The Brazilian market for forestry machinery : case: Ponsse Latin America Ltda

This thesis has two goals: to analyze Ponsse Latin America Ltda’s distribution channels and customer services in the Brazilian forestry market, and to identify a new potential customer group. Ponsse Oyj is Finland´s biggest forestry machinery producer and it is only natural that the company searches for new markets in South America, where Brazil has the largest natural and planted forest areas. The Brazilian forestry sector growth tendency is based on solid investments made by companies that are consumers of wood and owners of the planted forest areas. Planted forests are the main source of all wood consumed in Brazil without significant volumes of imported wood. In 2009, the average annual growth of planted forest area was 2.5%, whereas in 2008 it was 5.4%. Investment in greenfield sites and planned expansions of existing pulp and paper mills, postponed during the worst periods of the global financial crisis, are currently being carried out. Global demand for wood is picking up and returning to pre-crisis level and the importance of forest outgrower schemes is noticeably higher. All in all, this favorable scenario presents Ponsse Latin America Ltda an important opportunity to increase its market share in Brazil. This thesis was written using qualitative methods and a mix of primary and secondary sources. To conclude, this thesis suggests that a re-evaluation of Ponsse Latin America Ltda’s marketing strategies can be beneficial to the company in order to strengthen relationships with its business partners, and to establish distribution channels and to better exploit its competitors´ flaws