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From BOP to emerging middle classes in Latin America
Includes video content
Recommended by Warc editors
Sarah Boumphrey, ESOMAR, Latin America, Buenos Aires, April 2014
This paper examines the purchasing habits and priorities of low-income consumers in Latin America. This group represents an exciting target segment for many consumer goods companies - in Brazil alone there are 2.2 million households with a disposable income below US$2,500.
This paper examines the purchasing habits and priorities of low-income consumers in Latin America. This group represents an exciting target segment for many consumer goods companies - in Brazil alone there are 2.2 million households with a disposable income below US$2,500. In order to reach these consumers, businesses must first of all understand who they are and what they want, alongside the transition to emerging middle classes. The key to success is to learn from the experiences of other companies operating successfully both in the region and globally. Companies must understand the price/quality trade-off made by lower income consumers daily, and how this differs from decisions made by middle class consumers. When building brand awareness in Latin America, brands should consider the importance of word of mouth recommendation and tailoring products to the local market. It is also important for brands to not approach Latin America as a single market, as there is variation in attitudes, priorities and purchasing power in different countries.
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