【正文】 oking for offers? Probability of 64% to be an “Indifferent shopper on a budget” Yes No 59656721 34 35 49 50+ Age group A handful of attitudinal statements allow us to identify over 50% of all consumers EXAMPLE 12 AVID BARGAIN HUNTERS ? Rely less on modern formats – When shopping on modern formats, tend to prefer discounters How do they behave? ? Lowest average expenditure when pared with other segments (~12% below market average) ? Less likely to do stockup trips ? Always pare prices at different stores ? Tend to be the least loyal consumers ? 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 What do they not value? ? Paying more to shop close to home ? Paying more to save time ? Paying more for higher quality What do they value? Source: Consumer survey, team analysis Shopping behavior Monthly spend Format ? Typically low ine ?Disproportionate number of males and older consumers (50+ years old) 13 AVID BARGAIN HUNTERS 14 HIGH INCOME BARGAIN HUNTERS ? Typically high ine consumer ? Average age and household size ? Tend to spend more (~16%) than the average spend on groceries ? Rely more on modern format stores – Tend to prefer hypermarkets and avoid shopping on discounters ? Tend to have higher loyalty than average (S227。o Paulo Buenos Aires Mexico . Santiago Bogot225。xito Colombia Eduardo Castro Wright Wal*Mart Mexico 1 REVIEWING THE STUDY GOALS AND OBJECTIVES Understand the drivers of consumer price perception in Latin America Overall goals and focus level Specific objectives Understand the implications of pricing approaches on retailers and manufacturers Understand high level implications for retailers in terms of anization, supply chain and vendor relations Understand high level implications for manufacturers in terms of capabilities and requirements to deliver under different retailer price approaches** Source: Team analysis Match consumer price perception with reality to understand which are the most effective levers for retailers Understand the relative importance of different drivers of consumer price perception, across major consumer segments, product categories, shopping occasions* and selected markets Understand how price ranks among the key factors in the consumer preferred store selection process* 10% of study focus 90% of study focus 2 THE STUDY LEVERAGED THREE MAIN SOURCES OF INFORMATION * AC Nielsen conducted the focus groups in S227。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 Nicol225。s Ib225。o Paulo and the field research in all five markets Source: Team analysis ?~15 indepth interviews with executives of key retailers in the region Methodology ?Qualitative survey –Focus groups to test initial hypothesis ?Quantitative survey –~3,000, 30minute interviews ?Correlate consumer research results with AC Nielsen scantrack information ?Understand retailer perspective on consumer price perception Objective ?Capture insights on consumer price perception ?Segment consumers ?Enrich findings with AC Nielsen proprietary databases ?Match price perception with actual prices Indepth interviews Consumer survey* ACNielsen database 3 CONSUMER SURVEY DETAILS Source: AC Nielsen, team analysis Bogot225。 ? A ? AB ? C1 ? ABC+ ? ABC1 ? Clase alta ? Clase m233。o Paulo is the exception) How do they behave? Shopping behavior Monthly spend Format Source: Consumer survey, team analysis ? Shopping around for the best deals ? Stockingup when they find attractive promotions ? Going to a grocery store they hear is offering good specials ? Shopping in more stores recently What do they not value? ? Paying more for the convenience of shopping closer home What do they value? 15 HIGH INCOME BARGAIN HUNTERS 16 RANGE SEEKERS ON A BUDGET ? Tend to shop more on hypermarkets Format ? Highly price sensitive ? Tend to make fewer trips (S227。 24 DETAILED SEGMENT DESCRIPTION – S195。o Paulo (R$) 10015020025 50 75 100Santiago (CLP) 30045060025 50 75 100Bogot225。o Paulo Buenos Aires 322 93 71 51 Overall A B C 32 SOME RETAILERS “ATTRACT” DISPROPORTIONATE SHARE OF CERTAIN SEGMENTS (2/3) 31423225 25293027223727212724321071021240484Overall 410 59 114 51 37 High ine bargain hunters Range seekers on a budget Avid bargain hunters Source: Consumer survey, team analysis Quality seekers and time savers Indifferent shoppers on a budget 2648181623152818331671814416A B C D Bogot225。 Buenos Aires Mexico Santiago S227。 Santiago S227。 Santiago S227。o Paulo Buenos Aires Santiago Mexico . Bogot225。o Paulo, Santiago and Mexico have the highest loyalty ratio on all segments 30 WHERE THE DIFFERENT SEGMENTS SHOP * Indicate store format that capture a disproportional share of the segment pared to the market average. H (Hyper), S (Super) and D (Discounters). Discounters include Bodegas in Mexico Source: Team analysis Range seekers on a budget Avid bargain hunters Frustrated shoppers Quality seekers and time savers High ine bargain hunters %, across all metropolitan areas studied Percentage spent on modern format 7067595655Higher ine segments spend more on modern format Preferred format* Range seekers on a budget Avid bargain hunters Frustrated