Caito Maia founded Chilli Beans in 1994 while studying music at the University of California after observing fellow students using sunglasses not for eye protection but as a fashion accessory. It inspired him to start importing and selling sunglasses to friends when he returned to Brazil. He quickly rose to the position of wholesaler, supplier to retail establishments, and designer. Chilli now has over 700 locations worldwide (Smith and Milligan, 2011). Chilli Beans is one of the most successful company from Brazil expanding to America, Europe, and Asia as well as becoming the largest sunglasses company in Latin America. Its success has been a factor in various strategic marketing and promotions as well as identification with the customer. During its launch, Caito Maia had identified an entrepreneurial opportunity by studying customer behavior. He found that his fellow student at the University of California wore sunglasses as fashion accessories (Jose and Robert and Andrew, 2106).
Creating a strong Brand
For the longest time, Caito felt that to grow in the market there was the need to create a strong brand. By expanding on the Chilli Beans as a brand concept, the company could move a long way such as creating a lifestyle. The company worked on its brand to create an impact on the market. After the brand, the company targeted its accessories. Customers needed something that was comfortable and trendy when wearing. Additionally, he found that the more they were appealing to the customer the higher the market grew. Caito was ready to fulfill customers’ needs and expectation by growing his brand. By making it their products to be the biggest sunglass brand marked by sales in Latin America, it has become successful to conquer the global market (Affes, 2016). Chilli Beans has remained to be a lifestyle brand incorporating music, fashion, sports and events activities. It created a brand that resonated to the customers’ preference and interest in what constituted their world.
Customer experience in the store
As a fundamental element of the proposition, the store had to be appealing to the client. Chilli Beans offered a self-service, open-display platform where the customer could be comfortable to try new styles. They could try the new models released each week. The store was also a part of the customer to understand what was trending, such as salespersons’ outfits, the music they played and parties they sponsored. The company has always been spontaneous in growing its brand. Such experience makes the customer comfortable by respecting their personalities. Its salespeople are natural and honest on their work while its designers are inspired by simple things. The brand makes sure simplicity is adopted in all its stores to become more successful. Chilli Beans is made to conform to customer elements by having multi-sensory and distinctive experience. The company also focuses on how customers use the product to create a business model that produces sunglasses of excellent variety (Smith and Milligan, 2011).
Accepting change
Chilli Beans is always open to new ideas. By being an innovative company that is welcome to change, it has been able to conform to market changes and reactions. It has kept its business strategy open to new ideas which help in creating new products which conform to specific characteristics such as event, music or event. Chilli Beans has become a fast fashion business platform to win more customers as well as well as be unique in the market. As one of the major success strategy, the business launches ten models of sunglasses, five watches, and three frame models weekly in its outlets through competitive innovations built into the company operations. The activity produces a limited type of their products which customers must buy before the stock is over. The limited stock gives the first customer a chance to get the product and experience change until it runs out of the market (Smith and Milligan, 2011). The new products are inspired by customer feedback collected from events, technological presentation and social media.
Establishing a customer-company bond
Another factor that has made Chilli Beans succeed is the introducing the concept of sell-optic services. The customers can touch and test the products before they buy them. In such case, the customer feels if the product is worth buying and even suggest it to someone else. Chilli Beans pioneered and launched a personalization machine where clients could have the experience of manufacturing their glasses (Jose and Robert and Andrew, 2106). In such case, they could select the best design and assemble it at the same time. It helped make the customer feel like part of the whole process of acquiring the glasses and sense of ownership. It also helped to strengthen the bond between the company and the customer. It also made the company receive the award for the best franchise in Brazil, by the Brazilian Franchising Association (ABF) (Smith and Milligan, 2011).
Authenticity and employee experience
Chilli Beans provides products by focusing on quality and differentiated designs made to meet preferences for all ages in terms of watches, sunglasses. Additionally, its products are accessible through average prices for all economic classes. By including all customer demographic, it has helped the company grow out of Brazil and conquer another market as well as compete favorably. The company has adopted kiosk and shop expansion which has been appreciated due to its attractive investment option positioning the brand as an investment partner where there is positive financial return in a short period for its franchise (Smith and Milligan, 2011). Chilli Beans has made sure that its retail brand maintains motivated employees hired according to the customer profile. By increasing empathy and connection with the customers, the sales increased due to shared values and interests. The authenticity of the business has remained a critical factor for Chilli Beans success. Customers have to feel that they are not manipulated especially for large organizations whose trust is difficult to maintain.
Chilli Beans Marketing Strategy
Chilli Beans uses music, art, and fashion as the main source of marketing. The aim is to engage customers, collaborators, and potential customers. As a marketing strategy, the customers feel they are part of the company, and they are the ones who inspire their products. In these events, company employees can interact with the customers and understand their interests. Additionally, it is a chance to promote their brand and products (Lathrop, 2003). Another marketing strategy is providing limited products at a given time and avoiding market surplus. Trough weekly releases, limited and exclusive editions are provided at favorable prices
Chilli Beans has also been using the digital platform to enhance brand awareness, drive customers to the point of sale as well as boost offline sales. Social media marketing strategy through Facebook and Instagram has been effective on a higher level. There are high-impact visuals and Instagram and Facebook ads such as promotional offers, local awareness ads, sequence ads and carrousel. The latest form of marketing is Karma used to activate Chilli Beans brands. The model ensures that there is high traffic to Chilli Beans stores and kiosks through successful audience target (Jose, Robert and Andrew, 2106).
Chilli Beans has been marketed as a reliable and authentic brand that customers can trust and depend on. Customers are assured of quality products that cannot be challenged or counterfeited. Additionally, the products are marketed as cheap and affordable but which have high quality. Every consumer demographic is considered when producing the products. Such include summer look, fashion film and various fashions and styles. Chilli Beans franchise has been used to introduce the brand in different countries. The management and marketing team ensures they are strategized, positioned and act to the interest of the company. Other marketing strategies include consumer experience such as digital mirror used to compare sunglasses, Chilli Beans website music streaming and using a global slogan such as Chilli Beans Universe.
Some of the Chilli Beans marketing strategies can be used for the overseas market. For instance, music is a universal concept that can be applied to any culture. The only factor to consider is the population demographic as well as the genre that works well with them. Most of the young consumers can associate well with rock concerts. A sporting event is also another activity that all people associate with. Websites and social media have been embraced all over the work, and they would work well in overseas markets. Most of the target customers have access to the internet, and this means that they can access the content promoting its market globally. Additionally, marketing strategy that keeps Chilli Beans customers engaged by releasing ten limited-edition styles each week would work well for oversea marketing (Wheeler, 2003)
Chilli Beans Internationalization Plan
Chilli Beans has been on an international expansion plan which has been relatively successful in most of the locations. Basing its brand on quality and differentiated design for all ages, the international market has been growing tremendously. Although it is increasing at a higher level, it faces completion from established competitors. One of major growth has been experienced due to an option of working through shops and kiosks. The international investment has, therefore, become attractive as it provides for positive financial returns over a short period in its franchise. Establishing franchise as an international process is cheap and simple although it faces various challenges. It is difficult to control a franchise and maintain the original customer brand known in the earlier stores. Franchises may face cultural shock and unfavorable competition which may force it to change the way it operates. Maintaining brand name in terms of services may become difficult. Additionally, Chilli Beans weekly purchase of new product and designs and managing the shipment to the new stores may become difficult. It is not easy for the Brazil outlet to support each of the areas and bring the spicy essence of the brand to each shop. To address these concerns, Chilli Beans should establish a market strategy for each franchise according to the country’s business environment. Each store or kiosk business model can then be inspired by the existing culture (Magnusson, Westjohn, Semenov, Randrianasolo and Zdravkovic, 2013 53). It will also necessitate an in-depth research to understand customer demographics.
References
Affes, H., 2016. The Role of Normative Expectations of Franchisees in Assessing the Quality of Franchisor-Franchisee Dyadic Relationship. The Journal of Internet Banking and Commerce, 21(2).
Jose B. A., Robert M. and Andrew O., 2106. Chilli Beans: Peace, Love, and Sunglasses. Harvard Business School. https://services.hbsp.harvard.edu/services/proxy/content/65767767/65767779/9ec62197cea2eef9001246ea3c862d22
Lathrop, T., 2003. This business of music marketing & promotion. Billboard Books.
Magnusson, P., Westjohn, S.A., Semenov, A.V., Randrianasolo, A.A. and Zdravkovic, S., 2013. The role of cultural intelligence in marketing adaptation and export performance. Journal of Marketing Research, 21(4), pp.44-61.
Smith, S. and Milligan, A., 2011. Bold: How to be Brave in Business and Win. Kogan Page Publishers.
Wheeler, A., 2003. Designing brand identity: a complete guide to creating, building, and maintaining strong brands. John Wiley & Sons.
