online marketing psychology

June 7, 2010

The Power of Being Local

Time for some more stories from the land of soccer and samba. The size of the Brazilian market attracts a lot foreign companies. And one of the difficulties they face is the competition with local brands.

Brazilian colors yellow green celebrations

Local brands

Although there are many strong Brazilian brands on the global level,  an article in Mundo marketing (PT) shows that there are regional brands that should not be underestimated.
  • Maçã Don: an apple soft-drink.  Market? In some cities of  the interior of the São Paulo state, it is the highest selling soft drink after Coca-Cola.
  • Vitarella: pasta and biscuits.  Market? Market leader North-East of Brazil.
Where in a previous post I described the adaptation from a global brand to the local market, these regional brands take the opposite way.

First of all they are closer to the customer, which means that they have more knowledge on what is wanted.

Their distribution also follows a different approach. By focusing on small neighborhood stores, they try to be where consumers are. The possibility of expansion to bigger supermarket chains is for later, when they have more control over their network.

Finally their size gives them cost advantages that allow them to deliver a quality product for a lower price than national brands.

Brand loyalty

The loyalty these type of brands have has a couple of different sources.

Generating employment and being a strong local company make people feel proud of their region and by extension the brand associated with it.

For many consumers these brands have been around their whole life. They might have even seen their grandparents use it. This nostalgia factor is a very powerful asset for these brands, as it is impossible for new entrants to copy this.

Global brands

Global brands try to get closer to the customer by event sponsorships, and by tapping into the local culture.

Events like the World Cup football provide an excellent opportunity. Many houses, supermarkets, schools,... are now decorated in yellow and green to show support for the national team. Marketeers can tap into these elements and join the fans in their celebrations.

As said before the World Cup is one of the biggest events for marketing in 2010 so as it unfolds there will be no doubt more coverage!

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