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THE COCA-COLA RETAILING RESEARCH COUNCIL – LATIN AMERICA

Inside the minds and pockets of Latin American consumers How consumers build price perception and its impact on retailers. THE COCA-COLA RETAILING RESEARCH COUNCIL – LATIN AMERICA. Latin America Council Members Jonathan Berger CIES USA Howard Butt III HEB Mexico Guillermo D'Andrea

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THE COCA-COLA RETAILING RESEARCH COUNCIL – LATIN AMERICA

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  1. Inside the minds and pockets of Latin American consumersHow consumers build price perception and its impact on retailers

  2. THE COCA-COLA RETAILING RESEARCH COUNCIL – LATIN AMERICA Latin America Council Members Jonathan Berger CIES USA Howard Butt III HEB Mexico Guillermo D'Andrea Council Research Director Ana Maria Diniz Grupo Pao de Acucar Brazil Paulo Goelzer IGA, Inc. Brazil Antonio Coto Gutierrez Dia Internacional Argentina Tim Hammonds FMI USA Nicolás Ibáñez D&S Chile Gonzalo Restrepo Éxito Colombia Eduardo Castro Wright Wal*Mart Mexico • The Coca-Cola Retailing Research Council – Latin America (CCRRC - LA) is dedicated to developing a better understanding of the food retailing and allied merchandise distribution business in Latin America. It concentrates in identifying and then studying selected relevant issues, presenting its findings to the manufacturing and retailing communities, in order to assist in the development and enhancement of the food retailing business.

  3. Understand the relative importance of different drivers of consumer price perception, across major consumer segments, product categories, shopping occasions* and selected markets • Understand high level implications for manufacturers in terms of capabilities and requirements to deliver under different retailer price approaches** • Understand how price ranks among the key factors in the consumer preferred store selection process* • Understand high level implications for retailers in terms of organization, supply chain and vendor relations • Match consumer price perception with reality to understand which are the most effective levers for retailers REVIEWING THE STUDY GOALS AND OBJECTIVES • Overall goals and focus level • Specific objectives • 90% of study focus • Understand the drivers of consumer price perception in Latin America • 10% of study focus • Understand the implications of pricing approaches on retailers and manufacturers Source: Team analysis

  4. THE STUDY LEVERAGED THREE MAIN SOURCES OF INFORMATION • In-depth interviews • Consumer survey* • ACNielsen database • Methodology • ~15 in-depth interviews with executives of key retailers in the region • Qualitative survey • Focus groups to test initial hypothesis • Quantitative survey • ~3,000, 30-minute interviews • Correlate consumer research results with AC Nielsen scantrack information • Objective • Understand retailer perspective on consumer price perception • Capture insights on consumer price perception • Segment consumers • Enrich findings with AC Nielsen proprietary databases • Match price perception with actual prices * AC Nielsen conducted the focus groups in São Paulo and the field research in all five markets Source: Team analysis

  5. Bogotá • Santiago • Buenos Aires • São Paulo • Mexico City • 673 consumer surveys • 6 retailers (90% market share) • 30 categories (~3,500 SKUs) • 600 consumer surveys • 11 retailers (95% market share) • 30 categories (~3,700 SKUs) • 600 consumer surveys • 11 retailers (70% market share) • 33 categories (~2,500 SKUs) • 600 consumer surveys • 13 retailers (87% of the market) • 30 categories (~2,500 SKUs) • 612 consumer surveys • 6 retailers (90% market share) • 30 categories (~3,000 SKUs) CONSUMER SURVEY DETAILS Source: AC Nielsen, team analysis

  6. ONLY CONSUMERS WHO SHOP REGULARLY IN AT LEAST ONE MODERN FORMAT STORE ARE RELEVANT FOR OUR ANALYSIS • Considered for our analysis • Typically low-end consumers • Useful to gain insights on the low-end market, already studied by CCRRC • Analysis more useful in a study to increase the penetration of modern format, what is not the scope of this project • Consumers who only shop in traditional format • Primary population of interest for the CCRRC • Only respondents able to provide answers and crossable data for: • Accuracy of price perception • Price perception drivers for modern format • Effectiveness of promotional activity in price perception building • Consumers who shop in it least one modern format* store regularly • Our sample is representative of modern format shoppers * Includes hypermarkets, supermarkets, mini-markets and suburban supermarkets Source: Team analysis

  7. THE CONSUMER SURVEY IS REPRESENTATIVE OF THE MAIN SOCIO-ECONOMIC CLASSES AND AGE GROUPS % • Age • Socio-economic class* • High • 50+ years • 21-34 years • Low • Middle • 35-49 years • Results take into account the behavior and attitudes of low income consumers * Based on AC Nielsen socio-economic classification for each market Source: Consumer survey

  8. A • B • C • D • E • C2 • C3 • AB • C1 • D1 • D2 • E • C • ABC+ • D/E • C2 • C3 • D • ABC1 • Clase média • Clase alta • Clase média alta • Clase baja • Middle income • High income • Low income • 67% of modern format shoppers in São Paulo belong to classes B and C, classified as middle income COUNTRY-LEVEL ACCEPTED STANDARDS GUIDED OUR INCOME LEVEL CLASSIFICATION • We adopted the principles suggested by the National Marketing Associations of each country • São Paulo • Buenos Aires • Mexico D.F. • Santiago • Bogotá Source: AC Nielsen, National Marketing Associations of each country

  9. KEY TAKEAWAYS FROM STUDY • Latin America: diversity of consumers, and not just in the depth of their pockets • The few key levers that matter in building price perception – and the one that doesn’t • Consumers (mostly) getting it right in their search for value • Retailers have an opportunity to get it right more often in their search for a better price proposition

  10. CONSUMERS IN LATIN AMERICA CAN BE SPLIT INTO FIVE MAIN SEGMENTS • "High-income • bargain hunters" • "Range-seekers on a budget" • “Indifferent shoppers on a budget" • High income consumers who are willing to visit multiple stores to find the best deals • Want to bring home the best quality products, but limited by a tight budget • Do not care about shopping, hence invest little time in it • "Quality seekers and time savers" • "Avid bargain hunters" • Willing to pay a slight price premium to save time and have access to high quality products • Invest a lot of time and are willing to visit multiple stores for the best deals Source: Consumer survey, team analysis

  11. WE RAN A TWO-STAGE CLUSTER ANALYSIS COMBINING ATTITUDINAL AND SOCIO-DEMOGRAPHICS ELEMENTS… • Selected 1 scenario with 5 clusters • Ran 20+ statistically relevant scenarios • Attitudinal elements (most common method) • Clean and intuitive attitudes across all segments • Lacks actionability (difficult to find consumers) • Sample of 3,084 consumers in • 5 countries • Selected 4 most robust scenarios • Crossed with shopping behavior • Key buying factors • Average monthly spend • Format of main store • Two-stage cluster analysis • Combines both methodologies to reach meaningful and actionable segments • Process* developed and refined by McKinsey experts for segmentations with strategic objectives • Two main segmentation drivers • Socio-economic/ demographics • Simple way to segment, facilitate identification • Lacks insights and does not reflect attitudes * Note that none of the elements are unique, however, this methodology provides managers with unprecedented control over the process, by allowing maximum managerial input and the testing of early hypothesis Source: Team analysis

  12. …ALLOWING THE IDENTIFICATION OF SOME CONSUMERS TO WHICH SEGMENT THEY BELONG • EXAMPLE • Low income level • Age 21-34 years old • Only one person on the household • Middle income level • Large household • Shops primarily on hypermarkets 84% probability that this person is an Avid Bargain Hunter 86% probability that this person is a Range seeker on a budget Source: Team analysis

  13. INCLUDING A HANDFUL OF ATTITUDINAL STATEMENTS, ONE CAN IDENTIFY MOST CONSUMERS • EXAMPLE • Would you sacrifice service for lower prices? • Yes • Probability of 64% to be an “Indifferent shopper on a budget” • Age group • 21 - 34 • 35 - 49 • 50+ • Would you spend a lot of time looking for offers? • No • A handful of attitudinal statements allow us to identify over 50% of all consumers Source: Team analysis

  14. AVID BARGAIN HUNTERS • Typically low income • Disproportionate number of males and older consumers (50+ years old) • What do they value? • Shopping around for the best deals • Purchasing only products they had planned on • Willing to sacrifice services for lower prices • Spending a lot of time looking for promotions • Shopping in larger number of stores recently • How do they behave? • Monthly spend • Lowest average expenditure when compared with other segments (~12% below market average) • Rely less on modern formats • When shopping on modern formats, tend to prefer discounters • Format • What do they not value? • Paying more to shop close to home • Paying more to save time • Paying more for higher quality • Shopping behavior • Less likely to do stock-up trips • Always compare prices at different stores • Tend to be the least loyal consumers Source: Consumer survey, team analysis

  15. AVID BARGAIN HUNTERS

  16. HIGH INCOME BARGAIN HUNTERS • Typically high income consumer • Average age and household size • What do they value? • Shopping around for the best deals • Stocking-up when they find attractive promotions • Going to a grocery store they hear is offering good specials • Shopping in more stores recently • How do they behave? • Monthly spend • Tend to spend more (~16%) than the average spend on groceries • Format • Rely more on modern format stores • Tend to prefer hypermarkets and avoid shopping on discounters • What do they not value? • Paying more for the convenience of shopping closer home • Shopping behavior • Tend to have higher loyalty than average (São Paulo is the exception) Source: Consumer survey, team analysis

  17. HIGH INCOME BARGAIN HUNTERS

  18. RANGE SEEKERS ON A BUDGET • Typically young, low income mothers • Large household (6 or more people) • What do they value? • Getting good quality products and a large assortment • Stocking-up when they find attractive promotions • Providing the best possible quality for their family, despite their tight budget • How do they behave? • Monthly spend • Tend to spend less (~6%) than the market average on groceries • Format • Tend to shop more on hypermarkets • What do they not value? • Sacrificing services for lower prices • Shopping at upscale stores • Shopping behavior • Highly price sensitive • Tend to make fewer trips (São Paulo is the exception) and stock up once a month • Normally below average loyalty Source: Consumer survey, team analysis

  19. RANGE SEEKERS ON A BUDGET

  20. INDIFFERENT SHOPPERS ON A BUDGET • Typically low/ middle income • What do they value? • Sacrifice service for lower prices • Monthly spend • How do they behave? • Tend to spend ~10% less than the market average on groceries • Format • Tend to rely less on modern format stores • When shopping on modern formats, tend to choose hard discounters • What do they not value? • Spending time looking for deals • Stocking-up when they find good promotions • Reading store pamphlets • Shopping behavior • Tend to shop less frequently • Display relatively high loyalty to their main grocer store Source: Consumer survey, team analysis

  21. INDIFFERENT SHOPPERS ON A BUDGET

  22. QUALITY SEEKERS AND TIME SAVERS • Typically high income consumers • Small families • What do they value? • Saving time rather then money • The convenience of shopping closer to home • Higher quality, even at higher prices • How do they behave? • Monthly spend • Highest average basket, ~22% higher than market average spending on grocery shopping • Format • Rely primarily on modern format stores • Willing to shop more on supermarkets • What do they not value? • Spending time looking for promotions • Shopping in many stores to pay less • Shopping behavior • Tend to shop less frequently • Tend to be the most loyal segment in all markets • Rarely compare prices Source: Consumer survey, team analysis

  23. QUALITY SEEKERS AND TIME SAVERS

  24. RELATIVE SIZE OF THE SEGMENTS IN THE REGION Number of respondents • 100% = 2,818 • High-income bargain hunters • Avid Bargain Hunters • Quality seekers and time savers • Range-seekers on a budget • Indifferent shoppers on a budget Source: Consumer survey

  25. THE MARKETS SHOW SIGNIFICANT DIFFERENCES IN SEGMENT BREAKDOWN %, number of respondents • 2,818 • 565 • 551 • 550 • 568 • 583 • 100% • Range seekers on a budget • São Paulo and Buenos Aires have a disproportional share of “Bargain hunters" segments • “Quality seekers and time savers” are more relevant in Santiago and Bogotá • Quality seekers and time savers • Indifferent shoppers on a budget • High income bargain hunters • Avid bargain hunters • Overall • S. Paulo • B. Aires • Mexico • Santiago • Bogotá Source: Consumer survey, team analysis

  26. Bold = • Significant deviations from average • Indifferent shoppers on a budget • Average spend: R$ 327 • Monthly visits to modern format: 8 • Share of wallet of main retailer: 71% • Income level • High: 6% • Medium: 63% • Low: 32% • Avid bargain hunters • Average spend: R$ 429 • Monthly visits to modern format: 7 • Share of wallet of main retailer: 55% • Income level • High: 0% • Medium: 66% • Low: 33% • High income bargain hunters • Average spend: R$ 516 • Monthly visits to modern format: 11 • Share of wallet of main retailer: 55% • Income level • High: 34% • Medium: 66% • Low: 0% • Market average • Average spend: R$ 441 • Monthly visits to modern format: 9 • Share of wallet of main retailer: 62% • Income level • High: 10% • Medium: 67% • Low: 23% • Quality seekers and time savers • Average spend: R$ 543 • Monthly visits to modern format: 10 • Share of wallet of main retailer: 74% • Income level • High: 20% • Medium: 75% • Low: 5% • Range seekers on a budget • Average spend: R$ 500 • Monthly visits to modern format: 16 • Share of wallet of main retailer: 63% • Income level • High: 0% • Medium: 70% • Low: 30% • Store format • Hyper: 55% • Super: 14% • Disc.: 32% • Store format • Hyper: 60% • Super: 12% • Disc.: 28% DETAILED SEGMENT DESCRIPTION – SÃO PAULO Number of respondents, R$ 000, % • 565 • 249 • Quality and time • Store format • Hyper: 47% • Super: 19% • Disc.: 35% • Store format • Hyper: 57% • Super: 3% • Disc.: 40% • Avid bargain hunters • Indifferent shoppers on a budget • Store format • Hyper: 77% • Super: 12% • Disc.: 11% • Store format • Hyper: 79% • Super: 12% • Disc.: 10% • Range seekers on a budget • High income bargain hunter • Number of consumers • $ spend Source: Consumer survey, team analysis

  27. ALTHOUGH OTHER FACTORS VARY IN RELEVANCE, LOCATION AND PRICE ARE THE TWO MOST IMPORTANT FACTORS FOR ALL SEGMENTS Why did you choose to shop at that particular store? % of consumers that selected the factor as important • High income bargain hunters • Indifferent shoppers on a budget • Quality seekers and time savers • Avid bargain hunters • Range-seekers on a budget • Location • Price • Promotions • Quality of perishable products • Assortment • Overall product quality • Brand variety • Service level • Private label quality Source: Consumer survey

  28. 100% BUT SEGMENTS VARY WIDELY IN THE FREQUENCY OF PRICE COMPARISON %, number of respondents How often do you compare prices between stores? • 636 • 530 • 493 • 655 • 493 • Never • Occasionally • Very often • Always • Avid Bargain Hunters • Indifferent shopper on a budget • High income bargain hunters • Range seeker on a budget • Quality seeker and time saver Source: Consumer survey, team analysis

  29. FROM RETAILERS’ STAND POINT, SOME SEGMENTS APPEAR TO BE MORE ATTRACTIVE THAN OTHERS % • Loyalty compared to average • Share of wallet of main store • Monthly spend • Compared to market average • “Quality seekers and time savers” and “High income bargain hunters” spend more than any other segment and tend to be more loyal customers • “Avid Bargain hunters” and “Range seekers on a budget” are the least loyal segments and have small basket sizes • Quality seekers and time savers • High income bargain hunters • Indifferent shoppers on a budget • Range seekers on a budget • Avid bargain hunters Source: Consumer survey

  30. BUENOS AIRES AND BOGOTÁ HAVE THE LOWEST LOYALTY RATIO OF ALL MARKETS Average loyalty ratio* • São Paulo • Santiago • Mexico • Bogota • Buenos Aires * Share of wallet of main store Source: Consumer survey

  31. SHOPPING BEHAVIOR BY SEGMENT AND MARKET Average basket size (vertical axis) vs. loyalty index* (horizontal axis) • Quality seekers and High income bargain hunters spend more than any other segment across all markets and generally have the highest loyalty ratio • Avid bargain hunters and range seekers on a budget tend to spend less than all other segments and are also less loyal customers • On average, São Paulo, Santiago and Mexico have the highest loyalty ratio on all segments • São Paulo (R$) • Santiago (CLP) • Quality • Quality • HIBH • HIBH • Range • Indifferent • Avid BH • Range • Indifferent • Avid BH • Bogotá (COP) • Mexico (MXN) • Buenos Aires (ARS) • Quality • Quality • HIBH • HIBH • HIBH • Quality • Indifferent • Range • Range • Indifferent • Indifferent • Avid BH • Avid BH • Avid BH • Range * Share of wallet of main store Source: Consumer survey

  32. WHERE THE DIFFERENT SEGMENTS SHOP %, across all metropolitan areas studied • Percentage spent on modern format • Preferred format* • Super • Hyper • Discounter • Quality seekers and time savers • Quality seekers and time savers • High income bargain hunters • High income bargain hunters • Frustrated shoppers • Frustrated shoppers • Avid bargain hunters • Avid bargain hunters • Range seekers on a budget • Range seekers on a budget Higher income segments spend more on modern format Higher income segments prefer super & hyper; lower tend towards discounters & hyper * Indicate store format that capture a disproportional share of the segment compared to the market average. H (Hyper), S (Super) and D (Discounters). Discounters include Bodegas in Mexico Source: Team analysis

  33. SOME RETAILERS “ATTRACT” DISPROPORTIONATE SHARE OF CERTAIN SEGMENTS (1/3) Percentage of primary shoppers by segment, main retailers • São Paulo • Buenos Aires • 322 • 93 • 71 • 51 • 543 • 74 • 90 • 47 • 93 • 100% • Avid bargain hunters • Indifferent shoppers on a budget • Range seekers on a budget • High income bargain hunters • Quality seekers and time savers • Overall • A • B • C • D • Overall • A • B • C Source: Consumer survey, team analysis

  34. SOME RETAILERS “ATTRACT” DISPROPORTIONATE SHARE OF CERTAIN SEGMENTS (2/3) Percentage of primary shoppers by segment, main retailers • Bogotá • Santiago • 410 • 59 • 114 • 51 • 37 • 521 • 114 • 316 • Avid bargain hunters • Indifferent shoppers on a budget • Range seekers on a budget • High income bargain hunters • Quality seekers and time savers • Overall • A • B • C • D • Overall • A • B Source: Consumer survey, team analysis

  35. 100% SOME RETAILERS “ATTRACT” DISPROPORTIONATE SHARE OF CERTAIN SEGMENTS (3/3) Percentage of primary shoppers by segment, main retailers • Mexico • 495 • 66 • 203 • 57 • 68 • 35 • Avid bargain hunters • Indifferent shoppers on a budget • Range seekers on a budget • High income bargain hunters • Quality seekers and time savers • Average • A • B • C • D • E Source: Consumer survey, team analysis

  36. McKINSEY PROPRIETARY RESEARCH IDENTIFIED SEVEN SEGMENTS IN THE U.S. GROCERY RETAIL MARKET • Pure Price • Bargain Hunters • Selection for Less • Coupon Clippers • Want broad selection and national brands for a low price • Shop around at many different stores to hunt down the latest special • Use coupons 100% of the time, usually at a store close to home • Use every means available to get the lowest price – will not pay more for anything • Convenience • Quality • Superior Experience • Willing to pay more to get in and out quickly at a store close to home • Willing to pay more and drive farther for quality and service • Want great service and ambience at any cost Source: McKinsey North American Retail Practice

  37. LATIN AMERICA SEGMENTS ARE FAIRLY SIMILAR TO THOSE IN THE U.S. • ( ) • Percentage of total spend • S • United States • Latin America • Coupon Clippers (10%) • Avid bargain hunters (20%) • In Latin America, “more price oriented segments” are significantly larger than in the U.S., noticeably “Bargain Hunters” even adding the “Coupon Clippers” in the US • Segments broadly similar in key characteristics 79% • More price oriented • High-income bargain hunters (20%) • Bargain Hunters (10%) • Indifferent shoppers on a budget (17%) • Pure Price (12%) 44% • Range-seekers on a budget (22%) • Selection for Less (12%) • Convenience (22%) 21% • Quality seekers and time savers (21%) • “Less price oriented” segments in the U.S. more defined and significantly larger share of total population than in Latin America • Less price oriented • Quality (14%) 56% • Superior Experience (20%) Source: Team analysis

  38. KEY TAKEAWAYS FROM STUDY • Latin America: diversity of consumers, and not just in the depth of their pockets • The few key levers that matter in building price perception – and the one that doesn’t • Consumers (mostly) getting it right in their search for value • Retailers have an opportunity to get it right more often in their search for a better price proposition

  39. MAIN MESSAGES 1 • Reference price, range architecture and promotions are the three most important levers in determining consumer price perception in Latin America • Reference price is the most important lever: • in all consumer segments, although other levers have disproportionate influence depending on the segment, such as range architecture for “Quality seekers and time savers” and “Indifferent shoppers on a budget”. • in all markets except Mexico City, where range architecture is slightly more important • A limited number of KVIs appear to particularly important in driving consumers’ perception of reference price • From matching price perception with price reality, it is clear that consumers are able to quite accurately identify retailers with low average prices in markets where promotional activity is relatively low. Promotions do not drive price perception in any market and in fact obscure price reality in Sao Paulo and Buenos Aires. • There are indications however, both in low and high promotional markets that some retailers are able to get more credit more value than they “deserve” 2 3 4 5

  40. HOW DO CONSUMERS DEVELOP THEIR PRICE PERCEPTION? • How does price perception match with price reality? • How do consumers perceive prices? • What are the different elements that can help explain price perception? • What are the elements that are most relevant to explain price perception? • Are these different for the various markets? • Are these different for various segments? • Do Latin American consumers accurately perceive low price retailers? • Are there differences in price perception accuracy when we look at the different regional markets and segments? • What elements might explain regional differences in price perception? Source: Team analysis

  41. THERE ARE SEVERAL POTENTIAL DRIVERS OF PRICE PERCEPTION • Drivers • Low prices on items bought most often • Low prices on well-known items • Prices are usually low Reference price Promotions • Frequent discounts • Frequent interesting promotions (e.g., 2x1, wow deals) Range architecture • Low priced alternatives for everyday basics (i.e., OPP) • Broad range of price and quality levels • Private label with good price/quality ratio Communications • Believable low price ads • Frequent promotion pamphlets • In-store signs that clearly point to sales In-store environment • Overall store environment • A lot of people shopping Source: Team analysis

  42. Reference price • Range architecture • Communi-cations • Reference price is the key lever of price perception, with KVIs as a very relevant component • Range architecture – namely cheap alternative brands (OPPs) – are also very important • Together they make up for 75% of the way a consumers builds price perception • Promotions • Environment PRICE PERCEPTION IN LATIN AMERICA IS DRIVEN MAINLY BY TWO ELEMENTS % total weight • Believable price ads • Frequent discounts • Prices are usually low • Upscale store environment • Broad range of quality & price levels • Cheap alternative brands • Prices on well-known items/bought most often Source: Team analysis

  43. DRIVERS OF PRICE PERCEPTION BY METROPOLITAN REGION % total weight • São Paulo • Buenos Aires • Santiago • Mexico D.F. • Bogotá • Prices are usually low • Low prices on items bought most often/well known • Reference price • Good promotions • Frequent discounts • Promotions • Cheap alternative brands • Broad range • Range architecture • Upscale store environment* • Environment • Believable price ads • Communications * Causes poorer price perception Source: Team analysis

  44. DRIVERS OF PRICE PERCEPTION BY SEGMENT • Frustrated shoppers on a budget • Quality seekers and time savers % total weight • Avid bargain hunters • High income bargain hunters • Range seekers on a budget • Prices are usually low • Low prices on items bought most often/well-known • Reference price • Good promotions • Frequent discounts • Promotions • Cheap alternative brands • Broad range • Range architecture • Upscale store environment* • Environment • Pamphlets • Believable price ads • Communications * Causes poorer price perception Source: Team analysis

  45. A LIMITED NUMBER OF KVIs APPEAR TO BE ESPECIALLY IMPORTANT FOR BUILDING PRICE PERCEPTION Different consumers have different KVIs, as a result an individual store can have up to 100 KVIs* • How many items do you normally memorize the price of to assess the price level of a store? • Do you base your assessment of store prices on a few key products? • Average number of items consumers claim to memorize the price on to assess retailer prices • No • Yes • Overall • Bogotá • Buenos Aires • Mexico • San-tiago • São Paulo * Based on McKinsey previous experience Source: Consumer survey

  46. OUR SURVEY HAS IDENTIFIED ABOUT 500 KVIs IN EACH METROPOLITAN REGION – ONLY ABOUT 150 ARE COMMON TO MULTIPLE SEGMENTS… Number of different KVIs mentioned – spontaneous responses • Mentioned by only 1 segment • Mentioned by at least 2 segments • 638 • 545 • 474 • 474 • 461 • Buenos Aires • Bogotá • Santiago • São Paulo • Mexico D. F. Source: Consumer survey, team analysis

  47. … AND, OUT OF THESE, ONLY A DOZEN ARE ULTRA-KVIs Number of different KVIs mentioned – spontaneous responses • Ultra KVIs • Mentioned by: • 154 • 150 • 147 • 139 • All Segments • 130 • 3 or 4 segments • Only 2 segments • Mexico D. F. • Buenos Aires • São Paulo • Bogotá • Santiago Source: Consumer survey, team analysis

  48. TOP TEN KVIs BY METROPOLITAN AREA • Ultra-KVIs (mentioned by all segments) % of unaided consumer responses • São Paulo • Buenos Aires • Sugar União 1 kg • Sugar Ledesma 1 kg • Rice Camil 5 kg • Milk Sachet La Serenísima 1 liter • Oil Lisa 900 ml • Sugar Domino 1 kg • Coffee Pilão 500 g • Sugar – no brand 1 kg • Detergent Omo 1 kg • Detergent Ala 800 g • Rice Tio João 5 kg • Oil Natura 1.5 liter • Detergent Omo Multiação 1kg • Sugar Chango 1 kg • Rice Camil type 1 5 kg • Oil Cocinero 1.5 liter • Rice Camil 1 kg • Coca-Cola 2.25 liter • Beans Camil 1 kg • Milk Fortuna 1 liter Source: Consumer survey

  49. TOP TEN KVIs BY METROPOLITAN AREA • Ultra-KVIs (mentioned by all segments) % of unaided consumer responses • Santiago • Mexico D.F. • Sugar Iansa 1 kg • Aceite 1 2 3 1 l • Rice Tucapel 1Kg • Detergente Ariel 1 kg • Beef 1 kg • Detergente ACE 1 kg • Oil Chef 1 liter • Suavisante de telas Suavitel • Aceite Belmont 1 l • Aceite Capullo 1 l • Leche Soprole 1 l • Shampoo Caprice 1 l • Aceite A cuenta 1 l • Café Nescafé 200 gr • Azucar Iansa 5 kg • Arroz Morellos 1 kg • Papel Higiênico Petalo 4 rollos • Azucar Dama Blanca 1 kg • Aceite Miraflores 1 l • Detergente Salvo 1 kg Source: Consumer survey

  50. TOP TEN KVIs BY METROPOLITAN AREA % of unaided consumer responses • Bogotá • Aceite Óleo Soya • Panela • Aceite (no recuerda marca) • Crema dental Colgate • Arroz Flor Huila • Arroz Roa • Arroz Diana • Detergente en polvo Ariel • Chocolate/Sol • Detergente en polvo FAB Source: Consumer survey

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