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Segmentation Analysis of Brazil

Kelly Rogan
Towson University





























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Customer Segments in Brazil
Brazil is a country that contains a lot of potential for growth and in fact Brazil's
economy has been increasing steadily since 2003 according to The World Fact book
(2013). This growth in the economy as well as the low-moderate financial system,
political, and economic risk are the main reasons why Brazil was the chosen country to
expand Flying Dog Brewery. Within the country the main consumer segments focused on
will be college students, young professionals, as well as mature professionals.

College Student Segment
College students are a very unique and challenging consumer segment but with
the right marketing mix they can bring a lot of profit to the company. They consist of
young people ages eighteen to twenty four and they are enrolled in a University studying
a degree. According to Brazilian Institute of Geography and Statistics (2009), The
number of enrolled college students has doubled in the last 10 years from 6.9% to
13.9%. The number of college students are growing in many countries including Brazil
which shows that this consumer segment will represent many potential customers and
will generate a large amount of profit for Flying dog Brewery. As stated by DSouza
(2009), This demographic loves to spend on discretionary items and they purchase way
beyond their years. Their basic needs are met by their parents (to an extent) so these kids
have tons of $$ to spend. These discretionary items consist of technology and mobile
devices such as iphones, clothing with brand names, traveling etc. When it comes to food
and drinks college students prefer quantity to quality and have been known to buy
products, such as beer, in bulk and at a low cost. In a survey of Brazil citizens aged 18-
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24 the amount of people who drink alcohol is 73.2% according to Galdurozl and
Caetanoll (2004). This high percentage of drinkers creates a valuable market for Flying
Dog Brewery. The student drinkers normally drink at least a few days a week including
weekends. They attend school and may have other part time jobs but they typically
maintain a lot of free time where they are social and go out for food and drinks. They are
a generation which uses social media as if it were their third arm and stay connected
through their mobile devices at all times.

Young Professional Segment
The next consumer segment of young professionals is normally characterized as
highly entrepreneurial, civic-minded people between the ages of twenty-one and forty
with a college degree (Young Professionals- Metro EDGE). This segment, although age
wise close to the college student segment, approaches purchases in a very different way.
They have much more income but at the same time more bills and daily expenses
therefore are more likely to focus more on quality than quantity. They do not have
children yet and can focus on themselves and paying for higher quality items is a priority.
They have stable jobs with a continual income and do not go out as much as the college
student segment but still enjoys social drinks after work or on the weekends. Just as
college students, the young professionals are also very active on social networks and put
a large importance on staying connected through mobile devices. They have more
routines and habits then the college students and getting this segment to switch to our
beer for their normal choice will be harder than the college student segment.

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Mature Professionals
The mature professionals are working men and woman aged forty-five to sixty.
They may still have children to pay for but they are making enough money to have
discretionary income, which they use for hobbies and traveling. They live in relative
financial comfort, and have the time and will to spend their money (King, 2004). This
market weighs their options for purchasing items and buys things of high quality and
value for themselves. They are the least involved with social networks and technology
between the three consumer segments. They are preparing for retirement since according
to The Economist (2012), Most Brazilians retire startlingly early: at 54 on average for a
man in the private sector, and just 52 for a woman. Since people within this segment are
retiring they have a lot more free time and will attend events as well as drink socially.

Marketing to each Segment
Specifying the marketing mix to each customer segment is crucial to the success of the
integration of Flying Dog Brewery in Brazil. Marketing to college students must match
their preferences as well as drinking and purchasing habits while remaining aware of the
cultural differences. For example, college students are social drinkers and attend many
events such as football games but according to BBC News (2012), Beer sales have been
illegal at football matches in Brazil since 2003. The company will sell outside the
stadiums as well as advertise on phone applications and other social networks to get the
word out to the college students. A competitor for the college student segment will be
Skol which makes advertisements aimed for college boys with attractive girls holding the
beers. Flying dog brewery will price the beers aimed for students at a low price and
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advertising the low price to gain a competitive advantage. Flying Dog Brewery will
essentially create three different lines of beers for the three different market segments.
The college students will have a beer specified to their budget restraints but with a taste
still acceptable and suited to their younger palettes. The young professionals will
continue having the line of beer with very hip names put into Portuguese like the double
dog or snake dog type of beer which will help bring attention to our brand over others
like Bamberg Rauchbier, who according to the Beer Advocate (2009) have a rating of
good and a lower price. The best place to show the advertisements for young
professionals is on social network sites and promoting a coupon inside the beer stores,
which gets the segment to try to beer and spread the word. The marketing strategy for the
mature professionals will be to run advertisements showing the high quality and distinct
taste of the beer. The price will be set the highest and will attract the older professionals
who have the money to spend on a very high quality beer. A clear competitor for the
mature professionals will be Wls Quadruppel since it was rated outstanding by the Beer
Advocate (2009). Flying Dog brewery will remain competitive by running large
advertisements for each of the three types of beers for college students showing the low
prices, the young professionals hip names of beers, and mature professionals high quality
of brews. The locations of these advertisements for college students will be in events and
stadiums, young professionals on the television and in local hip bars, and mature
professionals during the commercials of popular shows and news segments. With the
right price and marketing as described Flying Dog Brewery will succeed with the
expansion into Brazil.

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References

BBC News - Brazil World Cup beer law signed by President Rousseff. (2012, June 6).
Retrieved from http://www.bbc.com/news/world-latin-america-18348012

D'Souza, L. (2009, September 22). The dynamics of the College Student Market |
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Marketing Bones. Retrieved March 28, 2014, from http://marketingbones.com/the-
dynamics-of-the-college-student-market/

Galdurozl, J., & Caetanoll, R. (n.d.). SciELO - Scientific Electronic Library
Online. SciELO - Scientific Electronic Library Online. Retrieved March 26, 2014, from
http://www.scielo.br/scielo.php?pid=S1516-
44462004000500002&script=sci_arttext&tlng=en

King, E. (2004, September 6). Targeting Seniors | Marketing to Older People | Changing
Consumer Populations | brandchannel.com. Retrieved from
http://www.brandchannel.com/features_effect.asp?pf_id=228

Oliviera, N. (2009, October 12). BrazzilMag. Number of College Students Doubles in
Brazil, But It's Still Only 14%. Retrieved March 26, 2014, from
http://brazzilmag.com/news/77/11300-number-of-college-students-doubles-in-brazil-but-
its-still-only-14-.html

"Tick, tock." The Economist. The Economist Newspaper, 24 Mar. 2012. Web. 30 Mar.
2014. <http://www.economist.com/node/21551093>.

The World Fact Book. (n.d.). Central Intelligence Agency. Retrieved March 2, 2014,
from https://www.cia.gov/library/publications/the-world-factbook/geos/co.html

"Wls Quadruppel - Cervejaria Wls." BeerAdvocate. N.p., n.d. Web. 30 Mar. 2014.
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<http://www.beeradvocate.com/beer/profile/18899/54512/>.

Young Professionals - Metro EDGE. (n.d.). Retrieved March 27, 2014, from
http://metro-edge.org/about-us/young-professionals/