MEXICO’S CONSUMER
PROFILE
.
ITESM – Campus Guadalajara
PEOPLE
• Most populous Spanish-speaking country in the world.
• Second most populous country in Latin America, after
Brazil.
• About 70% of the people live in urban areas.
• Many of them emigrate from rural areas that lack job
opportunities to the industrialized urban centers, such
as:
–
–
–
–
–
–
Mexico City
Guadalajara
Monterrey
Puebla
Tijuana
Ciudad Juárez
People
• 20% of mexican nationals live in the US
• Representing a 58.5% of all US hispanics
• More than 12% of the US populiation
are Americans of Mexican origin (20
million people).
Social Classes
MIN
% Population
A
1.5%
B
10.9%
C
D/E
% Buying Power
22.4%
65.2%
18.7%
33.8%
28.0%
19.6%
A/B
C+
C
D+
D
E
$85,000
MAX
+
$35,000
$84,999
$11,600
$34,999
$6,800
$11,599
$2,700
$6,799
$2,699
-
Regional Differences
CLASS
% of
population
A/B/C
25.7%
D/E
74.3%
CLASS
% of
population
A/B/C
34.3%
D/E
65.7%
CLASS
% of
population
A/B/C
32.8%
D/E
67.2%
CLASS
% of
population
A/B/C
8.2%
D/E
91.8%
Segmenting the Mexican
Consumer
• Home Profile
• Age Groups
Home Types
Conscious
Home
27% of total
spending
Demographics:
•Tends to be
formed by
medium-high
social class.
•2-4 members
•With kids
Attitude:
•Rational
thinking
applied to
family well
being and
personal
growth.
•Seeks life
quality
Media
Exposure:
•Minimum
exposure to
tadio and tv.
•Reads books
•Goes to the
movies and
theater.
•Romantic
music
Home Types
Sacrificed
Home
23% of total
spending
Demographics:
•Tends to be
formed by los
social class.
•Runned by a
house wife
older than 45
with low or
none education
level.
•With several
kids.
•Blue collar
jobs.
Attitude:
•Family is the
rulling center.
•No interest in
personal
growth.
•Live day by
day.
Media
Exposure:
•High exposure
to tadio and tv
(novelas).
•Listens to the
Radio.
•Salsa and
norteña music
Home Types
Mature
Traditional
Home
10% of total
spending
Demographics:
•Tends to be
formed by
medium-low
social class.
•Runned by a
house wife
older than 45
with low or
none education
level.
•With several
grown kids/w
family.
Attitude:
•Family is the
rulling center.
•No interest in
personal
growth.
•Live day by
day.
Media
Exposure:
•High exposure
to tadio and tv
(novelas).
•Listens to the
Radio.
•Banda music.
Home Types
Fashion
Home
5% of total
spending
Demographics:
•Tends to be
formed by
medium-High
social class.
•Runned by a
young house
wife or high
education level.
•With one or
no kids.
Attitude:
•Individualistic.
•Interest in
personal
growth.
•High social
life.
•Seeks life
quality.
Media
Exposure:
•Shows interest
in advertising.
•Medium
consuption of
tv and
radio.(cable)
•Reads books
and magazines.
Home Types
Pragmatic
every day
Home
30% of total
spending
Demographics:
•Tends to be
formed by low
social class.
•Runned by an
older house
wife with low
or none
education level.
•With several
kids.
•Blue collar.
Attitude:
•Main concern
is the family.
•No interest in
personal
growth.
•Active social
life.
Media
Exposure:
•High
consuption of
tv, telenovelas
and talk shows.
•No interest in
reading.
•Salsa music.
Home Types
Mature
successful
Home
5% of total
spending
Demographics:
•Tends to be
formed by
High social
class.
•Retired.
•Empty nesters.
Attitude:
•Individualistic.
•High interest
in leisure.
•High social
life.
•Main concern
life quality.
Media
Exposure:
•Low exposure
to tv.
•Reads books.
A Youthful Population
• With more than 50% of its population under
the age of 24, there is an incredibly youthful
market that will swell the job and housing
markets in the comming years.
– 54% in 2000 compared to 37% in the US
• Just 30% of the population is age 35 or older
– 46% in the US
• Only a very small 5% is 65 or older
– 13% in the US
Teens
• Segmenting Teens
• De la Riva
SOCIOECONOMIC VISION
• As seen, Mexico is a young country,
resulting in an important opportunity to
launch innovative products that are out
of the ordinary.
• This situation is reinforced by the reach
of the advertising media to this segment.
PRODUCT MARKETING AND
ADVERTISING
• Mexico has a wide range of broadcast and
print media.
• There are over 100 full-service advertising
agencies, including branches of well – known
U.S. companies.
• Mexican advertising rates are comparable with
most large international cities.
PRODUCT MARKETING AND
ADVERTISING
• Six television networks provide national
coverage, with close to 100 stations providing
local or regional broadcast coverage.
• The largest national television networks are
Televisa and Television Azteca.
• Some U.S. channels, including some with
advertising in Spanish, are received through
cable television.
• Approximately 11 percent of the homes with
at least one television set subscribe to cable
television.
PRODUCT MARKETING AND
ADVERTISING
• Radio has the widest coverage
throughout the country.
• Approximately 1,300 radio stations (500
FM and 824 AM) broadcast in Mexico.
• Most of the radio stations broadcast 24
hours a day.
PRODUCT MARKETING AND
ADVERTISING
• Over 450 newspapers are published and
distributed (both locally and nationally) in
Mexico.
• The major Spanish – language newspapers
include
– El Economista
– Excélsior
– Reforma
- El Financiero
- El Universal
• In addition there are English – language
newspapers:
– Mexico City Times
– New York Times
- USA Today
PRODUCT MARKETING AND
ADVERTISING
• Over 300 magazines are published in Mexico,
many of which are specialized business and
industry – specific magazines.
• Important business publications include:
– Industria
– Business Mexico
- Expansión
- Al Detalle
• “Medios Publicitarios Mexicanos, S.A. De C.V.”
publishes a directory of advertising media in
Mexico, including newspapers, magazines and
radio and television stations (available by
subscription).
PRODUCT MARKETING AND
ADVERTISING
• There is one MKTG specialized
magazine:
• Merca2.0
• And Expasión has a very MKTG oriented
focus, even though is a Business
magazine
PRODUCT MARKETING AND
ADVERTISING
• Billboard advertising is also popular in
Mexico.
• Approximately 60 companies offer various
types of billboard advertising, from plain
paper to electronically controlled billboards.
• The direct marketing industry in Mexico is
growing.
• Telemarketing centers have been developed
that can also handle toll – free telephone
services and improved overnight package
delivery.
CULTURAL FRAMEWORK
ASPECT
MEXICO
FAMILY
•Family is the top priority.
•Children are celebrated and sheltered.
•Wife fulfills domestic role.
•Mobility is limited.
RELIGION
•Long Roman Catholic tradition.
•Fatalistic outlook “As God’s will”.
EDUCATION
•Memorization.
•Emphasis on theoretical.
•Rigid, broad curriculum.
NATIONALISM
•Very nationalistic, shown trough humor.
•Proud of long history and traditions.
CULTURAL FRAMEWORK
ASPECT
MEXICO
PERSONAL SENSITIVITY
• Difficulty separating work and
personal relationships.
• Sensitive to differences of opinion.
• Fears loss of face, especially publicly.
PERSONAL APPEARENCE
• Dress and grooming are status symbols,
the more the better.
STATUS
• Title and position more important than
money in eyes of society, because of
spanish heritage and “narco culture”.
ETHICS
• Truth is tempered by need for
diplomacy.
• Truth is a relative concept.
MEXICAN CONSUMER’S
BEHAVIOR
• Prefer well – known or familiar brands
• Buy brands perceived to be more
prestigious.
• Are fashion – conscious tending to
obsessed.
• Historically prefer to shop at smaller
personal stores, but lately are moving
towards the mall.
• Tend not to be impulse buyers (i.e., are
deliberate.)
MEXICAN CONSUMER’S
BEHAVIOR
• Likely to buy what their parents bought
• Prefer fresh to frozen or prepared items
• Tend to be negative about marketing
practices and government intervention
in business.
• Mexican consumer gives more
importance to appearence than
functionality and also, sometimes,
quality.
MEXICAN CONSUMER’S
BEHAVIOR
• Mexicans often enjoy comparing prices.
• Don’t have preference for generic
brands..
• At least 49% of sales value come from
supermarkets and the rest (51%) from
traditional stores.
MEXICAN CONSUMER’S
BEHAVIOR
• Small stores are still extremely important
in Mexico, the “abarrote” sindrome.
• Wal – Mart is the transnational with
more presence in Mexico.
• In general, Mexicans tend to be loyal to
brands.
MEXICAN CONSUMER’S
BEHAVIOR
• Price factor is not always decesive in
what Mexicans buy. Specially with meat,
dairy products, fruits and vegetables.
• In the case of cleaning, cosmetic and
toilettries price factor is important.
5 New Types of Consumers
• Sales Hunters
• High Income Sales Hunters
• Frustrated Buyers with Low Income
• Variety seekers with a limited budget
• Consumers that value time and quality.
Price Perception Factors
Reference
Price
Assortment
Architecture
Store’s
Ambiance
Promotions
Communication
Young Market
Kids
Palacio de Hierro
COMMERCIALIZATION
CHANNELS
• The participation of traditional stores still
remains as important (there are more than
404,000)
• Also, there’s an increasing importance of
supermarkets.
• Inspite of the numeric difference, supermarkets
have a huge impact in sales, talking about
product volume and diversity of products.
QUESTIONS