Beer Marketing in Brazil - Part 1€¦ · Marketing Operations Brazilian Beer Market Overview...
Transcript of Beer Marketing in Brazil - Part 1€¦ · Marketing Operations Brazilian Beer Market Overview...
Carlos Lisboa
Head of Marketing
Marketing Operations
Brazilian Beer Market Overview
AmBev’s Marketing Strategy
The Brazilian Beer Market
The 4th largest beer market in the world and growing
Source: LCA
Beer Volume – Brazil (million HL)
85,687,5
2002 2003
89,3
2004
91,7
2005E
64% of population
74% of GDP
75% Beer volume
The Brazilian Beer Market
Volume, as disposable income, is concentrated in southern regions
Source: IBGE, LCA
49%
62%
51%
38%
Male Female
Total Population Beer Consumption
33%
0%
22%
39%
15%
29%
13%
19%
8%13%
under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years
Total Population Beer Consumption
Beer Consumer Profile
Beer consumption is highly concentrated in young, middle class males
Penetration by Gender Penetration by Age
Penetration by Social Economic Level
Source: LCA,IBGE,Inbev
45%
25%31%
39%
19%
27%
5%9%
Low Income Class Middle Class Upper-Middle Class Upper Class
Total Population Beer Consumption
49%
62%
51%
38%
Male Female
Total Population Beer Consumption
33%
0%
22%
39%
15%
29%
13%
19%
8%13%
under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years
Total Population Beer Consumption
Beer Consumer Profile
Beer consumption is highly concentrated in young, middle class males
Penetration by Gender Penetration by Age
Penetration by Social Economic Level
Source: LCA,IBGE,Inbev
45%
25%31%
39%
19%
27%
5%9%
Low Income Class Middle Class Upper-Middle Class Upper Class
Total Population Beer Consumption
49%
62%
51%
38%
Male Female
Total Population Beer Consumption
33%
0%
22%
39%
15%
29%
13%
19%
8%13%
under 18 years 18 - 29 years 30 - 39 years 40 - 49 years 50 - 59 years
Total Population Beer Consumption
Beer Consumer Profile
Beer consumption is highly concentrated in young, middle class males
Penetration by Gender Penetration by Age
Penetration by Social Economic Level
Source: LCA,IBGE,Inbev
45%
25%31%
39%
19%
27%
5%9%
Low Income Class Middle Class Upper-Middle Class Upper Class
Total Population Beer Consumption
Beer market is concentrated in AmBev’s stronghold
Source: Nielsen, Ipsos
The Brazilian Beer Market
Volume Contribution by Occasion - 2004
Others
40%
Beer Blast
60%
Volume Contribution by Packaging - 2004
Long Neck
4%
Can
28%Returnable
68%
Grocery Stores
20%
Supermarkets
30%On Premise (Bar)
50%
Volume Contribution by Channel - 2004
62%25%
13%
AmBev is the clear market leader with highopportunity to grow the premium segment
Premium
4,5%
Low Price
13,6%
Core
81,8%
< 85% price index
85% < x < 115% price index
> 115% price index
AmBev Share by Segment
Premium = 93%
Core = 75%
Low Price = 0%
Source: Nielsen
The Brazilian Beer Market
Volume Contribution by Market Segment
Lowprice:
Core:
Premium:
Per Capita Beer Consumption
Vast Room for growth in Brazil despite being the 4th largest beer market in the world
Source: Canadean 2003
Per Capita Beer Consumption (in liters)
162
141
119113
99 97 97
84
63
49
Czech
Republic
Ireland
(Rep)
Germany Austria UK Denmark Belgium Spain Portugal Brazil
AmBev’s Market Strategy
Strengthen core performance
Develop the premium segment
Grow volume and profitability through per capita programs
Market Intelligence
DevelopingDeveloping
MonitoringMonitoring
Exploratory
Usage and Attitudes
Behaviour
Creative Sessions
Consumer
Consumer profile
Market Segmentation
Sales
Sales Data
Behavior at POS
Service/ Sales Diagnosis
Consumer Tracking
Brand Equity
Advertising/ Positioning
Brand
Final Mix Test
Market Simulation
LaunchProduct/ Package/ Price Tests
Communications Tests
Development
Decision making based on facts
Consumer Tracking
Brand Equity
Usage and Attitudes
Exploring Usage and Attitudes
Identify key beverage occasions
Describe each occasion
Identify Key need sates
Quantify occasion volume
Map growth opportunities
Market trends andopportunities
Wake Up
Healthy Good Morning
Light Snack
Flavor With Food
Pit Stop
On the Go
Daily Indulgence
Night Out
Beer Blast
Key occasions
Brand Equity
Brand positioning based on attributes proven to be relevant and diferentiated
32
25
18
14
9
6
3
Attribute 1
Attribute 2
Attribute 3
Attribute 4
Attribute 5
Attribute 6
Attribute 7
Monitoring Brand Equity
AmBev 3
AmBev 3
AmBev 3
AmBev 3
AmBev 3
AmBev 3
Competitor 2
Competitor 2
Competitor 2
Competitor 2
Competitor 2
Competitor 2
AmBev 2
AmBev 2
AmBev 2 AmBev 2
AmBev 2
AmBev 2
Compet itor 3
Competitor 3
Competitor 3
Compet itor 1
Competitor 1
Compet itor 1 Competitor 1Competitor 1
AmBev 1
AmBev 1
AmBev 1
AmBev 1
AmBev 1
AmBev 1
-80
-60
-40
-20
0
20
40
60
80
100
Attribute 1 Attribute 2 Attribute 3 Attribute 4 Attribute 5 Attribute 6
AmBev brands standing out in main category attributes
Consumer Tracking
Awareness
Consideration
Preference
Preference is the most importantbrand image KPI for AmBev brands
PreferencePreference
Consumer Tracking
Robust and detailed information on our consumer for every brand in the Market *
PreferencePreferenceSocial Economic Class
Gender
Age
Region
(*) Data received twice a month
Market Intelligence
DevelopingDeveloping
MonitoringMonitoring
Exploratory
Usage and Attitudes
Behaviour
Creative Sessions
Consumer
Consumer profile
Market Segmentation
Sales
Sales Data
Behavior at POS
Service/ Sales Diagnosis
Consumer Tracking
Brand Equity
Advertising/ Positioning
Brand
Final Mix Test
Market Simulation
LaunchProduct/ Package/ Price Tests
Communications Tests
Development
Decision making based on facts
Consumer Tracking
Brand Equity
Brand Preference
Source: Nielsen, Ipsos, YTD 2005
Growth potential driven by gap between consumer preference and AmBev market share
Market Share Consumer PreferenceAmBev Brands
AmBev
81
Others
19
Petrópolis
5
Molson
9,2
Others
5,2
AmBev
68
Schincariol
12,6
AmBev’s Market Strategy
Strengthen core performance
Develop the premium segment
Grow volume and profitability, through per capita programs
#3 national brand with strong regional presence in north and northeast
More than a beer, a brewery recognized for beer expertise and quality
Strongly associated to Brazilian identity and male friendship
Second largest brand
Core Portfolio Strategy
Youngest, most modern and innovative brand in the Brazilian market
The leading brand in Brazil
Brahma
Antarctica
Skol