Abstract:

This paper suggests how wireless providers can profit by serving traditionally under-served market segments in Latin America. It discusses how traditional strategies for targeting upmarket consumers may not be optimal for new entrants, given the competitive environment for such a small population segment in Latin America. It suggests an alternate strategy for serving the ‘sub-prime’ segment (i.e. consumers in the lower socioeconomic classes) with low price, low margin, and yet high volume wireless service. Further, the theme has broad application to other technology sectors in the region as well. This paper is based on recent consumer qualitative research conducted in Brazil.