Posts Tagged ‘Brazil’

Now let’s go to Rio 2016

November 23, 2009

There is another fever in Rio these days, since it was selected as one of the exotic and exciting new Olympic venues.  Brazil will host Latin America’s first Olympic Games in 2016, and is already gearing up for investment spending of over US$50 billion on facilities and infrastructure between 2010 and 2016.

Here are some highlights from a recent US Commerce Service report:

SPORT FACILITIES

Although more than half of Rio 2016 venues are ready, since Rio hosted the 2007 Pan American Olympic Games, about 20 new facilities are to be built. They include:

  • An aquatic sports stadium with 18,000 seats with an estimated construction cost of US$40 million.
  • An Olympic Park to host gymnastics, cycling, handball, and other sports competitions with an estimated building cost of US$200 million.
  • An Olympic village of 32 buildings with 12 floors each and a capacity of over 17,000 beds estimated at US$450 million.
  • An Olympic Tennis Center with 16 courts (US$45 million).
  • An arena in Copacabana for beach volley (US$7 million).
  • A renovated rowing stadium at Rodrigo de Freitas Lagoon will cost approximately US$2 million.
  • The renovation of Maracanã Stadium (where the opening and closing Olympic ceremonies will be held as well as soccer games) will cost approximately US$400 million, and must be completed before 2014 to use in the 2014 Soccer World Cup.

INFRASTRUCTURE

The estimated investment in infrastructure is about US$15 billion, including US$5 billion in logistics upgrades at seaports and airports.

The main projects include:

  • the modernization and enlargement of the two International Airport terminals (increasing the airport’s capacity from 15 million passengers per year to 25 million),
  • Highway widening,
  • construction of “Olympic lanes”,
  • the Port of Rio area revitalization to include a new 30,000 square meter leisure area featuring bars, restaurants, an amphitheater, a multi-use space and parking,
  • port dredging,
  • construction of two new subway lines,
  • the creation of a Bus Rapid Transit (BRT) system,
  • housing projects (including low income housing) and
  • Water sanitation.

While details of the technology investments are not yet available, these lists give an idea of the magnitude of the build-out, and an inkling of the opportunity for technology vendors.

The report also provides some recommendations for those companies interested in the bidding processes.  One note, government procurement processes require foreign companies to have a local representative to participate, at least legally or commercially.

MARKET ENTRY

  • Note that the Brazilian Constitution provides that all governmental purchases, at Federal, State and Municipal levels should be contracted through public tenders.  This is regulated by the Brazilian Bid Law (Law # 8,666, introduced in 1993).  Sales to the private sector are not subject to this Law.
  • Although the law forbids preferential treatment to Brazilian firms over foreign companies bidding for new projects, when local and foreign competitors offer equivalent conditions in terms of price, quality and delivery time, the Law ensures preference for: goods produced or supplied by a Brazilian firm of national capital; locally produced; and produced or supplied by Brazilian firms.
  • As most of the sporting facilities and urban infrastructure-related equipment and services will be acquired by governmental entities under Law 8,666 rules, note that foreign companies must have a local representative (commercial and legal) to participate in Brazilian government procurement tenders.

And, not to be forgotten is the upcoming FIF World Cup.  An upcoming virtual trade mission sponsored by the American Public Transportation Association will sponsor a series of webinars on investment opportunities.  The next is the series highlights preparations and opportunities around the upcoming FIFA World Cup in Brazil: FIFA World Cup in 2014 Creates New Opportunities in Brazil.

In Search of Catalyzing Events

November 15, 2009

Certain events serve as wake-up calls. In the case of some, the anticipation of these events is enough to spark action or change behavior – maybe even spur technology investment. As technology marketers, we need to recognize the opportunity that these events provide. Obviously, we also need to be ready to exploit them.

Which events could be catalyzing events from a technology purchasing decision? It could be as simple as the approach of a new millennium: Y2K fears spurred major investment. New regulation is an easy one to identify: IT buyers scrambled to upgrade security and implement data archiving and discovery software after the passage of the EU Data Protection Act and subsequent country-level legislation, as was also the case following passage of HIPAA, SOX, Basel II and others. The events of 9/11 certainly spurred concerns about cyber and other types of security. More recently, following last week’s blackouts in Brazil, leaders issued new commitments to energy reform. Natural disaster, crime waves and other negative events also catalyze technology investments.

sochi2014But, I’d like to focus on a few that we can anticipate. The Olympics and the FIFA World Cup are two that come to mind. South Africa will host the World Cup in 2010, and has already spent billions on new stadiums, renovations to existing stadiums and upgrades to their communications and transportation networks. Next up for the World Cup is Brazil as the host in 2014.  Two upcoming Olympics venues are also ripe for technology and infrastructure investment: Brazil will host the 2016 Olympic Games in Rio and Russia has already broken ground in preparation for the 2014 Olympic Games in Sochi.  For 2014, an estimated $580 million will be spent on construction and modernization of telecommunications in the region.

They will have large shoes – and Olympic sized budgets – to fill following the Chinese spending spree for the 2008 Olympics. The $40+ billion infrastructure budget included line items like 1 million video cameras as part of the $6.5 billion security budget for Beijing and $300 million for other Olympic venues.  Plus the media coverage of the actual sporting events.  That’s a lot of video to capture, transmit, and store.  US viewers alone downloaded 1.7 million video streams of US relay teams win against France.

In London, which is hosting the 2012 Summer Games, the budget is now just shy of $15 billion. That’s roughly quadruple projections from four years ago. Rio’s projected cost – at $14.4 billion – was the highest budget of any of the four cities competing for the 2016 summer games.

Bottom line: Be on the lookout for events that catalyze technology investments. Olympic events typically have Olympic sized technology budgets.

Reaching real tech buyers in emerging markets virtually. Really!

October 14, 2009

Not all technology buyers in emerging markets are accessing the internet from mobile phones or dial-up connections.  In fact, many places in countries considered “emerging markets” are rapidly resembling more mature markets, in income levels and especially in mobility, internet access, and now broadband penetration.  Shanghai, for one, is probably better connected than some cities in the middle of the US.  What does that mean for technology marketers?  It means that they can leverage their complete toolbox of marketing tools to reach those audiences — and increasingly they are doing just that.

One tool that is rapidly entering the mainstream is the use of virtual events to connect with audiences far andvirtualevents_emergingmkts wide.  In Forrester’s Business Data Services Global Technology Adoption Survey, IT decision-makers in emerging markets report greater use of virtual events to inform purchasing decisions than their mature market counterparts — 42% in emerging and 37% in mature markets.  When compared to physical events, buyers in some countries — Chile, Mexico and  Vietnam — participate more in virtual events (see figure).  And, tech marketers are paying attention.  One of EMC’s virtual launch events attracted almost 8,000 attendees from over 80 countries.  And, you don’t have to be big to have that success.  Quest Software’s 2008 Quest Connect event attracted almost 1500 attendees from 20 countries.

Stay tuned for some tips on how to plan and execute a successful global virtual event.  And, in the meantime, take a look at my recent Forrester report, “Reach Real Global B2B Tech Audiences With Virtual Events: New Tools And Best Practices For B2B Marketing Beyond Borders.” And, attend my upcoming Forrester Teleconference, “Reach Real Global Audiences With Virtual Events,” on Monday, October 19, 2009, 1:00 p.m.-2:00 p.m. Eastern time (18:00-19:00 UK time).