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Selling in Latin America

Selling in Latin America. Marketing Insights & Reality. Market Basics. 250 million low-income consumers $120 billion in annual purchasing power

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Selling in Latin America

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  1. Selling in Latin America Marketing Insights & Reality

  2. Market Basics • 250 million low-income consumers • $120 billion in annual purchasing power “Low-income markets present a prodigious opportunity for the world’s wealthiest companies — to seek their fortunes and bring prosperity to the aspiring poor” -- C.K.Prahalad

  3. Global Retail Giants • Have made only modest progress in penetrating low income segments in Latin America • Current retailing format is targeted at high income customers • Carrefour, Metro & Wal-Mart carry merchandise aimed at upper class • Ignored low income market segments

  4. Fortune at the bottom of the Pyramid • C.K.Prahalad recently published his findings on how firms can be profitable by serving those who are neglected today • Latin American Governments are trying to solve Economic & Social problems • Firms can seek growth and profit by refocusing on lower class and middle-lower class segment • Wal-Mart became successful in US by concentrating on lower end of market

  5. The Challenge • Selling to lower end consumers is a big challenge • Firms are unfamiliar with distinctive retail terrain of Latin America • Understand the market needs • Firms must offer different value propositions • Modify their distribution & marketing strategies • While maintaining current offerings to existing customers • Will require a new business models

  6. Retailing Sector

  7. Recent History • Economic Boom of 1990’s and

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