Brazil and Chile Marketing Communication Essay
Pricing: When it comes to pricing in Brazil and Chile prices are set very similar in both countries - Brazil and Chile Marketing Communication Essay introduction. These countries should set competitive prices between each other and other countries. When talking about the final price in Chile for product at a mass level, companies should consider setting competitive prices with imports from regions like Asia and Brazil. High-priced items must be priced considering similar market segments as well.
Both countries pay import taxes: Foreign countries should be aware of pricing in Brazil because their companies could be at risk of lowering profit margins due to high import taxes and related costs making the company difficult to compete with local products. (U. S. of America Department of Commerce) Even though U. S-Chile FTA tariffs have been eliminated, Chile’s value added tax is usually paid by importers rather than suppliers; this tax is 19 percent. (Country commercial guides for U. S. Companies) Quality of Media: Brazil and Chile are very similar in quality of media.
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Numbers of media differ from different amounts. Both countries count with TV network, TV cable, radio stations, Internet, newspapers and magazine audiences. Promotion: Another similarity is that both countries take advantage of the huge audiences reached in soap operas for promotion purposes. Distribution Channels: Chile and Brazil use agent as the most common distribution channels for imports. Agents play a big role in both countries by helping companies and investors with their experience and knowledge of local buyers for exporting. Distribution Channels
Brazil’s 90 percent exports are via seaports and about 97% of exports and 59% of imports are distributed by the main seaports in Chile. Differences Entry barriers: It is complex to do investments in Brazil because of several licenses and registrations imposed by the Ministry of Development and International Trade. On the other hand in Chile investors take around three weeks to invest in that country at a low cost. Quality of Media: The research of the US Department of commerce shows that 73% of people in Brazil prefer to receive direct mail and in average a Brazilian consumer receives . 3 pieces of direct mail monthly. When it comes to Chile cable TV reach approximately 95 percent of the audience. Distribution Channels: While in Brazil import channels include agents, distributors, import houses, trading companies, subsidiaries, and branches of foreign firms. Also, in this country keeping inventory of capital equipment, spare parts or raw materials is very costly considering high import and storage costs. Instead, in Chile agents are the principal channel for foreign companies.