sports retail brands strategies in brazil

SPORTS BRANDS IN BRAZILA STRATEGIC FOCUS 2011

www.gsnsports.com.br

In order to generate an overview of sports

brands presence in the Brazilian market the

research SPORTS BRANDS IN BRAZIL: A

STRATEGIC APPROACH 2011 includes a

brief analysis of performances, strategies,

positioning and actions related to key players

in the segment.

PRESENTATION

Copyright Global Sports Network (GSN) 2011©Frederico Mandelli Guaragna – Business Intelligence ManagerJUNE 2011


Within a bold position Adidas aims to

improve communication with young

people thereby justifying its greater

attention on investments in social media.

Adidas has posted an average double-digit growth in

Latin America and will focus its marketing efforts in

World Cup and Olympic sponsorship activation to

increase revenues in Brazil. The group expectation is to

increase its national market share - currently 20% - and

achieve a turnover of U.S. $ 700 million in the country

until 2014 - which would result in an increase of 5% to

8.5% on the Brazilian representativeness market in

German brand’s total global revenue.

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In contrast Nike also provides marketing strategy

based on increasing sport consumption trends before

plan the mega events happening in Brazil. Sponsor of

the Brazilian Soccer Team the U.S. brand will have a

privileged position in the 2014 World Cup and is

already studying the possibility of supporting some

form of confederation to be present at the Olympic

Games.

NIKE HAS PLAN TO 2014-2016


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Believing in the potential of the

Brazilian market - representing 21% of

revenues in Latin America - Nike bets

on promising segments such as

"running" and extreme sports "Nike

6.0" to win the leadership.

After learning during start up operational Puma is consideredsolidified in Brazil. Occupying the third spot in the globalsporting competition the Italian brand had rapid penetration inthe Brazilian market through its differentiated positioningfashionable sportswear. Consolidated the original objectivesPuma turns marketer with the challenge of becoming moreaccessible to gain market share without compromising the idealsof the brand.

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Weakened internationally after its sale to Adidas Reebok remains strong

in Brazil with a share of 15%. This fact is consistent with its presence in

domestic football - currently the only brand provides material for the

Premier League teams and Australian but the goal should continue to be

female audience. Umbro already acquired by Nike has slowly loses

visibility focusing on developing high technology products mainly in

football.

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If the British brands have remained in operation after

being built by Germans and Americans the Italian

manufacturers seek to reinvent themselves for not

having the same fate.

The Diadora which had already applied for bankruptcy

and was acquired by GEOX continues its global

challenge of rejuvenating the brand and product

portfolio review with indecision on how to add

technology to the segment of sports fashion.

ITALIAN BRANDS WEAKENED


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Prestigious brands in Italy Kappa and Lotto have difficulties in following the development

of the Brazilian market since the financial capacity constraints that prevent larger

investments in marketing, research and development - key to local competitiveness -

which also does not run with the Italian Fila .

A strategy to qualify its products and thus increase prices gradually yielding results for the

Italian group which trades on average more than 2.2 million pairs of shoes and making

almost $130 million annually in Brazil.

FILA QUALIFY ITS PRODUCT MIX


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Innovation in conjunction with a business based on marketing

activities direction of aimed to meet specific niches can be an

effective alternative to the definitive consolidation of a mark in the

industry. In this sense there are examples of success from one of

the largest global technological poles - Japan.

With a policy of continuous investment in

research and products development

Japan's Mizuno and Asics have managed

to create an identity strongly linked to the

public by constantly running articles

launches high performance.

JAPANESE TECHNOLOGY

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The focus will allow Mizuno and Asics both remain as

leaders in this segment despite the change to a more

aggressive competitive posture of Nike, Adidas and

Olympikus in running mainly targeting Brazil.

Already the U.S. Speedo not turn away from its core

business and concentrating its activities only in aquatics -

now with greater participation of the Italian Arena.

MARKET FOCUS AND DIRECTION


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The heating of the Brazilian economy

stimulates new players entry in order

to increase revenue and reduce

negative impact that European crisis

is affecting businesses. However the

lack of knowledge of Brazilian market

peculiarities - particularly as regards

the logistics and distribution - has

been an impediment to the entrants.

Even in Latin American Joma and Mitre have not

found an efficient way of operation as Arena, New

Balance, Saucony, Ironman, Babolat, Avia are on

the business sustainability in the country

surpassed process by Spalding and Wilson in the

past decade.

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While the market came with the

harassment of foreign brands in the

country the Brazilian manufacturers find

ways to ensure competitiveness in the

segment are reinventing themselves.

Investment technologists, product

development and media are vital for

sustaining the local operation.

Nevertheless, pressured by international

players the Brazilian sports brands

enhance its competitiveness in foreign

trade primarily in Latin America

considered the second largest market in

the continent.

BRAZILIAN BRANDS REINVENT ITSELF

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Isolated leader in sports footwear market in the

country Olympikus continues to pursue

strategic planning for technological

improvement of its product line to raise the

brand status in consumer perception. Heavy

investment in sports sponsorships, media

advertising - currently Olympikus is the largest

advertiser in its segment - and at points of sale

complement the marketing plan to make the

impressive Brazilian brand in Brazil and Latin

America.

TECHNOLOGICAL IMPROVEMENT


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Since these guidelines were drawn by Vulcabrás - current manufacturer - Olympikus's revenues

growing an average of 12%. In 2010 the brand has achieved a turnover of $750 million - to

include foreign markets -. The models innovations success like Jet Tub and Zomax contributed

to an increase of 74% of net sales in the last four years - now accounted for 17 million pairs of

shoes sold annually. The central positioning in high technology results in a significant increase

in the average selling price of the shoes Olympikus retail.

Traditional in the market Topper and Penalty identified the

need for a new visual identity as a way to communicate new

positioning. Both banking on expanding the range of sports

footwear, equipment and supplies, expanding its products

portfolio to different modalities.

Investments in creative campaigns whose bid valuation of

brands "really" national aims to establish emotional

connections with the public and aggressive pricing strategies

are adopted by Topper and efficient Penalty in the face of

fierce competition in the domestic market.

REBORN, REBUILD A BRAND VALUE

Focus on global expansion - exports to 80 countries - Topper has joined its operations in Mercosul

and looking to enhance capabilities and improve-commercial area. In Argentina the manufacturer is

a leader in its segment with 32% market share while in Brazil despite being released 36 years ago

does not exceed 7%. With a sports sponsorship policy investment aligned with strategic objectives

Topper managed to increase sales by 15% in Latin America last year.

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For Olympikus the decision to explore Argentinean

market in is one of the preparatory steps for ambitious

planning towards brand internationalization in North

American soil. In just three years of operation in the

neighboring country, Olympikus already has 5%

market share and as Penalty and Topper aimed much

of its marketing dollars to activation campaigns in the

sports environment.

Penalty already decided to increase its manufacturing

capacity in Argentina and open office in Spain on the

opportunities in the industry. Currently revenue from

exports to 18 countries represents 27% of total sales

of the brand belonging to the group Cambuci.

EXPANSION TO LATIN AMERICA


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Business Plan

The GSN provides consulting solutions in several areas important to

the effective entry of its brand in Brazil such as:

Strategic Plan

Sales Strategy Market Research

Trading

DOING BUSINESS WITH BRAZIL


Market ResearchLogistics &

Distribution

Centro Empresarial CittàAmérica

Av. das Américas 700 - Bl. 6 - Sl. 228/234

Barra da Tijuca - Rio de Janeiro - RJ

(55) 21-2495-1716

[email protected]

Frederico Mandelli - [email protected]

Mídia Esportiva I Gestão Esportiva I Marketing Esportivo I Gestão de Carreira

@gsnsports

mailto:[email protected]

mailto:[email protected]