After analyzing the country profiles, the team decided to choose Brazil against Singapore as the entry market. A set of marketing strategies were devised for the AutoZone, mainly by looking at cultural aspects, consumer behavior, risks, and opportunities in Brazil. The culture of Brazil is different in many ways as compared to that in the United States. According to cultural dimensions analysis proposed by Hofstede (2001), Brazil is an extremely collectivistic society, indicating that loyalty exists among employees who prefer long-term relationship for business establishment.
In terms of power distance, Brazil has inequality in terms of income distribution among the three difference classes. This may cause higher business risks that could impede the economic growth. Another cultural difference is that the majority of Brazilians speak Portuguese as their main language. Besides, Brazil has a good perception of American products, which have higher quality and contrasting brands.
In light of the cultural differences in Brazil just described above, it helps to make a logical decision about the marketing program (in terms of four Ps) for reaching the target market and create company values. Localization strategy is most suitable for the AutoZone since there is a substantial cultural diversity in Brazil, and the cost pressure will be lower through the joint-venture mode. AutoZone retail shop will be located at Sacoma, one of the main cities at Sao Paulo, which is also close to the auto industrial area.
Faurecia will be the automotive supplier for AutoZone at Sao Andre, which is 20 minutes from the retail shop. Market penetration pricing strategy will allow AutoZone to test the market toward price sensitivities. In order to create public awareness, AutoZone has to organize promotion campaigns, such as sales promotion, event sponsorship, and advertising in newspapers, billboards, auto magazines, and internet. References Hofstede, G. (2001). Culture’s consequences: Comparing, values, behaviors, institutions, and organizations across nations. 2nd ed. Thousand Oaks, CA: Sage.