Colgate Palmolive Case Study Brazil

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Colgate Palmolive Case Study: Segmentation Strategy

March 21, 2011

Segmentation Variables
Geographically, Brazil is the largest country in South America and is the world’s fifth largest country in size and population. It is bound by the Atlantic Ocean and bordered by Venezuela, Guyana, Suriname, French Guiana, Columbia, Bolivia, Peru, Argentina, Paraguay, and Uruguay. There is a wide range of weather across the area but it is mostly tropical. There are five major climate subtypes including equatorial, tropical, semiarid, highland tropical, temperate, and subtropical. These varieties produce different environments and biodiversity.

From a psychographics perspective, Brazil has a strong Portuguese culture in their language, religion and style. Roman Catholicism is the predominant faith with Pentecostal Protestantism gaining more followers. They weigh in on five fundamental principles of sovereignty, citizenship, human dignity, social values of labor, freedom of enterprise and political pluralism. (Fernandez, 2005)

The demographics of the Brazilian people are rich. Brazil’s population is approximately 190 million with the two predominant colors white and brown, or multiracial. This composes over ninety-two percent of inhabitants. Most Brazilians have descended from Portuguese settlers and African slaves. The population growth rate remains steady at 2.9% and the average life expectancy is 72.6 years. The illiteracy rate in 2008 was 11.5%. Brazil is a leader politically and economically in Latin America and they have the largest national economy as well holding the world’s eighth largest currency at market exchange rates and the seventh largest in purchasing power parity. They are a free market economy with abundant natural resources. The economy is diverse with agriculture, industry and service equally providing strength.

Behaviorally, Brazilians are committed to research and technology and devote more than 73% of funding from government sources. They are expansionist minded and urbanized. A true melting pot, this variety is seen in literature and cuisine and they are open to new ideas and services that have proven value. The most popular sport in Brazil is soccer and the national team is ranked among the best in the world. They are passionate and aggressive and have an enormous national pride. In May 2010, the former president of Brazil launched a broadcast to present Brazil to the world. (News, 2010) Consumer Market

The current cultural of Brazil is born from Portuguese culture establishing Brazilians with a long link to history, architectural structures, art, furniture and literary works. Events and cultural landmarks testifying to a ‘rich national cultural heritage’ chronicle the fabric of their lives. (Bolos) Brazil’s size and diversity make it one of the nations most deserving of the name “land of contrasts”. (Brazil, 2010) Brazil is divided into five regions: the north, northeast, central-west, southeast, and south. These are administrative divisions and correspond to geographic, demographic, economic, and cultural divisions as well. The northeast has the highest density of African descent, while European and Japanese descendants are in the south and southeast. Indigenous Brazilians reside in the north can central-west. With all this segmentation, the racial intermingling makes Brazil one of the most racially diverse countries in the world. The social classes are distinct between the poor, underdeveloped northern divisions and the more industrialized, affluent south. This is so distinct that these areas are referred to as the “two Brazils or Belindia, with the wealthy south being compared to Belgium and the poor North to India” (Brazil, 2010)

A ‘consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and status’. (Keller, 2009) The inhabitants of Rio de Janeiro and Sao Paulo consider themselves urban sophisticates. They...
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