2015 marks ten years since the first BrandZTM Top 100 Most Valuable Global Brands study was conducted. In the intervening decade, Millward Brown has researched and valued over 100,000 brands across 50 country markets, to identify the drivers of long-term brand value growth.
With each year and each BrandZTM Ranking report published, new insights emerge that help equip brands – especially the aspiring newcomers from the fast-growing markets – to learn from the present and build for the future.
GROWING BRANDS IN ALTERED CIRCUMSTANCES
For most of the countries featured in the BrandZTM Top 50 Most Valuable Latin American Brands 2015, the past year has seen a continuation of the economic challenges that began to emerge in 2013/14. For the past two years, the Latin American region has presented relatively low GDP growth rates of around 2%. China’s slowing economy and turbulence in the global oil industry have been contributory factors, but political unrest and uncertainty have also played their part.
However, even in these testing times, companies that have strong brands remain more valuable than the average f the market. This is illustrated by the fact that the Top50 LatAm portfolio increased 2% in USD, while almost all economic indices such as GDP, Country risk and Company’s market value showed a substantial decrease.
So, what’s the secret to the strong performance of these brands? There is no single secret, but what is clear from this report is that many of them are applying some or all of the following principles in order to create differentiation and value:
Be close to consumers
Successful brands are not limiting themselves to promoting just their features and benefits but instead are aiming to reflect the same values as their consumers. In looking at life through their customers’ eyes, they are better able to innovate in ways that will really resonate with them. This may translate into the development of new formats, new sales channels and service centers, or new sizes or varieties that can maintain the loyalty ties that the brand has been building over time.
Create a dialogue through digital
The voice of the consumer is now clearly heard and amplified through multiple channels: where once brand communications were one-way, now social media gives each individual the power to praise or reproach. This shift from monologue to dialogue creates new possibilities but also pitfalls. The most successful brands are embracing the transparency that these open channels of communications provide and using it to build stronger, longer-term relationships with their customers.
Creating or supporting shared experiences that unite people and make them feel happy build brand equity and encourage consumers’ loyalty.
The success of this approach is clearly demonstratedbythebrandinthe number one spot of the BrandZTM Top 50 Most Valuable Latin American Brands 2015, Skol. Investment by Skol has been heavily focused on relationship building through the interests of the brand’s target audience, in particular through sponsorship of music festivals.
Faced with household budget constraints, consumers need good reasons to validate their purchasing decisions. A clearly communicated
brand proposition that reflects its understanding of the consumers’ needs, and respect for their freedom to choose, go a long way towards delivering the reassurance these consumers are looking for.
This report is collaboration by leading brand experts from WPP companies around the LatAm region. Their insights and thought leadership essays provide strategic understanding and tactical advice for brands seeking to grow their presence and improve their brand value.
WPP companies have been working
in Latin America for nearly 100 years. Within these companies are specialists in advertising; insight; branding and identity; direct, digital, promotion
and relationship marketing; media investment management and data investment management; and public relations and public affairs. All share a passion and determination to use their creativity and resources to establish and build strong, differentiated brands that deliver lasting shareholder value.
Collectively our experts bring global knowledge based on our WPP presence in 112 countries. By connecting all this talent and wisdom, we explore global trends and insights that help our clients in useful and unique ways.
The backbone of all this intelligence remains the WPP proprietary BrandZTM database, the world’s largest, customer-focused source of brand equity knowledge and insight, and the BrandZTM brand valuation methodology of Millward Brown, a WPP company.
Other titles in our industry leading BrandZTM resource library include:
the BrandZTM Top 100 Most Valuable Global Brands 2015, the BrandZTM Top 100 Most Valuable Chinese Brands 2015; the BrandZTM Top 50 Most Valuable Indonesian Brands 2015.To download these and other BrandZTM reports, please visit www.brandz.com. For the interactive BrandZTM mobile apps go to www.brandz.com/mobile.
To learn more, please contact any of the WPP companies that contributed expertise to this report. Turn to
the resource section at the end of this report for summaries of each company and the contact details of key executives. Or feel free to contact me directly.
CEO The Store WPP, EMEA
Twitter: davidrothlondon Blog: www.davidroth.com