Porcelain Pony Inc.
Executive Summary
The following 2010 Marketing Proposal presents the possible entrance of Porcelain Pony
Inc. into São Paulo and Rio de Janeiro, Brazil
Brazil is an emerging economy in Latin America with huge growth potential, and high
interest from foreign investors. Quality hotels are currently in low supply in Brazil, and
construction of hotels and housing is forecasted to meet the demands of the increasing tourism
rates as foreigners take advantage of the deflated Brazilian Real. Brazil is the venue for the 2014
World Cup, and will be held in both São Paulo and Rio de Janeiro. Also, the 2016 World
Olympics are going to be in Rio de Janeiro. Along with the existing growth potential of Brazil,
these events will also boost infrastructure development and construction of apartment buildings,
hotels, corporate housing and residential houses.
Porcelain Pony Inc. focuses on the production of high quality bidets at a low cost and has
several internal strengths that will lead to the successful penetration of the Brazilian marketplace.
We have analyzed the multiple options of distribution, and found the most cost beneficial
method of moving our products from our supplier in Long Beach, California to our warehouse in
São Paulo, Brazil. Porcelain Pony Inc. will be selling mainly to businesses, meaning there will
not be any unsatisfied clients. This reinforced supply chain is a major strength and will play a
significant role in the successes of Porcelain Pony Inc.
We expect to break-even within the second year of operations and have a profit of $2
million by 2016.
Marketing Plan: Brazil 1
Porcelain Pony Inc.
Table of Contents
Company Overview
Mission/Vision Statement
Related Economic and Cultural Influences
Market Overview
Market Entry
Barriers to Entry
Marketing Mix
Customers
Product
Price
Place
Promotion
SWOT Analysis
Distribution Strategy
Financials
Break Even Analysis
Income Statements
Conclusion
Appendix
Export Quotation Worksheet
Pro Forma Invoice
Commercial Invoice
Fatura Comercial
Packing List
Shipper’s Export Declaration
Ocean Bill of Lading
Certificate of Origin
Insurance Certificate
Bank Draft
Letter of Credit
Sources Used
3
4
7
8
12
15
17
21
22
Marketing Plan: Brazil 2
Porcelain Pony Inc.
Company Overview
Porcelain Pony Inc. is an up and coming company that devotes its time exporting
bidets to emerging and developing markets areas.
A sysnonym for bidet is “Small Saddle Horse,” which is a pony. We combined the
concept of their products raw material, ceramic or porcelain with this pony-like description
to arrive at the company name “Porcelain Pony.”
Currently, the company is focusing on supplying two markets in Brazil with high
quality, cost effective bidets, which will be used in hotels. These products will be marketed
to service based companies to be implemented in the next few years. Porcelain Pony Inc is
driven by being proactive in finding emerging markets and capitalizing in their potential.
The company looks to expand in the future, but wants to establish a strong brand
image in Sao Paulo and Rio de Janiero, which both have forecasted high tourism in the near
future.
Mission/Vision Statement
Porcelain Pony Inc. will be recognized as the most progressive enterprise in the
bidet business. We will provide our customers with high quality bidets at a low cost and
promote cleanliness and health in Brazil. We want a net income 2 million dollars and
revenue of 22 million dollars by 2016.
“A sprayed behind is a clean behind”
Marketing Plan: Brazil 3
Porcelain Pony Inc.
Related Economic and Cultural Influences
Cultural Influences
The Portuguese were the first European settlers to arrive in the area, led by adventurous
Pedro Cabral, who began the colonial period in 1500. To a degree unequaled in most of the
American colonies, the Portuguese settlers frequently intermarried with both the Indians and the
African slaves, and there were also mixed marriages between the Africans and Indians. As a
result, Brazil's population is intermingled to a degree that is unseen elsewhere. Most Brazilians
possess some combination of European, African, Amerindian, Asian, and Middle Eastern
lineage, and this multiplicity of cultural legacies is a notable feature of current Brazilian culture.
In the 19th century coffee became Brazil's most important product. The boom in coffee
production brought a wave of almost one million European immigrants, mostly Italians, and also
brought about the Brazilian republic. The coffee planters virtually owned the country and the
government, until the worldwide depression evaporated coffee demand. For a long while, Brazil
struggled with governmental instability, military coups, and a fragile economy. In 1989, the
country enjoyed its first democratic election in almost three decades. Unfortunately, the
Brazilians made the mistake of electing Fernando Collor de Mello. Mello's corruption did
nothing to help the economy, but his peaceful removal from office indicated at least that the
country's political and governmental structures are stable.
Family is the foundation of the Brazilian social structure. The nuclear family has strong
ties to the extended family, which includes cousins, aunts, uncles, grandparents, godparents, and
close friends. It is quite common to have three generations living under the same roof. Married
children tend to live in a house or apartment near the parents. The extended family in Brazil
remains critical to any understanding of Brazilian society. Social interactions are the mortar of
society holding the entire country together. The first basis of interaction is the extended family.
In other words to trust is inside the extended family.
The life expectancy of schooling in Brazil from primary to tertiary education is roughly a
total of 14 years for males and 15 years for females. Brazil spends about 4% of the country’s
GDP on education expenditures. On average people can read and write from age 15 and older.
About 88 percent of the total population is literate.
Marketing Plan: Brazil 4
Porcelain Pony Inc.
The Brazilian legal system is based on Civil Law tradition. The Federal Constitution, in
force since October 5th, 1988, is the supreme rule of the country and is characterized by its rigid
written form. The Constitution organizes the country as a Federative Republic, formed by the
indissoluble union of the states and municipalities and of the Federal District. The 26 federate
states have powers to adopt their own Constitutions and laws; their autonomy, however, is
limited by the principles established in the Federal Constitution.
Brazil has a population of 146 Million people concentrated on its two hundred miles of
east coast. Over 90 percent of the people live on 10 percent of the land, and over 15 Million live
in Sao Paulo and Rio de Janeiro. Brazil’s ethnic composition is 55 percent European descent
(primarily Portuguese), 38 percent a mixture of cultures (African, German, Japanese,
Amerindian, and so forth), 6 percent African, and only 1 percent Amerindian.
Brazil inherited a highly stratified society from the colonial system and from slavery,
which persisted for nearly three generations after independence in 1822. The legacy of sharp
socioeconomic stratification is reflected in Brazil's highly skewed income distribution, among
the world's worst. In 1990 the number of indigents suffering from extreme poverty was estimated
to be at least 32 million, about one-fifth of the country's total population. This included an
estimated 9.6 percent of the residents of metropolitan areas, 18.4 percent of the population of
other urban areas, and 42.8 percent of the rural population.
Futbol is the most prominent sport in Brazil. The Brazilian national team has been
victorious in the FIFA World Cup tournament a record five times, in 1958, 1962, 1970, 1994 and
2002 and is the only team to have never missed a World Cup. In fact, Brazil will be hosting the
World Cup in 2014, which we feel may help with sales in future years. Over 10,000 Brazilians
play professionally at home and all over the world. Brazil has even been called “The Futbol
Country”. Brazilian companies have been known for shutting down operations on the day on
large games and providing their employees with a place to watch the game.
Carnival is also a big event in Brazil where business is left to a standstill. Carnival is an
annual festival that occurs 40 days before Easter. Carnival is the most famous holiday in Brazil
where the whole country basically stops for a week to participate in festivities of all kinds. When
contacting an agent in Brazil during Carnival, we got a response over a week later; it included
regrets for untimely help as it was Carnival the past week and no one was working.
Marketing Plan: Brazil 5
Porcelain Pony Inc.
The official language of Brazil is Portuguese; it is the most widely spoken language in
the country. Spanish is spoken on the border areas and in schools, while other less common
languages include German, Italian, Japanese, English, and a large number of minor Amerindian
languages.
Economic Influences
Brazil is rich in resources and rich in people. Brazil has the largest economy in Latin
America, and is considered the locomotive of Latin America. With nearly 200 inhabitants,
favorable demographic development and strong economic growth, Brazil is a promising
market with huge potential.
Brazil has the fifth highest population in the world with 198,739,269 people. 86%
of the population lives in urban regions. São Paulo and Rio de Janeiro are far larger than
any other Brazilian city with nearly 20 million inhabitants.
Gross national product was $2.024 trillion in 2009 and has been steadily increasing
in the past decade at a real growth rate of 1.3%. Brazil is one of the fastest growing
emerging economies in the world. Brazil relies mainly on agriculture (coffee, soybeans,
wheat, rice, corn, sugarcane, cocoa, citris), mining, manufacturing, and service sectors.
Personal income per capita is $10,200.
Brazil is generally open to and encourages foreign investment. Brazil is the largest
recipient of foreign direct investment (FDI) in Latin America, and the United States is
traditionally the number one foreign investor in Brazil. Imports were $136 billion in
2009. Import partners include: US 14.9%, China 11.6%, Argentina 7.9%,
Germany 7%. Major imports into Brazil incl ude: fuels and lubricants, intermediate
parts, mineral products, accessories for transportation equipment, non-durable consumer
goods, farming: raw materials, industrial machinery, office/science equipment, and fixed
equipment. The current rate of exchange is 1 USD = 1.811 BRL.
Marketing Plan: Brazil 6
Porcelain Pony Inc.
Market Entry
Barriers to Entry
There are several factors that make exporting to Brazil very difficult. Although they
will not necessarily deter companies from entering that market, they do take thoughtful
consideration.
Brazil is seen as a protectionist; trends show that Brazil will implement high tariffs
just so Brazilian companies have a chance at competing with foreign companies. Brazil
wants to protect the companies within the country and will go to great lengths to keep it
this way. Brazil has a policy on the importation of used goods. Brazilian agent Taciana
Zacharias warns, “It is important that the bidet is NEW, otherwise importation will be
subject to the approval of Development Ministry of Industry and Foreign Trade.” Brazil is
very strict on what they allow into their country. If a product is not being produced in
Brazil, then a company will be able to import used products into Brazil, but if a company in
Brazil can make it, then no used products may be imported.
When it comes to paperwork, Brazil demands more paperwork to be done. First and
foremost, Brazil requires companies to fill out a document called Fatura Comercial, which is
the Brazilian version of the Commercial Invoice. Brazil also requires companies to have
several documents written in Portuguese as well as English. These documents include the
Commercial Invoice, Packing List, original Bill of Lading and Statement of Origin.
Marketing Plan: Brazil 7
Porcelain Pony Inc.
Marketing Mix
Customers
Hotels
Porcelain Pony Inc. is looking to capitalize on the development of new hotels in our target
markets São Paulo and Rio de Janeiro,
Brazil. Despite the global recession,
Brazil holds interest from foreign
investors. Along with being the venue
for the World Cup in 2014, the
devaluation of the Brazilian real has
caused Brazil’s tourism market to
boom. There is currently a low supply
of quality hotels, so it is forecasted that
higher quality hotels will be built to meet demand. Investors see the long-term growth
potential, and hotels are among the leading asset class for investment in Brazil.
Service Companies
Porcelain Pony Inc. will target service companies
which are assisting in the construction of new
developments Brazil. We will supply bidets to
interior designers, architects, plumbers, engineers,
housing development contractors, builders and
retailers. Construction companies are not
responsible for picking the products; they oversee
the overall completion of the product. They
outsource the plumbing jobs and design jobs to
those who know the field better; therefore, it is
better to target these customers as they will have more of an impact on the new hotel
developments in São Paulo and Rio de Janeiro.
Marketing Plan: Brazil 8
Porcelain Pony Inc.
The Product
Bidet Water Basin
The Product
Schedule B: 691010025
Description: Elegant design, smooth surface, and white in color. The Bidet can be
used in homes, restaurants, and hotels. Each bidet is individually packaged; 10
bidets are packaged onto each pallet. Each box has the Porcelain Pony Inc logo on
the box and the mark “68B” is on each pallet.
Product Dimensions: 21.25” x 15.75” x 14.40”
Weight: 11.02lb
Packaging: Boxes on pallets
The Supplier
Company: Sultan International LLC
Address: P. O. Box 50018
Long Beach, Ca 90815
Price/Bidet: $37.25
Cost/TEU Load: $2,980.00
Shipping
Packaging Dimensions: 23” x 16.40” x 15.35”
Packaging Weight: 12lbs
Products/Pallet: 10
Container size: TEU
Pallets/Container: 8
Products/Container: 80/TEU
Weight if Product in Container: 960lbs
Marketing Plan: Brazil 9
Porcelain Pony Inc.
The Price
Value of Goods
$ 2980.00
Duty
Import Duty (18%)
Duty Over Industrialized Products (0%)
Social Integration Program (1.65%)
Contribution to the Social Security Financing (7.60%)
$ 812.00
$ 6.71
$0
$ 0.61
$ 2.83
Truck Freight
Domestic
International
$ 1,904.51
$ 300.05
$ 2204.56
Ocean Freight and Insurance
$ 2027.90
Indirect Labor
$ 160.00
Porcelain Pony Inc. Markup (15%)
$ 1227.67
Total
Total Price per Bidet
$ 9412.13
$ 117.65
Place
Porcelain Pony Inc. bidets will be sold in São Paulo and Rio de Janiero, Brazil. These
two cities have a high population, interest from foreign hotel investors, and high tourism
rates. There is a huge market for high quality/low cost bidets, and this market will increase
as foreign investors continue to invest in hotel developments to meet tourism demand.
Promotion
Porcelain Pony Inc. plans to attract new customers, build and maintain a positive
image of the company, and stand out from our competitors by sending representatives to
tradeshows. Porcelain Pony Inc. is attending the Kitchen & Bath Expo: International trade
show and conference for the Kitchen & Bath industry in South America by Nurnberg/Messe in
Sao Paulo, Brazil in March, 2010. This trade show is anticipating attendance by interior
designers, architects, engineers, builders and retailers. Trade shows are the main promotion
Marketing Plan: Brazil 10
Porcelain Pony Inc.
route Porcelain Pony Inc. is planning to take to attract the service company sector of our
clientele base.
Porcelain Pony Inc. is also going to promote their product through an active and upto-date website. Porcelain Pony Inc.'s web page will help promote our image and our product
to customers. It will feature our high quality bidet and will give the consumer the ability to shop
directly from our foreign warehouse in Brazil. A snapshot of our website can be found below.
http://porcelainpony.webuda.com/
Marketing Plan: Brazil 11
Porcelain Pony Inc.
SWOT Analysis
Strengths
Porcelain Pony has several internal strengths that will lead to the successful
penetration of the Brazilian marketplace. The first keynote strength is a solid team in which
thoughts, idea’s, and instruction come effortlessly. This group bond is a great corner stone
in our strengths because it will facilitate the challenges and threats in a dynamically
proactive manner. Porcelain Pony’s human assets are one of its many competitive
advantages.
Our second strength is the acquired of knowledge of Brazil. Over a period of several
months the Porcelain Pony team has collected vast amounts of research on Brazil’s culture,
economy, marketplace and people. If information is power then we are an empire. Using
the information we now internally have enables us to sell our products effectively,
efficiently and without marketing blunders.
Porcelain Pony has a great product at an extremely cost conscious price. This
enables the supply chain to achieve a higher customer service level and fill rate. Since
Porcelain Pony will mainly be selling to businesses there can be no unsatisfied clients
because we aren’t just selling one bidet to one person; we are selling hundreds to
thousands per client. There can be no unsatisfied client. This is done by having an
excellent supply chain. This reinforced supply chain is a major strength and will play a
significant role in the successes of Porcelain Pony.
Weaknesses
Porcelain Pony's internal weaknesses are many; however, these shortcomings are
easily overcome with dull diligence, teamwork, patience and hard work.
The first and critical short coming of the team is that most do not speak the primary
language in Brazil: Portuguese. This language barrier is certainly an internal weakness. If
one wants to do business in any foreign country one must speak the language. If our
competitors are able to accomplish this then in order to stay competitive we must
overcome and build this weakness into our strength.
Marketing Plan: Brazil 12
Porcelain Pony Inc.
The second weakness is the overall lack of experience Porcelain Pony has in the
Brazilian market place. Warren Buffest said “Can you really explain to a fish what it's like
to walk on land? One day on land is worth a thousand years of talking about it, and one day
running a business has exactly the same kind of value.” All of us are new to doing business
in Brazil. There is only so much that research can prepare for. There will be many
challenges ahead that will push the team to its limits. This can only be overcome by one of
our greatest strengths: teamwork. Our inexperience is an internal weakness that we are
happy to overcome.
Opportunities
Brazil is playing host to a variety of international events that will dramatically
increase the demand for The Porcelain Pony. The 2014 Soccer (football) world cup will be
held in both of our current demographic locations within Brazil. In addition in 2016 the
World Olympics will be held in Rio de Janeiro. These events will strongly boost
infrastructure growth and thus the demand for bidets will dramatically increase
throughout the next six years.
Brazil is one the largest growing economies in the world. In fact it was one least
impacted by the global recession with a strengthening currency. This will create large
amounts of new apartment buildings, hotels, corporate housing and residential houses.
The Consumer Price Index in Brazil is double that of the United States. This has
been historically rising and dramatically affects the price of all products. What this means
is that each year while we constantly negotiate for a lower price of our product from our
supplier we will be able to increase the price to our consumers creating a greater profit
margin as we continue to operate.
Costs
A potential threat is our supply chain length. Our supplier is currently located in
California. This is literally across the entire country from our corporate warehouse and
distribution center in Florida. Once shipped to Florida the product must travel south to Sao
Paulo. This is a vast distance to travel. This is an enormous threat to our supply chain that
Marketing Plan: Brazil 13
Porcelain Pony Inc.
is compensated by having a higher safety stock, and keeping our CSL high. While we are
confident we are able to manage the flow of product from our supplier, to our DC and then
to our warehouse in Sao Paulo. There are many external circumstances that may hinder
this process. For example: weather, traffic delays, infrastructure issues, maintenance
issues and natural disasters.
Further government sanctions pose a significant threat to our business. Brazil is a
country with many import restrictions and regulation. They have put this in place to
bolster internal manufacturing and business. If Brazil increases tariff duty then our
product price will have to rise in conjunction with the increased tariff. This will give
domestic bidet manufactures a competitive advantage over our price point.
The crime rate in Brazil has been rising continuously over the past six years. Many
Brazilian citizens call it their “Urban War”. This increased risk affects all avenues of
business in Brazil. This can include inventory shrink, employee absence due to urban
violence, armed robbery, executive kidnap and murder. In response to this we at Porcelain
Pony will conduct mandatory training to assets all employees operating in Brazil how to
effectively deal with a criminal situation without succumbing to violence.
Being a U.S. corporation we must follow the rule of law in our own country as well
as the country we are doing business in. One major practice that is a monumental threat to
our business model is the common practice of bribery in Brazil. We will not bribe any
persons in any station to secure business. This may severally hamper on our ability to
conduct business in Brazil.
Marketing Plan: Brazil 14
Porcelain Pony Inc.
Distribution
Our distribution model shows the steps we are taking from purchasing out bidets
from our supplier in Long Beach to the final customers in both the Rio de Janeiro and Sao
Paulo, Brazil. Once we purchase our products from our supplier, Sultran International LLC
in Long Beach, CA, we will use trucking provided by Freight Corner LLC to transport the
product to our warehouse in Miami, Florida. We will also use their trucking services to
transport our product to the Port of Miami, which will then be sent to our foreign buyers.
The most efficient way for us to export our products from the United States is by way of
ocean freight from the Port of Miami, Florida directly to the Port of Santos, Brazil. Our
carrier of choice is Maersk Sealand
Shipping Line. With Maersk, it will take
about 33 days to move our product on the
ocean. Although there were other carriers
that provided faster service, it was more
cost-efficient to ship our products via
Maersk. Other shipping lines take less
time, but do not ship to Santos, or any
ports near to our warehouse; therefore, it
makes more sense to take additional time
to send it to a closer port to our
warehouses and allow fewer touches in the
distribution channel.
After the arrival of our products to the Port in Brazil, we will transport them using
Brazil Trucking Inc. to our warehouse/distribution center which is located in Sao Paulo.
Once we have our products in our warehouse, we will be ready to ship them to our final
customers whether that is high-end hotels, service companies, or any other source that
may require our product. Since we also have a website, we will also be able to provide
direct orders to customers from the port or any other more efficient way if at all possible.
This description can be seen below in chart form.
Marketing Plan: Brazil 15
Porcelain Pony Inc.
Important Addresses
Supplier- Long Beach, CA
Sultan International LLC.
P.O. Box 5, Long Beach, CA
Transportation
Trucking: Freight Corner LLC.
and Brazil Trucking Inc.
Ocean Carrier: Maersk Sealand
Warehouse-Miami, Florida
(Domestic Warehouse)
6500 NW 72 Ave.
Miami, FL, 33166
Warehouse Sao Paulo, Brazil
(Foreign Warehouse)
Rua Faustolo
Sao Paulo, 05041-001
Brazil
Port of Miami, FL (Sending Port)
1015 N. American Way
Miami, FL, 33166
Port of Santos, Brazil
(Destination Port)
Avenida Rodrigues Alves s/n
Santos, Sao Paulo 11015-900
Brazil
Distribution Flow Chart
*Sultan International LLC.
P.O Box 50018, Long Beach,CA
Supplier
Long Beach, Ca
---Trucker: Freight Corner LLC.---
*6500 NW 72 Ave
Miami,FL, 33166
Warehouse
Miami, FL
---Trucker: Freight Corner LLC.---
*1015 N. American Way
Miami, FL, 33132
Port of Miami
---Shipping Line: Maersk Sealand---
*Avenida Rodrigues Alves s/n
Santos, Sao Paulo 11015-900
Brazil
Port of Santos,
Brazil
---Trucker: Brazil Trucking---
*Rua Faustolo
Sao Paulo, 05041-001
Brazil
High-End
Hotels
Warehouse Sao
Paulo, Brazil
Service Companies
(Architects, Plumbing
Companies, etc)
Other Final
Customers
Marketing Plan: Brazil 16
Porcelain Pony Inc.
Financials
Break Even Analysis
BREAK-EVEN ANALYSIS
Fixed Costs
Costs required to produce the first unit
of a product.
Definition
Cost
155,000.00
Advertising Budget
Variable Unit Costs
Costs that vary directly with the production of
one additional unit.
Definition
Cost
37.25
Bidet Cost
Amortization
320,180.13
Duties
10.15
Bank Charges
15,000.00
Shipping Costs
52.90
Contracted Labor
5,000.00
Indirect Labor
2.00
Deprecation
35,800.00
Employee Benefits
31,200.00
Insurance Expense
31,600.00
Maintenance
43,150.00
Rent
210,000.00
Other
520,021.00
Unit Selling Price:
117.65
The amount of money charged to the customer for each unit of a product or service.
Expected Unit Sales:
80,000
Number of units of the product projected to be sold over a specific period of time.
89,052.
Break-Even Units:
19
Marketing Plan: Brazil 17
Porcelain Pony Inc.
BREAK-EVEN ANALYSIS
Total Fixed Costs:
Total Variable Unit
Costs:
1,366,9
51.13
102.30
Expected Unit Sales:
80,000
Price per Unit:
117.65
89,052.
19
Break Even Units:
Units
Fixed Cost
Variable
Cost
10,000
1,366,951.13
1,023,000.00
20,000
1,366,951.13
2,046,000.00
30,000
1,366,951.13
3,069,000.00
40,000
1,366,951.13
4,092,000.00
50,000
1,366,951.13
5,115,000.00
60,000
1,366,951.13
6,138,000.00
70,000
1,366,951.13
7,161,000.00
80,000
1,366,951.13
8,184,000.00
You cannot compensate your
costs and make profit.
Total Cost
2,389,951.1
3
3,412,951.1
3
4,435,951.1
3
5,458,951.1
3
6,481,951.1
3
7,504,951.1
3
8,527,951.1
3
9,550,951.1
3
Revenue
1,176,500.0
0
2,353,000.0
0
3,529,500.0
0
4,706,000.0
0
5,882,500.0
0
7,059,000.0
0
8,235,500.0
0
9,412,000.0
0
Profit
1,213,451.13
1,059,951.13
-906,451.13
-752,951.13
-599,451.13
-445,951.13
-292,451.13
-138,951.13
Marketing Plan: Brazil 18
Porcelain Pony Inc.
Income Statement
Income Statement
Porcelian Pony
Year Ending 12/1/2011
Financial Statements in U.S. Dollars
Revenue
Gross Sales
Less: Sales Returns and Allowances
9200115
32000
9168115
Net Sales
Cost of Goods Sold
Beginning Inventory
Add:
186250
Purchases
2793750
Freight-in
4232000
Direct Labor
Indirect Expenses
Inventory Available
Less: Ending Inventory
15000
761250
7988250
10200
Cost of Goods Sold
7978050
Gross Profit (Loss)
1190065
Expenses
Advertising
155000
Amortization
320180
Bad Debts
Bank Charges
0
15000
Charitable Contributions
0
Commissions
0
Contract Labor
Depreciation
Dues and Subscriptions
5000
35800
120
Employee Benefit Programs
31200
Insurance
31600
Interest
0
Legal and Professional Fees
1200
Licenses and Fees
1400
Marketing Plan: Brazil 19
Porcelain Pony Inc.
Miscellaneous
32000
Office Expense
21000
Payroll Taxes
16522
Postage
Rent
651
210000
Repairs and Maintenance
43510
Supplies
12900
Telephone
15189
Travel
89185
Utilities
Vehicle Expenses
Wages
9854
0
320000
Total Expenses
1367311
Net Operating Income
(177246)
Other Income
Gain (Loss) on Sale of Assets
Interest Income
Total Other Income
Net Income (Loss)
21500
21500
(155746)
Marketing Plan: Brazil 20
Porcelain Pony Inc.
Conclusion
During our first fiscal year, we expect to post a loss of $155,746; however, during
the next four fiscal years, we forecast to make a total profit of $4,000,000. Based on our
findings, it seems beneficial for the company to stick through the losses in the first year and
continue to grow customers, as the demand is still a few years away.
Brazil is a growing economy and is positioned to be one of the worlds super power.
It is currently an untapped developing market with a consistently growing consumer price
index. This leads to an increasing consumer product price while maintaining our low
supply cost. This will greatly improve our net profit margin and bottom line.
Marketing Plan: Brazil 21
Porcelain Pony Inc.
Appendix A
Export Quotation Worksheet
Marketing Plan: Brazil 22
Porcelain Pony Inc.
Appendix B
Pro Forma Invoice
Marketing Plan: Brazil 23
Porcelain Pony Inc.
Appendix C
Commercial Invoice
Marketing Plan: Brazil 24
Porcelain Pony Inc.
Appendix D
Fatura Comercial
Marketing Plan: Brazil 25
Porcelain Pony Inc.
Appendix E
Packing List
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Porcelain Pony Inc.
Appendix F
Shipper’s Export Declaration
Marketing Plan: Brazil 27
Porcelain Pony Inc.
Appendix G
Ocean Bill of Lading
Marketing Plan: Brazil 28
Porcelain Pony Inc.
Appendix H
Certificate of Origin
Marketing Plan: Brazil 29
Porcelain Pony Inc.
Appendix I
Insurance Certificate
Marketing Plan: Brazil 30
Porcelain Pony Inc.
Appendix J
Bank Draft
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Appendix K
Letter of Credit
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Appendix L
Sources Used
Alibaba.com
http://www.alibaba.com/trade/search?SearchText=bidets&Country=&IndexArea=product
_en&ssk=y
Brazil History
http://www.geographia.com/Brazil/brazihistory.htm
Brazil Travel
http://www.v-brazil.com/business/retailers.html
CIA World Fact Book
https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
Consumer Price Index Brazil
http://www.gwu.edu/~ibi/Statistics%20PDF%20Files/IPCA%20Price%20Index.pdf
Every Culture
http://www.everyculture.com/Bo-Co/Brazil.html
Global Edge
http://globaledge.msu.edu/resourcedesk/mpi/
Hotel News Now
http://www.hotelnewsnow.com/Articles.aspx?ArticleId=2813
LDLD: Brazil. Cultural Differences. Family Structures
http://www.ldldproject.net/cultures/brazil/differences/family.html
Sao Paulo Official Website
http://www.saopaulo.sp.gov.br/
United States Department of Labor
http://www.bls.gov/fls/availability.htm
U.S. Department of State
http://www.state.gov/r/pa/ei/bgn/35640.htm#political
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