Project 5 International Business Plan

Marketing Strategy

Market Analysis

Brazil is the largest consumer market in South America and has larger GDP than any country in the region. Standing at $1.45 trillion, it ranks as one of the largest economies among the emerging nations (Amado, 2018). It is also generally an excellent market for exporters and companies from the US. The US is second among its largest trading partners, and there is usually a shared commitment to business progression. There is strong demand for brands and products from the US. Brazil has a total population north of 200 million people and even has a more extensive territory than the US. The key commercial and business environments are mainly in the southeast regions of Rio de Janeiro, Sao Paolo, and Minas Gerais (Amado, 2018). Sao Paolo is the nation's financial capital and is the basis for international businesses. Having already served as ninth among the US' largest export markets, it is clear that Brazil has a vibrant market for foreign companies, especially from the US. The emphasis is on favorable brands and incorporating technology in products and services.

Brazil is the second largest market in the region and is the most populous in the healthcare sector. Health spending still lags as the country has yet to hit the pedestals that more developed countries have reached. It has recently reached healthcare spending worth 10% of the overall GDP of the country, with the spending value of about $670 per capita thanks to its vast population base (Amado, 2018). Over time, Brazil has minimized health inequalities while improving healthcare coverage and access. There are, however, persistent challenges in enabling adequate financial funding as there have been inefficiencies in the utilization of resources in the nation's health system. The major changes have been epidemiology and demography, higher societal expectations, and the needs associated with the Covid-19 pandemic. There is thus a need for sustained efforts in reforms and adjustments to enhance the sustainability of the health system. Hospitals are concentrated in the southern areas, with Sao Paolo having the most hospitals and doctors. There have been policies that allowed foreign owners to own clinics and hospitals. Foreign investors thus gained leeway to get into the healthcare industry. The benefit has been more capital inflow, technology transfer, and modernization of the healthcare facilities across the country (Amado, 2018). Brazil also imports the majority of its healthcare product needs from other nations. All these facts point out a more investor-friendly atmosphere whereby MediCorp can thrive.

As has been the situation with virtually all countries globally, Brazil faced challenging times with the Covid-19 issue. The government struggled throughout 2021. The economic troubles led to the government striving to enhance consumer recovery and foster growth in the private sector (Amado, 2018). An essential step was in the mass vaccination program, which ultimately helped cut down on the quarantine measures and resumption normal business activities. MediCorp is more likely to succeed in the Brazilian market after all the developments that have taken place. The market is better positioned to incorporate more investors, and this company should take advantage of the opportunity.

Brazil still presents challenges to exporters and foreign investors despite all the aforementioned. There are complexities in domestic regulation and tax frameworks. There are more than 90 taxes, tariffs, and duties charged in the country, all being based on different levels of the government (Amado, 2018). The costs of imported products from the US and other countries can almost double, credit risks have been growing, and this has tightened trends in payment behavior. Corruption and bribery also remain rampant. The economic growth has been somewhat unpredictable over the last decade, with stagnations at some points and downward trends in others (Amado, 2018). Companies have also had to meet different compliance and standard requirements. Therefore, even if products were already tested and certified before, they would undergo the country's procedures. The infrastructure has been part of the negative impact, contributing to logistical issues and delays. There have been higher costs involved in delivering goods, while procurement processes have also posed challenges.

All is not null and void, however. The government has shown commitment to improving the infrastructure and addressing any inefficiencies that previously affected business. The outcomes have a decline in the costs and time. The current president, Jair Bolsonaro, has shown that he is quite a supporter of business, especially regarding the relationship between Brazil and the US. There has been progress in the commercial association between the countries. The Agreement on Trade and Economic Cooperation was updated in 2020, paving the way for better regulatory practices, trade facilitation, and customs administration (Amado, 2018). The impact of the free trade agreement in presenting new opportunities that organizations such as MediCorp can benefit from. The continued efforts to promote business and investment between the two nations show the potential for growth of foreign firms in Brazil.

Characteristics of Potential Customers

According to a study by Scielo Brazil, individuals who referred to themselves as disabled were more than 6% which accounted for more than 12 million people. Older expressed higher rates of disabilities compared to the younger generations (Malta et al., 2018). In a different study, the total number across the population in Brazil was 16%. Specifically, persons with physical disabilities are about 2.6 million, higher among men. Older people also had more physical disabilities, while the percentage for Black was higher though statistically insignificant. The northeast region of the country had a higher prevalence while at the same the rural and urban regions did not show any difference (Malta et al., 2018). It is only recently that individuals with disabilities have been considered as the subject of social justice and human rights. Previously, the condition was regarded as a personal problem or abnormality.

Numerous adults and children with disabilities around Brazil are generally kept in institutions where they experience abuse and neglect over time. As reported by Human Rights Watch, the fact of the matter is that these people do not have the chance to live independently within their communities but instead survive in deplorable conditions in the institutions (Human Rights Watch, 2018). Many of them remain there for their whole lives, living in utter isolation. There has been a scarcity of contact with the community and a complete lack of opportunities for personal development. The report stated that the institutions provided only the basic needs. Children have been gravely affected as their families have at times had to live them in the institutions due to the inability to take care of them (Human Rights Watch, 2018). Resources and sufficient community services have been scarce, thus necessitating their actions. Some adults have had to live most of their lives in confinement, having been left there without consent (Human Rights Watch, 2018). Many of the affected persons have physical disabilities.

While poverty has reduced over the years, the number of people surviving with disabilities has increased. There is inequality in the distribution of resources between the rich and poor, with poor children being more disadvantaged. This situation has contributed to the exclusion of individuals with disabilities (Mendes & Fernandez, 2021). There is a great correlation between poverty and disability. Nonetheless, a small portion of this population is well-off or economically stable. Some policies have been put in place to aid these circumstances, such as the Organic Law of Social Assistance (Mendes & Fernandez, 2021). With such efforts, it is more likely that the situation of people with disability will improve, and they will be able to access resources such as wheelchairs.

Many cases show that individuals with disabilities have been unable to be in a position to support themselves. Those abandoned by their families have experienced a lack of resources to buy wheelchairs. This is where MediCorp should be in the limelight to people who are essentially left hopelessly. With cost-effective electric wheelchairs, the organization should make a tremendous difference in Brazil. The quality of life of individuals in these positions should substantially change by the mere act of having a wheelchair that can be fully controlled by the self. MediCorp will also help the institutions to take care of their clients better as the wheelchairs will be more affordable than previously thought to be. There is a wide range of people who will benefit from these wheelchairs; thus, the steps by MediCorp will be vital

Market Entry Strategy

The entry into the Brazilian market will entail the establishment of a joint venture with Autocam Medical, a leading manufacturer of precision-machined tools and equipment. The strategy will serve as both a safety net in foreign investment and an opportunity to partner with an entity with an extensive resume in its area of focus (Nurlina & Sasari, 2022). The capabilities of both companies will work together nicely towards achieving the main objective. The location of Autocam Medical in Sao Paolo is an added advantage as the region forms the preferred option of setting up shop. Sao Paolo already covers the essence of the place in the investment process (Nurlina & Sasari, 2022). After attaining success in this area, the impetus will be to expand to other regions across the country. As the central financial hub of Brazil, it will help precedent for the eventual success that is anticipated. The other key factor is the product (Nurlina & Sasari, 2022). With the efforts of MediCorp in the technological aspect and the added advantage of partnering with Autocam, there will be an excellent opportunity to manufacture wheelchairs that will have the highest quality possible. The significance will be in enhancing the technology applied in a wheelchair making to increase their effectiveness, comfort levels, and ease of use.

The pricing of electric wheelchairs ranges from $1500 to more than $15000, depending on the quality, size, brand, and features. The market entry strategy will significantly consider pricing. The main factor, in this case, is the competition. Brazil's top manufacturers and dealers include SmartDrive, Permobil Power Wheelchairs, Tru-Shape, and TiLite Manual Wheelchairs. It will be integral to capture the market share away from these entities. A big part of achieving this feat will involve entering the market with a baseline price of $2000.

In comparison to the products of the other organizations, this will be more affordable, but at the same time, the quality will supersede the competition. The wheelchairs of comparable prices will be of much lower quality. The lower cost and higher quality should be enticing to potential customers (Nurlina & Sasari, 2022). All these will be subject to the developments in the market. Nevertheless, MediCorp will look to retain its advantage from this pricing strategy.

Promotion will be one of the most crucial and intensive parts of establishing a business in Brazil. An elaborate marketing scheme will be put in place. MediCorp will take advantage of working with an already established company in Autocam Medicals. Due to the citizens' familiarity with this firm, it will help make the partnership with MediCorp more noticeable and visible. Partnerships in joint ventures help promote the new entrant and, in extension, the products and services that are on offer. They help bypass regulations usually limited to entities entering new markets through direct investment. This will be a symbiotic kind of association that will be beneficial to all parties involved and will drive the ascension of the venture to greater heights.

Investment in different media types is instrumental in the marketability of the products and services of companies. There are both traditional and modern forms of media that are widely in use. MediCorp will put effort into enhancing its presence across the media. Televisions and radios should effectively factor in promoting the brand associated with the company. They will serve as the gateway to the minds of millions of Brazilians across the country and familiarize with the quality product that MediCorp offers at reasonably low prices. Apart from this route, social media marketing will be crucial in the process. Social media sites are extremely popular in this day and age (Nurlina & Sasari, 2022). Increasing the visibility of the company and its products will undoubtedly draw attention. Search engine optimization will make it much more possible for MediCorp to come up top in searches on the web.

The partnership won't end with Autocam Medical; instead, the two entities will venture into working with hospitals, community health centers, and institutions as these are the places that regularly contact individuals with disabilities. Understanding the features and benefits of MediCorp's wheelchairs will make the professional in these places the go-between with clients. It will be a partnership of convenience and not as business minded as the joint venture. They will be able to advise potential customers on the best wheelchairs to purchase and help create contact with the clients and other facilities that could require the services. Overall, the marketing strategy will be integrative and flexible. There will be space for assessing and adjusting the strategies involved according to their impact on customers and the market.

References

Amado, A. (2018). Disparate regional development in Brazil: a monetary production approach. Routledge.