Smart Recommendations

Question: Write report on howIndian footwear brand Relaxo can penetrate into the Brazilian footwear industry. Answer: 1. Summary The report details the various options through which the Indian footwear brand Relaxo can penetrate into the Brazilian footwear industry. The company has a competitive edge with its branding, high quality footwear, reasonable pricing and efficient marketing strategies (Mukherjee and Das, 2014). However, to enter a new geographical location, it is key to understand all possible modes of business in the country and how well each of this would work. The report explores through choices such as establishing an agency in Brazil, directly entering the market, trying to set up a joint venture with a well-established local company and making use of their existing network, acquiring a substantial footwear company that is local to Brazil. Each of these options is considered in the report and a detailed explanation of the pros and cons of choosing a method of penetration is discussed along with the implementation method. The concept of taxation is also taken into consideration, to understand how the same is affects the various choices. 2. SmartRecommendations 2.1 Specific The Goal in this case is extremely specific. It is to introduce Relaxo footwear to the Brazilian footwear industry. The requirement here is to globalize the company in the untouched market of Brazil. The company has accumulated a tremendous success in India and hence would like to expand into Brazil, as the developing population of Brazil also prefer inexpensive quality footwear. Collaborating with a local company to enter into the market would be a beneficial idea for Relaxo (Georgiev, 2010). 2.2 Measurable The collaboration of Relaxo with a local company fulfills reasons such as globalization and increase in revenue. In India, Relaxo has grown up to be a million dollar company in a short span. Though the same is not expected in a new geography, the company aims to sell at least hundred thousand footwear pieces in its first year of collaboration making a profit close to 1 million dollars through appropriate marketing strategies. 2.3 Achievable The goal to penetrate a new geography has already been accomplished by several companies in the footwear industry or otherwise (Doraszelski, 2014). These companies can be a guidance to Relaxo in understanding the marketing strategies to be adopted to achieve its goal. 2.4 Result-oriented With the advancement in transportation and technology, the current market is in the best condition to globalize (Lane, 2013). The idea is worthwhile when the right strategies are applied and a proper local company is chosen to collaborate with 2.5 Time-bound Everything takes time and hence Relaxo has to be patient to become famous in Brazil. Even though the company provided quality and cheap footwear, it takes significant time to overcome the already established brands. The company may require at least six months to be a recognizable brand and two years to ace the market if all the other conditions remain favorable. 3. References Doraszelski, U., Lewis, G. and Pakes, A., 2014. Just starting out: Learning and price competition in a new market. Working paper, Harvard University. Georgiev, V. (2010). Modeling Defense Acquisition Strategy. Connections: The Quarterly Journal, 9(4), pp.53-68. Lane, P.R., 2013. Financial globalisation and the crisis. Open Economies Review, 24(3), pp.555-580. Mukherjee, S. and Das, P. (2014). Criteria for customer agglomeration for a new footwear retail: a case study of a regional footwear brand in India.