Havaianas Business Model

613 Words Oct 24th, 2015 3 Pages
Summary

Havaianas is a Brazilian brand of rubber flip-flops and has 80% of the Brazilian flip flop market. Havainas distribute approximately 162 million sandals annually, of which 20% goes to more than 80 countries of the five continents. In addition, Havaianas can be found in more than 200 thousands points of sale (only 1,700 in the United States) and exports reach to 30 million pairs. Last year sales reached U$ 800 million worldwide. The investment in the marketing of the brand is 12% of 13$ of the net income and has kept Havaianas in the grow trajectory. After 51 years and many models later, this simple rubber flip flop has conquered the foot of the Hollywood stars, international magazines and main fashion stores around the world.
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In the market, the main success of the brand is due to the mass production of the product that meets the consumer’s necessity and desire for all classes.

Strategy

• The segmentation of the market is its selection of the market target. In addition to having a “strong” brand, the main strategy of a market is how it’s divided. Markets can be divided into geographic changes, age, sex, and culture; Havaianas successfully meets those markets in specific ways.
• Havaianas are frequently introducing and replacing new models and color to the market in order to keep up with the consumer’s demand. It also counts with its own publicity company, which is constantly working to make the introduction smooth as possible.
• In 1997, The Department of Foreign Sales was established with the goal to increase the sales abroad. The company deeply invested on events and promotions all over the world. This top brand’s main promotion is thru the media with non-stop commercials of celebrities giving testimonies about the quality of the product and their satisfaction.

Questions for Management

1. How are you planning to increase the sales abroad?
2. With the advance of technology, other companies will soon be able to compete in the market with a similar quality and price. What is your strategy to defeat them?
3. Are you planning to invest in green

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