Multinationals versus Multilatinas: Market Penetration Strategies in the Latin American Fast Moving Consumer Goods (FMCG) Market

The present research is dedicated to identify successful market penetration strategy in Latin American FMCG market for an international company. The FMCG sector was chosen due to the fact that in Latin America, in times of current economic downturn, fast moving consumer goods market is one of the economic sectors which demonstrated growth. In the research two types of companies were analyzed: multinationals (MNC) and multilatinas (i.e international companies which operate within Latin American region). It was revealed that unlike MNC, multilatinas tend to be risky, apply both diversification and differentiation strategy, concentrate on consumer and emotional relationship with him. These elements remain crucial for a new company willing to enter the examined market. However, new Latin American market tendencies make it inefficient to apply a low pricing strategy and the debt reduction that multilatinas were used to have.