Valeria Berlfein: “We consume differently when OOH”
In the latest of our experts’ Perspectives series, Valeria Berlfein, Expert Solutions Director for Kantar Worldpanel in Latin America, looks at the importance of the out-of-home (OOH) market in the region.
Considering first why it is important to understand OOH consumption in Latam, she reveals that:
“It’s important to consider how consumers buy products, because if we don’t do this then part of the opportunity is missing.”
Brands grow by finding new shoppers and the out-of-home market is a big part of the total spend. Valeria goes on to explain:
“In Latin America, OOH is 48% of the market, so if you don’t consider this part of the market you will miss opportunities. For the salted snacks category in Brazil for example, OOH represents 81% of the market, whereas in Mexico 83% of the market for ice cream and chocolate is OOH.”
Looking next at the opportunities for retailers, Valeria says:
“Out-of-home is incremental for modern trade. Globally $2 in every $10 are spent OOH, but in Latam, for example in Mexico, it is higher than this. For pure channels such as convenience stores, 96% of the spend is OOH.”
When she considers the main actions that brands can take to win more buyers, she identifies that a successful strategy has to consider the differences in consumption in and out of the home where motivations are different.
“Understanding the different concepts is simple, for example let’s consider carbonated soft drinks in Brazil. For a dinner with your family the size of the bottle you would choose is very different to the smaller bottle you would buy for out-of-home consumption.”
Valeria concludes that:
“Having the correct product, correct pack and the correct price is important. For this reason, you have to understand the differences in consumption for in and out of home.”
Watch the full interview by clicking on the video above.
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