BRF Perdigão relaunches to fight with Seara

One of the most traditional of the country is close to agreeing to a period of "hibernation". To get the approval of the Administrative Council for economic Defense (Cade) to one of the largest mergers ever made in the country, the BRF has had to remove one of their brands Perdigão-de-important categories, so that competition could win space.
Now, nearly four years later, Perdigão is coming back to the media and the gondolas with new products. And has a clear mission: to be a popular brand, with competitive prices, to try to contain the advance of the harvest.
Perdigao had to leave the scene because, at the time when the Cade imposed conditions to give the nod to the merger of Sadia and Perdigao, the brands concentrated together, 70 percent of the market in several categories.
The participation of the harvest, which was then the retail arm of the refrigerator Marfrig, revolved around 7%. Since then, the scenario changed.
The harvest, in addition to being passed into the hands of a group of foods with investment power in 2012, JBS assumed $ 5.85 billion in debts to keep the retail operation was also more Marfrig present in the media, with a campaign starred by presenter Fátima Bernardes.
In some product categories, Seara has seen its market share almost tripled and get close to 20%.
In addition, following the decision of the Cade, the brand that today belongs to the JBS has expanded its portfolio with subtags that belonged to Perdigao, like Texas Burger (burgers) and Fiesta (Christmas Bird).
Balance of power
But before categories important to compete for space with Seara perdigao had to undergo a transformation. In recent years, especially after the entry of businessman Abilio Diniz in the Board of Directors of BRF, in 2013, the company undertook a work of eliminating the competition that still persisted between the "wards" Sadia and Perdigão within the company.
Although Sadia has a stronger brand, was entered as Perdigão "mastermind" in the merger, celebrated in 2009, because of the crisis generated by Sound investment in currency derivatives.
To eliminate internal high-brow, the Council led by Abilio named Claudio Galeazzi President of BRF in August 2013.
During executive management known as "Scissorhands", who left office in December 2014, there was a real "musical chairs". Nine Vice Chairs of the BRF, left only two. In addition, the commercial teams before competing with each other, were United.
With this determination, the "ala" Perdigão, like it or not, had to assume a supporting role. So much so that, on the way back to the media, the brand will talk about the quality of its products, but without associating them to the idea of healthy choice that ensures a premium to prices of Sadia.
"The products of Perdigão are different, do not have the same formulation," explains a source of the retail industry. "The brand will, from now on, the fight with the harvest. Sadia will always be the flagship. "
Perdigão was left aside in recent years because the BRF needed to invest heavily in Sadia to protect market. In the segment of frozen pizzas, for which the Perdigão can only return in 2017, Sadia has remained isolated leader, with 50.8% stake. Seara, despite all the recent growth, is right behind with 19.7%.
As "second brand," perdigao can help the BRF to regain market slices disputing with Seara in the price factor. In July, perdigao will return to categories in what has been a leader in the past, like pepperoni.
According to Fábio Miranda, Director of marketing for BRF responsible for Perdigao, the brand will be more visible this year. Only investment in a quota of sponsorship of Big Brother Brazil, TV Globo, is r $ 28.9 million, say sources in the advertising market.
"Although Sadia is the flagship brand of the BRF, investment in media in Perdigao will grow more in 2015. We will be more visible, "says Miranda.
Advantage ' historic '
For the Executive, the back of Perdigão is facilitated by the very history of the brand, with 80 years in the market, and by the fact that their products have not disappeared altogether from the gondolas, as occurred in other decisions of the Cade. In the years 90, the Kolynos toothpaste, for example, was withdrawn from the market (read above).

Despite the restrictions, Perdigão continued to sell sausage, mortadella and breaded-categories in which is a leading, ahead even of Sadia.
weigh restrictions, Perdigão continued to sell sausage, mortadella and breaded-categories in which is a leading, ahead even of Sadia.
But coming back to the market with products that were absent for a few years is not a simple task, according to experts. It is common for customers to migrate to other brands when preferred disappears, says Hamilton Caio Gouvêa, partner at GS consulting & MD.
"There will be a need for product differentiation in the market". For the food and beverage consultant Alberto Viviani, you must entice the consumer again.
"The marketing plan has to get attributes of reliability and product innovation," says Daly. For him, Perdigão and Seara may halt, from now on, a "good fight". The information is from the newspaper O Estado de s. Paulo.
Topics: BRF, Sadia, Businesses, food, processed foods, meats and derivatives, Brazilian companies, publicly-held companies, Cade, competition, Brands, Perdigão, Seara