Updates from IBD Brazil – Team Sony PlayStation

Consoles, Caipirinhas and Coxinhas: Our Journey through Brazil

Steve Boogar, Andrew Hill, Amanda Ogus, Caitlyn Toombs

Greetings from Sao Paulo, Brazil! We have had an action-packed three weeks here working hard and playing hard for Sony PlayStation Brazil’s office. For our project, we were tasked with understanding gamer motivators and the gaming market in Brazil (vagueness of description based on our comprehensive NDA we signed prior to arrival :-).

First day at the new Sony PlayStation-Brazil offices (with a not-quite-to-scale map of South America/Brazil behind us. L to R: Caitlyn Toombs, Amanda Ogus, Andrew Hill, Steve Boogar

First day at the new Sony PlayStation-Brazil offices (with a not-quite-to-scale map of South America/Brazil behind us). L to R: Caitlyn Toombs, Amanda Ogus, Andrew Hill, Steve Boogar

Working Hard

In our first two weeks, we went to the streets (literally) to try to understand in person what we had been researching for the last 5 months. From taxes to currency issues, Brazil’s market has different problems to tackle for all economic goods. Add to that a relatively recent formal Brazil PlayStation presence (2-3 years) with a savvy Brazilian consumer used to asking many questions and researching many price points. As a result, between physical market and custom differences, it was important for us to see the stores ourselves and talk with as many people as possible.

We started with a whirlwind tour of their Retail channels. PlayStation games and consoles are sold in many different types of stores – big to small, electronics to general, malls to street kiosks – and each targets a slightly different consumer. PlayStation takes pride in making the buying experience easy and interactive, with clear descriptions of games and in-store staff properly versed on the eccentricities of all game features and sales data.

The team analyzing the PlayStation shelf with one of the Sony promoters

The team analyzing the PlayStation shelf with one of the Sony promoters

Besides just observations, we conducted many interviews with all levels of stakeholders. We chatted with store managers, Sony promoters and customers to gauge what the shopping experience really felt like and where the pain points lay. With the help of our trusty translator/guru/promoter guides Henrique and Eduardo, we got a rich understanding of the market and heard many salient insights (many of which complemented and reinforced others).

In addition to in-store visits and meetings, we also held a night of focus groups and gamer observations to dive deeper into our target market. It was fascinating to hear from Brazilian gamers and see their passion for PlayStation in person.

Focus Group of PlayStation gamers

Focus Group of PlayStation gamers

Gamer Observations with live PlayStation

Gamer Observations with live PlayStation

PlayStation loves Brazil and Brazil loves PlayStation! (L to R: Leo Zuppiroli - our fearless in-country leader; Amanda Ogus; Heber - fanatic PlayStation gamer; Andrew Hill)

PlayStation loves Brazil and Brazil loves PlayStation! (L to R: Leo Zuppiroli – our fearless in-country leader; Amanda Ogus; Heber – fanatic PlayStation gamer; Andrew Hill)

Of course, no Haas project would be complete without a PFPS post-it map, and we did plenty pulling together our final deliverable!

Clustering and name for our final report

Clustering and name for our final report

 Playing Hard

As the team lucky enough to work with PlayStation, we found that play was very important in all elements of our work. Sony Brazil’s team does a great job of mirroring the passion for the company and the product. Everyone in the office was ready to answer any and all questions we had on the interface, favorite games and other technicalities of gaming that some of our team had little to no experience in (cough Amanda and Caitlyn). Therefore, a big part of getting up to speed for us was testing out the games!

Drew, Caitlyn, and Amanda working hard to get up to speed on their product offering

Drew, Caitlyn, and Amanda working hard to get up to speed on their product offering

Of course, being in Brazil, our play was not only limited to our product. Our amazing host, Leo, gave us on a whirlwind tour of the best culture Sao Paulo had to offer! We had our fill of caipirinhas (delicious fruit cocktails usually made with cachaça, a local liquor – the team’s favorite flavor was passion fruit!), coxinhas (fried deliciousness shaped in triangles stuffed with cheese and chicken, usually) and lots of choppe (draft beer).

Leo and the team enjoying caipirinhas and coxinhas at Veloso Bar, one of our favorite places in Sao Paulo

Leo and the team enjoying caipirinhas and coxinhas at Veloso Bar, one of our favorite places in Sao Paulo

We also took time to explore the city by walking to parks, visiting museums and shopping for Havainas, Brazil’s popular sandal maker!

A view from a run through scenic Ibirapuera Park - a hidden oasis in the big city

A view from a run through scenic Ibirapuera Park – a hidden oasis in the big city

We also explored outside of Sao Paulo for a weekend in Rio! Rio was just as great as everyone described – beachy, bustling and colorful. From site-seeing at the Corcovado to enjoying feijoada with some locals (thanks to a fellow business school classmate, Grace, for the intro!), relaxing at the beach to running up the Escaderia Selaron stairs in a brief rain shower, Rio did not disappoint on our last weekend in Brazil.

The amazing Corcovado in person - apparently we weren't the only people interested!

The amazing Corcovado in person – apparently we weren’t the only people interested!

Escadario Selaron stairs – just as beautiful and colorful in person, even on a rainy day

Escadario Selaron stairs – just as beautiful and colorful in person, even on a rainy day

Our combined Haas IBD teams together in Rio!

Our combined Haas IBD teams together in Rio!

Overall, our team had a very enriching and enjoyable three weeks in Brazil, and we thank the IBD staff and our friends at Sony for all they did to make this happen!

#brahaasil

#brahaasil

Haas Emerging Initiatives: Dar Um Jeito in Brasil

Our IBD team – Anand Lakhotia, Kartik Shah and Raju Kankipati – is working with Berkeley-Haas emerging initiatives to explore digital opportunities for Haas in business education. Our project started with a global macroeconomic analysis to identify the right initial target market – which came out to be Brazil. It then continued into an in-depth market research in Berkeley, Sao Paulo and Rio Di Janeiro to understand the business education landscape in Brazil and explore the opportunities for Haas there.

Dar Um Jeito: A popular slang in Brazil which means “Find a way to get things done”

Stepping in

Our team arrived in Sao Paulo separately. Raju arrived on 6th July and two other team members – Anand & Kartik arrived on 5th July hoping to do some sightseeing. But alas, there was no sightseeing on day 1. We spent an entire day on getting a prepaid sim card using our passport as an id proof. When we finally found a suitable store, it took us 2 hours to get the documentation done. We had to use google translate on the operator’s computer throughout our entire conversation as she didn’t speak a word of English. Dar Um Jeito!

That first day made us wonder if things would continue to be so slow without the support structure of an on-site client that many other IBD teams had. But we also learnt a few things there. We saw how incredibly helpful the people in Brazil were. We also developed a keen eye of spotting people who could speak some English in the crowd. Moreover, we got a good practice of the dumb charades game we used to play as kids

Our weekend went smoother after that and it included watching a soccer game between Sao Paulo and Santos sitting in the cheapest seats next to some of the craziest soccer fans in the world (Did someone say risk level 5?)

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Sao Paulo vs Santos FC @ Estadio Morumbi

Executing

We had an action packed week lined up before us where we spoke to 25 people through interviews and focus groups. These meetings had to be conducted in the interviewee’s premises the farthest ends of the city, which ensured that we were always on the run.

To make things more interesting, Tuesday was a public holiday in Sao Paulo and most people were on a vacation. But we still managed to get enough candidates for a focus group that day. And since we had no private office space, we did it in one of the participant’s office space at Itau Bank. Dar Um Jeito!

Focus Group @ Bain

Focus Group @ Bain

Conducted interviews with students, alums, recruiters, industry experts in various settings

Conducted interviews with students, alums, recruiters, industry experts in various settings

The data we got from our week 1 of market research was a setback to us. We realized that our initial hypothesis had no market in Brazil. We needed to find a new direction and find it fast. We had a few ideas but just 1 week of field work left to be done in Rio. Oh, we had a week in Rio coming up!

Rio!

Rio  is beautiful! Beaches, mountains, restaurants, bars – it’s a paradise.

At the end of week 1, the project seemed to have gone down the cliff and that’s what we did in Rio too.  Jump off the cliff.

No, seriously!

Ok, we were tied to a hang glider.

Hang gliding in Rio

Hang gliding in Rio

After a fun weekend in Rio, we went back to work. Only, this time the interviews started Sunday evening. We were eager to validate some of the ideas we had with the alums, recruiters, students, professors and experts that we were meeting. Slowly, the ideas began to take shape and we were able to see some real interest in our new hypothesis from the key stakeholders. We have so far met 22 people here in Rio through interviews and focus groups.

Today, as we prepare our final presentation we feel very confident in our recommendations and analysis. We feel much better than what we felt a week ago and have come a long way during our two weeks here in Brazil.

Dar Um Jeito!

Disrupting the Education Technology Industry in Brazil

Team Starline is in Belo Horizonte, Brazil looking to help our client, Starline Tecnologia, an education tech start-up, evaluate the opportunities in the Brazilian Education B2C market and define an appropriate business model for entry.

As our project is winding down and we work on our final deliverables we have had a chance to reflect on our wonderful experience in Brazil thus far. We spent the first weekend in Rio, where we visited with Team Funio, enjoyed the picturesque scenery and lively nightlife, and made sure that before we left we became experts in Samba.

View from Pão de Açúcar (Sugar Loaf), Rio de Janeiro

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Team Starline enjoying Pão de Açúcar, Rio de Janeiro

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Enjoying Samba at Carioca de Gema in Lapa, Rio de Janeiro

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Our second weekend we stayed in Belo Horizonte; the holiday weekend promised a fun-filled two days. We took in an outdoor music festival, experienced the Mercado Central where we not only purchased souvenirs like Cachaça and Havaiana flip-flops, but also enjoyed sipping beers squeezed between locals that heckled every time someone wearing an opposing team’s soccer jersey walked by. We also had a chance to visit Ouro Preto, the picturesque former capital of Brazil from when the Portuguese reigned, that is surrounded by gold mines.

Sipping beers in the crowded bar at Mercado Central, Belo HorizonteImage

 Amy and Stephanie with our Host/Company Liaison, Marcelo, Ouro Preto

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Our project has come together very well in the last two weeks. While we had completed a lot of market research at home in Berkeley, we were lacking in ethnographic data and really wanted to get a deep and thorough understanding of what the day-to-day teaching life was like for both private and public secondary school teachers, our potential consumer targets. Thus, our first week consisted of visits to public and private schools.

Our first school visit was to Milton Campos, a public high school. In many ways it reminded us more of a prison—metal gates and high walls that are covered in graffiti surround the school.

Entrance to Milton Campos

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We were greeted by the Assistant Principal who gave us a tour of the school, which consisted mainly of dark halls and classrooms filled with nothing but old desks and a chalkboard.  

Typical classroom at Milton CamposImage

Vivek shows some Haas love

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The library had one computer, which was close to 10 years old and looked as though it had not been turn on or used in years

Ancient computer in the library at Milton Campos

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The public school kids were required to wear t-shirts as uniforms and go to school in shifts. At this school the 11th and 12th graders attend school in the mornings from 8-12 and the 10th graders came in the afternoons from 1-5. Others who work during the day attend evening classes from 6-10. We observed a chemistry class where on that day the kids were lucky enough to have a lab that they get access to only once a month. The students were very excited to show us the experiment they were conducting and shouted out the few English words that they knew.

We were told that many of the kids drop out by 10th grade and of the ones who graduate only a few will go on to private universities. The public high school students do not even attempt to apply to public universities, which are considered the elite colleges in Brazil, because they are too hard to get into and the students have not had the resources available to them to compete with private high school students. The irony is that one has attend a private high school, which is very expensive and elite in its own right, in order to be accepted into the free public universities.

Students from the chemistry class we observed

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The public school teachers that we spoke to were tired. They spoke to us about teaching more than 1500 students at any given time, and explained that they typically worked at two or three different schools per day in order to make enough money to live on. The school provides them with no resources and often times they have to pay out-of-pocket to provide paper or other materials for their students to use. They show up to work and struggle to connect with their students, frustrated by a lack of pay and the lofty expectations of the school administration. They all spoke of not having the time to track student progress or come up with new lesson plans.

 The next day we visited a private school, Isabela Hendrix, which houses not only grades K-12 but a university as well. Many of the students spend their entire educational upbringing at this school. One girl we met has attended the school since kindergarten and is finishing up her law degree this year. We were given a tour of the facilities by the program director, which included well-lit, clean classrooms with modern computers, projectors and white boards. The school had numerous science labs, kitchens to teach the younger kids how to cook, computer labs containing more than 30 modern computers and university caliber auditoriums. The contrast to the public school is like night and day. 

A computer lab at Isabela Hendrix

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Auditorium

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We sat in on an English class with graduating seniors. The teacher was excited to have us there and asked that we each sit with small groups of 6-7 students. We proceeded to tell them about ourselves, our project, and discussed what the students like to do on a daily basis. Some of the kids spoke very well, while others were just beginning to learn the basics of English—however, it was clear that these students have been given opportunities and a foundation for success.

 Amy telling the students about Taiwan

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Our new friends 

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Teachers at this school were much more optimistic. They all emphasized their love of teaching and were clearly much less stressed out. They don’t have to worry about resources for the students as the school covers their expenses– it also does not hurt that they are paid 3-4 times more than public school teachers. They work at only one school and are in charge of somewhere close to 100 students at a given time as opposed to the 1500 students that public school teachers are responsible for. The overall environment leads to both happier students and more satisfied teachers.

With our ethnographic research done, it is now up to Team Starline to come up with a suitable product for the potential B2C market. We will continue to contemplate our recommendations over Caipirinhas, Brazil’s national cocktail. Saúde!