Running Head: Cultural Analysis Cultural Analysis Introduction Allstar Brands Inc. is a US-based consumer products company founded in 1924 that sells a variety of products such as prescription and non-prescription drugs, as well as consumer products and competes with a multitude of smaller and larger firms depending on the product market making it worth $8.9 billion dollars due to a large offering of leading brands under various product categories. Allstar Brands Inc. has recently organized itself into a global product management structure with three major divisions: Ethical Drugs, Consumer Healthcare, and Consumer Products. Each division has its own brand and category managers which is responsible for international operations and has a certain amount of autonomy in the selection of products and categories for international markets. (Lawrence Feick, Martin Roth, Stuart James (20002009) Country Manager: The International Marketing Simulation) Allsmile, one of the company’s highest recognition brands in the United States is a key asset of Allstar Brand Inc. It is the ideal brand to use to gain entry into the Latin American markets with these countries being considered Argentina, Brazil, Chile, Mexico, Peru and Venezuela. Besides the original Allsmile, there are also three line extensions: Allsmile Whitening, Allsmile Tartar Control and Allsmile Kids. (Lawrence Feick, Martin Roth, Stuart James (2000-2009) Country Manager: The International Marketing Simulation) Brazil is being researched as it offers one of the lowest costs (sale force expenses, fixed costs, administrative and unit costs) amongst the countries to be considered. It is ideal as it is a hub of Latin America and would allow for cheaper Final New Product Development Project transport and distribution routes as it neighbors the other countries in contention. The major selling point of Brazil is that it offers the most sales volume and growth making it attractive for market entry. (Lawrence Feick, Martin Roth, Stuart James (2000-2009) Country Manager: The International Marketing Simulation) Geography of Brazil (Map of Brazil (no date) Lonely Planet) Brazil is the ideal country in which to enter as it is the largest country in Latin America out of the countries that were considered among Argentina, Chile, Mexico, Peru and Venezuela. As illustrated in the map above, Brazil borders the countries under 2 Final New Product Development Project consideration with the exception of Mexico allowing for relative ease in transporting goods to other markets in an efficient manner. (Lonely Planet. (n.d.). Map of Brazil [Map]) Brazil has a total square area of 3, 287, 612 square miles of which 3, 266, 199 square miles is land, due to this it is also the fifth largest country in the world. The coastline stretches for 4, 655 miles, Sao Paulo and Rio de Janeiro are two of the largest cities in the world with rich culture and heritage as well as an establish infrastructure and modern amenities. Its position indicates that the weather can be categorized as being tropical and sub-tropical. The capital of Brazil is Brasilia. The official language in Brazil is Portuguese. (Brazil Geography Introduction (2011) www.brazil.org.za) Social Institutions Brazil has a structured social order that has been nurtured by its religious and family ties. The Brazilian population is comprised of 199, 321, 413 million people and of which, 73.6% of the population are Roman Catholic making it the dominant religion in Brazil. Brazilians perceive themselves as very religious but only attend mass for special occasions e.g. Easter, Christmas and then Lenten season. (CIA – The World Factbook Brazil (no date) Central Intelligence Agency) Families are large and typically grow even further with the inclusion of extended family. Family unity is paramount as consistent activities and bonding are used to strengthen these ties which combined with religion cultivates the culture of Brazil and shapes its beliefs, perception, attitudes, etc. Children typically live at home until they are married. To conduct business in Brazil, it is acceptable to kiss, bow or shake hands. Brazilians perceive themselves as Americans not South American and as a low-context culture forceful or 3 Final New Product Development Project abrupt attitudes are offensive and punctuality is not an important aspect for them. (Brazil-Social Institutions (no date) Tangient LLC) Education Brazil’s education system is divided into three different levels; fundamental, intermediate and tertiary (undergraduate and graduate are included in the tertiary level). Pre-school can be categorized under the fundamental level as it offers assistance to children under 7 years old. Children are required to attend school for a minimum of eight (8) years. Education for children between the ages of 7-14 years is compulsory at the fundamental level and is free. At the intermediate and tertiary levels, education is free but not compulsory. This encourages citizens to be well educated and learn skills to contribute to the workforce and encourage foreign investment in a skilled workforce Home schooling and private schools are also available in Brazil, however, with as education is compulsory at 6 years old in order to be allowed to be home schooled, there must be insufficient educational facilities and an application must be made by parents to the Ministry of Education and Ministry of Justice which is a lengthy process. Private schools typically follow the European model which focuses on the arts and humanities studies. Literacy rate throughout Brazil is 88%. (The School System – Brazil (no date) AngloINFO Limited) Political System Brazil is a federal republic with 26 states and a federal district; as such it uses a multiparty democratic political system to elect its President for four year terms, he/she can be reelected for another four year term. Each of the 26 states has its own governor and legislature. The political system is comprised of executive, legislative and judicial branches. (Doing Business and Investing in Brazil (January, 2010) Price Waterhouse Cooper) 4 Final New Product Development Project Religion and Aesthetics Brazil is known as the “Land of Contrasts” due to its size and diversity due to its division into five regions: North, North East, Central-West, Southeast, and South. An economic distinction is that citizens living in the North are poor and that region is underdeveloped in contrast the South is more industrialized and wealthier. (Culture of Brazil (no date) Advameg Inc) 73.6% of the population is Roman Catholic; however, there are unidentified citizens who are Catholic by tradition not by faith. Other religions are Protestant (15.4%), Spiritualist (1.3%), Bantu/Voodoo (0.3%), Other (Candoble, Umbanda, etc; 1.8%), Unspecified (0.2%) and no religion practiced (7.4%) . (CIA – The World Factbook Brazil (no date) Central Intelligence Agency) Living Conditions Housing in urban Brazil is similar to that of the United States, houses typically have two stories. Even though there has been major development throughout Brazil, housing supply and living conditions remain inadequate. In large cities, there are slums and in rural areas there isn’t an infrastructure for amenities such as piped water and electricity. In the mid 90’s there were nearly 35 million residences. (Brazil – Housing (no date) Encyclopedia of the Nations) Language Portuguese is the official and most spoken language in Brazil despite the misconception that Spanish is spoken there. It was discovered in 1500 by Pedro Alvares Cabrai. Brazil gained its independence from Portugal in 1822 and slavery was abolished in 1888. Spanish, English, French, Creole along with various dialects are spoken in Brazil. (Most spoken languages in Brazil (no date) UNESCO) 5 Final New Product Development Project References Lawrence Feick, Martin Roth, Stuart James (2000-2009) Country Manager: The International Marketing Simulation. Charlottesville, Virginia, USA. Interpretive Simulations.Retrieved from http://schools.interpretive.com/v0912/redir.php?p=~s_sbj5uoUW55SV_DOZLsa$8jOeC 8TjOV_sbjwZe81$5u5WDV6eqj&doccat=manuals&limit=1 Lonely Planet. (n.d.). Map of Brazil [Map]. Retrieved from http://www.lonelyplanet.com/maps/south-america/brazil/ Brazil Geography Introduction (2011) www.brazil.org.za. Retrieved from http://www.brazil.org.za/brazil-geography-into.html#.UMvLpXfNmSo CIA – The World Factbook Brazil (no date) Central Intelligence Agency. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/br.html Brazil-Social Institutions (no date) Tangient LLC. Retrieved from http://brazil123456.wikispaces.com/Social+Institutions The School System – Brazil (no date) AngloINFO Limited. Retrieved from http://brazil.angloinfo.com/family/schooling-education/school-system/ Doing Business and Investing in Brazil (January, 2010) Price Waterhouse Cooper. Retrieved from http://www.pwc.com.br/pt/publicacoes/assets/doing-business-10.pdf Culture of Brazil (no date) Advameg Inc. Retrieved from http://www.everyculture.com/BoCo/Brazil.html Brazil – Housing (no date) Encyclopedia of the Nations. http://www.nationsencyclopedia.com/Americas/Brazil-HOUSING.html 6 Retrieved from Final New Product Development Project Most spoken languages in Brazil (no date) UNESCO. Retrieved from http://www.mongabay.com/indigenous_ethnicities/languages/countries/Brazil.html Cateora, P. R., Gilly, M. C., & Graham, J. L. (2011). International Marketing (15th ed.). New York, NY: McGraw-Hill/Irwin. 7