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BRAZIL 2017 | How to grow in a complex environment?

Penetration is a growth driver. Attracting new buyers becomes fundamental in the current scenario, and penetration is the measure that most correlates to the growth or fall of brands. Of all the brands that have risen in Brazil, 81% have gained penetration.


Christine GTPereira.png


Business & Marketing Director

Kantar Worldpanel, Brazil Christine.Pereira@kantarworldpanel.com


Christine Pereira holds a BA in Statistics from UFRJ, with a postgraduate qualification in sampling by ENCE. She has an MBA in Business Management from USP and certificate in the advanced program in Business Strategy at the University of La Verne California.


She is Business & Marketing Director of Brazil Kantar Worldpanel, with more than 20 years of experience in market research. Christine has developed her career in several renowned institutions, managing national and international projects.

Political and economic instability, combined with urban chaos, overwork and excess of information, has led to Brazil becoming one of the most stressed countries in the world. This has resulted in a tendency towards the pursuit of a simpler life, in the face of so much disorder. In addition, in Brazil’s current scenario, consumers’ pockets are tighter, and a lot of family budget-juggling has been seen in recent years.
Consuming more at home and abandoning snack bars, restaurants and bars, the population has bet on categories that serve as the basis for the preparation of dishes, consolidating the trend of “restaurant in the house.” The return to eating at home has led to growth of various products in food, beverages and cleaning, with more sophisticated products (facilitating a clean and nice smelling home) benefiting from this trend.
The consumer, however, is less likely to buy. Data from Kantar Worldpanel points out that the Brazilian is more conscious, engaged and demanding when choosing a product. Today we have a consumer who is increasingly multi-brand, multi-category, multi-channel purchasing and conquering this consumer gets increasingly complex.
In this busy environment, impacted by the crisis and in which consumers seek simplicity and differentiation, Kantar Worldpanel and Kantar Futures have identified three trends: Simpli ed Life, Fun, and Indulgence and Diversity.
But the question remains: how to grow in such a complex reality?
PENETRATION, A GROWTH DRIVER                    
Following the analysis of opportunities, penetration continues to be highlighted as a key factor. Attracting new buyers becomes critical in the current scenario. Kantar Worldpanel has identified that penetration (the percentage of households that bought the brand over a given period) is the measure that most correlates to the growth or fall of brands. Of all the brands that have risen in Brazil, 81% have gained penetration. Of brands that have fallen, 76% lost penetration in the same period. Another conclusion was that even the leading brands, which already reach a large number of households, have growth opportunities – for example, 11% of the population does not buy the leading toothpaste brand, that’s equivalent to 6 million households.
In such a complex and ever-changing world, building differentiation for brands becomes a key factor for companies to stay “alive” in the minds of consumers.
Kantar Worldpanel’s analysis identifies three more trends to help companies innovate successfully:
Innovate in categories and products: strengthen the brand’s place in the set of consumer preferences. Be known, recognized, preferred, significant, salient and different, because there is a high correlation between brand equity and real purchases!
Create products that meet consumer needs, practical products that simplify, indulgent products that satisfy, and differentiated products that surprise them.
Innovate in channels: be available whenever someone wants to buy, attend every moment of consumption and be present in every purchase mission. It’s essential to see each act of purchase as a battle to be won, and have the appropriate assortment per channel.
Focus on meeting the needs of the shopper, with a suitable assortment, an appropriate and simple exposition, and an outstanding experience.
Innovate in the business model: companies also need to constantly innovate in their business models. Kodak, for example, is trying to reinvent itself with the recent launch of the Kodak Ektra Smartphone.
Focus on evaluating trends to be able to predict the future, take advantage of opportunities of the new digital world and increasingly explore the ‘liquid” consumer.
More than ever, simplifying, satisfying and surprising will be the 3S’ crucial for anyone who is pursuing successful brand and business growth.