2. Welcome!

3. Let’s start with a short description of the most rigorous brand valuation method in the World

4. Brand Value
Brand Contribution
Financial Value X =

5. X = The secret ingredient Brand Value Brand Contribution
Financial Value X =

6. WHAT IS ‘BRAND’?
CLOSE YOUR EYES!

7. DO NOT THINK OF…

8. Valuable brands have STRONG RELATIONSHIPS with consumers and are MEANINGFULLY DIFFERENT

9. The Brand Relationship is like dating…
Now a very strong relationship
Bonding
A strong liking is developing
Advantage
The first date goes well
Performance
At first you are cautious
Relevance
Relationships start with awareness
Presence

10. More valuable brands have stronger relationships
All LatAm
Top 50 LatAm
Bonding
More valuable brands have stronger relationships
Advantage
Performance
Relevance
Presence
(6.977 brands)

11. LatAm compares favourably with Global brands
Top 50 LatAm
Top 50 Global
Bonding
LatAm compares favourably with Global brands
Advantage
Performance
Relevance
Presence

12. Bonding Advantage Performance Relevance Presence Top 50 LatAm
Top 50 China
Top 50 Global
Bonding
Advantage
Performance
Relevance
Presence

13. Bonding Advantage Performance Relevance Presence Top 5 LatAm
Top 5 Argentina
Bonding
Advantage
Performance
Relevance
Presence

14. The POWER of the brand:
Brand Contribution

15. Bonding Bonding only 51% Advantage Advantage only 25% Performance
Coca Cola Argentina
Bonding
Bonding only 51%
Advantage
Advantage only 25%
Performance
Relevance
Presence

16. Coca Cola Argentina Bonding only 51 76 Advantage only 25 14
Customers %
Value %
Customers %
Value %
Bonding only 51 76
Advantage only 25 14
Performance/
Relevance/ 23
Presence 10
No Presence 1

17. Brand Contribution Percentage
Coca Cola Argentina
Brand Contribution Percentage
These people account for the vast majority of sales because they are more loyal to the brand.
Bonding
Advantage
Performance
Relevance
Presence

18. The Brand Contribution effect…= X X =

19. Example from Global Valuations
Brand Contribution effect:
Example from Global Valuations

20. BRAND CONTRIBUTION AVERAGE
BRANDZ™
value
$23bn
Interbrand
value
$28bn
Values very similar

21. $13bn $28bn BRAND CONTRIBUTION LOWER
BRANDZ™
value
$13bn
Interbrand
value
$28bn
Interbrand fails to take account of lower Brand Contribution

22. $183bn $34bn BRAND CONTRIBUTION HIGH
BRANDZ™
value
$183bn
Interbrand
value
$34bn
Interbrand fails to take account of high Brand Contribution

23. GLOBALBRAND VALUE BRANDZ™ 4 3 $183BN Interbrand $34BN $16bn $9bn 2006
BRAND CONTRIBUTION 4
BRAND CONTRIBUTION 3
Interbrand
$34BN
$16bn
$9bn
2006
2012

24. STRONG BRANDS PERFORM BrandZ Global Valuations
37.5%
0.4%
S&P 500
APR 06
MAY 12

25. What drives Brand Contribution?
Global LatAm Local
Top Top 50 LatAm
Popularity
Affinity
Difference
Price
Source: BrandZ (Index Average = 100)

26. Top Brands are more trusted, recommended and more desirable
Global LatAm China
Top Top Top 50
Trust
Recommendation
Desire
Source: BrandZ (Index Average = 100)

27. Character of Top Brands
Global LatAm China
Top Top Top 50
In Control Friendly Wise
Assertive Kind In Control 107
Creative Generous Friendly
Source: BrandZ (Index Average = 100)

28. Before we see some results…
Let’s have a short QUIZ
(5 questions)

29. Stand up please!
If you get the answer wrong you will need to sit down again…

30. Q1. BRAND CONTRIBUTION
Some brands generate more than their fair share of financial value because the brand contributes so much.
Which one of these has the greatest Brand Contribution (in Argentina)?
Guinness
Heineken
Quilmes 

31.  Q2. BRAND TRUST & RECOMMENDATION
Brands that are BOTH trusted by all and recommended by their users have heritage and contemporary relevance.
Which one of these has the greatest TrustR (in Argentina)?
Ford
Honda VW 

32. Q3. BRAND DIFFERENCE
Brands that are different can have an advantage over others.
Which one of these is rated most different (in Argentina)?
Apple iPhone
Nokia
Samsung 

33. Q4. BRAND DESIRE
Brands that create desire tend to justify their price premiums and can generate greater profits.
Which one of these has the greatest Brand Desire(in Argentina)?
Carrefour
Jumbo
Walmart 

34. Q5. CHARACTER CLARITY
Brands that have a distinct and defined character tend to be stronger.
Which one of these has the clearest Character(in Argentina)?
Andes
Eki
Tai 

35. Anyone still standing is a WINNER!

36. And brands that score well on these things will also be winners:
Clear Character/Personality
Recommendation by users
Affinity/Desire/Popularity
Trust
Different

37. And now, some facts about the most valuable brands…

38. Combined value ($US) of Top 50 brands
1,845bn
What we did: we sum brand value of top 50’s most valuable Global, Chinese, Latam and Brazilian brands (We couldn’t do the same as for others countries because we only have top 50’s for Brazil, not for Mexico, Chile and other).
First to try to put all the valuation into a global context, we could see that the importance of the top 50 Most valuable Latan brands is less than 50% of China, and this is similar to GDP importance. Besides that, both China and Latin American has still a great space to growth, since their GPD per capita is extremely lower than developped economies.
But both China and Latin American can grow a lot in brand values as theur brands are starting internationalization process, making their brands widespread all over the world.
When compare to Brazil, there is a great potential for Brazilians brands to grow. Both in terms of using branding to be a competitive advantage and also to have their companies become public trade in capital markets.
311bn
136bn
60bn
Global
China
LatAm
Brazil

39. Contribution of countries (% of $US brand value in Top 50)
What we did? We calculated the importance of each country in the ranking composition.
My first conclusion is that there is very few Real Latin american brands. Of course that when you some brands with international presence, such as Petrobras, Cemex, Vale, but in reality they don’t work as a Latin American brand, but as a Brazilian and Mexican brand.
Secondly I would say that Brasil and Mexico are the most important brands. Brasil with some advantages due to the fact that two important brands are commodities – Petrobras (Oil) and Vale (mining) – and as such, an strong relevance.
Chile is a good surprise for all of us. Chile has opened its economy to global competition earlier than others Latin American Countries. The country is extremely strong in Retail, with brands such as Falabella, Líder, Almacén Paris. All these retail brands have their own financial institutions. Also, Lan is a very important Chilean brand, and after the acquisition of Brazilian TAM, they have a great potential to be a very important player in Latin American.
Colombia has an important importance as a whole, but also has Comcel, a very traditional Colombian brand, as one of the most valuable. Comcel also belongs to Carlos Slim’s brand portoflio, and in an recent decision, Claro will replace the brand ComCel (They will kill the brand Comcel). This will be a tremendous challenge for Claro. Second most valuable brand is a Oil brand, Ecopetroil. Third is Bancolombia, very well positioned brand with high brand contribution when you compare the category Financial Institution as a whole.
Argentina – due to all economy problems that Argetina is facing, very few valuable brands, and the most valuable YPF recently faced intervention of Government and took the shares from Spainh Repsol, which created a huge problems for investing in the country.

40. How LatAm compares (% value)
LatAm China Global
Financial
Telecoms
Retail
B2B
Consumer Goods
Technology
Other
We classified Brand value for each countries into categories:
B2B – Oil Mining, Steel, Cement, industry – High dependence of this sectors in commodities and b2b Relationship. Very important in Argentina and Brasil. In Mexico, Pemex is a monopoly
B2C – Consumer goods – Brazilian and Mexican brands play a more important role in brand value composition. In others a lot of global and international brands are relevant for the others’ markets
Financial Institution – Colombia, Brazil and Mexico brands are very relevants for brand valuation composition.
Retail – Clearlly Chile is very developed in this industry.
Telecom – Clearly relevant for Colombia, Argentina and Mexico.

41. How countries differ (% value)
Brazil Mexico Chile Colombia Argentina
Financial
Telecoms
Retail
B2B
Consumer Goods
Other
We classified Brand value for each countries into categories:
B2B – Oil Mining, Steel, Cement, industry – High dependence of this sectors in commodities and b2b Relationship. Very important in Argentina and Brasil. In Mexico, Pemex is a monopoly
B2C – Consumer goods – Brazilian and Mexican brands play a more important role in brand value composition. In others a lot of global and international brands are relevant for the others’ markets
Financial Institution – Colombia, Brazil and Mexico brands are very relevants for brand valuation composition.
Retail – Clearlly Chile is very developed in this industry.
Telecom – Clearly relevant for Colombia, Argentina and Mexico.

42. Now it is time to reveal the most valuable brands