INTERNATIONAL

MARKETING

BRAZIL

BIG CINEMAS in

BRAZIL

Agenda• Introduction• Technology• Government• Economy• Culture• Demographics• Competitors• SWOT of Brazil - Media & Entertainment

• Big Cinema and Cinemark• Individual Entry

Brazil

•Covers half of South America

•The largest population in South America

•The 6th largest film market in the world •Personal income and leisure time drive demand for entertainment

Technology• Important for selling tickets

and measuring business performance

• Customers can buy and print tickets in advance or pick them up at the theatre, sometimes at self-service kiosks

• Point-of-sale systems

Government

• Federal republic with 26 states

• Indo-Brazil Trade Relation-

Have set a bilateral trade target of $10 billion by

2010

Brazil has emerged as India’s largest trading

partner in Latin America

Immense scope for increasing bilateral trade

Economy• One of the world's

largest economies• Most trades are with the

United States, Argentina, China, India and Germany

• Member of Mercosur• Inflation rate :5.84%• GDP growth:• Currency Rate:

Culture• Large numbers of

settlers from Portugal brought their culture to Brazil

• Brazil became• democratic• Social classes

developed between the poor, middle class, and wealthy

• Location:  Eastern South America bordering Argentina Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, Venezuela

• Capital:   Brazilia

• Climate:  Mostly tropical, but temperate in south

Demographics

Contd….

• Population:  184,101,109

• Ethnic Make-up: white (includes Portuguese, German, Italian, Spanish, Polish) 55%, mixed white and black 38%, black 6%, other (includes Japanese, Arab, Amerindian) 1%

• Religions:  Roman Catholic (nominal) 80%• Government:  federal republic• Language: Portuguese (official)

Contd.…

Competitors

• Major competitors are:-

Regal Entertainment AMC Entertainment Cinemark Carmike UCI

SWOT Analysisof

Brazil

Media & Entertainment

Strength • Potential market

• Well developed infrastructure

• Political stability

• Dynamic technology

• Media And Entertainment is one of the most booming sectors in Brazil due to its vast customer reach. The various segments of the Media and Entertainment industry like television and film industry have a large customer base

Contd….• The growing middle class with higher disposable income has

become the strength of the Media And Entertainment industry• Change in the lifestyle and spending patterns of the Brazilian

masses on entertainment• Technological innovations like online distribution channels,

web-stores, multi- and mega-plexes are complementing the ongoing revolution and the growth of the sector

• Indian film industry is second largest in the world and the largest in terms of the films produced and tickets sold

• The low cost of production and high revenues ensure a good return on investment for Indian Media And Entertainment industry

Weakness

•Language barrier

•Cultural differences

•People preferences •The Media And Entertainment sector in India is highly fragmented • Lack of cohesive production & distribution infrastructure, especially in the case of music industryThe lack of efforts for media penetration in lower socio-economic classes, where the media penetration is low

Opportunities•Removes technological gaps

•Provides foreign exchange

•Benefits to foreign participants

•The concept of crossover movies, such as Bend It Like Beckham has helped open up new doors to the crossover audience and offers immense potential for development

•The increasing interest of the global investors in the sector

•The media penetration is poor among the poorer sections of the society, offering opportunities for expansion in the area

Contd….• The nascent stage of the new distribution

channels offers an opportunity for development

• Rapid de-regulation in the Industry

• Rise in the viewership and the advertising expenditure

• Technological innovations like animations, multiplexes, etc and new distribution channels like mobiles and Internet have opened up the doors of new opportunities in the sector

Threats• Piracy, violation of intellectual property rights

pose a major treat to the Media And Entertainment companies

• Lack of quality content has emerged as a major concern because of the 'Quick- buck' route being followed in the industry

• With technological innovations taking place so rapidly, the media sector is facing considerable uncertainty about success in the marketplace

ADLABSINDIVIDUAL

ENTRY

Entry details

• Place: Sao Paulo / Rio De Janeiro

• Year of entry: 2012- keeping in mind FIFA World Cup

• Pricing:

• Screening: will be have 2 screening/day to understand the occupancy rate

• Will be showing world cup highlights after each movie, and when Brazil plays there will be full coverage of the game

Contd….

• Will join hands with a coffee company and it will be a main specialty in the multiplex as Brazil is the largest coffee shipping port in the world

Advantages

• Easiest and least expensive form of ownership to organize.

• Are in complete control, and within the parameters of the law, may make decisions as they see fit.

• All income generated by the business can be kept or reinvested.

• The business is easy to dissolve, if desired• Own identity• Independence in decision making

Disadvantages • Have unlimited liability and are legally responsible for

all debts against the business. Their business and personal assets are at risk

• May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans

• May have a hard time attracting high-caliber employees, or those that are motivated by the opportunity to own a part of the business

• Some employee benefits such as owner's medical insurance premiums are not directly deductible from business income (only partially deductible as an adjustment to income)

and

Cinemark

• A privet industry operating business in US

• Founded in 1984 by Lee Roy Mitchell and Paul Broadhead

• Based in Plano and Texas

• Theaters in several most populated countries

Advantages

• Brand name

• Established market

• Influence over distributors

• Customer loyalty

• Removes technological gaps

• Provides foreign exchange

• Benefits to foreign participants

Disadvantages

• Changes in government policies

• Conflicts between parties

• Unfair terms and conditions

• Lengthy procedure

• Delay in decision making

Come

to

Brazil !