Assignment Title Individual Report
Expansion of SME company- Demarquette Fine Chocolates into Brazil
Since its founding in 2006 by Marc Demarquette, Demarquette Fine Chocolates has established itself as a prominent artisanal chocolate business based in London, known for its dedication to creating excellent chocolates using ingredients that are acquired responsibly (Demarquette, 2023a). The company's wide range of products, which includes truffles, ganaches, pralines, and caramels, combines classic methods with cutting-edge flavor combinations to provide chocolate lovers with a sensory experience (Demarquette, 2023b). Demarquette has won praise from all around the world for its commitment to quality and culinary innovation by using only the best raw ingredients and a painstaking handcrafting method. A tribute to the creativity that goes into each confection, the brand's chocolates appeal to discriminating palates all across the world.
Brazil is one of the key markets that Demarquette Fine Chocolates is deliberately pursuing in its quest of global expansion. The strong expansion of the Brazilian economy, along with a growing demand for high-end and unique goods, makes the market perfect for Demarquette's handcrafted goods. Demarquette's brand ethos is in perfect harmony with Brazil's changing consumer landscape, which is characterized by an increasing desire for luxury goods. This puts the company at the forefront of the country's thriving confectionery market. Brazil offers Demarquette an ideal environment to present its unique flavors to a discriminating consumer thanks to its dynamic and diverse culinary scene. Brazil's high chocolate consumption is a cultural trait that offers the brand a chance to get in with the local market. In order to become the preferred option for Brazilians looking for a more sophisticated chocolate experience, Demarquette Fine Chocolates plans to use strategic localization in conjunction with focused marketing tactics.
It is advised that, in your capacity as a marketing consultant, you take a gradual strategy to entering the market, concentrating on increasing brand recognition, forming strategic alliances with regional shops, and customizing marketing campaigns to appeal to Brazilian tastes and preferences. Demarquette Fine Chocolates may build a robust presence and prosper in this dynamic market by conforming to the cultural subtleties and capitalizing on Brazil's increasing inclination towards luxury goods (Demarquette, 2023a; Demarquette, 2023b).
A thorough examination of macro and micro issues is necessary when entering a foreign market to make sure the strategy is in line with the objectives and core values of the company. Demarquette Fine Chocolates' decision to focus on Brazil is supported by a thorough analysis of numerous elements pertaining to the nation's socioeconomic dynamics, cultural characteristics, and chocolate sector.
Economic Growth and Consumer Spending: Because of its strong economic growth and changing consumer spending habits, Brazil is a desirable market for luxury products, such as fine chocolates. A sizable consumer base ready to indulge in premium goods is provided by the nation's growing middle class, which has increasing disposable income (Guirlanda et al., 2021). This is consistent with Demarquette's positioning as a specialized supplier of handmade chocolates to a sophisticated customer base.
Cocoa Market Analysis: The analysis of the Brazilian cocoa market is a significant macro component that influenced the choice. A deeper comprehension of the patterns and competitiveness in the Latin American region can be gained from the insights obtained from the examination of the Mexican cocoa market (Duana-Ávila et al., 2023). To source high-quality ingredients and guarantee a sustainable supply chain, it is imperative to comprehend the intricacies of the local cocoa market.
Traceability, Authenticity, and Sustainability: As traceability, authenticity, and sustainability become more important in cocoa and chocolate products, Demarquette's dedication to premium ingredients and ethical sourcing is in line with this trend (Perez et al., 2021). Demarquette's brand is more appealing to environmentally concerned consumers in Brazil because of the country's emphasis on sustainable practices.
Nutritional Composition of Cocoa-Based Products: Barišić et al. (2022) conducted an analysis on the nutritional value of beverages containing cocoa, which aids Demarquette in customizing its product line to accommodate regional choices and dietary requirements. It is ensured that the chocolate products suit local tastes and dietary habits by having an understanding of the nutritional preferences of Brazilian consumers.
Macro and Micro Elements in Traditional Diets: According to Barrica et al. (2023), analyzing macro- and microelements in traditional Mediterranean diets provides information about the dietary habits and nutritional requirements of the Brazilian populace. Product development and localized marketing strategies require this information.
Local Chocolate Market Dynamics: The analysis of the Italian chocolate market, with a particular emphasis on "cioccolato modicano" (Sparacino, 2023), offers important insights into the tastes and behaviors of consumers. Although Brazil and Italy are not the same, knowing what makes a country successful in a comparable cultural setting helps to improve Demarquette's approach to entering new markets.
Cocoa Origin Traceability: According to Kamiloglu et al. (2022), it is critical to make cocoa provenance traceable in order to satisfy customer needs for transparency. By putting traceability procedures in place, Demarquette is able to tell Brazilian customers where its ingredients come from, which builds customer loyalty and trust.
Socio-economic and Social Innovation Ecosystems: A comprehensive picture of the regional business environment is offered by insights from research on social innovation ecosystems in Brazil (Barki et al., 2020; Andion et al., 2022). With this information, Demarquette will be able to negotiate social and cultural quirks and maybe work with neighborhood projects and business owners.
Market Response to Crisis: Knowing how Brazilian businesses handle crises (Barki et al., 2020) gives Demarquette strategic information to customize its resilience and crisis management plans, guaranteeing adaptation to the changing Brazilian market.
The choice of Demarquette Fine Chocolates to focus on Brazil was made after a careful examination of macro and micro aspects, incorporating research results from several academic fields. Demarquette wants to establish itself as a leader in the Brazilian luxury chocolate market by taking into account local dietary preferences, sustainability practices, economic trends, and the dynamics of the cocoa market. By ensuring a comprehensive awareness of the target market, this strategic approach paves the way for a successful worldwide expansion.
Demarquette Fine Chocolates must overcome cultural differences that have a substantial impact on customer behavior in order to enter the Brazilian market. Comprehending these unique features is essential for customizing promotional plans and product offerings to correspond with the inclinations and principles of the Brazilian customer demographic.
Cultural Influence on Decision-Making
In Brazil, cultural influences have a big influence on what consumers choose. Brazilian culture places a high value on social connections, family, and the community (Neufeld et al., 2021). By highlighting the shared joy of indulging in fine chocolates during family get-togethers and celebrations, Demarquette may capitalize on this cultural emphasis. Chocolates as a symbol of unity can be a powerful selling point for marketing initiatives targeting Brazilian consumers.
Environmental and Sustainability Awareness
The recent catastrophic fires in Brazil have heightened environmental consciousness among the population (Pivello et al., 2021). Brazilian consumers are increasingly concerned about the environmental impact of the products they purchase. Demarquette's commitment to ethical sourcing and sustainability aligns well with this emerging trend. Transparent communication regarding the brand's sustainable practices can enhance its appeal to environmentally conscious consumers in Brazil.
Attitudes Towards Innovative Food Products
Brazil's diverse culinary landscape has fostered a culture of openness to new and innovative food products (Valente et al., 2019). This presents an opportunity for Demarquette to introduce unique and exotic chocolate flavours that resonate with local tastes. Emphasizing the craftsmanship and quality of the chocolates, coupled with an exploration of Brazilian-inspired flavours, can capture the attention of adventurous and discerning consumers.
Celebration of Festivals and Traditions
Celebrations and customs are highly valued in Brazilian culture. Demarquette benefits from the ability to comprehend and coordinate with important festivities like Festa Junina and Carnaval, which allow for targeted product advertising and limited-edition releases. By linking chocolates to major cultural events, brands may increase their relevance and increase customer involvement.
Preference for Local and Artisanal Products
In Brazil, handcrafted items are becoming more and more popular, and there is a growing tendency towards supporting local enterprises (Postali Parra and Coelho, 2019). One way to use Demarquette's identity as an artisanal chocolate business situated in London is as a differentiator. The combination of premium, locally produced ingredients and an emphasis on handcrafted craftsmanship can appeal to Brazilian customers who value genuine, high-quality products.
Demarquette Fine Chocolates' Brazilian target market is distinguished by a combination of environmental sensitivity, cultural awareness, and a love of tradition and quality. Due to the consumer's appreciation of shared experiences with friends and family, chocolate is now often served during social events. They are willing to try new and creative flavors, particularly those that are influenced by regional customs and tastes. The target market values companies that follow ethical and transparent business practices as sustainability becomes more and more of a concern. Furthermore, the inclination towards endorsing regional and artisanal enterprises is consistent with Demarquette's essence, showcasing the brand as the perfect option for individuals looking for an exquisite and culturally meaningful chocolate encounter in Brazil.
Through the integration of these cultural insights into marketing methods, Demarquette Fine Chocolates can establish a significant rapport with Brazilian consumers, guaranteeing a smooth and culturally appropriate debut into the vibrant Brazilian market.
A careful selection of market entry methods is necessary when entering the Brazilian market, taking into account the complex economic, cultural, and regulatory characteristics of the nation. Informed by pertinent studies, a critical analysis of various approaches will help Demarquette Fine Chocolates make well-informed judgments and customize its strategy to the distinct features of the Brazilian market.
Exporting
Exporting is a conventional market entry strategy that entails shipping products to the target market. While this method leverages existing production capabilities and supply chains, Brazil's complex regulatory environment and potential trade barriers pose significant challenges (Andreoni and Tregenna, 2020). Additionally, the delicate nature of chocolate products raises concerns about quality preservation during transportation. While exporting offers a quick market entry, Demarquette must be prepared to adapt its strategies to meet local regulations and consumer preferences.
Licensing or Franchising
By utilizing existing networks and local knowledge, working with local partners through franchising or licensing helps hasten market entry (Andreoni and Tregenna, 2020). By using this strategy, Demarquette can take advantage of the partner's market expertise in Brazil. However, maintaining brand consistency and quality control might be challenging, and the company would need to carefully select partners who align with its values and standards. Licensing or franchising offers a compromise between control and leveraging local expertise, but the potential loss of control over brand image requires careful consideration.
Strategic Alliances and Partnerships
Forming strategic alliances with established players in the Brazilian confectionery industry can facilitate smoother market entry (Pohlmann et al., 2020). By partnering with regional distributors or merchants who have a significant market share, Demarquette can use pre-existing distribution networks. By using this approach, the dangers of navigating unknown market dynamics on your own are reduced. However, in order to guarantee conformity with Demarquette's brand image, selecting the appropriate partners is essential. The corporation can effectively navigate the Brazilian market by fostering strategic connections and enlisting the assistance of local partners.
Joint Ventures
In a joint venture, a new business entity is established through a collaboration with a local entity. By sharing resources and risks, this tactic combines the advantages of both parties (Andreoni and Tregenna, 2020). Joint ventures can offer access to local knowledge and help with regulatory compliance. Conflicting commercial plans and cultural differences, however, can provide difficulties that need for careful management and discussion. Joint ventures give partners a way to share risks and resources, but for the partnership to succeed, possible disagreements need to be resolved amicably.
Direct Investment and Establishing a Subsidiary
In a direct investment, a wholly-owned subsidiary is established in Brazil. The most possible control over operations, quality, and brand image is offered by this approach. However, it demands significant financial resources and entails higher risks, especially in a new and diverse market like Brazil (Dranka and Ferreira, 2020). Regulatory compliance, cultural adaptation, and navigating local business practices become critical aspects of this approach. Establishing a subsidiary grants Demarquette unparalleled control but requires a substantial commitment of resources and a comprehensive understanding of local dynamics.
Considering the cultural emphasis on authenticity, the preference for artisanal products, and the significance of sustainability in the Brazilian market, Demarquette Fine Chocolates is recommended to adopt a Strategic Alliances and Partnerships approach.
● Leveraging Local Expertise: Forming partnerships with established local distributors or retailers aligns with Demarquette's commitment to delivering high-quality products while tapping into existing market networks. This strategy allows the company to leverage the local partner's market knowledge, distribution channels, and understanding of consumer preferences.
● Mitigating Market Risks: A strategic alliance approach minimizes the risks associated with navigating unfamiliar market dynamics independently. By collaborating with entities already entrenched in the Brazilian confectionery industry, Demarquette can navigate regulatory complexities and cultural nuances more effectively.
● Ensuring Brand Consistency: It is essential to do extensive research before choosing partners who share Demarquette's ideals and devotion to excellence. To preserve brand coherence and guarantee a smooth launch into the Brazilian market, cooperation and clear communication with regional partners will be crucial.
● Balancing Control and Local Adaptation: Demarquette can take advantage of the flexibility provided by strategic alliances without sacrificing control over its basic principles or the caliber of its products. This enables the business to maintain a strong sense of brand identity while customizing its strategy to accommodate regional tastes and react to shifting market conditions.
Demarquette Fine Chocolates may leverage the assets of well-established businesses in the Brazilian confectionery industry by carefully aligning with local partners. This strategy guarantees a successful market launch that is attentive to cultural differences and presents its distinctive handmade chocolates to a discriminating Brazilian clientele.
Introducing Demarquette Fine Chocolates to the Brazilian market necessitates a nuanced approach to the marketing mix, considering the country's unique cultural, economic, and consumer landscape. The elements of the marketing mix—product, price, place, and promotion—should be strategically adapted or standardized to ensure resonance with Brazilian consumers while maintaining the brand's identity.
Product
● Adaptation: Demarquette's product offerings should be adapted to align with Brazilian preferences and cultural nuances. Research on chocolates with Brazilian cocoa indicates that understanding volatile compounds according to consumer preference is pivotal (Cemin et al., 2022). Incorporating local flavours and ingredients unique to Brazil can enhance the appeal of Demarquette's chocolates. Collaborating with local chocolatiers to create limited-edition Brazilian-inspired collections can create excitement and cater to the diverse tastes of the Brazilian consumer.
● Standardization: The core values of Demarquette's artisanal and high-quality chocolates should be maintained. While adapting flavours and ingredients, preserving the meticulous craftsmanship that defines the brand is essential. Standardizing certain elements, such as packaging quality and presentation, ensures continuity and recognition of Demarquette's brand identity.
Price
● Adaptation: Pricing strategies must align with Brazil's economic landscape. Research on the best sales channels for chocolates in Brazil (Silva et al., 2021) should inform pricing decisions. Understanding local spending habits and perceptions of value is crucial. Offering various price points and package sizes allows Demarquette to cater to a broad spectrum of consumers, making luxury chocolates accessible while maintaining exclusivity through premium collections.
● Standardization: The perceived value of Demarquette's chocolates, synonymous with quality and craftsmanship, should be standardized. While adapting to local economic conditions, the premium positioning of the brand should remain intact. Transparency in pricing and a clear communication strategy can emphasize the value proposition to Brazilian consumers.
Place (Distribution)
● Adaptation: Brazil's vast geographical and cultural diversity requires a nuanced distribution strategy. Research on the history, dissemination, and field control strategies of cocoa diseases (Sousa Filho et al., 2021) may influence decisions on sourcing and distribution channels. Establishing partnerships with local distributors and retailers, especially those with a strong presence in key regions, facilitates efficient market penetration.
● Standardization: While adapting to local distribution channels, the commitment to maintaining quality standards in transportation and storage should be standardized. Implementing stringent quality control measures ensures that Demarquette's chocolates reach consumers in optimal condition, regardless of the distribution channel.
Promotion
● Adaptation: Brazilian consumers respond well to sensory stimuli, as indicated by a study on visual cues on chocolate packaging (Baptista et al., 2023). Demarquette should adapt promotional strategies to leverage visual and sensory appeal. Collaborating with local influencers, artists, or designers for packaging design that resonates with Brazilian aesthetics can enhance brand visibility. Additionally, aligning promotional activities with cultural events and celebrations, as revealed in research on cocoa honey in Brazil (Guirlanda et al., 2021), ensures contextual relevance.
● Standardization: The overarching narrative of Demarquette as a purveyor of exquisite and handcrafted chocolates should be standardized. While adapting promotional content for cultural relevance, the core message of quality, craftsmanship, and the brand's unique identity should remain consistent across different promotional channels.
Integrated Marketing Communication (IMC)
● Adaptation: Understanding the local media landscape and consumer behaviours is crucial for effective IMC planning in Brazil (Masud, 2020). Demarquette should adapt its communication channels to align with popular platforms and mediums in Brazil. This may involve leveraging social media, influencers, and culturally relevant events.
● Standardization: The tone and messaging of IMC efforts should be standardized to reflect Demarquette's global brand image. Consistency in communicating the brand's values, story, and commitment to quality ensures a cohesive and recognizable identity in the Brazilian market.
Achieving the right balance between adaptation and standardization across the marketing mix elements is essential for Demarquette Fine Chocolates' successful entry into the Brazilian market. Adapting to local tastes, preferences, and economic conditions while maintaining the core brand identity ensures resonance with Brazilian consumers. Striking this balance requires continuous market research, collaboration with local experts, and a commitment to agility in responding to evolving consumer dynamics in Brazil.
Demarquette Fine Chocolates' entry into the Brazilian market is a multifaceted endeavour that demands a thoughtful integration of cultural insights, market analyses, and strategic decision-making. The decision to target Brazil, supported by its economic growth, consumer spending patterns, and the country's affinity for luxury goods, is well-founded. Leveraging studies on the cocoa market, environmental consciousness, and consumer preferences in Brazil, the recommended market entry strategy involves forming strategic alliances and partnerships with established local entities.
Adapting the marketing mix elements is paramount for success. Customizing products to incorporate local flavours while maintaining the brand's artisanal identity responds to Brazil's diverse culinary landscape. Price strategies, distribution channels, and promotional activities should be finely tuned to align with the economic conditions, geographical diversity, and cultural nuances of Brazil. Balancing adaptation and standardization ensures a cohesive market approach while resonating with the Brazilian consumer's appreciation for authenticity and quality.
By carefully navigating these considerations, Demarquette Fine Chocolates can position itself as a distinguished player in the Brazilian confectionery market, offering a delightful fusion of global excellence and local charm. Continuous market monitoring, flexibility, and a commitment to sustainability will be crucial for long-term success in this dynamic and culturally rich market.
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