Market Intelligence for Latin America

Market Intelligence for
Latin America
Webinar presentation
October 08, 2009

www.globalintelligence.com

Webinar Content Outline
This document contains excerpts from GIA’s “Market Intelligence
for Latin America” White Paper. For the free white paper, please
visit www.globalintelligence.com or email
info@globalintelligence.com.

•  Introduction and background
!  Market Intelligence in Latin America
!  Overview
!  Regional Highlights
!  Challenges
•  MI Solutions
•  Case Examples (not included here)
•  Conclusions (not included here)

www.globalintelligence.com - page 2

Regional Overview


Introduction to Market Intelligence in Latin
America
•  A region of US$ 4.5 Trillion

•  Approximately 6% of Global GDP

•  Largest Economies:
!  Brazil: US$1.6tri
!  Mexico: US$ 1.1tri
!  Argentina: US$ 339 bln

•  Highest Growth Economies (2008):
!  Peru: 9.2%
!  Uruguay: 8.9%
Brazil and Mexico
!  Panama: 8.3% respresent > 60%
of the region’s
GDP


Mexico, Central America & Caribbean
•  Defining the Region


Economic landscape in Mexico, Central
America & Caribbean
•  Economy of 1.45 trillion
!  75% represented by Mexico
•  Combined population of 190 million
!  110 million in Mexico
•  Importance of Mexico
!  Dependence on exports and US
•  Puerto Rico, Panama, and Costa
Rica lead the way with
infrastructure developments and
GDP per capita
•  NAFTA and Caribbean Agreements
•  Important sectors: Agriculture &
Tourism


Mexico, Central America &
Caribbean business landscape

•  A unique strategic geographical, cultural and economic positioning
•  An area of increasingly opened markets
•  An area of disparities from region to region
•  A high performance place for foreign direct investments (FDI):
!  Competitive educational environment
!  Logistics, Infrastructure and Telecommunications investments
!  Foreign investment incentives
!  Dynamic internal markets
!  Numerous opportunities


Challenges in doing business
in Mexico, CA & Caribbean

•  Independent and specific countries requiring specific approaches

•  Limited amount of trustable secondary sources information

•  Hard to find information. Local primary sources are a must.

•  Bureaucratic culture, powerful administration, centralized decisions

•  Fast moving environments


South America

•  Defining the Region


Economic landscape in South America

•  Economy of $2.93 trillion
!  54% represented by Brazil
•  Combined population of 394 million
!  190 million in Brazil
•  Brazil´s internal market serves as
cushion to crisis resistance
•  Peru growing at 9.2% per year!
•  Argentina recovering and holds
region most qualified workforce
•  Brazil in the spotlight with 2014
world cup, and Rio 2016 Olympics


South America
Business landscape
•  Composed of three main regional Hubs
!  Andean Region
!  Southern Cone
!  Brazil
•  An area of increasingly opened markets
!  Momentary exceptions are Venezuela
and Bolivia
•  A high performance place for foreign
direct investments (FDI):
!  Countries with growing internal markets;
growing consumer base
!  Logistics, Infrastructure and
Telecommunications investments
!  Foreign investment incentives
!  Dynamic internal markets


Challenges in doing business in South America

•  Lack of quality information in most
industries in most South American
countries

•  The importance of networks of
people

•  Diversity within the region and
within countries:
!  Country specific challenges
!  Logistics: distances & terrain
!  Income Disparity
!  Complicated Regulatory processes


Market Intelligence Challenges in
Latin America


Intelligence challenges in Latin America:
Fundamentals
Each of the 34 countries within the region is unique and one country barely knows
the other. It is a huge mistake to look at the region as one and presume that the
behavior in one country resembles that of its neighbor.

Socioeconomic levels, purchase power parity, unemployment rates, and other
population measuring tools are incomparable to those of developed countries and
must be adapted to local conditions and climates.

Unreported black / grey market factors must be estimated when calculating market
size. The impact of contraband products, copies and clones must be taken into
consideration within short-, medium-, and long-term sales objectives.

Reported growth rates (usually in US$) must be taken into consideration foreign
exchange fluctuations and devaluations.

Reaching precision in market strategy and positioning can be frustrating, as
target markets frequently shift in size and demographics as a result of the economic
dynamics listed above.


Intelligence challenges in LatAm:
Cultural factors
•  Government
Information quality varies from country to country and source to source. Overall,
government data can be characterized as outdated
•  Press
With the exception of a handful of world-class players, the press is very often
equipped with limited research capabilities, especially in 2nd and 3rd tier countries
•  Associations
Most do not generate market intelligence. There are few exceptions in specific
industries within specific countries, even so concentrating more on data than
intelligence
•  Off-the-shelf studies
Mostly available only on a macro economic or political scale.
•  Websites
Plenty of rich information in some countries and industries but difficult to differentiate
credible from non-credible sources


Cultural factors
•  Social Disparity/Eliteness
Accessing business decision makers and high level consumers is difficult, for they
isolate themselves from the public
•  Skepticism
Consumer research is often inhibited by fear that criminal motives may be behind
interviews
•  Lack of trust
B2B research often breeds mistrust of competitors and competitive intelligence
•  Tax evasion
Tax evasion still somewhat present in the region, few companies wish to reveal
financial data
•  Centralized Management
Changing rapidly in some companies and countries, but centralization of management
handicaps the information flow amongs middle management
•  Corruption
Valuable information in some countries is closely guarded by public and private sectors
and may only be available with “special incentives” www.globalintelligence.com - page 16

Time factors

•  The absence of secondary data requires increased investment in costlier primary
research

•  Telephone interviews have limited success so interviews must often be conducted in
person

•  Decision makers are difficult to access

•  Travel to and from interviews can take 1-2 hours each way

•  Survey techniques usually require very large samples due to socio demographic
segmentation

•  More and costlier focus groups must be conducted to research the entire market


Cost factors

•  Telephone costs are much more expensive than in the US or Europe

•  Skilled consultants are as expensive as the US or Europe equivalents

•  Real estate prices are highly inflated

•  Hotel rates can exceed prices in New York or London

•  Travel costs are usually double the US or European rates


Tackling the challenges

•  Local knowledge, on a country level

•  Cross verification analysis

•  Primary Research

•  Continuous Monitoring

•  Knowledge Management

•  Deeper MI Relationships


Thank You for Your
Attention

These slides are excerpts from Contact Us
the GIA White Paper: “Market
Intelligence for Latin America”. For additional information about the
Global Intelligence Alliance and our
services, please send email to
Download the entire White Paper info@globalintelligence.com or log on
for Free to the GIA website for the contact
information of the GIA company
nearest to you.
The report has been published under the
GIA White Paper series and is available
for free download at
www.globalintelligence.com.


About GIA


GIA is a strategic market Intelligence
and advisory group

Global Intelligence Alliance (GIA) was formed in 1995
when a team of market intelligence specialists,
management consultants, industry analysts and
technology experts came together to build a powerful
suite of customized solutions ranging from outsourced
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Today, we are the preferred partner for organizations
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GIA Group has 12 offices on 4 continents.
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With a track record of supporting thousands of clients Industry Practices
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International Global Intelligence Alliance Group info@globalintelligence.com
Baltic Region Gateway Baltic baltics@globalintelligence.com
Belgium Global Intelligence Alliance Belgium belgium@globalintelligence.com
Brazil Global Intelligence Alliance Latin America brazil@globalintelligence.com
Canada Global Intelligence Alliance Canada canada@globalintelligence.com
Central & Eastern Europe EasyLink Business Services cee@globalintelligence.com
China Global Intelligence Alliance China china@globalintelligence.com
Finland Global Intelligence Alliance Finland finland@globalintelligence.com
France RV Conseil france@globalintelligence.com
Germany Global Intelligence Alliance Germany germany@globalintelligence.com
Hong Kong Global Intelligence Alliance Hong Kong hongkong@globalintelligence.com
India Global Intelligence Alliance India india@globalintelligence.com
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Netherlands Global Intelligence Alliance Netherlands netherlands@globalintelligence.com
Russia ALT R&C. russia@globalintelligence.com
Singapore Global Intelligence Alliance Singapore singapore@globalintelligence.com
South Africa Butterfly Effect Intelligence southafrica@globalintelligence.com
Tunisia Tunisie RV Conseil tunisia@globalintelligence.com
UK Global Intelligence Alliance UK uk@globalintelligence.com
United Arab Emirates GCC Consulting uae@globalintelligence.com
USA East Coast Global Intelligence Alliance USA East Coast usaeast@globalintelligence.com
USA West Coast I.S.I.S. – Integrated Strategic Information Services, Inc. usawest@globalintelligence.com


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