Marketing and Local Market Structure

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Grupo Bimbo
1. How would you propose to address the challenges that Grupo Bimbo faces in Brasil. Please be specific about which actions to take and which problems would be solved by such actions. Control costs with a new distribution strategy adapted to the local market structure (as already initiated, deal directly with large retailers and use independent operators to supply small retailers). Improve revenue by offering new, different products, better suited to local taste. Make Brazil knowledgeable about the product before going into the market. Use sound market research, instead of blind guessing. Grupo didn’t seem to have done much research before taking their product into Brazil. They are much different than Mexico and if they would have seen that then in sure they would have done things differently. Brazil’s bread consumption is much lower than Mexico. Also Brazil consumes things like pound bread and cereal bars whereas Mexico prefers jelly filling. Also Grupo Bimbo went into the smaller markets but in Brazil 70% of the sales happen in hypermarkets. One last thing is that the brand name means nothing in Brazil. Language Barriers have affected the sale of this product.

2. How would you propose to address the challenges that Grupo Bimbo faces in the US. Please be specific about which actions to take and which problems would be solved by such actions. First I believe they need to rationalize their product portfolio to meet the customer demands in the US. Grupo Bimbo needs to target the needs of “lowcarb” diets and healthier breads. Technology improvements may help with freshness and dietary demands. Also they need to be able to show why there pricing is so high. If they show that their bread is fresh and healthy then they will be able to have a premium price. Bimbo just needs to do better research when entering into other countries. It seems as though they believe all markets are the same with bread. The US does have a similar consumption...
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