Country Manager Consumer Research

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Overview All of the Background, Environment, Consumer,

Competition, and Internal information in CM is important and should be analyzed each period.

Analysis of consumer research information is critical, each period, to develop and implement effective strategies: Target market Product Channel Pricing Advertising, promotion, and sales force

This presentation guides you through the Consumer research

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Consumers Menu Select the country you

want to analyze (Venezuela is used here)

Click on Consumers There are four types of

consumer research: Shopping Habits Decision Criteria Awareness Brands Purchased

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Shopping Habits There are four types of

retail stores in LA: Traditional Self serve (convenience) Hypermarket Web/Other Home

Each column shows what percentage of each demographic shops in each type of retail, and sums to 100%

E.g., 46% of all Younger consumers shop in Traditional stores (54% shop somewhere else)

Thus if you want to target Younger customers in VEN, selling only in Traditional stores will limit your sales potential to 46% of this group.

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Decision Criteria - 1 Research shows how

much weight consumers place on:

Price Effectiveness (benefit

or type of toothpaste) Size Vehicle (paste, gel) Delivery (tube, pump)

This is for the entire VEN market.

Use the “XSection” button to study specific customer segments

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Decision Criteria - 2 You can click on any

combination of demographic and benefit segments

To the left Younger and White are selected

The following slides will focus on analysis of the Younger White segment

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Decision Criteria - 3 This segment

represents 8.4% of the VEN population, and buys 10.6% of all toothpaste

Effectiveness (whitening toothpaste) and size are very important to this segment

They very much prefer small sizes

They prefer tubes and gels

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Awareness of Competition Brands

53% of this segment are aware of Local 1 (compared to 55% of all VEN consumers)

22% of this segment are aware of Regional 1 (compared to 27% of all VEN consumers)

They are not at all aware of Local 2

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Brands Purchased 72% buy Local 1

toothpaste 28% buy Regional 1

toothpaste

Go to Competition – Market Share to see who sells the most White toothpaste

Go to Competition – Brand Formulations to see what types of toothpaste Local 1 and Regional 1 sell in VEN that this segment are buying

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Competition – Market Share Local 2 has 100%

market share of White toothpaste – that is, of all toothpaste labeled as offering whitening benefits, Local 2 has 100% share

Why does Local 2 have 100% White share, but the Young White segment buys Local 1 (72%) and Regional 1 (28%), and not Local 2 (0%)?

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Competition – Brand Formulations

Local 2 is the only company that sells White toothpaste (but offers no small sizes)

Local 1 and Regional 1 sell Economy and Healthy (including some small sizes)

Why are Young White consumers not buying Local 2’s White toothpaste?

Why are Young White consumers buying toothpaste they really don’t want (i.e., something other than White)?

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Competitive Analysis – Why Younger White Consumers Are Not Buying Local 2 Check their advertising – are they generating

awareness? Check their Distribution Coverage – are they

selling where Younger consumers shop? Do they have Sales Force allocated to the right channels?

Check their Pricing – consumers are willing to pay more if it is what they want

Etc. Do any of the available formulations really give

this segment what they want? Can AllStar Brands do a better job targeting

Younger White consumers than the current competitors? If so, develop a strategy to do so!