Market Audit and Competitive Analysis
The market audit and competitive analysis, gave us a prospective of the baby food industry in Brazil. There will be many challenges ChuChu will face when first entering the market. The biggest problem will be obtaining market share from the two major brands in Brazil Nestle (Gerber) and Danone (Danito). These two companies have had years of experience in the market as well as a well known brand image in the market. For this reason, Chuchu is prepared to innovate in many ways to gain brand recognition. First, we are partnered with one of the largest and most well-known food companies in Brazil. We discovered that Brazilians like to educate themselves about nutritional items. For this reason, we will place educational kiosks in our retail store to inform parents about the advantages of buying organic baby foods. Not only we educate Brazilians about our product but we also gain brand awareness and reliability in the eyes of the customer. We will target the major cities first such as Rio de Janeiro, Sao Paulo, Salvador, and Brasilia because of they have an increase in population and they hold the majority of our target audience, which is middle-upper class. The benefits of targeting this major cities is the availability of near ports and highways that would facilitate the distribution process, by making the product to arrive faster to the desired location. Carrefour, Brasil, Pao de Acucar, Casas Senda, and Bom preco are the major retail stores we will distribute our products because they are the largest supermarket chains in the country. The distribution process will be facilitated by the help of the logistics system BRF uses for their products. We will use trucks near the regions we will be placing our products. We expect sales to be below industry average since we are a new brand trying to enter the market. However, if we are able to achieve these goals, ChuChu will be a major competitor to Nestle and Danone in the baby food industry.
ChuChu is a brand that it is going to be introduced to the Brazilian market in 2012. ChuChu, in Portuguese is a word that is an expression of endearment, meaning darling or dear. We picked this name since it is a representative word in Brazil and because the word “Chuchu” also can represent the sound of the train that normally infants imitate. In order to enter to the market, we are joining ventures with Brasil Foods or BRF. One of the largest food companies in Brazil, with many well known food brands in the country. We felt the needed to partner with a recognized company to enter into the baby food market in Brazil and we feel BRF is the perfect option. The following is an analysis of the industry that would help us recognized many factors we need to take into consideration in order to be profitable in the Brazilian market. . Product:
ChuChu is made with the best quality organic ingredients. All foods are tasty, natural and organic ingredients that suit a baby’s nutritional needs. We offer a range of organic fruit purees giving your baby a variety of natural tastes and flavors. Extracts of fruits such as banana and mango, apple and raspberry, apple cherry or banana, and pear and raspberry, among other combinations of flavors of pure fruits and vegetables will help the baby to expand their palate. We offer a range of flavors that would provide the baby with the necessary nutrients, depending on the age of the baby. Flavors and combinations such as organic tomato, beef risotto, organic banana, mango pudding, organic mango, wholegrain rice, among other combinations are offered to 7 months babies. The target market chosen to try our products is a middle-upper class from Brazil. Because of the disposable income from these social classes, we are trying to provide Brazilian parents with the necessary education about the benefits of organic baby food. ChuChu will enter the...