Question

What should be Brasil Foods' goals for growth and what are your recommendations for achieving these goals both domestically and internationally? Consider the opportunities for growth as well as challenges/hurdles for growth.

Answer 1

Brasil foods (BRF- Brasil foods) is an already established brand with a good reputation backing it. So it is pretty different as to what exactly should be the growth goals for a well established brand. Various studies suggests that the future goals of BRF is to push up the sales, improve the margins and expand the market throughout the world, maybe use the wide population of South East Asia to propel the business. The recognizing of more sustainable business models is on the cards as well. Having mentioned that they are an established brand, BRF's future aim is to ingrain the customers with an idea that their brand should be the first choice, especially in the domestic market (i.e.Brazil and surroundings). As far as the pushing of sales to international territories is considered, I would recommend BRF to adopt sales and marketing practices which are very customary to their eating habits and culturally very inclined to the consumers. This can well induce market penetration in the initial stages in an international market.

If you have read till now, you would have certainly got a hang of what I'm trying to say here. A further analysis om the domestic markets has prompted BRF to consider some statistics which can be turned to their advantage with the already existing Logistical prowess and Human capital. As per a study, close to 30 Million people in Brazil might just move to ABC class in the next 3 years meaning, a greater sale potential. To add on a brownie point, the 'ready to eat' food category is already a hit wih the bachelors and childless couples who account for 27% consumption when combined.

As far as the challenges with international expansion is concerned, we need to consider the sustainability and mindful investments from BRF's perspective. To stand out in an International market, apart from trying to adapt to the countries' ethnicity, following sustainable practices is vital. Example of such practices can include focusing on human supply chain, adapting to climate change and promote sustainable consumption. Of course when we talk about International expansion, there is investment. But explicitly investing on Information Technology is the key in this era. This investment could improve the processing capacity, establishing SAP systems and many more.

So, these are the vital points that BRF must keep in mind for their growth goals ahead.

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