Valter Klug gives an interview to top Brazilian newspaper
We've got some amazing news! Estadão, the largest newspaper in Brazil (it's like that country's The New York Times for comparison purposes) has just published an article about internationalization and marketing based on an interview given by our founder and CEO Valter Klug (who was quoted throughout the article) to the renowned journalist Paulo Silvestre! It was also highlighted on Estadão's homepage, reaching millions of people per day!
We are so proud, happy, and grateful for the opportunity and visibility!
Here is the translated version of the article (the original is available here):
Internationalizing a brand brings benefits but requires caution
By Paulo Fernando Silvestre Jr.
Everyone knows what panettone is, right? That may be true in Brazil, but not in the United States, where this traditional cake is not part of the Christmas menu. Therefore, when Bauducco decided to enter the US market, it couldn't simply advertise its product: it needed to explain it to the population.
This is a typical challenge in the process of brand internationalization. In a globalized world, many companies try to replicate their success in other markets. However, formulas that work well in one country may not work in others.
"In 2014, nobody knew what panettone was in the United States, so we had to develop the category, make it known and appeal to Americans," explains Valter Klug, CEO of Samba Rock agency, specializing in international brand expansion. "It was a much bigger challenge than simply communicating a brand in another market."
Operating in other countries can bring many benefits, such as opening new markets for the brand, reducing dependence on a single market, protecting the business from local economic instability, and gaining reputation and experience. Furthermore, pioneering a category in a new market can be attractive, as the brand can dominate it for a while, consolidating its image and selling without competition.
However, internationalization is not for everyone. Even an established and successful brand in its home country needs planning to enter a new market. It's a long-term investment, not suitable for adventurers.
"The vast majority of brands that go to the United States end up breaking in the first year because they didn't plan properly or because there was no market for them," explains Klug. "Sometimes you even have to adapt your product."
Aligning expectations is also essential, as managers need to understand that they will be virtually startups in a new market. Maturation of the business and return on initial investment may take months or even years.
Having someone with in-depth knowledge of the new market is crucial in the internationalization process. Working together with the company's team, these professionals can make adjustments to offers, creating a consistent global communication strategy. Being aware of local peculiarities can make the difference between success and failure.
The American market is often the preferred choice for expansion due to its size, opportunities, lower taxes, and less bureaucracy. However, personal experience as a tourist is not enough for business success. This reinforces the importance of support from professionals experienced in local peculiarities.
Another example of cultural differences is the use of WhatsApp for customer relationships. Widely used in Brazil, the messaging app is less popular in the US, where customers prefer Facebook Messenger or even SMS. Not considering this difference can lead to serious relationship problems with the new audience.
"It's not enough to have a good product; you need to know the market, study it, and create a business plan to support the project's viability," concludes Klug. "It's not just about translating what works in Brazil."