3. WELCOME DAVID ROTH
WPP
droth@wpp.com
Extensive intelligence, clearly WPP's unmatched Latin American The exclusive WPP BrandZ advantage Download Special Apps
TM
Welcome to this first BrandZ™ Top 50 Most
Valuable Latin American Brands report and presented market expertise
analysis. BrandZ™ Top 50 Most Valuable Latin American To download apps for BrandZ™ Most Valuable
To make this extensive intelligence easy to find To help you sort the tremendous amount of Brands becomes part of our rapidly growing Latin American Brands, and for other reports
This inaugural Latin America report focuses on and useful we organized the core of the report intelligence contained in these almost 200 pages, library of in-depth and practical WPP BrandZ™ in the BrandZ™ Most Valuable Brands series,
the five leading Latam economies—Argentina, into three sections: the Introduction, the Top 50 we’ve included Take Aways on page 7. Here reports for building and sustaining valuable please go to www.brandz.com/mobile or see
Brazil, Chile, Colombia and Mexico. These nations Overview and the Country Reports, which are are just three interesting Latam market factoids brands. These titles include BrandZ™ Top 100 page 188, where you also will find information
together represent GDP of about $4 trillion, the followed by the Brazil Special Section. just to get started: Most Valuable Global Brands and BrandZ™ Top about a special iPad magazine version with unique
equivalent of the world’s fourth largest economy 50 Most Valuable Chinese Brands; as well as content and functionality.
after Japan. Introduction: We set the context for brand • Latam’s middle class grew 26 percent over the Trust-R: Engaging Consumers in the Post-Recession
development in Latin America with a brief past five years. World; and Value-D: Balancing Desire and Price Our WPP companies are eager to put at your
Because of the size of Brazil, the “B” in BRIC, history of the region and some key economic and for Brand Success. disposal our expertise in insights, advertising,
we expanded our Brazil coverage into a Special geographic facts. Then we examine key trends that • Brazilians are the most loyal; 65 percent say digital, design, PR, promotion, marketing, media,
Section that includes profiles of the country’s Top impact brand opportunity, including the growth they stick with brands they like. The Trust-R and Value-D reports can be customized retail and shopper marketing—the knowledge
50 Most Valuable Brands as well as extensive of the middle class and the exploding interest in by brand and are available to WPP clients through necessary to build and sustain brand value in
analysis. digital communication and social media. • Colombian Internet users spend eight hours a WPP companies. Powered by BrandZ™, the Latin America and beyond. For more information
week on social networks. reports are based on the world’s largest brand about WPP agencies, please see page 184.
Many of the trends in Brazil and the other four Top 50 Overview: We present Latam’s Top 50 analytics and equity database containing data Or contact me directly.
markets covered in this report pertain as well to Most Valuable Brands in a ranking that incudes The information comes from TGI and TNS Digital gathered from more than two million consumer
other strong Latam economies, such as Peru and country of origin, brand value and other metrics. Life. I present it here because it represents the interviews about over 7,000 brands in 40-plus
Venezuela. We will examine these and additional Additional charts examine what categories are broad and deep WPP Latin American market countries.
Latam markets in future. most present, how the categories vary by country, expertise contained in this report to which
and the critical role of Brand Contribution. more than 20 WPP Latin American companies
BrandAnalytics, a leading brand valuation and contributed, including: Burson-Marsteller, Ecto,
strategy consultancy in Brazil, conducted the brand Country Reports: We explore each county in depth, F.biz, Goldfarb Consultants, Grey, Group M,
valuation in collaboration with Millward Brown accompanying a brand ranking with a synopsis of Hill+Knowlton Strategies, JWT, Kantar Media,
Optimor and using the Millward Brown Optimor key trends shaping the market and driving brand Kantar Worldpanel, Mediacom, Millward
methodology. value. Profiles of each brand reveal relevant history Brown, Millward Brown Optimor, Mindshare,
and positioning. WPP company country experts 9ine, Ogilvy& Mather, Ogilvy Action, The Futures
provide insights about brand awareness, media Company, TGI, TNS, and Y&R.
investment, digital engagement and other topics
that distill the fundamentals for brand success.
4. LATIN AMERICA CONTENTS
Colombia.............................69 Mexico ...............................85
Take Aways.........................8 Argentina............................ 39 Overview Overview
Introduction...........................11 Overview Increasing Security Unleashes Growth Proximity To US Broadens Brand Choice
Overview Consumer Purchasing Power Grows Key Market Facts Key Market Facts
Brands Rise in Value and Importanc Key Market Facts Fundamentals for Brand Building in Colombia Fundamentals for Brand Building in Mexico
A Short History of Latin America Fundamentals for Brand Building in Argentina The Top 10 Brands Chart Top 15 Brands Chart
Key Market Facts The Top 5 Brands Chart Brand Profiles Insight
Insight Brand Profiles Insight Large and Open Market Offers Opportunities
Middle Class Growth and Confidence Insight Economic Growth Drives Brand Awareness New Implications for Growing Brands
Great Digital Opportunity Awaits Brands Shoppers Seek Discounts Modern Colombia Debuts Digital Disrupts Marketing Norms
Brand Strategies for Latin America Media Investment Grows Sharply Media Investment Increases Brand Fans Communicate Online
Brazil Earned its Letter in BRIC Creative Fitness: Adapting to Constant Change Consumers Engage with Brands in Social Media
Latam Retail Powerful and Evolving Internet Penetration High
In-Depth Focus: Brazil....105
Top 50 Overview................31 Chile ...............................51 This special report on the Top 50 Brazilian
Overview and charts Overview Brands begins on page 105
Top 50 Brand Value Totals $136 billion Chileans Enjoy Free Market Prosperity
Ranking by Categories Key Market Facts
Countries by Brand Value Fundamentals for Brand Building in Chile
Categories by Country The Top 15 Brands Chart Methodology..................................182
Brand Contribution Brand Profiles WPP Company Contributors......184
Top 50 Brands Insight
BrandZTM Mobile.......................... 188
More Choice and Brands Appear
"Sanhattan" Symbolizes New Chile With Thanks................................. 189
Internet Penetration High WPP Resources...........................191
Market-Driven Economy Flourishes
8 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 9
5. INSIGHTS FOR BUILDING VALUABLE TAKE AWAYS
BRANDS IN LATIN AMERICA
Opportunities Consumers MEDIA BRANDS
1 Scale Latin America is a big opportunity. The
region, including the Caribbean, is home to
almost 600 million people living in more than
4 Middle Class The market potential in Latin
America is not static. The middle class is
expanding throughout the region, although
8 TV The medium generally receives the highest
level of investment, but it’s been leveling. TV
is expensive and digital is growing rapidly
12 Choice Consumers generally like choice but it varies in
Latin America. Argentine economic policy and other
factors have produced relatively limited brand choice,
30 countries that together produce a GDP of at somewhat different rates. The number of throughout Latin America because of consumer while proximity to the US exposes Mexicans to wide
around $5 trillion, which would rank the area people now officially considered middle class interest and in some cases, like Argentina, brand possibilities. And Chilean consumers can choose
fourth worldwide, after Japan, in national improved by over 25 percent since 2006. government encouragement. the most luxurious European status cars or the least
5 9
output. expensive Indian or Chinese imports.
2 13
Confidence Not surprisingly, wealthier people Digital Internet investment is still relatively low
Diversity Latin America is many opportunities— feel more confident about the future—but not but growing sharply. PCs and laptops still Brand Presence Latin Americans generally think famous
and challenges. It extends from the southern by much. Among the middle class, 77 percent dominate for accessing the Internet. That’s brands are better. That’s true of half the population in
edge of the US to the northern edge of feel optimistic. That figure increases a few because of some spotty 3G coverage and the Colombia, and also in Brazil and Argentina where
Antarctica. The area experienced a complex points to 79 percent for the wealthy and drops high cost of data plans. people are most brand conscious.
10 14
history and brand marketers need to be aware for the lower income groups, but only to 67
not just of national differences but also of percent. Mobile Mobile Internet access is increasing. Brand Contribution Retail and beer receive the highest
6
regional differences within nations. It’s highest in Mexico where 19 percent of scores for Brand Contribution, which measures the impact
3
Price It remains important, which isn’t surprising the online users saying they’ve accessed the of brand alone on future earnings. Beers often receive
Markets Brazil, the “B” in BRIC, accounts for considering that much of the population has Internet via mobile in the past four weeks. high marks, retail brands not as often. The result reflects a
11
more than one-third of the value of BrandZ™ contended with poverty and even the wealthy close bond between customers and retail brands that have
Top 50 Most Valuable Latin American Brands. worry about radical fluctuations in inflation. As Social Latin Americans are social. And played a role in providing credit to people denied bank
And while Brazil is the region’s largest market, a long-term trend, however, more individuals social media is a good place for brands to credit until recently.
15
it’s not the only one. Chile, a relatively small report that their purchasing decisions aren’t find potential customers. Brazilians have an
nation of only 17 million people, accounts for always driven by special offers. average of 481 friends. In Colombia, Internet Loyalty Latin Americans overall say that when they find
7
one-fifth of the Top 50 brand value. users spend about eight hours weekly on social a brand they like, they stick with it. Mexico measures
Credit Credit is becoming more available networks, compared with a global average of somewhat lower in loyalty, which may be because in
as banks attempt to add new customers, 4.8 hours. Mexico brand choice is somewhat wider.
16
opening in areas underserved until recently.
Retailers continue to be key sources for credit, Growth Categories Luxury brands are discovering
particularly in Chile. Colombia. In Mexico, the growing middle class is tiring
of the multi-tasking life and looking for products that save
time and enhance personal health. The most represented
brands in the BrandZ™ Latin America Top 50 are retail
and financial institutions, which comprise about half of the
ranking.
17 Social Responsibility All nations are works in progress.
But that notion applies most acutely to Latin America.
Although more people are entering the middle class,
a wide gap remains in income and education levels.
Building a brand in Latin America is about investing in the
future of a region.
10 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 11
7. LATIN AMERICA INTRODUCTION
LATIN AMERICA
Brands Rise in Value Key Facts
and Importance
A context for sustained success Moving toward democracy
Land Area GDP
21.07 million Km2 2010 US$5.1 trillion
In the early nineteenth century, after the American 8.13 million Mi2 2000 US$2.1 trillion
Throughout Latin America brands are rising in value To successfully market brands and grow brand and French Revolutions, and around the time of Change +140 percent
and importance. value in Latam today it helps to appreciate some the Napoleonic Wars, a series of conflicts in Latin
of this context. America ended European rule. The transition to self-
High-value brands are present across most indigenous peoples who inhabited the land we government proved difficult. As nations developed
categories. Some are government owned or call America before the explorers, conquistadors during the nineteenth century they remained Population GDP per Capita
controlled, as often is the case in fast growing and missionaries arrived. hierarchical.
markets. Many result from entrepreneurial vision, Varied and complicated 2010 583 million 2010 US$8,698
risk and energy. But Latin America is more varied and complicated. In the middle of the twentieth century, governments 2000 514 million 2000 US$4,109
The term Latin America—or the acronym Latam— Other Europeans settled. The importation of African adopted assorted political ideologies, all promising Change +13 percent Change +112 percent
Latam’s largest markets, Brazil and Mexico, is easy shorthand for describing an area of the slaves and emigration from Asia and the Middle to deliver varying combinations of prosperity,
produce the greatest number of high-value brands, Western Hemisphere that comprises 8.13 million East added diversity. And the indigenous population equality and stability. Too often these attempts
but smaller economies also are well represented. square miles (21.07 million square kilometers) comprised many different peoples along with the were accompanied by the brutal repression of
Latin American brands often serve multiple local stretching over two continents and many islands Aztec, Mayan and Inca. the regime, the violence of the resistance or both. Median Age Foreign Direct Investment
country markets. A few operate globally. with more than 30 countries and almost 600
million people. Culture, geography, natural resources and climate By 2000, democracy flourished in most of Latin 2010 27.6 years 2010 US$113 billion
This vitality did not happen easily or quickly. vary tremendously in a region that stretches more America. Economies fluctuated, but were linked 2000 24.5 years 2000 US$86 billion
Centuries of economic and political tribulations Latam compresses into just two syllables a historical than 5,000 miles (8,000 kilometers) from the globally and regionally as exemplified by NAFTA Change +31 percent
proceeded this relatively stable period of when dichotomy of this region: that it’s a mix of two northern border of Mexico to the tip of Chilean (the North American Free Trade Agreement) and
more people share in the region’s prosperity and cultures, the Latin from European societies— Patagonia. History varies as well, although several Mercosur (Mercado Común del Sur) the common
enjoy access to merchandise and brands. primarily Spain and Portugal but also France—and common themes prevail. market of Argentina, Brazil, Paraguay and Uruguay.
Sources: CIA World Fact Book, United Nations, World Bank
14 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 15
8. LATIN AMERICA INTRODUCTION
Dramatic improvements Sustaining growth Latin America: 1492 attention shifted to the Atlantic coast and Buenos Great Britain, the US, France and Germany exerted
Each of the five countries examined in this report Is the progress inexorable? It never is, certainly not
A Short History The landing of Christopher Columbus in the
Aires developed as a commercial center. The
Portuguese established a formal government in
powerful economic influence in the region. Rising
commodity exports linked Latin America into the
illustrates both the dramatic economic and social
improvements happening in Latam and the
in Latin America. And not in an interdependent
world economy when weakness in the Eurozone, Paths Americas in 1492 changed everything. His
discovery prompted Spain and Portugal to send
Brazil in 1548. By the end of the century, the
economic importance of sugar production led to
global economy. Wealth and political power
remained concentrated among the elite.
challenges ahead. North America or Asia can reduce demand
for Latin American commodities, for example. toward expeditions to the New World to gain natural
resources, build trade networks and convert the
the importation of Africans as slaves and the growth
of São Paulo.
Prosperity
Argentina: The country recovered from the collapse population to Christianity. With the Treaty of
of its economy a decade ago. But the trauma of Sustaining the health of Latin America’s Tordesillas, in 1494, Spain and Portugal established Twentieth Century
economic devastation and hyperinflation continues economies depends on steadily growing and their respective claims to the new land with a line
to impact the Argentina’s efforts to expand the
economy and lift the population.
sharing prosperity. Assuring this future is an
important responsibility of government, but not
of government alone. It requires the participation
and Equality of demarcation. Independence
Events in Europe led to the independence of the
The Mexican Revolution ended in defeat but with
a constitution and eventually with the installation of
the Institutional Revolutionary Party (PRI) that ruled
Brazil: The “B” in BRIC experienced extraordinary of all segments of society. The best way for a Spanish and Portuguese colonies. Long disenchanted from 1929 to 2000. However stability eluded
economic growth with an economy that surpassed brand to profit from the transformation of Latin The history of Latin America is a synthesis Conquest with Spanish rule, the colonialists felt emboldened most of Latin America. Governments experimented
$2 trillion in GDP in 2010. But as the growth rate America is to be part of it. of unique national stories informed by a by the weakened power of Spanish king during with many of the “isms”—communism, socialism
slows, Brazil faces the need to improve infrastructure common timeline beginning with indigenous The conquest began with the arrival of Hernándo the Napoleonic Wars. The first independent nation and populism—and with military dictatorship. The
and education levels. civilizations and including European Cortés on the coast of Yucatán in the spring of was established in Haiti, in 1804. Independence region suffered through periods of brutal political
conquest, liberation and the struggle toward 1519. Supported by local alliances, Cortes movements led by Simón Bolívar and José de San repression and revolutionary violence. By the end of
Chile: A successful free market economy makes free, prosperous and equitable societies. defeated the Aztecs in 1521, renaming their capital, Martin liberated South America of Spanish rule by the century democracy emerged in most countries.
Chilean brands among the most widely recognized Tenochtitlán, Mexico City. A campaign against the 1826. Mexico separated from Spain in 1821.
in Latam. But economic improvements have raised Maya followed, and by 1526 Spain controlled most Brazil severed from Portugal without significant
expectations, especially for better and more of Central America. Francisco Pizarro defeated the armed struggle in 1822.
affordable education. Indigenous Civilizations Incas in Peru in 1533 and soon established the The New Millennium
city of Lima. Battles between the Spanish and the
Colombia: Life is more normal with the reduction of Since well before recorded history, diverse Incas continued for decades in the rugged Andes, In 2000, Mexicans defeated the PRI after 71
drug-related violence that intimidated Colombians indigenous peoples populated the land. ending with the ultimate defeat of the Inca Empire Nation Building years of uninterrupted rule. Argentine leadership
and discouraged international investment just a By around 8,000 years ago they already in 1572. implemented policies to rebuild the collapsed
few years ago. But sustaining that normality is key. were engaged in relatively sophisticated Following Independence Brazil remained in tact economy. Colombian governments reduced
agriculture. Eventually, the Aztecs and the Spanish and Portuguese Settlement but the Spanish holdings fractured into separate violence from drug trafficking and guerrilla warfare.
Mexico: Brands have flourished in Mexico in part Mayan controlled much of the area that is countries and most struggled in the transition from Brazil pursued parallel efforts to grow the economy
because of the close links between Mexico and the now Central American and Mexico. Much The Spanish initially focused on the Pacific territory, monarchical rule to self-governance. Conflicts over and narrow social inequality. Under both liberal
US. But brand growth would be even greater with of the Andean region became Inca domain. mining silver and shipping it to customers in China, national borders and civil wars ensued. Instability and conservative administrations Chile’s economy
less drug violence and more economic equality. in one of the earliest examples of global trade. As created power vacuums sometimes filled by military continued to expand. The region seemed on the
European demand for crops and leather increased, leaders. By the second half of the nineteenth century, path to greater and more widely shared prosperity.
16 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 17
9. LATIN AMERICA INTRODUCTION
Middle Class
Growth and
Latin
America is
Confidence
Drive interest in brands across categories
more than
twice the With the expansion of the middle class across
much of Latin America, international brands are
middle class in Latin America has expanded
dramatically. During the past five years, the middle
land area Jimena Urquijo
flourishing and local brands are emerging. class grew by over 25 percent and the lowest
income groups declined by 23 percent in eight
size of Vice President Business
Development
Brazil, with a GDP of over $2 trillion, is leading
the region’s development as a favorable place for
major Latin American markets—Argentina, Brazil,
Colombia, Chile, Ecuador, Mexico, Venezuela
Europe. Kantar Media – TGI Latin America brands to invest. The mid-size Colombian economy
is enjoying sustained growth for the first time in
decades. Smaller nations, such as Bolivia and
and Peru.
The reasons for this social and economic
Peru, are taking their place in a growing regional improvement vary somewhat by country, but
economy. Economic uncertainty in the Eurozone generally include government programs to reduce
and the US makes these developments even more poverty and social inequality; a sharp increase in
notable. global demand for Latin America’s commodities;
flexible exchange rates that help moderate inflation;
At a time when US politics is dominated by debate wider availability of credit, and trade policies to
about the top 1 percent and everyone else, the encourage investment.
LATIN
BRAZIL AMERICA EUROPE
8.46 million Km2 20.32 million Km2 10.18 million Km2
3.28 million Mi2 8.13 million Mi2 3.93 million Mi2
18 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 19
10. LATIN AMERICA INTRODUCTION
PEOPLE FEEL FINANCIALLY SEACURE PURCHASING POWER INCREASES
35% People Feel Financially Secure Purchasing Power Increases
60%
Middle Class Growth in Latin Economic growth varies by country People at all economic levels feel
America and policies confident 30%
60% 50%
Most countries have implemented programs to Latin American consumers feel confident 25%
improve the lives of their citizens. Brazil’s national about their economic situation. More than
50% 40%
social welfare program, Bolsa Família, provides three-quarters of middle class Latin Americans
20%
financial support for people in need in the form believe that their financial situation will be better
of a government ID that acts like a debit card. In a year from now, compared with 14 percent 30%
40%
Argentina, the Universal Child Allowance distributes who believe the situation will remain unchanged 15%
2006 money to the unemployed or underemployed. and only 6 percent who expect it to get worse. 20%
The level of optimism has increased significantly 10%
30%
2011 Government economic policies aided the over the past five years among people in all
expansion. Brazil imposes high taxes on certain economic groups. 10%
5%
20%
imported products in order to protect Brazilian
businesses and international companies that 0%
manufacture in Brazil. By taxing imported Chinese Consumers Feel Confident 0%
2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011 2006 2011
10% cars, for example, Brazil attempts to aid the US Argentina Brazil Mexico Colombia Chile PC Internet Usage Airline Trips
and European carmakers whose operations create Total AB C DE
employment and support local industries. People feel financially secure, especially in Brazil where Reflecting the rise of the middle class, PC ownership
Better 1 year more than 30 percent of the population reports feeling increased dramatically to over 50 percent of the population
0 from now 74% 79% 77% 67%
AB DE Similarly, foreign investment has helped to sustain secure compared with 25 percent five years ago. in 2011 from 30 percent in 2006.
C high employment levels and increased income in Worse 1 year
from now 7% 4% 6% 11% Source: TGI syndicated survey of urban centers in Argentina, Brazil, Source: TGI syndicated survey of urban centers in Argentina, Brazil,
In the five years between 2006 and 2011, the middle Chile, Mexico, Peru and Uruguay. Other nations, Colombia, Chile, Ecuador, Mexico, Venezuela and Peru. Colombia, Chile, Ecuador, Mexico, Venezuela and Peru.
class grew 26 percent and the lowest economic classes such as Argentina and Venezuela, have attempted Same 1 year
from now 16% 14% 14% 18%
declined 23 percent. to widen the middle class with less emphasis on Not surprisingly, people feel most financially secure
Source: TGI Latina 2011- Syndicated survey of urban centers in attracting foreign investment. Economic growth in in Brazil, the country that has enjoyed the greatest
Argentina, Brazil, Colombia, Chile, Ecuador, Mexico, Venezuela
and Peru.
these nations is more dependent on high commodity While wealthier people are somewhat more optimistic economic growth. The sense of financial security Brands factor into purchasing
prices. than the population overall, people in all income levels also has improved, if more moderately, in Argentina decisions
feel that their economic situation is improving. and Colombia. Mexico is an exception, probably
Overall, employment has remained high and Source: TGI syndicated survey of urban centers in Argentina, Brazil, because its strong ties to the US economy exposed The rise in purchasing power is accompanied by
general economic stability has moderated the Colombia, Chile, Ecuador, Mexico, Venezuela and Peru. the country to the financial crisis, and drug-related a growing concern with brands. More than half
debt and currency devaluations that periodically violence discouraged investment and tourism. In of consumers in Argentina, Brazil and Colombia
troubled the region in the past. Over the past few Chile financial security went down slightly. Chile's think that well-known brands are better. And
Socio-Economic years, Latin America’s economy grew by around
4-or-5 percent annually.
private pension system suffered an estimated 20
percent loss to the global financial crisis thereby
more than half of all consumers in Argentina and
Brazil look for a brand name when purchasing.
Classifications contributing to a lower sense of financial security.
With an improved sense of financial wellbeing,
Brazilians are the most loyal customers. About 65
percent say that when they find a brand they like,
they stick with it. Mexico again is an exception.
All Latin American countries use the same the middle class spends more. Internet usage has While the level of brand interest and loyalty is
classifications to signify socio-economic increased sharply. Over half of the population high in Mexico, it’s relatively lower than in the
status: wealthier individuals are designated now owns PCs. The rise in disposable income other countries. One explanation for this anomaly
AB; poorer, DE; those in the middle class are and confidence is also illustrated by the increase is that Mexican consumers have been exposed to
C. Methodologies for assigning individuals in airline trips. international brands for a long time because of
to the three classifications vary by country. the nation’s proximity to the US.
Argentina uses a point system to weigh factors
such as income and occupation, for example,
while Colombia correlates the socio-economic
classification with area of residence.
20 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 21
11. LATIN AMERICA INTRODUCTION
Purchasing Power Increases EDUCATION Levels Lag
Education LEVELS LAG
Brand Consciousness Expands SPECIAL OFFER INTEREST DECREASES 70%
70% 80%
60%
75%
71%
50%
60%
I always look for special offers
70%
40%
67%
50%
I like to change brands often, 65%
30%
to get variety and try things out
40% I always look for the brand name
60% 20%
on the packet
55% 10%
30% Generally, I plan ahead when buyng
expensive things
50% 0%
When I find a brand I like, I stick with it 2006 2011 Brazil Russia India China US Europe
20%
Latin America Primary/No Education Intermediate University Entered or Complete
I think that well-known brands are better
10% Reflecting the increased sense of economic security, fewer One-third of Brazil’s population has only a primary
consumers feel compelled to seek sale-priced items. school education, or no education. This reveals Brazil’s
Source: TGI syndicated survey of urban centers in Argentina, Brazil, most serious challenge in the near term, and its biggest
Colombia, Chile, Ecuador, Mexico, Venezuela and Peru. hurdle in achieving sustained levels of social and economic
0%
development.
Argentina Brazil Mexico Colombia Chile Source: TGI syndicated survey of urban centers in Argentina, Brazil,
Colombia, Chile, Ecuador, Mexico, Venezuela and Peru.
Across Latin America consumers are paying attention to Bubble or long-term reality
brands. Generally, they prefer to stick with a brand they
like rather than experiment. These changes are significant—the rise of the middle The aging infrastructure needs to be improved. And
Source: TGI syndicated survey of urban centers in Argentina, Brazil, class, the improvement in financial confidence, the people need to receive more extensive education.
Colombia, Chile, Ecuador, Mexico, Venezuela and Peru. increase in consumerism and concern with brand. While education levels have improved slightly since
But are these changes permanent? Predictions are 2006, even in Brazil, the region’s most prosperous
Related to this growing interest in brands and always dangerous, especially in Latin America, a nation, only about a quarter of the population has
underlying brand loyalty, Latin American consumers region known for its economic and political volatility. any university education. That’s the lowest level of
are shopping slightly less for special offers. In 2011, any of the BRIC economies and less than half of
67 percent of consumers always looked for special The balance between economic expansion and the level in the US or Europe where, respectively,
offers, down from 71 percent in 2006. While intolerable inflation can be difficult to modulate. 59 percent and 55 percent of the population has
the change is small as a percent, the direction is But the social and economic improvements are some university education.
important because it suggests that as consumers feel fundamental and should foster greater stability. Latin
more secure, they become willing to spend more America needs to address at least two underlying These improvements are requisite to build and
for the products and services that they need and structural weaknesses, however. sustain prosperous, competitive and just societies.
want. And bargain hunters may be simultaneously
trading up. TGI is a global network of market research
studies providing invaluable consumer insights.
www.globaltgi.com
22 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 23
12. LATIN AMERICA INTRODUCTION
Great Digital
Opportunity Juan Alexander
Awaits Brands
Londoño
Regional Manager
TNS Digital, Latin America
Consumers aspire to expand Internet presence Social network growth potential Great opportunity
Traditionally Latin America has been a continent Latin Americans also are keen on sharing videos,
Internet penetration relatively low of the haves and have-nots. However, in recent with both consumer and professionally created
years there have been huge strides to bridge this videos extremely popular. In fact, 72 percent of
When it comes to the Internet, Latin Americans can Today, Latin America has relatively low Internet Several factors account for the relatively low level of gap with a growing middle class and increasing Brazilians view videos on YouTube at least once a
best be described as “Aspirers.” penetration, compared with more developed internet access via mobile phones in Latin America. consumer purchasing power. Consumers who week. Brands have the opportunity to create their
markets, with only a couple of countries approaching First, all markets in Latin America have suffered were previously excluded from conversations in own engaging videos to be shared by consumers as
That’s a TNS Digital Life term for people who the 50 percent mark. While many Internet trends from infrastructure issues and poor coverage of areas such as politics, education, brands and well as to encourage consumer generated content.
are relatively new to the Internet but eager to are consistent with other developing markets, some 3G networks. Second, high costs of data plans products, now have a voice, and this voice is being If brand-made videos are sufficiently appealing,
become more involved. “Aspirers” is one of our behaviors parallel more developed markets, such and smartphone devices have impacted heavily increasingly expressed through the digital arena. consumers will share them with a large percentage
six Digital Lifestyles that also include, for example, as the US and Europe. on levels of usage, especially in markets such as of the online population.
“Functionals,” people who use the Internet for Brazil. However, prices of device and data plans It is therefore no surprise that social networking has
practical reasons like email, and “Influencers” In Latin America, as in other fast growing markets, are falling, with excellent offers for data even on had a huge impact in Latin America, especially Social networks, along with brand websites, are
who spend much of the day online. the PC/laptop is still the dominant device for pre-pay plans. This suggests that Internet access considering the social nature of many Latins. also the most important digital touch points on the
accessing the Internet, with mobile devices failing via mobiles is due to explode in the near future. Brazilians, for example, have an average of 481 path to purchase in Latin America, with nearly
In Latin America, about 38 percent of the population to make an impact. Mexico has the highest levels friends on social networks, one of the highest half the population engaged at any stage. Not
are “Aspirers” compared with 15 percent of mobile usage with 19 percent of the online numbers in the world, offering major opportunities surprisingly, offline touch points, such as TV and
worldwide. These consumers access the Internet population accessing the Internet by mobile in for brands to share their message with large groups word of mouth, still dominate media investment
via Internet cafés and/or at home. They are highly
engaged but have not been as active as they would
like to be, at least until now.
the past four weeks. At the same time, however,
Mexico’s PC legacy matches that of the US, its
northern neighbor with which it maintains close
TNS Digital Life of consumers.
In Colombia, Internet users are spending up to
in Latin America. However, digital’s enormous
potential points to the need for brands to create
integrated offline/online marketing approaches.
cultural and economic ties. Digital Life is the largest global study of eight hours weekly on social networks, significantly
Brands face an enormous opportunity in Latin people’s online attitudes and behaviors. Based higher than the global average of 4.8 hours.
America during the coming months and years on conversations with over 72,000 people in Social networks also act as aggregators of many
as these highly engaged new consumers, the 60 countries, TNS Digital Life provides insights services including messaging, chat, sharing photos
“Aspirers,” increase their Internet usage levels that help marketers develop effective online and videos and playing games. Therefore social
across all activities and platforms. strategies. networks offer an excellent first point of call for
brands to communicate with the online consumer.
www.tnsdigitallife.com
24 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 BrandZ™ Top 50 Most Valuable Latin American Brands 2012 25
