Market Intelligence for Latin America


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Latin America promises to be an engine of future growth for the world economy. Industries such as telecommunications, financial services, consumer goods, manufacturing and healthcare are advanced and face increasing domestic competition, as consumers increasingly demand first-class products and services. While development in the region has been rapid over the past few years, it has been disorganized. As a result, there are stark disparities between the private and public sectors and many countries within the region are at different stages of development. This white paper presents an overview of how to best conduct market intelligence in the region.

This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit

Published in: Business

Market Intelligence for Latin America

  1. 1. Market Intelligence for Latin America Webinar presentation October 08, 2009
  2. 2. Webinar Content Outline This document contains excerpts from GIA’s “Market Intelligence for Latin America” White Paper. For the free white paper, please visit or email •  Introduction and background !  Market Intelligence in Latin America !  Overview !  Regional Highlights !  Challenges •  MI Solutions •  Case Examples (not included here) •  Conclusions (not included here) - page 2
  3. 3. Regional Overview - page 3
  4. 4. 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 - page 4
  5. 5. Mexico, Central America & Caribbean •  Defining the Region - page 5
  6. 6. 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 - page 6
  7. 7. 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 - page 7
  8. 8. 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 - page 8
  9. 9. South America •  Defining the Region - page 9
  10. 10. 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 - page 10
  11. 11. 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 - page 11
  12. 12. 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 - page 12
  13. 13. Market Intelligence Challenges in Latin America
  14. 14. 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. - page 14
  15. 15. 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 - page 15
  16. 16. Intelligence challenges in LatAm: 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” - page 16
  17. 17. Intelligence challenges in LatAm: 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 - page 17
  18. 18. Intelligence challenges in LatAm: 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 - page 18
  19. 19. Tackling the challenges •  Local knowledge, on a country level •  Cross verification analysis •  Primary Research •  Continuous Monitoring •  Knowledge Management •  Deeper MI Relationships - page 19
  20. 20. 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 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
  21. 21. About GIA
  22. 22. 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 market monitoring services and software, to strategic analysis and advisory. Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide. GIA Industry White Paper 2 / 2010: Native or Web Application? How best to deliver content and services to your audiences over the mobile phone
  23. 23. Access local knowledge in over 100 countries GIA Group has 12 offices on 4 continents. Together with affiliated GIA Member companies, certified GIA Research Partners and consultants, GIA provides access to local knowledge in over 100 countries. All GIA Network companies adhere to GIA’s Research and Analysis Quality System as well as the SCIP Code of Ethics. - page 23
  24. 24. We understand your business With a track record of supporting thousands of clients Industry Practices around the world, we bring you practical expertise in your Automotive Chemicals markets, as well as knowledge from our practices covering Construction & Property Development 11 industries and all the key business functions. Consumer & Retail Energy, Resources & Environment Financial Services Private Equity Logistics & Transportation Manufacturing & Industrial Pharmaceuticals & Healthcare Telecommunication, Technology & Media Functional Practices World Class Market Intelligence MI for Strategic Planning MI for Marketing & Sales MI for Product & Innovation Management MI for Supply Chain Management M&A and Partnering
  25. 25. International Global Intelligence Alliance Group Baltic Region Gateway Baltic Belgium Global Intelligence Alliance Belgium Brazil Global Intelligence Alliance Latin America Canada Global Intelligence Alliance Canada Central & Eastern Europe EasyLink Business Services China Global Intelligence Alliance China Finland Global Intelligence Alliance Finland France RV Conseil Germany Global Intelligence Alliance Germany Hong Kong Global Intelligence Alliance Hong Kong India Global Intelligence Alliance India Japan McRBC Netherlands Global Intelligence Alliance Netherlands Russia ALT R&C. Singapore Global Intelligence Alliance Singapore South Africa Butterfly Effect Intelligence Tunisia Tunisie RV Conseil UK Global Intelligence Alliance UK United Arab Emirates GCC Consulting USA East Coast Global Intelligence Alliance USA East Coast USA West Coast I.S.I.S. – Integrated Strategic Information Services, Inc.