marketing project for bop at peru - assembled shoes
DESCRIPTION
Presentation of Marketing Plan for "Latea Perú" (Assembled Shoes for BOP people at Lima) Elective: Social Marketing - Marketing at the BOP IE Business School, November intake 2013TRANSCRIPT
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Marianna Pardi
Juliana Cabal
Sugita Yoshitaka
Raul Manrique
Pablo Narvaez
Joao Rendon
BOP Marketing Plan for
“Latea Peru”
Marketing at theBOP final project
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Agenda
The opportunity
Our proposal
Expected outcomes
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The
opportunity
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BOP at Perú
PERU
30,4 MM people
NO BOP
22,6 MM
Extreme Poverty
1,9 MM
BOP “consumer”
5,9 MM BOP
7,8 MM
By province….
Lima 24,1%
Piura 8,6%
Cajamarca 8,2%
La Libertad 7,4%
Puno 5,4%
Loreto 4,9%
Ayacucho 4,4%
Ancash 4,1%
Lambayeque 4,1%
Junin 4,0%
Cusco 3,6%
Huánuco 3,4%
San Martin 3,3%
Huancavelica 3,0%
Apurimac 2,6%
Amazonas 2,2%
Arequipa 2,2%
Pasco 1,5%
Ica 1,0%
Ucayali 1,0%
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Average household size: 4,6 people
Average $ contributors: 1,6 members
Most common jobs
* Constr worker
* Watchman
* Janitor
* Messenger
------------------------
* Electrician
* Mechanic
* Plumber
------------------------
* Taxi / bus driver
Most common jobs
* Street vendor
* Maid
Average years of education: 8,4 (High School)
Average monthly
household income:
S/. 960
$ 343
€ 255
Aprox: € 1.85 m/day
% of food in monthly
expenditure: 67%
BOP at Lima
(1,4MM people)
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BOP house Roof material:
Calamine – corrugated iron (70%)
Wall material:
Triplay – wood (48%)
Brick and cement (34%)
Carton – rush mat (6%)
Floor material:
SOIL (55%)
Pavement – side walk
NONE (77%)
Track
NONE (72%)
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LIMA NORTH (23,9%)
•Carabayllo
•Comas
•Independencia
•Puente Piedra
•San Martín de Porres
LIMA EAST (25,9%)
•Ate – Vitarte
•El Agustino
•San Juan de Lurigancho
•Santa Anita
Lima SOUTH (27,5%)
•Pachacamac
•San Juan de Miraflores
•Santa María del Mar
•Villa El Salvador
•Villa María del Triunfo
CALLAO (9,5%)
Callao
Ventanilla
LIMA DOWNTOWN (2,9%)
Rímac
BOP at Lima
(1,4MM people)
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LIMA NORTH (23,9%)
•Carabayllo
•Comas
•Independencia
•Puente Piedra
•San Martín de Porres
LIMA EAST (25,9%)
•Ate – Vitarte
•El Agustino
•San Juan de Lurigancho
•Santa Anita
Lima SOUTH (27,5%)
•Pachacamac
•San Juan de Miraflores
•Santa María del Mar
•Villa El Salvador
•Villa María del Triunfo
CALLAO (9,5%)
Callao
Ventanilla
LIMA DOWNTOWN (2,9%)
Rímac
BOP at Lima
(1,4MM people)
Most of them live at the
periphery / outskirts; in
sand or hill /mountain
environments.
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BOP environments
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BOP environments
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Unmet Need
Household Average Monthly Spending in shoes….
Segment Total
(a+b+c)
Adult Shoes
(a)
Kids Shoes
(b)
Repairing
(c)
BOP € 8,2 € 6,1 € 1,9 € 0,2
No BOP € 10,5 € 8,5 € 1,6 € 0,4
Average Monthly
Household
income
BOP: € 255
NO BOP: € 606
% of shoes in monthly
expenditure
BOP: 3,23 % !!! (8,2/255)
NO BOP: 1,55% (10,5/606)
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Unmet Need
Household Average Monthly Spending in shoes….
Segment Total
(a+b+c)
Adult Shoes
(a)
Kids Shoes
(b)
Repairing
(c)
BOP € 8,24 € 6,11 € 1,86 € 0,27
No BOP € 10,52 € 8,50 € 1,59 € 0,43
Average Monthly
Household
income
BOP: € 255
NO BOP: € 606
% of shoes in
monthly
expenditure
BOP: 3,23 % !!!
NO BOP: 1,55%
The reason:
Intensive
use
+
Tougher
ground
conditions
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Our
proposal
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Assembled,
sole resistant,
confortable
and affordable
shoes adapted
to ground
characteristics
* Local Partners -D2D
* Deportive centers /
Zonal Park
Consumers
I. Men
- Adult
- Kid /School
II. Women
- Adult
- Kid / School
* Manrique
Shoes Group
* Milk Glass
& Popular
Dining Room
Associations
* Local majors
* Product * Storage
* Sales * Distribution
* Marketing * Administrative
* Shoe design
* Sales Force
Training
* D2D sales
* Sales force
(B2C)
* Though
sales force.
and promo
activities
* Shoes selling
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• Lightweight
• Anti fatigue propierties
• Good cushioning, resistance and grip.
• Enhanced blood circulation & knee – kidney protection.
SOLE + INSOLE * Material: Expanded virgin pvc with nitrile dust + 2mm polyurethane foam
* Footprint without cavities
* Density: 0,5 – 0,65 gr / cm3
* With eyelets for shoelace attachement
• More resistance
• Impermeability
UPPER * Material: Plastified canvas
* Assembling shoelaces: # 18 nylon
* Different designs & colors for future replacement
Product Two Component Assembled Shoes
PRODUCT CHARACTERISTICS
BENEFITS (FROM BOP PoV)
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Product Proxy Reference: Armo Shoes (Chile)
“Inclusivo” fair trade project
http://ralonso.com/?portfolio=armo
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Resistant sole + different upper colors / designs Product
Association with key partner “Manrique Group”
Specialized in security shoes now looking x diversification opportunities
http://www.grupomanrique.com/
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Place
Local Partners
D2D Sales
* Products on consignment + catalog
* Mostly women
* High capilarity
* Most personal channel. / high level
of persuasion.
* Only for main campaigns: School - Christmas
* Sponsored by majors
* BOPs in “buying mood”
* Opportunity to develop “experience” with BTL activations.
Zonal Parks
Sports Camps
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LP
CL CL CL CL
Our BOP company Training,
Promotion
incentive
Shoes
Promotion/
Selling
Our warehouses
Shoes
Supply
1) Our BOP Company
- Trains Local Partners (LP)
(mainly unemployed females)
2) Local Partners (LP)
- Acquire products from our warehouses
- Promote our products to their neighbors
- Explain the benefits of the shoes with
catalog
3) Clients (CL)
- Buy shoes
4) Our BOP Company
- Analyze local needs and develop new
products by collaborating with LPs
(in the future)
Local Partner Model
Products
Purchase
1
2.
3.
4. Customer
feedback
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Promotion
Events at Sports Camps / Zonal Parks
POP
Advertisement
Feeling represented by promotor.
One2One promotion
Where? BOP highest frequency channel
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Price
VARIABLE
COSTS
(x pair of
shoes) (**)
SOLE UPPER
Adult: € 2.65
Kid: € 2.20
+ =
Adult: € 2.26
Kid: € 1.88
COGS x BOP
company
Adult: € 4.91
Kid: € 4.08
Price x distributor
Adult: € 5.69
Kid: € 4.76 Adult: +39%
Kid: +39%
Price x BOPs
Adult: € 9.26 Kid: € 7.94
Adult: +14%
Kid: +14%
Margins were set based on learnings pointed in “Mrktg Innovative Devices x BOP”
Hystra, March 2013
YTD Benchs
Adult:
€ 10.58 - € 13.23
Kid:
€ 7.41 - € 10.05
(**) To make it simple we just use variable costs and not fully allocated ones
(+ administrative, marketing, sales training, distribution)
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Expected
outcomes
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Marketing & Financials
* Awareness >= 40% of HH.
* Penetration (Trial) >= 17% of HH.
* Market share >= 1,37%.
* Break even point: 48,2M pairs
(40,5M kids & 7,8M adults or other combinations)
To have green numbers we would need…
It´s a real Challenge. To get scale we rely on our local partners, and
that´s why we need to ensure attractive margins x them.
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OUR SOCIAL IMPACT…
FUNCTIONAL (Quality)
ASPIRATIONAL
EMPLOYMENT (Social Integration)
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Thanks a
lot!!
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Back up
information
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BOP shoes market size
X € 291M households
= € 99 yearly spending
in shoes x HH
€ 28.7MM LIM
A
PE
RU
€ 122.7MM
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YTD Habit: Channels were BOP interact the most
47% 39% 5% 3%
YTD Habit: Channels were BOP buy shoes
46% 31% 3% 3%
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Distribution model trade - offs
Franchise
D2D
PR
OS
C
ON
S
* No shoes at YTD
* Highest interaction
* High bond channel
* Opportunity x trade mrktg
– POS activation
* 2nd channel in current habit.
* High interaction
* High bond channel
* Opportunity x trade mrktg
– POS activation
* 1st channel in current
habit.
* Easier to serve POS
number (50 x district)
* Most personal channel.
* High level of
persuasion.
* Added complexity
(28.2M POS / 2.8M x district)
* Not fit with current habit
* POS willingness to buy
* Added complexity
(22.8M POS / 2.3M x district)
* Margin orientation
* Conflict vs own
retailer brands
* Added complexity
(291M households)
* Sales force training
and management.
* Security / fraud issues
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YTD Habit: Means of transportation (most used)
50% 32% 13% 2%
YTD Alternative Channels Impact (% bought what they´ve seen at…)
58% 57% 51%
Daily time spent at public
transportation: > 1,5h
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Information Sources
i) BOP at Perú
* Informe Técnico Pobreza en Perú 2012. INEI
* Encuesta Nacional de Hogares 2012 - Modulo Vestido y Calzado. INEI
* Niveles Socioeconómicos de la Gran Lima 2012, Ipsos.
* Perfiles Zonales de la Gran Lima 2009, Ipsos
* Hábitos y Actitudes hacia Canales Alternativos 2012, Ipsos.
http://www.youtube.com/watch?v=VjFuiKeoJAI
http://www.youtube.com/watch?v=v7mkLORH3RY
ii) Propuesta de Marketing
* Producto armable
Proyecto Inclusivo de Comercio Justo en Chile desarrollado por Rodrigo Alonso.
http://ralonso.com/?portfolio=armo
* Márgenes para el distribuidor
-The base of pyramid distribution challenge. XIFMR Research, 2011. Centre for
Development Finance.
- Marketing Innovative Devices for the BOP. Hystra, March 2013.