+2%
BrandZ_2015_LATAM_Top50_Report
BrandZ_2015_LATAM_Top50_Report
- No tags were found...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
TOP<br />
50<br />
41 42 43 44 45 46 47<br />
48 49 50<br />
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15<br />
TOTAL VALUE OF LATIN<br />
AMERICAN TOP 50 BRANDS<br />
2014<br />
US$ 129 Bil.<br />
<strong>+2%</strong><br />
Brand<br />
MOST VALUABLE COUNTRY BRANDS<br />
ARGENTINA BRAZIL<br />
2 brands in the Top 50<br />
US$ 2,644 Mil.<br />
(2% of Total LatAm Value)<br />
11 brands in the Top 50<br />
US$ 32,017 Mil.<br />
(24% of Total LatAm Value)<br />
+71% +5%<br />
% Brand Value Change 2014-2015 % Brand Value Change 2014-2015<br />
Top 3 Argentinian Brands<br />
Top 3 Brazilian Brands<br />
Value<br />
Change<br />
2014-2015<br />
2015<br />
CHILE<br />
US$ 131.9 Bil.<br />
TOP 10 MOST VALUABLE LATIN AMERICAN BRANDS<br />
Beer<br />
US $8,500 Mil.<br />
+20%<br />
% Brand Value Change 2014-2015<br />
Beer<br />
US $8,476 Mil.<br />
+6%<br />
Communication Providers<br />
US $6,174 Mil.<br />
+16%<br />
Banks<br />
US $5,202 Mil.<br />
+25%<br />
7 brands in the Top 50<br />
US$ 19,398 Mil.<br />
(15% of Total LatAm Value)<br />
-23%<br />
% Brand Value Change 2014-2015<br />
Retail<br />
US $4,709 Mil.<br />
-23%<br />
Communication Providers<br />
US $4,423 Mil.<br />
NEWCOMERS<br />
# 49<br />
US $997 Mil.<br />
Banks<br />
# 38<br />
US $1,411 Mil.<br />
Retail<br />
# 42<br />
US $1,118 Mil.<br />
Banks<br />
# 41<br />
US $1,197 Mil.<br />
Beer<br />
# 36<br />
US $1,533 Mil.<br />
Banks<br />
# 46<br />
US $1,069 Mil.<br />
Communication<br />
Providers<br />
1 US $1,575 Mil. 1 US $8,500 Mil. 1 US $4,709 Mil. 1 US $3,672 Mil. 1 US $8,476 Mil. 1<br />
US $1,808 Mil.<br />
2 US $1,069 Mil. 2 US $5,202 Mil. 2 US $3,107 Mil. 2 US $3,476 Mil. 2 US $6,174 Mil. 2<br />
US $1,678 Mil.<br />
3 US $729 Mil. 3 US $4,315 Mil. 3 US $2,845 Mil. 3 US $2,436 Mil. 3 US $4,423 Mil. 3<br />
US $1,479 Mil.<br />
+22%<br />
COLOMBIA MEXICO PERU<br />
9 brands in the Top 50<br />
US$ 19,339 Mil.<br />
(15% of Total LatAm Value)<br />
Top 3 Chilean Brands Top 3 Colombian Brands Top 3 Mexican Brands Top 3 Peruvian Brands<br />
Banks<br />
US $4,315 Mil.<br />
+28%<br />
17 brands in the Top 50<br />
US$ 49,385 Mil.<br />
(37% of Total LatAm Value)<br />
4 brands in the Top 50<br />
US$ 6,073 Mil.<br />
(5% of Total LatAm Value)<br />
-4% +15% +15%<br />
% Brand Value Change 2014-2015 % Brand Value Change 2014-2015 % Brand Value Change 2014-2015<br />
www.brandz.com<br />
Beer<br />
US $4,185 Mil.<br />
+17%<br />
Download the Mobile app www.brandz.com/mobile<br />
Beer<br />
US $3,672 Mil.<br />
+3%<br />
Beer<br />
US $3,604 Mil.<br />
+4%<br />
HIGHEST<br />
RISERS<br />
% - Brand Value Change<br />
2014-2015<br />
# - Ranking Position<br />
$ - Brand Value<br />
Beer<br />
# 30<br />
US $1,859 Mil.<br />
Banks<br />
# 37<br />
US $1,479 Mil.<br />
Banks<br />
# 7<br />
US $4,315 Mil.<br />
Banks<br />
# 40<br />
US $1,236 Mil.<br />
Banks<br />
# 4<br />
US $5,202 Mil.<br />
Communication<br />
Providers<br />
# 6<br />
US $4,423 Mil.<br />
Beer<br />
# 1<br />
US $8,500 Mil.<br />
Beer<br />
# 39<br />
US $1,309 Mil.<br />
Banks<br />
# 34<br />
US $1,636 Mil.<br />
Banks<br />
# 31<br />
US $1,808 Mil.<br />
Source: Millward Brown and BrandZ<br />
+62%<br />
+43%<br />
+28%<br />
+28%<br />
+25%<br />
+22%<br />
+20%<br />
+20%<br />
+19%<br />
+17%<br />
16 17 18 19 20 21 22 23 24 25<br />
40<br />
39<br />
38<br />
37<br />
36<br />
35<br />
34<br />
33<br />
32<br />
31<br />
30<br />
29<br />
28<br />
27<br />
26
LATIN AMERICA<br />
CONTENTS<br />
Colombia............................. 81<br />
Introduction.........................9<br />
Thought Leadership<br />
The Macroeconomic Environment<br />
Gonzalo Fuentes, CEO, .Millward Brown Latin America<br />
LatAm vs. Emerging Markets<br />
Doreen Wang, Global Head of BrandZ, Millward Brown<br />
Overview<br />
Latin American Economic Context<br />
Headline News<br />
Key Findings and Future Trends<br />
Brand Value Distribution by Country<br />
Performance by Indsutry Sector<br />
Comparison With Other BrandZ TM<br />
Brand Valuation Rankings<br />
Top 50 Brands<br />
Argentina............................ 25<br />
Thought Leadership<br />
Argentina Keeps Building its Own Labyrinth<br />
Julio Fresno Aparicio, Managing Director,<br />
Millward Brown, Argentina<br />
Overview<br />
Key Market Facts<br />
The Top 5 Brands Chart<br />
Brand Stories<br />
Thought Leadership<br />
Change Is Inevitable; Development is Optional<br />
Mariana Fresno Aparicio, Client Service Director<br />
Millward Brown, Argentina<br />
The Battle of the Table<br />
Sebastián Corzo, CS Senior Consultant<br />
Millward Brown, Argentina<br />
Brazil ..............................37<br />
Overview<br />
The Top 50 Brands Chart<br />
Key Market Facts<br />
Brand Stories<br />
Thought Leadership<br />
How are Brands Adapting to the<br />
Economic Shift?<br />
Roberto De Napoli, Director of Operations,<br />
Millward Brown Vermeer, South America<br />
Challenges for Brands in the Brazilian Market<br />
Valkiria Garré, Managing Director, Millward Brown Brazil<br />
Crisis or Opportunity?<br />
Aurora Yasuda, Knowledge Management,<br />
Millward Brown, Brazil<br />
Neuroscience: Helping Brands<br />
Make The Connection<br />
Francisco Bayeux, Global Innovations, Millward Brown, Brazil<br />
'Dear Brand, I Recall You.<br />
But I Don't Want To Buy You'<br />
Renato Duo, Strategic Planning Manager<br />
J. Walter Thompson, São Paulo<br />
Chile ...............................65<br />
Overview<br />
The Top 15 Brands Chart<br />
Key Market Facts<br />
Brand Stories<br />
Thought Leadership<br />
Making Progress on a Slower Road<br />
Mauricio Martínez Vázquez, Managing Director,<br />
Millward Brown, Chile<br />
Three New Influences on Chilean Consumers<br />
Marcela Pérez De Arce, Client Service Director,<br />
Millward Brown, Chile and Mauricio Yuraszeck,<br />
Client Service Director, Firefly Millward Brown<br />
Chile Amidst The Perfect Storm<br />
Claudio Apablaza, Business Development Director,<br />
Millward Brown, Chile<br />
"New Media, Old Fashioned Values"<br />
Annetta Cembrano Perasso, CEO, MEC Chile<br />
Overview<br />
The Top 20 Brands Chart<br />
Key Market Facts<br />
Brand Stories<br />
Thought Leadership<br />
Opportunities for Peace<br />
Gabriel Enrique Castellanos, Managing Director,<br />
Millward Brown, Andean Region<br />
Brands in an Ever-Changing Environment:<br />
Time To Be Meaningfully. Distinct!<br />
Oscar Ladino, Group Account Director,<br />
Millward Brown, Colombia<br />
People Hate Our Job<br />
Alvaro Meléndez Ortiz, Planning Director,<br />
Ogilvy & Mather, Colombia<br />
Mexico ...............................97<br />
Overview<br />
The Top 30 Brands Chart<br />
Key Market Facts<br />
Brand Stories<br />
Thought Leadership<br />
A Kaleidoscope of Challenges<br />
and Opportunities<br />
Ricardo Barrueta, Managing Director, .Millward Brown<br />
Mexico, Central America and the Caribbean<br />
Evolving Paradigms in an<br />
Unpredictable Market<br />
Jorge Alagón, Chief Client Solutions Officer Latam,<br />
Millward Brown<br />
Constancy Amidst Chaos<br />
Fernando Alvarez Kuri, Vice President<<br />
Millward Brown Vermeer<br />
How to Grow Great Brands in a<br />
Fast Changing Scenario<br />
Pedro Egea, President & CEO, Grey México<br />
A Story of David and Goliath in<br />
The Digital Media Era<br />
Lilia Barroso, CEO, GroupM México<br />
The Role of PR in Building Strong Brands<br />
Daniel Karam, President & Managing Director,<br />
H+K Strategies Mexico<br />
Creating Great Brands in an<br />
Extreme Market<br />
Gabriela Lijo, General Manager, Lambie-Nairn, México<br />
Peru .............................125<br />
Overview<br />
The Top 12 Brands Chart<br />
Key Market Facts<br />
Brand Stories<br />
Thought Leadership<br />
Exporting Peruvian Brands<br />
Catalina Bonnet Montoya, Managing Director,<br />
Millward Brown, Peru<br />
Has The Slowing Peruvian Economy<br />
Impacted Brand Value?<br />
Olivia Hernández, Client Service Director,<br />
Millward Brown, Peru<br />
Building Meaningfully Differentiated<br />
Brands in Peru<br />
Jeanette Yañez Pajuelo, Account Group Director<br />
Millward Brown, Peru<br />
What's New in Peru's Local Market?<br />
Fidel La Riva Cruz, Country Manager,<br />
Kantar Worldpanel, Peru<br />
From Analytical to 'Curiosytical'<br />
Eduardo Velasco Maximiliano, Managing Director,<br />
MEC Peru<br />
Resources..........................141<br />
Methodology<br />
BrandZ TM Publications<br />
BrandZ TM Mobile<br />
WPP Company Contributors<br />
The BrandZ TM Brand Valuation Contact Details<br />
WPP in Latin America<br />
6 7
LATIN AMERICA<br />
WELCOME<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
A DECADE OF<br />
DEVELOPMENT, A<br />
YEAR OF CHANGE<br />
2015 marks ten years since the first BrandZ<br />
Top 100 Most Valuable Global Brands study was<br />
conducted. In the intervening decade, Millward<br />
Brown has researched and valued over 100,000<br />
brands across 50 country markets, to identify<br />
the drivers of long-term brand value growth.<br />
With each year and each BrandZ Ranking<br />
report published, new insights emerge that<br />
help equip brands – especially the aspiring<br />
newcomers from the fast-growing markets – to<br />
learn from the present and build for the future.<br />
GROWING BRANDS<br />
IN ALTERED<br />
CIRCUMSTANCES<br />
For most of the countries featured in the<br />
BrandZ Top 50 Most Valuable Latin<br />
American Brands 2015, the past year<br />
has seen a continuation of the economic<br />
challenges that began to emerge in<br />
2013/14. For the past two years, the<br />
Latin American region has presented<br />
relatively low GDP growth rates of<br />
around 2%. China’s slowing economy and<br />
turbulence in the global oil industry have<br />
been contributory factors, but political<br />
unrest and uncertainty have also played<br />
their part.<br />
However, even in these testing times,<br />
companies that have strong brands<br />
remain more valuable than the average<br />
of the market. This is illustrated by the<br />
fact that the Top 50 LatAm portfolio<br />
increased 2% in USD, while almost all<br />
economic indices such as GDP, Country<br />
risk and Company’s market value showed<br />
a substantial decrease.<br />
So, what’s the secret to the strong<br />
performance of these brands? There is no<br />
single secret, but what is clear from this<br />
report is that many of them are applying<br />
some or all of the following principles in<br />
order to create differentiation and value:<br />
Be close to consumers<br />
Successful brands are not limiting<br />
themselves to promoting just their<br />
features and benefits but instead are<br />
aiming to reflect the same values as their<br />
consumers. In looking at life through their<br />
customers’ eyes, they are better able to<br />
innovate in ways that will really resonate<br />
with them. This may translate into the<br />
development of new formats, new sales<br />
channels and service centers, or new<br />
sizes or varieties that can maintain the<br />
loyalty ties that the brand has been<br />
building over time.<br />
Create a dialogue through digital<br />
The voice of the consumer is now<br />
clearly heard and amplified through<br />
multiple channels: where once brand<br />
communications were one-way, now<br />
social media gives each individual the<br />
power to praise or reproach. This shift<br />
from monologue to dialogue creates new<br />
possibilities but also pitfalls. The most<br />
successful brands are embracing the<br />
transparency that these open channels of<br />
communications provide and using it to<br />
build stronger, longer-term relationships<br />
with their customers.<br />
Experience counts<br />
Creating or supporting shared<br />
experiences that unite people and make<br />
them feel happy build brand equity<br />
and encourage consumers’ loyalty.<br />
The success of this approach is clearly<br />
demonstrated by the brand in the<br />
number one spot of the BrandZ Top 50<br />
Most Valuable Latin American Brands<br />
2015, Skol. Investment by Skol has been<br />
heavily focused on relationship building<br />
through the interests of the brand’s<br />
target audience, in particular through<br />
sponsorship of music festivals.<br />
Faced with household budget<br />
constraints, consumers need good<br />
reasons to validate their purchasing<br />
decisions. A clearly communicated<br />
brand proposition that reflects its<br />
understanding of the consumers’ needs,<br />
and respect for their freedom to choose,<br />
go a long way towards delivering the<br />
reassurance these consumers are looking<br />
for.<br />
ABOUT BRANDZ TM<br />
This report is collaboration by leading<br />
brand experts from WPP companies<br />
around the LatAm region. Their insights<br />
and thought leadership essays provide<br />
strategic understanding and tactical<br />
advice for brands seeking to grow their<br />
presence and improve their brand value.<br />
WPP companies have been working<br />
in Latin America for nearly 100 years.<br />
Within these companies are specialists<br />
in advertising; insight; branding and<br />
identity; direct, digital, promotion<br />
and relationship marketing; media<br />
investment management and data<br />
investment management; and public<br />
relations and public affairs. All share a<br />
passion and determination to use their<br />
creativity and resources to establish and<br />
build strong, differentiated brands that<br />
deliver lasting shareholder value.<br />
Collectively our experts bring global<br />
knowledge based on our WPP presence<br />
in 112 countries. By connecting all this<br />
talent and wisdom, we explore global<br />
trends and insights that help our clients<br />
in useful and unique ways.<br />
The backbone of all this intelligence<br />
remains the WPP proprietary<br />
BrandZ database, the world’s<br />
largest, customer-focused source of<br />
brand equity knowledge and insight,<br />
and the BrandZ brand valuation<br />
methodology of Millward Brown, a<br />
WPP company.<br />
Other titles in our industry leading<br />
BrandZ resource library include:<br />
the BrandZ Top 100 Most Valuable<br />
Global Brands 2015, the BrandZ Top<br />
100 Most Valuable Chinese Brands<br />
2015; the BrandZ Top 50 Most<br />
Valuable Indonesian Brands 2015.To<br />
download these and other BrandZ<br />
reports, please visit www.brandz.com.<br />
For the interactive BrandZ mobile<br />
apps go to www.brandz.com/mobile.<br />
To learn more, please contact any of<br />
the WPP companies that contributed<br />
expertise to this report. Turn to<br />
the resource section at the end of<br />
this report for summaries of each<br />
company and the contact details of<br />
key executives. Or feel free to contact<br />
me directly.<br />
DAVID ROTH<br />
CEO The Store WPP, EMEA<br />
David.Roth@wpp.com<br />
Twitter: davidrothlondon<br />
Blog: www.davidroth.com<br />
8 9
INTRODUCTION
LATIN AMERICA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THE MACROECONOMIC<br />
ENVIRONMENT:<br />
A CHALLENGE<br />
TO BE OVERCOME<br />
At the beginning of this year, I<br />
had the chance to take part in<br />
an event in Ecuador, attended<br />
by the main entrepreneurs and<br />
celebrities of the country. There,<br />
a famous economist was talking<br />
about “the perfect storm”:<br />
a decrease in global demand,<br />
the collapse in the price of oil<br />
(on which so many countries in<br />
our region depend), and the US<br />
dollar high appreciation.<br />
GONZALO FUENTES<br />
CEO<br />
Millward Brown, Latin America<br />
Gonzalo.Fuentes@millwardbrown.com<br />
In addition to this challenge shared by the whole region,<br />
Mexico and Brazil, the two largest economies in the region,<br />
are facing barely positive scenarios. At the end of July,<br />
Standard & Poor’s kept Brazil’s country risk rating at –BBB,<br />
but changed its outlook from “stable” to “negative”.<br />
In the case of Mexico, the Enrique Peña Nieto administration<br />
was confident that last year’s structural reforms would<br />
boost the country’s economic growth. However, the impact<br />
of these reforms was strongly affected by a difficult<br />
economic and social environment, which led to a very large<br />
cut in public investment and expenditure.<br />
WITH CHALLENGE<br />
COMES OPPORTUNITY!<br />
Although the social and economic environment is<br />
challenging, investment in the creation of great brands is<br />
needed more than ever. This is evidenced by the fact that in<br />
our ranking BrandZ Top 50 Most Valuable Latin American<br />
Brands, the joint value of the 50 main brands in the region<br />
had a 2% increase against last year. The Brazilian beer brand<br />
Skol had a 20% growth, which made it the most valuable<br />
brand in our region.<br />
How can brands continue to grow in such adverse scenarios?<br />
Brands that grow do so because they adapt to the new rules<br />
of the game, they understand how these impact consumers,<br />
and based on this they look for solutions considered<br />
innovative and relevant by their market. Thus, the secret is<br />
simple, but it is the details that count.<br />
A good example of adaptation to a new scenario is the<br />
Mexican brand Bodega Aurrerá. Seeking to respond to the<br />
evolution of demand (consumers with less time “to do the<br />
shopping”, but still looking for inexpensive and local options),<br />
in 2008 it created a format called Bodega Aurrerá Express.<br />
This has helped it to gain share in the informal market, due<br />
to its value proposal: low prices and convenience. In 2014,<br />
Bodega Aurrerá continued this expansion, adding 45 stores<br />
in that format. The success is clear: in a sector with brands<br />
facing important challenges —brand value in the retail<br />
sector as a whole decreased 15%— Bodega Aurrerá had a 10%<br />
value increase.<br />
The new challenge for the retail sector will be related to<br />
the development of e-commerce in our region. In 2014, 110<br />
million Latin Americans made at least one purchase online,<br />
almost 13 million more people than in 2013. This constitutes<br />
a challenge not only for this sector —for brands from other<br />
categories such as Alibaba already present in Brazil— but<br />
also for brands, since the purchase process and the context<br />
are clearly different.<br />
BRANDS AS 'EXPERIENCES'<br />
ACTIVATORS<br />
There is no doubt that consumers are human beings first,<br />
and that some countries in our region are going through a<br />
difficult situation. Brands have the opportunity here to offer<br />
playful experiences that unite consumers and allow them to<br />
enjoy small pleasures, while building equity and encouraging<br />
consumers’ loyalty.<br />
The digital development allows acceleration of this<br />
process and going from “brand image building” to “creating<br />
experiences with brand content”. The trick is doing this<br />
without the brand seeming too intrusive.<br />
Skol is a brand that understands its role is not that of the<br />
main character at the party, so to speak, but a vehicle for<br />
its consumers to have a great time: it takes advantage of<br />
important social events to join the party.<br />
Last years’ events provided an amazing stage to become<br />
this companion: from being the main sponsor of Rock in<br />
Rio, to taking part in the traditional Festas Juninas and the<br />
Brazilian Carnival, and all the way to the Football World Cup,<br />
Skol made great efforts to become part of these playful and<br />
high-engagement moments.<br />
For example:<br />
• This brand invests in more than 2,000 events so as to<br />
“stay close to customers”.<br />
• For the World Cup it created “Albergues-Consulados”<br />
( Embassy Shelters), where consumers were invited to<br />
become Skol ambassadors and receive foreigners in the<br />
different host cities.<br />
• It also used a digital platform to create what was called<br />
“Gringo your selfie”. In this activity Skol asked Brazilian<br />
consumers to take selfies with fans from all the countries<br />
competing in the Cup in less than 24 hours. The prize? A<br />
trip around the world!<br />
To sum up, the changes and challenges our region is facing<br />
constitute opportunities to grow by means of the elements<br />
that have always worked: innovation and relevance. My<br />
advice is that, now that we are tempted by too much<br />
information and all kinds of data, we should not forget the<br />
basics: to be close to our consumers. This book and the<br />
BrandZ Latin American ranking present 50 brands that<br />
seem to understand this quite clearly. Enjoy!<br />
12 13
LATIN AMERICA<br />
LATAM VS. EMERGING MARKETS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
TIPS FOR FUTURE<br />
SUCCESS FOR<br />
BRANDS IN FAST-<br />
GROWING MARKETS<br />
DOREEN WANG<br />
Global Head of BrandZ<br />
Millward Brown<br />
Doreen.Wang@millwardbrown.com<br />
It’s getting harder to enter – and<br />
remain in – the BrandZ Global Top<br />
100 Most Valuable Brands. A total of<br />
58 of the brands ranked in 2006 are<br />
still there, while 42 have been replaced.<br />
Many of the new brands within the ranking are from fastgrowing<br />
markets. The number of Chinese brands in the<br />
BrandZ Global Top 100 has risen from just one in 2006<br />
to 14 in 2015, and their total Brand Power has increased<br />
1,004%. Latin American brand Natura appears in the<br />
personal care sector rankings, and Skol and Brahma rank<br />
in the beer category. The majority of these local brands are<br />
not yet truly globalized, but they’re ambitious and growing<br />
in value extremely fast – and they will change the global<br />
competitive landscape.<br />
In the past 10 years Millward Brown has researched and<br />
valued over 100,000 brands across 50 country markets,<br />
to identify the drivers of long-term brand value growth.<br />
It is these lessons that will equip brands – especially the<br />
aspiring newcomers from the fast-growing markets – to be<br />
the winners over the next 10 years.<br />
BEING DIFFERENT<br />
MAKES A DIFFERENCE<br />
In a world of so much product sameness,<br />
brands which consumers view as<br />
“different” achieve higher value. Those<br />
that have remained in the top half of the<br />
BrandZ ranking over the last 10 years<br />
are scored very highly on “difference”<br />
by consumers, and have grown 124% in<br />
brand value. In contrast, brands in the<br />
bottom half of the ranking score lower<br />
and have increased only 24% in value.<br />
Difference can enable a brand to<br />
command a higher price and yield a<br />
higher profit. It isn’t just about the<br />
product; differentiation can also be found<br />
through purpose, personality, values, and<br />
design. Category leaders like Coca-Cola<br />
and BMW need to guard leadership and<br />
keep refreshing their brand messages<br />
to be always unique. Compared to the<br />
established multinational brands, the<br />
local brands from fast-growing markets<br />
are relatively weak on “difference”, how to<br />
develop a differentiating proposition that<br />
is meaningful to the consumers would be<br />
the key question to answer.<br />
CLEAR PURPOSE FAST-<br />
TRACKS BRAND EQUITY<br />
It’s not enough to be different for the<br />
sake of it. To be meaningful, brands<br />
must have a strong purpose that goes<br />
beyond “making money”, and is inspiring<br />
and relevant to consumers. This means<br />
striving to improve people’s lives in some<br />
way – making them easier, healthier or<br />
more interesting – and if it’s a “higher<br />
purpose” that contributes to making the<br />
world a better place, all the better.<br />
In the digital era in which difference is<br />
harder to achieve, for many brands with<br />
comparable functionality and emotional<br />
appeals, purpose can become a true<br />
differentiator and accelerate brand equity<br />
growth.<br />
INNOVATION<br />
DRIVES SUCCESS<br />
Consumers see brands that set trends<br />
as different and as leaders, and these<br />
perceptions pay dividends. Over 10 years,<br />
the brands that scored highest against<br />
the BrandZ “trend-setting” metric<br />
increased an average of 161% in brand<br />
value, while those that scored lowest<br />
increased only 13%. Many of these brands<br />
are from the technology sector, but we<br />
also see Chipotle, Nike, UPS and PayPal<br />
scoring highly.<br />
To be a trendsetter means anticipating<br />
the directions consumers will want to<br />
go in, identifying the gaps where needs<br />
are unmet, and getting there first. This<br />
is a risky strategy, which a brand can<br />
mitigate by knowing their consumers<br />
well.<br />
LOVE ISN'T ALL<br />
YOU NEED - BUT<br />
IT'S POWERFUL<br />
Love has a multiplier effect. Over the<br />
past decade, the rise in value for brands<br />
scoring high in the BrandZ “love”<br />
metric was 10 times greater than that<br />
of their low-scoring rivals. Love usually<br />
follows great performance and a great<br />
experience – and it’s amplified by social<br />
media. Brands from across categories<br />
score highly on love, from Visa to KFC.<br />
They have one thing in common: they<br />
try to understand the world from the<br />
customer’s point of view.<br />
Innovation and love form a virtuous circle.<br />
A true innovation that makes people’s<br />
lives easier can quickly generate love,<br />
but even the most trendsetting brands<br />
swing between periods of intensive<br />
innovation and iterative progress, when<br />
love provides a ”cushion” until the next<br />
wave of creative development. Microsoft,<br />
a trendsetter now, could do with a dose<br />
of love to balance this out.<br />
To remain competitive through the<br />
next decade, brands from fast-growing<br />
markets, and those aspiring to join<br />
their ranks, should stop seeing brand<br />
building as a cost and view it as an<br />
investment in future financial success.<br />
They need a holistic brand building<br />
system that focuses on every aspect<br />
– from communications to CRM to<br />
creating the whole experience – to<br />
make consumers’ lives better, build<br />
meaningful difference and embrace<br />
disruptive technologies. Brands are a<br />
fabulous investment, and need to be<br />
nurtured and cared for accordingly.<br />
14 15
LATIN AMERICA<br />
OVERVIEW<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THE LATIN AMERICAN<br />
ECONOMIC CONTEXT<br />
In the last two<br />
years the Latin<br />
American region<br />
presented relatively<br />
low GDP growth<br />
rates, around 2%.<br />
This is far removed from the prosperous<br />
scenario seen from 2004 to 2012, when<br />
the rates reached over 5% in many<br />
years, according to CEPAL – Economic<br />
Commission for Latin America and<br />
the Caribbean. In 2014, the region had<br />
a 1.3% GDP growth, the second worst<br />
performance in the last 10 years (in<br />
2009 the region showed a -1.8% GDP<br />
growth, a reflection of the world financial<br />
crisis).<br />
The countries that most contributed<br />
to the slowdown in the economy<br />
performance of the region in 2014 were<br />
Brazil, Argentina and Venezuela. Brazil,<br />
the largest country with around 50% of<br />
participation in the region’s GDP, had<br />
almost a zero growth of 0.1%, Argentina<br />
grew only 0.5% and Venezuela dropped<br />
4.0%. Other important countries in the<br />
region such as Colombia achieved a GDP<br />
growth rate in 2014 of 4.6%, 2.4% for<br />
Peru, while Mexico and Chile registered<br />
2.1% and 1.9% respectively. However,<br />
almost all of these countries, with<br />
the exception of Mexico, have shown<br />
decreasing GDPs in the last two years.<br />
Latin American GDP growth<br />
It was the first time that Latin America grew less than the average of the 34<br />
countries of The Organization for Economic Cooperation and Development (OECD).<br />
5%<br />
5.7%<br />
4.2%<br />
5.3%<br />
5.3%<br />
1.8%<br />
0%<br />
1.3%<br />
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014<br />
-1.8%<br />
Source: CEPAL<br />
GDP growth<br />
0%<br />
2.7%<br />
2013<br />
2014<br />
0.1%<br />
2.9%<br />
0.5%<br />
4.9%<br />
4.6%<br />
1.4%<br />
3.5%<br />
2.1%<br />
5.8%<br />
6.1%<br />
2.4%<br />
4.6%<br />
4.2%<br />
Brazil Argentina Colombia Mexico Peru Chile<br />
3.1%<br />
1.9%<br />
1.3%<br />
2.6%<br />
Venezuela<br />
Brazil is in bad shape, with political<br />
and economic problems in addition to<br />
inflation. Argentina also faces political<br />
and economic problems, and Venezuela<br />
has had serious problems with internal<br />
supply, high inflation and political issues.<br />
The deceleration of the economy in the<br />
region – decreasing steadily since 2010,<br />
when it reached a high 6.1% GDP growth,<br />
can be explained by the following factors:<br />
1. In the most important countries,<br />
much of the growth in 2010 was<br />
due to the increase in middle class<br />
purchase power and relative stability<br />
of public accounts. Also, prices of<br />
commodities were high and China<br />
grew 2-digits per year – China is a<br />
huge market for Latin American<br />
companies.<br />
2. For the domestic market, factors like<br />
the ascension of middle class and<br />
stability of public policies failed from<br />
2011-2014 and generated a very small<br />
growth in the period. For 2015, the<br />
World Bank is forecasting a worse<br />
scenario, with a GDP growth for Latin<br />
America of merely 0.4%. According to<br />
the bank, the region is practically in<br />
recession.<br />
3. During the same period, prices of<br />
commodities like iron, steel and oil,<br />
decreased substantially. Part of<br />
the problem is the slowing Chinese<br />
economy, but also, in the case of oil,<br />
it was strongly influenced by the<br />
industry context.<br />
In addition to this unfavorable scenario,<br />
Moody’s Investors Service has<br />
downgraded Brazil’s government bond<br />
rating from Baa2 to Baa3, a clear signal<br />
that the country has delivered less<br />
than expected in terms of economic<br />
performance.<br />
Another important index that reflects<br />
the economic instability in Latin<br />
America is the Emerging Markets<br />
Bonding Index – EMBI+, produced by<br />
JP Morgan, which tracks emerging<br />
markets, government debt and<br />
corporate debt asset classes.<br />
Country risk - EMBI +<br />
Almost all the main countries in the<br />
region have risen in terms of risk<br />
(except Chile).<br />
3%<br />
2%<br />
1%<br />
0%<br />
2013 2014 July 2015<br />
Brazil Chile<br />
Mexico Peru<br />
Source: JP Morgan<br />
Colombia<br />
As a consequence of all these factors,<br />
market capitalization of Latin American<br />
public traded companies in the region<br />
suffered a substantial decrease, as<br />
shown in the chart below<br />
The region has to learn how to deal with<br />
the new external context: lower growth<br />
of emerging economies, less dynamism<br />
of developed economies and lower<br />
prices of raw materials. All these factors<br />
greatly affect the economic growth and<br />
development of the region, which require<br />
significant changes to aspects such<br />
as investment levels and productivity<br />
growth with a long-term perspective.<br />
Companies’ Market Value<br />
Market capitalization of Latin American<br />
public traded companies in the region<br />
suffered a substantial decrease.<br />
10%<br />
0%<br />
-10%<br />
-20%<br />
-30%<br />
2013 2014 July 2015<br />
Brazil Ibovespa<br />
Mexico IPC<br />
Source: Bloomberg<br />
Chile IGPA<br />
Peru BVL<br />
Colombia IGBC<br />
Source: CEPAL<br />
-4.0%<br />
16 17
LATIN AMERICA<br />
HEADLINE NEWS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
HEADLINE<br />
NEWS<br />
BRAND VALUE<br />
Total Value of Latin American Top 50 Brands<br />
US$ 131.9 BILLION<br />
Brand Value Change 2014-2015<br />
<strong>+2%</strong><br />
Source: Millward Brown and BrandZ<br />
The total value of the BrandZ Top 50<br />
Most Valuable Latin American Brands<br />
2015 increased 2% in comparison to<br />
2014 (US$ 129.2b in 2014 vs. USD<br />
131.9b in 2015), despite the low<br />
economic activity in the region since<br />
2014. This demonstrates that strong<br />
brands can better face difficult periods,<br />
with less damage to the shareholder<br />
value.<br />
If we consider the Top 10 BrandZ<br />
LatAm, the variation was +10% in US$<br />
from 2014 to 2015.<br />
Brands from the Financial Institutions,<br />
Services and Beer, Food & Personal<br />
Care segments performed rather well,<br />
with growth rates of 18%, 11% and 9%,<br />
respectively.<br />
On the other hand, brands from the B2B<br />
and Retail segments performed poorly:<br />
they decreased by 34% and 15% in 2015,<br />
respectively.<br />
THE TOP FIVE BRANDS<br />
For the first time, the most valuable<br />
Latin American brand was Skol, the<br />
Brazilian beer brand that belongs to<br />
Ambev, an AB Inbev company. This<br />
performance reflects the consistency<br />
in brand positioning of Skol, targeting<br />
its products to younger audiences<br />
more willing to adopt a brand for a<br />
lifetime and supporting its strategy<br />
with sponsorships of music festivals,<br />
which has strengthened the brand<br />
relationship with this audience.<br />
Once again Beer, Retail,<br />
Communication Providers and Banks<br />
categories took the top 5 positions:<br />
Skol (Beer – Brazil), Corona (Beer<br />
– Mexico), Telcel (Communication<br />
Providers – Mexico), Bradesco (Banks –<br />
Brazil) and Falabella (Retail – Chile).<br />
BEER MAKES THE<br />
TOP 10 FOR THE THIRD<br />
CONSECUTIVE YEAR<br />
The beer category dominated the<br />
ranking again in 2015, conquering five<br />
of the top ten positions – four of the<br />
brands belonging to AB Inbev: Skol,<br />
Corona, Brahma and Modelo.<br />
Skol, the most valuable Brazilian<br />
brand, had a 20% growth to US$ 8,500<br />
million, followed by Corona, the most<br />
valuable Mexican brand, with a value of<br />
US$ 8,476 million, a 6% growth.<br />
1 US $8,500 Million<br />
2 US $8,476 Million<br />
NEW ENTRIES<br />
The BrandZ Top 50 LatAm<br />
saw six new entrants in 2015:<br />
MEXICO<br />
36<br />
38<br />
41<br />
BRAZIL<br />
42<br />
ARGENTINA<br />
46<br />
Banks<br />
Retail<br />
Beer<br />
Banks<br />
Communication Providers<br />
8 US $4,185 Million<br />
COLOMBIA<br />
49 Banks<br />
9 US $3,672 Million<br />
10 US $3,604 Million<br />
18 19
LATIN AMERICA<br />
KEY FINDINGS AND FUTURE TRENDS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1<br />
2<br />
3<br />
4<br />
Even in a crisis context, companies that have strong brands<br />
were more valuable than the average of the market: BrandZ<br />
Top 50 LatAm portfolio increased 2% in USD, while almost all<br />
economic indices such as GDP, Country risk and Company’s<br />
Market capitalization showed a substantial decrease.<br />
Most popular brands and local icons in the Latin American<br />
region like Skol (Brazilian Beer), Telcel (Mexican Communication<br />
Provider), Bradesco (Brazilian Bank), Bancolombia (Colombian<br />
Bank), Falabella (Chilean Retail) and Televisa (Mexican<br />
Communication Provider) are examples of brand strategies<br />
focused on the massive middle class and low-end population,<br />
exploring emotional attributes that are heavily associated with<br />
local needs.<br />
According to The Economist magazine, in Europe the foreign<br />
commerce flow inside the European bloc is almost 72%, while<br />
in the Latin American region it is less than 30%. This is one<br />
reason why the BrandZ Top 50 Most Valuable Latin American<br />
Brands 2015 has predominantly local brands. However, this<br />
situation represents a great opportunity for local brands to<br />
expand their operations overseas, breaking geographical and<br />
cultural barriers. Corona (Mexican Beer), Falabella (Chilean<br />
Retail), Claro (Latin American Communication Provider) and<br />
Itaú (Brazilian Bank) are good examples of this movement.<br />
The Financial Institution category had the most impressive<br />
performance in the ranking, growing 18% from 2014 to 2015.<br />
The Brazilian financial market showed a significant recovery<br />
with the M&A operations, which favored the perception of the<br />
current players, together with the reduction in the credit costs<br />
of the Stated-Owned Enterprises (SOE) banks, mainly Banco<br />
do Brasil and Caixa Econômica Federal. Another outstanding<br />
performance was Bancolombia, which increased its value by<br />
16% in the period. The bad news in the category came from the<br />
Chilean banks, due to the economic instability of the country.<br />
BRAND VALUE<br />
DISTRIBUTION<br />
BY COUNTRY<br />
The value distribution by country in the BrandZ Top 50<br />
Most Valuable Latin American Brands 2015 was a repeat<br />
of what happened in 2014: Mexico dominated the ranking,<br />
growing from 33% to 37% share. Brazil remained in second<br />
position, with a steady contribution of 24%.<br />
1. Mexico grew its contribution to the<br />
BrandZ Top 50 Most Valuable<br />
Latin American Brands 2015 for the<br />
third consecutive year, from 33% to<br />
37%. The categories Beer, Food &<br />
Personal Care, Financial Institutions<br />
and Services – which combined<br />
value grew 15%, led this growth. It<br />
is a combination of solid financial<br />
performance with an increase in<br />
the perception of consumers in that<br />
market.<br />
2. Brazil maintained its contribution<br />
to the BrandZ Top 50 LatAm at<br />
24%. The country performed well in<br />
the categories Beer, Food & Personal<br />
Care and Financial Institutions, but<br />
this was neutralized by the weak<br />
performance in the B2B category<br />
that is mainly represented by the oil<br />
company Petrobras (decreased in<br />
75%), which suffered with corruption<br />
and operational problems in 2014.<br />
3. Chile, with a portfolio of BrandZ<br />
Top 50 LatAm based in Retail,<br />
decreased from 20% to 15% from<br />
2014 to 2015. This industry, which<br />
comprises 9 brands in the Top 15<br />
Chilean ranking and represents<br />
almost 60% of the Chilean<br />
ranking, dropped 17%. A more<br />
detailed analysis of this variation<br />
showed that Financial Market<br />
Capitalization decreased 22.8%.<br />
Apparently, a strong brand helps<br />
companies to reduce the impact of<br />
financial valuations within the crisis<br />
context.<br />
4. Colombia, the fourth on the list,<br />
dropped from 16% to 15% due<br />
to a decrease in value from an<br />
important brand, Ecopetrol. On the<br />
other hand, Financial Institutions,<br />
the main category in the country,<br />
increased by 3%.<br />
16%<br />
20%<br />
15%<br />
15%<br />
4%<br />
5%<br />
3%<br />
2%<br />
2014<br />
2015<br />
1%<br />
2%<br />
33%<br />
24%<br />
37%<br />
24%<br />
20 21<br />
Mexico<br />
Brazil<br />
Chile<br />
Colombia<br />
Source: Millward Brown and BrandZ<br />
Peru<br />
LatAm<br />
Argentina
LATIN AMERICA<br />
PERFORMANCE BY INDUSTRY SECTOR<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
Performance by industry sector<br />
11% 7%<br />
33% 35%<br />
15% 16%<br />
19%<br />
2014<br />
Beer, Food & Personal Care<br />
Source: Millward Brown and BrandZ<br />
BEER, FOOD &<br />
PERSONAL CARE<br />
The category has been the main<br />
contributor to the BrandZ Top 50<br />
LatAm for the third consecutive year,<br />
representing 35% of the total value in<br />
2015 (against 33% in 2014). Beer, the<br />
main sub-category, represented 82%<br />
of the category in 2015, against 78%<br />
in the previous year. Brazil, the main<br />
contributor in the sub-category Beer<br />
with participation of 42%, grew 25% in<br />
brand value, followed by Mexico, with<br />
participation of 35% and 15% growth.<br />
This good performance is once again<br />
justified by the capital markets’<br />
financial performance of the owners<br />
of the beer brands of these countries<br />
(Anheuser Busch, Grupo Modelo and<br />
Heineken). The segment has benefited<br />
from the boost in consumption<br />
of popular brands in the region.<br />
According to Euromonitor, since 2008<br />
the consumption of beer in Latin<br />
America has increased by 6% per year.<br />
2015<br />
16%<br />
22% 25%<br />
Financial Institutions<br />
Retail Services B2B<br />
FINANCIAL<br />
INSTITUTIONS<br />
(BANKS AND INSURANCE)<br />
The Financial Institutions category<br />
enhanced its contribution to the<br />
BrandZ Top 50 LatAm, from 22% in<br />
2014 to 25% in 2015. In terms of brand<br />
value, the category had the largest<br />
growth in the ranking (18%). All the<br />
countries that make up the category<br />
showed growth in brand value.<br />
Brazil became the leader of the<br />
Financial Institutions category, with<br />
a participation of 34% (30% in 2014),<br />
a 41% growth in terms of brand value.<br />
Part of this increase is because this<br />
is the first time that BTG Pactual<br />
is on the list. Also, we could see the<br />
results from a consolidation in this<br />
market (mergers that happened in<br />
2010-2013) and also some recovery<br />
of spreads caused by SOE (Stated-<br />
Owned Enterprises) banks (Banco do<br />
Brasil and Caixa) in 2012/2013.<br />
Colombia, the second largest in<br />
the category, saw its participation<br />
decreasing from 39% in 2014 to 33%<br />
in 2015. However, the brand value<br />
of Financial Institutions in Colombia<br />
increased 3% in the period.<br />
Both Mexico and Peru had a growth<br />
in share in the category (from 20% to<br />
21% and from 10% to 11%, respectively).<br />
Mexico grew 32% and Peru 28% in<br />
brand value.<br />
RETAIL<br />
This category, which showed the<br />
highest growth in 2014 (14%),<br />
decreased 15% in 2015.<br />
Chile, one of most mature retail<br />
markets in the region, showed a weak<br />
performance in its brands Falabella<br />
and Sodimac – the Top 2 most<br />
valuable brands in the country. These<br />
decreased 23% and 24%, respectively.<br />
In Brazil the retail segment as a whole<br />
had in 2014 the worst performance<br />
in the last 11 years: it increased<br />
2.2% in 2014 in comparison to 2013<br />
as a reflection of the crisis and a<br />
complete review of the hypermarket<br />
model. Cash&Carry model retailers<br />
like Atacadão and Assai have gained<br />
substantial market share compared<br />
to hypermarkets format.<br />
SERVICES<br />
(COMMUNICATION PROVIDERS<br />
AND AIRLINES)<br />
The Service category (which had<br />
a 4% fall in 2014) increased 11%<br />
in 2015, despite the decrease of<br />
Claro (LatAm communication<br />
Provider, -12%) and LAN (Chilean<br />
Airline, -22%). It benefited mainly<br />
from the Mexican Communication<br />
Provider brands Telcel, Televisa and<br />
Telmex – the Top 3 of the category<br />
– which grew 16%, 22% and 15%,<br />
respectively. The good performance<br />
of these three Mexican brands was<br />
mainly due to financial reasons.<br />
B2B<br />
(ENERGY / OIL AND INDUSTRIAL)<br />
B2B showed again the worst<br />
performance in 2015, a 34% fall<br />
(-19% in 2014), mainly dominated<br />
by the subcategory Energy/Oil,<br />
which decreased 44% due to the fall<br />
in the commodity’s price, exchange<br />
rate depreciation and problems in<br />
terms of corporate governance.<br />
The Mexican cement company<br />
Cemex had an 11% growth, which<br />
compensated for part of this fall.<br />
COMPARISON WITH OTHER<br />
BRANDZ TM BRAND VALUATION RANKINGS<br />
The distribution of the Latin American rankings by category is very distinct in comparison to<br />
the Chinese and the Global rankings, due to the economic specificity of each region. While in<br />
the Latin America rankings generally the most important category is Beer, Food & Personal<br />
Care – mainly explained by the growth of the consumption of popular brands, in both China<br />
and Global rankings, Technology appears as one of the most important categories.<br />
Looking at the evolution from 2014 to 2015,<br />
we can see that Technology has gained<br />
importance in both Chinese and Global<br />
rankings. In China the category grew 50%<br />
(from 16% to 24%), due to important portal<br />
and media companies that have enhanced<br />
2015 Brand Valuation Summary<br />
their operations in the country. In the Global<br />
ranking, Technology, the most important<br />
category, grew 15% (from 27% to 31%). Even<br />
in Brazil, the Technology category is starting<br />
to appear in the ranking – the search engine<br />
Buscapé makes its debut here this year.<br />
Category Latam * Brazil * Mexico * Chile * Colombia * Peru * Argentina * China ** Global ***<br />
Technology 2% 24% 31%<br />
B2B 7% 3% 6% 12% 9% 3% 34% 6% 8%<br />
Beer, Food & Personal Care 35% 47% 37% 2% 33% 48% 16% 6% 11%<br />
Financial Institutions 25% 25% 12% 15% 44% 42% 14% 28% 16%<br />
Retail 16% 11% 19% 61% 3% 5% 0% 14% 8%<br />
Services 16% 12% 26% 10% 10% 2% 36% 19% 13%<br />
Others† 3% 12%<br />
Source: Millward Brown and BrandZ<br />
* BrandZ Top 50 Most Valuable Latin American Brands 2015<br />
** BrandZ Top 100 Most Valuable Chinese Brands 2015 (considering the Top 50)<br />
*** BrandZ Top 100 Most Valuable Global Brands 2015 (considering the Top 50)<br />
2014 Brand Valuation Summary<br />
Category Latam * Brazil * Mexico * Chile * Colombia * Peru * Argentina * China ** Global ***<br />
Technology 16% 27%<br />
B2B 11% 12% 6% 11% 15% 2% 43% 7% 10%<br />
Beer, Food & Personal Care 33% 41% 38% 2% 33% 56% 18% 8% 12%<br />
Financial Institutions 22% 21% 10% 15% 41% 39% 6% 40% 17%<br />
Retail 19% 12% 21% 61% 3% 2% 0% 1% 7%<br />
Services 15% 13% 24% 11% 9% 2% 33% 24% 13%<br />
Others† 3% 15%<br />
Source: Millward Brown and BrandZ<br />
† Cars, Motor Cycles, Motor Fuels, Lubricants, Detergents, Jewelry, Paints, Mosquito Repellents, Real State, Home Appliances, Tobacco, Apparel.<br />
22 23
LATIN AMERICA<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 50 MOST VALUABLE<br />
LATIN AMERICAN BRANDS 2015<br />
Argentina<br />
Brazil<br />
Chile<br />
Colombia<br />
Mexico<br />
Peru<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1<br />
8,500 7,055 4 20%<br />
Beer<br />
14<br />
3,091 2,804 2 10%<br />
Retail<br />
27<br />
2,017 3,446 1 -41%<br />
Oil & Gas<br />
40<br />
1,236 969 2 28%<br />
Banks<br />
2<br />
8,476 8,025 4 6%<br />
Beer<br />
15<br />
3,039 2,748 1 11%<br />
Industry<br />
28<br />
1,940 1,759 1 10%<br />
Banks<br />
41<br />
1,197 - 4<br />
Beer<br />
NEW<br />
ENTRY<br />
3<br />
6,174 5,308 3 16%<br />
Communication Providers<br />
16<br />
3,008 3,426 1 -12%<br />
Communication Providers<br />
29<br />
1,867 2,084 3 -10%<br />
Banks<br />
42<br />
1,118 - 1<br />
Banks<br />
NEW<br />
ENTRY<br />
4<br />
5,202 4,177 2 25%<br />
Banks<br />
17<br />
2,845 2,486 4 14%<br />
Retail<br />
30<br />
1,859 1,145 3 62%<br />
Beer<br />
43<br />
1,108 1,076 5 3%<br />
Beer<br />
5<br />
4,709 6,084 4 -23%<br />
Retail<br />
18<br />
2,795 2,608 3 7%<br />
Food & Dairy<br />
31<br />
1,808 1,540 3 17%<br />
Banks<br />
44<br />
1,107 1,058 2 5%<br />
Retail<br />
6<br />
4,423 3,625 2 22%<br />
Communication Providers<br />
19<br />
2,758 3,181 4 -13%<br />
Oil & Gas<br />
32<br />
1,700 2,236 5 -24%<br />
Personal Care<br />
45<br />
1,072 1,103 3 -3%<br />
Retail<br />
7<br />
4,315 3,376 2 28%<br />
Banks<br />
20<br />
2,757 2,466 2 12%<br />
Food & Dairy<br />
33<br />
1,678 1,630 5 3%<br />
Beer<br />
46<br />
1,069 - 2<br />
Communication Providers<br />
NEW<br />
ENTRY<br />
8<br />
4,185 3,585 4 17%<br />
Beer<br />
21<br />
2,595 3,175 3 -18%<br />
Banks<br />
34<br />
1,636 1,379 4 19%<br />
Banks<br />
47<br />
1,042 1,182 2 -12%<br />
Food & Dairy<br />
9<br />
3,672 3,565 5 3%<br />
Beer<br />
22<br />
2,557 2,687 3 -5%<br />
Retail<br />
35<br />
1,575 1,545 1 2%<br />
Oil & Gas<br />
48<br />
1,039 931 3 12%<br />
Communication Providers<br />
10<br />
3,604 3,477 4 4%<br />
Beer<br />
23<br />
2,436 2,365 4 3%<br />
Beer<br />
36<br />
1,533 - 2<br />
Banks<br />
NEW<br />
ENTRY<br />
49<br />
997 - 2<br />
Banks<br />
NEW<br />
ENTRY<br />
11<br />
3,554 3,097 2 15%<br />
Communication Providers<br />
24<br />
2,398 3,058 4 -22%<br />
Airlines<br />
37<br />
1,479 1,037 3 43%<br />
Banks<br />
50<br />
985 1,262 4 -22%<br />
Retail<br />
12<br />
3,476 3,006 4 16%<br />
Banks<br />
25<br />
2,207 2,494 2 -12%<br />
Banks<br />
38<br />
1,411 - 1<br />
Retail<br />
NEW<br />
ENTRY<br />
Source: Millward Brown and BrandZ<br />
13<br />
3,107 4,107 5 -24%<br />
Retail<br />
26<br />
2,198 2,457 3 -11%<br />
Banks<br />
39<br />
1,309 1,094 4 20%<br />
Beer<br />
24 25
ARGENTINA
ARGENTINA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
ARGENTINA<br />
KEEPS BUILDING ITS<br />
OWN LABYRINTH<br />
KEY FACTS<br />
Capital City<br />
Currency<br />
Buenos Aires<br />
ARGENTINE<br />
NEW PESO<br />
Area 2.78 million km 2<br />
Population (THOUSAND) 418,000 (2014)<br />
Population growth rate (ANNUAL) 0.8% (2010-2015)<br />
ANNUAL GDP AT CURRENT PRICES<br />
Total at current prices: US$ 540 million (2014)<br />
GDP per capita (annual dollars): US$ 12,922 (2014)<br />
Growth rate: 0.5% (2014)<br />
Country’s share in regional GDP: 11.3% (2014)<br />
We are sure about one thing:<br />
after twelve years managing the<br />
country from the Pink House,<br />
the Kirchner family is leaving<br />
the government in December,<br />
after the general elections that<br />
will be held in October. But… are<br />
they going to give up power?<br />
JULIO FRESNO APARICIO<br />
Managing Director<br />
Millward Brown, Argentina<br />
Julio.Aparicio@millwardbrown.com<br />
Either Buenos Aires Province Governor Daniel Scioli, a follower<br />
of Kirchner policies, or Buenos Aires City Mayor Mauricio<br />
Macri – the main representative of the opposition to the<br />
government – will assume the Presidency of the Republic in<br />
a few months. And even though the main question should be<br />
whether they will change the current policies or not, the real<br />
issue is whether they will have the capacity to get rid of the<br />
inherited way of doing politics in Argentina.<br />
The main macroeconomic indicators (GDP, employment,<br />
exports/imports) are not showing a clear reaction. The<br />
industrial activity has been declining for several periods in<br />
a row, and the private sector is not creating many new jobs.<br />
The monetary expansion is not followed by an increase in<br />
the level of reserves at Central Bank, so the currency price is<br />
slowly trickling day by day. On top of that, tax pressure and<br />
the growth in raw material and conversion costs are shrinking<br />
the margins. In spite of the stagnation of consumption,<br />
inflation rates remain amongst the highest in the world,<br />
forcing consumers to boost creativity in order to protect their<br />
purchasing power.<br />
Consumers have been struggling with high inflation rates<br />
since 2008, continuously adapting their consumption<br />
patterns and habits. Nonetheless, the defensive techniques<br />
have evolved and behaviors have become even more<br />
unpredictable.<br />
Life expectancy 76 years (2013)<br />
Literacy rate of 15-24 year olds 99.2% (2012)<br />
Unemployment rate 7.1% (2013)<br />
7.4% (2014)<br />
CONSUMERS ARE SAVING,<br />
NOT SPENDING<br />
Under this political and economic uncertainty, consumers<br />
are much more selective in their spending, and they look for<br />
special prices and promotions before deciding on a purchase.<br />
In 2012 and 2013 there was an impressive demand for<br />
cars, electronic devices and big-ticket items in general as a<br />
defensive strategy for fighting inflation, the devaluation of<br />
the local currency and the reduced financing options. But in<br />
2014 and during the first half of 2015, consumers have been<br />
choosing to save more. In other words, they have turned from<br />
spendthrift to thrifty.<br />
Actually, we are observing two apparently contradictory<br />
trends: more shoppers buying only what they need for the<br />
next few days (careful consumers) and at the same time,<br />
more shoppers buying a large amount of items in wholesalers,<br />
since they recognize that they can save up to 30% by buying<br />
in bulk compared to supermarkets and hypermarkets.<br />
As a consequence of these changes, we are starting to<br />
naturalize peculiar behaviors: a consumer, even from a high<br />
socioeconomic level, might buy a pack of frozen hamburgers<br />
in a hard discount shop, a bottle of Malbec wine in a Chinesearound-the-corner<br />
store, and a six-pack of Coke in a<br />
wholesaler or another supermarket just to save a few pesos.<br />
Net foreign direct investment: US$7.9 billion (2014)<br />
US$4.5 billion (2015)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
QUALITY STILL COUNTS<br />
However, looking for the best deal does not necessarily mean<br />
that quality is less relevant. Argentinian consumers want<br />
no substitutes for self-indulgence and reward; they want to<br />
enjoy the money now, but in a clever and convenient way.<br />
And tourism is a great example of this: many people are<br />
spending money on expensive trips to exotic or glamorous<br />
destinations, but they wait for the right moment to buy the<br />
tickets, in general, after an exhaustive search for promotions<br />
(and of course, paying in twelve installments in local currency,<br />
expecting a devaluation of the peso after the elections.)<br />
In conclusion, despite the negative context you can never<br />
be pessimistic about the long term development of this<br />
market. Regardless of the current difficulties, there are signs<br />
of a great hidden potential: Argentina holds the highest<br />
broadband and smartphone penetration levels in Latin<br />
America, and it ranks third globally in the use of social media<br />
networks, according to ComScore. There are forces merely<br />
sleeping out there, and islands of underdeveloped talent that<br />
only need an initial spark and predictable game rules to get<br />
connected and expand.<br />
28 29
ARGENTINA<br />
KEY FACTS AND TOP 5 MOST VALUABLE ARGENTINIAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 5<br />
MOST VALUABLE<br />
ARGENTINIAN<br />
BRANDS 2015<br />
BRAND VALUE<br />
Total Value of Argentinian Brands<br />
US$ 4.6 BILLION<br />
Brand Value Change 2014-2015<br />
+29%<br />
Source: Millward Brown Vermeer<br />
#<br />
Brand<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1,575 1,545 1 2%<br />
Oil & Gas<br />
1,069 766 3 40%<br />
Communication Providers<br />
729 649 5 12%<br />
656 - 3<br />
Beer<br />
NEW<br />
ENTRY<br />
613 439 3 40%<br />
Banks<br />
Communication Providers<br />
Source: Millward Brown and BrandZ<br />
1 2<br />
PARENT COMPANY YPF<br />
HEADQUARTERS Buenos Aires<br />
INDUSTRY Oil & Gas<br />
YEAR OF FOUNDATION 1922<br />
WEBSITE www.ypf.com<br />
BRAND VALUE US $1,575 million<br />
YPF is Argentina’s leading energy company and largest<br />
fuel producer.<br />
It operates a fully integrated oil and gas business with<br />
leading market positions across the domestic upstream<br />
and downstream segments. Upstream operations include<br />
the exploration, development and production of crude<br />
oil, natural gas and propane. Downstream operations<br />
are focused on refining, marketing, transportation<br />
and distribution of oil and a wide range of petroleum<br />
products, petroleum derivatives, petrochemicals, propane<br />
and bio-fuels. YPF operates a network of more than 1,600<br />
filling stations and has the ability to produce 530,000<br />
barrels of oil daily from 91 production areas transported<br />
by 2,700 kilometers (1,677 miles) of pipeline. The<br />
company was founded in 1922 and operated as a state<br />
run enterprise until 1993 when a public offering reduced<br />
the government’s ownership stake to a minority position.<br />
In 1999, Spain’s Repsol acquired majority ownership<br />
of YPF, but early in 2012 the government reasserted<br />
ownership with a presidential decree to nationalize YPF.<br />
PARENT COMPANY The Telecom Group<br />
HEADQUARTERS Buenos Aires<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 1990<br />
WEBSITE www.telecom.com.ar<br />
BRAND VALUE US $1,069 million<br />
Personal is the mobile brand of The Telecom Group.<br />
Personal has 18.2 million customers in Argentina and<br />
nearly 70% of those rely on the company’s prepaid service.<br />
Personal drives brand awareness through sponsorship<br />
of signature events, such as the annual Personal Fest<br />
musical festival that draws roughly 70,000 attendees<br />
over two days. The company offers products for different<br />
segments of the market, from the high end Personal<br />
Black handset to the more value priced Personal Touch<br />
smartphone offering. The brand also seeks to drive<br />
loyalty through its Club Personal program. Personal’s<br />
parent company The Telecom Group was created in 1990<br />
when the government allowed public ownership of the<br />
previously state run enterprise. Its shares are traded on<br />
the New York Stock Exchange under the symbol TEO<br />
30 31
ARGENTINA<br />
KEY FACTS AND TOP 5 MOST VALUABLE ARGENTINIAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
3 4 5<br />
PARENT COMPANY Cervecería y Maltería Quilmes<br />
HEADQUARTERS Buenos Aires<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1890<br />
WEBSITE www.cerveceriaymalteriaquilmes.com<br />
BRAND VALUE US $729 million<br />
PARENT COMPANY Macro Group<br />
HEADQUARTERS Buenos Aires<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1988<br />
WEBSITE www.macro.com.ar<br />
BRAND VALUE US $656 million<br />
PARENT COMPANY The Telecom Group<br />
HEADQUARTERS Buenos Aires<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 1990<br />
WEBSITE www.telecom.com.ar<br />
BRAND VALUE US $613 million<br />
Quilmes is Argentina’s best-known beer brand.<br />
Cervecería y Maltería Quilmes is the top brewer in<br />
Argentina and part of the Anheuser-Busch InBev<br />
group’s extensive portfolio of more than 200 brands.<br />
Within the Anheuser-Busch InBev brand hierarchy,<br />
Quilmes is regarded as a “local champion” due to its<br />
leadership position within Argentina. The company<br />
has 4,850 employees and operates five plants<br />
and eight distribution centers. The brand is active<br />
in promoting social initiatives such as “Vivamos<br />
Responsablemente,” focused on encouraging<br />
responsible drinking and the “Futuro Posible”<br />
campaign which provides student scholarships and<br />
donations to hospitals and educational institutions.<br />
Macro is a private bank that has undergone<br />
enormous growth in the last ten years.<br />
Founded in 1988 as a commercial bank, Macro<br />
acquired capital stock in numerous privatized<br />
provincial banks such as Banco Misiones, Banco Salta,<br />
Banco Jujuy, Banco Bansud. It also acquired some<br />
branches of Scotiabank Quilmes, Nuevo Banco Suquía,<br />
Banco Nuevo Bisel, and Banco Privado de Inversiones<br />
Banco Tucumán. This ambitious acquisition program<br />
has resulted in its becoming the third-ranking private<br />
Argentine bank in terms of net assets, the fourth<br />
in terms of deposits and the fifth in terms of credit<br />
outstanding to the private sector. Macro Bank was<br />
listed in the New York Stock Exchange (NYSE) in<br />
2006, becoming the first Argentine company to be<br />
listed abroad since the end of the 1990’s.<br />
Telecom Argentina is one of the main national<br />
telecommunication companies in Argentina.<br />
Telecom Argentina offers local and long distance fixedline<br />
telephony, cellular, data transmission and Internet<br />
services. The company offers mobile service through<br />
its Personal brand and Internet broadband services<br />
through its Arnet brand, which in 2013 launched a video<br />
streaming service called Arnet Play. The increased<br />
bundling of services, coupled with new products and<br />
service introductions, has helped the company achieve<br />
a record low level of customer turnover. Telecom<br />
Argentina is one of the largest employers in the country<br />
with over 15,600 employees nationwide. It began<br />
operations in 1990 after the Argentinian government<br />
completed a transaction allowing for public ownership<br />
of the company, which now trades on the New York<br />
Stock Exchange under the symbol TEO.<br />
32 33
ARGENTINA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
MARIANA FRESNO APARICIO<br />
Client Service Director<br />
Millward Brown, Argentina<br />
Mariana.Aparicio@millwardbrown.com<br />
CHANGE IS<br />
INEVITABLE;<br />
DEVELOPMENT<br />
IS OPTIONAL<br />
We are living in a liquid age, since nothing<br />
seems to be stable, nothing lasts forever.<br />
Suddenly, those things that were safe turned<br />
into something unstable, while some new trends<br />
arose and changed the rules. We all live and<br />
work in the same environment, and in the jungle<br />
of business, those who best adapt to the current<br />
context are the ones who thrive and survive.<br />
The political and economic context poses<br />
short-term challenges and mid-term<br />
uncertainties. But all-level management<br />
is used to facing changes, and brands<br />
in Argentina have mastered the skills<br />
of elasticity. As a result, we see a lot of<br />
examples of brands that look ahead,<br />
despite the success of their past.<br />
CREATING<br />
EVER CLOSER<br />
RELATIONSHIPS<br />
Technological development and its<br />
cascade to a larger population have<br />
enabled a dramatic change, since the new<br />
media environment is shaping the way<br />
we communicate with our friends and<br />
family. By using different applications<br />
and platforms, we are able to talk with<br />
someone who is in China, at no cost, while<br />
sharing files and videos. In this context,<br />
the notion of distance and closeness has<br />
to be redefined. And this also applies to<br />
the relationship between brands and<br />
consumers: What does it mean for a<br />
brand to be close to its consumers? How<br />
can we foster the technical advancement<br />
to get closer? What does it take to<br />
remain meaningful?<br />
Let’s consider some concrete examples<br />
of brands that are surfing the new trends<br />
while tackling specific consumers’ issues:<br />
• In Argentina, Unilever is the<br />
undisputed leader in the personal<br />
care market in general, and in<br />
antiperspirant deodorants for women<br />
in particular, is managing two wellknown<br />
brands: Rexona and Dove.<br />
While taking care of the environment<br />
is an established trend, consumers are<br />
not so willing to spend more money in<br />
favor of eco-friendly products, since<br />
many of them could not meet the<br />
basic functional needs of the category.<br />
But Unilever is challenging this<br />
pattern, because they are launching<br />
smaller packaging which saves raw<br />
materials (less aluminum and others)<br />
but keeps the protective power of the<br />
product, promising to last the same as<br />
the original pack. This bold initiative<br />
requires a clear communication using<br />
a wide range of touchpoints in order<br />
to convey the message in a believable<br />
way. We are confident that with this<br />
Unilever will reaffirm its leadership by<br />
offering a technical solution that keeps<br />
protecting you against perspiration<br />
while setting new trends in the<br />
category.<br />
• Ford Argentina is another illustration<br />
of a brand clearly focused on using<br />
technology as a way to differentiate<br />
from competitors and to command a<br />
premium price. All the recent launches<br />
have endorsed the idea of “Kinetic<br />
Design”, which allowed the parent<br />
brand to leverage all the efforts made<br />
by each model in each segment. The<br />
last campaign successfully introduced<br />
specific features (automatic opening,<br />
push-bottom star, active park assist,<br />
lane-keeping system, automatic brake<br />
at low speed) using an impactful<br />
and synergetic communication that<br />
promoted both the vehicles and the<br />
brand. As a result, Ford remain close<br />
to their customers and challenges<br />
the status quo of the category by<br />
implementing high-end technology.<br />
• There is a preconception that<br />
traditional media such as newspapers<br />
or TV channels are the most<br />
concerned about the development of<br />
new platforms. However, successful<br />
companies are able to see the<br />
opportunity in every crisis, and TV<br />
channel Telefé is proof of that. Instead<br />
of fighting the alternative screens,<br />
they look for ways of integrating<br />
them into their content, thus they<br />
can create a new experience for the<br />
audience. They have launched a mobile<br />
app (Mi Telefé) that allows people to<br />
see exclusive content that enriches<br />
the experience of watching a TV show,<br />
by giving the chance to participate<br />
and to follow “behind the scenes”.<br />
TV Series “Aliados” was a hit among<br />
teenagers, because they could interact<br />
with the story wherever and whenever<br />
they wanted, and they could watch<br />
webisodes before aired.<br />
In conclusion, the key to success is to<br />
embrace technological change in a way<br />
that creates value for the consumers,<br />
making their lives easier and more<br />
enjoyable. Following Socrates’ principle,<br />
the secret of change is to focus all the<br />
energy not on fighting the old, but on<br />
building the new.<br />
34 35
ARGENTINA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THE BATTLE<br />
OF THE TABLE<br />
Try to visualize this for a moment: an independent teenager,<br />
aiming to give the impression of being irreverent and<br />
careless, walks down the street listening to music with<br />
an icy can of a soft drink in his hand. This could be the<br />
stereotyped key visual of an ad for Coke or Pepsi, couldn’t it?<br />
Well, back to the current reality of the Argentinian market,<br />
I bet you won’t easily find any ad like this for Coke nor for<br />
any other soft drink in the frenetic, hectic and multiscreen<br />
media environment.<br />
SIZE MATTERS<br />
The numbers speak for themselves: offtrade<br />
channels account for 93% of soft<br />
drinks volume, and that explains why<br />
the companies are focusing their efforts<br />
on in-home consumption. In order<br />
to increase revenues by selling more<br />
liters, major players have developed<br />
complex price-pack architectures, and<br />
launched bigger bottles. This is the case<br />
with Danone’s Villa del Sur Levité, that<br />
pushed 2.25 liters bottles instead of<br />
the traditional 1.5lt pack. This is great<br />
news for a savvy consumer who looks<br />
for the best deal, because this change<br />
in the bottle size means a higher out of<br />
pocket, but a lower price per liter.<br />
From the communication perspective,<br />
it’s one thing to develop formats<br />
targeted to social occasions, but<br />
creating advertising platforms to win<br />
the battle of everyday lunches and<br />
dinners is a totally different story.<br />
Forget about the celebrities, forget<br />
about the epic music and the majestic<br />
scenery! Now is the time of ordinary<br />
people, sharing an ordinary meal in a<br />
middle-class living room, with a large<br />
bottle of something colorful and tasty<br />
on the table.<br />
Sounds dull? Definitely not! The<br />
resource that most of the companies<br />
have chosen to stand out and gain<br />
differentiation is humor: a wide variety<br />
of jokes and funny situations that<br />
everyone can relate to.<br />
EARNING<br />
THEIR PLACE<br />
I could give you lots of different<br />
examples, but I’d like to highlight the<br />
ones that best identify a distinctive<br />
insight:<br />
1<br />
2<br />
We by Ser, a non-sugar flavored<br />
water brand managed by Danone,<br />
launched the campaign “The angel<br />
of the tables” under the claim<br />
“tables have changed”. The idea is<br />
that in every group of young-adult<br />
friends, you can find someone<br />
with very special preferences, so<br />
disagreements become a special<br />
ingredient of each meeting. H2Oh!,<br />
Pepsico’s flagship in the flavored<br />
water market is adopting a similar<br />
strategy: they developed a campaign<br />
(Silver Effie Award in 2014) in which<br />
a very particular member of a<br />
conservative family causes trouble<br />
in his attempt to bring new flavors of<br />
H2oh! to the table.<br />
Coca-Cola has been working hard<br />
with a “Meals” platform for a couple<br />
of years. The last campaign shows a<br />
rebel rocker girl sitting at the table<br />
complaining about her family. Then<br />
her mom brings her an electric-guitar<br />
shaped fried egg and changes her<br />
mood, helping her to recognize that<br />
in the end family is really important<br />
to her, but in a witty way.<br />
3<br />
Tang, the leader of powder juices,<br />
was challenged by the presence<br />
of new players and substitutes on<br />
the table. With “La mesa de Lucas”<br />
(Lucas’ table) campaign, Mondelez’s<br />
brand tried to reinstate the role<br />
of the kids during lunch or dinner,<br />
since they are the ones who bring<br />
joy to the table. Thanks to a creative<br />
game, Lucas turns a dull moment<br />
into an interactive and dynamic one,<br />
changing the mood of the family.<br />
Tang’s main competitor, the local<br />
brand Arcor, is also attacking the<br />
table but a with more edgy approach,<br />
using an acid humor that focuses on<br />
the conflicts that arise between the<br />
father and his mother-in-law every<br />
time they sit at the table.<br />
To sum up, although many players<br />
may look for ways to increase their<br />
presence during meals so they can gain<br />
market share, not all of them will be<br />
victorious in the battle of the table. It is<br />
necessary to convey relevant messages<br />
to meet the needs of a more demanding<br />
consumer, while commanding a fast<br />
pace of innovation in order to maintain<br />
differentiation. And, as everyone knows,<br />
winning a battle doesn’t guarantee that<br />
you’ll win the war…<br />
SEBASTIÁN CORZO<br />
CS Senior Consultant<br />
Millward Brown, Argentina<br />
Sebastian.Corzo@millwardbrown.com<br />
36 37
BRAZIL
BRAZIL<br />
TOP 50 MOST VALUABLE BRAZILIAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 50 MOST VALUABLE<br />
BRAZILIAN BRANDS 2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1<br />
8,500 7,055 4 20%<br />
Beer<br />
14<br />
779 665 2 17%<br />
Insurance<br />
27<br />
436 287 2 52%<br />
Food & Dairy<br />
40<br />
244 - 2<br />
NEW<br />
ENTRY<br />
Retail<br />
2<br />
5,202 4,177 2 25%<br />
Banks<br />
15<br />
709 422 2 68%<br />
Banks<br />
28<br />
401 345 2 16%<br />
Loyalty Programs<br />
41<br />
224 231 2 -3%<br />
Travel Agencies<br />
3<br />
4,315 3,376 2 28%<br />
Banks<br />
16<br />
607 - 2<br />
NEW<br />
ENTRY<br />
Beer<br />
29<br />
395 - 2<br />
NEW<br />
ENTRY<br />
Technology<br />
42<br />
219 278 1 -21%<br />
Stock Market<br />
4<br />
4,185 3,585 4 17%<br />
Beer<br />
17<br />
605 915 1 -34%<br />
Retail<br />
30<br />
381 609 2 -37%<br />
Retail<br />
43<br />
218 343 4 -36%<br />
Apparel<br />
5<br />
2,757 2,466 2 12%<br />
Food & Dairy<br />
18<br />
558 702 2 -21%<br />
Retail<br />
31<br />
374 328 1 14%<br />
Airlines<br />
44<br />
210 245 3 -14%<br />
Food & Dairy<br />
6<br />
1,859 1,145 4 62%<br />
Beer<br />
19<br />
541 555 1 -3%<br />
Communication Providers<br />
32<br />
369 360 3 3%<br />
Car Rental<br />
45<br />
205 227 1 -10%<br />
Airlines<br />
7<br />
1,700 2,236 5 -24%<br />
Personal Care<br />
20<br />
540 1,005 2 -46%<br />
Food & Dairy<br />
33<br />
320 275 2 16%<br />
Retail<br />
46<br />
198 - 2<br />
NEW<br />
ENTRY<br />
Retail<br />
8<br />
1,309 1,094 4 20%<br />
Beer<br />
21<br />
493 278 2 78%<br />
Loyalty Programs<br />
34<br />
312 320 1 -2%<br />
Health Care<br />
47<br />
198 - 3<br />
NEW<br />
ENTRY<br />
Food & Dairy<br />
9<br />
1,118 896 1 25%<br />
Banks<br />
22<br />
472 509 1 -7%<br />
Health Care<br />
35<br />
310 329 3 -6%<br />
Retail<br />
48<br />
193 235 3 -18%<br />
Apparel<br />
10<br />
1,072 1,103 4 -3%<br />
Retail<br />
23<br />
472 449 3 5%<br />
Retail<br />
36<br />
301 260 2 16%<br />
Education<br />
49<br />
188 - 2<br />
NEW<br />
ENTRY<br />
Retail<br />
11<br />
941 791 1 19%<br />
Payments<br />
24<br />
467 862 1 -46%<br />
Mining<br />
37<br />
268 - 1<br />
NEW<br />
ENTRY<br />
Communication Providers<br />
50<br />
176 199 3 -12%<br />
Airlines<br />
12<br />
843 845 2 0%<br />
Retail<br />
25<br />
457 326 2 40%<br />
Education<br />
38<br />
256 134 3 91%<br />
Retail<br />
Source: Millward Brown and BrandZ<br />
13<br />
821 3,252 1 -75%<br />
Oil & Gas<br />
26<br />
439 434 3 1%<br />
Technology<br />
40 41<br />
39<br />
254 - 4<br />
NEW<br />
ENTRY<br />
Food & Dairy
BRAZIL<br />
KEY FACTS AND BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1<br />
2<br />
PARENT COMPANY Companhia de Bebidas das Américas – AmBev<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1964<br />
WEBSITE www.skol.com.br<br />
BRAND VALUE US $8,500 million<br />
PARENT COMPANY Banco Bradesco SA<br />
HEADQUARTERS Osasco<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1943<br />
WEBSITE www.bradesco.com.br<br />
BRAND VALUE US $5,202 million<br />
BRAND VALUE<br />
Total Value of Brazilian Brands<br />
US$ 48.4 BILLION<br />
Brand Value Change 2014-2015<br />
+6%<br />
Source: Millward Brown and BrandZ<br />
KEY FACTS<br />
Skol is Brazil’s most popular beer. Its marketing<br />
emphasizes enjoyment of life and appeals especially<br />
to young people.<br />
The brand was launched in 1964 in Europe and in 1967<br />
in Brazil. By 1988, it had risen to become the market<br />
leader for beer in Brazil, a position it still retains.<br />
A pioneer of innovation, in 1971 Skol was the first<br />
canned beer in the market, in 1989 it launched the first<br />
aluminum can and in 1993 the long necked bottle.<br />
Its brand positioning is focused on young people: Skol<br />
has promoted various music festivals throughout Brazil,<br />
which has strengthened the brand with this audience.<br />
3<br />
PARENT COMPANY Itaú Unibanco Holding<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1945<br />
WEBSITE www.itau.com.br<br />
BRAND VALUE US $4,315 million<br />
With the acquisition of HSBC operations in Brazil,<br />
Bradesco became the second largest private bank in<br />
terms of total assets. The bank is the world’s thirtysecond<br />
largest in market capitalization in 2014.<br />
Bradesco offers online banking, insurance, pension<br />
plans, credit card services, savings bonds, and<br />
personal and commercial loans. The bank continues<br />
with its strategy to become Brazil’s most accessible<br />
bank, mainly by having its own branches around<br />
the country. It also intends to reach potential new<br />
customers among the country’s rising middle class.<br />
Bradesco pioneered the sale of insurance and pension<br />
plans through its subsidiary Bradesco Seguros.<br />
4<br />
PARENT COMPANY Companhia de Bebidas das Américas – AmBev<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1888<br />
WEBSITE www.brahma.com.br<br />
BRAND VALUE US $4,185 million<br />
Capital City<br />
Brasília<br />
Currency<br />
REAL<br />
Area 8.51 million km 2<br />
Population (THOUSAND) 202,000 (2014)<br />
Population growth rate (ANNUAL) 0.8% (2010-2015)<br />
Life expectancy 74 years (2013)<br />
Literacy rate of 15-24 year olds 98.6% (2012)<br />
Unemployment rate 5.4% (2013)<br />
4.9% (2014)<br />
ANNUAL GDP AT CURRENT PRICES<br />
Total at current prices: US$ 2.3 trillion (2014)<br />
GDP per capita (annual dollars): US$ 11,612 (2014)<br />
Growth rate: 0.1% (2014)<br />
Country’s share in regional GDP: 49.2% (2014)<br />
Net foreign direct investment: US$ 67.5 billion (2013)<br />
US$ 66 billion (2014)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
Itaú is the largest Brazilian private bank in terms of<br />
total assets, the largest financial conglomerate in<br />
Latin America and the world’s twenty-third largest<br />
bank in terms of market value in 2014.<br />
Established 70 years ago, Itaú evolved to its current<br />
size as a result of the 2008 merger of Banco Itaú and<br />
Unibanco. The bank, which operates in South America,<br />
Europe, Asia and the United States, has almost 4,200<br />
branches and almost 28,000 ATMs in Latin America.<br />
Following the merger, Itaú is building on its reputation<br />
for innovation and efficiency, emphasizing personal<br />
service with the tagline Feito para Você (Made for You).<br />
Like its competitor Bradesco, Itaú is also aiming to<br />
attract new customers from Brazil’s rising middle class,<br />
by offering credit cards to individuals who, until now,<br />
lacked access to bank credit.<br />
Brahma is well known for its innovative and witty<br />
advertising that relies heavily on sex appeal.<br />
Brazil’s second-largest beer in market share (after<br />
Skol), Brahma is marketed in a total of 31 countries.<br />
Founded in 1888 by Companhia Cervejaria Brahma,<br />
the brand is owned by AB InBev, the world’s largest<br />
brewer.<br />
In 2007, Brahma launched the Brahma Fresh in the<br />
Northeast region, in order to compete with low-price<br />
beers.<br />
42 43
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
5<br />
6<br />
9<br />
10<br />
PARENT COMPANY BRF – Brasil Foods SA<br />
HEADQUARTERS Itajaí<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1944<br />
WEBSITE www.sadia.com.br<br />
BRAND VALUE US $2,757 million<br />
PARENT COMPANY Companhia de Bebidas das Américas – AmBev<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1885<br />
WEBSITE www.antarctica.com.br<br />
BRAND VALUE US $1,859 million<br />
PARENT COMPANY BTG Pactual SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1981<br />
WEBSITE www.btgpactual.com<br />
BRAND VALUE US $1,118 million<br />
PARENT COMPANY Ultrapar Participações SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1937<br />
WEBSITE www.ipiranga.com.br<br />
BRAND VALUE US $1,072 million<br />
Sadia is a leading producer of processed and<br />
frozen foods such as hamburger patties and pizza.<br />
It exports to more than 65 countries.<br />
Founded in 1944 and listed on the stock market in<br />
1971 as Sadia Concórdia SA Indústria e Comércio,<br />
Sadia also produces dairy products and serves<br />
both consumers and commercial customers,<br />
including fast-food chains. Sadia is part of BRF, a<br />
public company formed in 2009 by the merger of<br />
Sadia with another food giant, Perdigão. Exporting<br />
activities began in the 1970s with the sale of frozen<br />
halal-certified chicken to the Middle East.<br />
Antarctica is a leading Brazilian beer and soft drink.<br />
Launched in 1885 in São Paulo, Antarctica adopted<br />
the image of two penguins as its logo in 1935. This<br />
logo continues to symbolize the brand. Antarctica<br />
beer is positioned as “the beer for the good moments<br />
of life.” The brand’s most popular soft drink is a soda<br />
called Guaraná Antarctica made from the tropical<br />
guaraná berry.<br />
In 1999, Antarctica combined with Brazil’s other<br />
large beer brand, Brahma, to form AmBev, which<br />
subsequently joined with Belgium’s Interbrew to<br />
become the world’s largest beer marketer, now<br />
called AB InBev.<br />
BTG Pactual is the leading investment bank in Latin<br />
America.<br />
It was established in 1983 as a brokerage in Rio de<br />
Janeiro. In May 2006, UBS AG purchased Pactual,<br />
creating “UBS Pactual”, the division of UBS in Latin<br />
American countries. In October 2008, a group of<br />
partners left UBS Pactual and joined with Persio<br />
Arida to create BTG, a global investment company<br />
with offices in São Paulo, Rio de Janeiro, London, New<br />
York and Hong Kong. In 2009, BTG acquired UBS<br />
Pactual, resulting in the creation of BTG Pactual. BTG<br />
Pactual specializes in investment banking, wealth<br />
management and asset management.<br />
Ipiranga is Brazil’s largest private fuel distribution<br />
company, with a network of approximately 7,100<br />
service stations.<br />
After expanding in rural Brazil during the 1960s and<br />
70s, Ipiranga became a national brand through its<br />
acquisition of Atlantic in 1993. In 2008, Grupo Ultra<br />
bought both Ipiranga (in most regions), and Texaco,<br />
as Chevron was known in Brazil. The collection of gas<br />
stations began to consolidate under the Ipiranga name.<br />
The brand, with its slogan “Passionate about cars, like<br />
every Brazilian” (“Apaixonados por carro, como todo<br />
brasileiro”) is well known by Brazilians. This strong<br />
equity plays a role in swaying consumer decisions in a<br />
highly commoditized category where convenience is<br />
often the key driver.<br />
7<br />
8<br />
11<br />
12<br />
PARENT COMPANY Natura Cosméticos SA<br />
HEADQUARTERS Itapecerica da Serra<br />
INDUSTRY Personal Care<br />
YEAR OF FOUNDATION 1969<br />
WEBSITE www.natura.com.br<br />
BRAND VALUE US $1,700 million<br />
PARENT COMPANY Companhia de Bebidas das Américas – AmBev<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1853<br />
WEBSITE www.bohemia.com.br<br />
BRAND VALUE US $1,309 million<br />
PARENT COMPANY Cielo SA<br />
HEADQUARTERS Barueri<br />
INDUSTRY Payments<br />
YEAR OF FOUNDATION 2009<br />
WEBSITE www.cielo.com.br<br />
BRAND VALUE US $941 million<br />
PARENT COMPANY Lojas Americanas SA<br />
HEADQUARTERS Rio de Janeiro<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1929<br />
WEBSITE www.lojasamericanas.com.br<br />
BRAND VALUE US $843 million<br />
Natura is Brazil’s leading manufacturer and<br />
marketer of cosmetics.<br />
Formed in 1969 and first publicly traded in 2004,<br />
Natura has used a direct sales approach for more<br />
than 30 years, and now has more than 1.6 million<br />
sales representatives (“consultants”) in Argentina,<br />
Australia, Brazil, Chile, Colombia, United States,<br />
France, Mexico, Peru and Venezuela.<br />
One of the first cosmetics companies to market<br />
natural and environmentally friendly products,<br />
Natura has a reputation for social responsibility. The<br />
company is also known for its emphasis on research<br />
and development and its use of ordinary people<br />
rather than supermodels in its advertisements.<br />
Bohemia is a leading premium beer in Brazil.<br />
Established in 1853, Bohemia enjoys the distinction<br />
of being the oldest beer brand in Brazil as well as the<br />
leader in the premium segment, thanks to a strategy of<br />
limiting distribution to select locations and introducing<br />
limited edition offers. The Bohemia brand is available in<br />
four variations, including wheat and dark beers.<br />
Bohemia was acquired by Brazilian brewer Antarctica<br />
Paulista in 1961. The brand became part of an even<br />
larger brewer in 1999 when Antarctica Paulista and<br />
Brahma brewery merged to created Ambev. Then in<br />
2004, Belgium-based InterBrew acquired a majority<br />
interest in AmBev to form a new global brewing giant<br />
known as InBev. In 2008 Bohemia became part of a still<br />
larger company known as Anheuser-Busch InBev.<br />
Cielo is the leader in persuading merchants to join<br />
a credit card network, and in handling the payment<br />
process.<br />
Formed in 1995 by several financial organizations,<br />
including Visa International, Bradesco, Banco do Brasil,<br />
Banco Real and the now obsolete Banco Nacional,<br />
Cielo was initially known as Visanet. The company was<br />
renamed in advance of its initial public offering (IPO),<br />
which was one of the largest in Brazil’s history. In an<br />
industry challenged by deregulation, Cielo surpasses its<br />
competition in profitability thanks to its competitive<br />
pricing and reputation for good customer service.<br />
Lojas Americanas operates a national chain of<br />
discount department stores.<br />
One of Brazil’s largest non-food retailers, Lojas<br />
Americanas sells over 60,000 items in categories<br />
including apparel, health and beauty, home<br />
furnishings, and toys. With distribution centers in<br />
São Paulo, Rio de Janeiro, and Recife, the company<br />
has approximately 950 stores in Brazil as well as<br />
an online presence. The brand has a long heritage in<br />
Brazil – it was established in 1929 – and is popular<br />
with consumers from all income groups.<br />
44 45
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
13<br />
14<br />
17<br />
18<br />
PARENT COMPANY Petróleo Brasileiro SA<br />
HEADQUARTERS Rio de Janeiro<br />
INDUSTRY Oil & Gas<br />
YEAR OF FOUNDATION 1953<br />
WEBSITE www.petrobras.com<br />
BRAND VALUE US $821 million<br />
PARENT COMPANY Porto Seguro SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Insurance<br />
YEAR OF FOUNDATION 1945<br />
WEBSITE www.portoseguro.com.br<br />
BRAND VALUE US $779 million<br />
PARENT COMPANY Grupo Pão de Açúcar<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1952<br />
WEBSITE www.casasbahias.com.br<br />
BRAND VALUE US $605 million<br />
PARENT COMPANY Grupo Pão de Açúcar<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1948<br />
WEBSITE www.paodeacucar.com.br<br />
BRAND VALUE US $558 million<br />
Petrobras is Latin America’s fourth largest company<br />
in market value and the world’s fourth-largest energy<br />
company in terms of production of oil and gas.<br />
Controlled by the Brazilian government, Petrobras<br />
is publicly traded and operates in 28 countries. The<br />
brand is highly regarded for its deep-sea exploration<br />
and is credited with enabling Brazil to achieve<br />
energy self-sufficiency. The company also operates<br />
oil refineries and a network of gas stations. This<br />
national presence contributes to the brand’s stature<br />
in Brazil, which is also enhanced by its reputation for<br />
social responsibility and high-profile sponsorships of<br />
sporting and cultural events. Since 2014 the company<br />
has suffered problems with falling oil prices, exchange<br />
rate depreciation and corporate governance.<br />
One of Brazil’s leading insurance companies, Porto<br />
Seguro offers a comprehensive portfolio.<br />
With products spanning vehicle, health, accident, life<br />
and personal injury insurance, Porto Seguro offers<br />
policies to individuals, families, companies, and<br />
government agencies in Brazil and Uruguay through<br />
direct and indirect subsidiaries. Since the company<br />
established an alliance with Itaú in 2009, Porto Seguro<br />
products have been available at the bank’s branches.<br />
A retail chain specializing in furniture and<br />
home appliances, Casas Bahia was acquired in<br />
2009 by Grupo Pão de Açúcar.<br />
Since its establishment in 1952, Casas Bahia has<br />
appealed to low-income customers by offering<br />
in-store credit and a reputation for quality and<br />
affordability. The acquisition by Grupo Pão de<br />
Açúcar meant the company was then well placed<br />
to benefit from increased consumer spending<br />
by Brazil’s rising middle class. Since 2010 Casas<br />
Bahia has reached customers throughout Brazil,<br />
with more than 500 stores and a web presence.<br />
Pão de Açúcar is a neighborhood supermarket with a<br />
focus on the middle class consumer.<br />
Pão de Açúcar is part of the giant retail conglomerate<br />
Group Pão de Açúcar, which began as a pastry shop<br />
in 1948 and now includes more than 180 stores. The<br />
brand is known for quality, innovation, and strong<br />
customer service. The chain enjoys high levels of<br />
shopper loyalty, and was among the first supermarkets<br />
to offer imported products during the 1990s.<br />
15<br />
16<br />
19<br />
20<br />
PARENT COMPANY Banco do Brasil SA<br />
HEADQUARTERS Brasília<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1908<br />
WEBSITE www.bb.com.br<br />
BRAND VALUE US $709 million<br />
PARENT COMPANY Brasil Kirin SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1939<br />
WEBSITE www.schin.com.br<br />
BRAND VALUE US $607 million<br />
PARENT COMPANY Vivo Participações SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 2003<br />
WEBSITE www.vivo.com.br<br />
BRAND VALUE US $541 million<br />
PARENT COMPANY BRF – Brasil Foods SA<br />
HEADQUARTERS Itajaí<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1934<br />
WEBSITE www.perdigao.com.br<br />
BRAND VALUE US $540 million<br />
Banco do Brasil is the oldest active bank in Brazil<br />
and one of the oldest financial institutions in the<br />
world. It is also the largest Latin American bank in<br />
terms of total assets (considering both SOE and<br />
private banks).<br />
Banco do Brasil played an important role during<br />
the global financial crisis in 2008-2009, providing<br />
credit at affordable rates to small- and mediumsized<br />
companies. Founded in 1808 by Prince Regent<br />
João VI to fund the debt of a kingdom that included<br />
Portugal, Brazil, and the Portuguese colonies in<br />
Africa, Banco do Brasil is a publicly traded company<br />
that is controlled by the Brazilian government.<br />
The Schin brand is one of the most popular beers in<br />
the country, with a significant presence in São Paulo<br />
State and the northeast region.<br />
The story began with a small and simple plant in 1939<br />
in São Paulo. At that time, the production line was<br />
limited to soft drinks; it only started producing its first<br />
Pilsen beer in 1989. Today the brand’s product line<br />
consists of beer, draft beer, soft drinks and mineral<br />
water. These are distributed throughout Brazil, as well<br />
as several countries of Mercosur, Asia and Europe.<br />
Japanese Kirin Holdings acquired the Schincariol Group<br />
in 2011.<br />
Vivo is the largest telecommunications company in<br />
Brazil, with over 106 million users: 82.7 million in<br />
mobile (in which it holds the largest market share<br />
29.3% - June/15), and 23.7 million fixed-line users.<br />
As the result of a joint venture between Telefónica, the<br />
Spanish telecommunications provider, and Portugal<br />
Telecom (PT), Vivo invests heavily in advertising to<br />
deliver its message, “Best coverage in Brazil.” In 2010,<br />
Telefónica bought PT’s shares, and Vivo has since<br />
advanced Telefónica’s strategy by building brands<br />
around the convergence of phone, TV, and Internet<br />
communication.<br />
The 2009 merger of Perdigão and Sadia into BRF,<br />
created the world’s largest poultry company.<br />
Perdigão is one of Brazil’s largest food producers,<br />
specializing in frozen and chilled products. Its range<br />
of about 3,000 items is distributed throughout Brazil<br />
and to more than 100 countries. The company’s scale<br />
enables it to pursue a low-cost producer strategy.<br />
Established in 1934 as Brandalise, Ponzonie & Cie, the<br />
company changed its name to Perdigão SA in 1958. It<br />
began exporting in 1975 and went public in 1980.<br />
46 47
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
21<br />
22<br />
25<br />
26<br />
PARENT COMPANY Smiles SA<br />
HEADQUARTERS Barueri<br />
INDUSTRY Loyalty Programs<br />
YEAR OF FOUNDATION 1994<br />
WEBSITE www.smiles.com.br<br />
BRAND VALUE US $493 million<br />
PARENT COMPANY UnitedHealth Group<br />
HEADQUARTERS Rio de Janeiro<br />
INDUSTRY Health Care<br />
YEAR OF FOUNDATION 1972<br />
WEBSITE www.amil.com.br<br />
BRAND VALUE US $472 million<br />
PARENT COMPANY Kroton Educacional<br />
HEADQUARTERS Belo Horizonte<br />
INDUSTRY Education<br />
YEAR OF FOUNDATION 1993<br />
WEBSITE www.anhanguera.com<br />
BRAND VALUE US $457 million<br />
PARENT COMPANY TOTVS SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Technology<br />
YEAR OF FOUNDATION 1969<br />
WEBSITE www.totvs.com<br />
BRAND VALUE US $439 million<br />
Smiles is engaged in loyalty rewards. It was initially<br />
developed in 1994, as a part of Varig (a Brazilian<br />
airline company that went bankrupt in 2010).<br />
Today Smiles is an independent business unit that<br />
administers, manages and operates exclusively The<br />
Smiles Program’s GOL Linhas Aéreas<br />
The company has partnerships with companies and<br />
various branches of the market providing benefits,<br />
products and services institutions, in addition to<br />
rewards for air services. The Smiles Program has over<br />
10 million members and 150 air and non-air partners.<br />
Amil is the largest provider of managed health care<br />
in Brazil.<br />
From its beginnings in 1972 with the acquisition of<br />
Casa de Saúde São José (a small maternity clinic in<br />
the city of Duque de Caxias), Amil has expanded both<br />
organically and through strategic acquisitions and<br />
now has about five million members. The company<br />
provides medical plans for both individuals and<br />
businesses, and its network of providers includes<br />
more than 3,300 hospitals, 11,000 clinics and 12,000<br />
laboratories. UnitedHealth Group, the giant Amercian<br />
healthcare company, bought Amil operations in 2012.<br />
Anhanguera Educacional is one of Brazil’s largest<br />
private education companies.<br />
Founded in 1994 by a group of professors, Anhanguera<br />
Educacional Participações provides post-secondary<br />
education to prepare individuals for productive roles<br />
in Brazil’s fast-developing economy. With more than<br />
73 campuses and hundreds of long-distance learning<br />
centers, Anhanguera serves more than 400,000<br />
students, many of who come from lower income and<br />
rural backgrounds. In 2013 Anhanguera was acquired<br />
by Kroton Educacional, creating the world’s largest<br />
educational group with more than 1.4 million students.<br />
TOTVS is Brazil’s largest provider of integrated<br />
information technology solutions and the second<br />
largest in Latin America.<br />
Known for its innovation and high level of customer<br />
service, TOTVS has been growing rapidly and<br />
delivering strong financial results. The company’s<br />
origins date back to a service bureau called SIGA<br />
(Sistemas Integrados de Gerência Automática<br />
Ltda, formed in 1969. In 2006, in advance of an<br />
IPO, the company changed its name from Microsiga<br />
Software SA to TOTVS SA. It is currently the leader<br />
in ERP in Brazil, with 50 percent of market share.<br />
23<br />
24<br />
27<br />
28<br />
PARENT COMPANY Iguatemi Empresas de Shopping Centers<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1979<br />
WEBSITE www.iguatemi.com.br<br />
BRAND VALUE US $472 million<br />
PARENT COMPANY Vale SA<br />
HEADQUARTERS Rio de Janeiro<br />
INDUSTRY Mining<br />
YEAR OF FOUNDATION 1942<br />
WEBSITE www.vale.com<br />
BRAND VALUE US $467 million<br />
PARENT COMPANY JBS SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1956<br />
WEBSITE www.seara.com.br<br />
BRAND VALUE US $436 million<br />
PARENT COMPANY Multiplus SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Loyalty Programs<br />
YEAR OF FOUNDATION 2010<br />
WEBSITE www.multiplusfidelidade.com.br<br />
BRAND VALUE US $401 million<br />
Iguatemi is one of the largest shopping mall<br />
operators in Brazil.<br />
The company designs, develops and operates<br />
regional centers throughout the country.<br />
Formed in 1979, the company initiated its<br />
shopping center activity with the acquisition of<br />
Construtora Alfredo Matias SA. The transaction<br />
included an ownership interest in Iguatemi São<br />
Paulo, which was constructed in 1966 as the<br />
first shopping center in Brazil. The company<br />
also developed the first shopping center in the<br />
Brazilian countryside – Iguatemi Campinas –<br />
and the first shopping center in the southern<br />
region of Brazil – Iguatemi Porto Alegre.<br />
Vale is the third-largest mining company in the world<br />
and the largest producer of iron ore and nickel.<br />
The company gains more than 50 percent of its<br />
revenue from iron ore. Diverse mining operations<br />
including copper, bauxite, potash and aluminum<br />
generate the balance of revenues. One of Brazil’s<br />
largest logistics companies with railroads, ports and<br />
fleets of ships, Vale also operates in the electric energy<br />
sector, participating in several consortia and running<br />
nine hydroelectric plants. Originally governmentowned,<br />
Vale became a private company in 1997.<br />
Seara is Brazil’s largest exporter of pork meat.<br />
The story began in 1956 in the city of Seara City,<br />
in Santa Catarina (a state in Brazil), with the<br />
inauguration of the first large fridge in the region.<br />
The expansion of business and investments in<br />
quality processes and products made the Seara<br />
brand synonymous with quality in poultry and<br />
pigs, both “in natura” and processed.<br />
Seara is controlled by JBS Group, a world leader<br />
in processing and exporting of bovine, ovine<br />
meat and poultry.<br />
Multiplus provides a network of loyalty programs<br />
across diverse business sectors and currently has<br />
almost 13.8 million participants.<br />
The sectors include airlines, hotels, rental cars, retail,<br />
banking and gas stations. Multiplus members enjoy<br />
the flexibility of earning and redeeming points without<br />
restriction within the network. TAM Airlines formed<br />
the company in 2009 to expand and strengthen its<br />
own frequent flyer program. In addition to TAM, the<br />
list of partnerships includes Oi (telecommunications),<br />
Livraria Cultura (bookstore), Accor (hotels), Peugeot<br />
(cars) and Apple (technology). Multiplus also provides<br />
services for managing, interconnecting and operating<br />
customer loyalty programs.<br />
48 49
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
29<br />
30<br />
33<br />
34<br />
PARENT COMPANY Naspers<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Technology<br />
YEAR OF FOUNDATION 1999<br />
WEBSITE www.buscape.com.br<br />
BRAND VALUE US $395 million<br />
PARENT COMPANY Grupo Pão de Açúcar<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1989<br />
WEBSITE www.extra.com.br<br />
BRAND VALUE US $381 million<br />
PARENT COMPANY Lojas Renner SA<br />
HEADQUARTERS Porto Alegre<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1912<br />
WEBSITE www.lojasrenner.com.br<br />
BRAND VALUE US $320 million<br />
PARENT COMPANY OdontoPrev SA<br />
HEADQUARTERS Barueri<br />
INDUSTRY Health Care<br />
YEAR OF FOUNDATION 1987<br />
WEBSITE www.odontoprev.com.br<br />
BRAND VALUE US $312 million<br />
Buscapé is a free search engine for comparing prices<br />
and products and connecting consumers and sellers.<br />
It is the largest free search engine in Latin America<br />
with approximately 30 million visits per month and<br />
over 11 million registered products. Buscapé establishes<br />
business partnerships with shops, brands and products<br />
and groups and then organizes their goods and services<br />
in an online marketplace, making the purchase process<br />
much quicker and easier for customers. In 2009,<br />
Buscapé sold 91% of its shares to South African media<br />
conglomerate Naspers Limited, through its digital<br />
media company MIH Holdings – a move which has<br />
contributed to the internationalization of the brand.<br />
Extra is a multi-sector banner of Brazil’s largest<br />
retail conglomerate, Grupo Pão de Açúcar.<br />
Extra’s retail portfolio includes over 130 hypermarkets<br />
called Extra Hiper; the convenience store Minimercado<br />
Extra and approximately 204 full-line supermarkets<br />
called Extra Supermercado. The brand also includes<br />
pharmacies called Drogarias Extra, (located within<br />
existing Extra outlets) and operates Extra gas<br />
stations at some retail locations. It runs home<br />
appliance stores and is also present online.<br />
Lojas Renner is Brazil’s largest apparel retailer.<br />
Having expanded rapidly following a public offering<br />
in 2005, Lojas Renner now operates around 260<br />
stores all over Brazil. The organization began in 1912<br />
as AJ Renner, a retailer specializing in outdoor gear<br />
for gauchos in rural areas. The style became popular<br />
with city customers. The company transformed into<br />
a department store retailer, with an expanded range,<br />
during the 1940s. It was renamed Lojas Renner in 1965<br />
and became publicly traded in 1967.<br />
OdontoPrev is the largest dental benefits company in<br />
Brazil, with over five million members.<br />
The organization develops dental plans for corporate,<br />
institutional and not-for-profit clients. The OdontoPrev<br />
network includes approximately 25,000 certified<br />
dentists of which approximately 16,000 are specialists<br />
and post-graduates, located in more than 2,000 cities<br />
throughout Brazil. To reach people in the underserved<br />
rising middle class, OdontoPrev recently launched an<br />
initiative to sell dental plans directly to consumers.<br />
31<br />
32<br />
35<br />
36<br />
PARENT COMPANY Embraer SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 1969<br />
WEBSITE www.embraer.com.br<br />
BRAND VALUE US $374 million<br />
PARENT COMPANY Localiza SA<br />
HEADQUARTERS Belo Horizonte<br />
INDUSTRY Car Rental<br />
YEAR OF FOUNDATION 1973<br />
WEBSITE www.localiza.com<br />
BRAND VALUE US $369 million<br />
PARENT COMPANY Magazine Luiza SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1957<br />
WEBSITE www.magazineluiza.com.br<br />
BRAND VALUE US $310 million<br />
PARENT COMPANY Estácio Participações SA<br />
HEADQUARTERS Rio de Janeiro<br />
INDUSTRY Education<br />
YEAR OF FOUNDATION 1970<br />
WEBSITE www.portal.estacio.br<br />
BRAND VALUE US $301 million<br />
Embraer is the third largest commercial aviation<br />
company in the world.<br />
Embraer was created in 1969 as an initiative of the<br />
Brazilian government in a strategic project to establish<br />
the aviation industry in the country. Privatized in 1994,<br />
the company designs, develops, manufactures and<br />
markets systems and aircrafts. Its core business is the<br />
business segment of Commercial Aviation, Executive<br />
Aviation, and Defense & Security Systems.<br />
It has factories and offices in various parts of the<br />
world and more than 5,000 aircraft delivered on all<br />
continents. Today it is one of the leading aerospace<br />
exporters in the world.<br />
Localiza operates the largest car rental network in<br />
Brazil.<br />
Localiza began its rental operations in 1973, with six<br />
used and financed Volkswagen Beetles in the city<br />
of Belo Horizonte. Today it has 560 branches in 243<br />
cities throughout Brazil and eight other countries in<br />
Latin America. The expansion beyond Brazil was made<br />
possible by the franchising of Localiza’s branches. Its<br />
total fleet is over 118,000 cars. Localiza also offers<br />
commercial leasing and used car sales.<br />
Magazine Luiza is one of Brazil’s largest appliance<br />
retailers.<br />
The chain focuses on serving the nation’s low-to-middle<br />
income consumers. It employs more than 24,000<br />
people and operates a network of 736 stores. These<br />
stores are located in 16 Brazilian states and supported<br />
by a network of eight distribution centers.<br />
Magazine Luiza was one of the first companies to adopt<br />
the multichannel approach to retail. Brazil’s second<br />
largest online retailer, it is also an innovator in the use<br />
of social media to drive online sales, which grew 40<br />
percent last year and now account for 11 percent of<br />
total company sales.<br />
Estácio is one of Brazil’s largest private-sector postsecondary<br />
groups, in terms of student numbers.<br />
With a strong presence across most of Brazil, Estacio<br />
has more than 500,000 students distributed in<br />
university centers and colleges. There are more than<br />
5,000 teachers offering post-graduate courses,<br />
undergraduate and other educational courses. It is also<br />
well known for offering Summer Courses open to the<br />
community in the months of July and January.<br />
50 51
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
37<br />
38<br />
41<br />
42<br />
PARENT COMPANY Global Village Telecom SA<br />
HEADQUARTERS Curitiba<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 2000<br />
WEBSITE www.gvt.com.br<br />
BRAND VALUE US $268 million<br />
PARENT COMPANY Raia Drogasil SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1935<br />
WEBSITE www.drogasil.com.br<br />
BRAND VALUE US $256 million<br />
PARENT COMPANY CVC Turismo<br />
HEADQUARTERS Santo André<br />
INDUSTRY Travel Agencies<br />
YEAR OF FOUNDATION 1972<br />
WEBSITE www.cvc.com.br<br />
BRAND VALUE US $224 million<br />
PARENT COMPANY BM&F BOVESPA SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Stock Market<br />
YEAR OF FOUNDATION 2008<br />
WEBSITE www.bmfbovespa.com.br<br />
BRAND VALUE US $219 million<br />
GVT is one of the country’s three most recognized<br />
brands in the segment of fixed line and pay TV.<br />
Present in Brazil since 2000, Global Village Telecom<br />
(GVT) was originally a subsidiary of a Dutch company<br />
with the same name and the American companies<br />
ComTech Communications Technologies and RSL. In<br />
2009 GVT was sold to Vivendi, a French media group.<br />
Three years ago GVT was sold to Telefónica.<br />
GVT’s offering spans high speed internet, pay TV, fixed<br />
line and telecom solutions for corporate enterprise.<br />
Drogasil is the fourth largest retail drugstore by sales<br />
revenue in Brazil and has 578 stores throughout<br />
northeast, southeast and midwest regions.<br />
The company has been a retailer of pharmaceutical<br />
healthcare, skin care and personal care products<br />
for the past 75 years. Today it operates more than<br />
280 stores in five Brazilian states and more than 75<br />
cities. In 2011, DrogaRaia and Drogasil merged to<br />
become Raia Drogasil S.A., the largest company in the<br />
pharmaceutical retail segment in Brazil.<br />
CVC is the largest tourism operator in Brazil and<br />
Americas.<br />
CVC was founded in 1972 by Guilherme Paulus and<br />
Carlos Vicente Cerchiari (the CVC brand comes from<br />
the initials of this name). It is based in the city of Santo<br />
André (near capital of São Paulo State).<br />
Over the decades, CVC has expanded its business<br />
into selling tourism packages with air transportation,<br />
and exclusive chartering of transatlantic vessels and<br />
aircraft. It has also opened stores in malls and today<br />
has 936 outlets across the country, as well as a virtual<br />
presence. In 2009, the private equity fund The Carlyle<br />
Group bought a 63.6% stake from Paulus.<br />
BM&F BOVESPA is the leading stock exchange in Latin<br />
America and the second largest in the Americas.<br />
BM&F BOVESPA was created in 2008 through the<br />
integration of the Brazilian Mercantile & Futures<br />
Exchange (BM&F) with the São Paulo Stock Exchange.<br />
BM&F BOVESPA introduced stock investment to<br />
a wider audience while at the same time gaining<br />
credibility in the corporate segment with its record of<br />
successful IPOs.<br />
39<br />
40<br />
43<br />
44<br />
PARENT COMPANY Grupo Pão de Açúcar<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 2006<br />
WEBSITE www.taeq.com.br<br />
BRAND VALUE US $254 million<br />
PARENT COMPANY Walmart do Brasil SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 2000<br />
WEBSITE www.bompreco.com.br<br />
BRAND VALUE US $244 million<br />
PARENT COMPANY São Paulo Alpargatas SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Apparel<br />
YEAR OF FOUNDATION 1907<br />
WEBSITE www.havaianas.com<br />
BRAND VALUE US $218 million<br />
PARENT COMPANY M Dias Branco<br />
HEADQUARTERS Porto Alegre<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1951<br />
WEBSITE www.adria.com.br<br />
BRAND VALUE US $210 million<br />
Taeq offers a varied range of healthy products.<br />
Currently, the TAEQ brand is divided into segments<br />
covering nutrition, organic, sports and beauty.<br />
Created in 2006, Taeq is an own-brand of the<br />
supermarket network Pão de Açúcar Group.<br />
Research commissioned by the Group identified a<br />
type of consumer looking to lead a healthier life.<br />
These findings prompted the creation of a brand<br />
focused on wellbeing, health and quality of life: Taeq.<br />
(The name comes from the Eastern words “TAO”<br />
(path, balance) and “EKI” (vital energy).<br />
BomPreço, a Walmart Brasil brand, is a traditional<br />
supermarket chain known for quality, convenience<br />
and low prices.<br />
The first BomPreço supermarket began in 1966 in a<br />
small warehouse within the Brazilian northeast. It has<br />
since grown to become one of the largest supermarket<br />
chains in that region.<br />
The input of its parent company, the major North<br />
American retail chain WalMart, has enabled the<br />
technological modernization and the expansion of the<br />
BomPreco network to 61 stores.<br />
Havaianas produces flip-flop sandals, selling around<br />
360 million pairs annually in over 107 countries.<br />
The company introduced the sandals in the early 1960s,<br />
adopting a Japanese design made from rice straw and<br />
producing it in rubber. With an emphasis on color and<br />
design, starting in early 1990, Havaianas transformed<br />
the shoes from inexpensive and utilitarian to fashion<br />
statements. Havaianas has expanded its operations<br />
through brand franchise stores; currently there are 374<br />
stores across the country.<br />
Adria produces and distributes crackers, cookies,<br />
biscuits, and pasta products.<br />
The brand was established in 1951 in Porto Alegre,<br />
southern Brazil, by a family of Italian immigrants.<br />
In 2001, four companies within the sector (Adria,<br />
Basilar, Isabela and Zabet) integrated to centralize<br />
strategic planning, streamline operational processes<br />
and maximize market opportunities. In 2003, Adria<br />
was acquired by Group M. Dias, a national leader in<br />
the manufacture and sale of biscuits and other food<br />
products.<br />
52 53
BRAZIL<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
45<br />
46<br />
49<br />
PARENT COMPANY Gol SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 2001<br />
WEBSITE www.gol.com.br<br />
BRAND VALUE US $205 million<br />
PARENT COMPANY Raia Drogasil SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1905<br />
WEBSITE www.drogaraia.com.br<br />
BRAND VALUE US $198 million<br />
PARENT COMPANY Walmart do Brasil SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 2006<br />
WEBSITE www.mercadotododia.com.br<br />
BRAND VALUE US $188 million<br />
GOL is the second largest airline company for<br />
domestic fights in Brazil.<br />
With its low cost, low fare business model, Gol has<br />
democratized air travel in Brazil and South America.<br />
GOL has a route network in South America and<br />
the Caribbean, with almost 900 flights a day to<br />
62 destinations, domestic and international, in 13<br />
countries. The company has several partnerships<br />
with key international airlines, such as Delta Airlines,<br />
AeroMexico and Air France.<br />
Droga Raia is Brazil’s fifth largest retail drugstore (by<br />
sales revenue), with a strong presence in southeast,<br />
midwest and southern regions throughout 544 stores.<br />
The story began in 1905 with the opening of Pharmacia<br />
Raia in Araraquara City in the São Paulo state. At that<br />
time, the pharmacist prepared his customer’s medical<br />
prescriptions entirely by hand. The name DrogaRaia<br />
was adopted in 1982 and in 2011, DrogaRaia and<br />
Drogasil merged, becoming Raia Drogasil S.A., the<br />
largest company in Brazil’s pharmaceutical sector.<br />
Todo Dia’s ‘neighborhood store’ format focuses on<br />
providing low-price every day goods to the consumers.<br />
Todo Dia opened in 2006 in the northeast region of<br />
Brazil. Today it is a network of supermarkets and<br />
hypermarkets of approximately 180 stores throughout<br />
the country. A strong sense of corporate social<br />
responsibility means the company gives priority to<br />
hiring people from the communities where it operates.<br />
47<br />
48<br />
50<br />
PARENT COMPANY JBS SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1953<br />
WEBSITE www.friboi.com.br<br />
BRAND VALUE US $198 million<br />
PARENT COMPANY Arezzo Indústria e Comércio SA<br />
HEADQUARTERS Campo Bom<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1972<br />
WEBSITE www.arezzo.com.br<br />
BRAND VALUE US $193 million<br />
PARENT COMPANY TAM SA<br />
HEADQUARTERS São Paulo<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 1961<br />
WEBSITE www.tam.com.br<br />
BRAND VALUE US $176 million<br />
Friboi is the beef brand of JBS Group, the largest<br />
meat processing company in Brazil.<br />
Friboi began in 1953 in Anápolis city in the state of<br />
Goiás, where José Batista Sobrinho started selling<br />
beef in his local neighborhood. Later he moved the<br />
business to Brasilia, then the new capital of Brazil.<br />
Within a decade his company had a presence in<br />
many cities in the central-west region and by the<br />
1980s he was selling beef to supermarkets all over<br />
the country.<br />
Friboi became part of JBS Group in 2007.<br />
Arezzo is a leading retailer of women’s fashion<br />
footwear and accessories.<br />
Two brothers, Anderson and Jefferson Birman, created<br />
the Arezzo brand in 1972. Today the brand focuses on<br />
high quality and contemporary designs, introducing<br />
around eight new collections annually. Currently Arezzo<br />
operates 455 brand franchise stores and 53 own<br />
stores. The Arezzo Company also markets under three<br />
other brands: Schutz, Anacapri and Alexandre Birman.<br />
With the inclusion of these brands, the company is<br />
present at more than 2,700 points of sale.<br />
TAM is the largest airline of Brazil and Latin America.<br />
Although TAM is now known for its domestic and<br />
international passenger service, the airline began in<br />
1961 as an airfreight company, operating small oneengine<br />
planes from its base in Marília in the state of<br />
São Paulo. As the company grew, it acquired regional<br />
carriers and developed a reputation for good customer<br />
service. In 2010, the company signed an agreement<br />
with LAN, the Chilean airline, to form the LATAM Airline<br />
Group.<br />
54 55
BRAZIL<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
HOW ARE BRANDS<br />
ADAPTING TO THE<br />
ECONOMIC SHIFT?<br />
ROBERTO DE NAPOLI<br />
Director of Operations<br />
Millward Brown Vermeer, South America<br />
Roberto.Napoli@millwardbrown.com<br />
Brazil – the largest economy<br />
in Latin America – has seen an<br />
economic decline since 2010 that<br />
has been reflected in the steady<br />
decrease of GDP, according to<br />
Cepal – Economic Commission for<br />
Latin America and the Caribbean.<br />
In 2014 the GDP closed with almost zero growth,<br />
a mere 0.1%. In addition to this low economic<br />
performance scenario, other important events marked<br />
the year such as the presidential elections, the world’s<br />
biggest sporting event – the World Cup FIFA – and the<br />
discovery of the corruption scheme involving the main<br />
oil company in the country, Petrobras.<br />
The Brazilian economic slowdown in 2014 was<br />
mainly caused by the decrease in investments due<br />
to falling domestic production, lower capital goods<br />
importation of machinery and equipment and negative<br />
performance of civil construction. Overall, there was<br />
poor industry performance - a drop of 1.2%, and high<br />
inflation of 6.41%, which reduced consumer purchasing<br />
power. Furthermore, the slowdown in the Chinese<br />
economy affected some industries, as China is an<br />
important market for Brazil.<br />
2014 was a year marked by one of<br />
the toughest electoral disputes in<br />
the country’s history. The elections<br />
occurred in the middle of public<br />
demonstrations where the Brazilians<br />
fought against issues such as<br />
corruption and lack of investments<br />
in health, safety and infrastructure.<br />
The final result was the re-election of<br />
President Dilma Rousseff (Workers’<br />
Party - PT) with the tightest vote<br />
margin since the return of direct<br />
elections in 1989, with only 3<br />
percentage points compared to the<br />
opponent Aécio Neves (Brazilian Social<br />
Democratic Party - PSDB).<br />
In the pre-World Cup period, the<br />
government made strong efforts to<br />
convince everyone that the event<br />
would help boost the local economy,<br />
and bring new opportunities such as<br />
job creation through investment and<br />
the attracting of a large number of<br />
tourists to the country. However, after<br />
the event it was confirmed that the<br />
tournament’s overall effect on GDP was<br />
only negligible.<br />
This environment of political and<br />
economic uncertainties was reflected<br />
in 2014 in the decline in confidence of<br />
the business sector and the constraint<br />
on public finances in Brazil. In the<br />
coming years the real economic growth<br />
is expected to remain low: World Bank<br />
is forecasting a 1.3% GDP growth in<br />
2015 and 1.1% in 2016.<br />
How are the brands dealing with this<br />
economic scenario? It depends on<br />
the category we are referring to.<br />
Brands from the B2B segment like<br />
Petrobras (oil) and Vale (steel) – with<br />
less dependency on the role played<br />
by the brands in the purchasing<br />
decision process when compared to<br />
consumer goods brands – suffered<br />
with the slowing Chinese economy,<br />
which affected the commodities<br />
prices. In addition, Petrobras had<br />
problems related to corruption and<br />
corporate governance. Petrobras<br />
and Vale decreased 75% and 46% in<br />
brand value, respectively, and the<br />
segment as a whole dropped 71%.<br />
The Retail macroeconomic segment<br />
in Brazil experienced its weakest<br />
performance in the last eleven years:<br />
the sales grew only 2.2% in 2014. As<br />
a consequence, the segment showed<br />
a decrease of 2% in comparison to<br />
the previous ranking.<br />
Service was another category that<br />
observed a drop in brand value in<br />
2015, decreasing 5%. The segment<br />
saw the number of brands dropping<br />
from 18 in the previous ranking to 14<br />
in 2015. Moreover, the sub-segments<br />
Health Care, Communication<br />
Providers and Airlines also had a<br />
weak performance in the year.<br />
The good news came from the Beer,<br />
Food & Personal Care and Financial<br />
Institutions categories.<br />
Beer, Food & Personal Care showed a<br />
19% growth in 2015, mainly driven by<br />
the AB Inbev’s beer brands Skol – the<br />
most valuable Brazilian brand, Brahma,<br />
Antarctica and Bohemia, which<br />
combined value grew 23%. On the other<br />
hand, Natura, the cosmetic company,<br />
saw its brand value drop 26%: the<br />
company has seen competitors<br />
increase their sales channels very<br />
quickly.<br />
The recovery in the banking spreads<br />
and the consolidation of M&A<br />
benefited the brands from the<br />
Financial Institutions category, which<br />
grew 26% in terms of value in 2015.<br />
Bradesco and Itaú, which account for<br />
almost 80% of the segment, increased<br />
25% and 28%, respectively.<br />
These two categories – Beer and<br />
Finance – also observed a significant<br />
movement in 2014: some important<br />
brands sought ways to keep their<br />
growth and profitability, such as Skol<br />
and Bradesco, which have focused<br />
their brand strategy on attracting<br />
middle class consumers. This strategy<br />
seems to be paying-off: these two<br />
brands – the top two most valuable<br />
Brazilian brands – raised their brand<br />
values by 20% and 25%, respectively -<br />
impressive performances.<br />
56 57
BRAZIL<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CHALLENGES FOR<br />
BRANDS IN THE<br />
BRAZILIAN MARKET<br />
The BrandZ ranking for the most valuable brands in Brazil<br />
consolidates Skol as a three-time winning brand. Consistent<br />
communication investment by Skol and relationship building<br />
aimed at the brand target’s interests, especially music (music<br />
festivals), are the basis for this success. The ranking also shows<br />
Ambev’s expertise in the proper management of its brand portfolio,<br />
positioning four brands among the ten most valuable in Brazil.<br />
VALKIRIA GARRÉ<br />
Managing Director<br />
Millward Brown, Brazil<br />
Valkiria.Garre@millwardbrown.com<br />
Even in challenging times, the brands in this segment<br />
can still grow in value, and Bradesco and Itaú are<br />
positioned as second and third respectively.<br />
Petrobrás is the brand most significantly affected by<br />
the economic crisis, mainly due to the lack of brand<br />
value. In 2015, it was the brand most impacted by<br />
political issues. In the past the most valuable brand<br />
in Brazil, it has lost 75% of its value, falling back 8<br />
positions in the ranking for 2015. The political issues<br />
and allegations of corruption at the company have also<br />
significantly affected the economy of some Brazilian<br />
regions and cities that were closely linked to the oil<br />
exploration industry.<br />
The slowdown and disruption or freezing<br />
of contracts in the construction<br />
area of major infrastructure projects<br />
have added to the current level of<br />
unemployment.<br />
In a scenario of problems and<br />
challenges, a positive indicator stands<br />
out. Reaping the results of ‘Bolsa<br />
Familia’ — the federal program for<br />
income distribution — the HDI (human<br />
development index) rose one position,<br />
according to UNDP (United Nations<br />
Development Program). It ranks 79th<br />
in the world surpassing the average for<br />
Latin America and the Caribbean.<br />
CONSCIOUS<br />
CONSUMPTION<br />
The government’s social programs<br />
(and specifically the ‘Bolsa Familia’),<br />
combined with easy access to credit and<br />
the economic stability, helped realize<br />
the dreams of many people, giving them<br />
access to aspirational items.<br />
However, the 2015 global economic<br />
crisis coupled with the disruptive<br />
scenario of the local political arena has<br />
created quite a challenging environment<br />
for the economy and for brands.<br />
Affected by the crisis, people had their<br />
earlier dreams shattered. Credit has<br />
become more rare and more expensive,<br />
the level of debt is significant and<br />
the population is under pressure to<br />
practice conscious consumption. This<br />
means buying only what is necessary,<br />
significantly changing purchasing<br />
patterns.<br />
The trading-down process permeates<br />
behaviors in every social class: trading<br />
a trip to Disney for a Brazilian beach;<br />
instead of eating out in restaurants<br />
a shared lunch at family’s or friends’<br />
home; young people crowding the streets<br />
drinking beer kept in coolers; cars<br />
replaced at longer intervals, often for<br />
less aspirational brands or used cars –<br />
there are many more such examples.<br />
This prevailing attitude has also seen the<br />
informal economy grow, with the sale<br />
of homemade products and handmade<br />
items sold by street vendors.<br />
CONCERNS FOR<br />
THE FUTURE<br />
The major change in the economy a<br />
return to very high interest rates and<br />
inflation, which had been under control<br />
for almost two decades.<br />
The economic instability requires<br />
government intervention in the exchange<br />
rate, significantly devaluing the Real<br />
(local currency). This devaluation<br />
positively meets the expectations of the<br />
export market, especially in agricultural<br />
and mineral raw commodities, making<br />
it more competitive. On the other hand,<br />
the devaluation creates challenges in<br />
the investment field especially when it<br />
comes to expanding production capacity.<br />
Brazil still depends on importing<br />
technology and equipment developed<br />
abroad.<br />
With the growth and stability of two<br />
decades slowing down, 2015 is a year of<br />
change. In this landscape, brands may<br />
need to dig deep in order to grow back.<br />
58 59
BRAZIL<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CRISIS OR<br />
OPPORTUNITY?<br />
Ancient Chinese wisdom shows that the words “opportunity” and “crisis”<br />
are complementary concepts, or two sides of the same coin. In the brand<br />
scenario, where major changes take place, this duality represents a<br />
critical moment that requires short-term, effective action without losing<br />
its focus on relationship-building strategy and the brand background.<br />
AURORA YASUDA<br />
Knowledge Management<br />
Millward Brown, Brazil<br />
Aurora.Yasuda@millwardbrown.com<br />
After two decades of economic<br />
stability, the 2015 financial crisis,<br />
combined with the disruptive scenario<br />
of the local political environment, puts<br />
brands at a crossroads never before<br />
experienced. More than ever, flexibility,<br />
creativity, optimism, resilience and<br />
many other adjectives attributed to<br />
Brazilians are the tools that brands<br />
will need too.<br />
Facing new levels of unemployment<br />
and debt, the key words have become<br />
‘conscious consumption’ i.e. buying what<br />
one can currently afford and meeting the<br />
basic needs. This is a significant change<br />
in Brazilians’ buying patterns. A plentiful<br />
table has always meant wealth, power<br />
and happiness.<br />
The most important thing is to<br />
understand consumer needs in this<br />
situation and offer alternatives that can<br />
maintain the loyalty ties that brands<br />
have been building over time. In the<br />
categories without actual differentiation<br />
between brands, it becomes an<br />
interesting trade-off for cheaper brands<br />
and a choice of promotions and sale.<br />
It’s worth nothing that learnings<br />
and historical monitoring of brand<br />
performance by BrandZ show that<br />
promotional and pricing strategies can<br />
undermine brand value, despite being<br />
effective at returning a more immediate<br />
result. And it shows that strong<br />
brands, after a critical situation, more<br />
quickly bounce back to previous levels<br />
as consumers return to their earlier<br />
patterns of consumption and purchase.<br />
ALL TOGETHER NOW<br />
Another seismic shift is being created by<br />
the sharing economy, which emerges as<br />
a great opportunity. ”Sharing” is the new<br />
trend that requires a breaking away from<br />
the traditional business models.<br />
In the sharing economy there is no capital<br />
ownership nor is it subject to government<br />
regulation. Examples of shared<br />
businesses that have challenged the<br />
status quo are AIRBNB and UBER, in the<br />
accommodation and urban transportation<br />
(taxis) businesses respectively.<br />
In these two examples, despite<br />
movements against them, the trend<br />
appears to be permanent. AIRBNB<br />
has even been nominated as a<br />
recognized accommodation source and<br />
recommended for the 2016 Olympic<br />
Games in Rio de Janeiro.<br />
Shared home offices emerge; food items<br />
and cleaning products are collectively<br />
purchased by condominiums, buildings,<br />
family and friends. Sharing is the new<br />
buzzword: share talents in cooking, arts,<br />
crafts and also in professional projects.<br />
Changing the mindset has created new<br />
businesses opportunities.<br />
Will the brands that participate in<br />
the sharing economy be the strongest<br />
brands in the future, following in Google’s<br />
and Facebook’s footsteps? How about<br />
conscious consumption? How can brands<br />
include in their scope and in their offering<br />
something that plays to this perspective?<br />
The 2015 economic and political situation<br />
bring innovation opportunities for brands.<br />
The key is to find a way to both be part of<br />
the sharing economy and meet the need<br />
for conscious consumption without losing<br />
sight of what the brand stands for.<br />
60 61
BRAZIL<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
NEUROSCIENCE:<br />
HELPING BRANDS<br />
MAKE THE<br />
CONNECTION<br />
FRANCISCO BAYEUX<br />
Global Innovations<br />
Millward Brown, Brazil<br />
Francisco.Bayeux@millwardbrown.com<br />
2015 has been a challenging year for Brazil<br />
so far. Inflation is increasing faster than<br />
predicted, and it’s not clear when the<br />
economic downturn will pass.<br />
Maybe this is all a reflection of the<br />
current political crisis in the country<br />
as many expert analysts point to, but<br />
whatever the cause, one thing is a<br />
certainty: brands will need to work hard<br />
to make consumers pay a premium for<br />
them.<br />
And what is the key thing to take into<br />
account to maintain a strong brand in<br />
a scenario like this? Before answering<br />
this question, let’s take one step back<br />
and get some context for the consumer<br />
response to this, which is to understand<br />
how a purchase decision is made.<br />
Neuroscience has taught us that both<br />
the intuitive and reflexive parts of our<br />
brain play a role in decision making,<br />
but that we pay more attention to the<br />
intuitive/automatic portion of our brain.<br />
The reason for this is very clear, it is<br />
because it takes more energy to access<br />
the reflexive portion of our brain.<br />
However, it’s fairly obvious that in<br />
difficult economic periods, people<br />
will think more about the things they<br />
need to buy, be it by questioning the<br />
importance of making that particular<br />
purchase or wondering if they need to<br />
spend less money on certain categories<br />
that they are used to buying.<br />
But this doesn’t mean that in this<br />
scenario brands will need to work<br />
harder on their ‘rational’ justifications of<br />
why they are a good purchase, because<br />
as explained before, people will continue<br />
to initially react instinctively to a brand<br />
before reflecting on the reasons to buy<br />
it. The one thing that gains importance<br />
in this period is making the bridge<br />
between the intuitive associations a<br />
certain brand may have and the rational<br />
arguments of why to buy it.<br />
A WELL<br />
CONNECTED BRAND<br />
The Brazilian beer brand Skol is a great<br />
example to help understand this (once<br />
again, it’s top of this country’s brand<br />
ranking with a positive variation of<br />
20% in its brand value). If you ask any<br />
Brazilian what they think of Skol, they<br />
will probably instantaneously mention<br />
things like ‘fun’, ‘playful’, ‘happiness’,<br />
‘friends’. These associations have been<br />
built over the years that the brand has<br />
been communicating under the ‘Desce<br />
redondo’ big idea (something that<br />
can be translated as ‘easy to drink’).<br />
Making the connection between these<br />
emotional/positioning aspects with<br />
the product functional benefit of being<br />
a light beer to drink really cold is quite<br />
natural. It is in just this kind of situation,<br />
when people are having fun, that<br />
they want to drink a beer with these<br />
characteristics – therefore, the rational<br />
arguments to buy the brand come<br />
even more easily to mind because<br />
of the intuitive, automatic footprint<br />
that it has built, mainly through its<br />
communication efforts.<br />
It is these clear connections<br />
between the brand proposition and<br />
the positive functional benefits<br />
that will help brands maintain a<br />
strong relationship with consumers<br />
as they seek more justification for<br />
their purchasing decisions. And this<br />
may mean an even more important<br />
role for the brand communication<br />
efforts, as it is the best way you can<br />
reinforce or build these associations.<br />
62 63
BRAZIL<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
'DEAR BRAND,<br />
I RECALL YOU.<br />
BUT I DON'T<br />
WANT TO BUY YOU'<br />
RENATO DUO<br />
Strategic Planning Manager<br />
J. Walter Thompson, São Paulo<br />
Renato.Duo@jwt.com<br />
Emotional promises made by<br />
brands are no longer merely passive<br />
messages received by the consumer.<br />
Brand equity is built on relevance of<br />
purpose that is meaningful to the<br />
empowered consumer´s point of view.<br />
You know those awesome emotional<br />
benefits your brand has? The ones that<br />
were generated after a meticulous<br />
decision-making process? Decisions<br />
that included a very complex process<br />
with many costly and timely steps<br />
like: thousands of hours of analysis,<br />
form-filling, an infinite number<br />
of emails, pre-trials, discussions,<br />
rejections, approvals, brainstorming<br />
and what-ifs, inside marketing and<br />
communication departments or<br />
agencies’ communication and branding<br />
rooms.<br />
Is this picture familiar?<br />
Well, it’s better to forget it.<br />
Or, being less apocalyptic: you need to<br />
rethink it.<br />
The new game requires more extensive<br />
perspective and a deeper dive. The<br />
building of positive equity in this<br />
postmillennial, post comments, post<br />
everything era requires more complex<br />
thinking.<br />
In this new world, the borders around<br />
emotional promises are wider. And<br />
easier to breach.<br />
AS A CONSUMER,<br />
I NEED TO BELIEVE<br />
It’s no longer an issue of advertising in<br />
itself. It’s something much bigger, that<br />
goes beyond equity building. Nowadays,<br />
any movement made by the brand<br />
counts. Even the more prosaic decisions<br />
in a production line help to define this<br />
emotional bonding. Building equity is<br />
becoming more and more complex.<br />
Everything brands do in their daily<br />
routines to sustain business has an<br />
enormous influence on the consumers<br />
when they are at the point of sale,<br />
deciding whether to choose the box<br />
on the top or bottom shelf. Nothing<br />
escapes the consumer’s radar.<br />
THE 'BUT' SYNDROME:<br />
A NEW TENSION<br />
IN THE BRAND-<br />
CONSUMER<br />
RELATIONSHIP<br />
My bank is constantly telling me that<br />
it is there when I need it. But they raise<br />
fees every year and I keep reading<br />
how they have been breaking revenue<br />
records.<br />
My mobile phone carrier had very good<br />
reception. But I heard someone in<br />
customer services added an abuse to<br />
the system and that was printed on the<br />
client’s bill.<br />
There’s a delicious yogurt brand. But I<br />
read a blogger talking about the amount<br />
of preservatives used to make it creamy<br />
and that scared me.<br />
There is always a “but”. That’s one of the<br />
results of this hyper-information era.<br />
This tiny little word has damaged many<br />
relationships, especially between brands<br />
and consumers. We are all looking for<br />
relationships that we can hold on to in<br />
the long term to support us, introduce<br />
to our parents and take out to dinner<br />
unashamedly. You wouldn’t do any of<br />
that if you were in doubt, would you?<br />
Relationships between brands, people<br />
and channels are becoming more and<br />
more liquid. It’s up to the brands to pick<br />
up on this fluidity and truly embrace<br />
transparency. After all, perceptions<br />
change at every turn.<br />
J. Walter Thompson Worldwide,<br />
the world’s best-known marketing<br />
communications brand, has been<br />
creating pioneering solutions that build<br />
enduring brands and business for more<br />
than 150 years. Headquartered in New<br />
York, J. Walter Thompson is a true<br />
global network with more than 200<br />
offices in over 90 countries, employing<br />
nearly 10,000 marketing professionals.<br />
The agency consistently ranks among<br />
the top networks in the world and<br />
continues to hold a dominant presence<br />
in the industry by staying on the<br />
leading edge—from hiring the industry’s<br />
first female copywriter to developing<br />
award-winning branded content today.<br />
For more information, follow us @JWT_<br />
Worldwide.<br />
www.jwt.com<br />
64 65
CHILE
CHILE<br />
KEY FACTS AND TOP 15 MOST VALUABLE CHILEAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 15<br />
MOST VALUABLE<br />
CHILEAN BRANDS 2015<br />
BRAND VALUE<br />
Total Value of Chilean Brands<br />
US$ 23.6 MILLION<br />
Brand Value Change 2014-2015<br />
-17%<br />
Source: Millward Brown and BrandZ<br />
#<br />
Brand<br />
6<br />
7<br />
8<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
2,398 3,058 5 -22%<br />
985 1,262 5 -22%<br />
921 987 4 -7%<br />
Airlines<br />
Retail<br />
Retail<br />
9<br />
729 932 5 -22%<br />
Retail<br />
#<br />
Brand<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
4,709 6,084 5 -23%<br />
3,107 4,107 5 -24%<br />
2,845 2,486 5 14%<br />
2,758 3,181 5 -13%<br />
Retail<br />
Retail<br />
Retail<br />
Oil & Gas<br />
2,595 3,175 3 -18%<br />
Banks<br />
10<br />
11<br />
12<br />
13<br />
14<br />
15<br />
536 550 3 -2%<br />
Banks<br />
459 414 4 11%<br />
Retail<br />
446 557 4 -20%<br />
Beer<br />
427 763 4 -44%<br />
Retail<br />
387 406 2 -5%<br />
Banks<br />
328 348 5 -6%<br />
Retail<br />
KEY FACTS<br />
Capital City<br />
Santiago<br />
Currency<br />
CHILEAN PESO<br />
Area 756 thousand km 2<br />
Population (THOUSAND) 17,770 (2014)<br />
Population growth rate (ANNUAL) 0.8% (2010-2015)<br />
Life expectancy 80 years (2013)<br />
Literacy rate of 15-24 year olds 98.9% (2012)<br />
Unemployment rate 5.9% (2013)<br />
6.4% (2014)<br />
ANNUAL GDP AT CURRENT PRICES<br />
Total at current prices: US$ 258 billion (2014)<br />
GDP per capita (annual dollars): US$ 14,520 (2014)<br />
Growth rate: 1.9% (2014)<br />
Country’s share in regional GDP: 5.4% (2014)<br />
Net foreign direct investment: US$ 9.3 billion (2013)<br />
US$ 9.9 billion (2014)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
Source: Millward Brown and BrandZ<br />
68 69
CHILE<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1 2 5<br />
6<br />
PARENT COMPANY S.A.C.I. Falabella<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1889<br />
WEBSITE www.falabella.com<br />
BRAND VALUE US $4,709 million<br />
PARENT COMPANY Sodimac SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1988<br />
WEBSITE www.sodimac.cl<br />
BRAND VALUE US $3,107 million<br />
PARENT COMPANY Banco de Chile SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1893<br />
WEBSITE www.bancochile.cl<br />
BRAND VALUE US $2,595 million<br />
PARENT COMPANY Latam Airlines Group SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 1929<br />
WEBSITE www.lan.com<br />
BRAND VALUE US $2,398 million<br />
Falabella is the leading department store retailer in Chile.<br />
Falabella operates 40 large department stores throughout Chile<br />
and is the leading brand in the retail channel. The brand appeals<br />
to Chile’s more affluent shoppers with a consistently executed<br />
fashion forward merchandising strategy that enables it to remain<br />
the industry leader. The brand’s first store opened in 1958.<br />
Following several decades of expansion throughout Chile, its<br />
presence was extended regionally in the 1990s.<br />
There are now 39 Falabella stores in Peru, Argentina and<br />
Colombia. The origins of the brand date back to 1889 when<br />
Italian immigrant Salvatore Falabella opened a tailor shop.<br />
Today, the brand he created is synonymous with department<br />
store retailing and also serves as the corporate identity of<br />
parent company SACI Falabella. This major conglomerate has<br />
extensive interests across the retail industry including the Mall<br />
Plaza shopping center brand, the Sodimac home improvement<br />
brand, the Tottus supermarket brand as well as financial services<br />
offered under the Banco de Falabella brand created in 1998.<br />
Homecenter Sodimac is Chile’s Leading Home Improvement<br />
brand.<br />
The Homecenter brand appears on 67 stores throughout<br />
Chile that are focused on serving consumer needs for home<br />
improvement products. The brand is the most prevalent of<br />
the three formats its parent company Sodimac uses to serve<br />
the home improvement, building and construction materials<br />
– a market it has segmented by homeowners, contractors<br />
and medium-to-large construction companies. The origins of<br />
the Homecenter brand date back to the 1940s, when a small<br />
company known as Sogeco began providing construction<br />
companies in Valparaíso with building materials. In 1952, the<br />
company became known as Sodimac. It entered the home<br />
improvement retail space in 1988, with the introduction of<br />
the Homecenter brand. In 2003, Sodimac became part of<br />
the Falabella retail conglomerate, which just two years earlier<br />
had bought out Home Depot’s ownership interest in a joint<br />
venture established in 1997. The Homecenter brand now enjoys<br />
a regional presence beyond Chile, with 52 stores located in<br />
Argentina, Colombia and Peru.<br />
Banco de Chile is one of the nation’s largest full service<br />
financial institutions.<br />
Banco de Chile is a commercial bank focused on serving<br />
individuals and corporations with traditional banking products<br />
and services. It ranks among Chile’s leading consumer lenders<br />
and originators of mortgage loans. The bank’s branch network<br />
has 441 locations. As part of a plan adopted in 2010, Banco<br />
de Chile is focused on expanding its branch network in areas<br />
outside of Santiago.<br />
Founded in 1893, with the merger of Banco Nacional de<br />
Chile, Banco Agricola and Banco de Valpariso, Banco de Chile<br />
became the nation’s largest privately held bank. The bank<br />
remained privately controlled through the 1970s when the<br />
Chilean government asserted ownership of other Chilean<br />
financial institutions. The bank’s long history and record of<br />
independence have enabled the brand to associate itself with<br />
stability and reliability, attributes that were reinforced in 2002<br />
with the merger of Banco de A. Edwards and again in 2008 with<br />
the Banco de Chile and Citibank Chile merger.<br />
LAN is Chile’s top airline.<br />
The LAN brand is instantly recognizable throughout Latin<br />
America due to the company’s extensive aircraft fleet,<br />
which features a distinctive blue and white color scheme<br />
and the signature LAN logo in large letters. LAN provides<br />
passenger service to 15 cities in Chile as well as to hundreds of<br />
destinations throughout the Americas and overseas with direct<br />
service and through code share agreements with other carriers<br />
and participation in the Oneworld alliance since 2000. LAN also<br />
operates a cargo business that generates nearly 30 percent<br />
of its revenue. The Chilean government established the airline<br />
in 1929 as Lan Chile SA. In 1989, LAN began a privatization<br />
process that was concluded in 1994. LAN is finalizing a merger<br />
with top Brazilian airline TAM SA that has created a company<br />
known as LATAM Airlines Group SA. With a combined fleet of<br />
more than 300 aircraft, the new company’s aspiration is to<br />
become the 3rd largest carrier in the world.<br />
3 4 7<br />
8<br />
PARENT COMPANY Walmart Chile SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1976<br />
WEBSITE www.lider.cl<br />
BRAND VALUE US $2,845 million<br />
PARENT COMPANY Compañía de Petróleos de Chile Copec SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Oil & Gas<br />
YEAR OF FOUNDATION 1934<br />
WEBSITE www.copec.cl<br />
BRAND VALUE US $2,758 million<br />
PARENT COMPANY Cencosud SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1900<br />
WEBSITE www.paris.cl<br />
BRAND VALUE US $985 million<br />
PARENT COMPANY S.A.C.I. Falabella<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 2002<br />
WEBSITE www.tottus.cl<br />
BRAND VALUE US $921 million<br />
The Lider supermarket brand is owned by Walmart.<br />
Lider operates 69 supermarkets and 57 smaller format Express<br />
Lider stores. In early 2009, Wal-Mart Stores, Inc. acquired<br />
a controlling interest in the Lider brand’s parent company,<br />
Distribución y Servicios D&S SA. The following year D&S<br />
changed its name to Walmart Chile SA. Under Walmart’s<br />
ownership, the Lider brand has placed an increased emphasis<br />
on everyday low prices in keeping with the longstanding<br />
strategy of its parent company. In addition, growth of the Lider<br />
brand has taken a backseat to Walmart Chile’s other food<br />
formats, Ekono and SuperBodega aCuenta, which serve the<br />
market in a no frills and limited assortment fashion.<br />
Copec is Chile’s leading fuel brand.<br />
Copec has been in existence for 78 years and is Chile’s best-known<br />
brand of fuel, with an estimated market share of 62 percent.<br />
The company leveraged its petrochemical expertise to enter the<br />
market for lubricants in 1996. To enhance the Copec network of<br />
620 fuel stations, the company created a complementary brand<br />
called Pronto. Pronto describes three convenience store formats<br />
where expanded assortments of general merchandise and food<br />
are offered at Copec branded service stations under the banners<br />
of Ciudado, Pronto or Barra. Copec also operates a chain of 200<br />
small format non-fuel convenience stores under the Punto Copec<br />
brand, introduced in 2000.<br />
Paris is the second largest department store brand in Chile.<br />
Spanish entrepreneur José María Couso established the Paris<br />
brand in 1900 with the opening of the Paris Furniture store. In<br />
1950, the name changed to Almacenes Paris and in 2005 the<br />
company’s name reverted to Paris following an acquisition by<br />
retail conglomerate Cencosud.<br />
Paris is the second largest department store brand in Chile<br />
where it operates 36 stores in leading shopping centers. It<br />
appeals to shoppers with a differentiated product assortment<br />
that includes brands from well-known designers complemented<br />
by a range of well-established proprietary brands available in<br />
key categories such as apparel, home and electronics.<br />
Tottus, a network of supermarkets and hypermarkets, was first<br />
established in Peru in 2002, as part of the Falabella group. In<br />
2004, Falabella brought the brand to Chile by acquiring a local<br />
supermarket chain and renaming it Tottus. With 41 outlets in<br />
Chile and 34 in Peru, the Tottus chain includes supermarkets that<br />
sell traditional categories of food and personal care product, and<br />
hypermarkets offering durable goods, white goods, electronics<br />
and homeware.<br />
70 71
CHILE<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
9 10<br />
13<br />
PARENT COMPANY Cencosud SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1976<br />
WEBSITE www.jumbo.cl<br />
BRAND VALUE US $729 million<br />
PARENT COMPANY BBVA Group<br />
HEADQUARTERS Santiago<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1981<br />
WEBSITE www.provida.cl<br />
BRAND VALUE US $536 million<br />
PARENT COMPANY Ripley Corp SA Y Subsidiarias<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1956<br />
WEBSITE www.ripley.cl<br />
BRAND VALUE US $427 million<br />
Jumbo was Chile’s first hypermarket chain.<br />
Jumbo opened its first hypermarket in Santiago in 1976. Founded<br />
by German Horst Paulmann, he used Jumbo as a stepping<br />
stone to build parent company Cencosud into what today is<br />
one of Latin America’s dominant retail holding companies.<br />
Currently, there are Jumbo 32 stores in Chile, including 13 in the<br />
Santiago area. The company operates large format stores that<br />
average 8,250 square meters. Cencosud uses the Jumbo brand<br />
for some of its hypermarkets outside of Chile, particularly in<br />
Argentina. The brand offers a broad assortment of merchandise<br />
at low prices. It also offers private brands, backed by a double<br />
guarantee that allows dissatisfied customers a choice of a refund<br />
or double the quantity of a comparable item.<br />
The Pension Fund Administrator Provida (Provida<br />
AFP) is the leading manager of pension funds in<br />
Chile, with 59 branches nationwide.<br />
Founded in 1981, the main business of Provida AFP is<br />
the management of individual capitalization accounts<br />
and the provision of life and disability benefits, such<br />
as senior retirement pensions. In October 2013, the<br />
company was acquired by MetLife Inc., from Banco<br />
Bilbao Vizcaya Argentaria S.A. (BBVA).<br />
Ripley is a major brand within the retail sector in Chile,<br />
operating 39 department stores that sell apparel and<br />
household products.<br />
The company also has a financial services arm that offers credit<br />
cards and other financial services. Brothers Lazaro and Marcelo<br />
Calderón founded Ripley in Santiago in 1956. The brand began<br />
expanding outside of Santiago in 1986. Originally focused on<br />
serving low-to-middle income customers, Ripley has broadened<br />
its appeal to more affluent shoppers during the past 15 years. In<br />
1997, Ripley expanded its presence to Peru.<br />
11 12 14<br />
15<br />
PARENT COMPANY Parque Arauco<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1982<br />
WEBSITE www.parquearauco.cl<br />
BRAND VALUE US $459 million<br />
PARENT COMPANY Compañía de Cervecerías Unidas<br />
HEADQUARTERS Santiago<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1902<br />
WEBSITE www.ccu.cl<br />
BRAND VALUE US $446 million<br />
PARENT COMPANY Banco de Crédito e Inversiones<br />
HEADQUARTERS Santiago<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1937<br />
WEBSITE www.bci.cl<br />
BRAND VALUE US $387 million<br />
PARENT COMPANY Cencosud SA<br />
HEADQUARTERS Santiago<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1993<br />
WEBSITE www.easy.cl<br />
BRAND VALUE US $328 million<br />
Parque Arauco was founded 32 years ago and it is the third<br />
largest shopping mall company in Chile. The company has<br />
ambitious plans for international expansion; currently its<br />
portfolio includes 27 shopping centers that operate in Chile,<br />
Peru and Colombia.<br />
Cristal is the leading brand from Chile’s largest brewer.<br />
The Cristal brand has been a market share leader in Chile for<br />
the past 20 years thanks to strong and consistent advertising<br />
support. It is regarded as the flagship brand of Compañía de<br />
Cervecerías Unidas (CCU). The origins of the brand date back<br />
to 1850 when Chile’s first brewery was opened in Valparaíso by<br />
don Joaquín Plagemann. It later merged with other brewers and<br />
in 1902 became Compañía Cervecerías Unidas SA. In 1992, the<br />
company’s shares began trading on the New York Stock Exchange<br />
under the symbol CCU.<br />
Bci specializes in savings & deposits, securities brokerage,<br />
asset management and insurance.<br />
The bank enjoys the distinction of being one of the few<br />
financial institutions that remained private during Chile’s<br />
period of nationalization. Since 1984, Bci has promoted its<br />
positioning statement, “We are different.” The bank reinforces<br />
that brand identity with a distinctive and colorful logo. The<br />
bank was founded in 1937 in Santiago and opened its first<br />
branch, in Valparaíso, in 1956. In 1987 it created its first<br />
subsidiary, Bancrédito Securities SA Agent and in 1999, the<br />
first international branch opened in Miami. Bci’s range of service<br />
offerings, and presence throughout Chile with 300 offices, has<br />
enabled it to remain one of the nation’s most important banks.<br />
Easy is Chile’s second largest home improvement retailer.<br />
The Easy brand was founded in Argentina in 1993 with the<br />
opening of its first home improvement store. The following<br />
year saw the brand enter Chile where it now operates 29 stores<br />
(compared with 39 Easy stores in Argentina). Easy stores<br />
stock roughly 35,000 items and a core aspect of the brand’s<br />
value proposition is low prices. Easy offers a “never pay more,”<br />
guarantee that provides shoppers a 10 percent discount on<br />
comparable items if they find a lower price elsewhere. Easy is<br />
among the leading retail brands owned by Cencosud, Chile’s<br />
largest retail conglomerate.<br />
72 73
CHILE<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
MAKING<br />
PROGRESS ON A<br />
SLOWER ROAD<br />
MAURICIO MARTÍNEZ VÁZQUEZ<br />
Managing Director<br />
Millward Brown, Chile<br />
Mauricio.Martinez@millwardbrown.com<br />
The economic slowdown experienced<br />
by Chile from mid-2014 has resulted<br />
in more cautious consumers. In an<br />
environment full of turbulence and<br />
mistrust, they are more concerned than<br />
ever about making the best decisions.<br />
The question that arises is: What do<br />
the most valuable brands in Chile do to<br />
ride out this atmosphere of distrust and<br />
extreme caution and thus remain leaders<br />
in the market where they compete?<br />
The information we collect from BrandZ<br />
provides interesting answers as to the<br />
elements these brands share and what<br />
they represent to consumers, allowing us to<br />
see their implications for the participating<br />
businesses.<br />
STAYING IN VIEW<br />
First, it is clear that their marketing teams<br />
focus on achieving excellent visibility for<br />
brands and a high level of engagement with<br />
consumers, which enable them to stand<br />
out. This is especially important because,<br />
in times of slowdown and mistrust, people<br />
search for safe options, and these highly<br />
popular and salient brands represent their<br />
best purchase choice.<br />
But that is not all. The most valuable brands<br />
in Chile show a clear balance between<br />
benefits and price. They are brands willing<br />
to keep refining those benefits – usually,<br />
key qualities consumers want to receive –<br />
so they do not need to reduce prices, for<br />
they are perceived as brands whose value is<br />
justified.<br />
Although the most valuable brands have<br />
a long-lasting history in the market, they<br />
also manage to remain relevant because<br />
they understand consumers’ dynamics<br />
and expectations. Thus, they dare to take<br />
new paths, keeping Chileans attentive and<br />
enthusiastic about the road taken.<br />
Consumers’ expressed wish to visit, hire<br />
or purchase a product or service is often<br />
diminished in times of economic difficulties.<br />
However, the most valuable brands take the<br />
opportunity to display a more accessible<br />
face to these consumers, in terms of their<br />
portfolio management, the development<br />
of new formats, new sales channels and<br />
service centers, or new sizes or varieties.<br />
Consequently, most of these brands protect<br />
their volume significantly by preserving their<br />
margins. This perspective is contrary to the<br />
one adopted by brands that choose to work<br />
almost exclusively with the price variable, by<br />
either discounts or promotions. In addition<br />
to sacrificing their margin, they will find it<br />
harder to justify any future increase.<br />
Great brands face the challenge of<br />
transcending and consolidating themselves<br />
in new markets, replicating their meaning<br />
but also presenting themselves as different<br />
and avant-garde. With the path to success<br />
in Chile having become slippery and even<br />
dangerous, moving ahead quickly requires<br />
new scenarios if brands are to utilize their<br />
full power.<br />
74 75
CHILE<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THREE NEW<br />
INFLUENCES ON<br />
CHILEAN CONSUMERS<br />
MARCELA PÉREZ DE ARCE<br />
Client Service Director<br />
Millward Brown, Chile<br />
Marcela.PerezdeArce@millwardbrown.com<br />
MAURICIO YURASZECK<br />
Client Service Director<br />
Firefly Millward Brown<br />
Mauricia.Yuraszeck@fireflymb.com<br />
It is not news that consumers have undergone profound<br />
changes in recent years. Specifically in Chile, these changes<br />
have deepened noticeably in the past two years and are marked<br />
by three essential phenomena: digitalization, both in terms of<br />
social participation and consumption, consumers’ growing lack<br />
of confidence in the economy and institutions, and consumption<br />
premiumization, from coffee and yogurt to jewelry. In the context<br />
of an economic slowdown, the landscape looks extremely<br />
challenging: Consumers want it all, together and conveniently...<br />
How are brands responding to this changing environment?<br />
IN CHILE,<br />
EXPERIENCE RULES<br />
Today in Chile, it is experience that<br />
rules. In terms of either services or<br />
mass consumption products and<br />
retail, consumers prefer those things<br />
that make a mark on their purchase<br />
experience, their consumption, or even<br />
their recall of advertising.<br />
While in some countries salience –<br />
meaning the establishment of a quick<br />
bond with the specific consumption<br />
need – works better, in Chile many<br />
brands have discovered that today’s<br />
consumers demand a more enduring<br />
bond.<br />
It is important to remember that<br />
the three brand strategies (salience,<br />
meaningfulness, and differentiation)<br />
are complementary, and that the<br />
preeminence of one over the other<br />
two is closely linked to the particular<br />
category a brand belongs to. For<br />
example, when it comes to cars, brands<br />
in that category will usually tend to<br />
highlight the driving experience or the<br />
aspiration of being seen driving a certain<br />
car model. But when it comes to soft<br />
drinks, in most countries brands will<br />
tend to automatically relate to thirst<br />
and the need for easy enjoyment.<br />
Meanwhile, luxury brands will look for<br />
differentiation wherever they are.<br />
BRANDS' STRATEGIES<br />
So... what have brands done in Chile? A<br />
growing trend is the emergence of the<br />
“Chilean Premium”. These are initiatives<br />
with a local touch, either Chilean or<br />
Andean, focused on the life in the<br />
neighborhood, trying to relive childhood<br />
memories, or restoring the value of<br />
native cultures, without forgetting<br />
about quality. In other words: mere<br />
experience.<br />
A clear example of success in this line<br />
is Emporio La Rosa: an ice-cream shop<br />
born in a traditional neighborhood in<br />
Santiago that has become a renowned<br />
coffee shop chain. The solidity of the<br />
brand and what it represents has<br />
allowed the presence of its coffee<br />
shops to reach even inside shopping<br />
malls without losing their neighborhood<br />
touch. Food brands such as Tika or<br />
Buka, decoration stores, coffee shops,<br />
beer brewers, and restaurants have<br />
delivered a design of a local quality<br />
experience that does not initially imply<br />
high prices but that can afford to set<br />
prices appropriate to their quality<br />
because they deliver not only a product,<br />
but also an experience connected<br />
with consumers. It seems this trend<br />
will prevail in the future not only<br />
because it has successfully shown its<br />
sustainability, but also because it has<br />
created consumption areas and types of<br />
consumers that previously seemed alien<br />
to those domains. This is a different<br />
commercial attempt, in dialogue with<br />
marketing strategies that are also<br />
different as well, consistently conceived<br />
for all its points of contact with these<br />
neo-consumers. It also relates to the<br />
back to basics concept, since it shows it<br />
can perfectly coexist with high quality<br />
products and services.<br />
Another trend, 100% oriented to<br />
experience is e-shopping, a sphere<br />
where the Dafiti brand has completely<br />
redefined the landscape of clothing<br />
shoppers in Chile. There is no doubt<br />
Dafiti’s consolidation results from a<br />
great shopping experience, accompanied<br />
by low prices, wide variety at a single<br />
site, an easy purchase method, delivery<br />
to any place consumers want, and the<br />
possibility of returning the product<br />
bought and receiving a complete refund.<br />
All of these make Dafiti an addictive<br />
experience. Online purchasing is not<br />
limited to this brand. There are a<br />
potent and growing percentage of retail<br />
sales – particularly large stores and<br />
supermarkets – being made through<br />
this platform. The important thing is<br />
that today digital display reflects a<br />
different purchase experience, one that<br />
meets certain needs and allows a kind of<br />
contact with the brand that exists only<br />
in that medium. The digital world has<br />
its own rules, follows its own patterns,<br />
and establishes specific relationship<br />
codes that also constitute purchase<br />
experiences, rather than canceling them.<br />
Both trends have emerged from<br />
successful strategies aimed at building<br />
meaningful brands for consumers. An<br />
essential part of this formula is the<br />
great experience, but both of them have<br />
also made efforts to fight consumers’<br />
growing mistrust, in a context where<br />
value must be continuously justified.<br />
76 77
CHILE<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CHILE AMIDST THE<br />
PERFECT STORM<br />
In terms of Chile’s sporting performance, 2015 has been the<br />
opposite of 2014. In 2015, the America Football Cup took<br />
place in our country and Chile was the star – unlike the 2014<br />
World Cup in which we were knocked out by Brazil.<br />
The country’s economic situation however looks worse than<br />
before. Consumers’ and entrepreneurs’ expectations are<br />
pessimistic, and there is an additional element: a massive<br />
unveiling of cases of corruption, something new in Chile.<br />
This has destroyed people’s trust in politics, precisely at a<br />
time of structural reforms that require a high degree of trust<br />
in institutions so that these processes can be legitimized.<br />
The picture could not be more different:<br />
we were proud and happy about our<br />
sporting victory, but once the event was<br />
over our feelings were quite the opposite.<br />
1Economic predictions announced a<br />
low growth rate – 3.0% in August,<br />
2014 – but in fact this growth<br />
is even lower than expected:<br />
2.4% in the first quarter of 2015,<br />
according to Banco Central de Chile. The<br />
future does not look any better: current<br />
expectations anticipate a 2.2% growth.<br />
All of this is taking place in the context<br />
of a significant decrease – 25% according<br />
to COCHILCO – in the price of copper,<br />
our main export. Due to the slowdown of<br />
China’s economy, this price is expected<br />
to continue decreasing. There is one<br />
more element: private investment has<br />
already gone into the red.<br />
2<br />
This situation has had an impact<br />
on consumers: sales growth<br />
is about 1%, due exclusively to<br />
clothing and shoes, but sales<br />
of durable goods and even food<br />
have decreased (source: Chile’s National<br />
Chamber of Commerce). Households<br />
have restricted consumption although<br />
their income has not been reduced, and<br />
expectations for them are as low as those<br />
prevailing during the sub-prime crisis.<br />
3Concerning institutions, just<br />
as Chile has been undergoing<br />
the most important process<br />
of structural transformations<br />
in the past 50 years, a political<br />
scandal has emerged as a result of cases<br />
of illegal funding of political campaigns<br />
by companies. For the first time in Chile’s<br />
history, there are serving legislators,<br />
mayors, members of Congress, heads of<br />
political parties, officials and businessmen<br />
facing judicial proceedings, making us<br />
Chileans question our reputation as a<br />
country without major corruption.<br />
What have brands done in this scenario?<br />
Many of them have substantially<br />
reduced their marketing budgets, merely<br />
communicating promotions and low<br />
prices. But there are also brands that<br />
have somehow taken charge of the<br />
situation, for instance communicating<br />
values of transparency and reliability.<br />
Here is a seeming contradiction: a<br />
number of sources present a sustained<br />
premiumisation of consumption.<br />
However, amidst this ‘perfect storm’,<br />
this is not actually a new phenomenon.<br />
Other critical periods have shown that in<br />
times like these, consumers tend to take<br />
refuge in the most solid brands. In this<br />
case, consumers seem to prefer safe<br />
investments, choosing therefore higher<br />
quality products.<br />
In this context of disappointment,<br />
mistrust, and pessimism, those brands<br />
that adapt by making something<br />
different – different even to the<br />
strategies employed during the subprime<br />
crisis – will be the ones riding out<br />
the bad weather.<br />
CLAUDIO APABLAZA<br />
Business Development Director<br />
Millward Brown, Chile<br />
Claudio.Apablaza@millwardbrown.com<br />
78 79
CHILE<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
"NEW MEDIA,<br />
OLD FASHIONED<br />
VALUES"<br />
ANNETTA CEMBRANO PERASSO<br />
CEO<br />
MEC, Chile<br />
Annetta.Cembrano@mecgobal.com<br />
In the last decade, digital media has seen<br />
strong growth: multiple platforms such<br />
as e-readers, tablets and smartphones<br />
present many channels for a continuing<br />
flow of messages, content and images.<br />
In this context, do we still consider TV<br />
the main media for brands to connect to<br />
people´s homes and hearts?<br />
MEC is committed to growth. Growth for our people, our clients and our industry. MEC<br />
pushes the boundaries of what’s possible in order to thrive in Digital / Mobile / Search<br />
/ Social / Performance Marketing / Data / Analytics / Insight / Sponsorship / Branded<br />
Entertainment / Multi-cultural / Content / Retail and Integrated Planning. Our 5,000<br />
highly talented and motivated people work with category-leading advertisers in 93<br />
countries and we are a founding partner of GroupM. #dontjustlivethrive.<br />
www.mecglobal.com<br />
In fact, what we see today is that<br />
instead of being undermined by<br />
digital media, TV has retained its place<br />
as the core brand advertising medium in<br />
all market territories, and promises to<br />
remain so for the foreseeable future.<br />
Although TV has kept its relevance, there<br />
is a transformation happening in the media<br />
environment surrounding it. We see a media<br />
ecosystem characterized by multi-screening and<br />
people accessing their favorite stories through<br />
multiple channels. They are watching open and<br />
cable TV, recording programs or listening to their<br />
favorite music via YouTube; reading newspapers<br />
and watching their preferred content (movie, series<br />
or shows) on their computer; but also in the palm<br />
of their hands – on their cell phones – they are<br />
watching, streaming or downloading video. Social<br />
media travels mouth to mouth in a multi-scale<br />
buzz of instant wonder, novelty and harsh criticism.<br />
Tomorrow’s newspaper or magazine will comment<br />
on the already “old” content, and the circuit of<br />
content-exhibition-conversation will start again.<br />
In this scenario, we believe the way for a brand to<br />
get attention lies in its story and in its capability to<br />
deliver messages that identify with the audience<br />
because they are true and authentic, in harmony<br />
with the brand, and with people’s lives.<br />
A TEST OF CHARACTER<br />
We had an interesting challenge this year as the<br />
media agency of ABASTIBLE, a gas distribution<br />
client. The challenge was intensified because<br />
the rival company is very popular due to a longstanding<br />
advertising campaign featuring a funny<br />
dog that represents Chilean character traits in a<br />
very witty way.<br />
In the course of the year, a major TV national<br />
network broadcast the Master Chef talent show,<br />
looking for the best chef. One of the finalists was<br />
a lady in her eighties, who was immediately liked<br />
by all audiences across age and social brackets<br />
because she – and her excellent cooking –<br />
represented precisely the permanent values and<br />
warmth of a traditional household.<br />
Taking into consideration her charisma and<br />
personal characteristics we chose her as the<br />
main character for our client´s ad campaign. This<br />
campaign features Juanito, the company man,<br />
who delivers the gas bottles to the home of the<br />
lady chef, where humorous and idiosyncratic<br />
situations then take place. TV was selected as the<br />
core medium to broadcast the spots. In addition,<br />
the campaign included social media, internet, radio<br />
and outdoor. Popular newspapers interviewed<br />
Sra. Eliana (Naná), our lady chef, broadening the<br />
impact of the campaign by creating conversations<br />
about her and how the brand continues to<br />
supports her talents. In addition to TV the<br />
campaign used digital and traditional media. The<br />
conversation was held across social media with<br />
radio and newspapers capturing that coverage too.<br />
Emotional engagement through identification with<br />
a main relevant character was the key factor.<br />
The result of this campaign was the recognition<br />
of our client´s brand by the public, diminishing<br />
the previously existing brand gap with its main<br />
competitor.<br />
We believe that as long as great brands discover<br />
simple, identifiable, and relevant core values that<br />
can remain untouched, new and changing media<br />
will always add value to their growth.<br />
80 81
COLOMBIA
COLOMBIA<br />
KEY FACTS AND TOP 20 MOST VALUABLE COLOMBIAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 20 MOST<br />
VALUABLE COLOMBIAN BRANDS 2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
#<br />
Brand<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1<br />
3,672 3,565 5 3%<br />
Beer<br />
11<br />
884 988 3 -10%<br />
Banks<br />
2<br />
3,476 3,006 5 16%<br />
Banks<br />
12<br />
714 794 4 -10%<br />
Retail<br />
3<br />
2,436 2,365 4 3%<br />
Beer<br />
13<br />
695 675 4 3%<br />
Beer<br />
4<br />
2,198 2,457 4 -11%<br />
Banks<br />
14<br />
688 640 3 7%<br />
Airlines<br />
5<br />
6<br />
2,017 3,446 1 -41%<br />
Oil & Gas<br />
1,867 2,084 3 -10%<br />
Banks<br />
15<br />
16<br />
644 620 5 4%<br />
Food & Dairy<br />
402 387 5 4%<br />
Food & Dairy<br />
KEY FACTS<br />
7<br />
8<br />
9<br />
10<br />
1,636 1,379 4 19%<br />
Banks<br />
1,039 931 3 12%<br />
Communication Providers<br />
997 824 2 21%<br />
Banks<br />
905 811 3 12%<br />
Communication Providers<br />
17<br />
18<br />
19<br />
20<br />
377 362 5 4%<br />
Food & Dairy<br />
351 400 1 -12%<br />
343 330 5 4%<br />
318 - 3<br />
Cement<br />
Food & Dairy<br />
NEW<br />
ENTRY<br />
Banks<br />
Capital City<br />
Currency<br />
Bogotá Distrito Federal<br />
COLOMBIAN PESO<br />
Area 1.14 million km 2<br />
Population (THOUSAND) 48,930 (2014)<br />
Population growth rate (ANNUAL) 1.3% (2010-2015)<br />
Life expectancy 74 years (2013)<br />
Literacy rate of 15-24 year olds 98.2% (2012)<br />
Unemployment rate 10.6% (2013)<br />
10.1% (2014)<br />
ANNUAL GDP AT CURRENT PRICES<br />
Total at current prices: US$ 377 billion (2014)<br />
GDP per capita (annual dollars): US$ 7,720 (2014)<br />
Growth rate: 4.6% (2014)<br />
Country’s share in regional GDP: 7.9% (2014)<br />
Net foreign direct investment: US$ 9.1 billion (2014)<br />
US$ 12.1 billion (2014)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
Source: Millward Brown and BrandZ<br />
84 85
COLOMBIA<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1<br />
3<br />
4<br />
BRAND VALUE<br />
Total Value of Colombian Brands<br />
US$ 25.6 BILLION<br />
Brand Value Change 2014-2015<br />
+10%<br />
Source: Millward Brown Vermeer<br />
PARENT COMPANY Grupo Bavaria (SABMiller)<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1913<br />
WEBSITE www.cervezaaguila.com<br />
BRAND VALUE US $3,672 million<br />
One of Colombia’s best-known products, Águila has<br />
over one hundred years of heritage and is a cultural icon.<br />
Águila stems from the city of Barranquilla in 1913 and its<br />
origins can be traced to eternal rivalry between the cities<br />
of Cartagena and Barranquilla. Initially Águila was brewed<br />
by Bavaria S.A., a Colombian company acquired in 2005<br />
by SABMiller. The brand has sponsored the Colombia<br />
national soccer team in every category for over 17 years.<br />
Recently the brand’s alcohol-free version has also gained<br />
traction in the market.<br />
PARENT COMPANY Grupo Bavaria (SABMiller)<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1929<br />
WEBSITE www.cervezapoker.com<br />
BRAND VALUE US $2,436 million<br />
Póker is the largest selling beer brand in Colombia.<br />
It was first brewed in Manizales in 1929 and soon spread to<br />
the Coffee Zone and the Valle del Cauca, becoming the lead<br />
brand in western Colombia. In 2004, Póker began a program<br />
of national expansion, entering Bogotá and the center of the<br />
country and achieving rapid growth. A line extension in 2011<br />
saw the launch of Póker Ligera, a beer with less alcohol, aimed<br />
at expanding consumption occasions.<br />
In recent years, Póker has been known for its messages<br />
of confidence and positive attitude towards friends, even<br />
creating the ‘Póker friend’s day’, a special day each year to<br />
share with friends and celebrate with a good beer. The brand<br />
is currently working on boosting consumption on other days<br />
with a consumer advertising campaign running on Thursdays.<br />
PARENT COMPANY Banco de Bogotá<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1870<br />
WEBSITE www.bancodebogota.com<br />
BRAND VALUE US $2,198 million<br />
Banco de Bogotá is the oldest bank in Colombia, its history<br />
dates back to 1870 when it opened its doors with COP<br />
$500,000.<br />
Since then, the bank has seen steady growth through mergers<br />
and acquisitions. In 2013, the bank expanded its operations<br />
abroad by acquiring Grupo Financiero Reformador from<br />
Guatemala, through its subsidiary Credomatic International<br />
Corporation, as well as BBVA Panamá through its subsidiary<br />
Leasing Bogotá S.A. Panamá . The bank’s international<br />
operations are run by its own subsidiaries and agencies in<br />
Panama, the Bahamas, Miami and New York. In Colombia<br />
it has around 263 branches. The brand has recently been<br />
investing in enhancing its virtual channels and modernizing its<br />
communications with clients and stakeholders.<br />
2<br />
5<br />
6<br />
PARENT COMPANY Bancolombia SA<br />
HEADQUARTERS Medellín<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1945<br />
WEBSITE www.grupobancocolombia.com<br />
BRAND VALUE US $3,476 million<br />
PARENT COMPANY Ecopetrol SA<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Oil & Gas<br />
YEAR OF FOUNDATION 1951<br />
WEBSITE www.ecopetrol.com.co<br />
BRAND VALUE US $2,017 million<br />
PARENT COMPANY Banco Popular SA<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1950<br />
WEBSITE www.bancopopular.com.co<br />
BRAND VALUE US $1,867 million<br />
Bancolombia is the largest commercial bank in Colombia and<br />
one of the largest in Latin America.<br />
The bank was founded in 1945 and is headquartered in<br />
Medellín. It belongs to the group SURA and is part of Grupo<br />
Empresarial Antioqueño. The bank has more than 8.1 million<br />
customers and a branch network of 779 Bancolombia branded<br />
locations and 2,876 ATMs. The bank employs around 27,000<br />
people.<br />
Shares of Bancolombia have traded on the New York Stock<br />
Exchange since 1995 when Bancolombia became the first<br />
Colombian company to enter the US market. The bank is<br />
a Multilatam company with presence in El Salvador, Peru,<br />
Puerto Rico, Panama and the Cayman Islands.<br />
Formerly known as Empresa Colombiana de Petróleos S.A.,<br />
Ecopetrol is Colombia´s largest petroleum company; it is<br />
ranked 39 worldwide and in the top four in Latin America.<br />
It is a vertically integrated oil company with presence in<br />
Colombia, Peru, Brazil and the US Gulf Coast. The company´s<br />
operations include exploration, production, transport,<br />
supply and marketing of its own oil surplus and by-products.<br />
Ecopetrol is a mixed economy company that operates under<br />
the laws of Colombia and is directed and administered by the<br />
Shareholders’ General Assembly, the Board of Directors and<br />
the company´s President, the company´s stocks are traded at<br />
the BVC (Bolsa de Valores de Colombia), the New York Stock<br />
Exchange, and the Toronto Stock Exchange. In the last year, it<br />
has lost much of its value due to falling oil prices.<br />
Banco Popular is a market leader in consumer loans.<br />
The bank was established in 1950 as a government owned<br />
institution and began the process of privatization in 1996<br />
when entities controlled by Colombian finance magnate Luis<br />
Carlos Sarmiento Angulo acquired the bank.<br />
Today, the bank is the seventh largest in Colombia with a<br />
network of 184 branches and 925 ATM’s.<br />
86 87
COLOMBIA<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
7<br />
8<br />
11<br />
12<br />
PARENT COMPANY Banco Davivienda SA<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1972<br />
WEBSITE www.davivienda.com<br />
BRAND VALUE US $1,636 million<br />
PARENT COMPANY UNE Telecomunicaciones<br />
HEADQUARTERS Medellín<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 2006<br />
WEBSITE www.une.com.co<br />
BRAND VALUE US $1,039 million<br />
PARENT COMPANY Banco de Occidente SA<br />
HEADQUARTERS Santiago de Cali<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1965<br />
WEBSITE www.bancodeoccidente.com.co<br />
BRAND VALUE US $884 million<br />
PARENT COMPANY Almacenes Éxito SA<br />
HEADQUARTERS Envigado<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1949<br />
WEBSITE www.exito.com<br />
BRAND VALUE US $714 million<br />
An iconic logo makes Davivienda one of Colombia’s most<br />
recognizable brands.<br />
The Davivienda brand’s presence in the market consists of<br />
a network of 743 bank branch locations in 176 cities, 2,000<br />
ATMs and nearly 15,000 employees serving 6.6 million<br />
customers. The brand was founded in 1972 as the Corporación<br />
Colombiana de Ahorro y Vivienda and initially operated as a<br />
savings and loan provider under the brand name Coldeahorro.<br />
The brand identity changed to Davivienda in 1973 when it<br />
adopted a distinctive logo known as La Casita Roja (little red<br />
house). It’s among the most identifiable corporate logos in<br />
Colombia. In 1997, the Corporación Colombiana de Ahorro y<br />
Vivienda became a commercial bank and changed its name to<br />
Banco Davivienda SA. Davivienda has operations in Panamá,<br />
Costa Rica, Honduras, El Salvador and Miami and is part of the<br />
Sociedades Bolívar holding company.<br />
UNE provides telecommunication services including fixed,<br />
local and long distance calls, wireless and digital television<br />
services.<br />
Founded in 2006, UNE is a Colombian public company<br />
headquartered in Medellín. Control of the company lies with<br />
EPM (Unidad de Negocios Estrategicos) with a 51% holding; the<br />
other 49% is held by Swedish company Millicom International<br />
Cellular. UNE strives to get to know its customers in detail,<br />
identifying their consumption practices and then designing<br />
products and services accordingly.<br />
Banco de Occidente focuses on businesses and affluent<br />
individuals.<br />
Founded in 1965 in Cali, Banco de Occidente was acquired by<br />
one of Colombia’s wealthiest individuals and major bankers,<br />
Luis Carlos Sarmiento Angulo, in 1971. The fifth largest bank<br />
in Colombia, it offers comprehensive banking services with a<br />
special focus on serving large and medium sized businesses<br />
along with medium and high income clients. Today, Grupo Aval<br />
and other entities controlled by Sarmiento Angulo own 85.5%<br />
of Banco de Occidente.<br />
Founded in 1949 by Mr. Gustavo Toro Quintero in Medellìn,<br />
Almacenes Exito S.A. is Colombia´s leading retail brand.<br />
The company operates 470 stores in Colombia and 54 in Uruguay,<br />
offering food and non-food products. Some of its stores include<br />
brand names like Surtimax, Home Mart, Disco, Devoto, and Geant.<br />
Besides its core products, the Éxito brand is leveraged across<br />
a portfolio of businesses that include consumer credit, travel<br />
agency, insurance, textile and food, e-commerce, gas stations,<br />
and shopping center development businesses. In 1998, Éxito<br />
began online sales. From 1999, France’s Groupe Casíno acquired<br />
an increasing stake in Éxito, gaining majority control in 2007.<br />
Éxito expanded internationally for the first time in 2011, when<br />
it acquired 52 Casino stores in Uruguay that were operating<br />
under the banners of Disco, Devoto and Géant. In 2013, the brand<br />
launched “Movil Éxito” offering mobile phone services including<br />
voice plans, SMS and data. In December 2014, the Éxito Group’s<br />
Colombia store portfolio reached the 100 mark.<br />
9<br />
10<br />
13<br />
14<br />
PARENT COMPANY Grupo Suramericana<br />
HEADQUARTERS Medellín<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1944<br />
WEBSITE www.gruposura.com<br />
BRAND VALUE US $997 million<br />
PARENT COMPANY Colombia Móvil SA ESP<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 2006<br />
WEBSITE www.tigo.com.co<br />
BRAND VALUE US $905 million<br />
PARENT COMPANY Grupo Bavaria (SABMiller)<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1904<br />
WEBSITE www.pilsen.com.co<br />
BRAND VALUE US $695 million<br />
PARENT COMPANY Avianca-TACA Group<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 2010<br />
WEBSITE www.avianca.com<br />
BRAND VALUE US $688 million<br />
SURA Business Group is listed on the Stock Exchange of<br />
Colombia (BVC) and is registered in the ADR program –<br />
Level I in the United States.<br />
It is also the only Latin American financial services<br />
organization to be included in the Dow Jones Sustainability<br />
Index. This index recognizes companies that support best<br />
practices in economic, environmental and social issues.<br />
SURA Business Group focuses on two types of investments:<br />
strategic (focused on financial services, insurance, pensions,<br />
savings and investment) and portfolio investments, mainly<br />
in the processed food, cement and energy sectors.<br />
The country’s third largest mobile brand, Tigo has nearly 4.9 mobile<br />
customers in Colombia, 80 percent of whom use prepaid service.<br />
The brand’s origins date back to 2004 when UNE<br />
Telecomunicaciones SA ESP and Empresa de Telecomunicaciones<br />
de Bogotá ETB SA ESP created Colombia Móvil to offer services<br />
under the Ola brand. The brand name changed from Ola to Tigo, a<br />
condensed version of the Spanish word contigo (with you), following<br />
acquisition of a majority position by Luxembourg-based Millicom<br />
International Cellular SA, in 2006. The company then merged with<br />
UNE EPM Telecomunicaciones S.A., Millicom Spain Cable S.L., EPM<br />
and Millicom to offer an integrated package including fixed and<br />
mobile communication, as well as pay TV and internet.<br />
In Colombia, Tigo were among the first mobile operators to offer prepaid<br />
cell phones and on demand access to the web<br />
Brewed since 1904, Pilsen is the leading brand in the<br />
Antioquia region.<br />
Pilsen is the official sponsor of the Festival of Flowers in<br />
Medellìn and aligned to the customs and traditions of the<br />
region. The brand is promoted as being ideal for sharing with<br />
friends after work.<br />
Avianca is a subsidiary of Synergy Group in Brazil and is the<br />
third largest flight company in South America, with more<br />
than a hundred destinations around America and Europe.<br />
Formerly known as AviancaTaca AirHoldings Inc., Avianca<br />
Holdings’ history started in 1910 under the name “Sociedad<br />
Colombo Alemana de Transporte Aéreo, SCADTA.” In 1940, the<br />
company was constituted after the integration of SCADTA and<br />
the Servicio Aéreo Colombiano – SACO. The first international<br />
flights covered routes to Quito, Lima, Panama, Miami, New<br />
York and Europe. In 2009 the company merged with Central<br />
American carrier TACA Airlines, and during 2010 it formalized<br />
a strategic union which includes Avianca, Tampa Cargo and<br />
AeroGal. The company trades at the New York Stock Exchange<br />
as ANH, and in the Colombian Stock Market as AVT_P.<br />
88 89
COLOMBIA<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
15<br />
16<br />
19<br />
PARENT COMPANY Nutresa Group<br />
HEADQUARTERS Medellín<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 2001<br />
WEBSITE www.pietran.com.co<br />
BRAND VALUE US $644 million<br />
PARENT COMPANY Nutresa Group<br />
HEADQUARTERS Medellín<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION around 1950<br />
WEBSITE www.industriadealimentoszenu.com.co<br />
BRAND VALUE US $402 million<br />
PARENT COMPANY Nutresa Group<br />
HEADQUARTERS Medellín<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1960<br />
WEBSITE www.chocolates.com.co<br />
BRAND VALUE US $343 million<br />
Pietrán was launched in 2001 and is owned by Zenú.<br />
The company specializes in the premium segment of the<br />
category of lean meats and is a highly recognized brand in the<br />
sector. A key competitive differentiator is that its products<br />
contain 25% less sodium.<br />
Zenú is a well-known name in meat production and<br />
distribution.<br />
Zenú began in Medellìn in the 1950s, and today is recognized<br />
for its high technological standards, quality control, unique<br />
flavor, and for innovating several brands in canned meats,<br />
sausage products and frozen fast foods, among others. Today<br />
the company has more than 2,500 employees and continues<br />
to be one of the most reputable companies in the country.<br />
Chocolates Jet is a chocolate bar manufactured by The<br />
National Chocolates Company, part of Grupo Nutresa,<br />
headquartered in Medellìn.<br />
The company started operations in 1920 as the Red<br />
Cross Chocolate Company. The National Chocolates<br />
Company is known for being the first industrial<br />
producer of chocolate confectionery and for offering<br />
the chocolate drink that has been part of Colombian<br />
life since the 1960s. The company produces 27 brands<br />
across chocolate snack treats, hot beverages, milk<br />
modifiers, nuts, cereals and baked-goods. It was the first<br />
company to be certified as a Healthy Organization by the<br />
Colombian Heart Foundation. Recently it has been judged<br />
to be one of Colombia´s top three best companies to<br />
work for and number one to work for in the food sector.<br />
17<br />
18<br />
20<br />
PARENT COMPANY Nutresa Group<br />
HEADQUARTERS Medellín<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1952<br />
WEBSITE www.pastasdoria.com<br />
BRAND VALUE US $377 million<br />
PARENT COMPANY Argos Group<br />
HEADQUARTERS Medellín<br />
INDUSTRY Cement<br />
YEAR OF FOUNDATION 1934<br />
WEBSITE www.argos.com.co<br />
BRAND VALUE US $351 million<br />
PARENT COMPANY Grupo Aval Acciones Y Valores<br />
HEADQUARTERS Bogotá<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1972<br />
WEBSITE www.avvillas.com.co<br />
BRAND VALUE US $318 million<br />
Doria is the country’s largest pasta brand, with three<br />
product lines: Pasta Comarrico, Pastas Doria and Pasta<br />
Monticello.<br />
The original company was founded in 1952 and installed<br />
its pulp mill in the former headquarters of Sweets and<br />
Pastries Papagayo Company in Bogota. Pastas Doria has<br />
long been a well-known brand in Colombia, widely recognized<br />
for its mustache-wearing chef with a catchphrase of”Ciao<br />
bambino” – which has become the staple slogan of the brand.<br />
Cementos Argos is a major player in the Colombian cement<br />
industry.<br />
With 51 percent market share, Argos is the fourth largest cement<br />
producer in Latin America, the only white cement producer in<br />
Colombia and the second largest in the South-East of the United<br />
States. The company belongs to Argos Group, founded in Medellìn<br />
in 1934. The operation has 388 plants worldwide, with locations<br />
that include Panama, Haiti, Dominican Republic and Suriname.<br />
Recently the company entered the Dow Jones Sustainability<br />
Index, an indicator used to monitor the performance of leading<br />
companies in economic, social and environmental terms.<br />
Banco AV Villas began in 1972 as Savings and Housing<br />
Corporation Villas, an entity dedicated to financing for the<br />
construction sector.<br />
In 1998, the company joined Grupo Aval Acciones y<br />
Valores SA, making it part of one of the largest financial<br />
conglomerates in Colombia. As well as the AV Villas Bank<br />
the group includes Banco de Occidente, Banco de Bogotá,<br />
Pension Management Company, Porvenir and Banco Popular.<br />
In 2002, AV Villas officially became a commercial bank in<br />
order to provide a large portfolio of products and services.<br />
90<br />
91
COLOMBIA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
OPPORTUNITIES<br />
FOR PEACE<br />
Colombia is still one of the countries in Latin America with the<br />
quickest growing GDP — an average 4.5% per year in the last 3 years.<br />
In 2014, the Colombian economy enjoyed an overall healthy<br />
development. Aspects worth highlighting include high investment<br />
activity, a favorable macroeconomic environment, a more<br />
competitive exchange rate, a single-digit unemployment rate, and a<br />
controlled level of population in poverty.<br />
GABRIEL ENRIQUE CASTELLANOS<br />
Managing Director<br />
Millward Brown, Andean Region<br />
Gabriel.Castellanos@millwardbrown.com<br />
However, we should also point out<br />
that this has been a difficult year,<br />
especially because of the uncertainties<br />
of the regional and global context. The<br />
international price collapse of products<br />
such as oil — with Ecopetrol the most<br />
affected company — the slowdown of<br />
China’s economy, and the weak recovery<br />
of the United States and Europe, are<br />
all alarming factors. In addition, the<br />
economies of some other countries in<br />
the region, including Brazil, Venezuela<br />
and Argentina, faced a critical situation.<br />
GROWTH FOR SOME<br />
BUT NOT FOR ALL<br />
Although Colombia achieved a positive<br />
growth rate, not all sectors participated<br />
in that growth. For instance, industry is<br />
still lagging behind other activities and<br />
in comparison to the total GDP. In fact,<br />
in the last 3 years industry’s average<br />
growth has been almost 4 points below<br />
the total GDP growth. This healthy<br />
GDP makes many of our clients wonder<br />
why their businesses are not going<br />
that well when the country seems to<br />
be thriving. The answer is that, while<br />
there is more money circulating, it has<br />
been used for other purposes, such<br />
as paying off more credit and debts.<br />
Also sometimes — even if it means<br />
sacrificing products in the basic market<br />
basket — it’s being spent on luxury<br />
products, entertainment or clothing.<br />
Such goods are being purchased as<br />
a result of the occasion’s emotion<br />
rather than of the traditional rationale<br />
behind buying necessities like food and<br />
beverages, for example. Thus, household<br />
consumption, leveraged by the financial<br />
sector, is one of the pillars of Colombia’s<br />
economic growth. Therefore, it is<br />
extremely important to pay attention to<br />
possible signs of household expenditure<br />
restrictions and to the development<br />
of political events, such as the local<br />
elections taking place next October, and<br />
the evolution of the peace process.<br />
Taking all of this into consideration,<br />
Colombia’s growth for 2015 will<br />
probably be slightly above 3.6%. The<br />
current administration revised this<br />
goal around the end of this year’s first<br />
quarter on account of, among other<br />
things, the new circumstances resulting<br />
from the collapse of oil prices and<br />
the dollar’s rise —to almost $3,000<br />
pesos, the highest exchange rate in the<br />
country’s history.<br />
Colombia’s great challenges remain:<br />
to reduce poverty and inequality, to<br />
increase education opportunities and<br />
access to the local public health system,<br />
and to improve and enhance the<br />
country’s infrastructure so as to align<br />
with current productivity levels.<br />
A RISING DIGITAL TIDE<br />
Meanwhile, in 2014 the absolute growth<br />
of advertising investment in Colombia<br />
was about 8%. TV is still the medium<br />
with the largest investment, followed by<br />
radio and print materials. Even though<br />
investment in digital media represents<br />
less than 5% of the total advertising<br />
spending, in 2014 it grew over 18%<br />
against 2013. Furthermore, it keeps<br />
strengthening its position as the most<br />
important medium for some brands<br />
— including alcoholic beverages, in<br />
which it plays a more and more decisive<br />
role in media plans. It is also relevant<br />
to note that technology’s presence is<br />
spreading to everyday aspects such<br />
as transportation or basic household<br />
needs, and at all socioeconomic levels.<br />
SIGNS OF PEACE?<br />
With an estimated population of 48.2<br />
million people in 2015, Colombia is<br />
still looking forward to the definite<br />
signing of the peace accord. If it<br />
were to happen, there would be more<br />
development opportunities for the<br />
country, for its economy, and for all<br />
the brands in the Colombian market.<br />
It would constitute a major change<br />
after 60 unfortunate years of violence<br />
and doubtless encourage an economic<br />
takeoff within foreign investment,<br />
accelerated household consumption,<br />
and regional leadership. This is what we<br />
Colombians largely hope for in 2016.<br />
92 93
COLOMBIA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDS IN AN<br />
EVER-CHANGING<br />
ENVIRONMENT: TIME<br />
TO BE MEANINGFULLY<br />
DISTINCT!<br />
What is the secret of the most<br />
valuable brands in Colombia?<br />
During the past year, the most successful brands<br />
in the Colombian market contributed 25% to<br />
the GDP growth. They have shaped the local<br />
economy by offering products and services that<br />
take into account Colombians’ unique culture,<br />
traditions, and physical, social and economic<br />
aspects. In some cases, these brands have also<br />
paid attention to regional differences within the<br />
country, developing different purchase channels,<br />
customer service models and even products.<br />
OSCAR LADINO<br />
Group Account Director<br />
Millward Brown, Colombia<br />
Oscar.Ladino@millwardbrown.com<br />
BRIDGING THE<br />
GENERATION GAP<br />
Most of these brands have been present<br />
in the market for over 50 years, which<br />
forces them to face great challenges:<br />
They must respond distinctively to the<br />
needs of 3 different generations — our<br />
parents, us, and our children — so they<br />
are forced to innovate constantly without<br />
losing their history, values, or roots.<br />
Today, Colombian customers can access<br />
more information and are therefore<br />
more demanding: in a matter of minutes,<br />
they can compare prices, suppliers<br />
and sales online. Successful brands<br />
have concentrated on always meeting<br />
their purchasers’ needs, on performing<br />
properly, and also on creating closeness<br />
by triggering emotional responses in their<br />
potential consumers. Such is the case of<br />
brands as Águila Beer and Bancolombia,<br />
which in addition to meeting the basic<br />
needs of their categories, resort to<br />
emotional levers such as the Águila girls,<br />
the Colombian national football team,<br />
or campaigns like “Le estamos poniendo<br />
el alma” (“Our soul is in this”) so as to<br />
remind us that, besides being a delicious<br />
beer or a trustful bank, they exist in order<br />
to entertain us or help us progress in our<br />
daily lives.<br />
NEW BRANDS<br />
FROM ABROAD<br />
When considering that brands face an<br />
ever-changing environment, we can see<br />
the challenge for them is still greater. In<br />
the last few months, we have witnessed<br />
how foreign brands, including beer<br />
brewers and financial institutions, have<br />
entered the Colombian market — or<br />
have shown interest in doing so. In fact,<br />
our research in the local sphere has<br />
found that spontaneous brand recall<br />
is lower than three years ago, despite<br />
the fact that advertising investment<br />
has grown faster than inflation during<br />
the same period of time. This means<br />
that, today, there are more brands<br />
addressing consumers but fewer brands<br />
in consumers’ minds. Colombian<br />
consumers have tried more brands in<br />
the past 3 years than ever before and<br />
have been exposed to a larger number of<br />
purchase channels, both traditional and<br />
new, including direct credit, global-chain,<br />
and even digital formats.<br />
FROM RESEARCHING<br />
ONLINE, TO<br />
PURCHASING ONLINE<br />
Regarding the digital environment, it<br />
has become more and more common<br />
to see consumers finding all kinds of<br />
information in digital channels: they<br />
really get thorough knowledge online<br />
about what is it that brands offer. Little<br />
by little, the need and the opportunity to<br />
use these media as purchase channels<br />
are growing, even among categories we<br />
did not imagine could participate in the<br />
digital environment. They constitute<br />
safe channels that generate trust and<br />
will continue consolidating in the future.<br />
1.<br />
All of this has resulted in customers who<br />
are less loyal and more into the repertoire<br />
market, and they outnumber those<br />
simply searching on price.<br />
BRANDS MUST<br />
BE BOLDER<br />
Taking all of this into account, and in an<br />
effort to be “meaningful” to Colombian<br />
consumers, brands must seek innovation,<br />
generating trends within their categories<br />
and being bold. This has been the case<br />
with Águila Beer, which in the past<br />
months launched an alcohol-free beer:<br />
Águila Cero. This beer is targeted at the<br />
niche of non-alcohol consumers, creating<br />
more occasions for consumption,<br />
far from traditional ones, and even<br />
promoting drinking it at home. Initiatives<br />
like this one should not be provisional, but<br />
rather the result of brands’ permanent<br />
policies of investment in research and<br />
development, keeping always in mind the<br />
purpose of making consumers’ life easier,<br />
teaching them to use their products, and<br />
searching for new business opportunities.<br />
If companies want to continue being<br />
successful, they must validate their<br />
business basics, be willing to revise their<br />
price and packaging strategies, leverage<br />
what they have built, and be ready to<br />
help in the ever-changing economic<br />
environment all of us will be facing.<br />
94 95
COLOMBIA<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
PEOPLE HATE<br />
OUR JOB<br />
Today, people are so bored by what we do that they are willing to do<br />
anything they can not to receive our advertising messages. They<br />
even pay large sums of money to prevent it, as shown by companies<br />
offering ad-free contents, such as Spotify, Netflix and many others.<br />
I love how the great David Droga puts it, “People’s attention has to<br />
be earned. We can’t just assume that we can bombard them [with<br />
messages] into submission anymore, which is how it used to be.”<br />
ALVARO MELÉNDEZ ORTIZ<br />
Planning Director<br />
Ogilvy & Mather, Colombia<br />
Alvaro.Melendez@ogilvy.com<br />
Big companies – or big brands with large<br />
budgets – don’t run the show anymore.<br />
Now, each person has the power, from his<br />
or her house, on the bus or while standing<br />
in line, waiting to order a burger. Likes,<br />
retweets, shares and comments are<br />
the new trophies that the best brands<br />
are striving to collect. They want them<br />
because that’s the new way to show<br />
affection, give a reward, and ultimately,<br />
to be relevant.<br />
Being relevant must be a key goal of any<br />
brand. The art lies in how to achieve it.<br />
People like what they like and they always<br />
like something that provides some value.<br />
It can be a smile, a great experience or<br />
any help to raise their children.<br />
It is essential that the brand understands its goal<br />
and really strives to fulfill it. A long time ago, a<br />
conversation between an Amazon customer service<br />
representative and a Thor’s fan became viral all<br />
over the world. The representative introduced<br />
himself as Thor, and the customer asked if he could<br />
be Odin, during the conversation. The resulting<br />
role-play was a wonderful, fun-to-read chat full of<br />
commitment to provide a top quality service. I’m<br />
sure that this chat built a lot more brand value for<br />
Amazon than many of its traditional campaigns,<br />
for many reasons, but mainly because it is real,<br />
credible and special.<br />
SHOW, DON'T TELL<br />
Jeff Rosenblum produced the inspiring<br />
documentary “The Naked Brand.” In it, Alex<br />
Bogusky says “Being a great company is the new<br />
brand.” True. People believe in what they see and<br />
not in what advertising says. Modern brands<br />
must know that actions speak louder than words.<br />
Toms or Zappos are clear examples of that. Their<br />
business model claims to offer value to people,<br />
Toms donates a pair of shoes for every pair of<br />
shoes sold and Zappos has built its whole campaign<br />
around an unparalleled customer experience. Close<br />
to home, we can take a look at Andrés Carne de<br />
Res, an iconic Colombian brand that became big<br />
because of the experience it offers to customers,<br />
from its beautiful graphics to the presentation of<br />
each dish and the service provided by each of the<br />
serving staff.<br />
This is why our job as advertisers has become<br />
more exciting now than ever. Now we cannot limit<br />
ourselves to think in terms of the 30” story we<br />
will air. Now we have to have liquid ideas, as David<br />
Ogilvy said, “There is no need for advertisements<br />
to look like advertisements.” We need ideas that<br />
travel and transform in the hands of people who<br />
make them theirs.<br />
These ideas can be audiovisual, or a physical<br />
experience, a service or a product. The important<br />
thing is that they feed great brands, always giving a<br />
clear purpose and offering value to people.<br />
I am convinced that the new challenge of our<br />
profession as advertisers and marketers is to help,<br />
coming up with ideas, so that brands provide value<br />
to people’s lives. If we can do that, maybe we won’t<br />
save the world, but we will surely make it a better<br />
place, and that will make people love our job again<br />
as much as we do.<br />
Ogilvy & Mather is a leading<br />
communication network. The<br />
company comprises strong offerings<br />
in: advertising, social media, direct<br />
marketing, data analytics, retail<br />
marketing, rural marketing, activation,<br />
public relations and healthcare.<br />
www.ogilvy.com<br />
96 97
MEXICO
MEXICO<br />
KEY FACTS AND TOP 30 MOST VALUABLE MEXICAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 30 MOST VALUABLE<br />
MEXICAN BRANDS 2015<br />
#<br />
Brand<br />
1<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
8,476 8,025 5 6%<br />
Beer<br />
#<br />
Brand<br />
11<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1,940 1,759 2 10%<br />
Banks<br />
#<br />
Brand<br />
21<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
666 555 1 20%<br />
Industrial<br />
BRAND VALUE<br />
Total Value of Mexican Brands<br />
US$ 57.3 BILLION<br />
Brand Value Change 2014-2015<br />
+11%<br />
Source: Millward Brown Vermeer<br />
2<br />
3<br />
6,174 5,308 3 16%<br />
Communication Providers<br />
4,423 3,625 3 22%<br />
Communication Providers<br />
12<br />
13<br />
1,533 - 3<br />
NEW<br />
ENTRY<br />
1,411 891 2 58%<br />
Banks<br />
Retail<br />
22<br />
23<br />
639 612 2 4%<br />
Food & Dairy<br />
629 668 3 -6%<br />
Retail<br />
KEY FACTS<br />
Capital City<br />
Ciudad de Mexico<br />
4<br />
3,604 3,477 5 4%<br />
Beer<br />
14<br />
1,236 969 2 28%<br />
Banks<br />
24<br />
585 797 3 -27%<br />
Retail<br />
Currency<br />
MEXICAN PESO<br />
Area 1.96 million km 2<br />
5<br />
3,554 3,097 2 15%<br />
Communication Providers<br />
15<br />
1,197 819 4 46%<br />
Beer<br />
25<br />
555 549 5 1%<br />
Beer<br />
Population (THOUSAND) 123,800 (2014)<br />
Population growth rate (ANNUAL) 1.1% (2010-2015)<br />
Life expectancy 77 years (2013)<br />
6<br />
3,091 2,804 2 10%<br />
Retail<br />
16<br />
1,107 1,058 3 5%<br />
Retail<br />
26<br />
510 504 5 1%<br />
Beer<br />
Literacy rate of 15-24 year olds 98.9% (2012)<br />
Unemployment rate 5.7% (2013)<br />
6.1% (2014)<br />
7<br />
3,039 2,748 2 11%<br />
Cement<br />
17<br />
1,042 1,182 2 -12%<br />
Food & Dairy<br />
27<br />
507 501 4 1%<br />
Beer<br />
ANNUAL GDP AT CURRENT PRICES<br />
8<br />
9<br />
10<br />
2,795 2,608 4 7%<br />
Food & Dairy<br />
2,557 2,687 3 -5%<br />
2,207 2,494 3 -12%<br />
Retail<br />
Banks<br />
18<br />
19<br />
20<br />
958 1,109 3 -14%<br />
800 - 4<br />
710 - 4<br />
Retail<br />
NEW<br />
ENTRY<br />
Beer<br />
NEW<br />
ENTRY<br />
Food & Dairy<br />
28<br />
29<br />
30<br />
475 - 3<br />
NEW<br />
ENTRY<br />
Airlines<br />
469 485 2 -3%<br />
Food & Dairy<br />
462 637 3 -27%<br />
Retail<br />
*Modelo concentrates three brands: Modelo Light, Modelo Especial and Negra Modelo.<br />
Source: Millward Brown and BrandZ<br />
Total at current prices: US$ 1.2 trillion (2014)<br />
GDP per capita (annual dollars): US$ 10,361 (2014)<br />
Growth rate: 2.1% (2014)<br />
Country’s share in regional GDP: 26.9% (2014)<br />
Net foreign direct investment: US$ 25 billion (2014)<br />
US$ 17.6 billion (2014)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
100 101
MEXICO<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1 2 3 4 5 6<br />
PARENT COMPANY Grupo Modelo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1925<br />
WEBSITE www.corona.com<br />
BRAND VALUE US $8,476 million<br />
PARENT COMPANY América Móvil, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 1989<br />
WEBSITE www.telcel.com<br />
BRAND VALUE US $6,174 million<br />
PARENT COMPANY Grupo Televisa, SAB<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 1950<br />
WEBSITE www.televisa.com<br />
BRAND VALUE US $4,423 million<br />
PARENT COMPANY Grupo Modelo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1925<br />
WEBSITE www.gmodelo.com<br />
BRAND VALUE US $3,604 million<br />
PARENT COMPANY América Móvil, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Communication Providers<br />
YEAR OF FOUNDATION 1947<br />
WEBSITE www.telmex.com<br />
BRAND VALUE US $3,554 million<br />
PARENT COMPANY Wal-mart de México, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1958<br />
WEBSITE www.bodegaaurrera.com.mx<br />
BRAND VALUE US $3,091 million<br />
Corona’s strong Mexican heritage<br />
has allowed it to surpass geographic<br />
frontiers, and it is currently sold in over<br />
180 countries.<br />
Corona was first launched in 1925; that<br />
same year its parent company Grupo<br />
Modelo began operations. The brand<br />
has a rich history of innovation, having<br />
been able to unite itself to Mexican<br />
culture through simple, yet iconic<br />
communication efforts. It has created<br />
strong brand cues that relate it to<br />
relaxation, music. The group’s staple<br />
brand across the globe, it’s the bestselling<br />
Mexican beer in the world and the<br />
best-selling import beer in almost fifty of<br />
the markets in which it has presence.<br />
Telcel is the leader in mobile<br />
phone services in Mexico, with<br />
approximately 71.5 million users.<br />
Its market share is around 70% of<br />
mobiles nationwide. Even when<br />
transferring their old number became<br />
an option for users, Telcel was a net<br />
winner of clients, making it evident to<br />
some extent that people value its wide<br />
user network, and certainly reflecting<br />
the message of its slogan: “Telcel is<br />
the Network”. This makes it one of the<br />
most important brands for América<br />
Móvil, the leader in telecommunications<br />
in Latin America, owned by the<br />
business tycoon Carlos Slim Helú.<br />
Televisa is the largest communications<br />
company in the Spanish speaking world<br />
and one of the most important players<br />
in the entertainment business around<br />
the globe.<br />
Founded in 1930, Televisa operates<br />
four broadcasters in Mexico, produces,<br />
distributes and exports contents to the<br />
American market through Univision – the<br />
leading Spanish speaking media company<br />
in the US – and to more than 50<br />
countries through other media partners.<br />
Televisa also publishes and distributes<br />
magazines and films, and owns radio<br />
broadcasters around the country.<br />
Founded in 1925 under two brands,<br />
Especial and Negra, Modelo was<br />
subsequently relaunched as one of<br />
Grupo Modelo’s first beers.<br />
Modelo has focused on developing a<br />
strong portfolio that spans different<br />
beer types and can catch consumers<br />
with premium offerings through strong<br />
positioning cues. In particular, the<br />
use of innovative and differentiated<br />
packaging and emotionally charged<br />
campaigns that convey the premium<br />
quality and uniqueness of the products<br />
they promote.<br />
Telmex is the leader in landline phone<br />
services, providing services nationwide.<br />
Telmex is owned by ‘Teléfonos de<br />
México’, a company created in 1947,<br />
nationalized in 1972 and re-privatized in<br />
1990. At that point, over 32 billion pesos<br />
were invested to set up a wide fiber optic<br />
network, connecting people nationwide<br />
and to 39 other countries through<br />
submarine cable. In 2010, América Móvil<br />
purchased 59.5% of Telmex shares.<br />
Bodega Aurrerá is a chain of<br />
supermarkets in Mexico, created for the<br />
lower-income sector of the population.<br />
Its offer includes low prices, embodied<br />
in its brand cue ‘Mamá Lucha’, a masked<br />
luchadora who fights high prices and is<br />
constantly ‘struggling’ to make it to the<br />
end of the month. Bodega Aurrerá is one<br />
of the fastest growing business units of<br />
Walmart de México, partly because of<br />
its ability to create more flexible store<br />
formats such as ‘Mi Bodega’ in small<br />
cities, and ‘Bodega Aurrerá Express,’.<br />
This latter format is an interesting<br />
price-convenience offer that brings high<br />
turnover lines to urban locations which<br />
competitors using bigger formats find<br />
more difficult to reach.<br />
102 103
MEXICO<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
7 8 9 10 11 12<br />
PARENT COMPANY Cemex, SAB de CV<br />
HEADQUARTERS Monterrey<br />
INDUSTRY Cement<br />
YEAR OF FOUNDATION 1906<br />
WEBSITE www.cemex.com<br />
BRAND VALUE US $3,039 million<br />
PARENT COMPANY Grupo Bimbo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1943<br />
WEBSITE www.grupobimbo.com<br />
BRAND VALUE US $2,795 million<br />
PARENT COMPANY El Puerto de Liverpool, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1847<br />
WEBSITE www.liverpool.com.mx<br />
BRAND VALUE US $2,557 million<br />
PARENT COMPANY Grupo Financiero Banorte,<br />
SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1947<br />
WEBSITE www.banorte.com<br />
BRAND VALUE US $2,207 million<br />
PARENT COMPANY Grupo Financiero Inbursa,<br />
SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1992<br />
WEBSITE www.inbursa.com<br />
BRAND VALUE US $1,940 million<br />
PARENT COMPANY Grupo Salinas SA de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 2002<br />
WEBSITE www.bancoazteca.com.mx<br />
BRAND VALUE US $1,533 million<br />
Cemex is a leader in the production<br />
and marketing of concrete, cement<br />
and other building materials.<br />
Cemex is a well known name not only in<br />
Mexico, where it has over 100 years of<br />
history, but also in the rest of the world.<br />
Cemex was a local brand that became<br />
global, and has been involved in projects<br />
around the world: tunnels in America,<br />
highways in Asia, social housing in<br />
South America. As a company, it is<br />
making efforts to become a more<br />
agile competitor capable of meeting<br />
the growing demand for housing and<br />
infrastructure all over the world during<br />
the next four decades.<br />
Bimbo is a brand of huge tradition<br />
and heritage with a presence in the<br />
Mexican market dating back to 1943.<br />
Bimbo’s bakery products are common<br />
features in the diet of many families in<br />
Mexico. The image of the Bimbo bear<br />
and the slogan ‘with love as always’<br />
are widely known by consumers, and<br />
their products reach almost every<br />
store in Mexico through an excellent<br />
distribution network. Bimbo also<br />
has a significant presence abroad as<br />
a result of the expansion of Grupo<br />
Bimbo and its portfolio of over 10,000<br />
products to 22 countries.<br />
Liverpool is a brand of department<br />
stores offering clothing and homewares.<br />
As a brand, its aim is to have people<br />
perceive it as a “part of their lives”. In<br />
order to get closer to consumers, it has<br />
expanded to cover a huge area of the<br />
Mexican territory, innovating with store<br />
formats that coexist with shopping<br />
centers and malls. This is because<br />
Liverpool not only operates its stores,<br />
but also controls their construction so<br />
that it can create appealing formats.<br />
Its income also comes from the lease of<br />
premises and financial leases from loans<br />
granted to consumers.<br />
Banorte is a brand that has become<br />
stronger in recent years, reflecting their<br />
slogan ‘The strong bank of Mexico’.<br />
Banorte is a part of Grupo Financiero<br />
Banorte, a Group that successfully<br />
completed mergers and acquisitions to<br />
become the third largest bank in the<br />
Mexican financial system based on the<br />
size of deposits and credits granted.<br />
But beyond such strategic movements,<br />
this bank (which started operations in<br />
1947 but was created in 1899 with the<br />
organization of ‘Banco Mercantil del<br />
Norte’), has received various accolades,<br />
among which the 2013 Best Commercial<br />
Bank awarded by World Finance and The<br />
Banker stands out.<br />
Banco Inbursa, previously known<br />
as Inversora Bursátil, was formally<br />
created in September 1992.<br />
This was as a result of the government<br />
authorizing the creation of new banks<br />
in order to promote competition in the<br />
financial sector. It is a company of Grupo<br />
Financiero Inbursa, which was created<br />
in 1985. Other subsidiaries of the Group<br />
include Seguros Inbursa, purchased in<br />
1984 when they were known as Seguros<br />
México. Services offered by the Group<br />
include: investment services, insurance,<br />
credit, transportation and pensions.<br />
Back in 2002, Banco Azteca was<br />
created to serve the needs of the lowincome<br />
segment.<br />
The bank began by issuing credit only<br />
and has diversified its products since.<br />
Today it is the bank that issues the<br />
highest volume of personal credit – in<br />
2014 it issued over 60% of the total<br />
volume in Mexico. The strength of<br />
Banco Azteca is based on almost 60<br />
years of credit experience at Grupo<br />
Elektra, its holding company that<br />
was founded in 1950. Banco Azteca<br />
currently operates through Grupo<br />
Salinas’ Stores: Elektra, Salinas & Rocha<br />
and Bodega de Remates which together<br />
account for more than 3,762 direct<br />
customer touchpoints. Recent efforts<br />
point towards targeting the middle<br />
class with very specific products, and<br />
a higher relevance of digital technology<br />
in its offer. This sets a challenge for a<br />
brand that is positioned as serving the<br />
low-income segment, but being a strong<br />
brand with customer service expertise<br />
provides a strong foundation.<br />
104 105
MEXICO<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
13 14 15 16 17 18<br />
PARENT COMPANY Fomento Económico<br />
Mexicano, SAB de CV<br />
HEADQUARTERS Monterrey<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1978<br />
WEBSITE www.oxxo.com<br />
BRAND VALUE US $1,411 million<br />
PARENT COMPANY Banco Nacional de México,<br />
SA de CV (subsidiary of Citigroup Inc.)<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1884<br />
WEBSITE www.banamex.com<br />
BRAND VALUE US $1,236 million<br />
PARENT COMPANY Cervecería Cuauhtémoc<br />
Moctezuma, SA de CV (subsidiary of Heinkenen<br />
International NV)<br />
HEADQUARTERS Monterrey<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1944<br />
WEBSITE www.tecate.com.mx<br />
BRAND VALUE US $1,197 million<br />
PARENT COMPANY Grupo Sanborns, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1903<br />
WEBSITE www.sanborns.com.mx<br />
BRAND VALUE US $1,107 million<br />
PARENT COMPANY Grupo Bimbo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1954<br />
WEBSITE www.marinela.com.mx<br />
BRAND VALUE US $1,042 million<br />
PARENT COMPANY Organización Soriana, SAB de CV<br />
HEADQUARTERS Monterrey<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1905<br />
WEBSITE www.soriana.com<br />
BRAND VALUE US $958 million<br />
Oxxo is currently the largest chain of<br />
stores in Latin America, over 12,850<br />
stores serving almost 9 million of<br />
buyers per day.<br />
Oxxo is owned by FEMSA, the<br />
largest Coca-Cola bottling company<br />
worldwide. It was founded in Monterrey<br />
in 1978 with the purpose of promoting<br />
the products manufactured by<br />
Cervecería Cuauhtémoc Moctezuma. In<br />
1994 it was consolidated as a separate<br />
unit independent of the beer company.<br />
In 2009, the brand was established in<br />
Colombia. Oxxo as a brand is focused<br />
on building the country’s convenience<br />
store par excellence: not only does<br />
it sell everyday products but has<br />
expanded its portfolio to services such<br />
as bus tickets and cellphones.<br />
Banamex is the Mexican bank of<br />
tradition but was also an early pioneer<br />
of online banking in Mexico.<br />
Created in 1884 when Banco Nacional<br />
Mexicano and Banco Mercantil Mexicano<br />
merged, it was the first bank to issue<br />
banknotes in Mexico. In 1926 it became<br />
a financing entity, and established the<br />
first branch of a Latin American bank<br />
in New York. In 1982 it was nationalized<br />
by presidential order, and remained in<br />
that situation for nine years. In 2002<br />
it became a subsidiary of Citigroup,<br />
and that same year the products and<br />
services of Citibank and Banca Confía<br />
were merged. In recent years it launched<br />
products that revolutionized the<br />
market, such as Superservicio Banamex,<br />
Tarjetahabiente Cumplido, Cuenta Básica<br />
Banamex and Mi Cuenta Banamex.<br />
Tecate was born in 1944 in the City of<br />
Tecate, in the Mexican state of Baja<br />
California.<br />
In 1954 Cervecería Cuauhtémoc<br />
Moctezuma, a subsidiary of FEMSA (the<br />
largest Coca-Cola bottling company<br />
worldwide) purchased it. The brand<br />
is characterized by innovation in its<br />
product presentation – it was the first<br />
company to use cans for packaging beer<br />
in Mexico. Its communication strategy is<br />
focused exclusively on male audiences,<br />
which completely differentiates it within<br />
the category. Its slogan “For you”, is well<br />
known. Tecate has focused its efforts<br />
on increasing its presence in sports,<br />
including big boxing events, and it is a<br />
sponsor for FC Barcelona.<br />
Sanborns has grown from a single<br />
pharmacy into a large department<br />
store chain.<br />
Sanborns is not only a restaurant and<br />
bar, but its selling space also includes<br />
a wide variety of departments such as<br />
jewelry, bakery, book store, electronics,<br />
and pharmacy, among others. Founded<br />
in 1903 as a small pharmacy, the<br />
format first expanded through adding<br />
a soda fountain in 1918. It opened its<br />
first branch (La Casa de los Azulejos –<br />
a building that even became a tourist<br />
attraction in Mexico City because<br />
of its architecture) in 1919. It was<br />
acquired in 1985 by Grupo Carso, and<br />
in 1999 Grupo Sanborns was created,<br />
connecting Saborns to brands such<br />
as Sears, iShop and Mix Up. In 2007<br />
the Group was removed from listings<br />
in the Mexican Stock Exchange, but<br />
joined again in February 2013.<br />
Marinela was created in 1954,<br />
initially as a bakery with the aim of<br />
incorporating pastries into the Mexican<br />
daily diet.<br />
With this mission in mind, ‘Gansito’<br />
was created as the first industrially<br />
manufactured pastry in Mexico.<br />
Gansito was so successful that when<br />
Bimbo purchased Marinela, the latter<br />
maintained an exclusive distribution<br />
means for its star product. But Gansito is<br />
far from being the only star in Marinela’s<br />
portfolio, it has many widely appealing<br />
options. In 1980 the brand expanded to<br />
the United States, and in 1992 entered<br />
the South American market.<br />
Soriana started in 1905 as a business<br />
that only sold fabric, until 1958 when<br />
it incorporated a self-service store.<br />
The brand continued to grow but only<br />
in the northern area of Mexico until the<br />
90s, when the decision was made to<br />
start operations in the central area of<br />
the country. By 2000 there were 100<br />
stores nationwide, and new formats<br />
were created for the brand during<br />
that decade: the City Club price club<br />
and Super City convenience stores. In<br />
2007, leasing rights were purchased<br />
from Gigante for over 200 stores. In<br />
early 2015, they agreed to purchase<br />
160 stores from competitor Comercial<br />
Mexicana. Soriana currently has over<br />
670 stores countrywide.<br />
106 107
MEXICO<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
19 20 21 22 23 24<br />
PARENT COMPANY Cervecería Cuauhtémoc<br />
Moctezuma, SA de CV<br />
HEADQUARTERS Monterrey<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1899<br />
WEBSITE www.sol.com.mx<br />
BRAND VALUE US $800 million<br />
PARENT COMPANY Gruma SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1949<br />
WEBSITE www.gruma.com<br />
BRAND VALUE US $710 million<br />
PARENT COMPANY Impulsora del Desarrollo y<br />
Empleo Industrial, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Industrial<br />
YEAR OF FOUNDATION 2005<br />
WEBSITE www.ideal.com.mx<br />
BRAND VALUE US $666 million<br />
PARENT COMPANY Grupo Lala, SAB de CV<br />
HEADQUARTERS Durango<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1949<br />
WEBSITE www.lala.com.mx<br />
BRAND VALUE US $639 million<br />
PARENT COMPANY Grupo Elektra, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1950<br />
WEBSITE www.grupoelektra.com.mx<br />
BRAND VALUE US $629 million<br />
PARENT COMPANY Grupo Palacio de Hierro,<br />
SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1891<br />
WEBSITE www.palaciodehierro.com.mx<br />
BRAND VALUE US $585 million<br />
“El Sol” was first launched in 1899 as<br />
a popular beer for the working class.<br />
In 1912 the brand was acquired by<br />
Cervecería Moctezuma and its name<br />
changed simply to Sol. In 1980 it began<br />
its successful internationalization in<br />
the United Kingdom, and continued its<br />
expansion to more than 50 countries<br />
in Latin America, Europe, Asia and<br />
the Middle East. Its brand portfolio<br />
comprises several sub-brands such as:<br />
Sol, Sol Cero (first beer to be declared<br />
as non-alcoholic in Mexico), Sol<br />
Clamato (beer with tomato juice) and<br />
Sol Limón (beer with lemon and salt).<br />
Sol’s marketing activities have focused<br />
on sponsoring Mexican soccer clubs<br />
since 1993, but recently it has also<br />
ventured into music festivals.<br />
Maseca is Mexico’s leading corn flour<br />
brand – the base ingredient for tortilla,<br />
one of the country’s food staples.<br />
The brand was launched following<br />
Gruma’s foundation of the first nixtamal<br />
flour facility in the world, in 1949.<br />
Beyond its home territory, Maseca is<br />
also an important player in European,<br />
African and Middle Eastern corn grits<br />
markets. The brand has been built upon<br />
superior quality and the omnipresence<br />
of the tortilla across the nation.<br />
IDEAL’s aim is to promote the creation<br />
and fast development of physical<br />
infrastructure and human capital in<br />
Latin America.<br />
IDEAL was established in 2005 when<br />
it was separated out from Grupo<br />
Financiero Inbursa. In that same year<br />
it was listed on the Mexican Stock<br />
Exchange. Its principal activities include<br />
the identification, assessment, financial<br />
structuring, implementation and<br />
operation of long-term infrastructure<br />
projects. To date, IDEAL has worked<br />
on development projects for highways,<br />
electricity generation, water treatment,<br />
and multimodal terminals.<br />
Grupo Lala is a company devoted to<br />
the production and marketing of milk<br />
and other dairy products.<br />
Born from a small group of milk<br />
producers, Grupo Lala now has 18<br />
plants nationwide and 165 distribution<br />
centers, delivering products to more<br />
than 500,000 points of sale. It also<br />
has production plants abroad, in<br />
Guatemala and the United States. The<br />
main focus of communication by the<br />
Group is on its huge portfolio of healthy<br />
products. Marketing propositions are<br />
built around taking care of those you<br />
love with slogans such as “It is so nice<br />
to watch them grow”. Grupo Lala joined<br />
the Mexican Stock Exchange in 2013.<br />
Elektra is a part of Grupo Elektra,<br />
founded in 1950 as a company<br />
devoted to the manufacture of radio<br />
transmitters.<br />
In 1957 it started operations as a<br />
marketing business, opening its first<br />
Elektra store. This remains one of the<br />
current business units in the group,<br />
together with its sister brand Salinas<br />
y Rocha. This brand has 990 stores in<br />
Mexico and 199 in Central and South<br />
America. Since Elektra targets low-tomiddle<br />
class segments in LatAm, each<br />
one of its 1,244 branches includes a<br />
Banco Azteca, aimed at offering their<br />
clients a financial institution that meets<br />
their specific needs. Elektra offers<br />
products such as electronics, white<br />
goods, domestic appliances, furniture,<br />
motorcycles, tires, mobile phones,<br />
computers, money wire transfers and<br />
extended guarantees. In late 2013, Grupo<br />
Elektra completed its latest purchase,<br />
Blockbuster de Mexico SA de CV, with<br />
Elektra becoming the affiliate in charge<br />
of handling all 293 Blockbuster stores.<br />
Palacio de Hierro has been in Mexico<br />
for 125 years and offers some of the<br />
world’s most valuable luxury brands,<br />
such as Louis Vuitton, Gucci and Prada.<br />
From its early days it has been known for<br />
its exclusive products, and is responsible<br />
for putting an end to the practice of<br />
bargaining which was common in the<br />
late nineteenth century in Mexico. In<br />
1995, Palacio de Hierro created its<br />
slogan “Soy Totalmente Palacio”; a<br />
phrase which has found a place in pop<br />
culture in the country. Describing itself<br />
as more than a department store, it<br />
considers itself a lifestyle trend-setter<br />
for a sophisticated audience. The brand<br />
also has a commercial, credit and real<br />
estate division, and a multi-channel<br />
approach to e-commerce.<br />
108 109
MEXICO<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
25 26 27 28 29 30<br />
PARENT COMPANY Grupo Modelo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1935<br />
WEBSITE www.gmodelo.com<br />
BRAND VALUE US $555 million<br />
PARENT COMPANY Grupo Modelo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1925<br />
WEBSITE www.gmodelo.com<br />
BRAND VALUE US $510 million<br />
PARENT COMPANY Grupo Modelo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1925<br />
WEBSITE www.gmodelo.com<br />
BRAND VALUE US $507 million<br />
PARENT COMPANY Grupo Aeroméxico, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Airlines<br />
YEAR OF FOUNDATION 1934<br />
WEBSITE www.aeromexico.com<br />
BRAND VALUE US $475 million<br />
PARENT COMPANY Grupo Bimbo, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Food & Dairy<br />
YEAR OF FOUNDATION 1971<br />
WEBSITE www.tiarosa.com.mx<br />
BRAND VALUE US $469 million<br />
PARENT COMPANY Wal-Mart de México, SAB de CV<br />
HEADQUARTERS Mexico City<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1960<br />
WEBSITE www.superama.com.mx<br />
BRAND VALUE US $462 million<br />
Victoria beer was first produced in<br />
1865 by Compañía Cervecera Toluca y<br />
México, which was purchased in 1935<br />
by Grupo Modelo.<br />
This Vienna-style beer is the longest<br />
standing in the portfolio of Grupo<br />
Modelo (over 150 years). Particularly<br />
popular in the regions of central and<br />
southern Mexico, it has also been<br />
successfully exported to the United<br />
States since 2010. Victoria has in<br />
recent years re-defined its target<br />
market; previously considered a beer<br />
for the lower-middle class, now its<br />
communication efforts are focused on<br />
young and middle-upper class adults.<br />
Another beer brand from Grupo<br />
Modelo, León positions itself as a<br />
young alternative to more ‘adult’ and<br />
established brands.<br />
Born in Yucatan, León has won<br />
important market share elsewhere in<br />
the country. It has been leveraging its<br />
positioning by associating itself with<br />
young and urban cultures, especially<br />
through music and music festivals. This<br />
is an important trend in the market<br />
that has pushed brands to participate<br />
in ever-more branded environments<br />
and experience-led marketing efforts.<br />
Produced since 1900 in Mazatlán,<br />
an important port on the Mexican<br />
northwestern coast, Pacifico is<br />
another brand from Grupo Modelo’s<br />
brand portfolio.<br />
Pacífico is particularly strong in the<br />
Mexican northern states where it has<br />
aimed at building a more friend-oriented<br />
and relaxed brand image through<br />
campaigns that focus heavily on its<br />
distinctive taste and its freshness.<br />
Originally a government owned<br />
company, Aeroméxico began<br />
operations in 1934. Today, it is the<br />
country’s leading airline.<br />
A founding partner of SkyTeam (a<br />
global airline alliance), Aeroméxico<br />
operates the largest network of routes<br />
in Mexico. It provides more than 616<br />
daily flights, flying to 44 domestic and<br />
35 international destinations from the<br />
country. The brand focuses primarily<br />
on the needs of business travelers<br />
by aiming at providing a high quality<br />
flying experience. Aeroméxico seeks to<br />
continue its leadership in the market<br />
through its strengths: an integral<br />
offering for business passengers, a<br />
vast flight connectivity, attractive<br />
strategic alliances and a young,<br />
flexible and modern fleet.<br />
Tía Rosa is one of the key brands of<br />
Grupo Bimbo and specializes in iconic<br />
sweet bread and products such as<br />
Tortillinas Tía Rosa.<br />
Founded in 1971, this brand has<br />
managed to generate relevance through<br />
a clear promise built around the taste of<br />
homemade products. Tía Rosa marked<br />
a milestone in Mexico’s food industry<br />
when in 1976 it installed the first<br />
wheat flour tortilla-making machine.<br />
The brand is known for reinterpreting<br />
recipes from the country’s rich baking<br />
tradition, such as Banderillas, Doraditas<br />
and Orejas, and giving them their own<br />
particular stamp. This, together with a<br />
strong distribution network, has made<br />
Tía Rosa one of the key players in the<br />
landscape of Mexican food.<br />
Superama is the premium store format<br />
of Wal-Mart de México, focused on<br />
offering quality, convenience and<br />
service to consumers.<br />
Superama takes advantage of the<br />
medium size of their premises to be<br />
located close to urban consumers,<br />
offering carefully selected products.<br />
Superama showed its innovative streak<br />
when it developed its phone app and<br />
internet sales in response to changing<br />
shopping trends.<br />
110 111
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
A KALEIDOSCOPE<br />
OF CHALLENGES<br />
AND OPPORTUNITIES<br />
In an environment of surprising significant growths and<br />
slowdowns, Mexico is one of the regional economies remaining<br />
somewhat constant. This is worth mentioning, since it has been<br />
achieved despite the fact that the Mexican economy has been<br />
shaken by oil production, oil prices, the United States growth, and<br />
the financial volatility of international markets. Although at first<br />
sight and from a macroeconomics perspective it might seem only<br />
weakly active, both Mexican society and government have been<br />
forced to make adjustments here and there so as to maintain the<br />
relative stability of LatAm’s second largest economy.<br />
RICARDO BARRUETA<br />
Managing Director<br />
Millward Brown, Mexico, Central America and the Caribbean<br />
Ricardo.Barrueta@millwardbrown.com<br />
A SLOWING ECONOMIC<br />
ENVIRONMENT<br />
The reality is clear: in the 2014-2015 period, Mexico has<br />
slowed down. On July 9th of the current year, the IMF<br />
reduced its estimated growth for Mexico from the already<br />
reduced 3% it had anticipated in April, to 2.4%. Among other<br />
things, this reduction was related to the weakness shown<br />
in the first months of 2015 by the economy of the United<br />
States, Mexico’s most important commercial partner.<br />
Although lower than expected, Mexico’s growth is headed<br />
up by manufacturing exports —largely the result of the<br />
two-digit increase, for the fifth consecutive year, in the<br />
automobile sector. However, local demand has not kept<br />
pace: private consumption is burdened by consumers’ low<br />
trust levels and scarce wage growth. Nonetheless, private<br />
investment has seemed to be more active in the past few<br />
months.<br />
Foreshadowing a longer-lasting drop in oil prices, the<br />
Mexican government announced a 2015 budget cut<br />
equivalent to 0.7% of the GDP and is planning an additional<br />
cut in public expenditure for 2016. The lower public<br />
expenditure will slow the pace of economic growth, despite<br />
the trust that disciplined tax practices will bring economic<br />
benefits.<br />
Growth has been lower than expected, and there has<br />
not been a strong connection between growth and the<br />
reduction of poverty. The latter might be the result of the<br />
circumstances prevailing in the labor market: in recent<br />
years, not enough employment opportunities have been<br />
created, nor have there been jobs paying adequate wages. In<br />
addition, the labor force has increased, due to demographic<br />
changes, balanced migration to the US, and more female<br />
participation in the workforce, all of which the Mexican<br />
economy has failed to absorb. There is a positive aspect,<br />
both government transfers, particularly in urban zones,<br />
and a lower dependency rate have contributed to the<br />
improvement of some poverty indexes in the country.<br />
REFORMS FOR GROWTH<br />
The Mexican government has made progress in its<br />
structural reforms agenda, specifically in the labor and<br />
education areas, competition laws, the financial sector,<br />
telecommunications and laws for the energy sector, all of<br />
which are aimed at increasing productivity, competitiveness<br />
and the potential growth of Mexico in the international<br />
arena. Today, the administration is devoted to the<br />
implementation of these reforms. Opening the energy sector<br />
to private investment is especially promising for promoting<br />
growth, for it is expected to lead to an increase in oil and<br />
gas production and to provide cheaper energy supplies to<br />
Mexican industry. Assessing the distributive impact of these<br />
reforms, the regulations associated with them, and their<br />
implementation will be important, but their nature endows<br />
them with strong potential to drive Mexico’s growth.<br />
Thus, an acceleration of economic activity is expected<br />
for 2017. On the one hand, it’s not anticipated that public<br />
expenditure will be reduced again; on the other, the gradual<br />
growth of US demand will support a continuous and strong<br />
performance of manufacturing exports. This is expected<br />
to result in a gradual recovery of private consumption and<br />
investment.<br />
ELECTIONS, CONSUMERS,<br />
AND BRANDS<br />
The first half of 2015 is a good example of the dynamism<br />
in the market during the period we’re evaluating. Midterm<br />
elections became the main character not only in the political,<br />
but also in the social scenario. The different political parties<br />
reflected — though by means of blaming one another,<br />
rather than presenting proposals — society’s concern about<br />
topics such as security, income, and corruption. Mexican<br />
consumers, who have an essentially short-term view,<br />
think in even more immediate terms thanks to the 24/7<br />
messaging they’re receiving about overly-simple solutions to<br />
complex social issues.<br />
The ever-changing environment leads Mexican consumers<br />
to appreciate particularly three basic features: convenience,<br />
accessibility, and playfulness. In the face of change, Mexican<br />
society prefers brands’ prioritizing “making life easier and<br />
more bearable” over other engagement messages. The<br />
brands with the most marked growth in the last year<br />
definitely prove this. The cases of Oxxo and Tecate, the two<br />
Top Risers of the portfolio, are worth highlighting.<br />
Oxxo is and has been the epitome of accessibility and<br />
convenience in Mexico. With over 12 thousand stores and<br />
an opening pace of a new branch every eight hours, the<br />
brand is emerging as the largest retail chain in this region.<br />
The geographical expansion of Oxxo and the variety of<br />
products it offers have made it a widely known brand,<br />
capable of generating a meaningful difference that has led to<br />
exponential growth not only in terms of sales floor but also<br />
in the minds of consumers.<br />
The Tecate brand has managed to base its growth on a<br />
communication so powerful that it has transcended to an<br />
iconic status in the minds of Mexican consumers. Through<br />
creative campaigns with messages for “the Mexican<br />
macho”, Tecate has become a real cultural happening: a<br />
playful escape that has led its most recent campaign,<br />
featuring Sylvester Stallone, to become part of Mexico’s<br />
pop culture. Tecate has created differentiation, salience,<br />
and meaningfulness by presenting itself as a friend to<br />
consumers, an ally in their best moments.<br />
The learnings brought about by Oxxo, Tecate, and some other<br />
Mexican ranking champions are crystal clear: in an everchanging<br />
environment, Mexican consumers prefer brands<br />
that help them keep pace, acting as important buffers against<br />
uncertainty, and making them forget their difficulties. The<br />
secret is to become a close ally who invites others to think<br />
about the good times to come.<br />
112 113
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
EVOLVING PARADIGMS<br />
IN AN UNPREDICTABLE<br />
MARKET<br />
Mexico is in a time of<br />
economic uncertainty.<br />
There is no open talk<br />
of economic recession<br />
but GDP shows little<br />
growth and the dollar<br />
reached a historical<br />
high against the<br />
Mexican peso, whilst<br />
trust in government<br />
is at an all-time low.<br />
JORGE ALAGÓN<br />
Chief Client Solutions Officer LATAM<br />
Millward Brown<br />
Jorge.Alagón@millwardbrown.com<br />
At times like these, marketers tend to<br />
shift their focus from long-term strategy<br />
to short-term sales. Many will choose to<br />
meet revenue targets by lowering prices<br />
to maximize short-term sales while<br />
cutting investment in long-term brandbuilding<br />
activities.<br />
However, lessons from recent recessions<br />
provide powerful arguments for<br />
maintaining a longer-term view, even in<br />
the face of pressure to cut advertising<br />
in favor of promotions. Marketers<br />
who resist this pressure and use their<br />
budgets effectively and creatively will<br />
find that their brands emerge from the<br />
tough times in good competitive shape.<br />
Players that go in the opposite direction<br />
and engage in price wars may seemingly<br />
solve the immediate challenges but<br />
are damaging the brands’ equity and,<br />
ultimately, their revenue and profit.<br />
THE POWER OF<br />
ASSOCIATION<br />
While economic conditions are<br />
continually changing, successful brands<br />
have learned that despite the particular<br />
challenges of any given moment, the<br />
need to keep building strong associations<br />
between a brand and the consumers<br />
is permanent. Furthermore, because<br />
the volume of communications that<br />
the market generates is low due to the<br />
crises, it is the perfect time to invest.<br />
This approach seems counterintuitive but<br />
has been proven across the most varied<br />
recession scenarios, benefitting those<br />
who have understood it.<br />
Our analysis (see chart below) shows<br />
that the strongest brands – those in<br />
the BrandZ Global Top 100 – have<br />
outperformed both the S&P 500 and the<br />
MSCI World Index since recovery began in<br />
mid-2009. Clearly, brand strength needs<br />
to be nurtured and maintained through<br />
good times and bad. Doing so, the brand’s<br />
equity becomes both a shield when the<br />
crises arrive, minimizing the negative<br />
effects of the environment, and a boost<br />
to the market share of the brands once<br />
the crises has passed. Once the dust<br />
settles and the economy recovers its<br />
pace, the efforts made in the middle of<br />
the turmoil pay off.<br />
To make things more complicated, the<br />
Mexican consumer has changed too and<br />
will continue to do so. Technology has<br />
transformed how we interact with one<br />
another and with brands, and of course,<br />
the way we buy.<br />
DIGITAL INFLUENCE<br />
The power of social media has been<br />
demonstrated in Mexico. With an<br />
estimated 50 million Facebook users<br />
(roughly 70% of internet users, 40% of<br />
population) and close to 10 million Twitter<br />
accounts, it is not surprising to see new<br />
independent digital media outlets with<br />
a reach to rival traditional mass-media.<br />
Think of werevertumorro with 15 million<br />
Facebook followers, 10.3 million YouTube<br />
subscribers and 6.6 million Twitter<br />
followers; or El Pulso de la República<br />
with 1.2 million YouTube subscribers. The<br />
influential power of Aristegui Noticias<br />
(5.2 million followers in Facebook, 4.6<br />
million in Twitter) created an outcry<br />
over president Enrique Peña Nieto’s $7<br />
mansion, the “White House scandal”.<br />
These factors both influence and help to<br />
explain the all-time low approval score for<br />
the President´s performance, at 2.8 out of<br />
10 (Survey conducted by Millward Brown<br />
through Google Consumer Surveys).<br />
Brands would do well to read the<br />
politicians’ current situation; people, either<br />
in their roles as citizens or consumers,<br />
now have a voice that is immediately<br />
heard. Traditionally, brands and politicians<br />
lived in a one-way communication cycle.<br />
Now, through social media, the everyman<br />
has the power to give instant feedback,<br />
which opens up new possibilities and<br />
brings new responsibilities for everyone.<br />
MOVING WITH THE<br />
MARKET<br />
Brand owners can no longer expect people<br />
to adapt to their business practices;<br />
marketers need to adapt to people’s new<br />
behavior and expectations, and even<br />
collaborate with their consumers or risk<br />
being swamped by new entrants and<br />
innovative business models.<br />
Consider Uber and how it has disrupted<br />
the transport industry in Mexico City.<br />
Uber is one of those rare businesses<br />
that truly think outside the box. They<br />
constantly surprise users and prospects<br />
alike with creative value propositions.<br />
For example, in response to taxi drivers’<br />
demonstration against Uber, they gave<br />
two free rides up to $150 Mexican pesos<br />
(around USD$10).<br />
While Uber certainly sacrificed immediate<br />
profit with this initiative, through it they<br />
built strong associations with the brand,<br />
and even better, their app downloads<br />
soared, opening the door for a massive<br />
number of potential users. The whole<br />
event serves as a great example of both<br />
building long term equity for the brand,<br />
even at the cost of sacrificing short term<br />
sales, and of the creative use of social<br />
media, being available where it is most<br />
relevant for their target market. Uber<br />
doesn´t advertise in traditional media,<br />
but the free ride campaign resonated<br />
strongly without any media investment.<br />
The brand followed up this momentum<br />
with UberPet, UberCulinary and a joint<br />
promotion with Häagen-Dazs that<br />
surprised and delighted users, continuing<br />
to strengthen its equity.<br />
AMAZON FLOWS<br />
INTO MEXICO<br />
Surprisingly, only 20% of 51.2 million<br />
internet users make online purchases.<br />
This seems a huge opportunity for<br />
Strong brands generate superior shareholder returns<br />
BrandZ Strong Brands Portfolio vs. S&P 500 vs. MSCI World Index.<br />
April 2006 - April 2015<br />
100%<br />
0%<br />
-60%<br />
BrandZ Strong Brands Portfolio<br />
S&P 500<br />
MSCI World Index<br />
Source: Millward Brown and BrandZ<br />
102.6%<br />
63%<br />
30.3%<br />
Amazon, which has just landed in Mexico<br />
in a formal way. It already enjoys a strong<br />
positioning and has a significant base of<br />
clients that mainly use the US store. It will<br />
challenge mainstream retail businesses<br />
to fully embrace e-commerce as a vital<br />
strategy for growth, with excellent<br />
consumer experience and logistics. It<br />
will also nudge every business to deliver<br />
products faster, at lower prices, with<br />
one-to-one marketing and a user-friendly<br />
platform.<br />
We will see a shift from rigid structures of<br />
a product distributed in one channel by one<br />
company to an on-demand model where<br />
the consumer is in command, where the<br />
business no longer solely benefits itself but<br />
also benefits the consumer, evolving the<br />
relationship between brand and consumer<br />
from a merely transactional one to a<br />
partnership. The brand no longer wants just<br />
your money but genuinely wants to make<br />
your life easier. In this landscape, clever<br />
brands will no longer be company-centric,<br />
but client-centric, refocusing their essential<br />
views and acting accordingly. They will no<br />
longer limit themselves to sell features/<br />
benefits but instead stand for something<br />
deeper that reflects the values of their<br />
consumers.<br />
So, what should brands<br />
in Mexico do in uncertain<br />
times like these?<br />
• Think and act long-term,<br />
maintaining marketing investment<br />
to outperform competitors.<br />
• Explore alternative channels<br />
of communication and of<br />
distribution, being mindful that<br />
they transmit both ways. Don’t<br />
ignore the feedback.<br />
• Be truthful to your brand’s<br />
purpose and improve people’s life<br />
through your product or service.<br />
114 115
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONSTANCY<br />
AMIDST CHAOS<br />
Once, in some book by a classic author, I read<br />
that in Greek mythology the word chaos did<br />
not refer to “disorder”, but to a “different<br />
kind of order”. Now that I’m looking for<br />
that concept in texts by Ovid and Hesiod,<br />
I wonder if my memory is true or rather<br />
something I invented about my college<br />
days. In any case, I think the idea is worth<br />
mentioning in current times, when we live<br />
surrounded by headlines that keep reminding<br />
us change is all around us at a regional level,<br />
but also day after day in our country.<br />
FERNANDO ALVAREZ KURI<br />
Vice President<br />
Millward Brown Vermeer, Mexico<br />
Fernando.Alvarez@millwardbrown.com<br />
CONTRASTS: A WAY<br />
OF LIFE IN MEXICO<br />
I remember a foreign friend of mine, who<br />
has been living here for years, defined<br />
Mexico as ‘the country of eternal crisis’.<br />
I think this term accurately describes<br />
the constant change we experience as<br />
a society. This is not only reflected in<br />
our fluctuating economy: commercial<br />
opening policies and media development<br />
display before us a whole new array of<br />
brand options, of experiences and needs<br />
we now consider ours. Mexico’s opening<br />
up, which started in the late 80s — a<br />
process that positioned the country in<br />
second place in terms of commercial<br />
opening, preceded only by Chile — created,<br />
probably unintentionally, consumers who<br />
are more and more sophisticated, who<br />
search for experiences they know are<br />
ordinary in the First World and which they<br />
expected to arrive here, but did not. Thus,<br />
Mexicans became consumers avid for new<br />
experiences, for new brands that let them<br />
dream about an alternate reality where<br />
they can foresee a better future.<br />
Mexicans are people of contrasts, and<br />
we must remember the country itself is<br />
that way: urban and rural, modern and<br />
traditional, a country with high poverty<br />
levels but with the world’s richest man.<br />
Mexicans might seek modernity, but<br />
they will never relinquish the sense of<br />
security that tradition offers them.<br />
We are consumers who follow habits,<br />
finding a kind of comfort — extremely<br />
appealing — in the options we are<br />
already familiar with.<br />
IN PURSUIT OF<br />
MODERNITY AND<br />
TRADITION<br />
In this context, it is no surprise that<br />
the most valuable categories in our<br />
country are the same year after year:<br />
retail, beers, and telecommunications.<br />
Together, the 18 brands within these<br />
three categories represent over 70%<br />
of the country’s Top 30 value. Retail<br />
and beers are examples of brands that<br />
have long been part of Mexican life<br />
— they have the earliest foundation<br />
average among the categories<br />
listed in the ranking: 1927 and 1925,<br />
respectively, against the median<br />
foundation of the portfolio, which is<br />
1945. Telecommunications is not that<br />
new, either: its foundation dates back<br />
to around the 1950s. Although these<br />
categories and the brands within them<br />
have “a history”, most of them are not<br />
considered old brands by consumers,<br />
since in Mexico they are the categories<br />
that change the most.<br />
Mexico’s telecommunications sector<br />
is witnessing the entry of new<br />
competitors as a result of last year’s<br />
reform. Brands entering the market,<br />
such as Izzi — an element in Televisa’s<br />
strategy to steal share from Mexico’s<br />
historic telecommunications giant,<br />
Telmex, — are trying to simplify the<br />
category’s value proposals, offering a<br />
fresh perspective against the virtual<br />
monopoly of its main competitor. The<br />
presence of new options has posed an<br />
important threat to the new leader,<br />
which has responded by adopting the<br />
same distinctive element that Izzi<br />
used in its attempt to dethrone the<br />
king: service prices, whilst also taking<br />
advantage of the long-lasting tradition<br />
in consumers’ minds.<br />
ENTER THE GIANTS<br />
In the case of beers, the past few years<br />
have been decisive. The acquisition<br />
of the two large Mexican brewers by<br />
Heineken International and Anheuser-<br />
Busch InBev marked a “before and<br />
after” in the category. Large brands<br />
with sophisticated practices suddenly<br />
faced an environment of increasing<br />
competitiveness as the introduction of<br />
new brands — iconic in the rest of the<br />
world — became a reality they were<br />
forced to confront.<br />
The entry of these two giant players<br />
intensified the competitive scenario and<br />
led local large brands to seek closeness<br />
with users so as to gain relevance. From<br />
Corona and its massive investment in<br />
media during the FIFA World Cup 2014<br />
— being official sponsor of this global<br />
event for the first time — to Tecate,<br />
which has chosen to try to become a<br />
masculinity and pop culture maestro.<br />
It’s done this through campaigns like<br />
the one with the already famous phrase<br />
“te hace falta ver más box” (“You need<br />
to watch more boxing”). In short, beer<br />
brands have sought to create solid<br />
positionings that bring them closer to<br />
their consumers’ daily lives.<br />
As for retail commerce, 2015 was<br />
a year of reorganization. The sale<br />
of large formats and foodservice<br />
of Comercial Mexicana —the third<br />
largest supermarket chain in the<br />
country — stands out. Soriana, the<br />
second largest chain, surpassed<br />
only by Walmart Mexico and Central<br />
America, has strengthened its<br />
presence by the purchase of large<br />
areas (a total of 160 stores). Grupo<br />
Gigante acquired Comercial Mexicana’s<br />
foodservice business, which included<br />
2 brands: California and The Beer<br />
Factory. In this way, Grupo Gigante<br />
has also strengthened its portfolio,<br />
which includes the management in<br />
this country of brands as important<br />
as Petco and Panda Express. This<br />
rearrangement of Comercial Mexicana’s<br />
assets will result in an enormous change<br />
in the retail sector in Mexico, since<br />
it means not only a transformation<br />
in terms of sales floor, but also the<br />
disappearance of key promotions that<br />
marked consumption trends in the<br />
country, such as Julio Regalado: a 35<br />
year-long discount campaign that set a<br />
parameter for all competitors.<br />
There is no doubt that Mexico is not the<br />
same country as it was 50 years ago.<br />
Furthermore, it is not the same country<br />
as in the early years of the past decade.<br />
Today, Mexicans live in an environment<br />
quite different from the so-called<br />
‘Mexican miracle’, a period in the late<br />
20th century when commercial opening<br />
and neo-liberal policies claimed, through<br />
official statements, the country’s<br />
triumphal entry to the ‘First World’.<br />
Global financial crisis and public policies<br />
to tackle competitiveness issues, and<br />
delayed structural reforms – that are<br />
only recently starting to take shape in<br />
the Mexican market – became burdens<br />
that undermined Mexican ideals in favor<br />
of ‘the path to the glories of the First<br />
World’. Brands and consumers grew up<br />
in this environment: one where small<br />
adjustments were —and are— made<br />
here and there in pursuit of a better<br />
future. Consumers expect brands to be<br />
allies capable of fulfilling their promises:<br />
we are a society looking for new<br />
traditions that bring the certainty of a<br />
better lived life.<br />
116 117
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
HOW TO GROW<br />
GREAT BRANDS IN<br />
A FAST CHANGING<br />
SCENARIO<br />
PEDRO EGEA<br />
President & CEO<br />
Grey, Mexico<br />
Pedro.Egea@grey.com<br />
“The world’s changing”: This is one of the<br />
most frequently heard statements in the<br />
sphere of communication and, whether<br />
we like it or not, it is true. How can brands<br />
adapt to these changes? How can a<br />
successful business stay on track? Or, how<br />
can certain directions be reoriented in such<br />
shifting times? I think the answer lies in<br />
understanding consumers, since they are<br />
modifying their habits, interests, and the<br />
aspects that drive their purchase decisions.<br />
Today, consumers are far more<br />
complex: a decade ago they referred<br />
to a couple of sources to make a<br />
decision, now they look for at least 12<br />
of them. In this social, economic, and<br />
cultural context, brands are forced to<br />
offer extra value to their products for<br />
a simple reason: new consumers now<br />
have tools to make comparisons with a<br />
single click.<br />
There are two other aspects to<br />
bear in mind: First, expectations of<br />
products are higher, buying decisions<br />
are determined by needs but also by<br />
the experiences generated by certain<br />
products. Second, we live in a society<br />
with new structures that have created<br />
another audience (the social media<br />
savvy), an audience we must analyze<br />
so as to articulate the appropriate<br />
messages for it.<br />
Thus, the most important thing in a<br />
world of technology trends and complex<br />
consumers is to be close to them, to<br />
their behavior, preferences, and habits.<br />
This requires strategies focused on the<br />
elements influencing the purchasing<br />
path of shoppers, meaning, those who<br />
make the final decision at point of sale,<br />
either physical or digital. Today there<br />
should be no difference between these<br />
shoppers, but the industry is reluctant<br />
to accept its own natural progress. .<br />
LEVERAGING<br />
THE TRENDS<br />
Some of the marketing trends<br />
contributing to the evolution of brands<br />
are based on: Shopper Marketing,<br />
Brand Entertainment, Storytelling,<br />
Crowd Sourcing, and Contextual<br />
Marketing. However, all of these<br />
strategies will be of no use if we fail to<br />
connect with audiences and to provide<br />
messages that are relevant to them.<br />
And what about E-Commerce? The<br />
challenge companies are currently<br />
facing is to captivate a larger number<br />
of internet users. This channel<br />
constitutes a real opportunity, since<br />
today only 6% of internet users in<br />
Mexico buy or acquire products or<br />
services through it.<br />
Today, we must think of acquisition<br />
processes in a more cohesive<br />
way. Retailers are adapting to<br />
consumers’ evolution, so we must<br />
devise strategies that follow in their<br />
footsteps, that is, we must rely on<br />
a strategic partner who identifies<br />
multichannel users’ trends, who<br />
understands, attracts and retains<br />
customers. Then we must diagnose<br />
the areas of opportunity in terms<br />
of communication so as to connect<br />
brands by means of relevant<br />
messages delivered through adequate<br />
channels. Once consumers have<br />
been guided to the point of sale, we<br />
must promote purchase decisions,<br />
customer service, and experience at<br />
POS. All of these will result in value<br />
offers and comprehensive experiences.<br />
These trends represent an<br />
opportunity to gain new audiences.<br />
Once again, the key is getting to<br />
know them so that we can enhance<br />
the opportunities brands have to<br />
communicate with them. But there<br />
is no secret recipe. Although certain<br />
diagnoses might be similar, not all<br />
remedies will work for all of them.<br />
To conclude, we must remember that<br />
marketing is addressed to audiences,<br />
so that all companies, regardless of<br />
their sector, must be attentive to who<br />
is it that they are talking to. This will<br />
help them be aware of their market,<br />
of its needs and how to meet them.<br />
People in charge of companies and<br />
advertisers must carry out thorough<br />
diagnoses so as to create Famously<br />
Effective messages – messages<br />
that people talk about and help the<br />
business move forward.<br />
Grey is one of the ten largest advertising<br />
agencies in the world, with offices in over<br />
83 countries. It has one overriding focus:<br />
to produce truly great creative work,<br />
to produce work that soars, makes us<br />
proud and fosters the brand relationship<br />
with consumers—work that helps our<br />
clients prosper. Grey Worldwide provides<br />
highly creative services including brand<br />
ideas and strategies, brand planning,<br />
creative development and production.<br />
Our agency is organized into four<br />
geographical units: North America;<br />
Europe, Middle East & Africa (EMEA),<br />
Asia-Pacific and Latin America..<br />
www.grey.com<br />
118 119
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
A STORY OF DAVID<br />
AND GOLIATH IN THE<br />
DIGITAL MEDIA ERA<br />
The changes that the communication industry has to face in Mexico<br />
today – including the telecommunications reforms, the analog<br />
turnoff, and the growth of content delivered through new platforms<br />
– remain the major topic of discussion.<br />
*Source: E-Marketer, July 2015<br />
LILIA BARROSO<br />
CEO<br />
GroupM, Mexico<br />
Lilia.Barroso@groupm.com<br />
Today, advertising in digital media<br />
continues to grow and gain relevance:<br />
in 2014, there was an 11 billion pesos<br />
investment in Mexico, according to IAB.<br />
Of special interest are the platforms<br />
with video, which in 2014 had an impact<br />
on 83% of internet users in Mexico, as<br />
well as the mobile platforms, which have<br />
a total of 83.1 million users, with almost<br />
half of them (38.5 million) owning a<br />
smartphone.*<br />
Is the story of David and Goliath<br />
repeating itself in the 21st century?<br />
What can brands expect from this<br />
battle and how to know which opponent<br />
to back?<br />
DAVID AND GOLIATH<br />
IN 2015<br />
The same characteristic that made<br />
traditional means of communication<br />
– our Goliath – strong and invincible is<br />
perhaps their greatest weakness today:<br />
organizational complexity and large<br />
infrastructure. These make it difficult<br />
for them to adopt new technologies or<br />
to understand and adapt to new media<br />
consumption habits.<br />
However, and positively for them, they<br />
still have their large-scale vision, the<br />
ability to connect with big audiences<br />
and to generate an immediate<br />
mass impact and, thanks to this,<br />
the likelihood of influencing current<br />
consumers.<br />
Meanwhile, digital media – our David –<br />
are naturally less complex organizations.<br />
They tend to operate as cells (business<br />
units) to achieve their objectives in<br />
the short term and wind up grouped<br />
as comprehensive communication<br />
offerings and platforms that provide<br />
solutions to consumers’ needs.<br />
Likewise, digital media have focused on<br />
perfecting their most powerful weapon:<br />
their ability to measure and quantify<br />
the results of their solutions. This allows<br />
them to understand the potential of<br />
the million niches existing today among<br />
consumers and to deliver relevant<br />
messages to each of them.<br />
However, data measurement and<br />
analysis has still a long way to go: the<br />
industry has much to do in terms of<br />
standardization and the use of reliable<br />
digital metrics that favor interaction<br />
and data crossing among different<br />
points of contact.<br />
THE STORY IS<br />
NOT OVER YET<br />
Although it seems that my analogy<br />
establishes who I think the winner will<br />
be, the truth is that there is a noticeable<br />
and natural wish on the part of the huge<br />
digital players to become preeminent<br />
and gain a larger part of advertising<br />
investment. On the other hand,<br />
traditional media make remarkable<br />
efforts to create new models, adopt<br />
new technologies, and get close to an<br />
audience that will soon become their<br />
potential consumers: youngsters.<br />
Thus, circumstances in our industry are<br />
constantly changing, the roles of David<br />
and Goliath are interchangeable, and<br />
therefore nothing is definite yet.<br />
SO... WHO'S THE<br />
WINNER OF THIS<br />
BATTLE?<br />
Doubtless, up to this point the ultimate<br />
winner of this battle are brands, which<br />
now have a wider variety of means to<br />
combine and consequently present<br />
their messages in a more efficient and<br />
customized way.<br />
Nevertheless, brands will only be able to<br />
make this victory theirs and capitalize<br />
upon it if they use a media mix that<br />
allows them to interact with consumers<br />
using the strengths of both David and<br />
Goliath.<br />
THE GIANT’S PERCEPTION:<br />
Because mass media consumption,<br />
especially television, is still preeminent<br />
in Mexico, all these means must<br />
be integrated into communication<br />
strategies working as important action<br />
triggers. Then, these actions can<br />
become more specific and focus on the<br />
different niches through supplementary<br />
means connected with media<br />
consumption habits.<br />
AIMING AT THE OBJECTIVE:<br />
More than ever before, the traces (data)<br />
left behind by consumers when going<br />
through media must be collected,<br />
measured and analyzed. This will<br />
provide the information needed to<br />
develop an assertive strategy, allowing<br />
brands to connect with consumers at<br />
the right moment and in the right way,<br />
so as to support the closing of the sale.<br />
MEDIA AGILITY:<br />
The growth of mobility and access to<br />
the internet in Mexico forces brands<br />
to accompany and interact with<br />
consumers in real time. Those already<br />
able to do this and take advantage of<br />
spontaneous events are the brands that<br />
are top of consumers’ mind.<br />
RESILIENT CONTENT:<br />
Besides being relevant, from the very<br />
moment of its conception, brands’<br />
marketing and messaging content must<br />
be able to blend with each medium’s<br />
distinctive features so as to connect<br />
naturally with consumers and thus<br />
enhance the chance for those messages<br />
to be heard.<br />
Finally, I think all of these<br />
characteristics constitute the<br />
advantage that, as a group of media<br />
agencies, we should offer brands:<br />
• Deliver acute and objective knowledge<br />
of consumers – supported by<br />
qualitative and quantitative data,<br />
derived from the use of technology<br />
and our proprietary metrics and realtime<br />
analysis tools.<br />
• Put into use our large-scale<br />
implementation and negotiation<br />
abilities so as to execute multiplatform<br />
strategies suitable to each<br />
brand’s needs and audiences.<br />
• Collaborate with each of our clients<br />
in order to develop – from strategy<br />
to implementation – innovative and<br />
relevant content for their consumers<br />
and thus build, together.<br />
GroupM is the leading global media investment management operation serving as<br />
the parent company to WPP media agencies including Mindshare, MEC, MediaCom,<br />
and Maxus, each global operations in their own right with leading market positions.<br />
GroupM’s primary purpose is to maximize performance of WPP’s media agencies<br />
by operating as leader and collaborator in trading, content creation, sports, digital,<br />
finance, proprietary tool development and other business-critical capabilities.<br />
GroupM’s focus is to deliver unrivaled marketplace advantage to its clients,<br />
stakeholders and people.<br />
www.groupm.com<br />
120 121
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THE ROLE OF<br />
PR IN BUILDING<br />
STRONG BRANDS<br />
“Communicating Character”<br />
DANIEL KARAM<br />
President & Managing Director<br />
H+K Strategies, Mexico<br />
Daniel.Karam@hkstrategies.com<br />
In a world where more information than ever<br />
is available to consumers who use it to guide<br />
their purchasing decisions, it has never been<br />
harder for brands to gain – and hold – the<br />
trust of the public.<br />
When the public evaluates a company<br />
it does so through three main criteria:<br />
brand (what it says about itself),<br />
reputation (what others say about it)<br />
and behavior (how it acts). The lack<br />
of any of these forces will make it<br />
harder for the company to enjoy a solid<br />
reputation and long-term financial<br />
health.<br />
These factors cannot be managed<br />
independently and its intersection is<br />
what we call “Character.”<br />
Character drives perception, sales<br />
and loyalty; character inspires people.<br />
Building character means telling<br />
real stories that make an emotional<br />
connection with the public. If brands<br />
fail to make that connection they will<br />
lose its attention and trust.<br />
HOW DO WE DO THIS?<br />
Here “content” is king. Brands used<br />
to push messages. Now they must<br />
communicate character. A great brand<br />
is a human story and stories are what<br />
“communicating character” is all about.<br />
In this new age of transparency,<br />
consumers are hearing about brands’<br />
reputations and learning through the<br />
experiences of their peers, rather<br />
than crafted brand messages through<br />
advertising. This shows not just a<br />
growth in interconnectedness, but also<br />
a decline in trust in paid media.<br />
It’s necessary to engage the public<br />
in a broader story about a brand’s<br />
character, sharing its specific<br />
commitments for responsible behavior<br />
and engaging in an honest dialogue<br />
with consumers, who believe that<br />
brands with strong character are<br />
trustworthy and care about their<br />
products and their customers.<br />
NOW IT'S PERSONAL<br />
They’re looking for the equivalent of<br />
a personal connection. They want<br />
brands to transparently communicate<br />
their efforts to be responsible. And<br />
as character is what defines a brand,<br />
those who communicate it in a<br />
consistent and authentic way cannot<br />
only prevent crisis, but will create<br />
stronger connections with the public<br />
that will ultimately improve their image<br />
and financial value.<br />
According to the findings of<br />
a survey conducted by H+K<br />
Strategies, examining the impact of<br />
communicating character on public<br />
opinion, nine out of ten people believe<br />
that companies need to do more<br />
to bring their behaviors in better<br />
alignment with their publicly stated<br />
values. Beyond that, nearly half of<br />
them think that companies’ behaviors<br />
are out of alignment with the values<br />
they publicly promote.<br />
We must bear in mind that these<br />
authentic stories will compete with all<br />
the other information consumed by<br />
the public. The brand’s character must<br />
therefore reach people through all the<br />
available media platforms such as<br />
mobile devices, laptops and traditional<br />
media channels.<br />
In summary, leading companies need to<br />
carefully manage brand, reputation and<br />
behavior in order to understand that<br />
any disharmony in these elements can<br />
severely damage public perceptions of<br />
their character. And beyond this, we<br />
strongly believe that communicating<br />
character is an important part of<br />
playing offense in today’s business<br />
environment, and a way to stand out<br />
from competitors.<br />
Hill+Knowlton Strategies is a leading<br />
global strategic communications<br />
consultancy, providing services to local<br />
and multinational clients worldwide. The<br />
firm is globally headquartered in New<br />
York City, with 88 offices in 49 countries<br />
- including 13 offices in the US. Led by<br />
Global Chairman and CEO Jack Martin,<br />
Hill+Knowlton Strategies serves as a<br />
trusted advisor to clients, developing<br />
and executing communications<br />
campaigns and business strategies to<br />
manage the impact of the public on an<br />
organization’s reputation, brand and<br />
bottom line.<br />
www.hkstrategies.com<br />
122 123
MEXICO<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CREATING GREAT<br />
BRANDS IN AN<br />
EXTREME MARKET<br />
Stating that in today’s<br />
competitive and ever changing<br />
market, companies must know<br />
how to be distinct is a no-brainer.<br />
It’s also obvious that, in order to<br />
achieve distinctiveness, a correct<br />
strategy and brand positioning<br />
are decisive. But sometimes, it is<br />
just not that simple.<br />
GABRIELA LIJO<br />
General Manager<br />
Lambie-Nairn, Mexico<br />
G.Lijo@lambie-nairn.com<br />
Today we are more informed, more connected, and busier<br />
than ever. Our society wants to do and have it all. We have<br />
abandoned the old habit of living moderately and adopted<br />
a life of extremes. We want to have lots of experiences and<br />
live more intensely, but at the same time we want to have<br />
the utmost happiness and peace. We want to be utterly<br />
successful but we also want to have a better quality of life.<br />
In this context, brands and branding will become even<br />
more important than they currently are, since they will be<br />
the ones guiding consumers through extreme situations:<br />
understanding them, making their lives easier, and helping<br />
them make better decisions. Brands are constantly<br />
present in a number of already traditional activities, such<br />
as smartphones, tablets, computers, television, and so on,<br />
but little by little new ones are being implemented so as to<br />
satisfy new senses like smelling, touching, or tasting, in order<br />
to boost a memorable experience.<br />
STRONG BRANDS<br />
CREATE STRONG BONDS<br />
Brands creating meaningful experiences will be the ones we<br />
pay attention to, for they will be capable of establishing close<br />
bonds with their consumers and thus continue being top<br />
of mind. Only strong brands are capable of creating these<br />
bonds: thinking otherwise is nonsense. Bearing this in mind,<br />
let us review the characteristics that all successful brands<br />
share, for those are the keys to creating the brands that will<br />
survive in this extreme market.<br />
First, we must take into account that, for any brand, a strong<br />
brand strategy is a necessity rather than a luxury. A recent<br />
study published by Lambie-Nairn together with Millward<br />
Brown and The Partners has shown that branding is more<br />
important than advertising as a brand value driver. Brands<br />
with a strong strategy focused on the brand and weak<br />
advertising had a 76% increase in value, while brands with<br />
weak branding and strong advertising had a value increase of<br />
only 27%. Take Apple, for example: it was #1 in the BrandZ<br />
2015 ranking, and it is globally recognized because of its<br />
unique brand proposition, its iconic identity, and a design that<br />
consumers love. Its value has increased 67% since 2014.<br />
A GREAT BRAND<br />
MUST KNOW ITSELF<br />
The brand must be directly related to the business strategy,<br />
aware of the company’s objectives and its market, so as to<br />
clearly understand what is it that it can or cannot achieve<br />
in order to be credible when reaching its target audience. A<br />
great brand must perfectly know its DNA, its brand code, and<br />
the characteristics that make it unique and distinct from all<br />
the other brands. When a brand is true to itself, it generates<br />
confidence in consumers and thus it is capable of influencing<br />
their behavior. This does not mean a brand cannot surprise<br />
us, nor does it imply that its communication should be boring,<br />
but that it must be clearly aware of how far it can go without<br />
losing its own identity. For instance, the Krispy Kreme brand<br />
surprised everybody with its acceptance of new technologies<br />
and the creation of an app called “Hot Light”, which lets<br />
followers know when and where fresh donuts are being sold.<br />
A GREAT BRAND MUST KNOW HOW<br />
TO INVENT AND REINVENT ITSELF<br />
As mentioned above, a brand can and should surprise<br />
us. To do so, it must be constantly evolving, it must be a<br />
living being going beyond the product or service offered,<br />
encouraging loyalty among consumers and turning them<br />
into brand spokespersons, into its fans. Who doesn’t have<br />
an acquaintance who, besides buying a car or a pair of shoes<br />
from a specific brand, insists on our buying the very same<br />
product? This is the way those brands become leaders within<br />
their categories, to set trends that their competitors will have<br />
to follow. Nike is a perfect example of a leading brand that has<br />
transcended its category. Nike claims that “if you have a body,<br />
you are an athlete”. Nike is a benchmark for athletes and in the<br />
overall sphere of sports, not merely a sneakers manufacturer.<br />
A GREAT BRAND MUST BE<br />
CAPABLE OF GENERATING UNIQUE<br />
EXPERIENCES AND EMOTIONS<br />
In the end, it is not only about selling a product or providing<br />
a service: a brand must always seek to establish a link, an<br />
emotional connection with its target audience so that it turns<br />
into a long-lasting bond. For example, Dove is perfectly aware<br />
of its target audience’s needs and wishes: all those women<br />
who do not feel reflected by magazines’ beauty standards.<br />
By means of its campaign “for real beauty”, Dove managed to<br />
create an emotional bond with its audience, becoming thus<br />
something far beyond a personal care company.<br />
A GREAT BRAND MUST<br />
BE CONSISTENT<br />
A brand is not just a logo, a word, or a slogan. When a brand<br />
is coherent and consistent with its communication, everyone<br />
recognizes it. This is why it is important to have a recognizable<br />
framework, a visual image that leaves no doubt as to who is<br />
addressing us, even if we are not looking at the brand. This<br />
framework should be consistent regardless of the country<br />
and the communication format or platform. Movistar is a<br />
good example of this. Due to its distinctive elements, such as<br />
the blue sky, the clouds, the typography used, and a rigorous<br />
program by Lambie-Nairn, this brand is now recognized in all<br />
the territories where it operates, with no need to be identified<br />
by its logo.<br />
A strong brand is authentic and humane, regardless of how<br />
small or large it is. When a brand manages to speak in the<br />
same language its consumers use, their connection is far<br />
closer. This can be accomplished by being funny, intelligent,<br />
understanding, or the like. We can think of brands such<br />
as Google, which changes its illustrations every day, Red<br />
Bull, which pushes the limits of human capabilities, or even<br />
Beyoncé, with her 7/11 video that seems home-made.<br />
A GREAT BRAND<br />
MUST BE RELEVANT<br />
Let us remember that the key to generating trust is to act as<br />
consumers want and expect, that is, to understand what is<br />
important to them. Therefore, a great brand must aspire to<br />
be, by itself, whatever people want it to be, and try to generate<br />
strong associations among the audience.<br />
Established in 1976, Lambie-Nairn is a branding agency that<br />
creates emotive and dynamic brands. Lambie-Nairn believes<br />
that brands are capable of living at every touch point, even<br />
when consumers are driving the brand interaction. By doing<br />
this Lambie-Nairn creates brands that stimulate and establish<br />
a stronger emotional bond with their audiences.<br />
www.lambie-nairn.com<br />
124 125
PERU
PERU<br />
KEY FACTS AND TOP 12 MOST VALUABLE PERUVIAN BRANDS 2015<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM TOP 12<br />
MOST VALUABLE<br />
PERUVIAN BRANDS 2015<br />
BRAND VALUE<br />
Total Value of Peruvian Brands<br />
US$ 8.5 BILLION<br />
Brand Value Change 2014-2015<br />
+17%<br />
Source: Millward Brown and BrandZ<br />
#<br />
Brand<br />
4<br />
5<br />
6<br />
®<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1,108 1,076 5 3%<br />
643 594 5 8%<br />
Beer<br />
Soft Drinks<br />
422 410 5 3%<br />
Beer<br />
KEY FACTS<br />
Capital City<br />
Lima<br />
Currency<br />
NEW SOL<br />
Area 1.29 million km 2<br />
Population (THOUSAND) 30,770 (2014)<br />
Population growth rate (ANNUAL) 1.1% (2010-2015)<br />
Life expectancy 75 years (2013)<br />
#<br />
Brand<br />
1<br />
2<br />
3<br />
Source: Millward Brown and BrandZ<br />
Brand Value<br />
(US$ Mil.)<br />
2015 2014<br />
Brand<br />
Contribution<br />
Index<br />
Brand<br />
Value<br />
Change<br />
2014-2015<br />
1,808 1,540 3 17%<br />
1,678 1,630 5 3%<br />
1,479 1,037 3 43%<br />
Banks<br />
Beer<br />
Banks<br />
7<br />
8<br />
9<br />
10<br />
11<br />
12<br />
331 263 4 26%<br />
287 279 4 3%<br />
Insurance<br />
251 137 1 84%<br />
225 141 2 59%<br />
175 110 2 59%<br />
169 - 3<br />
Beer<br />
Cement<br />
Retail<br />
Retail<br />
NEW<br />
ENTRY<br />
Retail<br />
Literacy rate of 15-24 year olds 98.7% (2012)<br />
Unemployment rate 5.9% (2013)<br />
6.1% (2014)<br />
ANNUAL GDP AT CURRENT PRICES<br />
Total at current prices: US$ 203 billion (2014)<br />
GDP per capita (annual dollars): US$ 6,594 (2014)<br />
Growth rate: 2.4% (2014)<br />
Country’s share in regional GDP: 4.3% (2014)<br />
Net foreign direct investment: US$ 10 billion (2014)<br />
US$ 7.8 billion (2014)<br />
Sources:<br />
CEPAL, Comisión Económica ONU<br />
CEPASTAT – Database and Statistical Publications<br />
Financial Times Latin America & Caribbean<br />
World Bank<br />
Unesco<br />
128 129
PERU<br />
BRAND STORIES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
1 2 3<br />
7 8 9<br />
PARENT COMPANY BCP<br />
HEADQUARTERS Lima<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1889<br />
WEBSITE www.viabcp.com<br />
BRAND VALUE US $1,808 million<br />
PARENT COMPANY UCP Backus & Johnston<br />
HEADQUARTERS Lima<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION Around 1920<br />
WEBSITE www.cristal.com.pe<br />
BRAND VALUE US $1,678 million<br />
PARENT COMPANY Grupo Interbank<br />
HEADQUARTERS Lima<br />
INDUSTRY Banks<br />
YEAR OF FOUNDATION 1897<br />
WEBSITE www.interbank.com.pe<br />
BRAND VALUE US $1,479 million<br />
PARENT COMPANY Credicorp Group<br />
HEADQUARTERS Lima<br />
INDUSTRY Insurance<br />
YEAR OF FOUNDATION 1992<br />
WEBSITE www.pacificoseguros.com<br />
BRAND VALUE US $331 million<br />
PARENT COMPANY UCP Backus & Johnston<br />
HEADQUARTERS Lima<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1920<br />
WEBSITE www.pilsentrujillo.com.pe<br />
BRAND VALUE US $287 million<br />
PARENT COMPANY Unión Andina de Cementos<br />
HEADQUARTERS Lima<br />
INDUSTRY Cement<br />
YEAR OF FOUNDATION 1916<br />
WEBSITE www.unacem.com.pe<br />
BRAND VALUE US $251 million<br />
BCP is a financial institution that has<br />
been operating in Peru since 1889.<br />
Originally it was named Banco Italiano<br />
but became Banco de Creditor Peru in<br />
1942. The Bank has a huge presence<br />
across the country through its service<br />
channels; its challenge is to become well<br />
known for being a bank with customer<br />
focus.<br />
Cristal is promoted as the Peruvian beer<br />
that celebrates national unity.<br />
With values such as diversity, harmony<br />
and positivity, its communications relate to<br />
consumers’ passion by focusing on soccerrelated<br />
activities such as club sponsorship<br />
and even the naming of teams as “Sporting<br />
Cristal.”<br />
Cristal is produced by the largest beer<br />
company in Peru – Backus, which<br />
produces the majority of the country’s<br />
most popular beers: Cristal, Pilsen Callao,<br />
Cusqueña, Pilsen Trujillo, Barena, Arequipeña<br />
and San Juan. UCP Backus & Johnston is<br />
a subsidiary of SABMiller group, one of the<br />
largest brewer groups in the world.<br />
One of the largest financial institutions<br />
in Peru, Banco Internacional del Peru<br />
(Interbank) has a growing portfolio<br />
in personal credit, vehicle loans,<br />
mortgages, deposits, trade credits and<br />
retail.<br />
Its mission is to improve people’s quality<br />
of life by delivering a fast and friendly<br />
service every time, in every place. Key<br />
to this vision is its commitment to<br />
delivering client service flawlessly and via<br />
multiple channels.<br />
Pacifico is the leader in the insurance<br />
market in Peru.<br />
The company was established in 1992<br />
and its main purpose is to provide clients<br />
with risk management solutions. Pacifico<br />
is part of Credicorp, the largest financial<br />
group in Peru. It has more than 5,000<br />
professionals dedicated to providing its<br />
customers with a full range of products<br />
and services through its three lines of<br />
business: General Risks, Health – through<br />
its subsidiary Pacific Health – and Life<br />
through Pacific Life.<br />
Pilsen Trujillo beer is associated with<br />
the Peruvian region from where it gets<br />
its name – the northern city of Trujillo.<br />
Launched in 1920, it is now widely<br />
available across Peru. Backus & Johnston<br />
acquired the brand in 1994.<br />
Cemento Sol is the market leader in Perú<br />
and UNACEM’s best-selling product.<br />
Backed by more than 40 years of<br />
experience, making it the best-known and<br />
most reliable brand in the market, it is<br />
also the most widely available. Cemento<br />
Sol is the most widely used cement by<br />
builders and self-builders in Peru.<br />
4 5 6<br />
®<br />
10 11 12<br />
PARENT COMPANY UCP Backus & Johnston<br />
HEADQUARTERS Lima<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1863<br />
WEBSITE www.pilsencallao.com.pe<br />
BRAND VALUE US $1,108 million<br />
PARENT COMPANY Corporación LIndley<br />
HEADQUARTERS Lima<br />
INDUSTRY Soft Drinks<br />
YEAR OF FOUNDATION 1935<br />
WEBSITE www.incakola.com.pe<br />
BRAND VALUE US $643 million<br />
PARENT COMPANY UCP Backus & Johnston<br />
HEADQUARTERS Lima<br />
INDUSTRY Beer<br />
YEAR OF FOUNDATION 1909<br />
WEBSITE www.cusquena.com.pe<br />
BRAND VALUE US $422 million<br />
PARENT COMPANY Interbank Group<br />
HEADQUARTERS Lima<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 2001<br />
WEBSITE www.plazavea.com.pe<br />
BRAND VALUE US $225 million<br />
PARENT COMPANY Interbank Group<br />
HEADQUARTERS Lima<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 1996<br />
WEBSITE www.inkafarma.com.pe<br />
BRAND VALUE US $175 million<br />
PARENT COMPANY Interbank Group<br />
HEADQUARTERS Lima<br />
INDUSTRY Retail<br />
YEAR OF FOUNDATION 2005<br />
WEBSITE www.realplaza.pe<br />
BRAND VALUE US $169 million<br />
Created in 1863, Pilsen Callao was<br />
the first beer produced in Peru.<br />
Pilsen Callao is known for its<br />
traditional flavor, but in recent years<br />
it has refocused its image to create<br />
a more premium positioning. The<br />
activity focuses on an emotional<br />
connection with consumers, using the<br />
slogan “the flavor of true friendship”.<br />
Inca Kola drink is the best-selling soft<br />
drink in Peru.<br />
Launched in Lima in 1935, it is a<br />
characteristic yellow-gold color. In a<br />
country famous for its gastronomy,<br />
this drink is considered to be a good<br />
accompaniment to the nation’s<br />
traditional cuisine. In 1996, the Coca-<br />
Cola Company acquired 49% of the brand.<br />
Cusqueña is a premium quality beer, a<br />
winner of many international awards.<br />
The brand was launched in 1909 and<br />
today is exported to countries in<br />
America, Europe and Asia. The beer<br />
is produced in four different varieties:<br />
Rubia, Negra, Trigo and Red Lager. In<br />
2000, the brand was acquired by Backus<br />
& Johnston.<br />
Plaza Vea is a Peruvian brand of<br />
hypermarkets and supermarkets<br />
belonging to Interbank Group.<br />
The first store was opened in 2001<br />
and there are currently more than 80<br />
stores across the country. Plaza Vea<br />
employs more than 10,000 people in<br />
Lima and the provinces.<br />
InkaFarma is the largest retail<br />
pharmacy chain in Peru.<br />
InkaFarma was founded in 1996 and<br />
today has more than 8000 employees<br />
throughout Peru. The pharmacy offers<br />
many products such as pharmaceuticals,<br />
perfumery and personal care.<br />
Real Plaza is a chain of shopping malls<br />
based in Lima and with a presence in<br />
many other cities in Peru.<br />
Launched in 2005, it is part of lnterbank<br />
Group (a Corporate Peruvian Group<br />
present in many sectors like financial,<br />
retail, services and industrial). With<br />
ambitious plans for growth, Real Plaza has<br />
an internal real estate development team<br />
focused on rental and development of new<br />
shopping centers and independent shops.<br />
130 131
PERU<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
EXPORTING<br />
PERUVIAN BRANDS<br />
There is also the example of Aje Group, which has<br />
achieved presence in 23 countries by promoting the right<br />
product at an affordable price for a very specific segment.<br />
This group has strengthened in the past few years, but<br />
it is interesting to see that the company is daring to try<br />
something new in order to build its brands beyond the<br />
price element. It is seeking a new understanding of its<br />
consumers, who are also in need of a bond with the brand<br />
beyond the product. Clearly, these kinds of companies are<br />
prepared to reinvent themselves whenever necessary so<br />
as to go on competing in international markets.<br />
Faced with a fluctuating domestic<br />
economy, several Peruvian<br />
companies are looking to increase<br />
their international footprint,<br />
presenting their business models<br />
and brands on a broader stage.<br />
These brands seek to become<br />
emblematic to the wider LatAm<br />
region and even worldwide.<br />
CATALINA BONNET MONTOYA<br />
Managing Director<br />
Millward Brown, Peru<br />
Catalina.Bonnet@millwardbrown.com<br />
Examples like Belcorp and Yanbal International (Unique) have<br />
shown Latin America a strong business model in the Beauty<br />
and Personal Care category, posing a threat to big global<br />
companies. Their secret has been a local understanding<br />
of middle class consumers. The key to confronting global<br />
brands with strong presence has been to build meaningful<br />
differentiation, especially aimed at the Latin American<br />
emerging classes. What are these population segments<br />
looking for? A friend who provides honest beauty advice, one<br />
that a consumer trusts enough to try new things in front of<br />
without feeling judged. This is what the business model of<br />
these two companies is based upon.<br />
Brand Equity - Beauty Brands, Peru<br />
Unique<br />
192<br />
189<br />
2 2.9<br />
113<br />
Esika<br />
117<br />
Meaningful Different Salient Power<br />
100 (100 is an average score; 105 and above is a good score)<br />
15.6<br />
159<br />
138<br />
Source: Millward Brown and BrandZ<br />
Brand Equity - Banks, Peru<br />
Interbank<br />
94<br />
Mibanco<br />
108 97<br />
95<br />
8.9<br />
120<br />
6.8<br />
84<br />
Meaningful Different Salient Power<br />
100 (100 is an average score; 105 and above is a good score)<br />
Source: Millward Brown and BrandZ<br />
In the sphere of finance, a perfect example of<br />
internationalization is Interbank, a bank with a<br />
differentiated and aspirational proposal that has become<br />
stronger in some countries of this region. There is also the<br />
example of Mibanco, a microfinance offer addressing the<br />
niche of small and medium-sized companies, which find<br />
this brand relevant because it understands what they need<br />
in order to grow – whereas traditional banks do not. This<br />
bank’s challenge is to consolidate its emotional bonding<br />
and its market differentiator.<br />
Global ambition can also be seen in other large companies<br />
such as Alicorp, Química Suiza, and Gloria. These<br />
companies are now interested in understanding Latin<br />
American consumers, and are preparing to build strong<br />
brands in the region.<br />
So, we clearly see in Peru strong economic groups that<br />
are ready to compete in the whole region and hopefully<br />
globally. Their biggest challenge is to make sure they<br />
understand international consumers. Peruvian brands<br />
have achieved success by building propositions that<br />
are relevant for the needs of audiences that traditional<br />
global brands have not met. Their next step must be to<br />
build brands that connect at a more emotional level with<br />
consumers and, above all, that address them with honesty.<br />
132 133
PERU<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
HAS THE SLOWING<br />
PERUVIAN<br />
ECONOMY IMPACTED<br />
BRAND VALUE?<br />
The Peruvian economy saw important growth in recent<br />
years, generating changes in consumers: they are now more<br />
informed, more demanding, more connected, accessing more<br />
and more modern purchasing channels, and seeking new<br />
forms of entertainment.<br />
OLIVIA HERNÁNDEZ<br />
Client Service Director<br />
Millward Brown, Peru<br />
Olivia.Hernandez@millwardbrown.com<br />
However, in the past two years economic growth<br />
has not been as expected, which poses a question<br />
for brands: How can they keep generating value in<br />
an economic context less favorable than that of the<br />
country’s recent “golden age”?<br />
A lot of brands, the most valuable ones, have the<br />
answer to this question. These are the brands that<br />
achieved a value increase against 2014 despite the<br />
situation described.<br />
So, what is it that these brands did in order to grow?<br />
Investment on the Internet<br />
Revenues in the first half year in PEN (Peruvian New Sol).<br />
46.6 Million<br />
2012 2013 2014<br />
Source: PWC and iab, Peru<br />
DIGITIZATION<br />
+20%<br />
In the face of the huge change in<br />
consumer behaviors, some brands have<br />
understood the way to be present in the<br />
new digital world.<br />
Although there is still a long way to<br />
go, there are brands – like BCP and<br />
Interbank – daring to be the first to<br />
increase their digital campaigns and<br />
create more salience, while favoring the<br />
use of the internet and mobile devices<br />
to make transactions.<br />
56 Million<br />
+48%<br />
DIFFERENTIATION<br />
83.2 Million<br />
With highly relevant insights and<br />
consistent communication, Pilsen Callao<br />
has managed to be a meaningful but,<br />
above all, different brand by generating<br />
a great brand experience, for instance,<br />
by celebrating Friend’s Day, or creating<br />
“the beer bouquet”.<br />
The presence of the retail sector in the<br />
most valuable brands ranking of last<br />
year shows that the modern channel<br />
is becoming stronger in the country.<br />
A good example of this is Real Plaza, the<br />
shopping mall chain that has expanded<br />
all over the country, generating clear<br />
differentiation in terms of leadership. Real<br />
Plaza has managed to break paradigms by<br />
bringing shopping malls close to different<br />
regions and socio-economic levels,<br />
as well as understanding consumers’<br />
changing purchasing habits. It is focused<br />
on providing a great brand experience<br />
through meaningfulness – for instance,<br />
there are family entertainment areas<br />
inside its malls.<br />
However, there is still a long way to go in<br />
terms of innovation. Although there are<br />
brands with successful launches, there is<br />
another question to be answered: Is the<br />
work on innovation in Peru sufficient? Are<br />
we taking the calculated risks necessary<br />
to be more innovative?<br />
Innovation not only relates to products,<br />
but also to brands, communication,<br />
contact points... We must all open our<br />
minds to innovation.<br />
134 135
PERU<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BUILDING<br />
MEANINGFULLY<br />
DIFFERENTIATED<br />
BRANDS IN PERU<br />
Consumers are more informed and more<br />
connected, and have therefore become more<br />
demanding, in search of experiences and<br />
innovations. Likewise, exposure to global media<br />
and content has refined their needs – the<br />
conscious ones and unconscious ones – creating a<br />
different relationship with brands, strengthening<br />
the bonds with those that make them feel<br />
recognized or that offer new value proposition.<br />
Consumers are wide awake – or at least this is<br />
how we perceive them. This transformation has<br />
led consumers to go beyond wanting affordable<br />
prices and appealing promotions, to different<br />
and meaningful experiences that link them<br />
emotionally to brands.<br />
JEANETTE YAÑEZ PAJUELO<br />
Account Group Director<br />
Millward Brown, Peru<br />
Jeanette.Yanez@millwardbrown.com<br />
In addition, new segments are<br />
becoming important. Today,<br />
young people – and women in<br />
particular – are key to many<br />
categories, so that addressing<br />
them and positioning brands as<br />
desirable has become crucial.<br />
These changes are not alien to<br />
the traditional and highly valued<br />
category of beer. During the<br />
past year we have witnessed<br />
increased activity, with the<br />
entry of new brands and the<br />
emergence of a still small – but<br />
with high media presence - set<br />
of traditionally brewed beers,<br />
especially in Peru.<br />
ARE LARGE BRANDS<br />
STILL LARGE?<br />
We have seen that the beer category<br />
remains one of the strongest in the<br />
ranking, holding some of the top<br />
positions. In Peru, consumers mainly<br />
prefer Cerveza Cristal, “la cerveza de<br />
los peruanos” (“Peruvians’ beer”), and<br />
Pilsen Callao, “el sabor de la verdadera<br />
amistad” (“the taste of true friendship”).<br />
Both brands have solid bonds with<br />
Peruvian consumers, but throughout<br />
this year we have observed two<br />
different approaches. Cerveza Cristal<br />
has maintained its value on the<br />
basis of its market leadership and<br />
its association with something that<br />
triggers strong passions – football.<br />
Meanwhile, Pilsen Callao has gained<br />
importance. The oldest beer in<br />
Peru continuously rejuvenates itself<br />
through ongoing innovation in terms<br />
of image and experiences offered to<br />
consumers, communicating freshness<br />
and reinforcing its association with<br />
true friendship. In this ever-changing<br />
environment, it is worth highlighting the<br />
work done by both brands, which have<br />
managed to keep strong and valid bonds<br />
with their consumers.<br />
But beer is not the only category<br />
showing important modifications this<br />
year. Banks have also been able to<br />
find a key factor to trigger closeness<br />
with consumers. Their campaigns<br />
have sought to generate an emotional<br />
relationship with their target audience,<br />
focusing on their understanding and<br />
identification with users’ difficulties.<br />
This is the category at the head of the<br />
ranking, with a total of 15 brands –<br />
noteworthy, right?<br />
Interbank has launched a campaign<br />
focused on saving that connects with<br />
viewers, as if talking to a friend, making<br />
them feel they really understand what it<br />
means to save and live with restraint in<br />
order to achieve a goal.<br />
The leader, Banco de Crédito del Perú,<br />
works on different points of contact<br />
with its customers, presenting itself as<br />
constantly concerned with their needs,<br />
offering them special products, this is<br />
interpreted as closeness.<br />
A key element of this understanding<br />
is seen in how brands communicate<br />
with consumers. Today communication<br />
takes place not only through traditional<br />
media, such as television, but through<br />
different formats – customers are now<br />
multi-screen and connected for about 8<br />
hours a day.<br />
WHAT CAN WE LEARN<br />
FROM THESE BRANDS?<br />
To listen to consumers, for they are<br />
the ones in control. Listening and<br />
then acting creates meaningfully<br />
differentiated brands. Reinvention and<br />
innovation are also critical elements<br />
in provoking the loyalty and/or love<br />
that consumers rely on when making<br />
a decision. The key is getting close to<br />
consumers, being present at important<br />
moments, making them identify with<br />
the brand. Brands must be part of their<br />
consumer’s lives, accompany them,<br />
be an ally in their adventures, so that<br />
consumers feel proud to be users.<br />
136 137
PERU<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
WHAT'S NEW<br />
IN PERU'S<br />
LOCAL MARKET?<br />
In the past 15 years, Peru has experienced its highest economic<br />
peak of the previous 60 years. Not since the fishing “boom” in<br />
the 1950s, when Peru became one of the main fishmeal and<br />
hydrobiological goods producers, has the Peruvian economy<br />
experienced such a steady growth, with rates that led to an<br />
almost three-fold increase of its GDP over the last 15 years.<br />
FIDEL LA RIVA CRUZ<br />
Country Manager<br />
Kantar Worldpanel, Peru<br />
Fidel.Riva@kantarworldpanel.com<br />
Obviously, these changes have brought<br />
about some important transformations<br />
in the socio-demographic structure of<br />
Peruvian families. According to ECLAC<br />
(Economic Commission for Latin America<br />
and the Caribbean), in the past 15 years<br />
almost a million Peruvian families have<br />
overcome extreme poverty, generating a<br />
population pyramid that looks more like<br />
a diamond. This has also resulted in the<br />
development of a thriving middle class that<br />
has been the driving force behind domestic<br />
consumption, leading to growth in some<br />
industries and sectors. For instance, the<br />
market of new car sales increased from<br />
40,000 new cars in 2003 to over 210,000<br />
in 2013. Likewise, the construction sector<br />
grew at 12% average annual rate in the last<br />
ten years, while over 120,000 mortgages for<br />
the purchase of private homes were granted.<br />
According to the data on mass<br />
consumption, the basic basket of an<br />
average Peruvian household has grown<br />
from around 48 categories of products<br />
in early 2000 to around 58 categories<br />
in 2015, with two-digit growth in<br />
the consumption of many of these<br />
categories.<br />
WHERE ARE THE<br />
WEAK POINTS?<br />
Not everything has gone so well. During<br />
these years of the highest macroeconomic<br />
growth, we have failed to<br />
resolve structural issues such as casual<br />
labor and sub-employment, our industry<br />
has not strengthened, and we still<br />
have a 70% dependence on exports of<br />
primary and traditional products, mainly<br />
commodities such as copper, silver, gold,<br />
and zinc, among others. We continue<br />
to be one of the countries in this region<br />
with the largest number of households<br />
receiving daily or weekly wages – about<br />
45% of Peruvian households obtain their<br />
income this way, due to casual labor<br />
and employment scarcity. This results<br />
in a country with the highest purchase<br />
frequency in the region, with 296 visits<br />
to points of sale to buy basic basket<br />
goods, with one of the lowest average<br />
purchase ticket in the region – around<br />
$6 US per visit – comparable only to<br />
Mexico, Bolivia, and some countries in<br />
Central America.<br />
In this environment, with so many<br />
“moments of truth” in the purchase<br />
process, a still predominantly traditional<br />
channel – warehouses and markets –<br />
and a compulsive need among Peruvian<br />
housewives to spread the budget as<br />
far as possible, the work for brands in<br />
Peru is a constant challenge. There is no<br />
doubt we Peruvians are “brandists”: we<br />
have emblematic Peruvian brands with<br />
high affinity, bonds and history with<br />
local consumers, which makes us quite<br />
traditional. Thus, building new brands<br />
in Peru is almost a handicraft, a task<br />
that requires patience, clear strategies,<br />
perseverance and consistency.<br />
It is clear that the golden years of the<br />
world and particularly Latin America<br />
are already over, and that the macroeconomic<br />
environment will not be as<br />
favorable as some years ago, a fact that<br />
has become evident in Peru since 2014.<br />
Nonetheless, it is also clear that there<br />
are business opportunities and that,<br />
despite the economic slowdown, some<br />
brands and products keep growing. The<br />
important thing is to continue building<br />
strong brands on the basis of sound<br />
knowledge of consumers, leveraged<br />
by the innovation demanded by those<br />
consumers according to new market<br />
trends and needs.<br />
Kantar Worldpanel is the world leader in<br />
consumer knowledge and insights based<br />
on continuous consumer panels. Its<br />
High Definition Inspiration approach<br />
combines market monitoring, advanced<br />
analytics and tailored market research<br />
solutions that inspire successful actions<br />
by its clients.<br />
Kantar Worldpanel’s expertise about<br />
what people buy or use - and why - is<br />
recognised by brand owners, retailers,<br />
market analysts and government<br />
organisations globally.<br />
With over 60 years’ experience, a<br />
team of 3,500, and services covering<br />
60 countries directly or through<br />
partners, Kantar Worldpanel helps<br />
brands grow in fields as diverse as<br />
FMCG, impulse products, fashion, baby,<br />
telecommunications and entertainment,<br />
among many others.<br />
www.kantarworldpanel.com<br />
138 139
PERU<br />
THOUGHT LEADERSHIP<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
FROM ANALYTICAL<br />
TO 'CURIOSYTICAL'<br />
THE IMPACT OF<br />
ACTIONABLE IDEAS<br />
Today, this equation has changed: although<br />
it is true that maximizing the message’s<br />
reach secures brand presence and relevance,<br />
impact and powerful ideas of enhancement<br />
strengthen the bonding between brands and<br />
consumers. Today, this is what generates<br />
value and continuity.<br />
There is no doubt that the challenges today’s<br />
brands face in order to generate value for<br />
shareholders are more and more intense,<br />
especially as functional differentiation is<br />
increasingly reduced by the existence of<br />
technology and information as commodities.<br />
However, strong brands leave a mark, and this<br />
mark carries the imprint of those working on<br />
the brand: the marketing and agency team.<br />
EDUARDO VELASCO MAXIMILIANO<br />
Managing Director<br />
MEC, Peru<br />
Eduardo.Velasco@mecglobal.com<br />
In the past ten years, media agencies<br />
have undergone an interesting<br />
transformation, integrating specialized<br />
areas and profiles to complement<br />
traditional analysis and media planning.<br />
This is aimed at enhancing the strategic<br />
nature of the service, emphasizing data<br />
and digital media. Years ago, the role of<br />
media agencies was mainly to maximize<br />
the reach of the brand’s message in<br />
paid media, sometimes adding a few<br />
innovative ideas on media use. What<br />
was important was to maximize the<br />
number of people exposed to a brand’s<br />
message at the lowest possible cost.<br />
The impact achieved by any innovation<br />
in the use of media came second.<br />
By impact and powerful ideas, we do not<br />
mean TV and radio adverts, but what<br />
we call “actionable ideas”. Based on the<br />
interpretation of consumers’ real time data,<br />
the market, and competitors, as well as<br />
on predictions around the events and/or<br />
content that can be related to the brand,<br />
we develop specific actions that are then<br />
enhanced through paid media, both owned<br />
and earned. Formerly, a brand scheduled<br />
8-10 activities in a year. Today, they have a<br />
plan with 30-40 activities in a year. Brands’<br />
dynamism ensures their permanence in<br />
consumers’ preferences, but demands a<br />
more efficient investment.<br />
This is why media agencies’ teams are<br />
evolving from being characteristically<br />
analytical to become ‘curiositycal’. Today,<br />
collecting and reading data is not enough: we<br />
need to understand them, identify patterns,<br />
associate them with opportunities, develop<br />
relevant content, and finally create powerful<br />
ideas based on all of these. Today, social<br />
listening, big data, and market content<br />
enable agencies to deliver ideas to brands in<br />
real time, ideas that will then add more value.<br />
This is becoming more and more relevant. It<br />
is no coincidence that some Cannes awards<br />
were granted to media, nor that different<br />
and comprehensive agencies are emerging<br />
globally. Rather, this shows that the current<br />
ecosystem is being redefined on the basis of<br />
the convergence of all these media elements.<br />
MEC is committed to growth. Growth for our people, our clients and<br />
our industry. MEC pushes the boundaries of what’s possible in order<br />
to thrive in Digital / Mobile / Search / Social / Performance Marketing<br />
/ Data / Analytics / Insight / Sponsorship / Branded Entertainment /<br />
Multi-cultural / Content / Retail and Integrated Planning. Our 5,000<br />
highly talented and motivated people work with category-leading<br />
advertisers in 93 countries and we are a founding partner of GroupM.<br />
#dontjustlivethrive.<br />
www.mecglobal.com<br />
140 141
RESOURCES
RESOURCES<br />
BRANDZ VALUATION METHODOLOGY<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM BRAND<br />
VALUATION<br />
METHODOLOGY<br />
Introduction<br />
The Valuation Process<br />
The brands that appear in this<br />
report are the most valuable<br />
in Latin America. They were<br />
selected for inclusion in<br />
the BrandZ Top 50 Most<br />
Valuable Latin American<br />
Brands based on the unique<br />
and objective BrandZ brand<br />
valuation methodology that<br />
combines extensive and ongoing<br />
consumer research with<br />
rigorous financial analysis.<br />
The BrandZ valuation methodology<br />
can be uniquely distinguished from<br />
its competitors by the way we obtain<br />
consumer viewpoints. We conduct<br />
worldwide, on-going, in-depth<br />
quantitative consumer research, and<br />
build up a global picture of brands on<br />
a category-by-category and marketby-market<br />
basis.<br />
Globally, our research covers three<br />
million consumers and more than<br />
100,000 different brands in over 50<br />
markets. This intensive, in-market<br />
consumer research differentiates<br />
the BrandZ methodology from<br />
competitors that rely only on a panel<br />
of 'experts', or purely on financial and<br />
market desktop research.<br />
Before reviewing the details of this<br />
methodology, consider these three<br />
fundamental questions: why is brand<br />
important; why is brand valuation<br />
important; and what makes BrandZ<br />
the definitive brand valuation tool?<br />
IMPORTANCE OF BRAND<br />
Brands embody a core promise of values<br />
and benefits consistently delivered.<br />
Brands provide clarity and guidance for<br />
choices made by companies, consumers,<br />
investors and others stakeholders.<br />
Brands provide the signposts we need<br />
to navigate the consumer and B2B<br />
landscapes.<br />
At the heart of a brand’s value is its<br />
ability to appeal to relevant customers<br />
and potential customers. BrandZ<br />
uniquely measures this appeal and<br />
validates it against actual sales<br />
performance. Brands that succeed in<br />
creating the greatest attraction power<br />
are those that are Meaningful, Different<br />
and Salient.<br />
IMPORTANCE OF<br />
BRAND VALUATION<br />
Brand valuation is a metric that<br />
quantifies the worth of these powerful<br />
but intangible corporate assets. It<br />
enables brand owners, the investment<br />
community and others to evaluate and<br />
compare brands and make faster and<br />
better-informed decisions.<br />
DISTINCTION OF<br />
BRANDZ TM<br />
BrandZ is the only brand valuation tool<br />
that peels away all of the financial and<br />
other components of brand value and<br />
gets to the core – how much brand alone<br />
contributes to corporate value. This<br />
core, what we call Brand Contribution,<br />
differentiates BrandZ.<br />
STEP 1: CALCULATING<br />
FINANCIAL VALUE<br />
Part A<br />
We start with the corporation. In some<br />
cases, a corporation owns only one brand.<br />
All Corporate Earnings come from that<br />
brand. In other cases, a corporation owns<br />
many brands. And we need to apportion<br />
the earnings of the corporation across a<br />
portfolio of brands.<br />
To make sure we attribute the correct<br />
portion of Corporate Earnings to each<br />
brand, we analyze financial information<br />
from annual reports and other sources,<br />
such as Kantar Retail. This analysis yields<br />
a metric we call the Attribution Rate.<br />
We multiply Corporate Earnings by the<br />
Attribution Rate to arrive at Branded<br />
Earnings, the amount of Corporate<br />
Earnings attributed to a particular brand.<br />
If the Attribution Rate of a brand is<br />
50 percent, for example, then half the<br />
Corporate Earnings are identified as<br />
coming from that brand.<br />
Part B<br />
What happened in the past – or even<br />
what’s happening today – is less<br />
important than prospects for future<br />
earnings. Predicting future earnings<br />
requires adding another component to<br />
our BrandZ formula. This component<br />
assesses future earnings prospects as<br />
a multiple of current earnings. We call<br />
this component the Brand Multiple. It’s<br />
similar to the calculation used by financial<br />
analysts to determine the market value<br />
of stocks (Example: 6X earnings or<br />
12X earnings). Information supplied by<br />
Bloomberg data helps us calculate a Brand<br />
Multiple. We take the Branded Earnings<br />
and multiply that number by the Brand<br />
Multiple to arrive at what we call Financial<br />
Value.<br />
STEP 2: CALCULATING<br />
BRAND CONTRIBUTION<br />
So now we have got from the total value<br />
of the corporation to the part that is the<br />
branded value of the business. But this<br />
branded business value is still not quite<br />
the core that we are after. To arrive at<br />
Brand Value, we need to peel away a few<br />
more layers, such as the in-market and<br />
logistical factors that influence the value<br />
of the branded business, for example:<br />
price, availability and distribution.<br />
What we are after is the value of the<br />
intangible asset of the brand itself that<br />
exists in the minds of consumers. That<br />
means we have to assess the ability of<br />
brand associations in consumers’ minds to<br />
deliver sales by predisposing consumers to<br />
choose the brand or pay more for it.<br />
We focus on the three aspects of brands<br />
that we know make people buy more and<br />
pay more for brands: being Meaningful<br />
(a combination of emotional and rational<br />
affinity), being Different (or at least feeling<br />
that way to consumers), and being Salient<br />
(coming to mind quickly and easily as the<br />
answer when people are making category<br />
purchases).<br />
We identify the purchase volume and any<br />
extra price premium delivered by these<br />
brand associations. We call this unique<br />
role played by brand, Brand Contribution.<br />
Here’s what makes BrandZ so unique<br />
and important. BrandZ is the only brand<br />
valuation methodology that obtains<br />
this customer viewpoint by conducting<br />
worldwide on-going, in-depth quantitative<br />
consumer research, online and face-toface,<br />
building up a global picture of brands<br />
on a category-by-category and marketby-market<br />
basis. Our research now covers<br />
over three million consumers and more<br />
than 100,000 different brands in over 50<br />
markets.<br />
STEP 3: CALCULATING<br />
BRAND VALUE<br />
Now we take the Financial Value and<br />
multiply it by Brand Contribution, which<br />
is expressed as a percentage of Financial<br />
Value. The result is Brand Value. Brand<br />
Value is the dollar amount a brand<br />
contributes to the overall value of a<br />
corporation. Isolating and measuring this<br />
intangible asset reveals an additional<br />
source of shareholder value that otherwise<br />
would not exist.<br />
144 145
RESOURCES<br />
BRANDZ VALUATION METHODOLOGY<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
WHY BRANDZ TM IS<br />
THE DEFINITIVE<br />
BRAND VALUATION<br />
METHODOLOGY<br />
Eligibility criteria and definitions<br />
All brand valuation methodologies<br />
are similar – up to a point.<br />
All methodologies use financial<br />
research and sophisticated<br />
mathematical formulae to<br />
calculate current and future<br />
earnings that can be attributed<br />
directly to a brand rather than<br />
to the corporation. This exercise<br />
produces an important but<br />
incomplete picture.<br />
What’s missing? The picture of the<br />
brand at this point lacks input from<br />
the people whose opinions are most<br />
important – the consumer. This is<br />
where the BrandZ methodology<br />
and the methodologies of our<br />
competitors part company.<br />
HOW DOES THE COMPETITION<br />
DETERMINE THE CONSUMER VIEW?<br />
Interbrand derives the consumer point of view from panels of experts<br />
who contribute their opinions. The Brand Finance methodology employs<br />
a complicated accounting method called Royalty Relief Valuation.<br />
WHY IS THE BRANDZ TM<br />
METHODOLOGY SUPERIOR?<br />
BrandZ goes much further and is more relevant. Once we have<br />
the important, but incomplete, financial picture of the brand, we<br />
communicate with consumers, people who are actually paying for<br />
brands every day, constantly. Our on-going, in-depth quantitative<br />
research includes three million consumers and more than 100,000<br />
brands in over 50 markets worldwide.<br />
WHAT'S THE BRANDZ TM BENEFIT?<br />
The BrandZ methodology produces important benefits for two broad<br />
audiences.<br />
• Members of the financial community, including analysts,<br />
shareholders, investors and C-suite, depend on BrandZ for the<br />
most reliable and accurate brand value information available.<br />
ELIGIBILITY<br />
The brands ranked in the BrandZ Top<br />
50 Most Valuable Latin American Brands<br />
2015 report meet one of these four<br />
eligibility criteria:<br />
• The brand must be owned by a<br />
publicly-traded enterprise<br />
• The publicly-traded enterprise must<br />
report positive earnings<br />
• The brand must be characterized as<br />
a local Latin American brand (either<br />
originating from Latin America or a<br />
relevant proportion of its business is<br />
located there).<br />
• The brand is owned by an enterprise<br />
listed on any of the Stock Exchanges<br />
of the evaluated countries.<br />
DEFINITIONS<br />
Brand Contribution<br />
Brand Contribution is a BrandZ<br />
measurement of a brand’s uniqueness<br />
in the mind of the consumer and the<br />
impact of brand alone, without any<br />
other factors, on future earnings. Brand<br />
Contribution is expressed on a scale of<br />
one to five, with five being the highest.<br />
Brand Power<br />
Brand Power is a BrandZ measurement<br />
of a brand’s competitive position in<br />
its category. It roughly correlates with<br />
volume share. Brand Power is a BrandZ<br />
component of brand equity, which is the<br />
consumer predisposition to choose one<br />
brand over another.<br />
MEANINGFUL,<br />
DIFFERENT, SALIENT<br />
Meaningful<br />
Consumers feel an affinity for the brand<br />
or think it meets their needs. In any<br />
category, these brands appeal more,<br />
generate greater “love” and meet the<br />
individual’s expectations and needs.<br />
Different<br />
The brand feels different to other brands<br />
in the category. They are unique in a<br />
positive way and “set the trends” for the<br />
category, staying ahead of the curve for<br />
the benefit of the consumer.<br />
Salient<br />
The brand comes to mind quickly and<br />
spontaneously when activated by ideas<br />
related to category purchase. The brand<br />
of choice for key needs.<br />
• Brand owners turn to BrandZ to more deeply understand the<br />
causal links between brand strength, sales and profits, and to<br />
translate those insights into strategies for building brand equity.<br />
146 147
RESOURCES<br />
BRANDZ PUBLICATIONS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRANDZ TM : THE ULTIMATE<br />
RESOURCE FOR BRAND<br />
KNOWLEDGE AND INSIGHT<br />
BRANDZ TM<br />
ON THE MOVE<br />
BrandZ Top 100 Most<br />
Valuable Global Brands 2015<br />
This is the definitive global brand<br />
valuation study, analysing key trends<br />
driving the world’s largest brands,<br />
exclusive industry insights, thought<br />
leadership and a retrospective look at<br />
10 years of BrandZ.<br />
BrandZ Top 100 Most<br />
Valuable Chinese Brands 2015<br />
The report profiles Chinese brands,<br />
outlines major trends driving brand<br />
growth and includes commentary<br />
on the growing influence of Chinese<br />
brands at home and abroad.<br />
BrandZ Top 50 Most<br />
Valuable Indian Brands 2015<br />
This second annual BrandZ Top 50<br />
Most Valuable Indian Brands report has<br />
set a record. It increased 33 percent in<br />
value, a rate that exceeds the growth<br />
of the Global Top 100 for every year<br />
since the launch of the Global BrandZ<br />
rankings a decade ago.<br />
The Chinese New Year in<br />
Next Growth Cities<br />
The report explores how<br />
Chinese families celebrate this<br />
ancient festival and describes<br />
how the holiday unlocks yearround<br />
opportunities for brands<br />
and retailers, especially in<br />
China’s lower tier cities.<br />
For the iPad magazine search for<br />
Chinese New Year on iTunes<br />
TrustR<br />
Engaging Consumers in<br />
the Post-Recession World<br />
Trust is no longer enough. Strong<br />
brands inspire both Trust (belief<br />
in the brand’s promise developed<br />
over time) and Recommendation<br />
(current confirmation of that<br />
promise). This combination of Trust<br />
plus Recommendation results in a<br />
new metric called TrustR.<br />
Get the BrandZ Top 100 Most<br />
Valuable Global Brands, Chinese Top<br />
100, Indian Top 50, Indonesian Top 50<br />
and many more insightful reports on<br />
your smartphone or tablet.<br />
To download the apps for the<br />
BrandZ rankings go to www.BrandZ.<br />
com/mobile (for iPhone and Android).<br />
BrandZ is the world’s largest and<br />
most reliable customer-focused source<br />
of brand equity knowledge and insight.<br />
To learn more about BrandZ data or<br />
studies, or view one of our industry<br />
insight videos, please visit www.<br />
BrandZ.com, or contact any WPP<br />
company.<br />
BrandZ Top 50 Most Valuable<br />
Indonesian Brands 2015<br />
This new study analyses the success<br />
of Indonesian brands, examining the<br />
dynamics shaping this fast-emerging<br />
market and offering insights for<br />
building valuable brands.<br />
The Chinese Golden Weeks<br />
in Fast Growth Cities<br />
Using research and case studies,<br />
the report examines the shopping<br />
attitudes and habits of China’s rising<br />
middle class and explores opportunities<br />
for brands in many categories.<br />
For the iPad magazine, search Golden<br />
Weeks on iTunes<br />
The Power and Potential<br />
of The Chinese Dream<br />
“The Power and Potential of The<br />
Chinese Dream” is rich with knowledge<br />
and insight, and forms part of a<br />
growing library of WPP reports about<br />
China. It explores the meaning and<br />
significance of the “Chinese Dream”<br />
for Chinese consumers as well as its<br />
potential impact on brands.<br />
ValueD<br />
Balancing Desire and<br />
Price for Brand Success<br />
Desire is primary. High Desire<br />
enables Price flexibility.<br />
A new metric, Value-D,<br />
measures the gap between<br />
the consumer’s Desire for a<br />
brand and the consumer’s<br />
perception of the brand’s<br />
Price. By quantifying this<br />
gap, Value-D helps brands<br />
optimize their profit and,<br />
market-positioning potential.<br />
RepZ<br />
Maximising Brand and<br />
Corporate Integrity<br />
Major brands are especially<br />
vulnerable to unforeseen events<br />
that can quickly threaten the<br />
equity cultivated over a long period<br />
of time. But those brands with a<br />
better reputation are much more<br />
resilient. Four key factors drive<br />
Reputation: Success, Fairness,<br />
Responsibility and Trust. Find out<br />
how your brand performs.<br />
CharacterZ<br />
Brand personality analysis deepens<br />
brand understanding<br />
Need an interesting and stimulating way to<br />
engage with your clients? Want to impress<br />
them with your understanding of their brand?<br />
A new and improved CharacterZ can help! It<br />
is a fun visual analysis, underpinned by the<br />
power of BrandZ, which allows detailed<br />
understanding of your brand’s personality.<br />
148 149
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
BRAND EXPERTS WHO<br />
CONTRIBUTED TO THE REPORT<br />
These individuals from WPP companies provided additional<br />
thought leadership, research, analysis and insight to the report<br />
JORGE ALAGÓN<br />
Chief Client Solutions Officer LATAM<br />
Millward Brown<br />
Jorge.Alagón@millwardbrown.com<br />
FERNANDO ALVAREZ KURI<br />
Vice President<br />
Millward Brown Vermeer, Mexico<br />
Fernando.Alvarez@millwardbrown.com<br />
CLAUDIO APABLAZA<br />
Business Development Director<br />
Millward Brown, Chile<br />
Claudio.Apablaza@millwardbrown.com<br />
LILIA BARROSO<br />
CEO<br />
GroupM, Mexico<br />
Lilia.Barroso@groupm.com<br />
RICARDO BARRUETA<br />
Managing Director<br />
Millward Brown, Mexico, Central America<br />
and the Caribbean<br />
Ricardo.Barrueta@millwardbrown.com<br />
FRANCISCO BAYEUX<br />
Global Innovations<br />
Millward Brown, Brazil<br />
Francisco.Bayeux@millwardbrown.com<br />
Jorge holds a Bachelor’s Degree in<br />
Applied Sciences from Mexico’s ITAM,<br />
and a Masters in Applied Statistics<br />
from Oxford University. With<br />
more than 20 years in the market<br />
research industry, Jorge has worked<br />
in organizations such as J. Walter<br />
Thompson Mexico and Estadística<br />
Aplicada e Investigación de<br />
Mercados S.C. In 2002, Jorge joined<br />
Millward Brown Mexico’s Research<br />
Development Team, a path that<br />
lead him all the way to the Global<br />
Innovations Team in Warwick, UK,<br />
where he launched the Meaningfully<br />
Different Framework to measure<br />
Brand Equity and Value.<br />
Nowadays, Jorge is back in Millward<br />
Brown LatAm commercializing<br />
solutions for clients.<br />
Fernando currently leads Millward<br />
Brown Vermeer in Mexico, Millward<br />
Brown’s consultancy branch<br />
specializing in subjects such as<br />
branding, media and communication<br />
strategies. He holds a Master’s in<br />
Consumer Psychology from Guelph<br />
University and has over 20 years<br />
of experience both on agency and<br />
client side, being responsible for<br />
the design and implementation of<br />
brand strategies in FMCG and service<br />
companies. His areas of expertise<br />
include consumer psychology,<br />
strategy and brand communication.<br />
Claudio has a degree in Sociology<br />
from the Universidad de Chile. For<br />
over a decade he was a lecturer in<br />
research methodology and market<br />
research in different universities of<br />
Santiago.<br />
Claudio has 20 years of experience as<br />
a project manager, area manager and<br />
business manager in different market<br />
research agencies including TNS,<br />
Ipsos, Synovate, Time Research,<br />
Millward Brown, Mori, GfK Adimark.<br />
He joined Millward Brown (for<br />
the second time) in April 2014 as<br />
Business Development Director,<br />
responsible for developing new<br />
accounts and customers.<br />
Lilia Barroso has extensive experience in<br />
the media industry, having worked in this<br />
field for more than 20 years. Currently, she<br />
holds the position of CEO GroupM Mexico,<br />
a holding company integrated by Koan,<br />
Maxus, Mediacom, MEC, Mindshare Mexico<br />
and Xaxis.<br />
Lilia joined J. Walter Thompson Mexico as<br />
Media Director in June 1987. In 1998, she<br />
founded Total Media, the first independent<br />
media unit created by an advertising<br />
agency in Mexico, along with David Byles,<br />
J. Walter Thompson Latin America´s<br />
Regional Media Director. The following year,<br />
Lilia founded MindShare Mexico, J. Walter<br />
Thompson and Ogilvy WorldWide´s media<br />
partner. She returned to the WPP Group<br />
as General Manager of MindShare Mexico<br />
to help lead the company through the new<br />
challenges facing the media scene.<br />
Lilia also participates in judging at events<br />
such as The Effie’s Awards, Círculo Creativo<br />
and “Premios Creer”. She was recognized<br />
as “Executive of the Year” by Mujer<br />
Ejecutiva, “Eagle Awards” by Creativa,<br />
“National Awards” by Ocho Columnas.<br />
Ricardo has over 20 years of experience<br />
in the market intelligence industry,<br />
experience he gained after having<br />
studied a degree in Actuarial Sciences<br />
and Applied Statistics at Mexico’s ITAM.<br />
Managing Director of Millward Brown in<br />
the North LatAm region, he has worked<br />
for the company for the past 16 years.<br />
Ricardo is particularly interested in<br />
understanding the impact of digital<br />
proliferation on the consumer’s mindset.<br />
Francisco graduated as both Business<br />
Administrator specializing in Marketing<br />
(ESPM – Brazil) and Mechanical Engineer<br />
(FAAP – Brazil).<br />
He started at Millward Brown in Brazil<br />
as a Research Executive in 2006,<br />
working in Client Service. In 2014, he<br />
moved to the Regional Solutions team<br />
in LatAm as Product Manager, with the<br />
responsibility of implementing new brand<br />
and commercial strategies according to<br />
global, regional and local needs.<br />
Francisco is currently working with the<br />
Global Innovations team on R&D for<br />
the future self-service offers of Millward<br />
Brown.<br />
152 153
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONTRIBUTORS<br />
CATALINA BONNET MONTOYA<br />
Managing Director<br />
Millward Brown, Peru<br />
Catalina.Bonnet@millwardbrown.com<br />
GABRIEL ENRIQUE CASTELLANOS<br />
Managing Director<br />
Millward Brown, Andean Region<br />
Gabriel.Castellanos@millwardbrown.com<br />
ANNETTA CEMBRANO PERASSO<br />
CEO<br />
MEC, Chile<br />
Annetta.Cembrano@mecgobal.com<br />
SEBASTIÁN CORZO<br />
CS Senior Consultant<br />
Millward Brown, Argentina<br />
Sebastian.Corzo@millwardbrown.com<br />
FIDEL LA RIVA CRUZ<br />
Managing Director<br />
Kantar Worldpanel, Peru<br />
Fidel.Riva@kantarworldpanel.com<br />
RENATO DUO<br />
Strategic Planning Manager<br />
J. Walter Thompson, São Paulo<br />
Renato.Duo@jwt.com<br />
Catalina has a Psychology degree<br />
from the Universidad de la Sabana<br />
and a Master’s in Strategic Marketing<br />
from the University of Toulouse,<br />
France. She has over 12 years of<br />
experience in market research.<br />
Catalina joined the Millward Brown<br />
team the year that they opened their<br />
offices in Colombia (2002). In 2004,<br />
she moved to France and was part of<br />
the office of Millward Brown Paris for<br />
4 years.<br />
She has extensive experience<br />
in brand health indicators and<br />
the analysis of the efficiency of<br />
communication, developed through<br />
delivering strategic advice to leading<br />
global brands in Europe and LatAm.<br />
Gabriel has more than 17 years<br />
of experience in the challenges<br />
both local and global brands face.<br />
Throughout his career he has worked<br />
extensively both in qualitative and<br />
quantitative research, specializing in<br />
brand building, trade research and<br />
communication strategies.<br />
Prior to joining Millward Brown,<br />
Gabriel held a variety of positions<br />
in areas such as research, brand<br />
management, trade management<br />
and corporate affairs.<br />
Gabriel has a degree in Economics<br />
and also a degree in Finance. His<br />
current position within Millward<br />
Brown is CEO for the Andean Region.<br />
Annetta has over 20 years of experience in<br />
the media industry. She began her career<br />
at Northcote Ogilvy & Mather Chile in 1987<br />
and in 1998 was transferred to New York<br />
City, where she worked as Regional Media<br />
Director for IBM Latin America.<br />
Three years later Annetta moved to<br />
Mindshare USA. In 2004, she returned<br />
to Chile to work for Initiative Santiago,<br />
becoming CEO in 2006. Then in January of<br />
2008, Annetta launched Brand Connection<br />
with the support of Initiative Group.<br />
Later that year, she became President<br />
of Initiative Latin America and Central<br />
America. Annetta launched Reprise<br />
(digital unit) with the support of IPG Group<br />
in 2009 and specialized digital Hubs.<br />
In 2011 she moved to MediaCom Santiago<br />
and in 2012 joined MEC Chile as CEO.<br />
Annetta has been recognized as one of<br />
the most important media professionals<br />
in Chile and Latin America, being selected<br />
to perform as a judge for the International<br />
Advertising Festival Cannes Lions in 2008,<br />
2012, the Effie Awards in 2009, 2014, the<br />
Chilean Advertising Festival in 2007, and<br />
FOMLA in 2013<br />
Sebastián has a degree in Business<br />
Management from the University<br />
of Buenos Aires and a postgraduate<br />
specialization in Marketing from<br />
University of San Andrés.<br />
He started his career at Millward<br />
Brown in 2002, initially as a Research<br />
Executive. He became Account Director<br />
in 2006, managing clients from different<br />
industries (FMCG, Financial services,<br />
Automobiles and Technology) both at a<br />
local and regional level. Between 2010<br />
and 2012 Sebastián developed and<br />
lead the Innovations area, introducing<br />
new research methodologies related to<br />
Neuroscience, Digital and Social Media.<br />
After two years in Consumer Insights at<br />
Mondelez International (Buenos Aires),<br />
Sebastián returned to Millward Brown to<br />
support and enhance analysis projects.<br />
Sebastián has done Management training<br />
courses in the US and UK; he speaks<br />
Spanish, English and Portuguese.<br />
Fidel is a Peruvian economist with more<br />
than 18 years of professional experience<br />
in market research, marketing and<br />
business consultancy. He studied and<br />
lived in Guadalajara, México for 5 years.<br />
Fidel has also worked as a Business<br />
Planning & Analytics Director in<br />
Mindshare Perú and Mindshare Argentina.<br />
He has worked as a teacher in many<br />
Universities and Educational institutes in<br />
Latin America.<br />
Renato graduated in Advertising from<br />
FAAP - Fundação Armando Álvares<br />
Penteado, in São Paulo.<br />
For more than ten years, he was part of the<br />
creative team of different agencies, working<br />
as a Copywriter and Creative Director.<br />
His experience encompassed campaigns<br />
for key brands, both Brazilian and global.<br />
Interested in the development of the<br />
strategic thinking of these brands, Renato<br />
made a change of direction to became a<br />
Strategic Planner. Today, he is part of the<br />
Planning Team at J. Walter Thompson São<br />
Paulo, Brazil, supporting the retail strategic<br />
team, among other clients.<br />
154 155
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONTRIBUTORS<br />
PEDRO EGEA<br />
President & CEO<br />
Grey, Mexico<br />
Pedro.Egea@grey.com<br />
JULIO FRESNO APARICIO<br />
Managing Director<br />
Millward Brown, Argentina<br />
Julio.Fresno@millwardbrown.com<br />
MARIANA FRESNO APARICIO<br />
Client Service Director<br />
Millward Brown, Argentina<br />
Mariana.Fresno@millwardbrown.com<br />
GONZALO FUENTES<br />
CEO<br />
Millward Brown, Latin America<br />
Gonzalo.Fuentes@millwardbrown.com<br />
VALKIRIA GARRÉ<br />
Managing Director<br />
Millward Brown, Brazil<br />
Valkiria.Garre@millwardbrown.com<br />
OLIVIA HERNÁNDEZ<br />
Client Service Director<br />
Millward Brown, Peru<br />
Olivia.Hernandez@millwardbrown.com<br />
Pedro Egea is the President and<br />
CEO of the advertising agency Grey<br />
Mexico. He was formerly responsible<br />
for strengthening Google in the Retail,<br />
E-commerce & Classified Ads sector in<br />
Mexico. He has also collaborated with<br />
national agencies such as Ferrer, and<br />
global ones such as EHS Brann/Havas,<br />
Ogilvy, Wunderman, and Y&R.<br />
Pedro holds a Bachelor’s degree in<br />
Marketing from the Instituto Tecnológico<br />
de Estudios Superiores de Monterrey.<br />
He has also studied business courses<br />
at the University of Pompeu Fabra in<br />
Barcelona and Södertörn Högskola in<br />
Sweden. Pedro also holds a Master’s<br />
degree in Business Administration for<br />
Experienced Executives from the Instituto<br />
Panamericano de Alta Dirección de<br />
Empresas.<br />
Julio is an accountant and a graduate of<br />
Buenos Aires University.<br />
He started his career as a marketing<br />
consultant almost four decades ago,<br />
working for multiple companies across<br />
several industries.<br />
In 1986, he founded ID Consultores, a<br />
company that became Millward Brown<br />
Argentina in 2006. Since then, he has<br />
been managing the local operation based<br />
in Buenos Aires.<br />
Julio is widely recognized as a pioneer<br />
in this industry. Currently, he holds the<br />
presidency of CEIM (Cámara Empresas de<br />
Investigación de Mercado de Argentina)<br />
and he is a member of the Academic<br />
Comitee at San Andrés University, where<br />
he manages the area of Market Research.<br />
Julio speaks at conferences, explaining<br />
the value of brands and sharing his<br />
experience on advertising effectiveness.<br />
He is also an active member of ESOMAR,<br />
SAIMO and AAM (Effie Awards).<br />
Mariana has a degree in Business<br />
Administration from Buenos Aires<br />
University.<br />
She joined Millward Brown Argentina in<br />
1996, initially in the Finance Department.<br />
Two years later, she moved to the Client<br />
Service Department, working as a research<br />
assistant on the Unilever account.<br />
In 2012, having gained extensive<br />
experience working on a wide range of<br />
consumer services and goods categories,<br />
and in developing client business at local<br />
and regional levels, Mariana became the<br />
Client Service Director.<br />
Gonzalo Fuentes has been the Chief<br />
Executive Officer for Millward Brown Latin<br />
America since April 2014. He is based in<br />
México City.<br />
A sociologist, Gonzalo is a 20-year<br />
research veteran and has led the rapid<br />
growth in Southeast Asia since 2005,<br />
increasing Millward Brown’s footprint<br />
by launching businesses in Indonesia,<br />
Malaysia, Vietnam, and, most recently,<br />
Myanmar. Previously, he was Managing<br />
Director of Millward Brown Singapore.<br />
Before joining Millward Brown, Gonzalo<br />
held senior roles at ERGO (acquired by<br />
Millward Brown in 2000) in Spain and<br />
Research International in London. His<br />
experience in emerging markets and his<br />
proven leadership skills, supported by a<br />
strong focus on clients and talent, allow<br />
him to make a significant impact on the<br />
LatAm and global businesses.<br />
Valkiria is a chemistry graduate and<br />
M.B.A. She started her career at Unilever,<br />
initially working in product development<br />
and later in market research.<br />
She has 20 years of experience in the<br />
industry, the last 17 gained working at<br />
Millward Brown Brazil. Her experience<br />
with clients includes a global packaged<br />
goods company, a market-leading<br />
soft drink producer and others in the<br />
telecommunications and bank services<br />
industry.<br />
Valkiria is a regular speaker on public<br />
platforms and at events in Brazil,<br />
especially at ABA (Association of Brazilian<br />
Advertisers) and ABEP (Association of<br />
Market Research Companies).<br />
Olivia holds a BSc in Actuarial Sciences<br />
from Instituto Tecnológico de México<br />
(ITAM) and an Applied Statistics<br />
Diploma and Management Skills Diploma,<br />
also from ITAM.<br />
She has over 20 years of experience in<br />
market research and in helping clients to<br />
build valuable brands and communication<br />
efficiency. Olivia joined Millward Brown,<br />
Mexico in 2005 and moved to the Peru<br />
office in 2014.<br />
156 157
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONTRIBUTORS<br />
DANIEL KARAM<br />
President & Managing Director<br />
H+K Strategies, Mexico<br />
Daniel.Karam@hkstrategies.com<br />
OSCAR LADINO<br />
Account Group Director<br />
Millward Brown, Colombia<br />
Oscar.Ladino@millwardbrown.com<br />
GABRIELA LIJO<br />
General Manager<br />
Lambie-Nairn, Mexico<br />
G.Lijo@lambie-nairn.com<br />
MAURICIO MARTÍNEZ VÁZQUEZ<br />
Managing Director<br />
Millward Brown, Chile<br />
Mauricio.Martinez@millwardbrown.com<br />
ROBERTO DE NAPOLI<br />
Director of Operations<br />
Millward Brown Vermeer, South America<br />
Roberto.Napoli@millwardbrown.com<br />
ALVARO MELÉNDEZ ORTIZ<br />
Planning Director<br />
Ogilvy & Mather, Colombia<br />
Alvaro.Melendez@ogilvy.com<br />
As President and Managing Director<br />
for H+K Mexico, Daniel directs strategic<br />
solutions for clients particularly in public<br />
affairs, corporate communications, crisis<br />
management, and social media. He also<br />
represents H+K Global Public Affairs<br />
practice in Latin America assisting global<br />
clients’ interests in the region.<br />
Daniel founded a consultancy firm<br />
specilalizing in lobbying, public affairs,<br />
policy strategy and conflict management<br />
for national companies. Prior to that<br />
he served as Managing Director of the<br />
Mexican Institute for Social Security,<br />
health and social security provider to<br />
50 million Mexicans. Before joining the<br />
public sector, Daniel was vice president<br />
of H+K Mexico overseeing the marketing<br />
and ITC communications practices.<br />
Daniel holds a Bachelor degree in<br />
Economics from ITAM and a Master’s<br />
in Public Administration from Harvard<br />
University’s John F. Kennedy School of<br />
Government. He is a board member of<br />
two private institutions.<br />
Oscar Ladino is a statistician who studied<br />
at the National University of Colombia.<br />
During his nineteen years’ experience in<br />
research marketing he has worked across<br />
many different categories, including: beer,<br />
press, FMCG, CPG, banks, automotive.<br />
Oscar joined Millward Brown in<br />
2006 and has worked extensively in<br />
quantitative research and product testing,<br />
communication, tracking, brand equity<br />
and prices studies.<br />
Oscar is a champion of the Brand<br />
Dynamics and Product Test methodology.<br />
He is also a supporter of training<br />
programs, especially in statistics and<br />
market research basics.<br />
Gabriela joined Lambie-Nairn’s Mexican<br />
team in 2014 and in March 2015 was<br />
appointed General Manager. Gabriela<br />
began her career at Lambie-Nairn in 2009<br />
as Account Director for the Telefónica<br />
account, coordinating both the Spanish<br />
and the Latin American markets..<br />
She has thirteen years’ experience in the<br />
brand and design sectors. She previously<br />
worked for JC Decaux, in New York, and<br />
Summa y Addison, in Madrid. Throughout<br />
her career, she has worked and led projects<br />
for key clients in Europe, Latin America<br />
and Asia, such as CAM, Coca-Cola, CIMB<br />
Bank of Malaysia, Telecinco, Heineken,<br />
Laboratorios Puig, and Isdin.<br />
Mauricio holds a degree in Business<br />
Administration and Marketing from the<br />
Universidad Panamericana. He has over<br />
17 years of research experience and as<br />
a consultant for many local, regional<br />
and global brands in different industries.<br />
Before his arrival in Chile, he was head<br />
of Client Service and Client Solutions at<br />
Millward Brown Mexico.<br />
Roberto holds a BA in Economics from<br />
Mackenzie and has a post-graduate<br />
degree in Financial Administration from<br />
FAAP. He has more than 30 years of<br />
professional experience in controlling<br />
and planning in companies such as<br />
Inbrac, Ibrame, Trevisan Consultants<br />
and Interbrand. With Millward Brown<br />
Vermeer since its foundation, Roberto is<br />
responsible for brand valuation projects<br />
and for the Brazilian Most Valuable<br />
Brands Ranking 2006-2015.<br />
Before joining Ogilvy & Mather in 2009,<br />
Alvaro spent 8 years in different fields in<br />
the marketing and advertising industries.<br />
A communication design graduate from<br />
Germany’s Darmstadt Universität, he has<br />
experience in several agencies in markets<br />
in Europe, Mexico, Central America and<br />
South America working side by side with<br />
brands on categories that span from luxury<br />
to pharmaceutics and retail, collaborations<br />
that resulted in several awards.<br />
Alvaro’s passion for strategic planning and<br />
market intelligence led him to his current<br />
position as Director of Planning at Ogilvy<br />
& Mather, a role he held first in Costa Rica<br />
and then in Colombia.<br />
158 159
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONTRIBUTORS<br />
MARCELA PÉREZ DE ARCE<br />
Client Service Director<br />
Millward Brown, Chile<br />
Marcela.PerezdeArce@millwardbrown.com<br />
DAVID ROTH<br />
CEO<br />
The Store WPP EMEA and Asia<br />
David.Roth@wpp.com<br />
EDUARDO VELASCO MAXIMILIANO<br />
Managing Director<br />
MEC, Peru<br />
Eduardo.Velasco@mecglobal.com<br />
DOREEN WANG<br />
Global Head of BrandZ<br />
Millward Brown<br />
Doreen.Wang@millwardbrown.com<br />
JEANETTE YAÑEZ PAJUELO<br />
Account Group Director<br />
Millward Brown, Peru<br />
Jeanette.Yanez@millwardbrown.com<br />
Marcela is a sociologist by training,<br />
having graduated from Universidad de<br />
Chile. Before joining Millward Brown,<br />
Marcela spent five years in FLACSO, a<br />
Latin American organization for social<br />
research. After that, she became a market<br />
researcher for a variety of companies<br />
including Gallup and TNS. She joined<br />
Millward Brown in 2001, as a quantitative<br />
research executive. In 2009 she became<br />
the Quantitative Client Service Director<br />
and, in 2014 the Chilean Client Service<br />
Director.<br />
Marcela’s experience spans a range of<br />
industries and clients, including the<br />
Falabella Group, Nestlé, Entel, CMPC,<br />
Unilever, Coca-Cola and Telefónica.<br />
David started his career at the House of<br />
Commons working for a member of the<br />
UK Parliament. He swapped politics for<br />
the cut and thrust of advertising. Joining<br />
Bates Dorland, he became main board<br />
director for strategy and Managing<br />
Director of the consulting and digital<br />
divisions. David was the CEO of the<br />
worldwide retail and technology centre<br />
of excellence.<br />
David joined Kingfisher’s B&Q plc, one<br />
of Europe’s largest retailers sitting on<br />
the main board of directors as UK and<br />
International Marketing Director.<br />
David is now at WPP as the CEO of The<br />
Store, EMEA and Asia, the WPP Global<br />
Retail Practice. David also leads WPP<br />
BrandZ, the world’s largest brand<br />
equity study.<br />
David is a non executive director of<br />
NGO, TFT, an organisation dedicated<br />
to sustainable production and on the<br />
board of The Judge Business School,<br />
Cambridge, Centre for International<br />
Business and Management.<br />
Eduardo holds a Bachelor’s degree in<br />
Business Administration from the<br />
Pontificia Universidad Católica del Perú, a<br />
Diploma in marketing from ESAN, and an<br />
MBA from Florida International University.<br />
He has more than 20 years of experience<br />
in advertising and marketing both on the<br />
client and agency side.<br />
Eduardo started his career at J. Walter<br />
Thompson’s Media practice, and spent<br />
seven years with Bellsouth Peru. He was<br />
with the company from its launch in<br />
the country and acted as a director and<br />
coordinator for the region in Havas Media<br />
from Miami and Peru. He arrived at MEC<br />
in 2009 as Managing Director, doubling<br />
the business in 3 years and positioning<br />
MEC as one of the Top 5 agencies for the<br />
country in 2014.<br />
Doreen Wang, a seasoned executive with extensive<br />
experience in providing outstanding branding research<br />
and strategic consultancy services for senior executives<br />
in Fortune 500 companies in both the US and China.<br />
Doreen currently leads the BrandZ global and regional<br />
research and valuation engagements, and all the<br />
marketing initiatives of the BrandZ Global Top 100<br />
Most Valuable Brands, China Top 100, Latin America Top<br />
50, Indonesia Top50 and Indian Top 50.<br />
In Millward Brown, Doreen plays a leading role in<br />
providing branding consultancy services for a diverse<br />
client portfolio of top global and local companies.<br />
She is often invited as the plenary lecture speaker on<br />
prestigious forums including UK House of Commons,<br />
Bloomberg News, CNN, Wall Street Journal and<br />
Cambridge Judge Business School. Doreen translated<br />
the book Grow by ex-P&G Global CMO Jim Stengel into<br />
Chinese and wrote the chapter of “Brand Ideal in China”.<br />
Doreen received her MPA. degree in Marketing<br />
from University of Delaware and her MS degree in<br />
Econometrics from Tianjin University.<br />
Jeanette has a degree in Social<br />
Communication from the University<br />
of Lima, specializing in Marketing,<br />
Advertising and Journalism. She also<br />
holds a Master’s in Marketing from<br />
Centrum – Pontificia Universidad Católica<br />
del Perú. She has more than eight years of<br />
experience in marketing research.<br />
Jeanette started her career in 2007 at<br />
Arellano Marketing, managing different<br />
FMCG and telecommunication accounts.<br />
In 2014, she became Account Group<br />
Director at Millward Brown Peru.<br />
160 161
RESOURCES<br />
CONTRIBUTORS<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
CONTRIBUTORS<br />
BRANDZ TM TOP 50<br />
LATIN AMERICAN TEAM<br />
Maura Coracini<br />
Jimena Franco<br />
Monica Garcia<br />
AURORA YASUDA<br />
Knowledge Management<br />
Millward Brown, Brazil<br />
Aurora.Yasuda@millwardbrown.com<br />
MAURICIO YURASZECK<br />
Client Service Director<br />
Firefly Millward Brown<br />
Mauricio.Yuraszeck@fireflymb.com<br />
Maura Coracini is the Regional MarComs<br />
Coordinator for LatAm. She helps in the<br />
project management of the BrandZLatAm<br />
report and is responsible for coordinating<br />
marketing and communications of the<br />
ranking in the region.<br />
Jimena Franco is an Account Researcher at<br />
Millward Brown Mexico and involved in the<br />
overall project management for BrandZ TM Top<br />
50 Most Valuable Latin American Brands.<br />
Monica is VP of the Millward Brown Mexico<br />
Client Service team with special responsibility<br />
for the digital division in addition to those<br />
of neuroscience, marketing sciences and<br />
product development. Monica is responsible<br />
for local PR activities for BrandZ TM Top 50<br />
Most Valuable Latin American Brands.<br />
Aurora Yasuda is a graduate in Social Sciences,<br />
at the Universidade de São Paulo – USP, and has<br />
worked in the market research industry for more<br />
than 40 years.<br />
In 1991, she began discussions with Millward<br />
Brown to bring the business to Brazil as a<br />
licensee. In 2000, she led the process to establish<br />
the Millward Brown division as an independent<br />
company from IBOPE, and acted as VP of Client<br />
Service from the beginning until 2010.<br />
Aurora is also a coordinator and teacher of<br />
Marketing Intelligence Management post<br />
graduation from ESPM and IBOPE, and President<br />
and member of Market Research Self-Regulatory<br />
Committee. She has also published a book<br />
“Pesquisa de Mercado- um guia para a prática<br />
da pesquisa de Mercado” and a guide “Market<br />
research for Branding” edited by ABA.<br />
She is an active presence at congress and<br />
seminars from ESOMAR, ABEP and ABA as a<br />
speaker, and sits on program committees and<br />
award panels.<br />
Mauricio has worked in the marketing<br />
consulting industry since 1995, focusing<br />
on advertising and communication<br />
research as well as brand building.<br />
From 1998 to 2009, he was Manager at<br />
Cadem Advertising (Millward Brown’s<br />
licensee in Chile at the time) adapting<br />
and developing methodologies and<br />
processes for the country.<br />
In March 2010, Mauricio became CEO<br />
of Estudios Ibope Inteligencia Chile. In<br />
2012 he became the manager of B20, a<br />
branding agency. In March 2015, he rejoined<br />
Millward Brown as Client Service<br />
Director for Firefly Millward Brown.<br />
Eduardo Gomes<br />
Eduardo Gomes is the Regional Production<br />
Coordinator for LatAm. He assists with the<br />
design and production of marketing and<br />
communication assets.<br />
Felipe Ramirez<br />
Felipe is the Marketing and Communications<br />
Regional Director at Millward Brown Latin<br />
America. He is in charge of all marketing<br />
campaigns throughout the region and closely<br />
involved in BrandZ TM .<br />
Roberto Rojas<br />
Roberto Rojas is a Consultant at Millward<br />
Brown Vermeer and part of the team involved<br />
in the development of contents and the<br />
overall project management for BrandZ TM Top<br />
50 Most Valuable Latin American Brands and<br />
its country rankings.<br />
Eduardo Tomiya<br />
Eduardo Tomiya is the Managing Director of Millward Brown Vermeer São Paulo<br />
(ex BrandAnalytics, of which Eduardo was the founder). He runs projects of brand<br />
valuation and brand strategy for companies such as Bradesco, Petrobras, Vale,<br />
Santander, Fiat and O Boticário. He also teaches postgraduate courses on branding.<br />
With special thanks and<br />
appreciation to:<br />
Wordscout - Tamsin Grant<br />
Kay Blewett<br />
162 163
RESOURCES<br />
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015<br />
THE BRANDZ TM<br />
BRAND VALUATION<br />
CONTACT DETAILS<br />
in Latin America<br />
We help build valuable brands<br />
The brand valuations in the BrandZ Top 50 Most<br />
Valuable Latin American Brands are produced by<br />
Millward Brown using market data from Kantar<br />
Worldpanel, along with Bloomberg.<br />
The consumer viewpoint is derived from the BrandZ database. Established<br />
in 1998 and constantly updated, this database of brand analytics and equity<br />
is the world’s largest, containing over three million consumer interviews about<br />
more than 100,000 different brands in over 50 markets.<br />
For further information about BrandZ<br />
contact any WPP Group company or:<br />
DOREEN WANG<br />
Global Head of BrandZ<br />
Millward Brown<br />
+1 212 548 7231<br />
Doreen.Wang@millwardbrown.com<br />
MARTIN GUERRIERIA<br />
Global BrandZ Research Director<br />
Millward Brown<br />
+44 (0) 207 126 5073<br />
Martin.Guerrieria@millwardbrown.com<br />
Our WPP companies have been engaged in Latin<br />
America for nearly 100 years. Today, over 20,000<br />
WPP professionals work across the region.<br />
They provide the advertising, marketing, insight,<br />
media, digital, retail, shopper marketing, PR,<br />
knowledge, insight, and implementation necessary<br />
to understand Latin America and build and sustain<br />
brand value. To learn more about how to apply this<br />
expertise to benefit your brand, please contact any<br />
of the WPP companies that contributed to this<br />
report or contact:<br />
ANN NEWMAN<br />
Country Head<br />
WPP Latin America<br />
Ann.Newman@wpp.com<br />
For further information about WPP companies<br />
worldwide, please visit:<br />
www.wpp.com/wpp/companies<br />
or contact:<br />
David Roth<br />
CEO The Store, WPP EMEA and Asia<br />
David.Roth@wpp.com<br />
ELSPETH CHEUNG<br />
Global BrandZ Valuation Director<br />
Millward Brown<br />
+44 (0) 207 126 5174<br />
Elspeth.Cheung@millwardbrown.com<br />
www.brandz.com<br />
BLOOMBERG<br />
The Bloomberg Professional service is the source of real-time and historical financial news and<br />
information for central banks, investment institutions, commercial banks, government offices<br />
and agencies, law firms, corporations and news organizations in over 150 countries. (For more<br />
information, please visit www.bloomberg.com)<br />
WPP is the world’s largest communications services group with billings of US$76 billion<br />
and revenues of US$19 billion. Through its operating companies, the Group provides a<br />
comprehensive range of advertising and marketing services including advertising & media<br />
investment management; data investment management; public relations & public affairs;<br />
branding & identity; healthcare communications; direct, digital, promotion & relationship<br />
marketing and specialist communications. The company employs over 188,000 people<br />
(including associates and investments) in over 3,000 offices across 112 countries.<br />
WPP was named Holding Company of the Year at the 2015 Cannes Lions International<br />
Festival of Creativity for the fifth year running. WPP was also named, for the fourth<br />
consecutive year, the World’s Most Effective Holding Company in the 2015 Effie<br />
Effectiveness Index, which recognizes the effectiveness of marketing communications.<br />
For more information, visit www.wpp.com<br />
164 165
Powered by<br />
www.brandz.com