Reaching the Consumer in Argentina

Overview by

Marketing Opportunities

Growing Sectors
The Press, electricity, financial services, agrifood industry, IT, sailing boats, safety equipment, telecommunications, tourism.
Consumer Behavior
Argentine consumers pay attention to home delivery and after-sales service. They prefer to repair their old goods rather than buy new ones. The household appliances spare parts trade is therefore a flourishing sector. The Argentines favor national products as imported goods are often three times more expensive. Following the crisis in 2001-2002, the Argentines have reoriented their purchases towards sub-brands and special offers in order to save money. However, in certain geographical areas, more well-off consumers tend to accept higher prices. Likewise, big brand names are chosen for their guarantee of safety, the know-how with which their products are made, etc. Young people become attached to the brand image of the product, while still paying attention to its price. The arrival of Chinese and Brazilian products on the market has revived consumption of household appliances.
Consumer Profile and Purchasing Power
The Argentine consumer is rational and conservative. Since the economic crisis, he has become more wary, more selective and more reticent with regard to new products. In general, the Argentines are not very loyal to brands.
Consumer Recourse to Credit
As Argentine confidence in banking establishments is limited, they avoid resorting to them. Consequently, household debt is limited and restricted to real estate purchases. On the other hand, more and more, hypermarkets are offering consumer credit on their products (for example, the purchase of a TV in 48 monthly instalments at a prohibitive rate).
Consumers Associations
Usuarios , The Bureau for competition, deregulation and the consumer
Adecua , Association for protection of consumers and users from Argentina

Media in Which to Advertise

TV advertising has enormous influence on the consumer behavior of the Argentines.
During their programs, presenters sing the praises of brands and products, and commercials are shown at certain times during all types of broadcasts.

Main Televisions
Grupo Telefe
Grupo Clarin
Grupo Cronica
Telearte SA
At the weekend especially, all the newspapers are full of leaflets, and full page adverts for the different big brands. The system of sales at certain periods only does not exist, so there are permanent special offers on all sorts of goods throughout the year.

Main Newspapers
La Nacion
Grupo Clarin
Mailshots are still used in an amateur fashion and with little return. Postage is expensive, so people get leaflets directly in the street and never by post.
In Transportation Venues
From billboards in the streets, on bus shelters, in metro or railway stations, advertising is appearing more and more on the means of transport themselves (private cars, buses, taxis, airplanes).
Buenos Aires is saturated with billboards!

Market Leaders:
Punto 6
Radio advertising makes it possible to reach a very wide audience. It is broadcast above all on local radio stations and promotes nearby stores.

Main Radios
AM 570
Radio Nacional
Radio Mitre
Cadena 3
New Technologies (E-Marketing, SMS, etc.)
Advertising appears directly on websites; advertising by e-mail is growing but tends to get lost in the mass of spam received.
M-marketing (advertising by mobile phone) remains limited. Telemarketing has grown, but it is more considered as something which disturbs the peace and quiet of the home than as a service.

Market Leaders:
Café Imagen
Main Advertising Agencies
Saatchi & Saatchi
Havas Media
Bridger Conway
Argentine association of advertising agencies (AAAP)

Main Principles of Advertising Regulations

Advertising concerning alcoholic beverages is not prohibited but the Government has recently deepened restrictions on it. An implementing decree was issued in 2009 for the "Alcohol Act", deepening restrictions on alcohol beverage advertising and consumption and obliging social security services to treat the social consequences of its consumption.
Advertising prohibited on the public highway according to article 13 of law # 1799.
Law # 16463/64 considers that only over-the-counter medicines are allowed to advertise.
Use of Foreign Languages in Advertisement
Not prohibited.
Organizations Regulating Advertising
In Argentina, self-regulation in advertising is a very efficient manner to solve disputes.

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