Case Study

Havaianas Brand Repositioning

Consumer Products
The Dominican Republic, 2018

- Business Plan Audit
- Market Research
- Market Segmentation
- Customer Buyer Personas
- Positioning
- Wholesale & Retail Marketing Strategy

Background & Challenge:
Havaianas is a brand that's already been in the local market for 15 years, not directly but with a wholesaler. Dominican Republic wholesaler did not correctly develop the brand to its fullest potential. Havaianas were looking for a new distributor. They needed help with new local wholesale and retail marketing strategy as well as attracting new customer segments.
Key customer is middle-class to high-class, goes to the beach or open spaces with their sandals, and are fashionable with them. Havaianas aimed to replace the word "Sandal" with "Havaianas".

Many Chinese brands have flooded the market with cheaply made products, with a population mostly made of lower-class citizens, this has really been an issue for the development of the brand.

The developed strategy contemplated two areas. The wholesale area and the retail area mainly trying to correctly segment the developed market. Baslin's focused on the main problem. Instead of developing the local strong brand, the current distributor limited himself to selling the basic cheap sandals. However, Havaianas needed a different direction. Baslin's solution focused on brand recognition strategy with a focus on offline marketing communications.

1. Secondary Market Research with the use of Audience Insights Software (supported by IBM Watson (AI platform).

Research input data:
- Age: 14 to 45 (national proportion)
- Gender: male and female
- Location: Santo Domingo and Santiago
- Socio-economical level: National proportion
- Have purchased FLIP-FLOPS in the last 12 months

2. Competitor Analysis with перу use of market intelligence software.

3. Marketing Strategy Development based on the research data and client't business plan.

Based on the research insights we proposed the following recommendations:
  1. Ensure availability and visibility at the “must” points of purchase (Shoe and Clothing Stores), and have activations and BTL activities at Department stores, boutiques and neighbourhood stores, as those are the places that are creating the additional volume and probably new users.
  2. Cross selling with complementary categories, such as Bikinis, Towels, sun care and exhibitions in non traditional locations at the POS, to capitalize the unexpected purchase.
  3. Reclaim the basics of the category of quality and comfort complemented with the differentials of variety of styles, colors, in order to build equity through being more meaningful and different.
  4. This work in the basics should be done with activations at POS with promoters, sponsors, materials, reminding about the resistance, endurance and good materials of our flip flops.
  5. Focus on consolidating Havaianas with women (strongest segment for Havaianas) with emotional connection through the value of the variety of our designs (flip-flop can be a fashion accessory), but being a brand that is trustworthy, thanks its quality and being comfortable.
  6. Strengthen the relationship with men (Havaianas is less considered and bought among men when compared with the female segment).
  7. Develop special models, designs, campaigns and activations focus on being more relevant for men.

Growth in monobrand net sales and wholesale net sales by 86.12% during the first year starting from zero (see chart below).

Source: The Dominican Republic Internal Sales Information and Demonstrações Financeiras Alpargatas S.A.

Sales proportion by channel: Department store (25%), Wholesale (25%), Supermarkets (30%), Other: surf shops, indie shops, etc (20%).

Marina Baslina - CEO, Marketing Strategist

Izzat Issa - Havaianas Representative in the Dominican Republic, Business Development Manager at ‎Grupo Phoenix World Trade Inc.
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