【正文】 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 Our sample is representative of modern format shoppers 5 4136232134 years 3549 years 50+ years THE CONSUMER SURVEY IS REPRESENTATIVE OF THE MAIN SOCIOECONOMIC CLASSES AND AGE GROUPS Age * Based on AC Nielsen socioeconomic classification for each market Source: Consumer survey % 401743Middle Low High Socioeconomic class* Results take into account the behavior and attitudes of low ine consumers 6 Source: AC Nielsen, National Marketing Associations of each country COUNTRYLEVEL ACCEPTED STANDARDS GUIDED OUR INCOME LEVEL CLASSIFICATION We adopted the principles suggested by the National Marketing Associations of each country High ine Middle ine Low ine S227。 22403023161818141615251922262016111811151224252381529 29355 Source: Consumer survey, team analysis Overall 583 568 550 551 565 2,818 High ine bargain hunters 100% ? S227。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 shoppers Quality seekers and time savers High ine bargain hunters Super Hyper Discounter Higher ine segments prefer super hyper。 Santiago S227。 Buenos Aires Mexico Santiago S227。o Paulo (R$) 10015020025 50 75 100Santiago (CLP) 30045060025 50 75 100Bogot225。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。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。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。o Paulo Buenos Aires Mexico . Santiago Bogot225。o Paulo and Buenos Aires have a disproportional share of “Bargain hunters segments ? “Quality seekers and time savers” are more relevant in Santiago and Bogot225。 lower tend towards discounters hyper 31 SOME RETAILERS “ATTRACT” DISPROPORTIONATE SHARE OF CERTAIN SEGMENTS (1/3) 122319641819827342213229283914402642274638Overall A B C D 543 74 90 47 93 High ine bargain hunters Range seekers on a budget Avid bargain hunters 100% Source: Consumer survey, team analysis Quality seekers and time savers Indifferent shoppers on a budget Percentage of primary shoppers by segment, main retailers 16 16141825198131020182219261131 3021612S227。o Paulo Mexico D. F. Source: Consumer survey, team analysis Mentioned by only 1 segment Mentioned by at least 2 segments 48 … AND, OUT OF THESE, ONLY A DOZEN ARE ULTRA KVIs Number of different KVIs mentioned – spontaneous responses 739776 7358674550 5553142111198154 150 139 147 130 Buenos Aires Bogot225。 Reference price ? Prices are usually low ? Low prices on items bought most often/well known Promotions ? Good promotions ? Frequent discounts Range architecture ? Cheap alternative brands ? Broad range Environment ? Upscale store environment* Communications ? Believable price ads 4132312518143491631162626141463271642 171013DRIVERS OF PRICE PERCEPTION BY SEGMENT % total weight * Causes poorer price perception Source: Team analysis Avid bargain hunters High ine bargain hunters Range seekers on a budget Frustrated shoppers on a budget Quality seekers and time savers Reference price ? Prices are usually low ? Low prices on items bought most often/wellknown Promotions ? Good promotions ? Frequent discounts Range architecture ? Cheap alter