Havaianas Case Study

Topics: Brand, Marketing, Advertising Pages: 5 (2866 words) Published: October 23, 2014

PART 1
1.0Target Segment of HavaianasTargeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The company, thus, then identifies different ways to segment the market and develops profiles of the resulting market segments (Kotler & Armstrong 2012). Based on this case study, Havaianas segments its customers by demographics, which is to divide the market into segments based on variables such as age, gender and income, as well as psychographics, which is to divide the market by social class, lifestyle and personality. In terms of demographics, as mentioned in the case study, Havaianas started off as basics for the poor in Brazil. It was almost synonymous with poverty, as quoted by Porto in the article (Associated Press 2012). This goes to show that the target market was indeed segmented based on income levels. As time passed and Havaianas started rebranding itself, it started attracting the middle- and upper-class Brazilians who initially did not wear them as well. Despite the adoption by the elite, as quoted by the case study, Havaianas did not lose their original customers at the bottom of Brazil’s class hierarchy, but instead, continue to appeal to them. As income levels are directly related to social class, this goes to show how Havaianas segment by psychographics as well. With the rebranding of the slippers, TV stars start donning it, influencing the poor people who tend to save up for the different models that are a little pricier than the normal models. This is also affected by the personality variable, as Havaianas appeal to the poor with its basic every-day use, and to the elite with their tendency to be fashionable with the different designs and colors. 1.1How Havaianas Influences its Target Segment’s Consumer Decision Process Stage The actual purchase decision is part of a much larger buying process – the buying process starts long before the actual purchase and continues long after, hence the pre-purchase and post-purchase stages (Kotler & Armstrong 2012). Need recognition, as part of the pre-purchase stage, happens to be one of the most important stages of this process. Need recognition is where the consumer recognizes a problem or need. This need can be triggered by internal stimuli when one of the person’s normal needs rises to a level high enough to become a drive. This need can also be triggered by external stimuli, for instance, and advertisement that may influence the decision of the consumer in buying the product (Kotler & Armstrong 2012). Apart from need recognition, there is also alternative evaluation, that is, how the consumer processes information to arrive at brand choices. The consumer arrives at attitudes toward different brands through some evaluation procedure. How consumers go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. In some cases, some consumers use logical thinking while at other times, they do little or no evaluating and buy on impulse (Kotler & Armstrong 2012). These pre-purchase decisions can be influenced by both the internal and external components of information search. The internal search is derived from the consumer’s memory and past experiences. In this case, the consumer scans his own memory bank to assemble information about different product alternatives. This, however, is usually supplemented with an external search, which is information obtained from advertisements, friends, or observations (Solomon 2013). In Havaianas’ case, the consumer’s past experience with the brand’s products would trigger the internal search. For instance, if the consumer had a pleasant experience with the quality of the brand’s products, he would immediately consider the...
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