Peter Walshe BrandZ Global Director Millward Brown

Peter WalsheBrandZ Global DirectorMillward Brown

Let’s start with a short description of the most

rigorous brand valuation method in the World

Financial Value

X =Brand

ContributionBrand Value

Financial Value

X =Brand

ContributionBrand Value

The secret ingredient

WHAT IS‘BRAND’?

“A strong brand is not the same as a business or a trademark. A brand – global or local - derives its value from creating a strong relationship with consumers.”

Cierra los

ojos!

WHAT IS‘BRAND’?

DO NOT

THINK OF…

Valuable brands haveSTRONG RELATIONSHIPS

with consumersand are

MEANINGFULLY DIFFERENT

The Brand Relationship is like dating…

Relationships start with awareness

At first you are cautious

The first date goes well

A strong liking is developing

Now a very strong relationship

Presence

Relevance

Performance

Advantage

Bonding

Advantage

Performance

Relevance

Presence

Bonding

55%

40%

33%

25%

5%

82%

67%

56%

45%

13%

Top 50 LatAm

All LatAm

(6.977 brands)

More valuable brands have

stronger relationships

82%

67%

56%

45%

13%

Top 50 LatAm

73%

60%

49%

41%

13%

Top 50 Global

LatAm compares favourably with Global

brands

Advantage

Performance

Relevance

Presence

Bonding

The POWER of the brand:

Brand Contribution

99%

84%

77%

76%

50%

Coca Cola LatAm

Bonding only 50%

Advantage only 26%Advantage

Performance

Relevance

Presence

Bonding

Advantage only

Performance/

No Presence

Coca Cola LatAm

Bonding only

1

23

26

50

Customers %

Relevance/ Presence

Customers %

010

17

72

Value %

Value %

99%

84%

77%

76%

50%

Coca Cola LatAm

Brand Contribution Percentage

These people account for the vast majority of sales

because they are more loyal to the brand.Advantage

Performance

Relevance

Presence

Bonding

X

=

X=

The Brand Contribution effect…

Brand Contribution effect:

Example from Global Valuations

Interbrandvalue

$28bn

BRAND CONTRIBUTION AVERAGE

Values very similar

BRANDZ™value

$23bn

Interbrandvalue

$28bn

BRAND CONTRIBUTION LOWER

Interbrand fails to take account of

lower Brand Contribution

BRANDZ™value

$13bn

Interbrandvalue

$34bn

BRAND CONTRIBUTION HIGH

Interbrand fails to take account of high Brand Contribution

BRANDZ™value

$183bn

GLOBALBRAND VALUE

2006 2012

Interbrand

BRANDZ™ $183BN

$34BN

$9bn

$16bn

BRAND CONTRIBUTION

3

BRAND CONTRIBUTION

4

What about investing your money in strong

Brand Contribution?

STRONG BRANDS

STRONG BRANDS PERFORM BrandZ Global Valuations

APR 06 MAY 12

37.5%

0.4%

S&P 500

What drives Brand Contribution?

Global LatAm Local

Top 50 Top 50 LatAm

Popularity 302 208117

Affinity 192 139 86

Difference 107 42 90

Price 35 20 210

Source: BrandZ (Index Average = 100)

Top Brands are more trusted, recommended and more desirable

Global LatAm China

Top 50 Top 50 Top 50

Trust 105104 110

Recommendation 104 102106

Desire 112112 110


Character of Top Brands

Global LatAm China Top 50 Top 50 Top 50

In Control 109 Friendly 106Wise 108Assertive 107 Kind 105 In Control 107Creative 105 Generous 104Friendly 105


Before we see some results…

Let’s have a short QUIZ(5 questions)

Stand up please!

If you get the answer wrong you will need to sit down again…

Q1. BRAND CONTRIBUTIONSome 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)?

GuinnessHeinekenQuilmes

Q2. BRAND TRUST & RECOMMENDATIONBrands 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 Brazil)?

AllianzPorto SeguroSul America

Q3. BRAND DIFFERENCEBrands that are different can have an advantage over others. Which one of these is rated most different (in Colombia)?

BingTaringaWikipedia

Q4. BRAND DESIREBrands that create desire tend to justify their price premiums and can generate greater profits.Which one of these has the greatest Brand Desire(in Mexico)?

BanamexMexicana de AviacionTelmex

Q5. CHARACTER CLARITYBrands that have a distinct and defined character tend to be stronger.Which one of these has the clearest Character(in Chile)?

ChryslerFordToyota

Anyone still standing is a WINNER!

And brands that score well on these things will also be winners:

Clear Character/PersonalityRecommendation by usersAffinity/Desire/Popularity

TrustDifferent

AmplifyMeaningfully

DifferentExperience

Define

ValueGrowth

How brands drive value growth

Different

MeaningfulSource: LatAm 1,340 brands 2010-2011 (Average = 100)

Brand Contribution

168

Meaningfully Different get more sales because of brand

Brand ContributionDifferent

MeaningfulSource: LatAm 1,340 brands 2010-2011 (Average = 100)

168

129

104

121

109

7853

76

93

Meaningfully Different get more sales because of brand

Meaningfully Different

All brands LatAm

30%All brands

worldwide

30%


Local brands LatAm 27%

International brands LatAm 32%


LatAm Top 50 67%

Global Top 50 68%

And now, the most valuable brands…

Combined value ($US) of Top 50 brands

Global China LatAm Brazil

311bn

1,845bn

136bn 60bn

Now, it really is time to reveal the most

valuable brands

Top brand in each country

Contribution of countries(% of $US brand value in Top 50)

Brazil33%

Mexico24%

Argentina3%

Chile20%

Colombia17%

Latin American3%

Number in Top 50

Brazil14Mexico13Chile12Colombia 8Argentina 2LatAm 1

How LatAm compares (% value)

LatAm China Global

Financial 2543 13

Telecoms 1922 15

Retail 19 3 5

B2B 18 8 13

Consumer Goods 16 1020

Technology - 1127

Other 3 3 7

How countries differ (% value)

Brazil Mexico Chile Colombia ArgentinaFinancial 32 29 13

48 4Telecoms 4 18 -

29 23Retail 8 22 59

5 -B2B 21 4 12

18 66Consumer Goods 26 27 13

48 4Other 9 - 14

- -

And how about investing in these brands?

STRONG BRANDS

STRONG BRANDS LESS VULNERABLE BrandZ LatAmValuations

May 11 June 12

-16.5%

-23.6%MSCI

LatAm

Finally…

(10 thoughts)

LatAm ‘Top 50’ (should have some Peru brands in it!)

Countries across Region are very different – but a STRONG BRAND is still a great investment wherever you are

A strong brand gets its value from creating a UNIQUE RELATIONSHIP with consumers

LatAm Top 50 are AS STRONG as any other Top 50 in the World

Many local brands can learn lessons from the Top 50 and be less price driven and more MEANINGFULLY DIFFERENT

A DISTINCTIVE brand is more likely to attract consumer passion

Brand relationships are built on experience of the brand. A genuinely good experience is VALUABLE

Do not worry about POLARISING your audience, success in NOT about being all things to all people

As a brand be TRUE to yourself throughout the organisation, with your suppliers and retailers, so that it eventually affects the customers

Passionate users of your brand are your BEST ADVOCATES and should be looked after

‘BUZZ’ means Money

$511bn

$112bn

Value

Earned Buzz

Top 100 Global brands

Muchos Gracias!

Peter Walshe BrandZ Global Director Millward Brown

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