1. Country Manager Consumer Research

2. Country ManagerConsumer Research2 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

3. Country ManagerConsumer Research3 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

4. Country ManagerConsumer Research4 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.

5. Country ManagerConsumer Research5 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

6. Country ManagerConsumer Research6 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

7. Country ManagerConsumer Research7 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

8. Country ManagerConsumer Research8 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

9. Country ManagerConsumer Research9 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

10. Country ManagerConsumer Research10 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%)?

11. Country ManagerConsumer Research11 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)?

12. Country ManagerConsumer Research12 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!