brazilian mkt seenheiser.part1

BUSINESS PLAN FOR

SENNHEISER IN BRAZIL

Antonio Oliveira de Carvalho 01/26/2011

Proprietary and confidential. Do not distribute without written permission from Link do BrasilLink do Brasil Produtos Eletrônicos Ltda

TABLE OF CONTENTSTABLE OF CONTENTS

LINK DO BRASIL OVERVIEW

CHANNEL MAPPING - BRAZILIAN RETAIL MARKET AT A GLANCE HYPERMARKETS AND DEPARTMENT STORES SPECIALTY STORES E-COMMERCE

GO-TO-MARKET STRATEGY PRODUCT PRICE DISTRIBUTION PROMOTION

CONCLUSION

LINK DO BRASIL OVERVIEW


LINK DO BRASIL PRODUTOS ELETRÔNICOS LTDALINK DO BRASIL PRODUTOS ELETRÔNICOS LTDAVALUE ADDED DISTRIBUTORVALUE ADDED DISTRIBUTOR

Value Added Distributor for the Brazilian Market

Established: 1983

Headquarter: São Paulo

Manufacturing unit: Ilhéus – State of Bahia

Employees: 150+

2010 Revenue: US$ 16 million

BU’s: Audio, Gaming, Computing and OEM

Brands: TEAC, Cooler Master, Imation and Advanced

FAST FACTS



CHANNEL

VENDORSDemand Generation:- Product Definition- Supplier Scanning- Negotiation- Inventory Availability

MARKET

Marketing:- Market Studies - Advertising- Publi32c Relation- Point of Sales- Events

Customer Support:- Technical Support- Repair & Return- Logistics- Technical Training

Manufacturing:- Product Assembly- Product Customization- System upgrade

Distribution:- Import- Outbound Logistics- Inventory- Inbound Logistics

SERVICES AND RELATIONSHIP LEVELS


SALES STRUCTURE

Link do Brasil has a large and experienced group of sales representatives covering the entire country both geographically and by channel type. The sales team is controlled very closely, where each individual is accountable for sales performance through pipeline, funnel and profitability reports, as well as account presentations at regular sales meetings.


Link do Brasil has build a proven relationship record with major customers in the country. It became a trusted advisor for its customers, building an open-door relationship that allows the company to easily introduces new products and partners

Link do Brasil has today a team of 13 sales reps., 2 sales admin and one sales manager, who is responsible to control, motivate and provide all necessary information for the team, so they perform according to the strategy.


SALES TEAM

Bahia: C. Chuai

Ceará: M. Aguiar

Goiás: L.C. Aguiar

Brasília: L.C. Aguiar

Minas Gerais: Lyna Oliveira

Rio de Janeiro E. Valente

Miguel Ebner

São Paulo A.C. Galvão

E. Palomaris

F. Salgado

R. Franco

Paraná: A. Guadalin

Rio Grande do Sul: M. Mariano

Sales Manager: S. Queiroz

Sales Admin: S. Siqueira

P. Silva


Sales team covers 20 states or 93% of Brazil’s GDP


CUSTOMER SUPPORT


Link do Brasil offers to its customers national tech support. From answering simple usage related question to repair and return, consumers have access to our technical network either through e-mail or 800 number for the entire Brazilian territory.

Customers can drop damaged products onto more than 140 technical shops, where specialized technicians analyze, repair, return and generate detailed occurrence reports. They must close a ticket within 5 working days.

We set as our main goal consumers’ and customers’ peace of mind by taking full responsibility for all problems involving our products.

CHANNEL MAPPINGBRAZILIAN RETAIL MARKET AT A GLANCE


PRIMARY RETAIL CHANNELS

• There are 9 different distribution channels for tech products in Brazil:

• Hypermarkets.• Department stores.• Specialty Stores – electronics, audio and video.• Specialty Stores – computer.

• Specialty Stores - games

• Electronic commerce.• Integrators.• Resellers (small specialty store)

• Specialty Stores – office supply.

BRAZILIAN RETAIL MARKETBRAZILIAN RETAIL MARKET

Hypermarket and Department Stores

Specialty Stores E-commerce

HYPERMARKETS AND

DEPARTMENT STORES


FAST FACTS

• The largest computer and electronics retail channel are still the hypermarket and department stores, today they represent 34,56% of all Brazilian sales for this product segment.

• With the technology democratization, more sophisticated products will be available at hypermarkets and department stores, increasing penetration of this product line.

• Hypermarkets and department stores in Brazil offer low complexity products with reasonably low prices.

• There are more than 10,000 stores distributed throughout the country, for this study we evaluated 60 companies, comprising approximately 6,500 stores.

• Average income of hypermarket and department store consumers in Brasil is R$ 1.400,00 (US$ 740,00), the lowest among the 3 segments covered.

HYPERMARKET AND DEPARTMENT STORESHYPERMARKET AND DEPARTMENT STORES


It has been mapped out

60 companies, comprising

6558 stores, distributed

throughout 27 Brazilian states. No. of stores

COVERAGE



FAST SHOPSão Paulo/SP – 53 stores

(31SP; 3RS; 3BA; 10RJ; 3PR; 3MG)All premium stores.


PREMIUM HYPERMARKETS IN BRAZIL


COLOMBOFarroupilha/RS – 247 stores

(4MG; 1DF; 68PR; 66RS; 43SC; 66SP)

8 Premium stores


Trend – premium stores



PONTO FRIORio de Janeiro/RJ – 474 Stores

(present in 12 states)15 Premium stores


SAM’S CLUBBarueri/SP – 22 stores

(present in 11 states and DF)

Trend – premium stores


brazilian mkt seenheiser.part1

Business

stores present

premium stores hypermarket

specialty stores electronics

stores coverage hypermarket

specialty stores computer

brazil trendpremium

brazilian sales

sales performance