market research th truemilk in brazil

MARKET RESEARCH TH TRUEMILK IN BRAZIL Subject: International Marketing Lecturer: Đỗ Thị Hải Ninh Group: Smiling Cows Members: Võ Tường Vy Tôn Võ Triệu Minh Nguyễn Hữu Phước Nguyễn Hoài Linh Đan Nguyễn Hoàng Phan Thanh Thanh Nguyễn Thị Quỳnh Trang TP Hồ Chí Minh, ngày 22 tháng năm 2021 OUTLINE TH True Milk Introduction Overview: 1.1 The corporation’s background: 1.2 TH true NUT: Brazilian overview: 2.1 Geography and climate: 2.2 Culture and society: 2.2.1 Population and Labor: 2.2.2 Brazilian culture: 2.3 Economy (GDP, GNP, inflation, gap between rich and poor) 2.4 Local infrastructure 2.5 Political situation and law environment (government law and policies) 10 Export and Import Policies and Regulations 11 3.1 Essential nut milk export licenses in Vietnam 11 3.2 Import regulations and import duties in Brazil 11 Consumer behavior 13 4.1 A shift from dairy products to dairy substitutes: 13 4.2 Brazilian consumer behaviors when purchasing dairy alternatives: 14 Competitor Analysis 17 5.1 TH True Milk’s competitors: 17 5.2 Competitor’s marketing strategy 17 5.3 Target consumer of Silk 19 5.4 Strength and weakness of Silk .19 REFERENCE 22 TH True Milk Introduction Overview: 1.1 The corporation’s background: The TH Milk Joint-Stock Company as part of TH Group which was founded by the financial advisor of North Asia Commercial Joint Stock Bank is a well-known brand in the dairy industry of Vietnam (Linh, n.d.) With the vision and investment that focus on applications of advanced technology - science and technology as well as integrated management, TH Group has launched a chain of retail stores named “TH True Mart”, which provide consumers with products that meet international standards from TH Farm, including fresh milk, nuts, healthy drinks, fresh vegetables, facilities and so on Founded in 2010, TH True Milk is one of the most well-known milk brands in Vietnam due to a revolution in fresh and clean milk, in particular, TH Group has carried out the project of raising dairy cows in concentrated barns and processing milk with the scale of 1.2 billion USD, 37,000 hectares of land, and 137,000 dairy cattle that are imported from the US and New Zealand Simultaneously, thanks to implementing international technologies into the closed-loop manufacturing process from grass to glass, TH True Milk's canned fresh milk products are not only delicious and nutritious, but they also support digestion, strengthen the immune system, enhance physical fitness, and develop mental-health for a healthy life every day Consequently, TH Milk owns more than 30% domestic market share for fresh milk in Vietnam Moreover, in 2014, TH Group earned a revenue of over four trillion dong, which is expected to reach six trillion dong in 2015 The Group targets 23 trillion dong in revenue by 2017, which will account for 50 percent of local consumption To date, TH true Milk products have been registered in more than 60 countries around the world (TRAN, n.d.) Following the success of the high-quality TH True Milk products, the TH Group shifted its focus to organic production with the introduction of TH true HERBAL, a herbal drink made from natural ingredients; TH true NUT, a new line of milk-based nut beverages; and TH true MALT, a malt drink made from barley fermentation (Viet Nam News, 2018) 1.2 TH true NUT: TH true NUT is the first nut milk product that includes nutritious nuts like macadamia, walnuts, oats, etc., which assist humans in preventing cardiovascular disease, cancer, and the aging process which assist humans in preventing cardiovascular disease, cancer, and the aging process This is also the pioneer drink in the world utilizing date palms to generate natural sweetness instead of refined sugar Therefore, this type of product can provide energy for people due to their high protein and lipid content without increasing blood pressure, especially is suitable for consumers who suffer from diabetes In addition, TH true NUT is also the first nut milk product in Vietnam combined with fresh milk, creating a balanced, healthy nutrition source and appropriate to all ages 2 Brazilian overview: 2.1 Geography and climate: - With total area is 8.5 million square kilometres, Brazil is the world’s fifth largest nation, which is located in the Southeast of South America, bounded by the Atlantic Ocean on the East and Brasilia is the capital (CIA, 2021) - The topography of Brazil is very diverse and complex Much of the territory in the north of Brazil is lowland covered by the Amazon forest The southern part of the country is mainly hills and low mountains The coastal area bordering the Atlantic Ocean has many high mountains Brazil is one of the countries with the largest number of river systems in the world The territory of Brazil is divided into five regions: North, Northeast, Midwest, Southeast and South and the climate varies from region to region but is mostly tropical (Trung tâm xúc tiến thương mại đầu từ Thành phố Hồ Chí Minh, 2019) The average annual temperature is rather high, about 25 degrees Celsius and in some regions the temperature can reach 40 degrees Celsius + The North region occupies 45.27% of Brazil's territory but it has the lowest population Many indigenous people live here This region has a low level of industrialization and development (except for Manaus, which has a duty-free industrial park) In addition, it has many lush tropical rainforests and a large number of Red Indians + One-third of Brazil's population whose majority is African descent lives in the Northeast This region has a diverse culture, influenced by Portuguese colonial, African and Red Indian cultures The Northeast has a warm climate all year round, the land is suitable for agricultural development But it is also the poorest region in Brazil + The Midwest is the second largest region in Brazil, but the population density is low, mainly indigenous people This region has a hot dry climate and has the capital of Brasilia and it is also the most important agricultural area in the country The largest cities in this region are Brasilia and Goiania + The Southeast is the most resource-rich and most populous region The two largest cities Rio de Janeiro and São Paulo, which are located on the shores of the Atlantic Ocean, are in this region The landscape is rather diverse with the main commercial center of the country - Sao Paulo, the historic city of Minas Gerais, and the famous Rio de Janeiro beach + The South is the wealthiest region in Brazil with the best standard of living and service quality are appreciated This is also the coldest region in the country There are many European immigrants, mainly Germans, Italians and Slavs who have come to Brazil long years ago The largest cities here are Curitiba and Porto Alegre 2.2 Culture and society: 2.2.1 Population and Labor: - In the middle of September 2021, Brazil's current population is 214,278,037 people with population density is 26 people/km2 and in sixth place in the world (Danso, 2021) Because of its large population, we can see that Brazil is a potential market for consumer products such as food and garment Therefore, TH True Nut has the ability to penetrate into Brazil to meet their food needs Table 1: “Race and ethnicity in Brazil” (Wikipedia, 2010) White 47.73% Pardo 43.13% Black 7.6% East Asian 1.1% Natives 0.4% Table 2: Brazilian Population 2016-2019 (Danso, 2021) Year Population % Population change Birth rate Urban residents % Urban residents 2019 211.049.527 0.75 1.76 184.407.548 87.4 2018 209.469.323 0.79 1.76 182.546.459 87.1 2017 207.833.823 0.81 1.76 180.633.872 86.9 2016 206.163.053 0.83 1.76 178.669.587 86.7 Brazil has a 0.87% annual rate of change in urbanization from 2020 to 2025 (CIA, 2021) With the rather stable population rate, the chance of entering the market is wider Table 3: Population in the largest cities of Brazil in 2018 (Wikipedia Bach khoa toan thu, 2018) São Paulo 21,314,716 Rio de Janeiro 12,389,775 Belo Horizonte 5,142,260 Recife 4,021,641 Brasilia 3,986,425 Porto Alegre 3,894,232 Salvador 3,863,154 Fortaleza 3,594,924 Curitiba 3,387,985 Goiania 2,347,557 - 87.4 percent of the population live in urban areas in 2019, so we should care about the customers here - Life expectancy of Brazilians in 2019 was 33.9 years old People at this age prioritize healthy diets, “green lifestyle”, therefore nut milk products meet their needs perfectly - The Brazilians are mainly concentrated along the coast and the inland population density is rather low This makes it difficult for investors to determine the location to build material facilities and distribution foundations But they can so in Sao Paulo and Rio de Janeiro because these cities are the largest and most populous ones of Brazil - Brazil has a workforce of more than 210 million people (6th of the worldwide) (Wikipedia, 2019) The recovery of the Brazilian labor market is mainly due to the increase in informal workers and semi-unemployment workers 2.2.2 Brazilian culture: a Religion: About two-thirds of the Brazilian people adhere to Roman Catholicism Much of the rest of the population is Protestant, including fundamentalist and Pentecostal groups Accordingly, the majority of Brazilians in the country identify as Roman Catholic (64.6%), thus reflecting its historical relationship with Portugal and the Catholic Church Of the remaining population, 22.2% identify with a Protestant tradition, including Seventh Day Adventist (6.5%), Assembly of God (2.0%), Christian Congregation of Brazil (1.2%), Universal Kingdom of God (1.0%) and other forms of Protestantism (11.5%) There is also a small number of people who identify with another form of Christianity (0.7%), ‘Spiritist’ (2.2%), other (1.4%), none, (8.0%) and unspecified (0.4%) (est 2010) - Catholicism in Brazil Catholicism was made the official religion of Brazil and was formally institutionalised into the country’s political and social system Whilst this formality has loosened greatly, Brazil has one of the largest Christian populations in the world Numerous significant events in Brazil revolve around the Catholic faith, such as Brazilian festivities hinging on events in the Catholic calendar, or relate to Christian saints Influences of the religion can also be seen throughout the country through Catholic iconography and buildings (Chara Scoope, n.d.) b/ Language: Portuguese is the first language of the vast majority of Brazilians, but numerous foreign words have expanded the national lexicon In fact, due to Brazil’s huge population, it’s made Portuguese one of the world’s major languages Brazilian Portuguese has even overtaken the Portuguese spoken in Portugal to become the standard version of the language worldwide Brazil is also home to more than a dozen indigenous languages, as well as a swathe of minority languages, ranging from Spanish, to Ukrainian, to Korean (The Editors of Encyclopaedia Britannica, 2021) English is compulsory in Brazilian schools and is becoming increasingly common Most younger Brazilians will have a good grasp of English - even if they aren’t entirely fluent In major cities, older Brazilians will also likely have some knowledge of English, as well as other languages like Italian and German Brazil is becoming increasingly bilingual, with English now having leapfrogged Spanish as the most learnt second language (Ronald Milton Schneider, 2021) 2.3 Economy (GDP, GNP, inflation, gap between rich and poor) - Brazil is a free economy country, mostly export-oriented Brazil’s economic sectors consist of agriculture, a variety of services, and industry In 2018, 75.8% of the country's GDP belongs to the trade and services sector, while 60% is the services sector and 13% is the trade sector This “tertiary sector” (services and trade) includes a lot of activities: financial service, accommodation, F&B, transportation, public administration, services for business, commerce, education, social and health service, sports, research, and development (Wikipedia, 2019) - In Latin America, Brazil’s national economy is the largest In the world, it is the ninth-largest economy and the eighth largest in “purchasing power parity (PPP)” (2018) (Wikipedia, 2019) - The GDP per capita of Brazil in 2019 ranked 78 th in the world (The Global Economy, 2019) And the GDP (PPP) per capita is 88th place of worldwide (14763.87 USD) (The Global Economy, 2019) Table 5: GDP (The World Bank, 2020b) and GDP growth of Brazil (The World Bank, 2020a) for the period 2016 – 2019 Year Current US$ (Trillion) GDP growth (%) 2019 1.878 1.411 2018 1.917 1.784 2017 2.064 1.323 2016 1.796 -3.276 Table 6: Brazil's GNP for the period 2016 – 2019 (Số liệu kinh tế, 2020) Year USD Change 2019 1.827.512.816.467 -36.130.922.853 % Change -1,94 2018 1.863.643.739.320 -161.286.722.137 -7,97 2017 2.024.930.461.457 267.326.798.724 15,21 2016 1.757.603.662.733 -10.698.575.597 -0,61 Table 7: Inflation (%) (consumer price) 2016 – 2020 (The World Bank, 2020b) 2020 3.212 2019 3.733 2018 3.665 2017 3.446 2016 8.739 Brazil's economy in 2017 continued to show many signs of prosperity, coming out of the crisis but was still rather slow However, the inflation rate is in the range of - 5% (2017 – 2020), which is stable, so the economy develops stably The government has more options to stimulate investment in domestic currency Besides, the unemployment rate fell and consumption increased Brazil is also a member of economic organizations such as G20, SACN, Mercosur and a trading partner of the EEC, the United States, and Asian countries, including Vietnam Even though Brazil is a big country with rich resources and a rather strong economy, it still has a gap between rich and poor There are still about 53 million people living below the poverty line and in poverty (Trung tâm xúc tiến thương mại đầu từ Thành phố Hồ Chí Minh, 2019) About 16 million Brazilians are officially considered illiterate This contributes to Brazil's economic inequality 2.4 Local infrastructure - Transportation: The Brazilian transportation sector can be segmented into cargo rail, passenger rail, logistics infrastructure, roads, ports, public transportation, urban mobility and smart transportation systems According to the World Bank’s 2018-2019 Logistics Performance Index, Brazil ranks 56th out of 160 countries in the quality of its infrastructure Trucks are the primary method of cargo transport, which makes logistics more expensive and contributes to the “Custo Brasil” concept that higher operational expenses are the cost of doing business in Brazil Logistics costs account for around 12% of Brazil’s GDP (5% more than in the U.S.), reflecting an inefficiency that results from poor transportation infrastructure (Country Commercial Guides, 2021) - Opportunities: GoB interagency worked to make projects more attractive to foreign investors and legislators passed needed reforms to improve the investment environment in Brazil For example, the “BR Mar” (“Ocean Highway”) project will bring an incentive package for cabotage aimed at opening the market to increase supply, foster competition, lower costs and create new routes - Water and Wastewater Subsector: The Internet of Things (IoT) is trending in Brazil’s water and wastewater market In 2018, Sabesp initiated a pilot project to test the IoT coverage in part of its networks, and given the positive results, in 2019, Sabesp contracted an IoT company to monitor water consumption Some utilities already use telemetry, GIS for digital mapping and public works monitoring, among other technologies The “New Pinheiros” is a river clean-up project in the city of Sao Paulo, which demands onsite sewage treatment solutions The river pollution is mostly due to sewage disposal Several areas of the city are informally occupied and are not accessible to the traditional wastewater collection network, creating a major pollution problem + Solid Waste Management: The Ministries of Environment and Energy regulated the sector and provided the necessary legal security to attract private investors There is an increased interest in waste-to-energy technologies in Brazil, as some sanitary landfills are reaching full capacity 2.5 Political situation and law environment (government law and policies) Brazil's politics are governed by a multi-party system and a federal presidential representative democratic republic, in which the President serves as both head of state and head of government The federal government, the 26 states and a federal district, and the municipalities make up Brazil's political and administrative structure Legal system: Brazil adopts a civil law system, based on the Roman-Germanic tradition Although custom and case law are part of the legal framework, written law prevails over them from an interpretive point of view Federal law provides that a judge can only resort to analogy, custom and general principles of law if the law is silent on a matter Parties to arbitration can freely choose the body of laws and norms to govern the resolution of a dispute, including general principles of international trade law The main domestic sources of law The Federal Constitution is the highest law and no other legal provision can contradict it Each state has its own constitution, and state and municipal laws cannot contradict their respective state constitutions Laws are divided into: − Supplementary laws, which are reserved for certain subject matters provided for in the Federal Constitution (see Question 4, Scrutiny) − Ordinary laws, which regulate all other matters (THOMSON REUTERS, 2021) Export and Import Policies and Regulations 3.1 Essential nut milk export licenses in Vietnam a Certificate of Free Sale Certificate of Free Sale (CFS) is a license issued by a competent state agency of the exporting country to traders who export the products or goods specified in the CFS in order to certify that such products or goods are manufactured and are allowed to be freely circulated in the export countries (C.A.O Media, 2021) CFS in Vietnam is managed and certified by the Ministry of Industry and Trade, based on Decision 10/2010/QD-TTg – Regulations on certificates of free circulation for exported and imported products and goods, particularly, types of nut milk are granted CFS when satisfying the following conditions: - Having requirements of export traders - Having announced applicable standards in accordance with current law Implementation period: 05 working days b Health certificate Health certificate (HC) is a certificate issued by the Food Administration under the Ministry of Health and introduced by Circular 52/2015/BYT, granted for nut milk products when organizations or individuals submit a request (C.A.O Media, 2021) Implementation period: 02 years from the date of issuance, if an enterprise would like to have a new license, it must prepare all documents that are the same as the first time, and can only be applied with product code in each import and export time 3.2 Import regulations and import duties in Brazil a Import regulations Involved Entities The involved entities are in charge of fiscalizing and supervising the import of dairy products into Brazil (Bruha, 2015) - The Ministry of Agriculture, Livestock and Supply, MAPA MAPA aims to prevent the entry and spread of pests that could be a threat to national agriculture, ensuring the health of products and the quality of imported and exported agricultural inputs The International Agricultural Surveillance System (Vigiagro), who are responsible for inspecting and supervising the international traffic of animals and plants, as well as their goods and by-products The National Health Surveillance Agency, ANVISA ANVISA works in order to make sure that imported products are compliant with Brazilian sanitary requirements Certification of Exporting Company When a country already exports such products to Brazil, it is still necessary for a foreign authority from the exporting country to confirm that the producer complies with Brazilian sanitary requirements and is able to export such products to Brazil This official statement should be sent in Portuguese to the embassy in the country of the exporting company in Brazil or directly to MAPA's Department of Sanitary and Phytosanitary Affairs of the Secretariat of International Relations (Bruha, 2015) Product Registration with MAPA When exporting edible animal products to Brazil, it is necessary that exporting companies register both the exported products and their labels with MAPA This registration is valid for 10 years, and the following documents must be presented in order to apply for registration (Bruha, 2015) Application form, downloadable here, preferably completed in Portuguese, although forms completed in Spanish are also accepted - Sketches of the products' labels that will be exposed to consumers in their original format and colors Import License Dairy products are subject to special import authorization by the Brazilian Government prior to loading abroad Thus, the importer needs to request an Import License from Siscomex The Import License will then be analysed by MAPA and ANVISA, which will either authorize or deny the request to import the products Both entities have up to 60 days to analyse whether to accept or to decline the request for the Import License Once the products arrive in Brazil, they must be destined to facilities within the jurisdiction of the Serviỗo de Inspeỗóo Federal, Portuguese for Federal Inspection Service, SIF, in order to be inspected It is only after being inspected by SIF that the products are awarded a sanitary certificate, issued by a DIPOA server DIPOA is the Department for Inspection of Animal Products, of the Secretary of Agricultural Defense, SDA (Bruha, 2015) Protecting intellectual property rights Brazil is a member of the World Intellectual Property Organization (WIPO) and has signed the Treaty of Paris, Bern and international copyright treaties for the protection of intellectual property rights (IPR) as well as the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) The National Institute of Industrial Property (INPI), which is the state agency responsible for industrial property rights and for examining patent claims and trademark registration A registered trademark is valid for 10 years and can be renewed for another 10 years (Nghiệp, n.d.) b Import Duties for Milk and cream Import duty (II): is a federally-mandated product-specific tax levied on a CIF (Cost, Insurance, and Freight) basis, applied for the entrance of foreign products in Brazil (SelectUSA, 2019) Tax over industrialized product (IPI): is a federal tax levied on most domestic and imported manufactured products It is assessed at the point of sale by the manufacturer, or processor in the case of domestically produced goods, and at the point of customs clearance in the case of imports (SelectUSA, 2019) Contribution to the Social Integration Program (PIS/PASEP) and Tax for Social Security Financing (COFINS) are both federal contributions levied on the entrance of foreign goods into Brazilian territory, in particular, PIS/PASEP is for Gross revenue, while COFINS is for Monthly invoicing (Mello, 2012) Source: Tax Treatment of Imports in Brazil for the different Dairy products tariff lines Produced by: Fact Sheet ELANBiz Dairy products in Brazil Consumer behavior 4.1 A shift from dairy products to dairy substitutes: Brazil is Latin America’s largest dairy market, with retail sales of $25 billion (Cargill, 2018) Milk accounts for 40% of those sales in 2017 and it is an indispensable part of Brazilians' diets (Cargill, 2018) However, due to the increase in lactose intolerance and milk allergy in both infants and adults, consumers are moving to plant-based beverages and dairy substitutes (Mordor Intelligence, 2020) This element is a key driver of demand for dairy substitutes in the South American market (Mordor Intelligence, 2020) In addition, Brazil is regarded as the world's sixth most significant market in the healthy food and beverage industry (USDA, 2020) The three primary trends influencing the Brazilian F&B market are sugar reduction, healthy food, and the increased protein and fiber content in food (Mordor Intelligence, 2020) According to Euromonitor International, the Brazilian market for this category of products is worth approximately US $26 billion (R$102 billion) in 2019, a growth of 8% over the previous year (USDA, 2020) Moreover, the chart below also indicates that the tendency to consume these items is rising This is allegedly due to an increase in the middle-class population and millennials, which leads to a change in purchasing habits (Mordor Intelligence, 2020) For those reasons, it can be deduced that the market potential for dairy alternatives is vast in Brazil 4.2 Brazilian consumer behaviors when purchasing dairy alternatives: To have a profound understanding of these changes in consumer attitudes, a survey of 1416 respondents, who have primary or shared responsibility for grocery shopping, was conducted in Latin America by Cargill, an American privately owned global food corporation (Cargill, 2018)) The more detailed demographic profile of interviewees is presented in the picture below (Source: Cargill Proprietary Research) According to Cargill’s research, more than half of dairy category buyers interviewed in Latin America consume both real dairy and dairy alternative products; however, roughly 60% of those consider real dairy more satisfying than dairy substitutes Nonetheless, it is also indicated that in all three nations, up to in 10 customers use dairy substitutes, either exclusively or in addition to real dairy (Cargill, 2018) (Source: Cargill Proprietary Research) It is reported that dairy purchasers here have tried a variety of dairy alternative items from diverse sources, but almond, coconut, and soy-based dairy alternatives are the most popular In addition, the survey mentioned the reasons that led to real dairy avoidance, with three major ones being lactose intolerance, a desire to reduce saturated fat, or limit sugar/carb consumption The extent of real dairy avoidance is highest in Brazil and lowest in Argentina Besides, Cargill noted that more than 60% of customers in Latin America feel that dairy alternatives are too expensive (Cargill, 2018) Therefore, marketers need to take it into consideration more carefully when setting prices for these products (Source: Cargill Proprietary Research) Besides common characteristics, Brazilian consumers have distinct traits in their shopping patterns In comparison to Mexico and Argentina, they are likely to be more receptive to dairy alternatives, and they scrutinize dairy product attributes, from nutritional value to label-friendly ingredients, before making a purchasing decision In a little more detail, the majority of respondents surveyed say that they examine dairy products for components as well as sugar, protein, and fat content This indicated that Brazilians frequently seek items with health benefits and determine whether or not the product is healthy by examining its nutritional value and ingredients (Source: Cargill Proprietary Research) Nevertheless, they not place as much emphasis on taste as the other two countries Although Brazilians have dairy expectations fairly similar to Mexican respondents, their perception and expectations of dairy alternative products are higher In particular, 71% of interviewees say that they expect dairy alternatives to provide the same experience as real dairy, and they also tend to state that they prefer the flavor of dairy substitutes, especially those made from coconut In general, the difference in taste preference between real dairy (59% top-two boxes) and dairy alternatives (41%) is not noticeable in Brazil (Cargill, 2018) 5 Competitor Analysis 5.1 TH True Milk’s competitors: In the Brazilian nut milk market, TH True Milk will have to compete with a large number of competitors including well-known brand names such as A Tal da Castanha – a leading Brazilian domestic nut milk brand, Ades – by the Coca-Cola company, Almond Breeze – by Blue Diamond, Nesfit - by Nestle, Alpro – by Danone, etc However, the competitor which is considered to be of greatest concern to TH True Milk is Silk (Source: Silk) “Silk is an American brand of dairy-substitute products (including soy milk, soy yogurt, almond milk, almond yogurt, cashew milk, coconut milk, oat milk, and other dairy-alternative products) currently owned by Danone after it purchased WhiteWave Foods in 2016.” (Wikipedia, 2021) In Brazil, Silk is the first line of branded products launched by Danone Silk’s nut milk products, which were initially available in São Paulo, Rio de Janeiro and Minas Gerais, have been an alternative to meet the growing demand for plant-based products (NOTÍCIAS, 2018) 5.2 Competitor’s marketing strategy Branding: Silk is branded as an all plant-based competitor They take pride in adding no artificial colors or flavors into their products (Cook, 2016) Positioning: To consumers, Silk is a non dairy product that is plant-based It is considered as a healthy choice because of its 100% natural ingredients Differentiation: Silk differentiates from their competitors by offering a wide variety of high – quality non-dairy and plant-based products Four P’s Product: - Core values: Because a balanced life depends on our little choices in everyday life, Silk, a 100% vegetable drink, launches nut milk products that go well with coffees, smoothies and whatever else your imagination can create With the aims of making healthy lifestyle lighter and more delicious, thus, bringing health through food to as many people as possible, Silk claims to use ingredients that are sourced responsibly to bring you food that’s dairy-free and delicious (Danone, 2021) - Product mix: Silk’s nut milk products in Brazil include: • • • • • • Original almonds milk Unsweetened original almonds milk Vanilla almonds milk Unsweetened vanilla almonds milk Almonds and cocoa milk Cashew nut milk (Silk, n.d.) - Product packaging: recyclable cartons -> eco-friendly - Product’s nutritional quality: Silk nut milk is: - Rich in vitamins and calcium • • • • Free of dairy, soy, lactose, gluten, casein, egg, and MSG Vegan - no ingredients of animal origin or tested on animals Ingredients used like cashew nut and cocoa are all national (Brazil’s ingredients) Non-GMO Project Verified In addition, a 200ml serving of the sugar-free vanilla drink contains just 22 calories Price: Silk’s pricing strategy which is one of the important strategies contributing to the success of its entire marketing strategy is Pricing for Market Penetration Prices will be set relatively lower than competitors with the aim of attracting buyers; then, will slowly increase to the average cost of other nut milk products in the Brazilian market Like other competitors, Silk is priced higher than the dairy and not-all plant-based products However, Silk is priced lower compared to other nut milk and plant – based drink brands Average price of Silk Unsweetened Original Almond Milk Litre is 14.99 R$ ≈ 64878 VND Place: Silk is not sold in small convenient stores and is also very rare to find in a drugstore Instead, it is easily found in supermarkets, grocery stores and online shopping websites like Silk.com.br and Amazon Promotion: Silk offers numerous discounts that help get their name out Also, you can get coupons for your next purchase when buying Silk nut milk More notably, there are a few TV ads about Silk products 5.3 Target consumer of Silk The non-dairy products of Silk are suitable for people who are vegetarians, lactose intolerant, allergic to cow’s milk, and more especially people with celiac diseases (which account for 3% of the population) (Valim, 2019) However, the trend of consuming milk alternatives has been recently rising among non-vegan consumers in Brazil, therefore Silk’s nut milk is suitable for people who are into milk in general 5.4 Strength and weakness of Silk Strength Product safety certification Silk’s dairy-substitutes are non-GMO Project Verified, which means they are 100% nontransgenic Moreover, they have also received the certification from Selo Vegano, who grants products as totally vegan, non-animal tested Hence, these products gain the trust of people who are pursuing healthy diets as well as animal lovers (Source: Silk) Environmental-friendly packaging According to Silk (n.d.), the composition of silk’s packages is 73% from recycled materials and they are 100% possibly transformed into notebooks, tiles, etc In addition, the packages are FSC (Forest Stewardship Council) approved, a certification granted to those who promote the responsible use of forests and the conservation of their resources Source: Silk Brazil (Instagram) Rich in nutrients Silk’s non-dairy products are not merely made of nuts, vegetables, and water, but also various nutrients such as calcium, vitamins, and zinc This source of nutrients makes Silk stand out from the rest of the plant-based milk market The mass production line of Danone Since Silk is owned by Danone, the products can be produced entirely by Danone Brazil, which has 4,500 employees and four factories located in Minas Gerais and São Paulo (Leuzinger, 2021) Besides, the ingredients originate from Brazil, especially almond sources This has reduced the production cost over the years Nonetheless, with the abundance of Danone’s distribution channels, Silk can be distributed to many marketplaces, such as in São Paulo, Rio de Janeiro, and Minas Gerais, meeting the increasing demand for plant-based products Weakness Less Flavour Although Silk’s milk ingredients are ample (almond, cashew, etc), the number of flavors pale in comparison with that of TH True Nut For the time being, while Silk only has flavors, TH True Nut has up to flavors, including gac fruit, red rice, and turmeric which are rarely available on Brazil market Higher price Irrespective of being produced domestically, Silk’s products are still considered high prices compared to other products on the market Therefore, the arrival of cheaper products would be a hardship for Silk REFERENCE Bruha, P (2015) How to Import Dairy Products to Brazil - The Brazil Business https://thebrazilbusiness.com/article/how-to-import-dairy-products-to-brazil C.A.O Media (2021) Tư vấn giấy phép xuất sữa hạt năm 2021 https://giayphepluuhanhtudocfs.com/giay-phep-xuat-khau-sua-hat/ Cargill (2018) The shifting global dairy market Ushering in a new era of dairy products https://www.cargill.com/doc/1432126152938/dairy-white-paper2018.pdf?fbclid=IwAR1A0z0uhh3OS7M8lm7v0oV2OUm20IzD0kfxW1DQ-MtfVEqMZKRGcECIPA Chara Scoope (n.d.) Brazilian Culture - Religion — Cultural Atlas Retrieved September 22, 2021, from https://culturalatlas.sbs.com.au/brazilian-culture/brazilian-culturereligion#brazilian-culture-religion CIA (2021, September 9) Brazil - The World Factbook https://www.cia.gov/the-worldfactbook/countries/brazil/ Cook, J (2016) Merged Marketing Plan https://www.slideshare.net/JacobCook14/mergedmarketing-plan Country Commercial Guides (2021, January 22) Brazil - Infrastructure https://www.trade.gov/country-commercial-guides/brazil-infrastructure Danone (2021) Silk yogurt and drinks - Danone https://www.danone.com/brands/dairy-plantbased-products/silk.html Danso (2021) Dân số Brazil (2021) - cập nhật ngày - DanSo.Org https://danso.org/brazil/ Leuzinger, B (2021) A Danone se tornou uma das maiores Empresas B planeta E quer usar o tamanho de sua cadeia de valor para fazer a diferenỗa 17 Junho https://www.projetodraft.com/a-danone-se-tornou-uma-das-maiores-empresa-b-do-planetae-quer-usar-o-tamanho-de-sua-cadeia-de-valor-para-fazer-ainda-mais-a-diferenca/ Linh, Z (n.d.) (DOC) International strategy of TH TRUE MILK | Zoey Linh - Academia.edu Retrieved September 18, 2021, from https://www.academia.edu/30389788/International_strategy_of_TH_TRUE_MILK Mello, J (2012) Tax on Products in Brazil - The Brazil Business https://thebrazilbusiness.com/article/tax-on-products-in-brazil Mordor Intelligence (2020) South America Dairy Alternative Products Market | 2021 - 26 | Industry Share, Size, Growth - Mordor Intelligence https://www.mordorintelligence.com/industry-reports/south-america-dairy-alternativesmarket NOTCIAS (2018) Silk: Danone lanỗa no Brasil bebida base vegetal que é sucesso nos Estados Unidos - ABIR https://abir.org.br/silk-danone-lanca-bebida-base-vegetal/ Ronald Milton Schneider (2021, September 20) Brazil - Language | Britannica https://www.britannica.com/place/Brazil/Language SelectUSA (2019) Brazil - Import Tariffs | SelectUSA.gov https://www.selectusa.gov/article?id=Brazil-Import-Tariffs Số liệu kinh tế (2020) GNP Brazil năm 2020 | Ước tính 2021 - Solieukinhte.com https://solieukinhte.com/gnp-cua-brazil/ The Editors of Encyclopaedia Britannica (2021, September 15) Brazil | History, Map, Culture, Population, & Facts | Britannica https://www.britannica.com/place/Brazil The Global Economy (2019) GDP per capita, PPP by country, around the world | TheGlobalEconomy.com https://www.theglobaleconomy.com/rankings/GDP_per_capita_PPP/ The World Bank (2020a) GDP growth (annual %) - Brazil | Data https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=BR The World Bank (2020b) Inflation, consumer prices (annual %) - Brazil | Data https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=BR THOMSON REUTERS (2021) Legal systems in Brazil: overview | Practical Law https://uk.practicallaw.thomsonreuters.com/7-6381325?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a2208 90 Trung tâm xúc tiến thương mại đầu từ Thành phố Hồ Chí Minh (2019) ITPC - Cổng thông tin điện tử Thương mại Đầu tư - THỊ TRƯỜNG BRAZIL - CẬP NHẬT NĂM 2019 Thông tin thị trường http://itpc.hochiminhcity.gov.vn/-/thi-truong-brazil-cap-nhat-nam2019?inheritRedirect=true USDA (2020) THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S GOVERNMENT POLICY Voluntary Report-Voluntary-Public Distribution Report Category: Exporter Guide www.bluediamondalmonds.com.br Valim, C E (2019) Sem carne, com lucro: a revoluỗóo vegana jỏ comeỗa a atrair empresas https://www.istoedinheiro.com.br/sem-carne-com-lucro/ Viet Nam News (2018) Vietnamese milk group tap Russian market - Brand-info - Vietnam News | Politics, Business, Economy, Society, Life, Sports - VietNam News https://vietnamnews.vn/brand-info/466403/vietnamese-milk-group-tap-russian-market.html Wikipedia (2010) Brazil - Wikipedia https://en.wikipedia.org/wiki/Brazil#Race_and_ethnicity Wikipedia (2021, January 12) Silk (brand) https://en.wikipedia.org/wiki/Silk_(brand) ... in the South American market (Mordor Intelligence, 2020) In addition, Brazil is regarded as the world's sixth most significant market in the healthy food and beverage industry (USDA, 2020) The... Accordingly, the majority of Brazilians in the country identify as Roman Catholic (64.6%), thus reflecting its historical relationship with Portugal and the Catholic Church Of the remaining population,... one of the largest Christian populations in the world Numerous significant events in Brazil revolve around the Catholic faith, such as Brazilian festivities hinging on events in the Catholic