Marketing Plan

Anna Standley
Dea Dobek
Nancy Magginis
Kaitlin Trinkle
 Product to Export
Seventh Generation, Inc is
a company that sells
cleaning, paper, and
personal care products. The
company was founded in
1988 by Jeffery Hollender in QuickTime™ and a

Burlington, Vermont. decompressor

are needed to see this picture.

The main focus of the

company is sustainability
and the conservation of
natural resources.
Seventh Generation uses
recycled and biodegradable
ingredients in it’s products.

Seventh Generation Official Website (http://www.seventhgeneration.com/)

Global Imperatives
Restore the Environment
Restore is the next reduce, reuse, recycle. We are working to ensure that our products have a
circular lifecycle, meaning natural resources are being used and renewed at a rate that is
always below their rate of depletion.
Inspire Conscious Consumption
Our focus is to inspire thoughtful consideration of each purchase—from the immediate impact of the
products you buy (Is it safe? Is it gentle on the earth? Does it work?), to the broader impact
throughout their lifecycle.
Create a Just and Equitable World
We’re committed to making sure that everyone our company interacts with—from the farmers who
grow our lavender to the customers who use our products—are treated fairly and with respect.

Operating Principles
Systems Thinking
As suggested by The Great Law of the Iroquois, we strive to act with the knowledge that our
business belongs to a larger system in which everything is interconnected, and that everything
we do affects everything else.
Radical Transparency
We believe that the best way to ensure that we live up to our aspirations is to be completely
transparent about our business and product practices. You should expect to see all of our
values and principles in everything we make, say, and do. It’s really that simple.
Influence Beyond Our Size
We are determined to inspire others through innovation, education, and interaction. We proudly
donate 10% of our profits to support organizations that work for positive change.

Seventh Generation Official Website (http://www.seventhgeneration.com/)

 Product to Export
“Seventh Generation” comes from the
Great Law of the Iroquois...

“In our every deliberation, we must consider

the impact of our decisions on the next
seven generations.”

Seventh Generation Official Website (http://www.seventhgeneration.com/)

 Product to Export
Positioned:

The launch of "Protect Planet Home," is the brand’s first national

ad campaign. The commercial has an emphasis on a chemical-free
world where "the five-second rule is extended" and "where no one
holds their breath while they’re cleaning." The campaign is part of
the company’s mission to raise awareness of environmentally
responsible products. With the market for green cleaning products
growing and even influencing larger competitors the company is
looking to improve their marketing with new product innovation and
brand awareness.

Fast Company: Proftis with Purpose: Seventh Generation

(http://fastcompany.com/social/2008/profiles/seventh-generation.html)
Product to ExportPromotion
Methods:

QuickTime™ and a
decompressor
are needed to see this picture.

Seventh Generation Official Website (http://www.seventhgeneration.com/)

Product to Export
Harmonized Tariff Schedule of the
United States (2010)
Chapter 34
Subheading 3401: Soap; organic-
active products and preparations
for use as soap.

Harmonized Tariff Schedue (http://www.hts.usitc.gov/)

The Country of Brazil
• Location: Eastern South America, borders the
Atlantic Ocean
• Largest country in South America and shares
common borders with almost every South
American country (not Ecuador and Chile)
• Environmental issues:
-illegal wildlife trade
-air and water pollution in many large cities
-deforestation in Amazon
-severe oil spills
-land degradation & water pollution
•Southern region is richer and more developed
than northern region
 Demographics
Population:198.7 million
Composed of 66.8% ages 15-64
The median age is 28.6
Its population is expected to rise to 220 million by 2020
Vast consumer market, being the second most populous country
in the Western Hemisphere (after the US)
Majority of population resides in large cities, mainly in the
southern and southeastern regions
Main language: Portuguese, spoken by almost all of the
population. German is its second language
exceptions are immigrants and some Amerindian groups
Nationality: 53.7% white, 38.5% mulatto, black is 6.2%, other is
0.9%
Government and Economy
Run under federal republic- powers of central
government restricted
The 26 states, retain a degree of self-government.
Voters choose their government representatives
Member of the WTO since 1995 and Mercosur since
1991
Main trading partners :U.S., Germany, Japan, the
Netherlands, Argentina, and Italy
Fast-pace growth of the lower-middle and middle classes
Culture
Informal personalities
Good natured
Desire not to be thought of as rude
Value affection and spontaneity
Dress stylishly and judge others by appearance
Casual dress is more formal than in other countries
Individuals responsible for his/her decisions but family
loyalty is their highest duty
Relationships takes priority over following a strict schedule
(Polychromic)
Have close extended family and very family oriented
High uncertainty avoidance characteristic (UAI=76) do not
readily accepts change and are risk adverse.
Likely to be brand loyal
Regulations and laws are strict to gain control and avoid risk
 Carnival festival

Annual festival held 40 days before Easter, when

lent starts
Most famous holiday in Brazil and has become a
huge event
Country stops completely for almost a week and
festivities are intense, day and night, mainly in
coastal cities
Celebration imitates the European form of the
festival, with obtained elements from African and
Amerindian cultures.
Family structure

Households structure is changing- delaying marriage

and waiting longer to have children
Percentage of single-person households increased to
10%.
Singles earn about 10 times the minimum wage,
representing 30% of consumers in the middle and
upper classes
Younger women focus more on careers and have
fewer children later in life
Marriage rates dropped by 11% from 1995 to 2007.
Many decide to stay single or live with their partners or
parents instead of take on the burden of formalizing a
legal relationship.
Role of women
Remains essentially a male-dominated society
Increase important as consumers and part of the
workplace
From the yrs 2000-2006, female per capita
disposable income grew by 7.3%, when the
earnings of adult males increased 2.6%
Women have overtaken men in terms of
continuing education in all age groups
Role in purchasing decisions has changed, being
part of the economically active population and
becoming functional participants in household
decision-making
Account for over 44% of the economically active
population
25% are heads of their households.
Women influence 99% of all purchasing decisions
related to cleaning and hygiene products
Development
Increasing funds for infrastructure improvement
Poverty rate decreasing
New middle class emerging
Growing economy giving opportunities for job an wage
growth
Informal market is a growth obstacle
11 million informal businesses
Exporting to the Brazil consumer
market
Can take 3 times as long to export goods here than
most other countries
Cause: poorly constructed and maintained physical
infrastructure (roads, railways and seaports)
Weak dollar makes home country products more
expensive
U.S. ranked number one in exporting here (17.2% of
total imports)
Argentina (8.5%) & Germany (8.4%)

Other risks: cities are dangerous from drugs,

unemployment, and crime
The distribution of income is also unequal
 Competitors
Domestic companies increased their retail value
share from higher investments
5 top national companies within the household
goods segment (2008)
Companies :
- Química Amparo
- Bombril
- Scarlat
- Friboi
(combined retail value share 21%)
Large international companies, such as Unilever,
Procter & Gamble, and Lysol, dominant presence in
household care mass market.
Target Market
Middle Class
19% of lower-income (2-4 minimum wages)
consumers experienced a rise in social
standing to middle class
Additional 12 million households earn more
than US$ 2,500 per month
Spending Habits
More sophisticated
Increased minimum wage, lower inflation and
easy access to credit
“Bolsa Familia”: distributes minimum of
R$50.00 every month
http://0-www.portal.euromonitor.com.carlson.utoledo.edu/Portal/Magazines/Topic.aspx
 Demographics of Target
Market
Population
198 million
Median age
28.6 years
Main Language
Portuguese
GDP per capita
$10,200

https://www.cia.gov/library/publications/the-world-factbook/geos/br.html
 Brazilian Lifestyle
Television
A common pastime
among all social classes
Found in virtually all
households
Health
Health and appearance
are very important
Healthier and low-fat
foods
Internet
On-line households
increased dramatically
from 2000-2005
17th among all countries in
the Americas in Internet
access
1.5% of Internet users
have broadband access
http://0-www.portal.euromonitor.com.carlson.utoledo.edu/Portal/ResultsList.aspx
 Shopping and Location
Shopping
Increased because of currency stability
Supermarkets and independent stores
Prefer to shop locally
Make short, frequent trips by foot
Sense of choice but not overwhelmed by
options
Value-conscious
Importance on in-store service
Location
Live close to Atlantic Ocean on east coast
Almost 80% live in urban areas
Within 200 miles of Atlantic Ocean
Rio de Janiero and Sao Paulo

http://0-www.portal.euromonitor.com.carlson.utoledo.edu/Portal/ResultsList.aspx
 Lifestyle
Family
Foundation of the social
structure
Basis of stability for most
people
Tend to be large and
extended family is close
Nepotism is a positive Pastimes
Implies that Enjoy going to beach
employing people Swimming, windsurfing,
one knows and trusts surfing
is of primary
importance Soccer
Enjoy watching and playing
Soap Operas
América: illegal immigrant in
USA
Negócio da China
http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html
 Going Green
Green Sells
93% agree that
environmental
degradation is a major
issue
54% bought green
products (2008)
“Brazilians are the
most unlikely of all
consumers in the
world to avoid buying
environmentally
unfriendly products.”

http://www.synovate.com/changeagent/index.php/site/full_story/green_sells /
 Product
Adoptions
Non Mandatory
Bottle design squirt top instead of trigger

Use pictures on the bottle instead of words

Mandatory
Change of price compared to the United States.
The price for Seventh Generation in the
Brazil’s GDP $10,200 United States is $2.99, We compared this
price to 1 liter Priced in Brazil.
United States GDP $46,400
Green products are highly valued in Brazil in comparison to the
United States, and the Brazilian Middle Class is growing rapidly with
more purchasing power then ever before. Because of these factors
the decision was made to price to price a little higher to R$1.82,
which is $1.60 in U.S. dollars.
Promotion Plan: Advertising through Television

The top medium of advertising in Brazil

“…a consumer passion for Brazilians”
86% of population has a TV
TV accounts for 60% of total ad spend in Brazil
Pay TV i.e. satellite/cable is an expensive luxury
Only 3.4 million pay for television (1.7% of
population)
Advertise through local channels
Well-financed by advertising, therefore is
reliable
Mean viewing time of 3.5 hours per day per person
(mostly soap operas!)

1. www.campaignlive.co.uk “Campaign Report on Worldwide Advertising: Brazil”

 Promotion Plan: Advertising through Personal
Selling
Brazilians need to know who
they are doing business with
before they can make a
decision
Prefer face-to-face
interaction
Act in a calm, casual
manner as to not seemed
rushed
1. www.euromonitor.com
Utilize demonstration kiosks
at local grocery markets
Allows for interaction
between consumer and
company representative,
which builds trust
Demonstrate how cleaner is
utilized throughout the
household
Demonstration emphasizes
the absence of harsh
chemical smells
Increasing stability of
currency, consumers visit
markets more often rather
than stockpiling
 Promotion Plan: Advertising Medium Compared to
US

TV commercial first aired in

January 2010
Use multimedia i.e.
YouTube, banner
advertising on sites
Coupons on banner
advertising and through
SeventhGeneration.com

1. www.seventhgeneration.com
 Promotional Plan: Production & Branding

Branch of production located Glocalization approach

in Brazil
Consistent image & benefits
Poor infrastructure prevents
Can easily adapt to local
easy transportation and
consumers’ needs
delivery
Commitment to local issues
Local production cuts carbon
footprint
Operations are green and
socially responsible
throughout entire value
chain
Not just trying to achieve
premium pricing by
packaging of product
1. www.synovate.com “Green Sells”
Promotion Plan: Motivating Consumers to Buy in Brazil

• Greendex Report shows Brazilians are the greenest

consumers in the world- they’re already willing to buy
green products
• Consumers in developing countries feel more
responsible for environmental problems than those in
developed countries
• 93% of Brazilians agree that environmental degradation
is a major issue in the country
• Messages with local content relate more to the
Brazilian consumer
i.e. deforestation, protection of certain species,
decontamination of water, recycling
68% of Brazilians follow environmental news
• Use facts and statistics to influence consumers to buy

1. www.NationalGeographic.com “Greendex Report”

2. www.synovate.com “Green Sells”
3. www.sciencedaily.com “Ranking Consumers by Environmental Behavior”
Promotion Plan: Motivating Consumers to Buy Compared to US

• Have lowest Greendex score

and consumers have to be
“convinced” to buy green
products
• Environmentalism is not a new
phenomenon in Brazil, unlike in
the US where the green
movement has recently caught
on
• Emphasizes effects on future of
environment, whereas in Brazil,
the focus is on the personal
benefits of using green products
• Also uses facts and statistics to
influence consumers to buy
1. www.NationalGeographic.com “Greendex Report”
2. www.SeventhGeneration.com
3. www.synovate.com “Green Sells”
 QuickTime™ and a
decompressor
are needed to see this picture.
 QuickTime™ and a
decompressor
are needed to see this picture.