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MEXICO
Neverías Frody will promote the pet friendly market in 2023. Currently its bacon flavor represents 15% of its total sales and during the first half of next year it plans to expand its portfolio including two new flavors for pets and thus achieve 25% more sales. The new flavors of ice cream for pets are baked ham and grilled chicken, and they will also add more flavors to their portfolio of 48 desserts turned into ice cream: a chocolate-flavored ice cream under the concept of not milk and a new flavor of Irish cream. These types of innovations in the Frody product line have allowed this Mexican company to successfully overcome the inflation that permeates throughout the country. “Inflation has represented a challenge, since the supplies we use to produce our ice creams have increased in price by up to 25%, which directly affects our company’s profits. However, we have decided not to make an adjustment in the consumer price and to concentrate our strategy on optimizing the production of our plants in order to reduce our costs internally and thus absorb the price increases of our raw materials without impacting our consumer. betting on consolidating the brand in Mexico City and gaining new friends and clients,” said Beatriz Rodríguez, general director of Frody. In addition to maintaining its sales strategy in favor of its consumers, the ice cream shop has opened 2 more branches. “We hope to open 2 more stores and the following year to continue with our expansion plan of 10 stores a year, which has been somewhat stopped due to the fact that the real estate market has slowed down a bit,” added Rodríguez. The company’s idea is to cover the Valley of Mexico with 80 branches. Once this objective was achieved, the next step would be to conquer the Bajío area. “We have an accumulated growth of 16% during this 2022, and this motivates us to leave the Valley of Mexico to reach other areas of the country. In addition, we sell master franchises, that is, we sell territories that make up more than 5 stores”. 2023 looks good for Frody, since the strategy is to maintain its expansion plan and consolidate its growth in Mexico City to successfully close this difficult 2022, with the hope of continuing to be liked and preferred by families as the Mexican brand of ice cream always close to its consumers. According to the study Pet food potential market 2021, carried out by Amascota, it indicates that 22% of dog or cat owners spend more than 800 pesos on food for their pets, and 7% of this expense is for prizes and snacks.
UNITED STATES
Amazon opens free email marketing plan. At a vendor conference, the retail giant unveiled three new audience types for its Amazon Customer Engagement tool to help merchants increase their reach with free email marketing. “Brands can quickly acquire new customers on the Amazon store, but they expressed a need for improved tools to increase customer lifetime value. These enhancements help unlock the value of remarketing as we further our commitment to helping sellers reach the right customer, at the right time,” said Benjamin Hartman, vice president of Amazon North America Selling Partner Services. According to what was announced, it would be the first time that sellers manage to expand beyond the brand’s followers by sending emails with marketing strategies designed by and for the custom audiences of Amazon Customer Engagement, where they are also allowed to monitor the impact of your email marketing campaigns and customer engagement with performance metrics and reports such as open rate, click-through rates, emails delivered, opt-out, sales, and conversion rates. “With these capabilities, Amazon is helping put more control in the hands of brands over how they market to their customers. As a health and wellness company, repeat customers and subscribers are very important to our business. We’ve been very intrigued by the new Custom Audiences tool. These email marketing capabilities are exactly what we’re looking for to keep our customers coming back,” said James Gossling, director of e-commerce at Sports Research. This tool is unique in that it provides an opportunity for sellers to select customer audience types and Amazon sends the marketing email directly to those customers. The tool will be available free of charge on Seller Central, Amazon’s online portal for sellers.
COLOMBIA
Oxxo expands more and more in LATAM. The Mexican convenience store chain, belonging to the Femsa Group, has managed to win over the Colombian consumer with the simultaneous opening of five new stores in Pereira and Dosquebradas. The booming expansion plan adds to the 190 stores it has in Bogotá and Bucaramanga, where for 13 years the brand has managed to gain a foothold in the Latin American market, because within its inventory little by little it has been betting on the inclusion of industry brands and regional products that drive the national economy. “With the arrival in Pereira and Dosquebradas we seek to be that store that is convenient due to its location and diversity of products. In Oxxo a housewife can replenish a product from her market, young people find what they need for a meeting at home or an executive enjoys a coffee before arriving at work”, said Jorge Flores, General Manager of Oxxo Colombia. These five new stores will be open to the general public 24 hours a day, since they are establishments of around 90m2 supplied by national suppliers of local brands such as Lucerna, La Niña, Mama Inés, Celema, Normandy, Color Greek, among others.
SPAIN
Costco prepares its first large European logistics warehouse. The large retail store is preparing to open a larger warehouse for its coffers in Spain, with a location in Torija, Guadalajara, and in collaboration with Eurofund Logistics Capital Partners, a company specializing in logistics development and asset management. After 10 months of negotiation, Costco reached an agreement to install more than 140,000 square meters of space near the Corredor del Henares and the A2, and 75 kilometers from Madrid. “This great acquisition will allow Costco opening a distribution center with a cross-docking system, which will allow us to provide greater coverage to our existing and future centers, meeting Costco’s expansion objectives in the Spanish market”, explains the company’s manager in Spain, Diane Tucci. The supermarket brand already has four stores in Spain; two in Madrid, in Getafe and Las Rozas; another in Seville, the first to open, in 2014; and a fourth in Sestao. It is expected that in 2023 a fifth will be inaugurated in the town of Paterna, following the same characteristic structure, with large spaces for purchase and subscription of membership, since only in this country there are already 405 thousand registered associates. “We want to continue promoting and strengthening both our team and our portfolio, to offer the best logistics buildings in their class in Spain and throughout Europe,” explains the executive director of Eurofund Logistics Capital Partners, Marco Galbusera.