The document discusses digital consumption among teens and young adults in the base of the pyramid segment in Colombia. It aims to understand the current and future role of technology and internet in their consumption of products and services. Key findings include that smartphones are central to their digital interactions and consumption, with screen size being a main purchase driver. Social media is highly used while e-commerce remains secondary. Opportunities exist in tailored data plans and payments, localized content, and using smartphones as a communication channel with this audience.
4. 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:
â We are talking about a segment with a great weight considering the total population in Mexico, in
terms of volume and purchase power.
â 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.
â In particular, itâs 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.
â 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.
5. 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 *
*BoletĂn Trimestral de las TIC
BoP
ÂżWhy should we study the base of the
pyramid?
8. Objective
TĂtulo de la secciĂłn //
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
â To know the current perception, pain points and drivers of the BoP regarding the
digital world.
â To study the standards and cannon of use and consume of the BoP of the digital
world.
â Identify brands and digital services that have a positive or negative perception for the
BoP
â Make a contrast of the cultural differences about the use of technology and internet
in rural and urban scenarios.
â Know the main aspirations of digital and technological consume inside the BoP.
9. MetodologĂa
On a methodological level the research was carried out through:
â 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.
â 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)
â Semi structured interviews in-situ where according to official instances (DANE), you can find
concentrations of home that belong to low income levels.
Perfiles
â Teens (15 - 19 y/o) NSE 2
â Young Adults (20 - 35 años) NSE 2
â Experts (Business Owners related to the digital and entertainment field: Devices sellers, Internet Cafes,
selling and renting movies and videogames) NSE 2
10. Methodology
Plazas: The field work was distributed on two kinds of population
Rural (Outside BogotĂĄ)
â ZipaquirĂĄ
â Funza
Urban (BogotĂĄ)
â Southeast
â West
â Southwest
Sample Distribution PROFILE
TIPO PLAZA Teen Young Adult Expert
Urbano (BogotĂĄ)
Southeast 1 2 3
West 1 2 2
Southwest 1 1 1
Rural
ZipaquirĂĄ 4 1 2
Funza 1 1 2
Total 8 7 10
11. 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 dĂłlares
<4 USD/ dĂa
4 -10 USD/ dĂa
*MIllones de habitantes
Rangos de ingresos
*https://goo.gl/N3Gbmx
Context
12. 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
14. â Education: Most of them is currently studying the middle school, and a
low minority works.
â Job/Income: Activities like selling candies among their friends, working
on convenience stores. Incomes close to 1 UDS per day.
â Content and media consumption: Mostly social media and consults for
musical contents and technology.
â Social Mobility: Low. The projections to the future rounds around
commercial business and a military or police career.
Profile descriptions - Age
Teens
Young Adult
â Education: The usually have technical studies and the less part college
studies.
â Work/Income: Technical services and basic professional ones. Declared
incomes of 7 USD per day.
â Content and media consumption: Itâs in part determined by their sons.
They identify an affinity to consult news.
â Social Mobility: Middle. The projection to the future rounds about
commercial business and service work. The main La proyecciĂłn 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.
15. Urban Concentrations Rural communities
Young Adults
20-35 Years Old
Teens
15-19 Years Old
Field Workers
Industrial 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 Workers
Service industry
Professionals
Education
Basic/High School/
College
Framework of understanding profiles
Age + Scenario
16. Framework of understanding profiles
Urban
Concentrations
Rural Communities
Adultos JĂłvenes
20-35 años
Teens
15-19 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. 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.
Itâs a strong source for consults and
itâs 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. 18
HĂĄbits
1. Search of services and products that fit in their purchase power
2. Necessity of warm relationships and informal commercial speeches
3. Advanced users and laggard offer
4. Great perception of consignment and collect companies
Devices
1. Smartphones: Multi-category killer
2. Size of the screen: Main driver while purchasing a new device
3. Alternative Brands and Apps.
Services
1. E-commerce as a second option
2. WiFi redefining spaces
3. Multiple uses of social media, specially Facebook
4. Digital Services (Ticketing) outside the top of mind
Content
1. The decline of TV, obsolete contents
2. The big opportunity for local content consume.
Main Insights
19. 19
The economy of the BoP is based on limited income that donât
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 donât have a cellphone contract, when I'm going to
be out i just make a recharge some mobile data and it
last about 2 days
Teen - 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.
â
20. 20
âWhat is being more
purchased are data, not
minutes as people prefers to
have internet to be texting,
thatâs how they communicate
now, itâs cheaperâ
Seller at Convenience Store -
Rural Community
âMore than 20 people from
the upper towns comes to
pay for Direct TV each weekâ
Seller at Convenience Store -
Rural Community
Material POP en tienda de barrio zona rural
21. 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 itâs the one that has a
better signal.â
Teen - Rural Community
Personalized impulse
Force of sell that boost the subscription to services
(Required on rural zones)
Se identificĂł 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.
â
22. 22
âMovistar y Tigo are well
known but they are seen as
bad companies because they
donât have a lot of signal over
hereâ
Teen - Rural Community
âWhat people recharges more
is Comcel (Claro)â
Convenience Store Seller -
Rural Community
Force sell of Claro in Rural community
23. 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... â
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.
â
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. 24
âTo make this faster there
should be at least more people
the days that the bills expires,
that itâs when the queue is
longer. â
Teen - Rural Community
âI donât know if I can cancel
the gas service on a website or
by phone, at least they should
tell us. â
Joven adulto - Zona Rural
Fila de pago servicios pĂșblicos zona rural
25. 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 OPPORTUNITY
The 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 itâs 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
â
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. 26
âSometime 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
difficultâ
Young Adult - Urban Zone
Bank subsidiary of wwb. Micro Finance bank
Voucher for Efecty Payment
27. 27
The most inspirational device, above music players, laptops, TVâs 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 oneâ
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.
â
â Teens: Leisure and entertainment (Facebook Messenger , Image
editing apps -B612-, Whatsapp, juegos)
â 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. 28
âIf 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 donât really call
anyone.
Teen - Rural Community
âWe 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
Facebookâ
Young Adult - Urban Concentration
Joven adulto transporte intermunicipal
33. 33
âUna vez pedĂ un collar a
corona de papel que es una
tienda virtual, acĂĄ en el barrio
no hay cosas muy lindas y en
este uno paga cuando le
entregan la joya â
Joven adulto - Zona Urbana
Venta de ropa zona urbana
34. 34
En zonas rurales y urbanas se han dispuesto redes inalĂĄmbricas
en las zonas de mayor afluencia de pĂșblico, esto genera una
competencia cercana con los servicios de telefonĂa fija,
televisiĂłn por cable y proveedores de internet.
OPORTUNIDAD DE NEGOCIO
WiFi redefine el espacio
pĂșblico
AcĂĄ en la plaza hay WiFi a veces nos encontramos
varios y por eso o los turistas se hacen ahĂ para revisar
cosas en internet â
Teen - Rural
Los establecimientos y las marcas de pueden optimizar la relaciĂłn con los
clientes finales por medio de estos canales de comunicaciĂłn que se creen
cerrados o poco usados por este target.
AdemĂĄs, este uso del espacio pĂșblico hace de las plazas un punto propicio
de generaciĂłn de experiencias BTL o marketing alternativo
â
El ministerio de las TIC acompaña desarrollos
que potencien esta herramienta (programas de
fidelizaciĂłn de clientes y ) capacitaciones
sobre generaciĂłn de contenido.
35. 35
âEn el barrio una amiga nos
rota la clave a las de la
cuadra y todas nos colgamos
de ahĂ â
Teen - Zona Rural
âCuando uno baja al centro
hay varias redes pĂșblicas, de
bibliotecas y universidades
uno ahĂ se ahorra sus daticos â
Joven adulto - Zona Urbano
Teen zona rural
36. 36
Las funcionalidades de facebook son elĂĄsticas y los usuarios
recurren a ellas para que se adapten a sus necesidades. Es un
punto de encuentro bĂĄsico, comĂșn 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, asĂ sea a hacer tareas , uno los ve
que tienen su ventanita del face abierta
Experta - Rural
Aunque la tendencia global indica que Facebook estĂĄ siendo abandonado o
no adoptado por los jĂłvenes a nivel global, en la base de la pirĂĄmide
colombiana aĂșn resulta importante generar presencia en esta red social.
Esta oportunidad aplica mås para negocios pequeños o medianos que
consideran que Facebook es un espacio exclusivo para grandes marcas de
trĂĄficos masivos.
â
â Consulta de contenido (informaciĂłn
y entretenimiento)
â Chat Tiempo real
â Anuncios clasificados alternativos
(grupos temĂĄticos por categorĂa)
â Contactar conocidos y cercanos
â Consulta y creaciĂłn de eventos
37. 37
Para mi es suficiente con
tener facebook gratis , no es
que use mucho el resto de
cosas. Fuera de la casa
Teen - Rural
â
A facebook solo le falta
poner el boton comprar
porque un montĂłn de
marcas y gente pusieron ahĂ
catĂĄlogos de los productos
Joven adulto - Urbano
â