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HAVAIANAS

ASHLEY ANDREWS, KATE HEIMES, NICK


ARCHIBALD, LAUREN ANDREFSKY, AND DREW
ALBRECHT
EXECUTIVE SUMMARY
Havaianas is more than just an article of clothing to the Brazilian population, it has
become an essential part of everyday life. So much that the Ministry of Finance
included the sandals in the list of products fundamental to the life of Brazilians, in the
1980s. Even in economic downturn, Havaianas is just as prevalent as it ever which is
largely due to exports. Due to the economic dominance both regionally and globally,
Brazil provides a fruitful environment for brands to grow. Looking further into the
country of Brazil, economic and governmental issues have caused a fluctuation in trust
in the country by the Brazilian citizens. Brazil maintains an extremely high score in
terms of collectivism. This correlates with the the trust the citizens in one another as
well as the trust they have in the brands that surround them.
Havaianas attempts to resonate with the citizens of Brazil by reflecting the common
lifestyle that the people are accustomed to. The lifestyle includes a vibrant yet relaxed
attitude surrounding family, work and play. Brazilians have been known to have a thirst
for life which enables them to express emotion. This is communicated through the
eccentric imagery included in their advertising. Havaianas is an exceptional example of
this cultural imagery. The brands advertisements are a vibrant testament to the
common lifestyle lived by Brazilians. This leads into some of the noted opportunities
Havaianas preserves, such as using social media by specializing approaches in foreign
markets. Throughout this book, multiple examples will be shown of how Havaianas has
expanded globally, while staying true to their roots in Brazil.
BRAZIL'S OVERVIEW
HOFSTEDE'S MODELS
Power Distance: (Score- 69) Brazil finds great importance in respecting
hierarchy and accepts the idea of gaps between people in society.
Collectivism: (Score-62) People within this culture are generally integrated
into groups through extended relatives. This is important in business
because there is value in strong long term relationships in the workplace.
Masculinity: (Score-49) Almost exactly even, meaning there are elements of
both masculinity and femininity in this culture. There is an emphasis on
competition and success, along with appreciation for values and the quality
of life.
Uncertainty Avoidance: (Score-76) Along with most latin countries, there is
a strong need for rules and structure within society. They prefer structure
and rules in order to be able to enjoy themselves
Long term orientation: (Score-44) Brazil steers towards tradition and
routine. Yet, they are open to change and modernization.

HALL'S MODELS
High context communication: High context culture: Implicit, indirect
communication. The receiver holds the responsibility of making sure
the message is clear. Use of non-verbals is prevalent.
Demonstration and observation are key for learning
Polychronic time: Punctuality is not important, interruptions are
acceptable, and multi-tasking is prevalent. Well get there when we
get there mentality.
BRAZIL'S OVERVIEW

ECONOMIC SUMMARY
From 2003 to 2014 Brazil went through a tremendous economic resurgence,
with 29 million people lifted out of poverty. Recently however, there has
been a recession since 2015. The poverty and equality increases have
stagnated and only strong brands with a global presence like Havaianas
have weathered the recession due to exports.
Income levels of the poorest people in the population rose 7.1%
between 2003-2014
The population as a whole had increased income averages of
4.4%
Common exports are coffee, fruit, beans, cotton, and tobacco
Political crisis has influenced the recent economic downturn
Policy makers are not adjusting properly to the current
economic and political climate which is causing the confidence
of consumers and investors to whither
HAVAIANAS HISTORY

"Havaianas is as basic as
rice-and-beans every
day"
Of all of their great
Albeit a more collectivist
accomplishments one of
1964 was a big year. Havaianas culture now in 1996 Havaianas
their more recent is signing
parked vans outside of stores began to create custom flip
a contract with Disney in
and people were lining up all flops with all sorts of fun new
2011, which gives them the
over just to get their own pair of designs to capture the
rights to sell shoes with
Havaianas. It is said that almost individualism that the 90s
Disney characters on them,
every Brazilian worker had a brought.
a very valuable contract to
pair.
have for global business
1962 1980 2005

1964 1996 2011


Students protested
Havaianas was inspired in 2005 about the right to
Havaianas is as basic as
by the Japanese Ziori wear Havaianas to class.
rice-and-beans every
finger sandal, but instead Fridays are now
day. In the eighties, the
of straw it was replaced sometimes referred to as
Ministry of Finance
with rubber to make the Havaianas day, similar to
included the sandals in
shoe more sturdy and casual Friday.
the list of products
durable
fundamental to the life of
Brazilians
TARGET AUDIENCE
When Havaianas began, they targeted low to moderate income Brazilian individuals. This
is because these individuals represent the image that Havaianas strived for, simplicity,
relaxation and carefree lifestyle at a low price. As Havaianas expanded globally, they had
to expand demographically as well. They continued to direct their sales towards their
broad market of men, women and children of all ages. The most prominent shift in
demographics occurred with income.
Expanding from their domestic market in Brazil, Havaianas successfully adjusted their
marketing tactics from local to global, marketing to a much larger demographic.
There are different cultural characteristic that come with each of their markets in the 82
countries the sell indirectly and directly to.
Brazil is a country that has a high uncertainty avoidance as well as a high power distance.
This effects the way that they market domestically, appealing to both rich and poor
consumers. Since the uncertainty avoidance is high they do not really worry about losing
consumers to other brands, for they have been established for a long time. Other country
that possess different cultural dimensions will change the way that Havaianas approaches
their marketing and they will need to take into account the new audience if they want to
be successful globally.
INDUSTRY TRENDS
Brazil has gone through many ups and downs
within their economy. 2014: Brazil had the
third largest footwear industry in the world,
only behind China and India.
In 2016 footwear in Brazil had a decline of 6%
reaching BRL35.1 billion(currency), along with
a performance deceleration that aligned with
the bad economic slowdown. Since the
economy was slowing, Brazilians are keeping
their spending to more essential items.
2017: According to the Brazilian Shoe
Manufacturers Association (Abicalados), the
countrys footwear exports slowed down in
the first three months of the year.
COMPETITION
Brazilian Competitors:
Ipanema: Brazilian sandal brand owned
by parent company Grendene
Azaleia: Brazilian brand thats based in
Peru, Brazil and Colombia. This Brand is
geared towards wealthier individuals
Global Competitors:
Crocs: comfortable, durable athletic and
leisure shoes.
Sanuk : comfortable shoes associated
with surfing, yoga and the outdoors
Quiksilver: athletic surf and skate leisure
footwear geared towards a young
audience.
This perceptual mapping of Havaianas
global competition shows the descriptions
of where each brand resides.
STRENGTHS

S Domination in the field (specific shoe wear). Brazilian staple,


they have a way of life. These sandals are fundamental to
Brazilian lifestyle. Because of the versatility of the product,
Havaianas was successful when expanding to global markets.
WEAKNESSES
People located in climates that are naturally cold weather

W may only need flip flops for a period of time, they may not
justify purchasing an expensive pair of flipflops. Also the price
of flip flops is high and people might not justify spending on
them.
OPPORTUNITIES
Havaianas has been very successful but still has opportunity in

O the market. Such opportunities consist of campaigning using


the ongoing trend of social media, entering smaller, more
specialized markets or shops to maintain that 'personal brand'
feeling while balancing their demand in large retailers.
THREATS

T
Because of the increase in demand, Havaianas run the
threat of their demand outweighing their quality of
products. By increasing production significantly, they may
run the risk of loosing customers due to the loss of quality.
MEDIA USAGE
Havaianas has a very bold, vibrant approach for
their print ads. The flip flop company loads on the
color, use of graphic design, and incorporating--
almost hiding--their flip flops into these
magnificent displays.
While some of their social media channels slightly
differ in imagery, Havaianas seems to stick to two
encompassing themes. Summer and arrays of
color are the center of the Havaianas brand on
media channels.
MEDIA USAGE
Once again, Havaianas social media pages generally have the same
themes, although their Pinterest and Instagram pages part with a
more natural feel with their products shown in real-world settings
through scenic photography. The companys Pinterest page shares
a handful of articles that align with the brands interests, corporate
favorites, style and fashion trends, and Brazilian customs. The
company also shared an article featuring a list of celebrities who
wear their flip flops. Typically, Facebook and Twitter post using
product information.

Where are this site's


visitors located?
CONCLUSION
When asked what brand exemplifies Brazil, many Brazilians
say Havaianas. Havaianas is a brand that took charge as a
leader in not only footwear but as a national brand. Now,
years after it was created, it became an international brand.
The company stresses a carefree lifestyle that they
incorporate into their product. It has a wide variety of
product prices and quality to obtain business from the poor,
middle and upper classes. Since the company went global, it
understood the importance of adapting marketing strategies
to each country. Even through these different approaches,
they use bold visual techniques with summer arrays and loads
of colors. There is a strong loyalty to the brand that some
companies and school took as far as having Havaianas day on
Fridays. Havaianas has made itself a brand for the people,
which has spread globally.
APPENDIX
http://www.businesstoday.in/magazine/lbs-case-study/havaianas-case-
study/story/187012.html
https://www.coursehero.com/file/14357817/Havaianas-Consumer-Behaviordocx/
http://www.worldbank.org/en/country/brazil/overview
https://www.ft.com/content/230b83b0-1166-11e3-8321-00144feabdc0
https://qph.ec.quoracdn.net/main-qimg-c34e1bbebd30a853fe1a691ca2c756bd
http://www.nytimes.com/2003/03/25/business/sandal-from-brazil-is-new-fashion-
flavor.html
http://www.ipanema.uk.com/content/SitePages/About_Us
https://www.ft.com/content/230b83b0-1166-11e3-8321-00144feabdc0
http://thebrazilbusiness.com/article/the-flip-flop-market-in-brazil
http://www.euromonitor.com/footwear-in-brazil/report
https://www.worldfootwear.com/news/footwear-exports-slowdown-in-
brazil/2406.html
https://us.havaianas.com/blog/take-a-journey-through-the-history-of-havaianas/