Marketing Plan for Forever 21

4451 Words Feb 25th, 2013 18 Pages
MARKETING PLAN
‘FOREVER 21’ IN BRAZIL

Group 5: Melissa Soto, Zhang Yaou, Edward Kamdem, Li Xzangwen, Guru B Krishnan, Manuel Sanabria
EXECUTIVE SUMMARY
The company chosen is Forever 21, which is an American chain of clothing retailers with branches in major cities in the world that offers trendy clothing and accessories for young women, men, and teen girls at low prices. Since its creation these company has been constantly growing. It began with just one store and now it has more than 500 stores in several countries. However, there is still a lot of countries where the brand is unknown so there is still a great potential for expansion of the brand. One of those countries is Brazil, which is one of the top economies in the world in terms
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Moreover, the law system is improved much nowadays, so the legal environment can be more reliable.

Economic environment in Brazil

1 Overview

Brazil is the eighth world’s largest economy in terms of GDP (Gross Domestic Product), in 2012 its GDP growth rate was of only 1,3% but in 2010 was of 7,5% (The World Fact book). The inflation rate is 5.5% in 2012. However, it is predicted that the inflation for 2013 rise to 6% and that the economic growth for the same year will be around 3%, which is bad news for the Brazilian economy taking into account that most others emerging economies, including Latin America are doing much better (Wrong numbers, 2013). In 2012 Brazil’s economy in terms of GDP was considered larger than UK’s. Nevertheless, accordingly to the Economic Intelligence Unit (EIU) during this year the UK will overpass again Brazil in the GDP ranking, and it won’t be due to UK well performance but due to Brazil’s fall. (Costas, R., 2012). Despite this bad scenario for the Brazilian economy, the EIU forecast that the Brazilian economy would surpass UK’s economy again in 2016 when Brazil hosts the Olympic Games (Costas, R., 2012).

2 Economic situation and Forever 21

In spite of the temporarily slowdown in the Brazilian economy (which has had an astonishing growth over the last 10 years), the wages are continuing to rise and the unemployment

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