Brazilian Internship with Pet Wellness Company: Logistics, Consulting, and Response to the Trucker Strike Lorenzo Davon Hamilton The University of Florida BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 1 Table of Contents (For Internship project) I. Introduction a. Purpose of project i. Purpose ii. Organization collaborated iii. Note the concepts that will be used 1. Jeitinho and Malandragem b. Research question and relevance to Latin American Studies i. Research question ii. Who are my chairs iii. Relevance to Latin American Studies II. The Internship a. Describe the host agency b. Mission c. Employees and Volunteers d. Background history e. Internship goals and assignments f. Market overview g. Interdisciplinary research i. The strike and adaptation III. Reflections of Internship experience a. What was learned about the topic of the internship i. Learnings BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 2 b. What was learned about the approach of and challenges faced by the agency i. Challenges faced in individual efforts c. What was learned about the context of the internship IV. Conclusion a. Sum of what was learned b. How I was changed by experience c. Impact of internship on host agency d. Contributions to scholarship and/or society V. Bibliography VI. Acknowledgements BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 3 Introduction During the summer of 2018, I embarked on an internship for six weeks in southern Brazil with Docg, a Brazilian pet cosmetic company. Originally, I believed that I would be working with the CEO for negotiations. The plan was to work alongside Chinese investors or in logistics. The owner and I had spoken about the internship a few times before I arrived, but no final agreement about the internship had been reached. Since I had been studying the relationship between China and Brazil, the original plan was ideal for me, and when I arrived I assumed that I would be focusing on their relationship with Chinese investors. Unfortunately, that plan fell through. I ended up working mainly with the logistics personnel. The purpose of the internship changed once I arrived to one in which I would explore the processes of the supply chain portion of the company and to learn about the way Docg operates. The internship took place between May 18 and June 29, 2018, in Curitiba, Brazil. The internship was carried out at Docg’s headquarters. I would be asking myself, what exactly does a pet cosmetic company do? What do they sell? What services do they provide? In the “Internship” section, I will delve into the company and its products. During these six weeks at Docg, I increased my understanding of supply chain management as well as my knowledge of Brazilian business laws and culture. I was not well versed in American business laws beforehand, nor am I now, therefore I was unable to compare what I learned to America’s legal system. In this project, I aim to explore the Brazilian business culture instead of doing a comparative analysis between Brazilian and Western customs or laws. During my internship, I was able to experience a key moment in current Brazilian events- the trucker strike. I was able to see the effects of a strike within the supply chain during the entire six weeks, some of them within the first two weeks. Complications with delivering the customer’s BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 4 products began to arise as well as transporting the products to the warehouse. I believe this experience facilitated my understanding of the Brazilian economy and politics; Brazil’s laws seek to promote domestic commerce. Companies who want to import products or materials must be willing to pay higher taxes. In the case of Docg, they manufacture all of their products in Brazil. Docg has not expanded to other countries just yet, but they are exploring their options. In lieu of writing a thesis, I decided to do the internship. I hoped that it would provide a more immersive experience that would help me educationally and professionally. With this, I believe that the internship will provide a path for my long term goal of being a diplomat. Understanding international business environments and being able to communicate cross- culturally are pertinent for any diplomat. This project will review literature associated with the cultural aspects of Brazilian business and society. Also, it will take a closer look at the greve dos caminhoneiros that took place in Brazil. Concepts such as jeitinho and malendragem will also be included. In the literature section, I will go in more depth about the relation of these concepts through business and culture. Considering the topic and time of the internship, I have chosen to utilize the political economy as the framework that will guide my critical analysis. This corresponds with fits the research question of the project: How did the Brazilian company respond to unforeseen economic or political instability? The committee for this project is comprised of two professors from the University of Florida, Dr. Brian Gendreau and Dr. Mary Risner, from the University of Florida. Dr. Gendreau is an affiliate of the Center of Latin American Studies, and Dr. Risner is an Associate Director of the Center of Latin American Studies. As my supervisor, he has worked alongside me during the duration of my master’s program, and he provided suggestions to enhance my qualitative research BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 5 and understanding of the area economically, as well as politically. Dr. Risner connected me with the colleagues in Brazil who inevitably put me in contact with Docg. She has also been a great point of reference for literature that is related to Brazilian culture and business. Between both of them, I have developed a sound research question and purpose for producing this analysis. Latin American Studies include an array of topics and foci. It can encompass key segments inside the area and abroad. Business in Latin America is particularly important because there are large state-run industries, private companies, and international enterprises working in the region. Though this project aims to focus on just one private company, I consider the knowledge generated to be particularly helpful for those wanting to do business in Brazil, Latin America in general, and for economists. Not only does this project include literature on the topic, it also includes perspective from my experience during my internship. The Internship I chose to do my internship with Docg. They are a pet cosmetic company that is based in Curitiba, Brazil. Their headquarters and only store are both in Curitiba. Docg produces an array of pet products such as perfume, shampoo, conditioner, accessories, and treats. Docg has around seven or eight people working in the office daily with various positions. The information technology, logistic, and financial personnel tended to handle the bulk of my concerns. The company itself is based around similar models established with companies like Avon, Natura, O Boticario. They have a business model that features several ways in which to make sales. Customers can buy from the store in Curitiba, they have the option of buying products online, they can buy from franchises throughout the country, or they can opt to purchase products from consultants. BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 6 Docg functions as a chain and utilizes two procedures for sales: sell-in and sell out. First, Docg works with franchises (sell-in). The franchises are not owners of Docg, but rather partners. They work in compliance with all of the rules of the company and are allowed to use the logo and sell the products. All of the products that are sold to the franchises are sold at a discounted rate (50%). Franchises can buy in bulk and sell to customers. The sell-out method is different; this channel is closer to the Avon model. Consultants buy products from Docg in the form of a kit and sell directly to customers. They may choose the manner in which they will sell their products. They may choose to sell by going door to door, through friends, or even through social media. There are four types of kits offered. Kit One and Kit Two are for “Regular Consultants”, but Kit Three and Kit Four are for “Consulting Leaders”. There are incentives for climbing the ladder including a higher percentage of profit and higher discounts. For example, a regular consultant will invest R$150 for a kit at a discounted price (either 12.5% or 25% depending on where the kit is bought from). They will make a profit of R$51 or more. However, a consulting leader can invest R$1200 for a kit at a discounted price (either 15% or 30% depending on where the kit is bought from). The consulting leader will make R$1200 or more. The mission of this company is the following: To create the highest quality that enhances beauty and well-being of the animals, which translates the intention into the values perceived by customers and provided to their pets (Plano de negócio, 2014). Criar produtos de altíssima qualidade que enalteam a beleza e promovam o bem-estar aos animais, traduzindo essa intenção, em valores percebidos pelos clientes e proporcionados para seus PET’s. BRAZILIAN INTERNSHIP WITH PET WELLNESS COMPANY 7 The products sold by Docg are geared to enhancing the quality of pet lives. Items such as shampoo, conditioner, bandanas, perfumes, dog treats, and toys are part of Docg’s catalogue for pets. Like that of the United States, the culture of pet culture in Brazil is strong. Many owners try to offer their companions the best quality of life possible. Market Overview Brazil’s cosmetic industry for pets is relatively competitive.