【正文】 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 alternative brands ? Broad range Environment ? Upscale store environment* Communications ? Pamphlets ? Believable price ads 1720151323242713518 181235202014251022 2521214243 A LIMITED NUMBER OF KVIs APPEAR TO BE ESPECIALLY IMPORTANT FOR BUILDING PRICE PERCEPTION * Based on McKinsey previous experience Source: Consumer survey Do you base your assessment of store prices on a few key products? How many items do you normally memorize the price of to assess the price level of a store? 7426No Yes 5 , 14 , 03 , 93 , 13 , 03 , 8Overall 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 Santiago Mexico Bogota Buenos Aires Average loyalty ratio* * Share of wallet of main store Source: Consumer survey 29 SHOPPING BEHAVIOR BY SEGMENT AND MARKET 30045060025 50 75 100Average basket size (vertical axis) vs. loyalty index* (horizontal axis) * Share of wallet of main store Source: Consumer survey S227。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。o Paulo belong to classes B and C, classified as middle ine 7 KEY TAKEAWAYS FROM STUDY 1. Latin America: diversity of consumers, and not just in the depth of their pockets 2. The few key levers that matter in building price perception – and the one that doesn’t 3. Consumers (mostly) getting it right in their search for value 4. Retailers have an opportunity to get it right more often in their search for a better price proposition 8 CONSUMERS IN LATIN AMERICA CAN BE SPLIT INTO FIVE MAIN SEGMENTS Source: Consumer survey, team analysis Avid bargain hunters Invest a lot of time and are willing to visit multiple stores for the best deals Quality seekers and time savers Willing to pay a slight price premium to save time and have access to high quality products “Indifferent shoppers on a budget Do not care about shopping, hence invest little time in it Rangeseekers on a budget Want to bring home the best quality products, but limited by a tight budget High ine consumers who are willing to visit multiple stores to find the best deals Highine bargain hunters 9 WE RAN A TWOSTAGE CLUSTER ANALYSIS COMBINING ATTITUDINAL AND SOCIODEMOGRAPHICS ELEMENTS… * 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 Sample of 3,084 consumers in 5 countries Two main segmentation drivers Attitudinal elements (most mon method) ? Clean and intuitive attitudes across all segments ? Lacks actionability (difficult to find consumers) ? Selected 4 most robust scenarios ? Crossed with shopping behavior – Key buying factors – Average monthly spend – Format of main store Socioeconomic/ demographics ? Simple way to segment, facilitate identification ? Lacks insights and does not reflect attitudes Twostage cluster analysis ? Combines both methodologies to reach meaningful and actionable segments ? Process* developed and refined by McKinsey experts for segmentations with strategic objectives Ran 20+ statistically relevant scenarios Selected 1 scenario with 5 clusters 10 …ALLOWING THE IDENTIFICATION OF SOME CONSUMERS TO WHICH SEGMENT THEY BELONG Source: Team analysis ? Low ine level ? Age 2134 years old ? Only one person on the household ? Middle ine 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 EXAMPLE 11 INCLUDING A HANDFUL OF ATTITUDINAL STATEMENTS, ONE CAN IDENTIFY MOST CONSUMERS Source: Team analysis Would you sacrifice service for lower prices? Would you spend a lot of time lo