Here - Millward Brown

Transcription

2
BrandZ™ Top 50 Most Valuable Latin American Brands 2013
3
overview
Latin America
Eduardo Tomiya
Managing Director, South America
Eduardo Tomiya
Managing Director, South America
André Galiano
Director, South America - BrandAnalytics
In recent years, a slowdown in Latin American
economic growth has been seen in countries
such as Brazil, Mexico and Argentina; Chile,
Colombia and Peru have enjoyed relatively
stable growth, yet still experienced a slight
decrease. Although personal consumption
has risen in most countries – as a result of
increased credit and employment rates –
several other factors have contributed to this
slowdown.
The global crisis is one of these factors; a
combination of the European recession,
decrease in demand (mainly from China), a
slow recovery by the United States and lower
export prices – all of which have contributed
to the instability of financial markets. And
there are other important issues, like the
region’s increasing current account deficit,
the difficulty of accessing formal employment
and the differences among the peoples’ civil
and political rights. This last issue is illustrated
by the Social Inclusion index developed by
Americas Quarterly Organization, where
social inclusion consists of an institutional,
social-political and attitudinal environment
that goes beyond economy, poverty and
inequality reduction. The index analyzes 15
indicators, such as GDP growth, investment
in social programs, political and civil rights,
and financial inclusion and ranks each of
the 11 countries relative to each other (1 -11);
these scores are then converted into a scale
of 1 -100. For the countries that feature in
this report, the Social Inclusion Index scores
BrandZ™ Top 50
Most Valuable
Latin American
Brands 2013
André Galiano
Director, South America - BrandAnalytics
are: Chile 68.4, Brazil 53.5, Colombia 48.4,
Mexico 45.2 and Peru 27.9. Just to compare,
the United States score is 64.6. (The index
doesn’t include Argentina.)
However, there were gains and growth
in some Latin American countries, both
in macroeconomic policy and in civil and
political rights. In Brazil and Chile, high levels
of social mobilization put a lot of pressure on
the government to pay more attention to
social issues.
The best example of this social mobilization
came in this summer’s protests in Brazil, seen
all over the world. The first big demonstration,
held simultaneously in various Brazilian cities,
was a response to an increase of R$0.20 in
bus fares. Widespread, organized and spread
via the Internet, these demonstrations
forced Governors and Mayors to give a swift
response to the Brazilian people. A week later,
all fares were returned to the previous prices.
Other demands followed this first challenge,
namely improvements to health, education,
security and the fight against corruption. The
giant had awakened.
Yet, despite such bold changes, some Latin
American countries are still experiencing very
strong political interventionism – Venezuela,
Argentina, Ecuador and Bolivia, for example.
A sharp reminder of just how complex and
diverse Latin America’s development is and
will continue to be.
The headline news
Despite the global crisis and other factors that
have negatively impacted upon the Latin American
economy (such as inflation, exchange rates, and a
fall in commodity prices), in 2013 the total value of
brands in the BrandZ TM Top 50 Most Valuable Latin
American Brand Ranking 2013 added up to US$ 135.3
billion, not far off 2012’s value of US$ 135.7 billion.
This relatively sustained value shows the strength
and resilience of leading Latin American brands.
Change at the top
The most important change seen in the BrandZ TM
Latam Top 50 ranking was the segment shift in the
number one spot. Last year, the oil sector headed
the list; this year we see a beer brand at the top,
Corona. Its success is not isolated, several beer,
bakery, food & personal care brands have increased
their value and in fact, there are three brands from
the category in the Top 10, all of them beers –
significantly changing the face of the ranking.
In 2012, Petrobras, the Brazilian oil company owned
by the government, held the number one spot. This
suffered a big drop in brand value (from US$ 10.6
billion in 2012 to US$ 5.8 billion in 2013, a decrease of
45%) mainly due to devaluation of the commodity in
the international markets – which also affected other
companies in the oil & mining sectors.
The top 5 positions in 2012 comprised the B2B,
services and financial segments; in 2013, the top
positions are dominated by beer, bakery, food &
personal care, services and B2B, followed closely
by retail.
A good year for beer
The most valuable brand this year is the abovementioned Mexican beer Corona (US$ 6.6 billion)
with a 29% growth – a brand that enjoys a solid
positioning and is highly regarded by consumers,
not only in Mexico, but also overseas.
The runner-up in the BrandZ TM Latam Top 50 2013
ranking is another Mexican brand: Telcel. Its brand
value adds up to US$ 6.6 billion, a 22% decrease
when compared to 2012. Like Telcel, quite a few
brands have lost value this year but other brands
in the alcoholic beverages segments compensate
for that loss: Skol, Brahma, Antarctica and Bohemia
(Brazilian beers) have all significantly increased
their brand value. Modelo, another Mexican beer
brand, has also improved considerably.
Newcomers and
growing segments
In the beer sub-segment Águila and Poker
(Colombia), and Crystal (Peru) make their debut
in the BrandZ TM Latam Top 50. Financial is another
segment which saw three new entrants: BCP,
Interbank (both Peru), and Banorte (Mexico). Retail
also welcomed a newcomer, Soriana (Mexico).
Other segments such as bakery, cement, food, retail
and cosmetics also performed positively, growing by
49%, 36%, 35%, 13% and 12%, respectively.
4
#
Brand
Brand Value
(US$ Mil.)
2012
1
2
3
2013
4,698 6,520
10
11
12
13
3
-22%
4
39%
Beer
5,263
9
29%
Communication Provider
5
8
4
8,449 6,577
10,560 5,762
7
Brand
Value
Change
2012-2013
Beer
4
6
Brand
Contribution
Index
5,114 6,620
1
-45%
Energy
5,611
4
7%
Retail
6,690 5,492
2
-18%
Financial Institution
4,240 5,137
1
21%
Energy
4,336 4,454
1
6,606 4,006
2
3%
*
-39%
-
3,903
5
N/A
Beer
2,359 3,803
4
61%
Beer
3,307 3,707
4
12%
Cosmetics
3,109 3,632
5
3
17%
#
Brand
Brand Value
(US$ Mil.)
2012
2013
14
3,318 3,537
15
2,585
16
17
18
19
20
21
22
23
24
25
26
Brand
Contribution
Index
Brand
Value
Change
2012-2013
5
7%
Retail
3,281
2
27%
Communication Providers
3,964 3,274
4
-17%
Airline
2,815 3,204
4
14%
Energy
3,465 3,009
4
-13%
2,511
2,992
2
19%
Retail
1,995
2,976
3
49%
Bakery
2,656 2,768
2
4%
-
2,487
4
N/A
Beer
2,842 2,466
3
-13%
1,244
2,301
4
85%
Beer
2,414 2,094
3
-13%
1,352
2,091
1
55%
#
Brand
Brand Value
(US$ Mil.)
2012
27
28
29
30
31
32
33
34
35
36
37
38
39
2013
Brand
Contribution
Index
Brand
Value
Change
2012-2013
3
79%
1,156 2,066
Retail
1,494 2,034
1
36%
Cement
1,496
1,993
2
33%
Food
1,980
1,932
4
-2%
Retail
-
1,636
2
N/A
1,398
1,578
2
13%
Retail
-
1,567
2
N/A
1,699
1,558
4
-8%
Retail
1,834
1,465
2
-20%
Retail
4,574 1,427
2
-69%
-
1,401
5
N/A
Beer
1,168
1,286
3
10%
1,284
3
51%
#
Argentina
Brand
Beer
Mexico
Peru
Brand
Value
Change
2012-2013
4
2%
1,272
2
-59%
1,248
4
-8%
1,190
3
7%
1,187
2
N/A
1,095
2
N/A
1,046
2
37%
1,036
2
33%
1,010
5
45%
1,009
1
-41%
992
3
-13%
1,281
3,074
41
Energy
1,361
42
Retail
1,116
43
Retail
-
44
Retail
-
45
762
46
Retail
778
47
Food
697
48
Beer
1,708
49
Mining
1,143
50
*Claro is based in Mexico but has no operations there.
Source:
Colombia
Brand
Contribution
Index
2013
1,251
40
Chile
Brand Value
(US$ Mil.)
2012
Retail
851
Brazil
BrandAnalytics and
6
LATIN AMERICA
Value Distribution
by Country
Latin American Brand Value
% Contribution By Country
2012
Colombia 16%
Latam 3%
Mexican brands grew from 24% to 29% in
their overall contribution to the value of the
BrandZ TM Latam Top 50. Despite the decline
of Telcel the increase in value was led by the
beer brands, and banking and retail sectors
also performed positively. The decrease in the
brand values in the communications segment
can predominantly be explained by a drop
in some companies’ market value, leaving
investors insecure.
Argentina still shows signs of uncertainty.
The combined value of its brands dropped
considerably and now the country makes up
only 1% of the value of the BrandZ TM Latam
Top 50 (from a more representative 3% the
previous year). The poor performance in the oil
industry (the Argentinean main driver of value)
is responsible for most of this decline.
Colombia 17%
Latam 3%
Peru 3%
Argentina 3%
Argentina 1%
Brazil 34%
Brazil 28%
The BrandZTM Top 50 Most Valuable Latin American
Brand Ranking 2013 reveals an interesting shift as far
as each country contribution is concerned: Mexico
overtakes Brazil in value terms with a 29% share, and is
now the main contributor. Brazil fell to second position,
dropping from 34% to 28% of the total contribution.
Petrobras’ dramatic devaluation in the capital
markets and resulting drop in brand value (by
45%) was a significant factor in Brazil’s lower
ranking in the BrandZ TM Latam Top 50, but so
too was the crisis in the country’s financial
segment. In order to stimulate consumption
and companies’ investments, the government
lowered the basic interest rate and pressured
public and private banks to reduce the cost
of loans and consequently their spread (the
difference between what financial institutions
receive in interest compared to what is given
back to investors). All banks had to adhere to
this policy in order to maintain competitiveness,
and the scenario led to lower incomes.
2013
Mexico 24%
Chile 20%
Country
contribution
% change
2012-2013
Mexico 29%
Chile 19%
Brazil -17%
2012
Mexico 22%
Chile -8%
Chile and Colombia in effect maintained their
contributions to the total BrandZ TM Latam Top
50. It’s worth noting that, despite having a
much smaller economy compared to Colombia
and Argentina, Chile holds third place in total
contribution, which clearly shows the power
of some of its well-positioned brands (such as
Falabella), helped by the fact that Chile is now
considered the most globalized country in the
region, having established visa agreements
with the United States and trade agreements
with over 50 other countries.
Colombia 3%
Latam 3%
Peru N/A
Argentina -66%
-
Source:
BrandAnalytics
+
7
8
LATIN AMERICA
Brand Value By Industry Sector
2012
Performance by
Industry Sector
2013
Beer, Bakery, Food & Personal Care 17%
B2B 13%
Beer, Bakery, Food &
Personal Care 29%
Financial Institutions 24%
Financial
Institutions 23%
Retail 20%
Services 22%
B2B 18%
Retail 19%
Services 15%
Industry Sector Brand Value % Change
Brand Value ($M)
73% Beer, Bakery, Food & Personal Care
39,040
5% Retail
26,696
Beer, Bakery, Food & Personal Care
-8% Financial Institutions
30,788
This is the leading segment in value contribution in the BrandZ TM Top 50 Most
Valuable Latin American Brand Ranking 2013, with a strong increase of 73%. Within
this category, beer is the main sub-segment, representing 76%, with growth driven
by Mexican and Brazilian beer (the Brazilian beer brand Brahma had the strongest
growth in the region, 61%).
-25% B2B
The success of the beer sub-segment is driven by the capital markets’ financial
performance of the organizations that own the brands, such as Anheuser Busch,
SABMiller, Grupo Modelo and CCU, which has been sustained by the beer brands’
positioning and equities. However, the strong performance is a direct result not
only of proper management, but also an increase in consumption and of brand
contribution.
B2B (energy/oil, mining & cement)
18,418
-31% Services
20,354
Source:
+
BrandAnalytics
Comparison With Other BrandZTM Brand Rankings
In the BrandZ TM Top 100 Most Valuable Brands Global Ranking, technology is the leading category,
whereas in the BrandZ TM Top 50 Most Valuable Chinese Brands, the service category leads.
Category
Latam
Brazil
Mexico
Chile
Colombia
Peru
Technology
B2B
0%
13%
0%
14%
0%
5%
0%
13%
0%
22%
0%
48%
0%
48%
15%
8%
25%
12%
Beer, Bakery, Food
& Personal Care
29%
39%
30%
3%
28%
22%
22%
10%
20%
Financial
Institutions
23%
24%
9%
16%
42%
5%
5%
42%
16%
The biggest category fall, at 31%. Dominated by communication providers, Telcel
(Mexico), this – the first brand in the ranking for this sector – saw a decrease of 22%.
Retail
FINANCIAL INSTITUTIONS (Banks & Insurances)
Others
20%
15%
0%
10%
13%
0%
25%
31%
0%
57%
11%
0%
6%
2%
0%
0%
25%
0%
0%
25%
0%
2%
23%
0%
7%
13%
7%
This category showed a decrease of 25%. The drop was predominantly seen across
Petrobras, YPF and Vale, due to falls in the commodity’s value and exchange rate.
RETAIL
This category saw an increase of 5%. Falabella and Sodimac (Chile) represent 39%
of the category and saw 7% growth. Liverpool (Mexico), the fourth in the category,
had the highest growth (79%).
SERVICES (Communication Providers & Airlines)
A fall of 8%, the biggest drop being seen in Brazilian and Colombian banks. Despite
this decrease, financial institutions still account for 23% of the total value.
Services
Source:
BrandAnalytics and
Argentina China* Global**
*BrandZTM Top 50 Most Valuable Chinese Brands 2013
**BrandZTM Top 100 Most Valuable Global Brands 2013
9
The economic
rollercoaster
ride continues
11
Isa Telles
BrandAnalytics Associate
of a social development fund. However, the adoption
of some policies has led to serious consequences
(including inflation, disparity in exchange rates,
restrictions on dollar purchase, energy import increase
and restrictions on manufactured import) and this has
generated market tension.
Argentina’s economy is trying to catch its breath and regain
the growth that was in part lost by a drop in agricultural
production, low global demand for its manufactured
exports, and by an energy deficit. Latin America’s third
economy, Argentina grew 8.9% in 2011, with a positive
CAGR of 5.1% over the past four years. But it had a
significant downturn in 2012, with a growth rate of only
1.9% - a reflection of high inflation and the negative impact
that exchange and trade controls had on investments.
In 2013, the government has promised to regain growth
through a policy of expansion, announcing a 4.9% growth
for the August forecast (a record automobile production
and a harvest increase will help this recovery).
The country still faces social dissatisfaction and some
persistent structural challenges such as high levels of
corruption, a high rate of unemployment, and the need
for better health services and education. The current
trajectory encompasses some important considerations,
such as the reduction of transactions with partnering
countries (e.g. Brazil), prohibition of outward remittance,
inflationary pressures, demands for more investments
in energy, concerns over bad management of public
finances, and the return to protectionism in order to
strengthen local industries. Last year, the government
declared YPF as being of ‘national public interest’ and
expropriated 51% of the shares of the Spanish oil company
Repsol. While the partnership between YPF and Chevron
remains in a letter of intent, changes are still required to
the country’s energy policy.
Over the past thirty years, the country has suffered from
several attempts to recover its economy: nationalization
of industries and social reforms, followed by a privatization
program, the linking of its peso to the dollar, and freezing
of personal property. The country regained growth
after 2003 by fighting corruption, and through debt
repayment and development sustainability. Currently,
there are positive points in Argentina’s economy, such
as growth in the industry sections and the creation
argentina key facts
ARGENTINA
Capital City Buenos Aires
Currency Argentine New Peso
Area 2.78 million km2
Population (thousands) 41,072 (2012)
Population growth rate (annual) 0.8% (2010-2015)
Life expectancy 76.01 years (2012)
Literacy rate of 15-24 year olds 99.2% (2010)
Unemployment rate 7.2% (2011)
7.3% (2012)
Carlos Dadoorian, BrandAnalytics Consultant
Annual GDP at current prices
Total at current prices (millions)US$477,028 (2012)
GDP per capita (annual) US$11,614 (2012)
Growth rate 1.9% (2012)
Country’s share in regional GDP 8.4 % (2012)
CAGR (last four years) 5.1%
Foreign direct investment (millions) US$7,183 (2011)
US$6,401 (2012)
12
Argentinean Brand Value
argentina
Roberto de Napoli
Argentinean brands have experienced a very big drop in the BrandZ™ Top
50 Most Valuable Latin American Brand Ranking 2013, losing almost half
of their value (43%) with a fall from US$4.7 billion to a mere US$2.7 billion.
Rising tides:
consumption
and inflation
2012
Beer 7%
2013
Energy 66%
Communication Providers 23%
Beer 22%
Energy 48%
Argentinean Brand Value % Change by Sector
-28% Energy
9% Communication Providers
206% Beer
Mr. Martín Schijvarg
Millward Brown, Argentina
34% Financial Institutions
In recent years, Argentina has managed to sustain the growth of its
economic activity. Characterized by strong consumption there are certain
industries, such as the automotive and technological (LED TVs, mobile
phones and other appliances) that have performed particularly well.
Compared to the global context of economic
stagnation in the United States and in several
European countries, Argentina has managed
to maintain employment rates and the social
development funds designed to improve
them, including the ‘Plan Trabajar’, ‘Jefes y Jefas
de Hogar’ and the ‘Universal Child Allowance’.
An important feature of the Argentinean
economy and approach to employment
in various sectors remains collective
bargaining (for example over workers’ pay
and conditions). In many cases, this has
created agreements at – or even higher
than – the inflation rate, which has exceeded
20% annually over the past five years. (Note
that the gap between this figure and INDEC
officiala figures of 10% annual inflation is very
pronounced). The government has tried to
address the sustained increase in the cost
of living by controlling prices, with varying
results depending on the type of goods.
Higher consumption levels have forced
Argentina to import more and more energy
and gas to meet the growing demand. This
has generated strong growth in imports and
in order to strike a positive trade balance,
the government has restricted imports
of many products. Earlier this year it also
announced that the tax on credit and debit
card purchases made abroad would rise
from 15% to 20%.
overall brand value
change 2012-2013
-43%
Another issue the government has been
tackling is the capital leakage caused by the
flight to the dollar (a common Argentine
response to economic uncertainty). Since
2011, the purchasing of dollars has been
restricted to certain commercial activities,
leading to a 50% increase of the parallel
dollar rate (also know as the ‘blue dollar’)
this year. This has severely damaged the
construction industry in particular, since
properties are quoted in dollars and currency
disparity between the official and parallel
market creates tension, as some sellers want
to reap dollars from the sale and buyers face
difficulty in obtaining them.
+
Source:
BrandAnalytics
13
14
argentina
BrandZ
Top 5 Most Valuable
Argentine Brands 2013
TM
#
Brand
Brand Value
(US$ Mil.)
2012
1
3,074
2
334
1,272
2
Brand
Value
Change
2012-2013
-59%
Energy
583
5
75%
Beer
681
3
423
3
-38%
4
390
5
188
Source:
2013
Brand
Contribution
Index
242
3
-38%
143
3
-24%
BrandAnalytics and
Argentina’s most
valuable brand
YPF (Yacimientos Petrolíferos Fiscales) is still the
most valuable Argentinean brand, driven by
its tradition, strong presence (key in a country
with extensive geography) and the emotional
attachment derived from the fact that the
brand represents Argentina’s largest company
– there is a sense of national pride associated
with its name. Its brand value has, however,
decreased dramatically to US$ 1.3 billion (a 59%
drop) but this is not related as much to brand
performance as it is to financial matters and,
despite this fall, YPF maintains its place at the
top of the Argentinean brand ranking.
Part of the reason for the fall in value can be
seen as a reaction to the nationalization of the
company: 51% of its shares belonged to the
Spanish company Repsol until its expropriation
by the government in April 2012. With a work
model based on the principles of ethics and
transparency, quality and security and caring
for the environment, the company seeks to
lead the way in generating energy for the
entire country and is driving growth in a bid
to see the nation achieve self-sufficiency.
Recently, the company agreed a deal with
Chevron to explore 20km2 of the geological
site of the ´Vaca Muerta´, the third largest
reservoir of its type in the world. According
to the government, YPF will be the only
company given the rights to lead the project,
its administrative investments, and its future
commercial exploits for the next 35 years.
Argentina and
the digital
r/evolution
Pablo Lesulauro
CEO, Mindshare Argentina
Argentina is immersed in an
economic, technological and social
evolution. Globalization is increasingly
influencing its citizens’ perceptions
and digital communications are
impacting upon almost every aspect
of daily life. The nation’s embrace of
this paradigm shift is reflected in
high penetration levels of broadband
and mobile phones and in particular
the increasing use of smartphones.
For marketing and advertising, this shift
presents a challenge. Consumers can now
broadcast their reaction and responses across
a wide forum – and do so in real time. And
just as Argentinean politics are revealed and
examined through political tweets, so too are
brands finding themselves on the receiving
end of customer comment and opinions
through the use of social networks. On the
other hand, these new methods of interactive
communication are so far largely unregulated.
This means that digital communications offer
political parties – and indeed advertisers – a
way round restrictions and legal obligations.
Argentineans have proved to be avid adopters
of social networks and the country is also
beginning to see an explosion in the use of
online video. The development and impact of
multi-platform content is therefore becoming
of acute interest. It represents a huge challenge
for research, not only because of the myriad of
new possibilities, but also in terms of the speed
of response that is needed. We are talking
about research applied in real time.
The world – and in particular Argentina – cannot
afford to ignore how the cultural revolution is
affecting at least three different generations.
Each of these generations has a different
approach to the adoption of new communication
technologies, and varying degrees of
engagement with them. This new economic,
technological, communication and cultural order
impacts upon all socio-demographic sectors. For
this reason, we can no longer just talk about
socio-demographic structures, but must consider
cultural socio-demographic segmentation.
At Mindshare, we are intent on developing new
research methods that enable us to measure and
manage the effect of digital communications
across this generational and cultural divide. We
are creating new R.O.I. and data handling tools,
new forms of communication, synergy and
interaction – in the certain knowledge that the
true power of digital communications lies in the
hands of those who best understand them.
15
BRAZIL
18
BRAZIL
Brazilian consumers
stand up for their rights
Isa Telles
Brazil is in a period of transition. With
a CAGR of 2.5% over the past four
years, the country had a great 6.9%
growth in 2010, but has clearly been
in deceleration since, having just a
0.9% growth rate in 2012. In 2013, the
US dollar hit the highest rate for the
last 4 four years, reaching R$2.14. To
control this high, the Central Bank sold
at least US$ 876 million in the futures
market. Investors became increasingly
suspicious and there was a downturn
of foreign investments, due partly
to government state and economic
interventions, and also to high inflation.
Seeking better public policies, Brazilians
took to the streets to demand more
from the government in terms of
services (such as transportation, health
and education), as well as a stronger
stance on the punishment of crimes
of corruption. Focusing on short-term
policies, with frequent rule changes
and low investment in infrastructure,
the fiscal incentives promoted had little
effect on the country’s productivity.
BRAZIL key facts
Other factors contributing to the
reduction in growth include the
decline in market value of companies
dependent on exports (as a result of
commodity drops around the world),
and the decrease of banking spreads
(as a reaction to the interest rate
reduction imposed by the government
on private banks). This second factor
increases access to personal loans,
boosting consumption and leveraging
the value of brands in the retail sector,
but notably reduces the value of brands
in the banking sector. Personal loan
costs dropped from 9% to around
6% per month, but even at this figure
remains very high.
In contrast, companies like Ambev
(America’s
Beverage
Company)
and Natura have seen their values
strengthened, and companies such as
BR Foods, Pão de Açúcar Group and
ItaúUnibanco have started to benefit
from mergers and consolidations that
occurred between 2010 and 2012.
Total at current prices (millions)US$2,252,926 (2012)
Country’s share in regional GDP 39.5% (2012)
US$66,137 (2012)
Capital City Brasília
Currency Real
5.5% (2012)
19
20
A collision between consumerism
and indebtedness
BRAZIL
What Brazilian macroeconomics mean for brands
Aurora Yasuda
Millward Brown Brazil
Any plans for strategic development of local or global brands
within Brazil must recognize the major demographic, social,
economic, cultural and political trends that affect consumption
patterns, and the changes that are occurring within them.
Here we consider some of the key factors that are shaping the
Brazilian consumer profile today.
The altered age pyramid
Improved quality of life has increased the average
life expectancy of the Brazilian population. This,
combined with the fact that the large contingent
born between 1950 and 1960 – ‘the baby boomer
generation’ – has now reached maturity and has now
begun to change the age structure of the population.
The over 65s population represents the highest
growth, and may well exceed 4% year-on-year
between 2025 and 2030. Meanwhile, the growth
rate of the 0 to 14-year-old population has been
declining in absolute value from 1990 to 2000. This is
due to families having fewer children, even among
lower classes (and despite the fact that the infant
mortality rate has also shown a downward trend).
In 2008, 0 to 14-year-olds represented 26% of the
total population and the over 65s accounted for 6%.
The projection for 2050 shows a reversal: children
will represent 13% while the over-65s are expected
to exceed 22% of the population. The value of
‘pester power’ will perhaps be sidelined for brands
by the growing importance of the more considered
approach of the older consumer.
Changes in the make-up
of the family unit
In a more open society with greater
tolerance and acceptance of separation
and divorce, new family compositions and
household profiles arise and significantly
affect consumption patterns:
Single-parent families (households
with one adult, usually mothers living
with their children).
Large families where the children
return to their parents’ home with
their own children and receive help
from grandparents to raise them.
Blended families – couples in their
second or third marriage where their
children from previous marriages all
live together with them.
With economic stability and a steadier employment
rate, Brazil experienced a phase of increased
consumption, giving many of the population access
to consumer goods that they once believed to be
beyond their reach. However, the perils of easy credit
and high interest rates led to an indebted population
that was unable to make ends meet, generating a
very high default rate. The indebtedness rate has more
than doubled in eight years according to Central Bank
– from 18% in 2005 to about 43% now.
This indebtedness is already affecting the decisionmaking process for the purchasing of staples; it may
well result in a trade-off where the strongest brands
earn the loyalty of consumers by offering the best
value combined with an emotional reward.
The formalization of domestic
work increases household costs
For a long time, the employment circumstances
of many domestic workers were characterized by
high informality with limited access to social rights.
However, starting this year, this segment formalized
its working relationship with access to labor rights
from other categories. Thus, the cost for maintaining
maids, nannies, elderly caregivers, drivers, caretakers
and so on has substantially increased, forcing families
into new agreements and arrangements. The impact
of this on disposable income – for both employee and
employer – may yet to be fully felt.
Adoption of global consumption
patterns, driven by technology
As elsewhere across the globe, Brazil has seen the
growth of e-commerce and online shopping; the
penetration rates of tablets, smartphones and social
networking are also rapidly increasing. This window
on the world has strengthened the presence of global
brands, but it is the brands that fulfill the mantra of
‘glocalization’ that are at an advantage. Consumers
engage easily with brands that reflect or are part of
the local culture.
In the face of these major and ongoing changes,
brands have greater challenges and responsibilities.
Brazil remains a market of great opportunities but to
capitalize upon them, brands must consistently deliver
something beyond the product or service itself. That
‘something’ must be differentiated enough to attract the
consumer’s interest, and meaningful enough to merit
their engagement and loyalty.
21
22
BRAZILIAN
Brand Value
2012
Healthcare 1%
Mining 3%
Outros 10%
Beer 15%
Roberto de Napoli
Fashion 1%
Food 4%
Brazilian brands
have reduced their
contribution to the
BrandZ™ Top 50
Most Valuable Latin
American Brand
Ranking 2013 by 9%,
reaching a total value
of US$ 53.5 billion.
2012
Energy 18%
Retail 7%
Brazil’s most valuable brand
Cosmetics 6%
2013
Healthcare 2%
Mining 2%
Outros 12%
This year, Skol has increased its value by 39%,
reaching US$ 6.5 billion. The brand benefited from
the extremely positive financial performance of
its parent company, Anheuser Busch.
Beer 22%
Fashion 2%
Food 6%
2013
During 2013, Skol continued investing in brand
communication to enhance its appeal to young
people, for example through platforms such as
Rock Skol, Skol Beats, and more recently, Skol
Sensation. According to Britain’s ‘The Drinks
Business Magazine’, Skol is the fifth most
popular beer in the world (across all licensed
beers worldwide). In becoming the most
valuable Brazilian brand, Skol has surpassed
Petrobras, the Brazilian oil company.
Energy 11%
Retail 10%
Cosmetics 7%
brazilian Brand Value
% Change by Sector
overall brand
value change
2012-2013
-9%
Source:
BrandAnalytics
-
+62% Beer
-29% Financial Institutions
-40% Energy
+44% Retail
+24% Cosmetics
+52% Food
-9% Communication Providers
+46% Fashion
+77% Healthcare
-35% Mining
+2% Outros
A note on Petrobras
Petrobras was Brazil’s most valuable brand
for three consecutive years and in 2012 came
top of the BrandZ TM Latam Top 50, but it has
now dropped to second place. This is due to a
combination of factors: currency devaluation
(which in a commodities industry is sharply felt),
prices controlled by the government (given that
Petrobras is a state-owned company, it is used
as a means to keep inflation rates low) and
uncertainty surrounding future projects.
+
23
24
25
BrandZ™ Top 50 Most Valuable Brazilian Brands 2013
#
Brand
Brand Value
(US$ Mil.)
2012
2013
1
4,698 6,520
2
10,560 5,762
3
Brand
Contribution
Index
Brand
Value
Change
2012-2013
5
39%
Beer
1
-45%
Energy
6,690 5,492
3
-18%
4
6,606 4,006
5
2,359 3,803
6
3,307 3,707
7
1,496
8
4,574 1,427
2
-39%
4
61%
Beer
5
12%
Cosmetics
1,993
2
33%
Food
2
-69%
9
851
10
762
11
778
12
697
13
1,708
1,284
4
51%
Beer
1,046
2
37%
Retail
1,036
2
33%
Food
1,010
5
45%
Beer
1,009
1
-41%
Mining
Brand Value
(US$ Mil.)
2012
2013
Brand
Contribution
Index
14
670
972
3
15
589
#
16
Brand
Brand
Value
Change
2012-2013
45%
Retail
916
3
56%
Retail
-
810
N/A
1
17
500
18
519
19
555
20
817
21
412
22
569
23
332
24
295
25
349
26
187
748
5
50%
Insurance
680
2
31%
Loyalty Programs
656
1
18%
Credit Cards
641
1
-21%
634
2
54%
Retail
569
3
0%
Information Technology
513
3
55%
Retail
474
1
60%
Healthcare
473
3
35%
Retail
458
2
144%
Car Rental
Brand Value
(US$ Mil.)
2012
2013
Brand
Contribution
Index
27
436
455
1
28
318
#
29
Brand
Brand
Value
Change
2012-2013
4%
444
1
39%
216
422
4
95%
Fashion
30
450
31
342
32
479
33
386
34
351
35
318
36
236
37
292
38
219
39
600
396
1
-12%
Airline
390
1
14%
Healthcare
382
3
-20%
Retail
361
1
-7%
Stock Exchange
345
2
-2%
Fashion
306
2
-4%
Education
295
3
25%
Fashion
287
1
-2%
Retail
280
2
2012
2013
40
560
250
3
41
-
Brand
1
258
42
241
1
N/A
232
1
-10%
Retail
43
-
44
-
45
-
46
-
47
-
48
-
49
185
50
-
216
2
N/A
Drugstores
208
3
N/A
Food
207
1
N/A
Utilities
196
3
N/A
Food
195
2
N/A
Education
183
1
N/A
Real State
178
1
-4%
Retail
161
2
N/A
Healthcare
-57%
Source:
-55%
Aviation
28%
Brand
Value
Change
2012-2013
Airline
Drugstores
260
Brand Value
(US$ Mil.)
Brand
Contribution
Index
#
BrandAnalytics and
26
BRAZIL
Brazilians harness
the power of
digital discourse
Gal Barradas
Partner and CEO F.biz, Brazil
Brazil has entered the era of technology in almost
a single generational leap. Already, it is the third
most connected country in the world, and its
citizens are gradually becoming more wellinformed, more demanding, more participatory,
more aware of their nation’s problems, but also
of its assets and advantages.
Well-informed people make more empowered
citizens. Let’s take, for example, the recent
protests in the streets of Brazil. The protests did
not occur only in major urban centers, but also in
small towns nationwide. Without digital media,
the people would not necessarily have been
aware of the level of mobilization throughout the
country, and the government could easily have
underestimated (or concealed) the magnitude
and determination of public opinion. While the
government is only now taking the first steps in
its use of technology to listen to the population
and provide better quality services, it’s clear that
the people have made extensive use of digital
media for mobilization on important issues in
everyday life.
And another phenomenon has occurred. For
the first time, Brazil has seen its major media
outlets altering their opinions and messaging in
response to the influence of popular movements
– apparently acknowledging the need to align
with the people and their expectations in
relation to the press.
Digital media creates a marvelous paradox: farreaching and able to deliver a world view, at the
same time it helps people look more closely at
what’s happening in their own communities and
empowers them to get involved in local issues.
Previously, when only mainstream forms of
communication media were available, this would
not have been possible. All of this changes a
society, changes a country. chile
#
28
29
chile
Economic forecast
remains sunny,
with some clouds
Isa Telles
One of the most globalized countries in
the region (in terms of international trade
agreements), of the 6 nations covered in, the
BrandZ TM Top 50 Most Valuable Latin American
Brand Ranking 2013, Chile currently ranks third
for forecast growth, at around 4.4% for 2013.
It also had the second largest growth in 2012 .
With a CAGR of 4.0% over the past four years,
the country’s rates of growth from 2010 to 2012
have ranged between 5.9% and 5.6%. Despite
a recent deceleration due to a fall in copper
prices and a consequent increase in the balance
deficit (impacted by the economic slowdown in
China), and a drop in investment and domestic
demand (according to IMF), there is still a sense
of optimism in the country. The financial and
economic sectors show a period of stability due
to low inflation rates, and subsequent falls in
unemployment rates since 2009.
Motivated by the recent agreement with the
United States visa waiver program (whose
parameters are considered key requirements for
developing countries) the country is regarded
as the most open economy in the region. It
has signed numerous trade agreements and
is doing business with more than 50 countries,
including the United States, European Union,
China and Japan. These treaties are the result
of an economic liberalization that began three
decades ago with the aim of opening Chile’s
economy to other markets in the world. It
has great competitiveness and a strong retail
sector composed of banking institutions and
large companies with renowned brands such
as Falabella, Lan and Sodimac. The country has
a growing labor force and one of the lowest
poverty rates in the region; however, protests
have arisen throughout the country, demanding
better quality in services provided by the
government, and greater access to education.
chile key facts
Capital City Santiago
Currency Chilean Peso
Area 756 thousand km2
6.4% (2012)
US$4,864 (2012)
30
chile
CHILEAN Brand Value
Chilean consumers
make their voices heard
Roberto de Napoli
Chile slightly raises its level of contribution
to the BrandZ™ Top 50 Most Valuable Latin
American Brand Ranking 2013 increasing
the value of its brands by 3%, to a total of
US$29.8 billion.
2012
Marcela Pérez de Arce
Client Service Director, Millward Brown Chile
In Chile, the growing participation and empowerment of consumers is a
hot topic. In fact, consumer complaints are becoming more frequent and
have evolved from simple criticism to organized actions. Consumers have
become more clear and direct in demanding their rights in general, as well
as their rights to information.
Topics of complaint have changed. Whereas
previously, criticism tended to centre on retail, and
later banking, now there is a return to issues of mass
consumption and especially food.
This phenomenon has found resonance in the media,
generating a proliferation of TV programs dedicated
to denouncing breaches, not of civil or human rights,
but of consumer rights. The media itself has given rise
to a need for new regulations of consumer issues in
Chile. As a result, in the second part of this year, a new
law will be enacted to regulate nutritional labeling.
A clear sign of the strength and impact of consumers’
increased organizational capacity is the government’s
recent creation of agencies like SERNAC (Servicio
Nacional del Consumidor - National Consumers
Service, a Government institution) on finance which
protects consumers’ rights.
How are brands reacting to this new context of
consumer participation? Insufficiently, it seems.
Brands haven’t redefined their relationship with
consumers, who are now clearly social actors – as
seen especially clearly in online social networks.
In Chile, social networks still represent the fastest
growing platform for participation and organization,
it’s where consumers express themselves most
clearly and fully. But, brands have not yet grasped
the fact that the demand coming from these ‘new
consumers’ is for a more horizontal and candid
31
relationship. Instead, brands limit their use of social
networks to two areas: promotional advertising and
complaint departments.
Similarly, brands apparently have misunderstood or
ignored the demand for more transparency. Brand
managers seem to believe that the more horizontal,
candid approach will leave them vulnerable. However,
the transparency consumers want doesn’t imply
a larger quantity of information, but rather more
sincerity and honesty, a relationship built around
dialogue, not monologue. Consumers seem to be
saying, “Don’t leave me in the dark. And when you
do provide information, don’t insult my intelligence.”
Today’s consumers demand two things: plain talk, and
to be informed about how problems will be resolved.
This demand for transparency doesn’t necessarily
mean a desire for more data or more detail about
aspects that don’t interest consumers. They just
want to be leveled with. Two recent cases exemplify
the fact. One study revealed that packaged bread
labeled ‘light’ provides more calories than the regular,
unlabelled marraqueta (a traditional Chilean type of
baguette). Another study showed that olive oil is not
always as beneficial to health as people have been
led to believe.
So, consumer mistrust is on the rise. Brands make
and break promises or are vague and insincere in
their communications. Consumers themselves are
Paper 2%
Beer 2%
Airlines 14%
questioning regulations – not just product quality
itself, but the actual norms regulating that quality.
They are focusing on the distinction between
what’s legal and what’s legitimate. This is especially
evident in the case of health insurance and
retirement funds, where consumer organizations
currently have over eighty thousand petitions for
legal recourse pending.
In the light of this trend, the telecommunications
industry has moved a step ahead by establishing
self-regulation; something other industries have
failed to do. They changed their language and
stopped talking about volume in terms of number
of megabytes (which by the way, they were not
really providing) and responded to consumers’
new status, proactively heading off potential
problems before they could arise. The most
recent example regards call centers: the day after
a news item appeared denouncing irregularities,
SUBTEL simply stopped all sales by phone. The
company didn’t wait for an investigation, but
ended the problem almost instantly.
Another example that speaks of sincerity is
H&M’s arrival in Chile with a very publicized
promise of fair price for fashion; a promise
the company has apparently been successful
in keeping. H&M is an international brand
that probably has experience in these issues,
and knows how to relate to consumers on
their new terms. It has recognized that in a
socially networked economy, every individual
is empowered to be either an advocate or
‘badvocate’ (critic) of a brand. It’s clear that
Chilean consumers are determined to exercise
this power, so brands must hasten to develop
strategies to mitigate against its effects and
capitalize on its potential for good.
Retail 59%
Energy 10%
2013
Beer 2%
Paper 3%
Airlines 11%
Retail 57%
Energy 11%
chilean Brand Value % Change by Sector
-4% Retail
+27% Financial Institutions
+11% Energy
-20% Airlines
+11% Paper
+29% Beer
overall brand value
change 2012-2013
+3%
+
Source:
BrandAnalytics
32
chile
BrandZ™ Top 15
Most Valuable
Chilean Brands 2013
#
Brand
Brand Value
(US$ Mil.)
2012
2013
1
5,263
2
3,109 3,632
3
4
5
6
7
8
9
10
5,611
Brand
Value
Change
2012-2013
5
7%
17%
5
7%
Retail
3,964 3,274
4
3,204
5
14%
#
Brand
1,932
5
-2%
1,558
5
-8%
11
12
690
1,248
5
-8%
1,190
3
7%
564
13
987
4
0%
Retail
600
14
-8%
786
1
14%
748
4
33%
607
1
1%
-
15
Source:
4
Beer
Retail
987
Brand
Value
Change
2012-2013
Paper
Retail
1,116
869
Brand
Contribution
Index
Retail
Retail
1,361
2013
948
Retail
1,699
Brand Value
(US$ Mil.)
2012
Energy
1,980
Today, Chile is one of the most developed countries in Latin
America and is expected to continue to grow in terms of quality of
life, education, and health, to become a developed country by 2015.
The economy is booming. GDP growth has averaged 5% in the last
five years due to efficient exchange and interest rate management,
focused on attracting foreign investment and on infrastructure.
-17%
Airline
2,815
Managing Director of Kantar Worldpanel
responsible for Chile, Colombia, Ecuador and Venezuela.
Playing a major role in Chileans’ everyday life,
Falabella is also leading Chile’s retail expansion
to other countries in Latin America such as
Argentina, Columbia and Peru, and has become
the largest department store in South America.
3,318 3,537
Vinicius da Silva
“The biggest selection of products and the lowest
prices”. This is Falabella’s offering – a retail brand
that sells a wide range of products including
domestic appliances, technology, furnishings
and clothing. Its scope and scale help explain
why it remains the most valuable brand in Chile.
With an increase in value of 7% to US$5.6 billion,
the company retains its huge power. Its biggest
advantages are its integrated retail and financial
services, such as insurance, credit and cards,
and the consistency of its delivery.
Retail
3
A thriving economy creates
an atmosphere of optimism
Chile’s most valuable brand
Brand
Contribution
Index
600
3
N/A
BrandAnalytics and
33
On a cautionary note, Chile’s economy is still dependent
on the mining of minerals. Copper provides 20% of
the GDP and 60% of the exports, of which 40% goes
to China, making Chile heavily dependent on demand
from China being maintained. At present however,
the strong economic performance is creating a sense
of optimism; people save money for a rainy day and
invest in education, one of the pillars of the country’s
development.
Salaries are growing (+5.9%) – way above inflation (1.7%),
and above GDP growth (5%) – while unemployment
(6.2%) is rapidly decreasing, especially in the greater
Santiago area (1%). These factors are generating a
strong increase in private spending (+9%). Chileans are
traveling abroad for tourism (+11%), buying more cars
(+12%) and spending a lot more on clothing (+30%),
according to the National Institute for Statistics.
The growth has boosted consumption. On the FMCG
front, there is little room for markets to expand
since the population growth rate is below 1% and
consumption is already high. Growth is due mostly
to a new range of more sophisticated products, for
example, the health and wellbeing product sector has
been one of the main drivers of the economy, with
many new products focusing on a healthier lifestyle.
Consumption of premium products is also on the rise,
with lower income households that had previously
only aspired to them, now actually able to afford them.
Strong economic growth and investment in the retail
industry has had a big impact on the way in which
Chileans shop. Proximity to hypermarkets, more
disposable income and less time to spend on FMCG
shopping trips have changed the way Chilean women
conduct their shopping missions. They are significantly
increasing the amount of products they purchase on
each trip, reducing the frequency of purchase (-16%),
while buying bigger pack sizes across more categories
in the same trip (+11%).
The retail structure is also in continuous development.
Chile already has the biggest concentration of modern
trade in Latin America (around 87%) with discounters
and wholesalers bringing a new dynamic to this market,
and also helping to boost private labels alongside the
big players such as Walmart and Falabella. Cencosud,
Chile’s biggest retailer, is increasing its presence in
other countries in Latin America too (Peru, Colombia)
and gaining the confidence of consumers there due
to its high levels of service delivery.
As Chile’s economy continues to expand, the future
looks bright: unemployment and inflation rates are
low, so is poverty, and there is a lot of investment in
education. With these strengths and others – such
as the increase in tourism – people are now able to
invest in consumption of high-end manufactured
products and services. They are dedicating more time
to themselves by traveling more and buying more
clothes, while optimizing their FMCG shopping trips in
order to save time.
35
A destination of
increasing interest
to investors
Isa Telles
Colombia is considered to be a stable developing country,
showing a CAGR of 4.1% over the past four years and
with a forecast growth of 4% for this year. Nevertheless,
some of its production sectors have been affected by
factors such as decreased oil and coal activities and by
the global crisis, which caused a fall in export volume
and value of these commodities. With unemployment
rates dropping since 2009, the country has been of great
interest to investors, as seen in a recorded rise in foreign
net investment since 2010.
There are a number of reasons for this appeal to foreign
investors. The strengthening of national companies
(Nutresa, Ecopetrol among others) is one of them, and
this has also helped trigger the country’s entry to the
CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey
and South Africa – countries that have been identified as
rising economic forces). This empowerment prompted
the possibility of investment diversification in other
sections of the economy besides oil and mining, such
COLOMBIA key facts
COLOMBIA
Capital City Bogotá Distrito Federal
Currency Colombian Peso
11.3% (2012)
as manufactured products, food, and retail. A second
reason is the free trade agreements signed with the
United States, Europe, South Korea and Costa Rica, and a
third reason is the country’s investment program and the
reorganization of its tax structure.
Added to these factors is the increase of consumer
credit, encouraging the nation’s growth. A country
once only recognized for its problems (such as conflicts
and trafficking), is today attracting attention for its
consumption, which is being boosted by the development
of the middle class. Although a mild retraction of the
industry is expected, sectors such as mining, construction,
agriculture and commerce should show improvement. It
is a significant change for a country that was until recently
dependent mostly on commodities. In this scenario retail,
banking and communication brands – like Claro (which
replaced the Comcel brand), and SABMiller (Águila and
Poker) – are growing in value.
US$13,771 (2012)
36
COLOMBIA
Colombia: A country
of opportunities
Mr. Gabriel Castellanos
Managing Director, Millward Brown Andean Region
In the last decade, Colombia has been considered
one of the most interesting countries for foreign
investors. The country has had a sustained growth of
4% on average, and this has seen the strengthening of
national companies such as Grupo Nutresa, Ecopetrol,
Grupo Aval and Cementos Argos, amongst others. These
companies’ latest investments have turned them into
multi-Latin companies with a direct presence in Central
and South American countries and the United States.
This is why, according to experts,
Colombia is part of the CIVETS group
(Colombia, Indonesia, Vietnam, Egypt,
Turkey and South Africa) – countries
that have been identified as the next
generation of economic tigers.
Both the BRIC and the CIVETS have
demonstrated their influence and
economic strength in an unfavorable
global environment. However, last
year the impact of the world crisis also
affected their economies, evidenced
by negative results in different
macroeconomic indicators.
Despite
the
external
context,
characterized by weak global demand,
falling prices of commodities and
weaker exchange terms, the Colombian
economy had only a moderate
deceleration, registering a growth
of 2.8% in the first quarter of 2013
compared to the 3.1% observed last year.
This fall in growth is mainly explained by
fewer exports, a halt in activities of the
mining sector (oil and coal) and weaker
international commodities’ prices.
In terms of consumption (demand),
Colombia demonstrated moderate
growth of 3.5% annually, a reflection
of lower consumer confidence.
Colombians also reduced their debt
levels, an indicator that had been
increasing in a significant way up
until the first half of 2012; households
are now allocating a larger portion of
their income to paying debts, thus
moderating the consumption of goods
and services.
37
colombian
Brand Value
Roberto de Napoli
This in turn had a negative impact on
industrial activity, which was the only
sector of the economy that experienced
a contraction (-4.1%) in 2012. However,
consumer confidence in the last period was
higher than for the first quarter of 2013, and
retail figures suggest better consumption
performance.
Foreign investment represents a great
opportunity for Colombia, since the
concentration of investment (oil and
mining, with 70% of total flows) has
changed its composition towards a greater
variety of economic activities, such as the
manufacturing sector, restaurants and
hotels, storage and retail, communications
and financial institutions.
Likewise, foreign investors have seen
that Colombia presents an opportunity to
promote big luxury brands, a market that
according to entrepreneurs has a potential
of one million customers, and 50 million
dollars a year. Brands such as Dolce &
Gabbana, Mabe, Montblanc and Hublot,
have decided to set foot in the country
or increase their expansion in different
Colombian cities.
Alongside growth through foreign investment,
the country is facing new free trade
agreements: United States (2012) and Europe
(2013), South Korea and Costa Rica. These
agreements signify a challenge for all actors
of the economy (and have prompted displays
of public protest) as local products face
the entrance of highly competitive global
products, backed with financial muscle.
Colombia’s capacity to focus the flow of
foreign investment and take advantage
of the free trade agreements depends on
the increase in consumer confidence. This
will see its repercussions in an increase
in internal demand and therefore a more
productive and strengthened sector able to
compete in the global market.
Colombian brands are worth US$ 23.1 billion
in the BrandZ™ Top 50 Most Valuable Latin
American Brand Ranking 2013, (the same
value as 2012). The main difference in this
year’s ranking is the inclusion of two brands
from the beer industry: Águila and Poker.
2012
Retail 5%
Energy 18%
2013
Retail 6%
Energy 22%
Beer 28%
colombian Brand Value
% Change by Sector
Financial Institutions -12%
Beer n/a
Energy +21%
Retail +10%
Communication
Providers -93%
+29%
Beer
overall brand value
change 2012-2013
Source:
BrandAnalytics
0%
+
38
Colombia: Between
the local and the global
colombia
BrandZ™ Top 10
Most Valuable
Colombian Brands 2013
#
Brand
Brand Value
(US$ Mil.)
2012
2013
4,240
1
5,137
Brand
Contribution
Index
Brand
Value
Change
2012-2013
1
21%
At the time of writing, thousands of Colombians are protesting on the streets
and joining a strike organized by Colombian farmers. Their concerns are that the
conditions signed and agreed in the Free Trade Agreement (FTA) with the United
States will significantly affect their income and way of working. The belief is that
the agreements, which have recently come into force, will flood the market with
products at prices that small-scale Colombian farmers cannot compete with. The
unrest is just one of the effects of the many FTAs recently signed by Colombia.
Energy
-
2
3,903
5
Juan Pablo Rocha
N/A
CEO, JWT Colombia
Beer
3,465 3,009
3
5
-13%
-
4
2,487
4
N/A
Beer
5
2,842
6
2,414 2,094
2,466
4
-13%
Bakery
3
-13%
1,168
7
1,286
4
10%
Retail
1,251
8
1,281
4
2%
1,143
9
992
3
-13%
517
10
Source:
39
479
3
-7%
BrandAnalytics and
Colombia’s most
valuable brand
Ecopetrol’s brand value (US$ 5.1 billion),
shows no major change when compared to
2012. A Colombian joint venture (mainly led
by the government but with participation
from investors), the brand was second
in the 2012 ranking, taking the place of
Comcel, a telecommunications company.
Positioning itself as a company of energy
for the future, Ecopetrol promises to find
and convert energy sources into value for
customers and shareholders (the company
does not distribute oil, just implements
exploration and refinement). Set up in 1951
as the Colombian Oil Company, today
it is the biggest company in the country,
one of the four main oil companies in
Latin America, and in the top 40 across
the world. Promoting its principles of
responsibility, integrity and respect, the
brand looks to act upon these values in line
with its strategic vision to be a competitive
international company, whilst respecting
the environment.
It is only 20 years since the Colombian
market underwent its first economic
‘opening’, bringing new brands and
companies to compete in the local
market. However, at that time, high
duties and taxes continued to favor the
local products. That early experience
taught local brands how to compete
and how to prepare for the seductive
avalanche of highly desirable global
brands. Today, the scenario is different:
following the signing of the FTAs
with the European Community, Asian
countries and the United States, the
competitive arena has become more
aggressive. On the one hand, the taxes
will no longer serve as a protective
shield, on the other, the competitive
conditions have evolved.
The first and most important change
is that the image of Colombia abroad
has improved and today it is perceived
as a better destination for investors. It
is certainly the most attractive market
in the region, given the unpredictable
nature of surrounding neighbors like
Ecuador and Venezuela. Furthermore,
Colombia has 44 million inhabitants
(consumers), making it the third most
populous country in Latin America,
after Brazil and Mexico.
From a branding perspective, the battle
between local and global brands has
begun. However, today the mere
promise of international or global
will not be enough to compete in a
market that is increasingly demanding
and sophisticated. The Colombian
consumer is more mature and aware
of the value for money proposition
of the brands he buys; he is also very
active digitally and has a broader view
of the world. According to “Digilats” (a
study by JWT about the digital habits of
Latin-Americans, made in 2013), 60% of
Colombians have Internet access and
of that group, 93% surf the web every
day. Additionally, Colombia has one of
the highest mobile Internet penetration
rates in Latin America with an average
usage time of over seven hours per
week. The Colombian consumer has
become more demanding and is
already a high tech shopper.
To complete the picture, local industry
is prepared: the quality of local products
and services has improved to global
standards and now are second to none.
It will be interesting to see how this
brand battle develops; the big winner
is likely to be the consumer who every
day has more power, and more choice.
41
The paradox of increased
purchasing power and
pronounced poverty
Isa Telles
Mexico has recently seen a slowdown in growth, impacted
by a sharp decline in external demand. Showing a 1.7%
CAGR over the past four years (among the lowest in
the region) and a 2013 forecast of 3.1%, the country has
nonetheless managed to maintain some stability in its
growth rate – ranging between 3.5% and 3.9% - since its
recovery in 2010, This is a result of the increasing domestic
demand that continues to stimulate the country’s
economic growth, especially in investment, as well as
having a strong correlation with the performance of the
Mexican economy. The new government faces the
challenge of further stimulating this growth; prioritizing
structural, fiscal, governmental and energy reforms; and
exploring the possibility of spending cuts to make up
for the reduction of tax revenues. There are signs that
the weak external demand is starting to affect domestic
demand as well, where growth is still insufficient to create
more jobs (with a slight drop in unemployment rates since
2009), to sustainably increase wages and to improve the
mexico key facts
mexico
country’s welfare. The rate of foreign investment in the
country has been falling since 2008, with 2012 being the
lowest rate in 12 years. However, a return to growth in
the second half is predicted, propelled by an apparent
improvement in the economy of its main trading partner,
the United States.
Even with positive macroeconomic tendencies and a
growing consumer market, a large part of the population
continues to live below the poverty line. Having a
political history marked with violent confrontations,
the government is working to join forces and raise the
country’s competitiveness. With its large population,
good geographical location and numerous international
agreements, the country is seen as an interesting
consumer market by several global brands. In this
context, Mexican brands have been struggling to make
the most of this growing market, with the biggest brands
concentrated in the hands of very few companies.
Capital City Ciudad de Mexico
Currency Mexican Peso
5.8% (2012)
Total at current prices (millions)US$1,173,600 (2012)
-US$4,730 (2012)
42
mexico
Mexico: A country of
increasing contrasts
Mr. Fernando Alvarez Kuri
Director of Millward Brown Optimor Mexico
According to data from every single international entity
available, Latin America is the most unequal region in
the world in terms of income. Mexico, as a key player,
proves to be far from an exception to the rule.
The Mexican economy has shown a positive trend on
macroeconomic variables, yet most of the country’s
population has failed to enjoy the benefits of this
growth and stabilization. The number of those living
under the poverty line had risen from 52.8 million in
2010 to 53.3 million by the end of 2012, according
to data from the country’s National Council of Social
Development Policy Evaluation (Coneval). Coneval’s
data, however, shows another interesting trend:
despite this growth in poverty, extreme poverty
decreased from 2.6% to 2.4% in the same period.
The dynamics of these figures illustrate a part of
Mexican reality, a country in which a huge part of
the population still lives under poverty lines but has
increased its overall purchasing power. Mexico’s GDP
per capita, with a value of $9,741 (current US$) and
having grown 2.6% per annum from 2008 to 2012
according to the World Bank, places the country
as fifty-seventh; not far behind other major Latam
economies such as Argentina (51) and Brazil (53).
As with other Latin American nations, during the
second half of the twentieth century Mexico followed
an economic model that aimed to industrialize the
country through the substitution of imports. This
meant the development of models based upon
heavy subsidization, increased taxation, and highly
protectionist trade policies, leaving the country
dependent upon a handful of industries. In 1982,
the system cracked, and Mexican authorities had to
look outward for the first time as a way to achieve
development.
Nowadays, Mexico is open to international trade,
even having once held the position as the country
with the most Free Trade Agreements in the world.
With a privileged geographic location, Mexico has
proven to be a true ‘hinge state’, holding strong
commercial relations with both cultural and
geographical continuums to which it belongs: North
America (namely under NAFTA) and Latin America
(under various FTAs and multilateral agreements such
as the ones held under the umbrella of the Latin
American Integration Association, ALADI). But Mexico
has also gone far beyond its continent; it holds 14
FTAs across the globe encompassing partners such
as Japan, the European Union and the European Free
Trade Association.
With a huge population (surpassed in the region
only by Brazil), its geographic location (which has
granted access to the US market and has influenced
consumption habits), as well as its numerous
international agreements (which have eased access
to the country), Mexico has become an interesting
consumption market for brands from across the
globe. Despite this openness, the US remains the
country’s biggest trading partner by far, holding more
than 50% of its imports and almost 80% of its exports.
Swinging back to the past,
looking up for the future
In 2012, Mexico held general elections, which
included the ballot for a new President of the
Republic. The elections resulted in the return of the
PRI (Revolutionary Institutional Party) who had ruled
the country without interruption from 1929 to 2000
putting an end to the right wing PAN’s (National
Action Party) 12-year rule.
Incumbent Enrique Peña Nieto’s government
inherited a country filled with challenges: an
economy which, because of its interdependence
with the American market, was hit following the 2009
World Financial Crisis, as well as a society heavily
struck by violence after the previous government’s
attempts to fight drug cartels, which resulted in
more than 50,000 deaths across the country.
Peña Nieto’s campaign platform focused heavily on
economic matters and structural challenges in the
energy sector, the tax system and labor markets;
everything wrapped-up under what he called the
‘new-PRI’. The nature of such platforms, as well as the
proposed change in the way drug cartels were being
confronted, has had an effect on the way Mexico
is perceived internationally and has, somehow,
renewed a sense of opportunity in the country. Peña
Nieto has aimed to unite political forces under what
is called the Pacto por México (Pact for Mexico) with
varying degrees of success: violence is no longer the
central axis of the political discourse, even though
it is still an everyday issue, instead the discussion
for structural reforms in key sectors have taken the
country’s political stage. Peña Nieto’s government
has sketched some changes that could potentially
boost the country’s competitiveness, though there
is still a long way to go before any real effect of
such measures is felt, especially since they depend
heavily on political will and fragile alliances that still
have yet to be fully forged.
43
44
45
mexico
A rich brand environment,
but concentrated in a
very few hands
Mr. Fernando Alvarez Kuri
Director of Millward Brown Optimor Mexico
With the country’s openness to international markets, its
geographical location, and the plethora of local options available,
Mexican consumers have historically been in touch with a wide
array of brands. Furthermore, this pool keeps growing as big
international players realize consumers in the country are brand
oriented, savvy and willing to spend if the right buttons are pushed.
From beer to bakery, passing through financial
institutions and cement, Mexico’s BrandZTM Top 15
ranking illustrates the brand richness in the country,
showing also another crucial characteristic of the
Mexican market, which is that power is concentrated
in a very few hands. Tycoon Carlos Slim’s empire
owns at least four brands on the ranking (Telcel,
Telmex, Inbursa and Sanborns); Walmart’s Mexican
branch, the largest Walmart operation of the world
after that of the US, owns two brands, including the
most valuable retailer in the country (Bodega Aurrerá
and Superama); and Grupo Modelo, the largest
brewer in Mexico, appears in the ranking with two,
including the one occupying the spot as the most
valuable brand (Corona).
Of all the categories included, one of the most dynamic
has been retailing. Historically, Mexico has developed
a strong retail culture yet it has been dominated by
just a handful of local powerhouses such as Bodega
Aurrerá, Liverpool and Sanborns, and complemented
by international retailers (namely Inditex and its
whole brand portfolio). But things have changed
lately. China’s entry into the World Trade Organization
in 2001 has forced Mexico to lower its tariffs for
imports of said country, meaning that international
players whose production depends heavily on China
and Southeast Asia are now considering Mexico as
an attractive market to enter. Some of these players
include heavyweights such as Gap, H&M and Forever
21 and their entry is forecasted to have an important
impact on the country’s retailing outlook, since
local brands have grown isolated, protected by the
government’s past international trade policies.
But apparel is far from being the only category that
is suffering the effects of past protectionist practices.
Take for instance the Mexican furniture industry
which, by the end of the nineties, occupied third place
by sales volume in the world after the US and Italy,
and which has been facing a hard scenario when confronting
imports from Brazil and China. Competitiveness in the
country is still an issue but, more and more, Mexican brands
have started searching for ways to overcome an increasingly
attractive and thus challenging market, taking advantage of
their brand heritage as well as their position as locals.
The times they are a-changin’
Mexico may be traditional, but it is also open to the new: the
country is one of the region’s largest Internet markets and it is
set to grow. Mexican consumers spend more time online and
doing more activities than they did in the past (internauts in
the country spending over four hours a day doing more than
three simultaneous activities). Nine out of ten Internet users
in the country use social media, thinking of it as the second
most relevant media to obtain information from (the first place
being search engines); in fact, between internauts, Internet
is the most used and trusted media, surpassing public and
paid television, radio and print. In this scenario, mobile is key.
70% of the 46,600,000 users in the country navigate through
mobile devices. Alongside Mexico’s competition laws on
telecoms, this has pushed the importance of a few brands in
the sector, namely gigantic Telcel, the second most valuable
brand in the country.
But telecoms are not the only category in Mexico in which
competition is an issue. Media is also an industry concentrated
on a very few: only two broadcasters, Televisa (third most
valuable brand in Mexico) and TV Azteca, hold most power
in the market. Yet, competition laws in the country are set
to change. Aiming to increase Mexico’s competitiveness, the
government is progressively planning to open more and more
sectors and industries. In the case of media, the renewal of
legislation is set to change the panorama swiftly, opening
up possibilities for new competitors – foreign satellite and
cable operators and maybe even one new broadcaster led by
Carlos Slim – to try and shape Mexican opinion.
With high penetration, TV is still seen as the key media to
start marketing activities with, but more and more, brands
are changing their approach towards it. The perceived
‘safety’ offered by this media has led to an important stage
of saturation: in 2012, there were 595 ads a month aired
in primetime, a huge change compared to 2005’s 462.
Saturation has impacted ad effectiveness, lowering scores
on communication and increasing a sense of glut and
passiveness towards the message, according to Millward
Brown’s DynamicTrackingTM Database.
In this new context, to boost their marketing communication
efforts, brands in the country must take into consideration
the consumer’s new relationship with media, which goes far
beyond just saturation. Mixed media consumption, the search
for more active participation as well as interesting shifts in
preferences will not only be the most basic challenges
advertisers will have to face in Mexico; they will have to create
new ways of seeing, narrating and generating experiences in
an increasingly competitive market.
46
47
mexico
mexican Brand Value
Roberto de Napoli
Mexico holds the first spot for the first time in the BrandZ™ Top 50 Most
Valuable Latin American Brand Ranking 2013. The value of its brands added
together is US$ 40.2 billion; this represents a 20% increase compared to 2012.
2012
2013
Bakery 6%
BrandZ™ Top 15
Most Valuable
Mexican Brands 2013
2012
2013
1
5,114
6,620
5
2
8,449 6,577
Bakery 8%
Cement 4%
Cement 5%
Communication
Providers 31%
Communication
Providers 43%
Brand Value
(US$ Mil.)
Brand
Contribution
Index
#
3
4
Brand
Mexico’s most valuable brand
Brand
Value
Change
2012-2013
29%
“There are some moments when only a Corona
will do.” With a communication strategy aimed
at interaction with the younger market, the
brand grew in value by 29% to US$6.6 billion,
ousting Mexico’s big wireless service provider,
Telcel (which faced a considerable decline
from US$8.5 billion to US$6.58 billion).
Created in 1925, Corona beer quickly became
the lead brand of the Modelo Group. Through
clear communications, the company promotes
the brand’s values of transparency and quality,
in addition to the more traditional and fun
attributes that appeal to Mexicans. This has
led to it becoming the highest-selling brand in
Mexico and to being distributed in more than
180 countries.
Beer
3
-22%
2,585
3,281
3
27%
2,511
2,992
2
19%
Retail
#
Retail 22%
Retail 25%
Beer 21%
5
Beer 22%
6
mexican Brand Value % Change by Sector
-27% Communication Providers
7
+12% Retail
1,995
2,976
5
2
8
+25% Bakery
+14% Cement
-
overall brand value change 2012-2013
+20%
+
Source:
BrandAnalytics
9
10
4%
1,244
2,301
5
85%
Beer
+8% Beer
+126% Financial Institutions
49%
Bakery
2,656 2,768
1,352
2,091
3
55%
1,156 2,066
4
79%
Retail
1,494 2,034
2
Brand
36%
Cement
Brand Value
(US$ Mil.)
2012
2013
11
1,398
1,578
12
-
Brand
Value
Change
2012-2013
3
13%
Retail
1,567
3
N/A
1,834
13
1,465
3
-20%
Retail
-
14
1,187
3
N/A
Retail
514
15
Source:
Brand
Contribution
Index
743
4
45%
Retail
BrandAnalytics
48
Mexico
mexico
Capturing the hearts
and minds of the
Mexican consumer
Rony Jerusalmi
Managing Director, Goldfarb Consultants
Important global players from all continents
are increasingly attracted by Mexico’s market
potential. Every day new brands are introduced;
this gives consumers plenty of choice, but also
makes it harder for each brand to establish an
emotional bond with their potential consumer.
The cultural and socio-economic variations across the population
have resulted in a market with a variety of targeted brands. But
this choice, added to the impact of the global economic crisis,
has made the Mexican consumer more demanding and more
deliberate in their thinking than ever. As a result, brands have
to exceed customer expectations in all aspects, from customer
service to value for money.
One of the most illuminating examples of these changes in the
current Mexican Market is seen in the Automotive Industry. There
is a great potential for growth in this sector since car ownership
penetration is still lower than in other similar markets. Twenty
years ago, there were only five brands on offer in the local
market (Ford, GM, Chrysler, VW and Nissan), but with the change
of manufacturing regulations and several free trade agreements
with other nations, today almost all global automotive brands are
available, providing consumers with more than 35 brand options
and over 300 model alternatives. As a consequence, the Mexican
Automotive Market has become more competitive than ever. Furthermore,
the newer players in the market such as Honda (1996), Toyota (2001) and
Mazda (2005), have established important practices and standards, such as
a customer experience designed to exceed expectations, uniform vehicle
prices among dealers, and affordable maintenance costs.
The luxury automotive segment has experienced very high growth in recent
years, with most global players represented in the Mexican market and
dominated locally by German manufacturers such as BMW, Mercedes Benz
and Audi. The establishment of these luxury brands has created additional
challenges for the non-luxury segments that sometimes find themselves
competing for the same consumer at similar price points.
Although Mexican automotive consumers may have had an emotional
connection to the five brands that won their hearts over the course of the
years, from a pragmatic perspective, the offering of these new alternatives
has attracted their attention and challenged the long established brands.
Other important changes have also affected the industry, such as the
transformation of the purchase decision-making process, which is heavily
influenced by the digital world. Best practices now include differentiated
facilities designed with the customer in mind, specially created sales
and service processes that deliver an added value experience, and the
deployment of ever-more original marketing and PR efforts.
Automotive brands have recognized that it is not enough to merely offer
a vehicle; they must also deliver an ongoing customer experience that
exceeds all previous expectations. Only by doing so can they compete in the
battle to win – and retain – the hearts and minds of the Mexican consumer.
49
51
A diverse population
offers great potential
for development
Isa Telles
The outlook for Peru in 2013 points to maintenance
of economic growth, with a 5.7% CAGR over the past
four years (the highest in the region); forecasts of about
the same rate are triggered by increased investments
in sectors such as mining and construction and by the
growth of private consumption. The country has been
growing steadily since 2003, and despite a sudden
drop in 2009, managed to regain growth in 2010, with a
slight decline since then. The current economic model
aims to make the country attractive for investors. The
government declared 2013 as the year of investment
in rural development, seeking to expand its agricultural
frontiers, develop technologies and strengthen
productive capacities, adding value to rural production.
The signing of a free trade agreement between the
European Union, Colombia and Peru in August 2013 was
aimed at improving conditions and stability to ensure
trade and investments between the European Union
and the Andean region.
Peru
peru key facts
peru
The growth of the country and its middle class presents
some particular issues. These include the efforts of local
brands to gain strength against multinationals and to
expand their presence internationally; the diversified
consumer profiles among the cities; the growth of the
provinces; and the importance of public opinion in
consumer habits. Brands in both the retail and banking
segments have gained strength and relevance.
The risks involved in this investment portfolio are related
to current social conflicts and delays in exploration
licenses, particularly in the mining and energy areas.
Despite the fact that unemployment rates have shown
stability with just slight drops, not all of the population has
benefited from the economic growth. The government
has declared its intention to correct errors and to combat
corruption and crime in the country, as well as its desire
to establish a healthy relationship for business, attracting
foreign investment – the rate of which has been growing
annually since 2003.
Capital City Lima
Currency New Sol
7.0% (2012)
US$9,641 (2012)
52
53
Peru
A Particular Multiverse
(The Expression of the
Peruvian Identity)
Mr. Claudio Ortiz
Managing Director of Millward Brown Peru
Nowadays, the huge economic growth that Peru has experienced during the
last 15 years is not really the subject of debate. Nor is the re-appearance of a
middle class, (which almost disappeared during the last part of the twentieth
century), much of a talking point these days. However, here we examine a
number of other, more recent developments – economic, behavioral and
sociological – that are currently impacting upon brands in Peru.
Intercity diversity
The millennials in Peru
Besides the three strips, (the Coast, the Andes and the Jungle)
huge differences are to be seen in the consumption habits
among the various cities of this country (together with a
certain homogeneity within each of them). Thus, you could
conclude that for many categories, the leading actor in one
city could be simply irrelevant in a nearby city.
Because the economic resurgence happened when today’s
youngsters were just babies, the generation gap appears to
be even greater. For the first time, Peru faces a transversal
generational phenomenon. Young people with a ‘millennial’
attitude have grown up in a society that, despite still being poor,
has grown continuously – and this has happened in a context
where parents raise their kids trying to forget the past. The
effects of this social revolution are just beginning to be seen.
The successful ‘defense’
of some local companies
The conducting of continual brand surveys in nearly 20 different
cities may be a key to success for companies which do not think
of Latin America as a country (with Buenos Aires or Mexico City
as its capital) or of Peru as an ‘extension’ of Lima.
There are many examples of local companies that
have managed to maintain a strong position in the
local market (despite the presence of some global
giants), and are also becoming global themselves.
The speed of changes in behavior and
the importance of ‘word of mouth’
This raises the question of why the ‘g iants’
themselves have not been as successful in this
market as in the rest of the countries of this region.
The answer is that the Peruvian product breaks
through by being supported by local consumers
(loyal to the local product) and by globalization;
it has its own models, which are now becoming
successful abroad.
Even in the past, you would see sudden changes in the market
share of some categories where the main driver was a wordof-mouth rumor: “It’s not good anymore” or “It seems they
changed its flavor” are phrases that could generate significant
behaviorial changes that were very hard to reverse. This, in a
market that is adapting rapidly to digital processes and virtual
social networks, is an increasingly important factor.
The new source of
economic growth in Peru
Although the local economy is not growing as quickly as in the
previous decade, it remains healthy. A couple of years ago, this
growth started to be noticeable in the provinces. Now it is the
turn of Arequipa, Huancayo, Trujillo and Piura (among others)
and it is clear that consumers in these cities are quite different
in regard to their behaviors, values and, a lot of the time, their
choice of brands.
What should brands do to engage with such a diverse consumer?
What should they do in this era of evolution, as we face the
challenge of the digitalization of brand communications?
These perhaps are the key questions marketing will have to
answer in order to keep brands growing in this society.
54
Peru
Insurance 5%
PERUVIAN Brand Value
Soft Drinks 9%
Beer 44%
Roberto de Napoli
Peruvian brands make their debut in
the BrandZ™ Top 50 Most Valuable
Latin American Brand Ranking 2013,
adding up to US$ 6.4 billion. The
financial institution BCP is the most
valuable brand in Peru, with US$ 1.6
billion, followed by Cristal, a beer brand,
which accounts for US$ 1.4 billion.
Source:
BrandAnalytics
BrandZ™ Top 7 Most Valuable Peruvian Brands 2013
#
Brand
Brand Value
(US$ Mil.)
2012
-
1
2
NEW
1,636
-
1,401
5
NEW
-
1,095
2
NEW
Beer
3
4
-
899
5
NEW
-
571
5
NEW
528
5
NEW
301
4
NEW
Beer
®
Soft Drinks
-
6
Beer
-
7
Source:
Brand
Value
Change
2012-2013
2
5
2013
Brand
Contribution
Index
Insurance
BrandAnalytics and
Peru’s most
valuable brand
The first and oldest bank in the country,
as well as the largest, it was established
in 1889 under the name Banco Italiano,
changing its title to the current one
in 1942. The organization has grown
and diversified its operations and
today has branches in Nassau and
New York. The expansion resulted in
the creation of other subsidiaries,
such as Credifondo (mutual funds)
and Credileasing (financial leases). It
offers a full portfolio of bank services
to individuals, small businesses and
companies, including credit services,
insurance, finance and investment.
The new Peruvian
consumers: changing habits
in an emerging economy
Fidel A. La Riva Cruz
Country Manager, Kantar Worldpanel Perú
In recent years, the Peruvian economy has
experienced a period of prosperity, the like of which
its citizens have not enjoyed for at least sixty years.
The main factors underpinning this boomtime are:
increased value of minerals such as copper, zinc
and tin – all key commodities exported by Peru; the
development of more (and huge) mining projects
especially in the interior of the country; and the
export of non-traditional agricultural products,
mainly to markets such as Europe and America.
These developments have seen the Peruvian GDP
double in the last 12 years, and extreme poverty
reduced by 50%, according to the Peruvian Ministry
of Economy and Finance.
The improvement in the economic situation has
also brought about changes in shopping habits and
how the average Peruvian consumes. Households
now purchase categories that a few years ago
it would have been unthinkable to find in the
Peruvian’s basket, such as fabric softeners, light
or diet products, and packaged foods. Year by
year, consumption of these goods accounts for
an increasing market share; nowadays it is about
20% of the Peruvians household expenditure. (It is
worth noting that Peruvian housewives have always
bought ‘little and often’ and principally through
traditional channels – market stalls and local little
shops call ‘bodegas’. This is due to the informality
that exists in the Peruvian labor market, which
means that many families receive their wages daily
or weekly, which directly influences buying patterns.
It’s not only the consumer goods market that
has been boosted in the last 10 years; the market
for new cars has risen from around 40,000 sales
in 2003 to over 190,000 in 2012, with young and
middle-class Peruvians fueling the dynamism of this
sector. The construction sector has also performed
robustly, growing at an average rate of 12% in
the last ten years, with over 100,000 mortgage
loans arranged for the purchase of private homes.
Peruvians have traveled more during the last decade
too; but whereas in the 80’s and 90 ‘s most of their
travel abroad was to seek work and development
opportunities, now they travel for pleasure. As a
result, the outbound tourism sector of Peru has
grown by about 30 % in the past ten years.
However, the population is aware that these boom
years have failed to solve some of the structural
problems of the Peruvian economy. These include
an insufficiency of formal job creation, and the
heavy reliance on the mining sector making the
economy vulnerable to changes in international
prices for minerals. So, there remains a lot to be
done, but Peruvians perceive that their economy is
still in gestation and anticipate many more years of
prosperity, both culturally and economically. They
consider Peru to be very much a developing nation,
not a third world country.
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57
methodology
Brand Valuation
In collaboration with Millward Brown Optimor,
BrandAnalytics, Brazil’s leading brand valuation
and strategy consultancy, provided brand
analysis and valuation for this BrandZ TM Top 50
Most Valuable Latin American Brands report.
The BrandAnalytics approach to brand
valuation is based on a brand’s economic
impact—for example, its ability to generate
long-term earnings for shareholders and
sustained demand among customers.
This approach is consistent with the
methodology used by Millward Brown
Optimor for its BrandZ TM Top 100 Most
Valuable Global Brands and related
studies. BrandZ TM is the only valuation that
peels away all of the financial and other
component factors of brand value and
gets to the core—how much brand alone
contributes.
valuation starts with the
BrandZ
corporation. In some cases, a corporation
only owns one brand. Therefore, all
corporate earnings come from the brand.
In other cases, a corporation owns many
brands. Therefore, we need to apportion
the earnings of the corporation across a
wide portfolio of brands.
TM
Step 1: Calculating
Branded Earnings
Step 1: Calculating
Branded Earnings
Step 3: Determining
Brand Contribution
To make sure we apply the relevant
portion of Corporate Earnings to the
brand we first obtain financial information
from annual reports and other
sources, such as Kantar Worldpanel.
To make sure we apply the relevant
portion of Corporate Earnings to the
brand we first obtain financial information
from annual reports and other
sources, such as Kantar Worldpanel.
Then, by multiplying Corporate Earnings
by a metric called the Attribution Rate
we arrive at Branded Earnings. Branded
Earnings refers to the amount of earnings
attributed to a particular brand. If the
Attribution Rate of a brand is 50 percent,
for example, then half the Corporate
Earnings are identified as coming from
that brand.
Then, by multiplying Corporate Earnings
by a metric called the Attribution Rate
we arrive at Branded Earnings. Branded
Earnings refers to the amount of earnings
attributed to a particular brand. If the
Attribution Rate of a brand is 50 percent,
for example, then half the Corporate
Earnings are identified as coming from
that brand.
We now have the value of the branded
business. But this value is still not quite
the core that we are after. To arrive at
Brand Value, we need to peel away a
few more layers, such as the rational
factors that influence the value of the
branded business, for example price,
convenience, availability and distribution.
Because a brand exists in the mind of the
consumer, we have to assess the brand’s
uniqueness and its ability to stand out
from the crowd, generate desire and
cultivate loyalty. We call this unique role
played by brand, Brand Contribution.
We have the only brand valuation
methodology that obtains this customer
viewpoint by conducting worldwide ongoing, in-depth quantitative research,
online and face-to-face, building up a global
picture of brand on a category-bycategory and a country-by-country
basis. Our research now covers over two
million consumers and more than 50,000
brands in over 30 countries.
Step 4: Calculating
Brand Value
Now we take the Financial Value and
multiply it by Brand Contribution, which
is expressed as a percentage of Financial
Value. The result is Brand Value, a figure
that’s expressed in dollars.
58
credits
Contributors
Rony Jerusalmi
Managing Director
Goldfarb Consultants Mexico
Pablo Oscar Lesulauro
CEO
Mindshare Argentina
Gal Barradas
Partner and CEO
F.biz
Vinicius da Silva
MD Kantar WorldPanel for Chile,
Colombia, Ecuador and Venezuela
Juan Pablo Rocha
President
JWT Colombia
Fidel A. La Riva Cruz
Country Manager
Kantar Worldpanel Perú
Rony has a degree in Industrial Engineering
from
Universidad
Iberoamericana
in
Mexico City and Marketing and Consumer
Intelligence graduate studies from the
University of Miami in Coral Gables, FL.
He is the Managing Director of Goldfarb
Consultants Mexico, a market research based
consultancy that provides strategies and
solutions to global companies in Mexico and
Latin America, in sectors such as Automotive,
Technology and Consumer Products.
Pablo has a degree in Administration at
Buenos Aires University and originally
joined JWTA’s Financial and Administrative
Department. In 1992, he created the Research
and Media Planning Department, of which
he was Director. In 2003, he became Vice
President, COO and Managing Partner of
Mindshare in Argentina, as well as Regional
Director for the Samsung and Gillette
accounts. In 2011, Pablo became CEO at
Mindshare Argentina. In recent years, he
has been Vice President for the Argentine
Chamber of Media Agencies (CAAM) and a
regular participant on industry judging panels
and at global conferences.
Gal Barradas majored in business
administration, with a postgraduate degree
in Semiotics of Advertising Text from the
University of Paris 8. Gal is a partner at F.biz
and serves as CEO; she is a member of
the Executive Committee of the Brazilian
Advertising Congress and also a Board
member of WPP Latin America.
Gal started her career at DM9 before
becoming involved in the first wave of
interactive agencies in Brazil, going on to
become Director of W/Brasil, AgenciaClick
and F/Nazca; she was also Vice President
of MPM (ABC’s agency). Gal is a member
group of business leaders working to
develop the agenda of women leaders.
After finishing high school in the USA,
Vinicius returned to Brazil to study Business
at Superior School of Marketing and
Advertising in Sao Paulo. His first job was with
Nielsen and he opened their Chile office,
before moving to Argentina as Commercial
and Marketing Director. Vinicius returned
to Brazil to be the Commercial Director,
leaving in 2002 to start his own commercial,
marketing and advertising consultancy. In
2005, he joined LatinPanel (which became
Kantar Worldpanel) as General Manager, in
Venezuela. In 2008, he moved to Colombia
as Managing Director of Kantar Worldpanel
for the North Andean Region (Colombia,
Ecuador and Venezuela). In 2013, he added
Chile to his remit.
Juan Pablo holds a BA in Advertising from
the Universidad de Bogota, and an MBA
from ESMA in Barcelona, Spain. He has
been the CEO of JWT Colombia for the past
10 years, with a career of 25 + years working
in Colombia, Venezuela, Spain, Mexico
and The Dominican Republic. Juan is also
involved in the academy at the Sergio
Arboleda University in Bogota.
Fidel is a Peruvian economist with more
than 17 years of professional experience in
market research, marketing and business
consultancy. He studied and lived in
Guadalajara, México for five years. He has a
Post Graduated degree in Strategic Marketing
in Palermo University of Buenos Aires,
Argentina. Fidel has worked as a Business
Planning & Analytics Director in Mindshare
Perú and Mindshare Argentina, and has
taught in many Universities and Educational
institutes in Latin America
www.mindshareworld.com
pablo.lesulauro@mindshareworld.com
www.fbiz.com.br
gbarradas@fbiz.com.br
www.kantarworldpanel.com
vinicius.silva@kantarworldpanel.com
www.jwt.com
juanpablo.rocha@jwt.com
www.kantarworldpanel.com
fidel.lariva@kantarworldpanel.com
With more than 18 years of experience in
brand research, Rony has helped many
Fortune 500 companies to understand the
relationship of their brand with its consumers,
and to identify effective strategies that can
be translated into practical actions.
www.goldfarbmexico.com
rony.jerusalmi@mx.mbgoldfarb.com
59
60
credits
Contributors
Eduardo Tomiya
Managing Director
BrandAnalytics South America
André Galiano
Director
Roberto de Napoli
Associate
Isa Telles
Associate
Carlos Dadoorian
Consultant
Eduardo holds a Production Engineer, MA
and PHD (ABD) from Poli/USP. The Founder
and Managing Director of BrandAnalytics,
he runs projects of brand valuation and
brand strategy for companies such as
Bradesco, Petrobras, Vale, Santander, Fiat,
Serasa Experian, O Boticário, and Cosan.
Earlier in his career, he was Director of Brand
Valuation at Interbrand (2000-2006, Iberia
and Latin America) and Managing Partner of
Corporate Finance at Trevisan (1995-2000).
Eduardo also teaches branding on postgraduate courses.
André is a graduate in Social Communication
from USP; a post-graduate in Administration
from FGV/SP, and specialized in Finances
at University of California. A Director
at BrandAnalytics, André runs projects
in Brazil and Latin America for clients
including Petrobras, Bradesco, Vale, Fiat,
Serasa Experian, Boticário, UNE, Repsol YPF,
Nextel. Prior to joining BrandAnalytics he
was Senior Consultant at Interbrand (20022006) and Consultant at TMP Worldwide
and Amcham. He also teaches postgraduate branding courses.
Roberto studied Economics at Mackenzie,
and has a post-graduate in Financial
Administration from FAAP. He has more
than 28 years of professional experience
in controlling and planning for companies
such as Inbrac, Ibrame, Trevisan Consultants
and Interbrand. With BrandAnalytics since
the beginning, Roberto is responsible for
the brand valuation projects and for the
ranking of Brazilian Most Valuable Brands:
2006-2013.
Isa graduated in Design at Mackenzie, did a
post-graduate in Communication Processes
at ECA/USP, and specialized in Marketing
and Branding at ESPM and School of Visual
Arts, NY. She has more than 15 years of
experience in projects of brand strategy
projects (branding). Earlier in her career she
worked in branding companies Cauduro
and CollectiveMind (J.W.Thompson), and on
projects in partnership with Lippincott, such
as Banco Real, Vale and Petrobras. Isa teaches
branding courses in Brazil.
Carlos’ qualifications include Statistics
by ENCE and a Masters in Statistics from
Unicamp. Prior to joining BrandAnalytics, he
was Account Director at Enfoque Pesquisas,
working with clients in the financial sector
(Amex, Santander, Itaú), and as Quality
Control and Statistics Director for Latin
America at IMS Health. At Cambuhy Citrus,
he was an ISO 9002 system auditor.
brandanalytics.com.br
eduardo.tomiya@brandanalytics.com.br
www.brandanalytics.com.br
andre.galiano@brandanalytics.com.br
roberto.napoli@brandanalytics.com.br
isa.telles@brandanalytics.com.br
carlos.dadoorian@brandanalytics.com.br
61
62
credits
Contributors
Martín Schijvarg
Account Director
Millward Brown Argentina
Aurora Yasuda
Knowledge Management
Millward Brown Brazil
Fernando Alvarez Kuri
Director
Millward Brown Optimor
Gabriel Castellanos
CEO
Millward Brown Andean Region
Marcela Pérez de Arce
Client Service Director
Millward Brown Chile
Claudio Ortiz Caruti
Managing Director
MillwardBrown Perú
A Bachelor of Business Administration, and
postgraduate in Marketing, University of
Buenos Aires, Martín has 10-years experience
in market research in Millward Brown. His area
of expertise is the analysis of the influence
marketing actions can have on brand’s health.
Martin provides analysis for markets such as
Argentina, Uruguay, Paraguay, Peru, Chile,
Brazil, Bolivia, Colombia and Mexico. Within
Millward Brown, he has worked on a variety of
sectors and was in charge of the BrandZTM Top
50 Latin America Brands 2012 event.
A graduate in Social Sciences from FFCL/
USP, Aurora has been working in market
research for more than 40 years and
was responsible for starting the Millward
Brown business in Brazil. A co-ordinator
and teacher of market intelligence post
-graduate courses at ESPM until 2011, she
also published Marketing Research – um
guia para a prática da pesquisa de mercado”
Editora Cengage, co-authored with Diva
Maria Tammaro de Oliveira.
Fernando has a MSc in Consumer Studies
from the University of Guelph, Canada and
a BA with Honors in Management from
ITAM, Mexico. He has specific expertise in
brand and marketing strategy, consumer
psychology and brand communications.
With more than 20 years of experience in
the consumer and service industries, he
has been involved with multiple regional
and global clients within the Millward
Brown family of companies for nine
years. He is head lecturer in consumer
behavior, brand strategy, market research
and communication strategy at different
graduate programs within top business
schools in Mexico, and is a guest speaker
at numerous conferences and forums (IAB,
ITESM) on consumer related topics.
Gabriel has more than 17 years of
experience of the challenges facing both
global and local brands. Throughout his
career, he has worked extensively both
in qualitative and quantitative research
specializing in brand building, trade
research and communications strategy.
Prior to joining Millward Brown, Gabriel held
various positions in areas such as research,
brand management, trade management
and corporate affairs.
Having graduated in sociology from
Universidad de Chile, Marcela has worked
in social research in gender and education
at FLACSO Chile, participating in several
projects and publications. Since 1997, she has
been dedicated to market research, working
in Time Research (now TNS Chile) and
Feedback, a consulting agency. She joined
Millward Brown Chile in 2001, assuming the
direction of the Quantitative Area in 2009.
Claudio studied as a Psychologist at
Universidad de Chile and did a Business
Management Degree at UAI. He has over 20
years experience in market research, both as
a client and consultant, in Chile and Peru.
He helped establish the first Millward Brown
office in Chile and, after some years working
at Nestlé Chile, returned to the company. He
is now managing the Peruvian office.
www.millwardbrown.com
martin.schjvarg@millwardbrown.com
millwardbrown.com
aurora.yasuda@millwardbrown.com
fernando.alvarez@millwardbrown.com
gabriel.castellanos@millwardbrown.com
marcela.perezdearce@millwardbrown.com
claudio.ortiz@millwardbrown.com
63
64
65
66
credits
With Thanks
BrandAnalytics, a leading brand strategy
consultancy in Brazil, produced the brand
valuations and analysis for this BrandZTM Top 50
Most Valuable Latin American Brands report, in
collaboration with Millward Brown Optimor.
BrandAnalytics
BrandZTM
BrandAnalytics is a Division of Millward Brown
Optimor in South America. BrandAnalytics provides
expert analytical and quantitative support for
branding programs. It focuses on brand valuation/
scorecards, brand strategy and ROI. By combining
thorough analytics with an understanding of
financial, marketing and strategic issues of the
business, BrandAnalytics produces evidence-based
branding recommendations that are linked to
shareholder value generation.
BrandZTM is the world’s largest brand equity database.
Created in 1998 and continually updated, BrandZTM is
an invaluable resource, containing data on brands
gathered from interviews with over two million
consumers in 41 countries and covering more than
200 different categories. Calculations use financial
data from sources including Kantar Worldpanel and
Bloomberg.
For further information, please contact:
For further information about BrandZTM, please contact:
Amanda Harrison The Store WPP
EDUARDO TOMIYA
Managing Director
GRAHAM STAPLEHURST
Global BrandZTM Director
graham.staplehurst@millwardbrown.com
Kay Blewett Bauernhaus Creative
Robin Headlee
Vice President Millward Brown Optimor
robin.headlee@millwardbrown.com
David Roth
CEO, The Store WPP
Tamsin Grant
Wordscout
Mónica Gojman
WPP Fellow, WPP
Carolyn Cummings-Osmond
MA Coordinator & Senior Lecturer Southampton Solent University
Project Management
Production
ILLUSTRATIONS
NINHOL www.ninhol.com
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