【正文】 ing and then studying selected relevant issues, presenting its findings to the manufacturing and retailing munities, in order to assist in the development and enhancement of the food retailing business. Latin America Council Members Jonathan Berger CIES USA Howard Butt III HEB Mexico Guillermo D39。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。241。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。 ? 673 consumer surveys ? 6 retailers (90% market share) ? 30 categories (~3,500 SKUs) Santiago ? 600 consumer surveys ? 11 retailers (95% market share) ? 30 categories (~3,700 SKUs) Buenos Aires ? 600 consumer surveys ? 11 retailers (70% market share) ? 33 categories (~2,500 SKUs) S227。o Paulo Buenos Aires Mexico . Santiago Bogot225。dia alta ? B ? C ? C2 ? C3 ? C ? C2 ? C3 ? Clase m233。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 looking 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?