Food & Beverages – (Paraguay)

Food & Beverages – (Paraguay)

by Octavio Murekian

Goal

Increasing the sales revenue of the soda line in a soft drinks company.

Problem Statement / Initial Situation

The client, a soft drinks / mineral water company in Latin America, contacted Toucan Insights concerned that there had been a stagnation in their sales revenue on their line of soft drinks. The client wanted to continue their growth and understand why it had capped when their data showed there was still more market to capture. The company’s main market was around Paraguay’s two main cities: Asuncion and City of the East.

Research Development and Strategy

The market research study for this case involved a heavy qualitative and observational bend, the use of focus groups, in depth interviews and consumer observation were used in conjunction with a more quantitative market analysis. The research was aimed at understanding:

    • What the Paraguayan consumer wanted from his beverage
    • How the purchasing decision was made
    • What regional cultural factors influenced this decision
    • The most poignant messages influencing these consumers
    • Identifying the best marketing channels to reach the consumers
    • What key influencers had an effect on the consumers
    • How the company’s sales process could be improved

The main research findings uncovered by the study were:

    • In Paraguay the weekly shop and purchase decision is predominantly done by women.
    • Soft drinks are associated with family meals and spending time with family.
    • The main worry they have when buying drinks for their family is the drink quality.
    • There are four dominant flavours in the market (Cola, Guarana, Pineapple, Orange) these are roughly in line with the company’s offering.
    • Most of the consumers tend to shop weekly on Sundays on small local shops rather than large supermarkets chains.
    • Radio and local radio personalities have a huge impact on consumers and are listened to daily.

Following the findings from the study, Toucan Insights laid out a new marketing and sales plan for the company including, among others, the following recommendations:

  • Target Consumers: Direct the marketing actions to your target (Customer Personas) identified during the previous stage.
  • Messages: The messaging should associate the drink with the ‘ideal Paraguayan’ family time, showing a family congregating for a meal at a table together emphasizing the high quality of the drink itself
  • Sales process: Distribution times and operations were reformulated seeking to maximize the presence of products during peak demand.
  • Marketing budget was redistributed, allocating more resources and investment in developing communicational materials for the channels influencing the target.

Results

In the 6 months after the changes were made the company noted a 35% increase in sales at no increase in their marketing budget.