Marzo 2016

First wave: Teens and Young Adults- ColombiaThe digital consumption in the base of the pyramid

Índice

Justification: Origin of the study1

Report3

Objectives and Methodology2

Origin of the Study1

The value of understanding the base of the pyramid

A better understanding of the segment or a emergent phenomena means better business opportunities for the industries because of a better adjustment of the offers and the necessities of the consumers.

From The Cocktail Analysis we want to contribute to the knowledge that brands and organizations have about the base of the pyramid, making emphasis on the digital field and the young consumers, all this because of the following reasons:

● We are talking about a segment with a great weight considering the total population in Mexico, in terms of volume and purchase power.

● Compared to other profiles, and even though in the last years the brands have started to be interested on them, the research focused on the base of the pyramid is still rare; and the public studies are even less frequent.

● In particular, it’s relevant to have an approach that makes emphasis on the digital field as it has become one of the main opportunities this segment has found to get close to information and consume that were not accessible for them before.

● The young people are the ones that have the main role on the approach of the base of the pyramid to the digital media; they are also the ones that will experience the expansion of the possibilities of consumption of the segment.

The number of subscribers to broadband internet has increased. The 1, 2 and 3 stratums have shown the biggest increases in the period of 2014 and 2015, reaching a 19,6% for the stratus 1 a 11.8% for the stratus 2 and a 11.8% for the stratus N.3 *

*Boletín Trimestral de las TIC

BoP

¿Why should we study the base of the pyramid?

¿Por qué los jóvenes?

● The young people of the BoP, just like any other segment, are the ones that feel more comfortable and are more familiar with the digital world.

● It allow us to predict trends in the short and middle term as this segment will become the new consumer that acts and thinks under a completely different criteria compared to other generations because of their closeness with the digital world.

● The statistics show that according to the age range, the internet users are a 23% Teens (13-17 y/o) and a 59% of young adults (18-34 y/o)*

● According to the Colombian population

between 15 and 19 years old is 4´345.112**

**http://goo.gl/Ltaa0e*http://goo.gl/rp4cCd

Objectives and Methodology2

Objective

Título de la sección //

Obtain the current and future panorama of the role that technology and Internet has in a context of use and consume of services and products in the young base of the pyramid regarding various categories of their expenses.

Specific Objectives● To know the current perception, pain points and drivers of the BoP

regarding the digital world.

● To study the standards and cannon of use and consume of the BoP of the digital world.

● Identify brands and digital services that have a positive or negative perception for the BoP

● Make a contrast of the cultural differences about the use of technology and internet in rural and urban scenarios.

● Know the main aspirations of digital and technological consume inside the BoP.

Metodología

On a methodological level the research was carried out through:

● Desk Research of the state of the art about studies focused on the Base of the Pyramid, Demographic data and consumption on this socioeconomic segment.

● Field observation through ethnography in public spaces and commercial establishments related to the digital environment (cellphone sellers, prepaid cards of cell phone services and device sellers)

● Semi structured interviews in-situ where according to official instances (DANE), you can find concentrations of home that belong to low income levels.

Perfiles

● Teens (15 - 19 y/o) NSE 2

● Young Adults (20 - 35 años) NSE 2

● Experts (Business Owners related to the digital and entertainment field: Devices sellers, Internet Cafes, selling and renting movies and videogames) NSE 2

MethodologyPlazas: The field work was distributed on two kinds of population

Rural (Outside Bogotá)

● Zipaquirá● Funza

Urban (Bogotá)● Southeast● West● Southwest

Sample Distribution PROFILE

TIPO PLAZA Teen Young Adult Expert

Urbano (Bogotá)

Southeast 1 2 3

West 1 2 2

Southwest 1 1 1

RuralZipaquirá 4 1 2

Funza 1 1 2

Total 8 7 10

11

The colombian population for 2010 was about 48 million people, from which, 38 millions belonged to the base of the pyramid according to the Interamerican Bank of Development. This answers to a 77% after increasing a percentage point from the 2000 year. In this period the number reduced a 17% of the population in poverty conditions and the vulnerable population increased a 33% .

The size of the market* from the base of the pyramid in Colombia was about 60 Billions dollars for 2010, increasing a 20% being compared to the year 2000. The population in poverty decreased a 9% and the vulnerable increased a 39% mostly because of an income increase rather than a demographic phenomena.

*Miles de millones de dólares

<4 USD/ día

4 -10 USD/ día

*MIllones de habitantes

Rangos de ingresos

*https://goo.gl/N3Gbmx

Context

12

Taking in consideration the distribution of the BoP in the Colombian Socioeconomic Levels, the biggest sector of all is the NSE 2 (represents the 41% of the total population) making it the main focus of the study.

This study will take as reference the capital city of Colombia and their Socioeconomic distribution.

Main focus of the study

Context

BoP in Colombia

Results3

● Education: Most of them is currently studying the middle school, and a low minority works.

● Job/Income: Activities like selling candies among their friends, working on convenience stores. Incomes close to 1 UDS per day.

● Content and media consumption: Mostly social media and consults for musical contents and technology.

● Social Mobility: Low. The projections to the future rounds around commercial business and a military or police career.

Profile descriptions - Age

Teens

Young Adult

● Education: The usually have technical studies and the less part college studies.

● Work/Income: Technical services and basic professional ones. Declared incomes of 7 USD per day.

● Content and media consumption: It’s in part determined by their sons. They identify an affinity to consult news.

● Social Mobility: Middle. The projection to the future rounds about commercial business and service work. The main La proyección a futuro gira en torno a negocios comerciales y trabajando en servicios. The main reason of mobility is the access to superior education in most of the cases of public initiative.

Urban Concentrations

Rural communities

Young Adults20-35 Years Old

Teens15-19 Years Old

Field WorkersIndustrial Workers

Basic Studies or uneducated

Students (Some identified cases of uneducated workers)

Basic studies with possibility to get superior ones.

Students

Basic studies with possibility to get superior ones.

Part Time employees or Temporaries

Industrial WorkersService industryProfessionals

EducationBasic/High School/College

Framework of understanding profilesAge + Scenario

Framework of understanding profiles

Urban Concentrations

Rural Communities

Adultos Jóvenes20-35 años

Teens15-19 años

According to the age range and the scenario we defined the perceptions the target has abut the main concepts of the project:

Digital: Practicality: Quick

and easy

Spare Time:The remaining time

Spare Time: At the end of the

workday

Tiempo libre: Routine, Leisure and Coexistance

Digital: Connectivity,

Modernity

Digital: Leisure, Education

Digital: Leisure, Education

Free Time: (Reduced because of the liabilities with education and work)

Leisure

17

The multifunctionality of the Smartphones have made this device to have a main role on the digital consumption. Inside the base of the pyramid is common that a Smartphone is the only one present in a lot of homes, even considering it as the only one that is essential for their needs.

Smartphone: The axis of the digital interaction among the BoP

It mediates most of the interactions of digital use and consume.

It’s a strong source for consults and it’s an important element of the purchase decision.

The type of connection sets limits to each experience and the presence of WiFi expands everyday.

Acquired according their screen size, cost, brand and storage

It allows a hypermedia consume of among contents and formats.

It opens the road to new options of e-commerce and payment methods.

18

Hábits1. Search of services and products that fit in their purchase power2. Necessity of warm relationships and informal commercial speeches3. Advanced users and laggard offer4. Great perception of consignment and collect companies

Devices5. Smartphones: Multi-category killer6. Size of the screen: Main driver while purchasing a new device 7. Alternative Brands and Apps.

Services8. E-commerce as a second option9. WiFi redefining spaces 10.Multiple uses of social media, specially Facebook11.Digital Services (Ticketing) outside the top of mind

Content12.The decline of TV, obsolete contents13.The big opportunity for local content consume.

Main Insights

19

The economy of the BoP is based on limited income that don’t allow great expenses, so consumers have chosen small presentations and value packages that even if at the end they pay more other socioeconomic stratas that have a bigger capacity of purchase.

BUSINESS OPPORTUNITY

Search of services and products that fit in their purchase power

I don’t have a cellphone contract, when I'm going to be out i just make a recharge some mobile data and it last about 2 daysTeen - Zona Rural

Virgin charges for seconds. The fragmentations of the service is more adequate for the consume criteria of the BoP.

We identified the consume of prepaid service of DirectTV in rural scenarios of the NSE 1.

Brands can take advantage of this by using new charging platforms. Based on this phenomena two scenarios can be generated:

1. Fragmentation of a service in smaller unities than usual: Ex. Prepaid mobile data.

2. Definition of products and services that are sold in bigger quantities than usual (Familiar Size package like) Ex. Mobile data plan for various mobiles with a discount for volume.

“

20

”What is being more purchased are data, not

minutes as people prefers to have internet to be texting,

that’s how they communicate now, it’s cheaper”

Seller at Convenience Store - Rural Community

“More than 20 people from the upper towns comes to pay for Direct TV each week”

Seller at Convenience Store - Rural Community

Material POP en tienda de barrio zona rural

21

The promotion and selling of products face to face keeps being effective for the base of the pyramid. Also the graphic resource of a poster that announce the promotional and limited time of the offer is helpful to let people know it has to be exploded before it ends.

BUSINESS OPPORTUNITY

Necessity of warm relationships and informal commercial speeches

Everyone knows that Claro charges a lot and there are other ones that are cheaper but it’s the one that has a better signal.”Teen - Rural Community

Personalized impulse Force of sell that boost the subscription to services (Required on rural zones)

Se identificó el consumo de Directv prepago en zonas rurales NSE 1.

The business opportunity is to replicate the common characteristics of the personalized and informal contact, adapting them to the established communication channel with the target. The commercial speech of credits and the limited time offers is still valid and is an element to be highlighted.

“

22

“Movistar y Tigo are well known but they are seen as

bad companies because they don’t have a lot of signal over

here” Teen - Rural Community

“What people recharges more is Comcel (Claro)”

Convenience Store Seller - Rural Community

Force sell of Claro in Rural community

23

In some areas outside the urban body is possible to observe severe difficulties to pay for public services, making clear that the logistics is not the adequate and the technology (or human resources in case the solution can be solved with hours/men) is not being used to solve real demands leaving open several opportunity areas.

BUSINESS OPPORTUNITY

Advanced users and laggard offer

There should be another way to pay this, look at this queues, like there were anything else to do... ” Young Adult - Rural Community

The familiarity with technology shows that the base of the pyramid is now a fertile land to develop and implement new tools that should be focussed on the brand's, goods and services close to the target. “

Opens opportunity areas to create alternative payment methods such as:

- Electronic payments for banked people.

- Agreements of traditional banks of microcredits in areas where they have presence.

- Agreements with payment and transfers networks.

- Take advantage of the convenience store of the neighbourhood (Like the recharge of data and minutes)

24

“To make this faster there should be at least more people the days that the bills expires,

that it’s when the queue is longer. ”

Teen - Rural Community

“I don’t know if I can cancel the gas service on a website or by phone, at least they should

tell us. ”Joven adulto - Zona Rural

Fila de pago servicios públicos zona rural

25

We identified a similar phenomena of the ROPO effect (Research Online Purchase Offline) that occurs between a physical store and the intermediary of consignment and collection that makes possible to end the transaction in digital scenarios.

BUSINESS OPPORTUNITYThe relevance of this player in the transactional change can be exploited in terms of inclusion and visibility of the purchase model of products and services that are not currently considering the creation of alternatives that increase the penetration of the service through technology.From a financial point of view it’s possible to create additional products targeted to this segment linked to this mediator, as the financial players exclusive to the Base of the pyramid usually do

Great perception of consignment and collect companies

I have purchased online but only things on sale, sometimes I pay in some Efecty as they have a lot of stores. Young Adult - Urban “

Brands to consult and local

negotiation

Brands to end transactions

>

Adidas, is one of the aspirational brands of the target, it allows payments in subsidiaries of Efecty, generating an identification number of the transaction, however this is not well communicated on their site.

26

“Sometime ago I bought some coupons for extreme sports, but

that was when I had cards, but they were very expensive and

without them is a lot more difficult”

Young Adult - Urban Zone

Bank subsidiary of wwb. Micro Finance bank

Voucher for Efecty Payment

27

The most inspirational device, above music players, laptops, TV’s and videogame consoles. The all in one quality of the Smartphones brings a lot of resources that make them useful and fun to use for all the age ranges. Also, it is possible to observe more adults from 35 to 45 years old that start to use them.

BUSINESS OPPORTUNITY

Smartphones: Multi-category killer.

I have music, movies, if I get bored I just start playing or chatting with my friends, almost everyone in the classroom has one”Teen - Urban concentration

The communication channel (Mobile data) with this audience is already open, it can be used by brands as a close interaction channel answering to the configuration of use of the target. “

● Teens: Leisure and entertainment (Facebook Messenger , Image editing apps -B612-, Whatsapp, juegos)

● Young Adult: self justification: Practicality and connectivity at work (Whatsapp, email, text editing and spreadsheets )

The average time of connection of the interviewed is 8 hours distributed in

different moments of the day. A mobile connection mostly.

Most of the interviewed has owned a Smatphone with at least for one year of

use and they declare that inside their neighbourhood most of the people has one.

28

“If someone make me choose between a Smartphone, laptop,

a console, and a TV, all day long I would choose the Smartphone,

I listen to music all the time, even though I don’t really call

anyone. Teen - Rural Community

“We use the Smartphone even to communicate inside the house, just

not to be screaming around the house, also she (her daughter)

shows me some games and Facebook”

Young Adult - Urban Concentration

Joven adulto transporte intermunicipal

29

The interviewed device vendors declare the main criteria of selection of Smartphones is the relation between the size of the screen and the cost of the device.

OPORTUNIDAD DE NEGOCIO

Size of the screen: Main difference while purchasing a Smartphone.

Generalmente preguntan por el celular más grande que tenga Whatsapp y ahí van escogiendo según precio” Vendedor Celulares Urbano El criterio de fabricación de nuevos dispositivos debe

priorizar la característica del tamaño de pantalla, esta característica también le permite a las marcas incorporar con argumentos de peso, contenidos o herramientas de edición que prioricen lo visual en el diseño y funcionalidad de las herramientas.

“

Other relevant criteria También fueron referidas otras características relevantes a la hora de comprar Smartphone en el siguiente orden de frecuencia de menciones:

● Marca● Apps preinstaladas● Capacidad de almacenamiento● Cantidad de procesadores o

núcleos

Un celular grandecito tiene más presencia y uno puede ver videos Teen rural cotizando equipos“

30

“Me gusta usar B612 para editar las fotos, a veces veo

capitulos de novelas en el celular y para que se vea bien

me compré uno de buena pantalla, con cámara... ”

Teen - Zona Rural

“Había visto el celular en el centro y me lo compré porque me

habían robado el anterior, éste tiene buena pantalla y es rápido ”

Joven adulto - Zona Urbana

Vitrina de venta rural: Celulares y small appliances

31

Las marcas y las aplicaciones se seleccionan de acuerdo a la popularidad, que se asocia con la calidad y respaldo, pero en algunos casos, el precio hace que el target adquiera marcas alternativas.

OPORTUNIDAD DE NEGOCIO

Marcas y apps alternativas

Estos traen una tienda diferente de la de Google, no sé si las aplicaciones serán muy diferentes pero los que la compran no le ven problema ” Vendedor Equipos - Rural“

El mercado de las aplicaciones al que el target está expuesto no gira exclusivamente en torno a las suministradas a través de Google PlayStore. Se puede explorar el alcance de las alternativas más masivas y dimensionar el mercado para proyectar nuevas oportunidades de negocio.Los fabricantes de dispositivos y contenidos deben tener en cuenta la tendencia de crecimiento de la competencia por fenómenos como los lanzamientos de celulares inteligentes de bajo costo como el Freedom 251 cuyo costo es casi 100 veces inferior al iPhone.

Frecuencia de uso encontrada en el trabajo de cam

po

Los vendedores son quienes asesoran a los compradores y confirman la información que en pocos casos se ha buscado en la red.

Algunas de las marcas identificadas en el trabajo, a pesar de ser dispositivos Android, no tienen acceso a Play Store.

32

La compra online para este target funciona como una opción útil cuando se dificulta la compra directa. Es decir, se reduce únicamente a la contratación de servicios, y de productos difíciles de encontrar en el entorno cercano.

OPORTUNIDAD DE NEGOCIO

E-commerce: aún en un segundo plano

No compro nada por internet, casi siempre piden tarjeta de crédito y no tengo ” Joven adulto - Urbano

Lo que funciona actualmente en este segmento es la combinación de lo offline y online, esto ayuda a superar las barreras de miedo al riesgo y la desconfianza, una de las opciones a las que se puede recurrir es el pago en efectivo a contraentrega (Ej.Temen comprar algo que no vieron físicamente, temor a exponer sus datos o a ser víctimas de fraude, a enfrentar largos procesos en caso de tener el item equivocado) Es importante reiterar que el diseño y la exclusividad a costo asequible permite el salto de las barreras.

“

Búsquedas concretas:La compra online queda determinada por la disponibilidad y no responde al call to action tras la exploración. La exigencia de bancarización suele ser una barrera que solo se supera por servicios que permiten el pago en puntos de recaudo de efectivo. Existen proveedores que transforman las tiendas de barrio en puntos de pago y recarga de servicios digitales.Actualmente no se identifican transacciones enteramente digitales y móviles relacionadas con ningún sector de la industria.

33

“Una vez pedí un collar a corona de papel que es una

tienda virtual, acá en el barrio no hay cosas muy lindas y en

este uno paga cuando le entregan la joya ”

Joven adulto - Zona Urbana

Venta de ropa zona urbana

34

En zonas rurales y urbanas se han dispuesto redes inalámbricas en las zonas de mayor afluencia de público, esto genera una competencia cercana con los servicios de telefonía fija, televisión por cable y proveedores de internet.

OPORTUNIDAD DE NEGOCIO

WiFi redefine el espacio público

Acá en la plaza hay WiFi a veces nos encontramos varios y por eso o los turistas se hacen ahí para revisar cosas en internet ”Teen - Rural

Los establecimientos y las marcas de pueden optimizar la relación con los clientes finales por medio de estos canales de comunicación que se creen cerrados o poco usados por este target.

Además, este uso del espacio público hace de las plazas un punto propicio de generación de experiencias BTL o marketing alternativo

“

El ministerio de las TIC acompaña desarrollos que potencien esta herramienta (programas de fidelización de clientes y ) capacitaciones sobre generación de contenido.

35

“En el barrio una amiga nos rota la clave a las de la

cuadra y todas nos colgamos de ahí ”

Teen - Zona Rural

“Cuando uno baja al centro hay varias redes públicas, de

bibliotecas y universidades uno ahí se ahorra sus daticos ”

Joven adulto - Zona Urbano

Teen zona rural

36

Las funcionalidades de facebook son elásticas y los usuarios recurren a ellas para que se adapten a sus necesidades. Es un punto de encuentro básico, común y sencillo de usar que satisface al target. Es un lugar donde quieren estar constantemente presentes.

OPORTUNIDAD DE NEGOCIO

Multiuso de redes sociales, principalmente Facebook

Siempre que vienen, así sea a hacer tareas , uno los ve que tienen su ventanita del face abiertaExperta - Rural

Aunque la tendencia global indica que Facebook está siendo abandonado o no adoptado por los jóvenes a nivel global, en la base de la pirámide colombiana aún resulta importante generar presencia en esta red social. Esta oportunidad aplica más para negocios pequeños o medianos que consideran que Facebook es un espacio exclusivo para grandes marcas de tráficos masivos.“

● Consulta de contenido (información y entretenimiento)

● Chat Tiempo real● Anuncios clasificados

alternativos (grupos temáticos por categoría)

● Contactar conocidos y cercanos

● Consulta y creación de eventos

37

Para mi es suficiente con tener facebook gratis , no es que use mucho el resto de cosas. Fuera de la casa Teen - Rural

“

A facebook solo le falta poner el boton comprar porque un montón de marcas y gente pusieron ahí catálogos de los productos Joven adulto - Urbano

“

38

OPORTUNIDAD DE NEGOCIO

Rara vez pedimos domicilios y si lo hacemos usamos el teléfono normal...”Joven adulto - Urbano

Hay mayor potencial en aplicaciones sobre reserva o chequeo de status de los restaurantes favoritos que incluyan información sobre puntos de comida informal o pequeños puntos y locales comerciales que ofrezcan estos servicios en las zonas residenciales de la Base de la Pirámide que suelen estar distanciadas de los epicentros comerciales.

“

El uso de aplicaciones móviles para domicilios y entradas es baja porque las marcas que suelen tener presencia en estas herramientas están fuera del alcance económico, y contar con dinero extra para comer suele ser aprovechado para comer fuera.

Servicios digitales (ticketing-domicilios) fuera del top of mind

39

“Yo bajé una aplicación de domicilios y una de escanear hace como tres meses, pero

usted cree que me he puesto a mirarla? la de escanear si es útil,

para tener documentos, la otra se me olvida ”

Joven adulto - Zona Urbana

Pastelería y puesto ambulante Barrio BdP

“las pocas veces que como en restaurante prefiero salir,

algunos amigos piden cuando estamos reunidos varios”

Joven adulto - Zona Urbana

40

Mientras que el adulto joven valora la disponibilidad de contenidos, el teen aprecia la posibilidad de explorar y descubrir .

OPORTUNIDAD DE NEGOCIO

TV en decadencia, contenidos obsoletos.

Guardé el televisor porque ya no quería ver lo que daban; novelas y eso... lo conectamos para ver pelis no más y eso que algunas veces las vemos en el compu” Joven Adulto- Urbano

El canal de comunicación (datos móviles) con este público objetivo está ya abierto, se puede emplear por las marcas como un canal de interacción cercana respondiendo a la configuración de uso de cada target.“

La televisión está debilitadaEn ambos grupos de edad la valoración del contenido en línea se mantiene por encima que la de medios tradicionales como la TV. El Smart TV no es un dispositivo común en este segmento Prima el consumo de contenidos audiovisuales por youtube. Incluso la publicidad en línea se percibe más interesante y pertinente, sienten que les habla a ellos (cosa que no ocurre en TV)

41

”En el celular veo youtube, y hay videos de cancerbero, de

anime, y de caídas, hay muchas cosas ”

Teen - Zona Rural

“Juego en el compu preguntados, así uno aprende

más que viendo televisión aunque también chateo y oigo

música mientras juego”Joven adulta - Zona Urbana

El único TV está inactivo en una casa de zona urbana

42

Las RRSS de los entrevistados están configuradas principalmente por personas que hacen parte del entorno local con las que se extiende el vínculo virtualmente a través de chats e intercambio de imágenes.El carácter digital de la red no implica una expansión geográfica de los contactos y se pone de manifiesto un interés en la información local.Actualmente no existe un equivalente a una prensa digital local generadora de contenidos.

OPORTUNIDAD DE NEGOCIO

Interés por contenidos locales

Facebook lo uso mas que todo para hablar con mis amigos que igual viven acá cerca pero mantenemos la comunicación por el celular”Joven adulto - Urbano

El desarrollo de aplicaciones basadas en la geolocalización permite la filtración de contenido de acuerdo al los datos de ubicación del usuario. Por medio de este elemento se podría implementar una serie de aplicaciones que generen contenido local pertinente para el usuario (sin necesidad de los estándares exigidos por la PlayStore de Google. Ya que los equipos con los que cuenta la BdP pueden acceder a tiendas alternativas )

“

El distanciamiento de los medios tradicionales de difusión de información priva a los entrevistados de información actualizada sobre su barrio o puebloConstruir una prensa digital alternativa podría tener una buena aceptación dentro de la comunidad de la bdP que está más interesada en el panorama local que en el nacional.

The Cocktail Analysis es una agencia de investigación de mercados especializada en tendencias de consumo,

comunicación y tecnología.

Madrid

C/ Salamanca 17 28020 Madrid , España

+34 91 567 06 05 info@tcanalysis.comtcanalysis.com

México D.F. San Luis Potosí 196 Of. 402Colonia Roma Norte06700 - México D.F.

+52 55 65482935info@tcanalysis.comtcanalysis.com

Santiago de Chile

Apoquindo 5400, Las Condes, Santiago

+ 56 9 7649 2831info@tcanalysis.comtcanalysis.com

Bogotá

Cra. 11 Nº 81-26 Oficina 301 Bogotá, Colombia

+57 1 3000078 info@tcanalysis.comtcanalysis.com

Deep Dive Inmersion PayPal //

Muchas gracias.

44

Enero 2016