Brazil. Market Conditions. Market Barriers. Competitive Landscape. Booking. Airlift MARKET BLUEPRINT Strategic Planning Foundation
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1 Brazil MARKET BLUEPRINT Strategic Planning Foundation Market Conditions BRAZIL GDP ANNUAL GROWTH RATE Percent Change in Gross Domestic Product 1 Brazilian Real Equals 0.32 U.S. DOLLAR Brazilian Real U.S. Dollar GDP Annual Growth Rate in Brazil is expected to increase to 0.10% in the second quarter of 2015, from -0.20% in the fourth quarter of In 2016, the GDP Annual Growth Rate is expected to decrease to -0.56%. Source: Tradingeconomics.com, IBGE The real continues to decline U.S. luxury spending from Brazil was up 15% in 2014 U.S. still considered a value as the cost of goods and services in Brazil is very high Competitive Landscape U.S. New York, Florida, Las Vegas Europe Italy, France, Germany, Portugal, U.K. Market Barriers Limited direct lift Brand not top-of-mind Lack of awareness outside gateway destinations U.S. dollar up, making competing countries more attractive, especially South American countries Airlift 10 weekly nonstop flights 2,612 weekly seats Strong one-stop connections to California via Texas and Florida Booking Planning timeframe: 3 4 months in advance Booking timeframe: September November for December February vacation period; March May for July vacation period 40%+ of to California booked through traditional tour operators and agencies, with the remainder booked through OTAs and directly with airlines Over 50 tour operators package California
2 Travel Profile (TOTAL) $502M 2014 P Visitor Spending 10% 2013 California Market Share 231K 2014 P California Visits 249K 2014 F Visits +8% 302K 2018 F Visits +31% 727M 2018 F Spending Sources: U.S. Department of Commerce; Tourism Economics Leisure Traveler Profile (78% OF TOTAL) 89% Vacation/Holiday 82% Hotel/Motel 9.3 California Nights Average Length of Stay $2.2K Per Trip 3.5 Destinations Visited 2.1 Party Size 17% Travel with Children Sources: U.S. Department of Commerce; CIC Research, Inc. (U.S. INDEX) (139) (108) (76) (113) (116) (131) (140) Target Profile PRIMARY TARGET Top 1/3 income households A/B social class Passionate about or regularly (ed internationally in the past year and plan to abroad in the next year) DEMOGRAPHICS 61% Adults $100K Average HHI 57% Have a bachelor s degree 67% Work full time 50% Children in household Source: Carat CCS Consumer Insights Best opportunities are Brazilians who are looking for new experiences and more likely to have previously visited New York and Florida Brazilians are status-oriented and feel that California is an aspirational, brag-worthy destination Safety and ease of (unlike their home country) is a key motivator Brazilians index above average on all pillars, with entertainment and culinary having the greatest appeal Brazilian suppliers offers payment plans, no interest and low monthly payments to consumers Travel suppliers, airlines and operators are offering special fares and rates in the challenging economic times to encourage and keep it top-of-mind Reduced consumer spending overall with a growing aversion to debt: Travel and experience spending is up 66% intend to in the next two years Brand Foundation CALIFORNIA ATTITUDE California s lifestyle sets the destination apart Brazilians imagine the amazing lifestyle, an overall good life and a dream place to be ABUNDANCE California delivers on abundance: it has everything Brand Platform + Platform Localization + SONHE ALTO (Dream High) SONHE CALIFORNIA (Dream California)
3 Brazil Media Flow Chart MEDIA JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE EST. IMPS (A18+) CLIENT COST BRAND ADVERTISING VIDEO ONLINE TV 12,500,000 $200,000 DIGITAL (NATIONAL) Rich Media, Banners, Mobile, Tablet PASSION-BASED TARGETING 20,000,000 $825,000 Social Media FACEBOOK, TWITTER, INSTAGRAM 3,436,000 $50,000 SEM GOOGLE 16,430,000 $150,000 MULTI CHANNEL/ BUSA Opportunity Brand Target Campaign Initiatives TBD $175,000 Total Brand Advertising 52,366,000 $1,400,000 OPPORTUNISTIC OPPORTUNISTIC Activations/ Promotions Total Opportunistic TBD $100,000 BRAZIL MEDIA BUDGET 52,366,000 $1,500,000 Brazil Planning Budget $1,500,000
4 Brazil Media Flow Chart
5 Brazil Owned Content Flow Chart JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE WEBSITE Content Refresh/Reorder Entry Page Image Refresh Curated & Opportunistic Content Content Addition Continual ingestion of new content to site Publications California Visitor s Guide - BR edition 2014/15 Visitor s Guide 25,000 printed - Digital version on website 2016/17 IVG - Spring launch - Print run TBD Road Trips - BR edition International Road Trips - Released March ,000 print run International Road Trips - BR edition - Print run TBD Newsletter Monthly E-Newsletter Single Subject E-newsletter Deals E-Newsletter Social Media Facebook Instagram YouTube Pinterest Twitter Global Event-Based Engagement Always on Facebook Engagement - Brazil Page Always on Instagram Engagement - Global Page Always on YouTube Engagement - Global Page Always on Pinterest Engagement - Global Page
6 Brazil Owned Content Flow Chart
7 Brazil Public Relations Flow Chart JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE 15/16 KEY PRIORITIES KEY TRENDS Establish ongoing group and individual trips programs for traditional media, digital, influencers & broadcast. 2. Leverage website launch and Digital Content. 3. Produce the 1st dedicated PR track of sales mission. 1. Luxury and lifestyle media are less impacted by the economic crisis. 2. Stories on budget are hot topics. 3. TV is still the most influential means of communications, while print media is the most reliable. 4. Digital influencers are gaining visibility. 5. Growth of video and entertainment online channels. 6. Hybrid media in Brazil is on the rise. Media Content Pitches, newsletters & press releases. Pitches; What s New in CA Newsletter; Dream Big on a Budget Pitches; Trend Report; Top 10 Music Festivals; Road Trips Pitches; Insider Tips Round-Up; Seasonal Top 10; New Ways to Experience Theme Parks Weekly media pitches; Newsletter What s new in California; List Celebrity Recommendations; Release California Luxury Pitches; Trend Report; Top Bike Tours; Tech Tourism Pitches; Seasonal Top 10; Super Bowl 50 Pitches; What s New in CA; Major Festivals & Events Round-Up Pitches; Trend Report; Celebrity Recommendations; National Parks Pitches; Insider Tips Round- Up; Seasonal Top 10; Set Jetting Pitches; What s New in CA; Fresh Take on Hwy 1 Road Trip Pitches; Trend Report; 10 Only in CA Outdoor Adventures Pitches; Celeb Recommendations; Seasonal Top 10; You ve Done That, Now Try This California B-Sides Media Missions PR track of sales & media mission. Multi-day programs designed to connect industry partners with top media influencers in-market. PR Track Media Miss ion (Sao Paulo & Rio de Janeiro) Forum Panrotas (Trade, Business & Consumer Press Opportunities) Media Calls & Events One-on-one meetings with key media targets to generate future coverage. Stand alone events to promote California to key media. Bimonthly Media Calls with Key Media in SP; Weekly Phone Pitches Individual Press Tours Travel, lifestyle & news media & influencers visiting California on assignment for earned media placements based on experiences showcased. Five individual press tours Group Press Tours Thematic group press tours for media on assignment. Could include a mix of traditional & digital influencers. Luxury Group Press Tour: Santa Catalina, Santa Barbara, Yosemite and SFO (L Officiel Voyage, Top Destinos, Glamurama) Group Press Trip: Outdoors Focus Digital Influencer Programs Activities geared exclusively to the influencer segment. Outdoor & Entertainment Influencer Visit: Road Trip to National Parks (ViajenaViagem) Luxury & Culinary Influencer Visit: Lake Tahoe, Santa Barbara, SFO (#CamieVic) Family Influencer Visit: Motor Home to South and Central Coast (AJanelaLaranja) Entertainment Influencer Visit: Coachella Festival in Palm Springs and LA (@popload) Broadcast Productions Mass-reach broadcast productions on locations in California. Outdoor Adventure/ National Parks: Globo Repórter On Location in CA Anota Aí & Presenter Titi Muller On Location in CA Promotions & PR Stunts PR stunt to launch/leverage consumer brand advertising activity or leverage a third party promotional platform. PR Stunt Activity: Street Art Tour with David Garibaldi and Influencers in SP
8 Brazil Public Relations Flow Chart
9 Brazil Trade Flow Chart JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE 15/16 KEY PRIORITIES Educate Tour Operators and Travel Agents, increase the awareness of the destination, develop new products KEY TRENDS FIT, discount rates and deals (due to exchange rate increase), luxury (segment less affected by rising Dollar), holidays vacation TOP 10 TOUR OPERATORS CVC, Tam Viagens, Flytour, Nascimento, Agaxtur, MMT Gap Net, RCA, Queensberry, Designer, Flot Product development/planning (Operators) Booking Window (Consumers) Travel Period (Consumers) Travel Trade Tools Travel Trade Portal, Online Training Program, Newsletters incentives incentives incentives incentives incentives incentives incentives incentives incentives incentives incentives incentives and award ceremony Group Product Manager FAMs California Advisory Board engagement/experiences with top tier trade executives; Global FAMs by five marketing pillars; Receptive Operator FAMs; Product Manager FAMs Luxury / culinary San Francisco, Carmel, Big Sur: Prime Tour, Matueté, Sete Mares, Interpoint Family / Outdoor / Entertainment LA, Big Bear Lake and San Diego: CVC, Flytour, MMT Gap Net, Agaxtur, Nascimento Agent Training or Mega-FAMs Mega-FAMs with multiple itineraries based on pillar in California at the same time. " Family/Entertainment LA, Orange County, San Diego: incentive sales campaign CVC top sellers Trade Shows Increase California visibility at in-market trade shows Encontro Ancoradouro: for Ancoradouro's top agencies WTMLA: 1:1 meetings with key TOs; session for Tas; wine reception IPW: 1:1 meetings with key Brazilian Tos Sales Missions Sales Missions held every months In SP and RJ: Agents session; B2B sessions; VIP reception with David Garibaldi Training Engaging platforms with industry inclusion at low investment levels (Club California sessions); Incentives for Online Training Program completion s; s; mega Training Rio de Janeiro s; Club California Training s; Mega Training São Paulo s; s; s; Mega Training Campinas/Ribeirão Preto s; Club California Training s; Mega Training Curitiba/ Porto Alegre s; s; Trade Co-Ops Targeted co-ops with operators to focus on increased awareness and visitation along with product development; New airlift support, Non-endemic partnerships/ sponsorships through trade RFP to select TO LUXURY Co-op Program RFP to select TO ADVENTURE Co-op Program
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