+2%

CHILE
THOUGHT LEADERSHIP
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015
MAKING
PROGRESS ON A
SLOWER ROAD
MAURICIO MARTÍNEZ VÁZQUEZ
Managing Director
Millward Brown, Chile
Mauricio.Martinez@millwardbrown.com
The economic slowdown experienced
by Chile from mid-2014 has resulted
in more cautious consumers. In an
environment full of turbulence and
mistrust, they are more concerned than
ever about making the best decisions.
The question that arises is: What do
the most valuable brands in Chile do to
ride out this atmosphere of distrust and
extreme caution and thus remain leaders
in the market where they compete?
The information we collect from BrandZ
provides interesting answers as to the
elements these brands share and what
they represent to consumers, allowing us to
see their implications for the participating
businesses.
STAYING IN VIEW
First, it is clear that their marketing teams
focus on achieving excellent visibility for
brands and a high level of engagement with
consumers, which enable them to stand
out. This is especially important because,
in times of slowdown and mistrust, people
search for safe options, and these highly
popular and salient brands represent their
best purchase choice.
But that is not all. The most valuable brands
in Chile show a clear balance between
benefits and price. They are brands willing
to keep refining those benefits – usually,
key qualities consumers want to receive –
so they do not need to reduce prices, for
they are perceived as brands whose value is
justified.
Although the most valuable brands have
a long-lasting history in the market, they
also manage to remain relevant because
they understand consumers’ dynamics
and expectations. Thus, they dare to take
new paths, keeping Chileans attentive and
enthusiastic about the road taken.
Consumers’ expressed wish to visit, hire
or purchase a product or service is often
diminished in times of economic difficulties.
However, the most valuable brands take the
opportunity to display a more accessible
face to these consumers, in terms of their
portfolio management, the development
of new formats, new sales channels and
service centers, or new sizes or varieties.
Consequently, most of these brands protect
their volume significantly by preserving their
margins. This perspective is contrary to the
one adopted by brands that choose to work
almost exclusively with the price variable, by
either discounts or promotions. In addition
to sacrificing their margin, they will find it
harder to justify any future increase.
Great brands face the challenge of
transcending and consolidating themselves
in new markets, replicating their meaning
but also presenting themselves as different
and avant-garde. With the path to success
in Chile having become slippery and even
dangerous, moving ahead quickly requires
new scenarios if brands are to utilize their
full power.
74 75