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FrieslandCampina & doing business in Brazil

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FrieslandCampina & doing business in Brazil

Rechten: Alle rechten voorbehouden

Samenvatting

The purpose of this research is to provide an advice for FrieslandCampina whether it is feasible to expand its activities to the emerging market Brazil. Therefore the research question of this report is as follows: "Is it feasible for FrieslandCampina to expand its activities to the emerging market Brazil and, if so, what strategy is needed?"
In this research report, there is information about FrieslandCampina and its current mission, vision, objectives and strategies. Brazil in terms of dairy is discussed, as well as the customer, the competitors and the trade relations between Brazil and the Netherlands/European Union. This information is mostly retrieved from desk research. Field research is also used in the form of interviews. FrieslandCampina is a well-known Dutch multinational dairy enterprise with 14.391 members of dairy farms in the Netherlands, Germany and Belgium. The products of the company are all dairy products in which milk is processed. The products are daily life products of high quality, which contributes to a healthy lifestyle. FrieslandCampina is an international company, but is strongly focused on local characteristics. The main regions which they focus on are Asia, Africa and Europe. FrieslandCampina has strong marketing campaigns, such as recognizable commercials on
television and farm days.
Brazil is an enormous country with an enormous population, located in South America. The population of Brazil and its GDP are still growing. In recent years, there was less import and no export of dairy in Brazil and the consumption of dairy is also not as high as you would expect in such an enormous country. In Brazil, there is an increased health-oriented middle-class. The climate in Brazil is also very diverse because of its geographical spread. This has an impact on the dairy production. In Brazil, the regulatory environment is very complex, because there are three different levels of government and although the Brazilians strive hard to decline corruption, it still exists.
The dairy products are not linked to age or sex, which means that the products are available for different levels in society. FrieslandCampina is a very strong player in Africa, Asia and Europe.
Currently, Nestlé is a very strong player in Brazil. Nestlé has already been active in South America for a long time. In Brazil, local competitors are also relatively strong and have created customer
trust. The Netherlands is an important export partner for Brazil. The Netherlands is the fourth trading partner of Brazil. Thereby, Brazil is also an important export partner for the Netherlands. The trade
missions to Brazil are meant to strengthen the trade relations between the Netherlands and Brazil. The EU as a whole has also been trading with Brazil for a long time. The EU is Brazil's first trading partner.
From the interviews, it can be concluded that FrieslandCampina is interested in a country if the GDP grows, if the population grows and if there is not enough milk production. In Brazil, the dairy products are less common than in the Netherlands. However, the Brazilian people are more and more focused on healthy food and dairy products contribute to a healthy lifestyle.
From the SWOT and the confrontation matrix, three different strategies were created. The first one is focusing on nutrition only when entering the Brazilian market. This is because 24.7% of the population is between 0 and 14 years old. The second strategy is merging with a local competitor, because FrieslandCampina does not have any experience with the Brazilian customer. And the third strategy is not expanding activities to Brazil, but becoming the strongest and most sustainable player in the regions where FrieslandCampina is already active. Finally, the conclusion and the recommendations are drawn; for FrieslandCampina it is not feasible to expand activities to the emerging market Brazil. First of all, this is because of the self-sufficiency of Brazil in terms of dairy. Moreover, the company has no experience in the South American market. There are strong competitors with the same products. FrieslandCampina will be in conflict with its own policy (exporting dairy products from the Netherlands to another country) and Nestlé will make it very difficult for them to gain access to the Brazilian market. Therefore it is recommended that FrieslandCampina should try to become the strongest and most sustainable dairy company in the regions where it is already active. expand its activities to the emerging market Brazil.

Toon meer
OrganisatieDe Haagse Hogeschool
OpleidingESC Europese Studies / European Studies
AfdelingAcademie voor European Studies & Communication
PartnersCampinaFriesland (melkprodukten)
Jaar2013
TypeBachelor
TaalEngels

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