Description
This is about consumer Buying behaviour in paraguy and Indian brands which can be launched there.
Paraguay
The Republic of Paraguay
• • • • • • The Republic of Paraguay is a landlocked country in the heart of South America Area: 406,750 sq km Capital city: Asuncion Guaraní and Spanish are both official languages Population is 6.8 million (2008 est.) Age structure:
0-14 years: 37.2% 15-64 years: 57.7% 65 years and over: 5.1% (2007 est.)
Map Of Paraguay
• •
GDP - real growth rate:4% (2006 est.) GDP - composition by sector:
Agriculture: 27.5% Industry: 24% Services: 48.5% (2005 est.)
Asuncion
• •
Labor force - by occupation: Agriculture 45% Household income or consumption by percentage share:
lowest 10%: 0.5% highest 10%: 43.8% (1998)
Cuidad del este
The People of Paraguay
• Paraguayans are traditional, conservative people who strive for tranquility. • Paraguay has historically been voluntarily isolated. In the 19th century, the government tried to seal the borders in an attempt to become self-sufficient. • More recently, very strict government controls have isolated the people from most outside information. • Inflation, foreign debt and high unemployment plague this young democracy. • There is a large gap between the rich and poor. A few elite families control nearly all the resources, and economic opportunities are limited to urban dwellers.
Etiquettes in Paraguay
• • • • • • • • • • • • • • Meeting and Greeting Men and women always shake hands when greeting, even if they have met earlier in the day. Paraguayans kiss twice when meeting friends and family members. Body Language Good posture is important. Try to keep your feet on the floor, and never prop them up on a piece of furniture. A chin flick (rubbing your hand under your chin) means “I don't know.” Corporate Culture Paraguayans may be late, but visitors are expected to be punctual for business meetings. Business appointments often begin 10 to 20 minutes late. Connections are more important than expertise. Personal relationships are more important than business relationships. Take time to make “small talk” with colleagues before the meeting begins. Negotiating and decision making will probably proceed slowly. Be patient. Face-to-face communication is vital to doing business in Paraguay. You will only be able to go so far communicating by phone or fax. Hire a local contact to represent you in the Paraguayan business community. Send the same company representative to negotiate deals. A new person will need to start from scratch.
Etiquettes in Paraguay
• Helpful Hints • Paraguayans are polite and soft-spoken. They do not appreciate shouting or rude behavior. Exhibit patience in all of your actions. • Paraguayans are very proud of their country and will appreciate your interest in it. • Don't give your opinion about local politics. • Refer to yourself as a North American or as a citizen of the United States instead of as an American. • Do not photograph anything associated with the military, including soldiers, bridges or equipment. • Especially for Women • Machismo is strong, but women are respected. Men will go out of their way to avoid confronting or offending a woman.
Etiquettes in Paraguay
Dining and Entertainment in Paraguay
• An 8:00 p.m. social engagement could begin at 9:00 or 9:30 p.m. Dinner is usually served around 10:00 p.m. and never earlier than 9:00 p.m. Never invite anyone for a 7:00 p.m. dinner, which would be far too early. Invite people at 8:30 or 9:00 p.m., and serve dinner at 10:00 p.m. Lunch is the main meal of the day. Businesspeople and schoolchildren go home at noon to have lunch with their family. It may be followed by an hour-long nap before everyone returns to work and school. Guests are served full plates of food. Show that you enjoy your food. Eat dinner and accept seconds, which will probably be pressed upon you. Not finishing all the food offered is a compliment to your host. When dining continental style, it is customary to hold your fork constantly in your left hand. Paraguayans share. They buy rounds of drink and offer food to all. Dinner is a social event. Do not talk business unless your host initiates it.
• •
• • •
Dress
• • • • Paraguayans dress conservatively. Hair, nails, makeup and dress are all important, regardless of a person's economic status. Even the poorest people are well groomed and clean. Men should wear dark suits and ties for initial meetings. Follow your Paraguayan counterparts' lead in dressing after the first visit. Women should wear suits and dresses.
Gifting in Paraguay
• Give high quality gifts. • Gifts from your country and home region will be appreciated. • Giving a knife suggests “cutting” the relationship. Including a coin with the knife can blunt the “cutting.” This is an old tradition. • Give your hostess flowers and chocolates. Sweets (cookies and candies) from Argentina are prized by Paraguayans. • Gifts for children are appreciated. Barbie dolls and Power Rangers are popular with young children, and older children will appreciate t-shirts and baseball caps (Hard Rock Cafe, Nike, NBA, Major League Baseball). • For business, give pens and gifts from your home region. • If you are giving a gift with your company logo, it should be discreetly displayed.
Imports Exports and Industry of Paraguay
• exports - commodities: soybeans, feed, cotton, meat, edible oils, electricity, wood, • Imports - commodities: road vehicles, consumer goods, tobacco, petroleum products, electrical machinery • Industries include two cement plants, at Vallemí and Itapucumi, and a Paraguayan-Brazilian steel mill at Villa Hayes. • Food-processing plants include slaughterhouses; flour mills; sugar mills; oil mills producing cottonseed and peanut oils for domestic consumption, as well as castor, tung, cocoa, and palm oils for export; related industries that process the by-products of oil extraction; and mills that produce yerba maté.
Consumer Buying Behaviour
• 50% of the wealth is controlled by 2o% of the population • Market segmentation in Paraguay is often based on the simple distinction between urban versus rural population. • Since the historical inequality in incomes hold in Paraguay, global entrants have to focus on the urban markets, leaving the lower-price end of the range to local companies. • Research has shown that adult Latin Americans want detailed product information in advertising and tend to reject image-oriented ads.
http://faculty.css.edu/salwan/mgt3530new/
CBB while purchasing Food Products
• The lower income group is highly price sensitive – their purchases generally include cereals and occasionally meat. • The middle income group can afford to have meat products in all their meals. • The elite has a much larger spending power and show a great interest in gourmet foods. • From all indications, those in Paraguay are as into their meat as they are their spicy food. • Native foods in Paraguay are rich in meat, herbs and spices.
…From ITC
Product to launch in Paraguay
• ‘Ready To Eat’ Products from ‘Kitchens of India’ • ‘Kitchens of India’ Conserves
– Mango & Saffron Conserve – Apple & Cinnamon Conserve
• Bingo ! • Promotional vehicle
– In Asuncion during July each year, the "Feria Internacional de la Ganadería, Industria, Agricultura, Comercio y Servicios", several large foreign exporters of high-value products have a strong presence.
http://argentina.usembassy.gov/paraguay.html
Reasons
• The market trend for high-value or processed products is expected to increase along with the increasing number of women taking jobs outside the home, and the increased urbanization of the country. • With the main urban center of Asuncion comprising about 10 percent of the population, reaching a significant portion of the more affluent population is not difficult.
Typical food purchased
Category Staple Starches Amount Spent by Family of Five Per Month (US$) $35.81 Sugar, Mandioc, Rice Principle Products by Volume
Meats and Meat Products
Fruits Milk and Milk Products
$74.42
$43.41 $35.10
Beef and Products, Chicken,
Pork Bananas, Mandarin Oranges, Melons Fresh Milk
Bread and Products
Vegetables Total
$13.13
$28.66 $230.53
Bread, Cookies
Beets, Peas, Carrots
Prospects for Exporters
• Some of the goods imported into Paraguay are
Canned products in General Dietary products Canned vegetables (corn, peas) Seasonal foods Pancake Mixes Mixes and Fillings Milk and Dairy Producsts Drinks in general Cereals Snack foods Frozen and conserved products
Thank you…
doc_323888384.pptx
This is about consumer Buying behaviour in paraguy and Indian brands which can be launched there.
Paraguay
The Republic of Paraguay
• • • • • • The Republic of Paraguay is a landlocked country in the heart of South America Area: 406,750 sq km Capital city: Asuncion Guaraní and Spanish are both official languages Population is 6.8 million (2008 est.) Age structure:
0-14 years: 37.2% 15-64 years: 57.7% 65 years and over: 5.1% (2007 est.)
Map Of Paraguay
• •
GDP - real growth rate:4% (2006 est.) GDP - composition by sector:
Agriculture: 27.5% Industry: 24% Services: 48.5% (2005 est.)
Asuncion
• •
Labor force - by occupation: Agriculture 45% Household income or consumption by percentage share:
lowest 10%: 0.5% highest 10%: 43.8% (1998)
Cuidad del este
The People of Paraguay
• Paraguayans are traditional, conservative people who strive for tranquility. • Paraguay has historically been voluntarily isolated. In the 19th century, the government tried to seal the borders in an attempt to become self-sufficient. • More recently, very strict government controls have isolated the people from most outside information. • Inflation, foreign debt and high unemployment plague this young democracy. • There is a large gap between the rich and poor. A few elite families control nearly all the resources, and economic opportunities are limited to urban dwellers.
Etiquettes in Paraguay
• • • • • • • • • • • • • • Meeting and Greeting Men and women always shake hands when greeting, even if they have met earlier in the day. Paraguayans kiss twice when meeting friends and family members. Body Language Good posture is important. Try to keep your feet on the floor, and never prop them up on a piece of furniture. A chin flick (rubbing your hand under your chin) means “I don't know.” Corporate Culture Paraguayans may be late, but visitors are expected to be punctual for business meetings. Business appointments often begin 10 to 20 minutes late. Connections are more important than expertise. Personal relationships are more important than business relationships. Take time to make “small talk” with colleagues before the meeting begins. Negotiating and decision making will probably proceed slowly. Be patient. Face-to-face communication is vital to doing business in Paraguay. You will only be able to go so far communicating by phone or fax. Hire a local contact to represent you in the Paraguayan business community. Send the same company representative to negotiate deals. A new person will need to start from scratch.
Etiquettes in Paraguay
• Helpful Hints • Paraguayans are polite and soft-spoken. They do not appreciate shouting or rude behavior. Exhibit patience in all of your actions. • Paraguayans are very proud of their country and will appreciate your interest in it. • Don't give your opinion about local politics. • Refer to yourself as a North American or as a citizen of the United States instead of as an American. • Do not photograph anything associated with the military, including soldiers, bridges or equipment. • Especially for Women • Machismo is strong, but women are respected. Men will go out of their way to avoid confronting or offending a woman.
Etiquettes in Paraguay
Dining and Entertainment in Paraguay
• An 8:00 p.m. social engagement could begin at 9:00 or 9:30 p.m. Dinner is usually served around 10:00 p.m. and never earlier than 9:00 p.m. Never invite anyone for a 7:00 p.m. dinner, which would be far too early. Invite people at 8:30 or 9:00 p.m., and serve dinner at 10:00 p.m. Lunch is the main meal of the day. Businesspeople and schoolchildren go home at noon to have lunch with their family. It may be followed by an hour-long nap before everyone returns to work and school. Guests are served full plates of food. Show that you enjoy your food. Eat dinner and accept seconds, which will probably be pressed upon you. Not finishing all the food offered is a compliment to your host. When dining continental style, it is customary to hold your fork constantly in your left hand. Paraguayans share. They buy rounds of drink and offer food to all. Dinner is a social event. Do not talk business unless your host initiates it.
• •
• • •
Dress
• • • • Paraguayans dress conservatively. Hair, nails, makeup and dress are all important, regardless of a person's economic status. Even the poorest people are well groomed and clean. Men should wear dark suits and ties for initial meetings. Follow your Paraguayan counterparts' lead in dressing after the first visit. Women should wear suits and dresses.
Gifting in Paraguay
• Give high quality gifts. • Gifts from your country and home region will be appreciated. • Giving a knife suggests “cutting” the relationship. Including a coin with the knife can blunt the “cutting.” This is an old tradition. • Give your hostess flowers and chocolates. Sweets (cookies and candies) from Argentina are prized by Paraguayans. • Gifts for children are appreciated. Barbie dolls and Power Rangers are popular with young children, and older children will appreciate t-shirts and baseball caps (Hard Rock Cafe, Nike, NBA, Major League Baseball). • For business, give pens and gifts from your home region. • If you are giving a gift with your company logo, it should be discreetly displayed.
Imports Exports and Industry of Paraguay
• exports - commodities: soybeans, feed, cotton, meat, edible oils, electricity, wood, • Imports - commodities: road vehicles, consumer goods, tobacco, petroleum products, electrical machinery • Industries include two cement plants, at Vallemí and Itapucumi, and a Paraguayan-Brazilian steel mill at Villa Hayes. • Food-processing plants include slaughterhouses; flour mills; sugar mills; oil mills producing cottonseed and peanut oils for domestic consumption, as well as castor, tung, cocoa, and palm oils for export; related industries that process the by-products of oil extraction; and mills that produce yerba maté.
Consumer Buying Behaviour
• 50% of the wealth is controlled by 2o% of the population • Market segmentation in Paraguay is often based on the simple distinction between urban versus rural population. • Since the historical inequality in incomes hold in Paraguay, global entrants have to focus on the urban markets, leaving the lower-price end of the range to local companies. • Research has shown that adult Latin Americans want detailed product information in advertising and tend to reject image-oriented ads.
http://faculty.css.edu/salwan/mgt3530new/
CBB while purchasing Food Products
• The lower income group is highly price sensitive – their purchases generally include cereals and occasionally meat. • The middle income group can afford to have meat products in all their meals. • The elite has a much larger spending power and show a great interest in gourmet foods. • From all indications, those in Paraguay are as into their meat as they are their spicy food. • Native foods in Paraguay are rich in meat, herbs and spices.
…From ITC
Product to launch in Paraguay
• ‘Ready To Eat’ Products from ‘Kitchens of India’ • ‘Kitchens of India’ Conserves
– Mango & Saffron Conserve – Apple & Cinnamon Conserve
• Bingo ! • Promotional vehicle
– In Asuncion during July each year, the "Feria Internacional de la Ganadería, Industria, Agricultura, Comercio y Servicios", several large foreign exporters of high-value products have a strong presence.
http://argentina.usembassy.gov/paraguay.html
Reasons
• The market trend for high-value or processed products is expected to increase along with the increasing number of women taking jobs outside the home, and the increased urbanization of the country. • With the main urban center of Asuncion comprising about 10 percent of the population, reaching a significant portion of the more affluent population is not difficult.
Typical food purchased
Category Staple Starches Amount Spent by Family of Five Per Month (US$) $35.81 Sugar, Mandioc, Rice Principle Products by Volume
Meats and Meat Products
Fruits Milk and Milk Products
$74.42
$43.41 $35.10
Beef and Products, Chicken,
Pork Bananas, Mandarin Oranges, Melons Fresh Milk
Bread and Products
Vegetables Total
$13.13
$28.66 $230.53
Bread, Cookies
Beets, Peas, Carrots
Prospects for Exporters
• Some of the goods imported into Paraguay are
Canned products in General Dietary products Canned vegetables (corn, peas) Seasonal foods Pancake Mixes Mixes and Fillings Milk and Dairy Producsts Drinks in general Cereals Snack foods Frozen and conserved products
Thank you…
doc_323888384.pptx