1. MEXICO’S CONSUMER PROFILE.
ITESM – Campus Guadalajara

2. 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

3. 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).

4. Social Classes A/B C + C D + D E - + MIN MAX $85,000 $35,000 $84,999
$11,600
$34,999
D +
$6,800
$11,599 D
$2,700
$6,799 E
$2,699 -
% Population
% Buying Power
19.6%
28.0%
33.8%
18.7% A
1.5% B
10.9% C
22.4%
65.2%
D/E

5. Regional Differences Nuevo Leon Sonora Oaxaca D.F. CLASS
% of population
A/B/C
32.8%
D/E
67.2%
CLASS
% of
population
A/B/C
25.7%
D/E
74.3%
Oaxaca
CLASS
% of population
A/B/C
8.2%
D/E
91.8%
D.F.
CLASS
% of population
A/B/C
34.3%
D/E
65.7%

6. Segmenting the Mexican Consumer
Home Profile
Age Groups

7. 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

8. 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

9. 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.

10. 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.

11. 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.

12. 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.

13. 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

14. Teens
Segmenting Teens
De la Riva

15. 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.

16. 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.

17. 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.

18. 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.

19. 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 - El Financiero
Excélsior - El Universal
Reforma
In addition there are English – language newspapers:
Mexico City Times - USA Today
New York Times

20. 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 - Expansión
Business Mexico - 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).

21. 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

22. 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.

23. 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.

24. 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.

25. 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.)

26. 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.

27. 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.

28. 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.

29. 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.

30. 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.

31. Price Perception Factors
Reference
Price
Assortment
Architecture
Store’s
Ambiance
MENOS IMPORTANTE MAS IMPORTANTE
Promotions
Communication

32. Young Market

33. Kids

34. Palacio de Hierro

35. 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.

36. QUESTIONS