Post on 14-Jun-2015
description
Marianna Pardi
Juliana Cabal
Sugita Yoshitaka
Raul Manrique
Pablo Narvaez
Joao Rendon
BOP Marketing Plan for
“Latea Peru”
Marketing at theBOP final project
Agenda
The opportunity
Our proposal
Expected outcomes
The
opportunity
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%
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)
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%)
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)
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.
BOP environments
BOP environments
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)
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
Our
proposal
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
• 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)
Product Proxy Reference: Armo Shoes (Chile)
“Inclusivo” fair trade project
http://ralonso.com/?portfolio=armo
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/
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
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
Promotion
Events at Sports Camps / Zonal Parks
POP
Advertisement
Feeling represented by promotor.
One2One promotion
Where? BOP highest frequency channel
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)
Expected
outcomes
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.
OUR SOCIAL IMPACT…
FUNCTIONAL (Quality)
ASPIRATIONAL
EMPLOYMENT (Social Integration)
Thanks a
lot!!
Back up
information
BOP shoes market size
X € 291M households
= € 99 yearly spending
in shoes x HH
€ 28.7MM LIM
A
PE
RU
€ 122.7MM
YTD Habit: Channels were BOP interact the most
47% 39% 5% 3%
YTD Habit: Channels were BOP buy shoes
46% 31% 3% 3%
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
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
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.