Magazine Luiza Is A Family Business Marketing Essay

Magazine Luiza is a household concern that takes the name of the laminitis combined with the word “ magazine ” which in Lusitanian refers to a little commercial constitution that sells a broad assortment of merchandises. This ab initio little company became one of the largest non-food retail merchants concatenation in Brazil. In 52 old ages, Magazine Luiza has constructed a really strong trade name applied besides to two complementary companies ; Luizacred ( a partnership with Itau/Unibanco bank that would supply clients with a broader scope of fiscal services, including personal loans ) and Luizaseg ( that offers insurance ) . Magazine Luiza ‘s personality is associated with strong branding repute. Magazine Luiza believes that in a really competitory market with so much competition, its civilization is the competitory advantage that is more improbable to be transcript, it is something that takes old ages to be consolidated and is really hard to copy. To confront above mentioned market competition most of the times approach gross revenues publicity schemes to keep and increase the company gross.

1.2 Gross saless Promotions

Gross saless publicities chiefly sue to increase the gross revenues volume or else to give test merchandises to consumers and acquire them change over as regular clients. Gross saless publicities are the one of the promotional tool in the promotional / communicating mix in add-on to advertisement, direct selling and personal merchandising. If the merchandising mark is consumers named as consumer SP and when aiming whole Sellerss say trade SP. From all gross revenues publicities anticipating to construct the merchandise and trade name consciousness. Besides this is a short term promotional activity.

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Eg: Buy one get one free, 10 % off, consumer point offer, extra measure for the same monetary value and etc.

1.3 Price-based and Consumer-Franchise edifice Gross saless Promotions

Monetary value based gross revenues publicities means the merchandising demand without constructing close relationship. This is chiefly concentrating to sell higher volumes by discounted monetary value or any other method. In monetary value based publicities non sing the long term value / relationship with the client. To some extent can make merchandise and trade name consciousness. But the trade name image will be harm and do some confusion in trade name apprehension. Because clients will believe this is a low quality point due to the discounted monetary value.

Franchise edifice gross revenues publicities will sell merchandises while keeping the trade name image. This is the most effectual gross revenues publicity method. This method is utilizing purchase good established companies every bit good as first entryway companies to give their ain trade name properties and consciousness to the market. If they win to demo the distinction from the rivals will be able to acquire the maximal consequence from repetition purchases and life clip clients.

Figure 1-Corporate Reputation- made up of personality, trade name and image

( Adapted from Hatch & A ; Schultz ( 1997 ) )

Some of the gross revenues publicities will damage the bing trade name image of the company. Therefore it is necessary to reconsider the gross revenues promotional method compared to the hard currency flow. Even we can acquire money every bit shortly as possible and finish lasting extra stocks it should be non make any bad impact to the company.

02. Current Promotional Approach

Presently ML is utilizing the Consumer-Franchise edifice Gross saless Promotional method. But it is necessary to do some betterments in the procedure while heightening the trade name image.

In 2005 Magazine Luiza repositioned its trade name in the market. With the enlargement of indistinguishable merchandises on the market ( trade good ) and highly similar monetary values, it became necessary to alter the manner the company presented itself to society. One of the cardinal discriminators of Magazine Luiza is the thought of the company ‘s psyche, non merely a company that sells massively to their clients. This scheme allowed Magazine Luiza to better its emotional connexion with its clients.

The run aimed clients see through the trade name, the psyche and the values ( Best company to work for, Peoples 1st in Undertakings, Social Concern for community ) of the company. The biggest challenge was combine rational facets ( referred as organic structure: Specials, Sale, Offers ) to emotional facets ( referred as psyche: Valuess and Culture Company ) .

However, the company had a strong trade name and values cherished by stakeholders, a good communicating was missed. Based on this statement, Magazine Luiza decided to demo their values by pass oning everything they represented. A strong trade name combined to a positive client experience at the gross revenues ‘ point, a crystalline communicating and clear values and aims were used to make a good purchasing experience ensuing in a top of head that the trade name is the best one and do them happier.

Organizations depend on the public presentation of people, so its direction theoretical account is influenced by both internal factors as external to the organisation, separating it from its market mage and fight. The direction theoretical account adopted people Magazine Luiza is intended to continue and beef up civilization the company and guarantee a clime conducive to organisational human development and concern. It besides seeks to guarantee that the human resource schemes are in line with the Business Strategies Magazine Luiza to leverage its execution.

The purpose is to animate employees to these recognize the importance of their work and how he is able to do a difference in the organisation, which in the words of Fischer ( 2002 ) means mobilizing emotional energy, develop and promote human accomplishments necessary for the reorganisation of duties organisational. Another strategic way of Human Resources is the investing in the attractive force, keeping, development and preparation of leaders and endowments of the company, sing that the big spread competitory company is in people. Furthermore, the fact is that people need to hold engagement and significance in relation to their work, Limongi as France ( 2006: 78 ) “ engagement in the devising and the chance to discourse solutions together at last collaborate and see the consequence of this coaction, are strongly decisive in the quality of life at work.

Therefore, employees Company, without exclusion, are invited to take part in the building, spread, prolongation and strengthening of values. The infinites for engagement are uninterrupted, and accredited resources institutional widely available, meetings, studies, channels for suggestions, testimonies, sharing of duties.

Recommendations for Consumer-Franchise edifice Gross saless Promotional method

3.1 What are the trade name values of Magazine Luiza?

As the first measure should place trade name value of the company and add them in to gross revenues promotional constructs. The undermentioned characteristics can be identified as the trade name values of Magazine Luiza:

Focus on people: Magazine Luiza seek the felicity of people ;

Trustful ;

Positive ;

Social duty ;

Invention: Magazine Luiza is dedicated to being more advanced ;

Excellent client service: Magazine Luiza empowers its operational degree employees and their enlisting is more concentrated on choosing professionals to heighten the company image.

By looking at the trade name values in Magazine Luiza, it tends to be more customer-oriented. Magazine Luiza has a corporate trade name scheme and has utilized the name Luiza as a manner to associate the concern a serious attitude, low and highly magnetic, through a just and dependable image to the consumer ) .

Luiza Helena is an of import symbol of the organisation. The success of Magazine Luiza is attributed to her hands-on direction manner and her bent for coming up with new gross revenues schemes. Nowadays, Luiza Helena is a concern icon in Brazil and her direction has been studied around the universe, including being a instance survey at Harvard University.

3.2 Corporate individuality mix in Magazine Luiza

Consumer-Franchise edifice Gross saless Promotional method is chiefly presenting organisational cultural facets in to the clients mind set. Corporate individuality mix is through which Magazine Luiza manifests its personality to the universe. It is the manifestation of its self-perception in order to crystallise the implicit in personality of the organisation and accomplish a favourable repute for the organisation.[ 1 ]Each of its elements is examined below.


The corporate behavior of Magazine Luiza is taken really serious since the company believes it is the most of import medium through its individuality is absorbed by stakeholders. Corporate behavior is conducted through company ‘s values and chiefly affected by employees who have required endowments, accomplishments and experience. Furthermore, the company makes big investing in developing to vouch a bringing of outstanding service. Magazine Luiza besides has specify its “ Luiza manner of being ” , specifying a standard behavior for whole company. In add-on, all employees are invited to presume the function of defender of moralss, or defender of the psyche and values of the company, a function that is to understand, continue, strengthen and cultivate the values and rules of transparence, honestness, truth, earnestness, regard, company and belief in worlds.


Sing the importance of uncovering its individuality through verbal message, Magazine Luiza has made a important investing in recent old ages structuring the Center for Institutional Relations and deploying corporate communicating channels. The pick of these channels was made based on the rules, civilization, profile and specific demands of the concern. Luiza Helena liked to state that every chance was a good chance to acquire the message across. External and internal communicating was hence invariably boosted within the company through a mix of different corporate enterprises.

The company presently uses of import electronic channels: Intranet Portal, live Satellite Television and day-to-day wireless broadcast via information web. These characteristics guarantee legerity on updating, unrestricted entree, and the possibility of interaction, doing them non merely channels of information and communicating, but existent duologue channels lending to the strengthening of nucleus values of the company.


Magazine Luiza uses ocular and audile cues to set up its corporate individuality. The company logo is unchanged since 1992, when Luiza Helena became CEO and made an expressive alteration in all company construction. In 2005, to complement the run associating the trade name to emotional properties, the slogan “ Come to be happy ” was incorporated in some occasions, for illustration on the web site.

Luiza Helena is besides an of import symbol of the administration. As a consequence of the nexus between trade name and its president, Luiza Helena, the trade name ‘s image is associated to adult female, in-between age lady, elegant, dependable, strong, intelligent and delicate.[ 2 ]

3.3 Dominant civilization at Magazine Luiza

The thought of Company Culture is so strong in Magazine Luiza that Mrs. Trajano normally refers to it as the Company Soul. “ Culture is the most hard competitory advantage to transcript. It took us about 50 old ages to make a civilization that is truly customer-centered and employee-centered, capable of alining heads, Black Marias, and pockets. ”

Magazine Luiza besides define its civilization as a “ Luiza manner of being ” , they believe in an emotional connexion with people ( employees, clients and besides providers and spouses ) . All company employees are invited to presume the function of defender of moralss, or defender of the psyche and values of the company, a function that is to understand, continue, strengthen and cultivate the values and rules of transparence, honestness, truth, earnestness, regard, company and belief in worlds.

Luiza Helena had developed a really alone employee-customer centered civilization. It worked like a large household where everyone took attention of the others. She developed a construct in which company ‘s employees must hold their heads, Black Marias, and pockets aligned through a corporate environment that allowed self-development, unfastened communicating, ample engagement from all the employees in all sort of determinations, and a compensation bundle which reflected their attempt as persons and as a group. The anchor of its system was the thought of “ aided freedom ” by which a stiff ethical codification supported mechanisms that allowed the company ‘s central office to ease controls, authorising employees and furthering creativeness and legerity. This was peculiarly acute in a extremely competitory environment where most of the daily determinations had to be made on the topographic point.

3.4 Brand promise at Magazine Luiza

It is necessary give clear and specific trade name promise to the clients. Brand promise is what the mark clients articulate about the organisation through their experience with it. In other words, it describes the proposition and value nowadays to the clients. Therefore Magazine Luiza ‘s trade name promise is make people happy. The company concerns approximately sell the right merchandise, for the right client, for a monetary value that they can afford.

Because Magazine Luiza provides merchandises and services really similar in extremely competitory markets – trade good – and if the merchandises are treated every bit and without differentiation, so the difference is monetary value and besides the service. Anyway, people make the difference and the great challenge of Magazine Luiza ‘s communicating was to be compatible, to fall in the organic structure and psyche. The organic structure is represented by the actions that generate hard currency flows and gross revenues, by nature is aggressive and direct and the psyche is represented by values, civilization and hunt which by nature is elusive and emotional. And so the “ COME BE HAPPY ” . Magazine Luiza is non limited to material chases. Magazine Luiza seek participate in assorted degrees of felicity of people. They do non merely sell the lavation machine. They want to sell their free clip, want to sell the joy of the new kitchen, the comfort of the new room, be present at the clip entertaining friends, rise households, in other others, do everything for clients to recognize their dreams, and do their happy, through their emotional and material accomplishments.

In sum uping this treatment, it is of import to foreground that, Magazine Luiza has a strong organisational civilization and a high trade name promise. This can be illustrated by utilizing the undermentioned figure.

Figure 2: Cultural impact on trade name promise

Impact on trade name promise







Cultural Ethos

Beginning: Dr. George, P. ( 2009 )

This figure illustrates how the organisational civilization impacts on trade name promise. Harmonizing to this theoretical account, if the organisational civilization is weak it will hold a low impact on the trade name promise and frailty versa.

Magazine Luiza has a strong organisational civilization which is driven through authorization, market orientation, bottom-up determination devising, informality and transformational leading of Luiza Helena. Consequently, this strong organisational civilization has a high impact on the Magazine Luiza ‘s trade name promise.

3.5 Keeping the dominant civilization and trade name promise at Magazine Luiza

This article has discussed the dominant civilization of Magazine Luiza supports the bringing of its trade name promise to the mark clients. The company can besides be pointed for being advanced to the market. Since 2005, with the tiffin of the “ Come to be happy ” campaigned, Magazine Luiza firmed its place as a customer-oriented company with a customer-oriented civilization.

In keeping the trade name promise Magazine Luiza needs to continuously see its procedures, merchandises and people. Furthermore, Magazine Luiza needs to see how it can run into and transcend the trade name promise with each of its clients through interactions, where the corporate communicating plays a critical function. Specially, in industries where there is a high competition this will be of import to keep the sustainable fight.

Furthermore, Magazine Luiza needs to efficaciously keep its market-oriented civilization through uninterrupted appraisal of client demands where the selling research has to play a critical function.


When the making gross revenues publicities it is necessary to use Consumer-Franchise edifice Gross saless Promotion scheme to hold a sustainable concern. Price based gross revenues publicities merely focus short term gross revenues volume and should non reiterate the sale procedure in future. Price based promotional runs will damage the corporate image. To construct Consumer-Franchise is is necessary to hold perfect thought about the organisational stigmatization procedure and cultural values.

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