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Customer Segments
Successfully moving Flying Dog Brewery to Brazil will involve adapting the
product, place, price and promotion to fit within the cultural standards and norms in each
customer segment. The customer segments mainly focused on will be college students,
young professionals as well as mature professionals. Each segment requires a different
marketing mix to ensure an easy transition to the Brazilian market.

Place
The mode of entry into the Brazilian market will be licensing. The risks involved
with licensing are minimal and include having a lower income as well as a loss of
control, which could result in a damaged reputation for the brand. Flying Dog Brewery
will address these risks by maintaining constant communication as well as monthly visits
to start operations and ensure that the brewing processes are the same as in the United
States as to contain the brands quality while brewing locally in Brazil. The advantages of
licensing, and the reasons for choosing the mode of entry, include being able to quickly
expand without a large amount of capital investment, avoiding trade restrictions,
lowering the prices and political risk due to domestically brewing, and maintaining the
brand image. In the distribution we will use a pull strategy in the stores and bars where
we sell the beers, producing and delivering more beer as the demand increases. This will
require a lot of communication with the stores, which puts emphasis on the importance of
adapting to their POS systems to help the supply chain management run smoothly. The
outlets for the college student segment beer will be many bars and restaurants, which
have low-medium prices as well in many local stores near the Universities and student
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housing. The product for the young professionals will be sold at trendy bars as well as
stores located in the up and coming areas of the cities. The beer marketed for the mature
professionals will be distributed in well-known and high-end restaurants and sold in areas
of the cities known for the older population.

College student
Product
The beer marketed to the college student market will have a product suited to their
personal likes and styles. The product will contain the brand name as well as the bat logo
in large font on the beer bottles/cans and packaging in order to gain recognition. The
color scheme will be mainly reds as well as bright colors, which according to Maroto and
Bartoli, represents visibility and vibrancy in Brazil. The packaging and bottles will have a
more standard and simple look to represent its uniformity and classic beer taste. We will
also only sell this type of beer on tap in the bars since it is a simple and standard light
beer while the beers for the young and mature professionals will be full of different
flavors and sold in bottles only. The product will be sold in large quantities with the
choice of 6 packs, 12 packs, and 24 packs in cans through the beer stores. This will show
the college student segment that this type of beer is perfect for bringing to parties or
stocking up the house at a lower cost, which brings us to the price section of the
marketing mix.

Price
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The price of the product is the most important factor of the marketing mix for the
college student segment. Especially since according to Galvao (2014), Since May 2012,
the beverage industry in Brazil has raised beer prices 23 percent and soda prices 19
percent, and the tax increases are meant to reflect the current level of prices charged by
companies. The price will be set a bit lower than the beer price averages as stated by
Price of Travel ($2.25- $3.15) at around $2.00 for a beer in bars. Flying Dog Brewery
will be able to compete with competitors such as the Brahma beer by producing
domestically to keep prices low and insuring the taste remains consistent.

Promotion
The promotion of Flying Dog Brewery to college students will be critical to
ensure the other customer segments do not feel left out when viewing their
advertisements. To avoid this we will promote the beer for the college segment by
focusing mainly on the price and not on age. The young and mature professionals will see
these advertisements and instead of feeling left out they will simply prefer the beers
positioned for their segments that are darker beers with more choices at a slightly higher
price. An incentive for the college students to purchase our beer directly after entry into
the market will be to give out coupons such as $2.00 off the 24 pack in Universities to
promote the beer and gain attention to the low price and good taste. We will also use
social networks such as Facebook, twitter and instagram to put updates as well as
coupons, which help to promote sporting or evening events near the Universities where
the beer will be sold. The posts on social networks will attract this segment specifically
since the events are specialized for students. This segment is the most involved on social
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networks and therefore the most likely to see and respond to the coupons posted as well
as updates for events.

Young Professionals
Product
The young professionals product will essentially be an extension of the existing
line of beers in the United States but adapted to the language and cultural norms of
Brazil. The labels of the beers will be translated into Portuguese and put into bright colors
to draw attention to their unique names. The background colors of the bottles will mainly
consist of the color black since Maroto and Bartoli mention it is a symbol of
sophistication for Brazilians. The packaging will be in six pack bottles as well as 12 pack
bottles and will advertise their different flavors. The product will attract this customer
segments younger style while giving them a unique taste and affordable price.

Price
The prices for the young professionals will not be as high as the mature professionals or
as low as the student segment. According to Price of Travel, the average price of a beer is
between $2.25 and $3.15, we will market these beers are the high end of the range around
$2.50 in bars. This way the beer will be priced in the middle of the competition and gain
customers attention due to the trendy names and many different flavors for everyones
taste.

Promotion
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The promotion of the product for young professionals will be a push strategy with
advertisements posted in the young and hip areas of the cities. In addition to these
advertisements we will promote the beers in trendy bars with tasting events as well as
free giveaways in popular bar nights to help gain recognition by the segment. To get the
segment into the events will we post updates for the events on social networks
emphasizing the special flavors as well as the trendy bars, which will hold the events. We
will also contact local companies to give out flyers with coupons to try the beer, which
will bring in the workers for drinks after work. Word of mouth will also help Flying Dog
Brewery gain entry into the segment after the initial events as well as maintaining the
social network advertisements.

Mature Professionals

Product
The product marketed to the mature professionals will try to match their sophistication as
stated by Maroto and Baroli by using black and grey color schemes while still gaining
visibility by adding red as the color of the bat logo. The packaging will describe all the
flavors of the beers and will be sold in six packs, but leaving the customer to decide
which six beers they want. This ability to design your own six-pack will excite the
customers with something different and push them to choose our brand.

Price
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The price of the mature professional product will be a bit higher than the average at
around $3.25, which is one reason that this customer segment is most likely to be
attracted to this beer than the other segments that put a bigger emphasis on the
importance of price. The beer will be sold in six packs with the option of interchanging
the beers, which results in a bit higher price. The interchangeable six-pack beers will also
have the option of being sold individually in the stores as well as high-end bars and
restaurants.

Promotion
The promotion of this beer will be the most difficult since this customer segment is the
least involved with social networks. We will promote this beer to the mature professional
segment by putting commercials and advertisements into places they are most likely to
see such as online news sites as well as the newspapers such as UOL which was stated as
the main content portal in Brazil since its opening in 1996. Another popular place to
promote the beer is in upscale bars and restaurants, offering customers one free small
glass of the beer to try before they make their decision on what beer to drink. We will
give these bars and restaurants one keg of our most popular beer to put on tap and give
for free at the beginning of the entry into the market. The customers will be enticed by
the free trial and then motivated to buy another that day as well as other days once they
taste the quality.



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References

Fitzgerald, T. (n.d.). A Gringo in Buenos Aires. Palermo Soho. Retrieved May 2, 2014,
from http://www.gringoinbuenosaires.com/neighborhood-guides/palermo/palermo-soho/

Galvao, A. (2014, April 30). Brazil to Boost Beer Taxes to Address Fiscal Accounts
(Correct). Bloomberg Business Week. Retrieved May 1, 2014, from
http://www.businessweek.com/news/2014-04-29/brazil-to-boost-cold-beverage-taxes-to-
address-fiscal-accounts

Maroto, J., & Bartoli, M. D. (n.d.). Global Propaganda . Colors Across Cultures .
Retrieved May 1, 2014, from
http://globalpropaganda.com/articles/TranslatingColours.pdf

UOL - O melhor contedo da Internet. (n.d.). UOL - O melhor contedo da Internet.
Retrieved May 4, 2014, from http://sobreuol.noticias.uol.com.br/index_en.jhtm

Rio de Janeiro prices - food prices, beer prices, hotel prices, attraction prices - Price of
Travel. (n.d.). Rio de Janeiro prices - food prices, beer prices, hotel prices, attraction
prices - Price of Travel. Retrieved May 2, 2014, from
http://www.priceoftravel.com/28/brazil/rio-de-janeiro-prices