Business Report for HelloFresh Brazil Expansion
Since HelloFresh has not to launch Brazil yet and there are already competitors in the market, so the marketing communication objectives for the company are increasing the customer awareness of HelloFresh first and improve brand image among the target customer group (Hollensen 2017). Moreover, as there are still few competitors in Brazil, it is easier to extend the HelloFresh business range at this moment.
Since the family is highly valued by Brazilian, emphasise family and happiness of cooking together are suggested. Furthermore, considering the target customer, it is necessary to deliver messages of saving times and a healthy diet.
1.3.Marketing Communication Tools
Lowe and Kenyon (2015) state that online communications are going to replace offline communication. For instance, offline advertisement such as TV, it is hard to control the advertisements are able to expose to specific customer segments. On the other hand, online advertisement is easier to target potential customer precisely. For example, through social media. Thus, choosing online advertising as one of the communication tools is suggested. Sales promotions are also effective methods to stimulate the buyer at the point of sale. The company need to apply this properly to extend their business faster.
Choosing a variety of channels and frequently advertising is not only could help the company to reinforce the message, but also could deliberately enhance the chance of gaining potential customer (Schiffbauer 2017). Therefore, the company need to select several media channels to achieve its marketing objectives. However, most of the media channels are at a very high cost, such as TV advertising or sponsorship. In order to reduce cost and achieve a more effective result, it is better to choose social media as one of the main marketing methods.
As mentioned in part three, using social media is very common in Brazil especially WhatsApp and Facebook. Halls (2016) indicates that the “Influencer Marketing Goldrush” trend is about to increase. Influencer marketing is an important marketing measure on Facebook. Companies using this method by sponsoring influencer to create posts or videos the aim is to market products or services (Shepard 2018).
The following section is about marketing mix strategy for Brazil market.
2. Strategy for HelloFresh in Brazil
Meal-kit service is a new industry, for a company already a success in this market for nine years, most of their strategies must be common and effective. However, when entering a new country, there are many aspects are different such as culture, living standard, purchasing power etcetera. Thus, it is necessary to change some marketing strategies in order to success in Brazil.
Pricing should consider customers' ability to pay (Hollensen 2017). Since the average wage of this country is only 670 U.S. dollars per month, the price of the product should also at an affordable level for most Brazilian. Moreover, with the lower salary standard, the cost of staff will also decrease. Therefore, decreasing the price in Brazil is not very difficult. Nevertheless, target customers are from upper-middle class that valued health and time more, a very low price might not be a vital attractive point, it may cause customers to doubt product quality and harm brand image (Hollensen 2017).
Cheftime, one of the competitors in Brazil set each meal price for 24.90 Brazilian Reals (around 4.87 British Pounds) which also will be cheaper if the customer order more at once (Cheftime n.d.). As we could see, the price of Cheftime in Brazil only lowers 0.13 British Pound than HelloFresh price in the UK (5 British Pounds per meal. Make the price lower than this competitor for the company with an 8 years global meal-kit experience will not be hard.
Overall, the set price for 19.9 Brazilian Reals (around 3.9 British Pounds) each meal is suggested.
With the specific rainy season during Brazil summer, it is important to enhance the waterproof function for the meal box. As for another process aspect, using old HelloFresh standard should be adequate and efficient.
According to appendix 4, online sales growth dramatically on Cyber Monday which means this is the best opportunity to increase sales and gain some new customers. The company has to pay attention to this period and make an offer to customers. Since this is a new brand for Brazilian, new customer discount will be necessary. For instance, a 50% discount for new customers could arise the intention of trying the new product and service. Provide special service for the loyal customer is also important, it could reduce the risk of losing the loyal customer and bringing new loyal customer (Butscher 2002). Create an electronic membership card with several different levels. For example, using HelloFresh for more than one year will level-up the card and gaining an extra 5% discount and special food on the birthday.
Because of the different dining habit of Brazilian, it is necessary to provide fruit and juice to adapt to the Brazilian's taste. By doing so, it may attract more customers to increase sales. It is important to ensure the food quality as in other countries, with reliable suppliers to provide organic ingredients are indispensable to attract the target customers. To compete with local competitors, recruiting a local chef to develop recipes more suitable for Brazilian is important.