One of the first times I went to the supermarket here in Chile, I was ecstatic to see the wall of "American" style Lays potato chips. A little piece of home. As I continued to make visits to the grocery store though, I found myself wishing there were more options to choose from. Just a few months ago I was the pickiest eater you could have ever met. But Chile has apparently made me a changed woman, because I want to try any and every food I see. It was sad for me then, to see the options for new flavors shrink as I progressively tried all the flavors of snack foods and candy and soda on the shelves.
I know we talked about market research last week, so I have been trying to figure out how this lack of diversity correlates to Chilean culture. I have noticed a lack of variety within restaurants as well (you can order chorrillanas or an empanada). I´m assuming that if this result did come from market research, it would have resulted from Chileans´ risk aversive tendencies. They stick to what they know and are comfortable buying the same products and flavors that they can already trust.
I think this may make the market in Chile less competitive, but it seems to be working for them.
Wednesday, April 23, 2014
Wednesday, April 16, 2014
Marketing with Lies?
This weekend, some friends and I went to Santiago. Friday night we found ourselves in Bellavista, and as we were walking past a street corner, a man called out to us to inform us that we were specially invited to this club down the road, where there was an open bar for the next hour if we went right now. So we asked how many free drinks we would get exactly, which he replied with "1, 2, 3, 4, 5... however many you want!" So we agreed to go with him to this club, walked inside, and he directed us to the dining area first, because apparently we had to buy a meal in order to get the free drinks. We thought one chorillana would be fine, because we all love food, and an open bar was waiting for us on the other side of this plate. But then our server told us that we'd have to buy something else since one chorillana only covered 4 of the 6 of us. He then informed us that the number of free drinks depended on the amount of food we purchased, and that the open bar would only really last for another 20 minutes.
An experience like this makes it awfully difficult to trust restaurant and club promoters. They are only looking out for their own interest- which is to get paying customers in the building. In the states, in Des Moines at least, there are no street corner promoters, but it's also less common to see misleading promotions and deals. What you see is generally what you get. Here in Chile, though, I feel like they are always kind of trying to trick you, whether it's with an unmentioned covercharge or a string they forgot to say was attached. You have to be careful about which restaurants you trust, otherwise you'll end up paying $20 for an "open bar." (Which we didn't- we left. In a slight rage.)
An experience like this makes it awfully difficult to trust restaurant and club promoters. They are only looking out for their own interest- which is to get paying customers in the building. In the states, in Des Moines at least, there are no street corner promoters, but it's also less common to see misleading promotions and deals. What you see is generally what you get. Here in Chile, though, I feel like they are always kind of trying to trick you, whether it's with an unmentioned covercharge or a string they forgot to say was attached. You have to be careful about which restaurants you trust, otherwise you'll end up paying $20 for an "open bar." (Which we didn't- we left. In a slight rage.)
Wednesday, April 9, 2014
Differences in Quantity
In reading the introduction of chapter 6, I recognized much of Chilean society. The book mentioned that in many countries in Europe, items had to be grouped into smaller packages in order to be sold. This is due to the smaller living spaces in many metropolitan areas in Europe, and the fact that consumers would prefer to buy less at a time in order to save space.
In my home here in Chile, everything is bought in smaller quantities- from toilet paper to bread to eggs. This is because the apartment doesn´t have a lot of room to store extra supplies. This causes my host mom to go to the store a few times a week. Comparing that to my home in the U.S., when I was growing up my mom would always buy things in bulk for my sisters and I, enought to last the whole month, because it was cheaper this way and more convenient than making multiple trips out to the store. Here, though, it seems to be the opposite case. Supplies and food are sold in smaller quantities and smaller packages, and people make more visits to the store.
It´s interesting to see how opposite this is, as I feel it reflects on Chilean style a little bit, which is more laid back and day to day. In the U.S. however, people would rather save time and money by making just one trip to the store every few weeks, because the Northern American style of living is more fast paced and people try to make their time as efficiently spent as possible.
In my home here in Chile, everything is bought in smaller quantities- from toilet paper to bread to eggs. This is because the apartment doesn´t have a lot of room to store extra supplies. This causes my host mom to go to the store a few times a week. Comparing that to my home in the U.S., when I was growing up my mom would always buy things in bulk for my sisters and I, enought to last the whole month, because it was cheaper this way and more convenient than making multiple trips out to the store. Here, though, it seems to be the opposite case. Supplies and food are sold in smaller quantities and smaller packages, and people make more visits to the store.
It´s interesting to see how opposite this is, as I feel it reflects on Chilean style a little bit, which is more laid back and day to day. In the U.S. however, people would rather save time and money by making just one trip to the store every few weeks, because the Northern American style of living is more fast paced and people try to make their time as efficiently spent as possible.
Wednesday, April 2, 2014
Starbucks Take 2
In response to the questions posted on my last post:
"Look at the place they have picked at the Boulevard and describe the persons you see; is is a comfortable place to be in, to enjoy coffee or any liquid they make based on coffee?"
As you walk by the Starbucks at Boulevard, it reeks of upper middle class. Not in a bad way, but it's designed in a way that makes it clear that it is not just any coffee shop. The store itself is tidy and pleasant to look at. The outdoor patio, as well, is crisp looking and relaxed, with foliage and an open view of the street in front of the mall. This way, people can watch you enjoy your high priced coffee, and know that you're better off than them. Or so the brand would make you think. Starbucks has really achieved something big with their brand recognition, even internationally.
"Take a look at the segmentation chapter and comment on the position of Starbucks from that perspective. You know that inside the Boulevard is another coffee place. And of course in the other two malls as well. So, do the offerings differ that much because of the social segmentation?"
One thing I thought was interesting from checking out the chapter in segmentation was that international segmentation is done at the level of "macrosegmentation," or by looking at the entire country. As has become clear in recent years, there is a growing middle class in Chile. Starbucks took notice of that growth, which happens to be their target customer, and placed their stores at strategic locations within the country. The market potential in a country with growth as such is perfect for a company like Starbucks. It promises sustainability. The brand, also, is already recognized within the country from media that has come from the United States. And the brand is recognized here as a symbol of status. With that being said, I would say that the offerings don't different much from other coffee shops in the area (it's all espresso when it comes down to it), but the biggest draw is the social status drinking a Starbucks drink.
"Look at the place they have picked at the Boulevard and describe the persons you see; is is a comfortable place to be in, to enjoy coffee or any liquid they make based on coffee?"
As you walk by the Starbucks at Boulevard, it reeks of upper middle class. Not in a bad way, but it's designed in a way that makes it clear that it is not just any coffee shop. The store itself is tidy and pleasant to look at. The outdoor patio, as well, is crisp looking and relaxed, with foliage and an open view of the street in front of the mall. This way, people can watch you enjoy your high priced coffee, and know that you're better off than them. Or so the brand would make you think. Starbucks has really achieved something big with their brand recognition, even internationally.
"Take a look at the segmentation chapter and comment on the position of Starbucks from that perspective. You know that inside the Boulevard is another coffee place. And of course in the other two malls as well. So, do the offerings differ that much because of the social segmentation?"
One thing I thought was interesting from checking out the chapter in segmentation was that international segmentation is done at the level of "macrosegmentation," or by looking at the entire country. As has become clear in recent years, there is a growing middle class in Chile. Starbucks took notice of that growth, which happens to be their target customer, and placed their stores at strategic locations within the country. The market potential in a country with growth as such is perfect for a company like Starbucks. It promises sustainability. The brand, also, is already recognized within the country from media that has come from the United States. And the brand is recognized here as a symbol of status. With that being said, I would say that the offerings don't different much from other coffee shops in the area (it's all espresso when it comes down to it), but the biggest draw is the social status drinking a Starbucks drink.
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