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Research Paper - Laetitia BASTUCK - Master2 LEA EAD
Research Paper - Laetitia BASTUCK - Master2 LEA EAD
Research paper
By Laetitia Bastuck
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Contents
Introduction ............................................................................................................................................ 3
I. About my target country Brazil ....................................................................................................... 3
Geographic situation ................................................................................................................... 3
Demography................................................................................................................................ 3
Political situation......................................................................................................................... 3
Economic data............................................................................................................................. 4
International relationship ........................................................................................................... 4
II. The Brazilian consumer ................................................................................................................... 4
Global data .................................................................................................................................. 4
Wine consumers ......................................................................................................................... 5
Luxury and organic products consumers .................................................................................... 5
Comparison between the Brazilian and French consumer ......................................................... 5
III. Pestle analysis ................................................................................................................................. 7
Political factors............................................................................................................................ 7
Economic factors......................................................................................................................... 7
Social factors ............................................................................................................................... 7
Technological factors .................................................................................................................. 7
Legal factors ................................................................................................................................ 8
Environmental factors................................................................................................................. 8
IV. Who are my competitors?............................................................................................................... 8
VIVANT ........................................................................................................................................ 8
Tasting IN .................................................................................................................................... 9
Wine.com .................................................................................................................................... 9
V. Marketing Mix (4 Ps) ....................................................................................................................... 9
Product ........................................................................................................................................ 9
Price .......................................................................................................................................... 11
Place .......................................................................................................................................... 11
Promotion ................................................................................................................................. 12
VI. SWOT Analysis ............................................................................................................................... 13
VII. My business model ........................................................................................................................ 14
Conclusion ............................................................................................................................................. 15
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Introduction
The current sanitary, economic and social crisis due to the COVID19 pandemic has completely
modified our way of living and doing business. Thinking about the crisis as an opportunity to create
new projects, I came up with this idea: “Why not organizing online wine tasting?” An activity that
matches up with the lack of mobility and the restrictions we are facing nowadays. My business project
will focus on promoting and selling organic French wines through the online experiences. As for target,
I chose the Brazilian market, because the country is a strong consumer of luxury products worldwide.
Geographic situation
With 8.515.770 km2 area, Brazil is a huge country (13 times France) in the South American continent.
Its capital city is Brasilia and its official language Portuguese. English is the most commonly spoken
foreign language in Brazil. The Brazilians generally understand Spanish and French is spoken by around
570.000 people across the country.
Demography
The total population is 211.049.527 inhabitants with a medium age of twenty-seven, 87% of the
population live in urban areas; the most populated cities are Sao Paulo, Rio de Janeiro, Belo Horizonte
and Brasilia, with 10%, 6%, 3% and 2% of the total population respectively. About 48% of the
population is of European origin, 43% of mixed ethnic origin. There is a very strong catholic tradition
in the country.
Political situation
Brazil is a federal presidential republic. Since 2019, the president Jair BOLSONARO is both chief of state
and head of government. Even if Bolsonaro's policies are controversial and continue to polarise the
Brazilian society into the president's supporters or detractors, the economic response in the beginning
of his mandate was positive, thanks to the new Minister of the Economy, Paulo Guedes.
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Economic data
In spite of being the largest economy in South America, Brazil is still considered as an emerging country
due to its low GDP1 per capita (10.400 USD2 in 2020), low living standards, high infant mortality rate,
and other factors. It is the seventh world economy with high inequalities. The unemployment rate is
14.1%, its national currency the Brazilian real (BRL).
International relationship
The country is willing to increase trade within the Mercosur bloc of countries but reluctant to expand
its trade relations with the European Union because it fears conflicts with its south-south foreign
policy strategy and a possible separation from its developing world allies. Brazil is not yet part of the
OECD3 but is a key partner of the organization and belong to the potential member states.
The exports from France to Brazil reached €4.51 billion (+8%) in 2018. Brazil is France’s 21ᵗʰ largest
customer. In spite of the recession, bilateral trade remains strong and generate surpluses for France.
The long-standing relationship between Brazil and France was enhanced with the building of an
ambitious Strategic Partnership launched in May 2006 by Presidents Lula and Chirac. (Générale),
(relations), (Étrangères)
Global data
The average monthly salary of a Brazilian was BRL 8,535 (€ 1,290) in July 2020. However, income
inequality is a big issue in Brazil, the income of the richest 5% of the population is equal to the sum of
incomes of the remaining 95%. The best standards of living can be seen in the southern areas of Brazil.
E-commerce is widely extended among costumers, with 20 million regular Internet users. Facebook is
present and has a dominant position in the Brazilian market. Brazilians are likely to searching for
information about brands and products to assist their purchase decision.
People tend to spend their money on experiences as much as they spend on products. Brazilian
shoppers of all socioeconomic classes are used to payment instalments.
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Gross domestic product
2
United States Dollars
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Organisation for Economic Co-operation and Development
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Wine consumers
Between 2019 and 2020, the Brazilian wine market gained 3 million regular wine drinkers. Brazil is
already the third largest market in the world, in absolute numbers, for consumers of wine online.
The households with incomes above € 2,000 are the strongest wine consumers as wine remains one
of the most expensive alcoholic beverages. The typical consumer is a 45-year-old man, but wine is
increasingly attracting young people (25 years and older) from the well-to-do classes.
Wine consumption is growing in the southern regions, particularly in the states of Sao Paulo and Rio
de Janeiro (70% of the country's total consumption). French appellations are increasingly exported to
Brazil (up 70.2% in volume in 2017). (AD’OCC)
1. Main figures
The population of Brazil is a huge market; more than three times bigger that France. People in Brazil
is quite young with a median age of 29. The purchasing power in Brazil is lower than in France but
money is unequally shared and the wealth is in the hand of a few ones. In terms of education, the
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poorest citizens do not have access to upper education; the school enrolment rate in Brazil is up to
49% vs 68% in France.
2. Consumer behaviour
France Brazil
French people are increasingly attracted Brazil has the largest and most developed e-
by online sales, e-commerce and m- commerce market in Latin America, ranking
Consumer commerce (smartphone use) 10th in the world for most e-commerce sales
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III. Pestle analysis
In order to define our macro-environment, I will use the PESTLE model to analyse the environmental
factors that may affect my business.
Political factors
✔Strategic Partnership between France and ✖Averseness to expand trade with the UE
Brazil ✖Sanitary measures and mobility restrictions
due to the Covid-19 pandemic
Economic factors
✔Brazil is the world's ninth largest economy ✖The usage of payment instalments forces
✔GDP is expected to grow by +2.8% in 2021 and companies to forge partnerships with banks
✔Organic packaged food and beverages expect ✖Imports represent only 22% of GDP
to record a CAGR4 of 4.1% for the period 2019-
2024
Social factors
✔E-commerce is common among costumers ✖High level of inequality
✔People tend to spend their money on ✖The immediacy of demand leads to the
experiences as much as they spend on necessity of higher levels of stock
products ✖Language barriers
✔Brazil, 3rd largest contributor to worldwide
luxury consumption growth
Technological factors
✔20 million regular Internet users in Brazil
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Compound Annual Growth Rate
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✖E-commerce and social media management
requires technical skills (implies hiring
professionals and more costs)
Legal factors
✖Customs Duties and Taxes on Imports
Environmental factors
✖Respect of environmental and social values during the whole process (providers, partners, logistics,
packaging, etc.) increases costs
(COFACE), (SANTANDER), (AD’OCC)
After browsing the internet, I selected three interesting service providers of wine experiences and will
analyse them below: Vivant, Tasting IN and Wine.com.
VIVANT
Slogan: Taste. Learn. Enjoy. Join the future of wine.
Sell wines made with respect for people and the environment
French organic wines
Yearly membership to enjoy live experiences (tastings, courses)
Experience Kits for the experiences (six 10cl tasting tubes or three 75cl bottles of wine)
Team of polyglot partners and wine experts and producers
Languages available: French, English, German
Online sessions with several guests each time (VIVANT, s.f.)
👍 Competitive advantages: Organic products, exclusive wines, membership, sessions with various
partners
👎 Competitive weaknesses: Very small target market, European oriented
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Tasting IN
• Slogan: A World of Online Tasting
• Online testing of wines, beers, chocolates and Iberian ham
• Each tasting includes a pack of products
• One shot payment for each session
• Team of polyglot partners and wine experts
• Languages available: Spanish, French, English, Dutch
• Service for individuals or for companies (TastingIN, s.f.)
👍 Competitive advantages: Different products proposed (diversification), affordable and larger
target market
👎 Competitive weaknesses: Not organic oriented, not exclusive enough for the luxe market
Wine.com
• Slogan: Wine Delivered Right to Your Door
• Main activity is selling wines online but they offer online tasting experiences for free to
encourage customers to buy the wines to taste it at the same time
• Wine for all over the world (California, France, Italy, Spain, etc)
• Partnership with wine experts
• Languages available: English (Wine.com, s.f.)
👍 Competitive advantages: Huge portfolio, affordable, tasting for free
👎 Competitive weaknesses: Focused on the American market, shipping to United States only
Let me now describe our marketing strategy using the Marketing Mix analysis of the four 4 Ps: Product,
Price, Place and promotion.
Product
Brand Tannin
Slogan French Taste at Home
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Our Products:
Online experiences: wine tastings and courses, for
individuals and companies
Exclusive organic French wines
Personalized sessions with wine experts, sommeliers and
producers
Selection and sending of chosen wines and accessories for
each experience
Languages available: French, English, Portuguese
All the wines we promote and offer must own the label “Agriculture Biologique”5
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The “Agriculture Biologique” label is a French quality label created in 1985, and based on the prohibition of the
use of products derived from synthetic chemistry. It identifies organically grown products.
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The values we want to highlight:
Senses
Exclusivity, luxe and personalization
Environmental respect and social compromise
Organic Products
Producer’s enhancement
Packaging:
Recyclable materials
Packaging on demand
Price
Since the product’s offer focuses on organic and luxe products as well as a personalized and exclusive
service, we will choose a “prestigious pricing” strategy, focused on rarity, quality, origin,
environmental and social responsibility.
We have seen earlier in our study that the Brazilian consumers we want to target, have a high
acquisition power and that they are attracted by luxe goods. Furthermore, when it comes to organic
products, consumers are not price sensitive because the values they express are worth it:
environmental and social impact, quality label, recyclable packaging, etc.
Place
Our wine experiences can take place at home for particular consumers, at the office for company’s
events or in hotel’s meeting rooms for bigger events.
Sales
o Direct sales: Through our own e-commerce website Directly to restaurateurs
(commercial work for Paris restaurants)
o Indirect sale: Through collaboration with hotels in Sao Paulo, Rio de Janeiro, Belo
Horizonte and Brasilia (most populated cities of Brazil)
Delivery of wines and accessories for tastings, through transport companies with
environmental and social commitments (from our warehouse or directly from the producers
places to the event’s venue)
Necessity of a warehouse to keep some stock of wines and accessories for the experiences
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Promotion
The promotion will be oriented in three axes: e-commerce, social networks and direct commercial
actions.
E-commerce
- Creation of website and e-commerce platform
- Investment in Google - paid SEA campaign - to get a better positioning at the beginning on
specific keywords (wine tasting, French wines, organic wines). Brazil has the third highest
number of Google+ users worldwide. (Translate Media)
Work on organic SEO positioning to gain positions in results in Google (long-term investment)
Social media
Brazil has the third largest Facebook user base in the world, after India and the United States. Besides,
almost 18 million people use Twitter, making Brazil the sixth highest user base for Twitter.
That is why we will take the following actions:
- Open a LinkedIn profile to connect with companies
- Open a Twitter and a Facebook profile to get in touch with individuals
- Use YouTube
Commercial actions:
Local visits to look for collaborators in big cities: hotels with meeting rooms for example.
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VI. SWOT Analysis
Strenghts Weaknesses
Opportunities Threats
French wines are famous internationally High customs fees and taxes
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VII. My business model
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Conclusion
Working on this project has been a good opportunity to know better the country of Brazil and the
behaviours of its consumers. I found it interesting to compare the two countries, we are lucky
nowadays to have access to many studies and analytics in the internet to get information about
numerous topics.
I was surprised to find many competitors already offering this type of online experiences; I think I will
try one of them in the future!
I think this project is ideal in our current situation with many restrictions and lockdowns all around
the world, this is a way to escape and enjoy online. Nether the less, focusing only on one market as
Brazil would be a mistake. With the internet we can get to many markets, the catchment area is almost
infinite, to make this business work we should take profit of it and target other countries attracted by
French wines and luxury as China and Russia for example.
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References
AD’OCC, A. d. (n.d.). Retrieved from Brésil : La consommation de vin: https://export.agence-
adocc.com/fr/fiches-pays/bresil/vin/la-consommation-de-vin
COFACE. (n.d.). Coface for Trade. Retrieved from https://www.coface.com/Economic-Studies-and-
Country-Risks/Brazil
Étrangères, M. d. (n.d.). France Diplomatie. Retrieved from
https://www.diplomatie.gouv.fr/fr/dossiers-pays/bresil/relations-bilaterales/
Générale, S. (n.d.). Import Export Solutions. Retrieved from https://import-
export.societegenerale.fr/en/country/brazil/presentation-geography
McKinsey & Company. (2014). Capturing the hearts of Brazil’s luxury consumers.
relations, C. o. (n.d.). Retrieved from https://www.cfr.org/backgrounder/brazil-international-stage
SANTANDER. (n.d.). Santander Trade. Retrieved from https://santandertrade.com/en/portal/analyse-
markets/brazil
TastingIN. (n.d.). Retrieved from https://tastingin.com/
Universidade Federal do Rio Grande do Norte. (n.d.). Factors affecting the consumption of organic and
functional foods in Brazil.
VIVANT. (n.d.). Retrieved from https://vivant.eco/
Wine intelligence. (n.d.). BRAZIL’S WINE DRINKING POPULATION EXPANDS. Retrieved from
https://www.wineintelligence.com/brazils-wine-drinking-population-expands/
Wine.com. (n.d.). Wine.com. Retrieved from https://www.wine.com/content/landing/virtual-tastings
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