flops but also made partnerships and developed sandals made with beads and
crystals creating a higher value-added product.
In 2006 Havaianas can be found in more than 80 countries, had a portfolio of 39
models in Brazil and 30 models developed especially to sell abroad with different
patterns and themes developed for local cultures. Presently the brand has 132 offi-
cial offices all over the world.
e to embody them in new products or services and channels aimed at the new tar-
get.” (Figure 2

WHAT IS THE IDENTITY AND PERSONALITY OF BRAND?

A Premium Style brand that embodies the spirit of brazil

Consumers see Havaianas as an expression of their identity, as if by wearing the
sandals they are making a statement on how their lives are led. And for Brazilians
it’s a brand that is close to their heart, they accompanied the ascension of this
brand, which reminds the population where they came from and its simplicity con-
nects with Brazilian roots positively promoting
People didn't associated the name Havaianas with a low standard brand, they asso-
ciated the only flip-flop model that the brand had launched at that point.

HOW DID COMPANY GO ON BUILDING THE BRAND /HOW DOES THE COMPANY BENEFIT FROM
THE BRAND?

Alpargatas S.A. went through ups and downs since the release of the Havaianas
brand. The crisis involving their product made the company’s bosses soon realize
that a marketing strategy was necessary, by investment in research and develop-
ment and surveying the market, to keep the product up to date and profitable. The
bright side of conquering the Brazilian lower income population first is that they
created a huge consumer base and by repositioning it made the product desirable to
other markets. Havaianas biggest strategy moves were to make it also a recognis-
able product in foreign markets. The company was able to do so by segmenting its
market and varying its products to match their prospective consumers.

Despite their ubiquity, Havaianas began to lose its leading market share in the late
1980s.
Havaianas refocused their presentation and marketing to pivot their brand as a
sandal for all Brazilians.The process of Havaianas rebranding was to change the cul-
ture that was associated with the product and was the right path to the company.
They realized that with the cultural change in the country, they had to follow and
rebrand themselves.At first , Havaianas was focus on the regular population, high-

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lighting the singularity of the product. Later they focused in the differentiation of
colors and convey the idea of delicacy.
In just six years, Sao Paulo Alpargatas managed to reverse the decline in sales.
From 65 million pairs in 1993, sales rose up to 105 million pairs in 1999. Havaianas
had bounced back. 

Analyzing through the 4 stages of the pyramid in Havaianas case since 1994, their
resonance has being achieved over time. In stage 1, Havaianas started to stand out
of their competitors by reinforce the originality of the product and relate it with the
name Havaianas (EXIBIT 1). It wasn't a hard process because the name was already
related to quality of the flip-flops, they started a new process of remind the cos-
tumers.
In stage 2 the performance was already set in customers minds since Havaianas was
wore by workers and used to emphasize the quality (EXIBIT 2). The imagery focus
on advertise with famous people that actually wore Havaianas (EXIBIT 3) in order

to

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make the future and actual buyers relate themselves with that lifestyle. Relate that
famous actors wore Havaianas in the mall, not only at their houses. That was a
smart strategy because they positioned the product as a new fashionable item, dif-
fering Havaianas from the regulars beach flip-flops brand.

The third stage is divided in Judgements and Feelings. The strategy that Havaianas
had in stage 2 boosted the clients judgements about superiority and consideration.
They felt that only a Havaianas could fit some occasions or some standards. The
feeling related to the brand is something that is strong and secure. Besides the rela-
tion with famous people, Havaianas created a bond between nationality, fun, ap-
proval and excitement. This feeling related to the brand combined with the history
and several aspects of the pyramid, made Havaianas reach
the brand resonance.
Translation: They still haven't invent-
ed sandals better than Havaianas.

Legitimate Havaianas

EXIBIT-1
EXIBIT-2

EXIBIT- 3

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 Brand Prism
Personality
Model Happy way to life
Colourful
Fun
Physical facet Always Summer
Fashionable Comfortable
CAREFREE
SIMPLE DESIGN
The product was made of
rubber
Sporty

REFLEXTION
Everybody wears them’
matches perfectly their
communication strategy,
where anyone can wear the

RELATIONSHIP
Consumers see Havaianas
as an expression of their
identity, as if by wearing the
sandals they are making a
6 High quality and Good
CULTURE
For Brazilians it’s a brand that
is close to their heart, they
accompanied the ascension
of this brand, which reminds
Self Image
Havaianas allows you to
express your style in a
spontaneous, passionate,fun
way.
Beautifiul designs
material