Competitors Analysis

Brazil holds about 12% of the global fresh water resources. However, due to uneven distribution
of water resources in the country, south east and north east regions of Brazil, which hold a large
sharterms of population as well as GDP, have been experiencing shortage in supply of clean
drinking water. Moreover, changing climatic conditions and increasing temperature lead to
evaporation of available water, thereby reducing reservoir water levels in the country.

Growing water consumption, poor water quality, rising health awareness and increasing
urbanization are the major factors driving water purifiers market in the country. Moreover,
contamination of water supplied by municipalities due to pipeline leakages or other issues
associated with water transportation network is another factor boosting the demand for water
purifiers

On account of uneven distribution of water resources in the country, south east and north east
regions of Brazil have been experiencing shortage in supply of clean drinking water.
Consequently, the adoption of water purifiers in the country has increased significantly over the
last five years and this trend is expected to continue through 2020., said Mr. Karan Chechi,
Research Director with TechSci Research a research based global management consulting firm.

As an answer to the demand, a large number of companies entered the market. In order to best
analyze the competition we face in Brazil, we classify the companies into two major categories:
direct and indirect competitors.
 Type of
Company Product
competitor

TETRA - Potable Water Filters

Omnipure water filter series

Direct

WaterMax

Crystal Quest - Model CQE-CT-00109 -

SMART Triple Countertop Water Filter
System

WesTech Trident - Model HSC

Indirect TEKLEEN - Model ABW Series - Water

Filters
 The world water purifier market is highly competitive due to the presence of
numerous players. Market players are constantly indulged in implementing innovative
marketing strategies such as free demo, free installation charges and others to gain
competitive advantage and differentiate their product offerings. Companies have
heavily invested in improving their services, promoting their brands, streamlining
distribution channels, and collaborating with major players to expand their market
presence. As the market has witnessed robust growth in the past few years, new
players are expected to enter the water purifier segment. Rigorous marketing and
positioning strategies have been adopted by companies to build brand image and
attract new customers. Increasing competition amongst the key players would attract
more investments in the market in coming years.

Increasing demand of substitutes

Packaged drinking water has gained prominence among customers due to its ease of availability
and cost-effectiveness. Moreover, growing income levels, increasing health concerns and
changing customers taste & preference is driving the demand of packaged drinking water
market. The key players in this industry are Bisleri, PepsiCo, Coca Cola, Nestle Waters, and
others.
 Consumer Description
Cultural features

The Brazilian culture is one of the worlds most varied and diverse. This is due to its being a
melting pot of nationalities, as a result of centuries of European domination as well as slavery,
which brought hordes of African migrants across Brazils borders to live in and influence the
local cultures with their ancient customs and ideas. The European settlers also brought ideas,
innovations and belief systems with them, shaping the local societies significantly. All of these
different influences have meant that the modern-day Brazilian culture is unique and very
complex.

Brazil reflects a society that believes hierarchy should be respected and inequalities amongst
people are acceptable. The different distribution of power justifies the fact that power holders
have more benefits than the less powerful in society. In Brazil it is important to show respect to
the elderly (and children take care for their elderly parents). In companies there is one boss who
takes complete responsibility. Status symbols of power are very important in order to indicate
social position and communicate the respect that could be shown.
From birth onwards are integrated into strong, cohesive groups (especially represented by the
extended family; including uncles, aunts, grandparents and cousins) which continues protecting
its members in exchange for loyalty. This is an important aspect in the working environment too,
where for instance an older and powerful member of a family is expected to help a younger
nephew to be hired for a job in his own company. In business it is important to build up a long
term relationship: a meeting usually starts with general conversations in order to get to know
each other before doing business. The preferred communication style is context-rich, so people
will often speak profusely and write in an elaborate fashion.

Like the majority of Latin American countries, the Brazilian culture shows a strong need for
rules and elaborate legal systems in order to structure life. The individuals need to obey these
laws, however, is weak. If rules however cannot be kept, additional rules are dictated. In Brazil,
as in all high Uncertainty Avoidance societies, bureaucracy, laws and rules are very important to
make the world a safer place to live in. Brazilians need to have good and relaxing moments in
their everyday life, chatting with colleagues, enjoying a long meal or dancing with guests and
friends. Due to their high score in this dimension Brazilians are very passionate and
demonstrative people: emotions are easily shown in their body language.

People in societies classified as indulgent generally exhibit a willingness to realize their impulses
and desires with regard to enjoying life and having fun. They possess a positive attitude and
have a tendency towards optimism.

Approximately 80% of the population ascribes to the Roman Catholic faith. This is due to the
intense Portuguese occupation of centuries ago. These European settlers taught the indigenous
tribes Catholicism, built churches and established traditions and customs that originated in this
church.

Taking into account all these factors we see that Brazilians, as a nation, focus much importance
on the family structure. Our product should concentrate on serving large families and should
emphasis the values that are entrenched within that institution. As for business partners, it is
crucial to form trustworthy and long lasting relationships.

Political environment
Brazil is the fifth largest country in the world by landmass and the eighth largest economy by
GDP purchasing power parity. It also constitutes 42 percent of the landmass in the Latin
American continent and its largest economy. Brazil has, in the recent past, acted as a driving
force for the regions political and economic progress in the International arena.
Brazil's economic and social progress between 2003 and 2014 lifted 29 million people out of
poverty and inequality dropped significantly (the Gini coefficient fell by 6.6 percentage points in
the same period, from 58.1 down to 51.5). The income level of the poorest 40% of the
population rose, on average, 7.1% (in real terms) between 2003 and 2014, compared to a 4.4%
income growth for the population as a whole. However, the rate of reduction of poverty and
inequality appears to have stagnated since 2015.

Brazil played a key role in formulating the climate framework for the 2015 COP 21 and has
ratified the Paris Agreement. The country has once again demonstrated its leadership role in
international negotiations on climate change, showcased by significant contributions to climate
change mitigation within its borders. Brazil has voluntarily committed to reducing its
greenhouse gas emissions between 36.1% and 38.9% by 2020 - and it will likely reach that
objective sooner.

However, presently, Brazil is in the middle of the greatest economic recession it has suffered in
the past thirty years. The Brazilian recession is the result of multiple factors; the slowdown of
Chinese economy is one of them. China, United States, Netherlands, Germany and Argentina
are responsible for 45 percent of Brazilian exports. Brazilian economic growth was
fundamentally fuelled by the expanding Chinese appetite for Brazilian commodities. Between
2010 and 2013, Brazilian exports to China rose from $ 20 billion USD to $ 45 billion USD. Brazil
supplied oil, soy bean and iron ore to China and imported electronics and capital goods.
Brazilian companies like Petrobras and airplane manufacturer Embrar also benefitted from this
trade. With the slowdown in the Chinese economy, their demand for Brazilian goods declined
which affected the Brazilian economy directly. The decline in the value of Yuan resulted in
reduced profit margins for Brazilian goods. During 2013-2015 Brazil endured a loss of $12 billion
USD in foreign sales. The declining oil prices also added to the economic slowdown of the
country.

Language
Language is one of the strongest elements of Brazil's national unity. Portuguese is spoken by
nearly 100 percent of the population. The only exceptions are some members of Amerindian
groups and pockets of immigrants, primarily from Japan and South Korea, who have not yet
learned Portuguese. The principal families of Indian languages are Tup, Arawak, Carib, and G.

There is about as much difference between the Portuguese spoken in Brazil and that spoken in
Portugal as between the English spoken in the United States and that spoken in the United
Kingdom. Within Brazil, there are no dialects of Portuguese, but only moderate regional
variation in accent, vocabulary, and use of personal nouns, pronouns, and verb conjugations.
Variations tend to diminish as a result of mass media, especially national television networks
that are viewed by the majority of Brazilians.

Taking these facts into account, the presentation of our product must be adapted to
English/Portuguese, for us to successfully reach the consumers.