Case study in Next generation services in the brazilian Ict market

Yubish Tamang-FC1018605
Bishal Pandey-FC1014385
Atit Tamang-FC1012674
Aarushi Singh-FC1014016
Siddesh Nadar-FC1013404

Professor: Alireza Sadrmanoche

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1) There are many barriers to the sale of services in Brazil. Identify the barriers directly

and indirectly described in the case study and explain how USCloud plans to address them.

Numerous visible and invisible obstacles to marketing services in Brazil are mentioned in the

case study. The challenges as well as US Cloud’s strategy to overcome problems are listed

below:

 Payment Techniques and Domestic Currency: The previously "Boleto," which

needs an authorized bank account and an administrative workplace, is the most

common form of payment for deals between businesses in Brazil. By opening a

facility near So Paulo, Brazil, US Cloud intends to overcome this obstacle and

provide Boleto as an alternative means of payment. This proves their dedication to

accommodating regional transaction choices.

 The Competitive Edge of Regional IT Service Firms: Domestic IT service

companies have an edge since they work in the native currency, are acquainted

with regional transaction customs, and are exempt from customs fees and

complex legal requirements. US Cloud intends to combat this by opening regional

branches and conducting personal transactions with regional software vendors.

They might be more successful in competing with neighborhood suppliers if they

do this.

 Import Legislation and Rules: Navigating Brazil's importation legislation and

rules can be difficult. By opening an office in the region and dealing exclusively

with regional vendors, US Cloud can avoid several of the following import-

related difficulties and make conducting business in Brazil simpler.

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 Regional Company Tradition and Connections: In the Brazilian economy,

developing an individual network of allies is essential. US Cloud recognizes the

value of connections and intends to spend money cultivating nearby connections

and winning over prospective customers. They can go through the difficulty of

adjusting to the regional business environment with the aid of this strategy.

 Communication Gap: To get around the challenge of language, US Cloud plans

to recruit Brazilian IT specialists to work locally. This strategy not only facilitates

interaction but also offers regional client assistance which is crucial for winning

Brazilian trust among consumers.

 Marketing Approach: US Cloud is aware of the requirement to have an

aggressive pricing plan to effectively penetrate the sector. To assess the market's

trajectory and make certain that their price point is in line with regional standards,

they want to collect and evaluate statistics.

In conclusion, US Cloud is proactively addressing the obstacles in the Brazilian industry. To

overcome the obstacles and flourish in this sector of the economy, they are setting up a foothold

in the area, adjusting to domestic payment techniques, developing partnerships, looking for

skilled locals, and thoughtfully structuring their cost-effective approach.

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2) USCloud chose direct sales as an entry sales channel. Describe a possible second

sales channel option for the ICT company to implement as it gains credibility in the new

market.

By considering the Brazilian demand for security, CRM, and storage and also the lack of local

service providers USCloud chose a direct sales channel as it has sufficient funds to enhance its

service in a new market. With its high potential professional and entry strategies USCloud can

implement a possible second sales channel to get credibility in the new market which is:

Affiliate marketing: In a performance-based marketing strategy known as affiliate marketing, a

company (the "merchant" or "advertiser") pays people or other companies (the "affiliates" or

"publishers") to direct customers to the merchant's goods or services through the affiliate's

promotional activities. In this win-win situation, the merchant gains from higher sales and

affiliates profit from their marketing efforts by receiving commissions.

While there are many benefits to using affiliate marketing when breaking into a new industry, it

is crucial to carefully pick and manage your affiliate partners. This entails laying out clear

guidelines, offering assistance, and keeping an eye on their actions to make sure they are

consistent with the objectives and core values of your brand. A good affiliate marketing plan

must also take into account the cultural and legal intricacies of the new market.

The following can be the advantage for USCloud while applying affiliate marketing channels in

Brazilian marketing:
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 Cost-effective market entry: A cost-effective technique to join a new market is through

affiliate marketing. USCloud can use affiliates with market expertise rather than spending

a lot of money on setting up a physical presence or hiring a local marketing staff.

 Local expertise: Affiliates operating in a new market frequently have a comprehensive

awareness of the tastes, customs, and cultures of the people there. Their marketing

strategies can be adapted to appeal to the target demographic, increasing the likelihood

that they will be successful.

 Quick market penetration: USCloud's ability to quickly enter a new market is enhanced by
affiliates. As a result of the established audiences or clientele that many affiliates have in the
target market, their marketing initiatives may result in quicker market entry and first sales.

 Competitive advantage: USCloud can gain a competitive edge in the new market by

utilizing affiliates. USCloud could be able to access a distinct and potent sales channel if

your rivals aren't using affiliate marketing.

 Data and insights: Affiliate marketing offers insightful information and useful data

about consumer behavior and preferences in the emerging industry. USclouds overall

market entry strategy and product development can be influenced by this knowledge.

 Compliance and regulations: Affiliates who are knowledgeable about the new market

may verify that your marketing initiatives adhere to local rules and regulations, lowering

the possibility of legal problems.

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3) When preparing sales presentations for potential clients, what information will be
important for the USCloud representatives to research?
While preparing sales presentations for potential clients, the US cloud team should do thorough

market research about the client & and provide them with relevant as well as compelling data.

Below are some information to be researched:

 Client Background: Understand the values, mission & and business model as well as

competitors so the US team can know their positioning in the market.

 Client Needs: The US cloud team has to understand the issue that the client is facing &

and how they can cater to them as per their needs.

 Customization: Demonstrate that the US cloud team has the ability to customize

solutions based on the client's specific requirements.

 Future Roadmap: Discuss the US team's future plan & and how they will align with

clients’ needs as well as with the industry trends.

 Client Target Audience: Understand the client's audience & and their demographic.

Provide them with a presentation on how the US cloud team can address the client’s

customer needs.

By doing thorough research and addressing these key areas, USCloud representatives can create

an impactful presentation that demonstrates the value of their offerings.

4) List the information USCloud will need to gather to determine the best pricing strategy
and price to enter the Brazilian market.
The information that the USCloud International Business Development Team needs to gather

before developing a pricing strategy and enter the Brazilian market are:
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 Market Research: Understand the local market conditions, including consumer

behavior, purchasing power, and competition. This helps the company determine what

price points are acceptable and competitive.

 Cost Analysis: Calculate all costs associated with production, distribution, and

marketing. This includes manufacturing costs, shipping, tariffs, taxes, and marketing

expenses.

 Exchange Rates and Currency Fluctuations: Monitor exchange rates as they can

significantly impact pricing. Decide if the company will use a fixed or dynamic pricing

approach to mitigate currency risks.

 Regulatory and Legal Considerations: Comply with local laws, regulations, and

taxation policies. Be aware of import/export duties, VAT/GST, and other levies that may

affect pricing.

 Distribution Channels: Understand the distribution channels available and their

associated costs. Different channels may have different pricing dynamics.

 Competitor Pricing: Analyze the pricing strategies of the competitors in the target

market. This can provide insights into pricing norms and help company to position the

service or product effectively.

 Value Proposition and Positioning: Determine how the company want to position it’s

service or product in the market. Are they offering a premium, mid-range, or budget

option? It’s service pricing should align with this positioning.

 Elasticity of Demand: Understand how sensitive consumer demand is to changes in

price. This helps in setting an optimal price that maximizes revenue.

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 Psychological Pricing: Consider cultural nuances and psychological factors that may

influence pricing perceptions in the target market.

 Discounts and Promotions: Decide if company will offer discounts, promotions, or

bundle deals. Understand how these strategies are received in the local market.

 Long-term Goals: UsCloud should consider long-term goals for the international

market. Aiming for rapid market penetration, sustainable growth, or brand building, can

influence a company’s pricing approach.

 Adaptability: Be ready to adapt your pricing strategy based on market feedback and

changing conditions. Flexibility is key in international markets.