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BrandZ_2015_LATAM_Top50_Report
BrandZ_2015_LATAM_Top50_Report
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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 />
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