International Marketing: Brazil Market Analysis and Evaluation Report

This report provides an analysis of the Brazilian market for international marketing purposes, focusing on the opportunities and challenges faced by Small and Medium Enterprises (SMEs) from the United Kingdom. The report begins with an introduction to international marketing, emphasizing the importance of market evaluation before expansion. It then presents a PESTLE analysis of Brazil, examining political, economic, social, and environmental factors. The political analysis discusses the country's stability and corruption levels, while the economic section highlights growth potential and labor costs. Social factors such as population diversity and consumer behavior are also considered. The report concludes by emphasizing the importance of understanding market dynamics and challenges for successful international marketing in Brazil. The report also provides references from various books and journals.

INTENATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background..................................................................................................................................3
COUNTRY EVALUATION...........................................................................................................4
REFERENCES................................................................................................................................7

INTRODUCTION
Background
International marketing is defined as process of application of different marketing
principles in order to satisfy the different needs as well as wants of different people which are
residing across the different national borders of the world (Kotler and et.al., 2018). In simple
terms international marketing is the process of carrying out the different marketing activities in
different nations of the world with a purpose of growth and expansion. It is also referred a global
marketing which includes the designing of marketing mix such as product, place, price,
promotion etc worldwide and also customising as per the needs and preference of international
customers. In order expand in the international markets, the major decision which a company has
to take is whether to expand internationally or not. Is a company capable enough to carry out the
marketing across international border and what are the strategies to be followed. Going
international can offer various opportunities for Small Business Enterprises (SMEs) of United
Kingdom like higher profitability, higher economies of scale, building a strong brand image,
gaining huge market share and other opportunities. But for SMEs to go international can be
challenging task and have to in to consideration various factors these factors can be both internal
and external. Also, there is a appropriate process to be followed by SMEs in order to go
international.
Appropriate strategies have to be made by the companies which should have the
characteristics of meeting the challenges of international markets in order to survive. SMEs need
to make a proper analysis in which a country a company wants to enter and there could be
various challenges and opportunities which a country offers to a company. These challenges
could be high competition with in the industry and the market a SMEs wants to operate. On the
other hand another challenge which could be faced by these companies can be legal restrains and
government controls which can result in the hindrances for a company to enter. Another major
challenge which may be faced by the companies can be changing trends and lifestyles of
customers to which a company would be unknown of. Also, one of the major challenge which
can pose challenges for SMEs is the environmental factors of the country which can even pose
restrictions for companies (Demangeot, Broderick and Craig, 2015). So, it is really important for
SMEs to mitigate these numerous challenges in the international markets in order to enter the
markets with fewer barriers. Brazil is developing country and provide various opportunities for

SMEs of UK to enter the markets, bur it very important before entering the market, properly
analyse the market effectively. Once the market is effectively analysed then a company can make
an effective strategy for entering the markets of Brazil. It is country with various opportunities
but will also offer various challenges for a company to enter in their markets.
COUNTRY EVALUATION
In order to evaluate the country properly PESTLE analysis can be SMEs in order to asses
the opportunities as well the treats of country posed to companies which wants to enter in the
markets of Brazil. Pestle analysis is a frame work which can help companies to analyse various
key factors of the country like political, social, economical, technological, environmental and
legal factors which can influence the organisation to make a proper decision. The detailed
analysis of Brazil can help a company to explore various factors which are affecting the country
at present which can help SMEs to take a decision of expansion in the country or not and will
assess the challenges and opportunities available for the company.
Political Factors: Brazil is considered the most powerful South American country and is also
considered as middle power which has got moderate influence on the international affairs. The
government of Brazil is stable and proactive which proves that there is no political instability
within the country (Racz and et.al., 2018). This can prove to be a good sign for SMEs to enter in
Brazil. If a country is politically stable it means that company has to face low entry barriers to
enter the markets of Brazil. But on the other hand, political stability of a country is something
which can not be predicted in the future. From the history of the country, which predicts that
things can change overnight for the country particularly during elections as political situation of
the country gets heated up which can be a matter of concern for SMEs. Another challenging
factor of Brazil which can pose threat for SMEs is corruption level of the country. While
entering the markets of the Brazil SMEs may have to offer bribe for minimising the entry level
barriers for the company which affect the image and financial stability of the company. As it has
been escalated to such an extent that starting a small business may require a huge amount of
payments to be made to government officials and representatives. So, this can be a challenging
factor for SMEs to enter the markets (de Oliveira Pascoal and et.al., 2019). Also, it has been
analysed that in transparency country ranks 72nd of total 180 countries of the world when it
comes to corruption in the country. If a company is able to minimise this challenge and on the

political stability of the country is in good condition at present, a company can make a smooth
entry in Brazilian markets but should be aware of the corruption level in the country.
Economic Factors: Brazil is a developing country so it has a high potential for growth which is
due to large population of the country and FDI inflow in the country. Within the country there
has been a substantial trend of middle class and gap between poor and rich is decreasing steadily
which is a good for the companies entering the markets of the country. Also, one of positive
aspect for the company is that Central Bank of Brazil have successfully mitigated the risk of
currency devaluation which has brought inflation with in the country under control. So, if
company successfully enters the markets, company can purchase the resources at cheaper rates
which is essential for the country for its profitability (Silinevicha and Kalinina, 2017). Another
positive sign for SMEs is that country's both foreign and domestic enterprises are being treated at
equal levels and also the labour costs of the country is considerably low. But the tax rates of the
country are considerably higher than its neighbouring countries viz. Ireland and Greece. The
corporate taxes is being set at 15 percent and also there is no such incentive for leaving the
profits within he country which can also prove challenging for SMEs. But on overall Brazil is
economically stable and is ranked the 9th largest economy in the world by its nominal GDP. It
has been analysed by many forecasts that economy of Brazil will increase in the 2019 and will
continue to grow for coming years. So, taking this factor in to consideration, the economic
condition of the country is very good which can offer SMEs of UK an opportunity to enter the
markets as it can be profitable for the company in coming years.
Social Factors: Brazil is the most diverse country in the world and has a population of more
than 208 million which is a huge number for a company to target and attract them. There is an
economic inequality within the population of approximately of 20 percent which lives below
poverty line in a country. Taking class distribution into consideration in the country there is a
considerable number of people which are wealthy which is a good sign for SMEs as these people
can easily afford the products and services of the company which can give rise profits of the
company (Gonzalez and et.al., 2019). On the other hand there is a huge segments of citizens in
the country which have minimal incomes which are people that can affect the profitability of
company. In Brazil, middle class people is growing rapidly but there is still some time for them
to get established. Citizens of Brazil are up to date with the changing trends and changing
lifestyles, and they are aware of big brands and are always influenced with quality products and

services. They are willing to buy expensive and luxurious products which is a good sign for
SMEs entering the country. If people are will to buy new and expensive products in the markets
can be positive factor for companies to enter the markets of Brazil.

REFERENCES
Books and Journal
de Oliveira Pascoal, J and et.al., 2019. Detection and molecular characterization of Mogiana tick
virus (MGTV) in Rhipicephalus microplus collected from cattle in a savannah area,
Uberlândia, Brazil. Ticks and tick-borne diseases. 10(1). pp.162-165.
Demangeot, C., Broderick, A. J. and Craig, C.S., 2015. Multicultural marketplaces: New
territory for international marketing and consumer research. International Marketing
Review. 32(2). pp.118-140.
Gonzalez, J. G and et.al., 2019. Trophic resource partitioning of two snook fish species
(Centropomidae) in tropical estuaries in Brazil as evidenced by stable isotope
analysis. Estuarine, Coastal and Shelf Science. 226. p.106287.
Kotler, P and et.al., 2018. Marketing management: an Asian perspective. Pearson.
Racz, L and et.al., 2018. Extensive comparison of biodiesel production alternatives with life
cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and
Environmental Policy. 20(9). pp.2013-2024.
Silinevicha, V. and Kalinina, K., 2017. THE DEVELOPMENT OF THE EVALUATION
SYSTEM OF FACTORS, INFLUENCING ON THE ORGANIZATION FOR THE
PREVENTION OF RISKS OF ITS ACTIVITY IN THE MARKET IN ANY FIELD
OF ACTIVITY, USING PEST--ANALYSIS. Professional Studies: Theory &
Practice/Profesines Studijos: Teorija ir Praktika. (18).