What About Brazilian Brands English

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 What about Brazilian brands?  Interbrand evaluates the paths and challenges of Brazilian brands in a global market

Transcript of What About Brazilian Brands English

  • What about Brazilian brands? Interbrand evaluates the paths and challenges of Brazilian brands in a global market

  • What about Brazilian brands01

    Brazil talking to the world

    Beautiful by nature

    Blessed by God

    Fun-loving people

    A flair for improvisation and flexibility

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    Index

  • What about Brazilian brands 02

    It is hard to say when exactly Brazil first looked at the rest of the world and decided it had to carve out its own brand and personality, but most would say that the seeds were likely planted in 1958, when it won its first World Cup in Sweden. At that moment, Brazil announced to the world (amid widespread envy), its swing, its classy lifestyle, and its soccer stars Garrincha and Pel.

    Perhaps the first Brazilian brand to be truly internationalizedBossa Novawas launched in the same year by two brilliant young men, Tom Jobim and Joao Gilberto. Bossa Nova soon evolved beyond a musical trend to become a whole attitude of life. The new and more modern Brazil was knocking on the door: even President Juscelino Kubitschek was dubbed as bossa nova. In retrospect, the music, in some ways, was an early indicator of the optimism that Americas

    boom years would spread across the world only a few years later.Juscelino Kubitschek (aka JK) was not blind to this flood of opportunity that the U.S.s prosperity brought with it. Noting the enormous potential that lay in furthering Brazils international growth, he opened up the economy to foreign investors and encouraged new industries to relocate to Brazil. For the first time ever, automobiles were manufactured entirely in Brazil; VW Beetles rolled off the lines in 1958, in the ABC region of So Paulo. Amid the euphoria of these boom years, President Kubitschek campaigned on his famous catchphrase Fifty years in five. He also asked Oscar Niemeyer, a member of the cultural avant-garde, to design the new vision of the capital of Braslia in a location that had nothing to do with beaches, or with any tropical clich involving bananas.

    Brazil talking to the world

    Brasil talking to the world

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    Dos and donts for global-brand companies

    Treat your brands as valuable assets

    Have clear notion of how your brands function

    Manage the brand cycle efficiently (strategy, identity,

    engagement, experience, tracking)

    Devise consistent long-term strategy

    Inspire strong involvement from your employees

    Innovate and create demand

    Dont follow benchmarks (they are the benchmarks).

    Be highly resilient and capable of adapting to different

    markets, consumers, and situations in the economy.

    Dont compete in your own category - always think beyond

    the box - in line with consumer motivations.

    Brazils World Cup win enabled Brazilians to drop their mutt complex. As journalist Joaquim Ferreira dos Santos wrote in his book Happy 1958, The Year That Was Not Supposed to End (Feliz 1958, o ano que no devia terminar), pride became a fashionable word.

    And now, fifty years after the bossa nova period in Brazil came into fruition, our brand (and bossa nova itself) is once again a rising global star. Brazil is talking to the world, telling people that it is fun loving and highly adaptable, with a flair for improvisationbut always backed by numbers, strategy and lots of hard work.

    Looking closer The aim here is to ask what certain Brazilian brands are doing in relation to what is happening in other countries. Which sectors and markets are more promising? What challenges must they tackle? Its only a matter of time before Brazilian companies make the Best Global Brands rankingwhat do we need to do to make this happen?

    Best Global Brands earn at least one third of their sales revenues from other countries; their brands play a key role in purchasing decisions, and they are recognized internationally. The potential is there, so now it is just a matter of linking the numbers to the perceptions. Brazil has strong and consistent brands, but ours numbers are not impressive yet. In other cases, the companies are very strong and sell well, but have no brand.

    Over the past two years, Interbrands Brazilian office has seen a high level of demand from companies that want to adapt their brand strategy and identity to the global scenario. The need for a cross-border outlook is now widely accepted, even while businesses continue to run operations locally. Our time has finally come: Brazil is now playing the international circuit, because yes, we have a global attitude, and also a number of other essentials too (see sidebar).

    And we are using the lyrics from a musical portrait of Brazil to present the things we do best, that place us under the spotlight and give us a chance to get some major progress in terms of economics, presence, influence and image. Blessed by God, beautiful by nature, gifted with flair and flexibility for tackling any challenge this is how we are translating the Brazilian identity when we set about building our brands, not without a certain dose of poetic license, of course. As a nation, we know how to work the positive side of a stereotype. We have acquired technical expertise too, then conquered and refined it. We have learned how to ensure quality, and we surely have the knack of finding quick and creative solutions to any situation. And we have the results that show our approach is right. Bring on the bossa! And keep it coming!

  • 01.Beautiful by nature

    4What about Brazilian brands

  • 5 What about Brazilian brands

    01.Beautiful by nature

  • 01.Beautiful by nature

    6What about Brazilian brands

    Being beautiful is our most celebrated stereotype. Having naturally beautiful

    flora, fauna and inhabitants, Brazil soon learned to export its charms. If you

    take a look around, it would be impossible to portray our national character

    without featuring the abundant curves of our women, mountains, beaches

    and rivers. Curves are oozing out of bikinis, making waves on the ocean

    and poetry in Niemeyers architecture. They are paving the Copacabana

    promenade, framing picture-postcard views of Corcovado and Guanabara

    Bay, and inspiring songs and new trends in behavior.

    Beauty comes with the territory, and appreciating beauty is our calling in life.

    This is evident in everything from ou inarguable expertise in bikinis, to our

    way of flaunting our body, and our individual interpretations of the hang of

    garments (taking into account the high level of skin exposure required due to

    the heat). Beauty lives alongside the colors in Brazils sunlight and beaches,

    where aesthetic democracy reigns supreme.

    In the fashion and beauty industries, brands have evolved all of these

    juicy clichs, transforming them into an innovative and contemporary

    professionalism. While we cant boast the worlds unanimous admiration

    of French haute couture or its assessment of Italys impeccable taste,

    which date back centuries, in a short period of time, we have been able to

    create a language that can travel the world and incite desire. We are on the

    worlds agenda for fashion events, we are exporting models, and now we are

    exporting brands too. (Not many of them yet, it is true.) But Brazilians have

    a lively eye for detecting demands and responding to them. Their responses

    are alert and refined. Now their strategy must also be refined. The behavior of

    individual markets has to be understoodand the hearts and minds of new

    consumers, won over, to ultimately sell more.

    Brazilian fashion isnt limited to dress (or undress when it comes

    to the beach). Dresses, bikinis and sandals define attitudes, inspire

    behaviors and create a lifestyle. The Brazilian beach is a brand on

    its own. The bikinis get lower, the tops get higher and the low-rise

    trousers have hips to hug.

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    Highlight shoes, a national concern

    Brazils footwear industry has long catered to the worlds yearnings for shoes. Some Brazilians may even have begrudged seeing local items of the highest quality being packaged under recognized brands for export while they never get a chance to buy these prime products themselves. But the gig wheel goes on turning, and history is being rewritten. Brazilian shoe brands are now on female feet everywhere from Tokyo to Los Angeles. Theyve earned the privilege of ushering in new styles that highlight this simplicity by way of versatilityan iconic feature of our culture.

    Grendene

    This is another story that begins with an extremely popular and fashionable product, a good value for money ratio, and a lesson in diversity and sensibility when it comes to understanding what consumers want. Grendene started impacting fashion in 1979 when they launched revolutionary sandals made of injected plastic: the Melissa Aranha. It was the first footwear company to have product placements on TV soap operasits shoes were worn by Sonia Bragas character in Dancing Days. This broadened the companys outlook and it began to innovate and hunt for export markets. Grendene expanded its product portfolio and grew into a giant.

    From the outset, the company realized it had to think big, and it was selling sandals all over the planet by the mid-80s. In all the key countries, the top stores stocked Grendenes lines Melissa, Ipanema, Ipanema Gisele Bundchen, Rider, Grendha, Grendene Kids, Ilhabela, and a series of childrens character shoes.

    Currently exporting to 90 countries, Grendene shipped 40 million pairs of shoes in 2007 and posted R$ 230 million sales revenues. Of all its brands, the bestsellers are Ipanema Gisele Bndchen and Melissa, which was Grendenes wager on internationalization, making the brand an example of management and resilience for its global market positioning.

    The Melissa brand can be found at thousands of points of sale in 50 countries. It is sold by stores like the charming Colette in Paris, and constantly featured by European and American fashion designers and journalists. The strategy is to sell audacity cast in plastic by inviting designers from all over the world to make shoes that bring out the beauty from unlikely placesat affordable prices too. Special Melissa shoes have been designed by Zaha Hadid, Vivienne Westwood, Campana brothers, Karim Rashid, Thierry Mugler, Jean Paul Gaultier, Herchcovitch, and Isabela Capeto, thus confirming the brands attitude of creativity and reaching well beyond its product. Consumers are buying into the dream. Cant afford a Gaultier? So get yourself a Melissa!

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    8What about Brazilian brands

    A flagship store with a focused brand experience also highlighted Grendenes place in Brazils internationally renowned footwear industry. In 2006, Melissa opened a gallery of the same name in So Paulo as a key brand-building initiative to craft an image fully aligned with its essence. The gallery lends its space for exhibitions of graffiti and interventions by Brazilian artists. It also sells art and design objects, and features the concept expressed by the brand wherever there is space to do so. Innovation and ideas are put into practice in order to shake the scene and add value. The Melissa brand benefits; Grendene grows more celebrated and appreciated.

    Havaianas

    Havaianas (the most famous Brazilian brand for flip-flops) used to be pitched as legitimate but it no longer evokes the original reason for this epithet. While Havaianas straps dont loosen and its sandals still dont smell, today, more than ever, Havaianas are described as

    legitimate because they taught the world a lesson in innovation, democratization, product strategy and value from brand building. Developed in the late 1950s, based on the sandals worn by Japanese immigrants in Brazil, these sandals were a hit with everyone. They were durable, comfortable and cheap; everyone could have one. They were so popular that they became part of the basket of staple items used to calculate the cost of living in the country. Being cheap but exotic, tourists packed them in their baggage and their fame soon spread all over the world.

    In the mid-1990s, after several years of declining sales, the flip-flops were revamped. New colors, an improved style, and advertising campaigns showcasing them on the feet of movers and shakers did the trick.

    Havaianas Democracy had taken over the show. Hollywood starlets liked their cool appeal and led the way for flip-flops to be worn at restaurants, parties and all kinds of social events. At the 2003 Oscars they were gifted to the nominees. Jean Paul Gaultiers models wore them on catwalks.

    Sales explosion equaled brand explosion. Havaianas now accounts for 60 percent of sales revenues for So Paulo Alpargatas, part of the Camargo Correa group, which has opened two offices to handle the brand, one in the United States and one in Europe. Some 22 million pairs are exported annually to 80 markets. Everyone wears them everywhereon the beach with a long dress, at a summer lunch, or for a stroll along the street. To hold on to its position as a coveted cult item, the brand cannot afford to drop the ball for a single moment. If demands are not identifiable, the brand has to create desire for its product through innovation. This explains special models like the flip-flops adorned with Swarowski crystals, and other new and unexpected items, like the Havaianas bags that are being sold everywhere. Havaianas provide the benchmark for the segment, although they are not the top-selling sandals of its stylethe Ipanema brand reports higher volume sales.

    Havianas strategy is to create experiences (as with Melissa) and invest in creating a brand that works both globally and locallyand so far it has been working. A street store on So Paulos Rua Oscar

    Freire, where you can customize your pair is the ultimate experience. This store features Havaianas sandals on feet, on heads, in fact everywhere. The history of the brand is shown on a timeline in a tiny museum inside the store. Havaianas decorate the walls and are displayed at newsstands, and fruit stalls. It is purely conceptual in every way and designed by one of our best architects, Isay Weinfeld. The Havaianas store has become a tourist attraction and is always packed.

    The brands ability to surprise us seems to be far from exhausted. Havaianas delivers the product and, more importantly, it has spontaneously became a topicone that rivals a huge celebrity. It has definitely earned the title of our most global fashion brand.

    The Brazilian footwear brands that are conquering the world have more than the fashion appeal in common, they create brand experiences through differentiation and a distinct identity.

    Melissa Aranha Campana: designers and artists bring fresh air and innovation to the brand

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    A flagship store with a focused brand experience also highlighted Grendenes place in Brazils internationally renowned footwear industry. In 2006, Melissa opened a gallery of the same name in So Paulo as a key brand-building initiative to craft an image fully aligned with its essence. The gallery lends its space for exhibitions of graffiti and interventions by Brazilian artists. It also sells art and design objects, and features the concept expressed by the brand wherever there is space to do so. Innovation and ideas are put into practice in order to shake the scene and add value. The Melissa brand benefits; Grendene grows more celebrated and appreciated.

    Havaianas

    Havaianas (the most famous Brazilian brand for flip-flops) used to be pitched as legitimate but it no longer evokes the original reason for this epithet. While Havaianas straps dont loosen and its sandals still dont smell, today, more than ever, Havaianas are described as

    legitimate because they taught the world a lesson in innovation, democratization, product strategy and value from brand building. Developed in the late 1950s, based on the sandals worn by Japanese immigrants in Brazil, these sandals were a hit with everyone. They were durable, comfortable and cheap; everyone could have one. They were so popular that they became part of the basket of staple items used to calculate the cost of living in the country. Being cheap but exotic, tourists packed them in their baggage and their fame soon spread all over the world.

    In the mid-1990s, after several years of declining sales, the flip-flops were revamped. New colors, an improved style, and advertising campaigns showcasing them on the feet of movers and shakers did the trick.

    Havaianas Democracy had taken over the show. Hollywood starlets liked their cool appeal and led the way for flip-flops to be worn at restaurants, parties and all kinds of social events. At the 2003 Oscars they were gifted to the nominees. Jean Paul Gaultiers models wore them on catwalks.

    Sales explosion equaled brand explosion. Havaianas now accounts for 60 percent of sales revenues for So Paulo Alpargatas, part of the Camargo Correa group, which has opened two offices to handle the brand, one in the United States and one in Europe. Some 22 million pairs are exported annually to 80 markets. Everyone wears them everywhereon the beach with a long dress, at a summer lunch, or for a stroll along the street. To hold on to its position as a coveted cult item, the brand cannot afford to drop the ball for a single moment. If demands are not identifiable, the brand has to create desire for its product through innovation. This explains special models like the flip-flops adorned with Swarowski crystals, and other new and unexpected items, like the Havaianas bags that are being sold everywhere. Havaianas provide the benchmark for the segment, although they are not the top-selling sandals of its stylethe Ipanema brand reports higher volume sales.

    Havianas strategy is to create experiences (as with Melissa) and invest in creating a brand that works both globally and locallyand so far it has been working. A street store on So Paulos Rua Oscar

    Freire, where you can customize your pair is the ultimate experience. This store features Havaianas sandals on feet, on heads, in fact everywhere. The history of the brand is shown on a timeline in a tiny museum inside the store. Havaianas decorate the walls and are displayed at newsstands, and fruit stalls. It is purely conceptual in every way and designed by one of our best architects, Isay Weinfeld. The Havaianas store has become a tourist attraction and is always packed.

    The brands ability to surprise us seems to be far from exhausted. Havaianas delivers the product and, more importantly, it has spontaneously became a topicone that rivals a huge celebrity. It has definitely earned the title of our most global fashion brand.

    From a basic product to a fashion brand. Havaianas can go from the beach straight to fancy parties.

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    10What about Brazilian brands

    Brazilian way of wearing

    Whereas we were once plain copycats of imported trends, weve since moved on to make clothes that look one hundred percent Brazilian. A combination of factors were involved. With this transition, an opportunity cropped up in the market; the fashion industry in Brazil was maturing; and there was the creativity and willingness needed to express a particular identity.

    In any event, alls well that ends well, and were looking pretty good. Brazil is the worlds 8th largest textile maker and our clothing exports brought in US$ 2.4 billion in 2008. Fashion is the second largest industry in terms of employment, second only to the construction industry. This is a business in which a well-built and well-managed brand can boost the price of the product to a level beyond comprehension, and Brazilian fashion is no exception to the tradition. We now have companies whose brands feature global attributes. They are earning significant export revenue or building physical presence in other countries. They are presenting good sales numbers, and/or are building a reputation, and becoming objects of desire.

    But this is no fashion version of Brazils economic miracle. Enduring evidence of this development is easy to find. Even when we were still working on the very basic items, our clothes had an indefinable edge to themthey were sassier, more fun loving, more easygoing and unpretentious. Which is not to say that we are unable to behave elegantly. We do have designer labels and they are highly coveted in many countries. But we also have brands that brilliantly blur the boundary line between work and leisure; between formal and comfortable.

    For these reasons, among others, our fashion brands really are talking to the worldor at least to the significant part that is able to make a difference and set new trends.

    Rosa Cha

    Ever since Girl from Ipanema, the world has been learning the history of Brazil through bikinis, the girls that fill them, and the songs that inspired them. But in terms of brands, it was Rosa Cha that placed Brazils teeny weenie expertise on the map. Amir Slama, the brands creator, started by looking around for new textures and tones that would distinguish his products. So successful was his mission that his bikinis are world-renowned. By 1995, Rosa Cha bikinis embellished storefront displays at Gallerie Lafayette in Parisa huge feat, although it has to be said that their mannequins had a somewhat dubious indigenous look. Two years later, it was Americas turn to wear bikinis, and Rosa Chas items were on sale at several trendy stores. To crown its achievement, the brands premiere on foreign runways happened during New York Fashion Week in September 2000.

    What made Rosa Cha such a successful brand abroad was its ability to match is a chic Brazilianness (complete with Carmen Miranda prints) with the right proportions and sizes for foreign markets. This same sharp eye applied to differentials in fabrics, colors and prints, was critical for the brand to get leverage abroad based on adaptations that were just right: A larger bottom for the European market, and a higher leg for Americans. All of this, of course, was done without losing sight of that down home Brazilian flavor.

    But style does not live on branding alone. In 2006, Slama sold 75 percent of Rosa Cha to Marisol, a textile giant with the clout to catapult the brand to the next level, focusing on production and logistics to boost sales. Rather than just a business, Marisol saw this fashion beach brand as an icon to head its international expansion. In May 2009, the company bought out the rest of Slamas Rosa Cha stock and is now set to hit more beaches.

    Osklen

    There is nothing Brazilian about the name Osklen. People in different parts of the world may be surprised to discover the origin of the brand when they come across Osklen stores. There are two in Milan, one in New York, three in Portugal, Tokyo, Rome, and Geneva, not counting a number of showrooms in many countries. And there are another 41 stores in Brazil, of course.

    It all started as an unpretentious sportswear brand created by Oskar Metsavath, a doctor who liked sports. For all its lack of pretense, it went on to become a designer label and a distinctive clothing proposal sold in stores that fully express the brand identity. Beautiful people and journalists here and abroad were won over. Movers and shakers took a shine to the style. According to the WGSN website, which specializes in trends, Osklen is now one of the worlds ten most influential and inspirational fashion brands.

    An Osklen item is easily identifiable because the brand has learned how to sell a coveted lifestyle. As if beaches had been transported to cities, in an uncomplicated and comfortable manner, but suitable at the same time. Looking at brand items, we recognize relaxed informality that does not fall into the laid-back hayseed clich but has just the right dose of urban and totally contemporary influences. It speaks of nature, works with sustainability for real, and blends hi-tech fabrics with organic materials. Osklen succeeded in building a brand that packed with attitude. It sells an image of Brazil that everybody finds inviting and attractive.

    ROSA CHA

  • 11 What about Brazilian brands

    The identity of the Brazilian fashion brands reflects our multiplicity and versatility, attributes of a diverse and young country

    The brand definitely found a perfect combination

    to create its style: adapted the relaxed atmosphere of the beach paired with

    an urban look

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    12What about Brazilian brands

    Carlos Miele

    &

    Alexandre Herchcovitch

    Some Brazilian personalities embody the meaning of the word style. This is no easy task, particularly for an industry famed for its short life cycles and ephemeral tastes, in which unanimous approval is increasingly rare. Made in Brazil brands are understood, interpreted, appreciated and bought due to sheer style. They have achieved this goal in the most demanding of markets one that is saturated by variety and fickleness. Carlos Miele and Alexandre Herchcovich have made it internationally as brands, going beyond just commercial success.

    Fancy dresses may not be the biggest novelty but Mieles ability to create a new kind of dream explains the success of his brand in different countries. Some 67 stores in 18 countries are selling Carlos Miele. What the brand does very well, apart from make good quality clothing, is convey Brazilian fashion as something that can make any woman smile simply because she is the prettiest woman at the party. His dresses, which cost from US$ 1,000 to US$ 4,000 on average, feast on cleavages and necklines and feature flowing fabrics and sexy cuts. The concept is that every single thread combines to create the idea of an elegant, Brazilian style woman with a good dose of sensuality.

    Alexandre Herchcovitch took a different route for his brand, and surprisingly, for a designer who comes from a country with no tradition of creating fashion trends, he got people talking. Morphing from genial rebel to sophisticated businessman, his brand reflects his creative mind for fashion and his ability to find new forms of expression. Today his designer signature and identity are used on band-aids, kitchenware and even bedding. Highly praised by the international press, Herchcovitch is good at drawing attention. He has showrooms in New York and Paris, but what has really captured peoples attention eyes is his shop in Japan. Designed by architect Arthur Mattos Casas, it generates as much curiosity as his clothes. It also expresses his brand in a way that is fully integrated, with finely elaborated details. To begin with, the interior is not fully revealed even when the store is open. A Formica facade is covered with printed images that rotate for each new collection, and of course they relate directly to the items found on the racks and shelves. Surely not by accident, the fact that there is no window displaying clothes entices consumers into the building, where they can enjoy the full experience of the brandsomething that few local brands had the courage, or perhaps the opportunity, to do.

    H.Stern

    Curiously enough, H. Stern has more prestige abroad than at home, in Brazil. Perhaps its the name, with its foreign aura that does not initially advertise the nationality of the company. H. Stern, however, has been selling Brazilianess all over the planet for more

    CARLOS MIELE

    Carlos Miele:The success of this Brazilian brand could be explained through its embodiment of Brazil

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    than 40 years, and on a scale that very few other brands can match. Not many people will know this, but H. Stern has pursued innovation from the beginning. It was a pioneer in creating stylish jewelry from Brazilian stones. In 1983, Stern built its global headquarters in Ipanema; it was the first building in the world to have all the segments involved in jewelry manufacturing under one roof. But this wasnt enough so Stern created its Noble Gold, a yellow and white gold alloy, and the exclusively Stern Star diamond cut. More recently, it had guest personalities sign collection, which succeeded in lending character and new differentials to the whole universe of desire expressed by the H. Stern brand.

    The great paradox is that it became an international brand rather than a Brazilian brand. The natural order of things has been subverted, so to speak. It was the appreciation H. Stern received in other countries that raised the brand to the global position it now occupies so comfortably. In addition to the numbers that confirm this theoryexports account for 54 percent of its revenuesthere is the recognition. Actresses such as Angelina Jolie, Eva Longoria and Sandra Bullock wear H. Stern at the Oscars and Emmys and its campaigns feature the worlds top stars. With 80 stores, and points of sale spread across 12 countries, it is a globally renowned brand. In Brazil, however, the jeweler is not treated with the same generosity or recognized to the same extent. In this sense, perhaps we are still paying the price. After years of suffering from an inferiority complex for feeling like a nation unable to make luxury items, we finally have one of our own. Unfortunately, it seems we arent in the habit of appreciating our own brands.

    The turning point for Brazilian brands that sell concepts abroad is to translate to other markets consistent experiences, without losing original identity and constantly searching for understanding the local needs

  • What about Brazilian brands

    02.Blessed by God

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  • What about Brazilian brands17

    02.Blessed by God

  • What about Brazilian brands

    02.Blessed by God

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    Brazil has such lovely and bountiful geographics. It is a land of endless generosity in the literal sense of the

    term, while in the figurative or stereotypical sense, the geographics are as warm and welcoming as the

    Brazilians, always finding a way to crack a smile. There are no earthquakes, no tsunamis, and aside from the

    occasional drought or torrential downpour, nature is usually in a good mood. Energy flows around here as if

    by magic: plenty of sunlight and endless supplies of water; the Amazon pumping out oxygen to the world;

    gems in Minas Gerais. Theres gold deposits, sugarcane, oil, food and drink.

    Such copious gifts of nature cannot but favor this nation. Brazil has always been recognized as one of the

    worlds greatest source of food supplies and today this image is even stronger. We have moved on from the

    field to the table; from mines to auto-parts and fuels. We are creating new and alternative products, and

    we have a unique approach to our countrys natural setting and resources. We love analyzing things and

    reinventing them, making new products and specializing in any number of other transformations to show

    people that we are good, indeed very good, at taking the commonplace and improving it. That is how we

    make our presence felt here in Brazil and around the world too.

    Brazil has a seven percent share of the worlds agricultural commodity market

    It is the worlds third-biggest exporter of agribusiness products

    Agriculture is the most globalized sector of the Brazilian economy, accounting

    for 25 percent of GDP and 36 percent of exports. The total revenue of the top

    400 agribusiness companies is US$ 167 billion

    Brazil is the worlds leading exporter of: red meat (24 percent of the total),

    chicken (39 percent of the total), sugar, alcohol, orange juice, coffee, tobacco

    Its the second biggest exporter of soybeans and derivatives

    Its the third biggest exporter of corn and pork

    If God is Brazilian, thats a secret he keeps, but in these prolific lands we learned how to grow

    fruit, grain, energy and to produce the most delicious meat. We carry the freshness, the tropical

    abundance and a quality second to none in raw materials. And nature is smiling, as sang Cartola

    - - an extraordinary differential that put us on top of every exportation rankings.

  • What about Brazilian brands19

    Yes, we have oranges

    Five centuries after the first orange trees were planted in its soil, Brazil is growing 170 million trees on an estimated one million hectares of land area. It has become the worlds biggest orange grower, second only to the United States, which has 100 million trees, in Florida mainly, followed by Mexico, China and South Africa.

    So theres no shortage of orange trees, or juice for that matter. The worlds annual production of concentrated orange juice is around 2.4 million tons, of which Brazil accounts for approximately 1.3 million, thus leading the field, followed by the United States, which as a nation of voracious consumers, does not have much juice left over for export, enabling Brazilians to grab a good chunk of the American market and supply half the worlds demand.

    Brazilian oranges have an obvious competitive advantage in terms of quality and price, so exporters have the all the trump cards when negotiating and dealing with intermittent pressure from the juice industrys bulk buyers, who will leverage market conditions and give no ground to small growers or less competitive players.

    So while Brazil has earned some recognition and translated it into financial returns, the same cannot be said for its brand value. Brazilian oranges are simply unbranded, despite their presence internationally. Can oranges be branded, you may ask. Yes, they can. Building a product brand for a commodity will potentially have impact throughout the supply chain, from the micro-producer to the major exporter, adding value to the raw material itself, and developing alternative market positioning strategies for the product. The most immediate and obvious effect would be its adding to the trade surplus, which boosts the nations economy. Our profile, in the eyes of other countries, would be extended beyond a competent grower image to set a strategic example, to be envied and emulated.

    Brazilians grow or process 70 percent of the worlds orange juice consumption

    In May 2010, Citrosuco and Citrovita, the second and third largest orange juice producers in Brazil, announced the merger of their operations.

    The company that resulted from the merger will export its production to 80 countries.

    Brazils predominance in the sector has earned its players the epithet OPEC for oranges

  • What about Brazilian brands

    02.Blessed by God

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    Citrovita

    Cutrale

    Citrosuco

    The lyrics of an Elis Regina song, which features the street sellers cry of Buy my oranges, good sir, would be the perfect pitch for Brazilian orangesthat is, if they werent already so popular. Brazilian oranges are admired, recognized for their quality, and drunk worldwide. While our natural setting, which sustains all of our successful agricultural commodities, is very much responsible for our huge supply, our successful juice-export trade owes as much to our initiative and drive. From the initial planting of tree sprouts to the delivery of the mornings juice to breakfast tables all over the planet, weve built differentials and added value to the production cycle.

    We have a tradition in this field: Cutrale, the worlds largest orange juice exporter, has been in the business for over 50 years. The family bought its first plantation in 1952 and in 1967 acquired Suconasa, one of the first orange juice makers. A few months later, Cutrale got a huge boost from soaring prices on the international market after a frost hit Florida. Now it supplies about 30 percent of all juice consumed worldwide and exports to over 20 countries in Europe, China and the USA. Cutrales customers include Parmalat, Nestl and Coca Cola.

    The merger of Citrosuco and Citrovita, announced in May 2010 creates another giant. The new company will respond for 40% of the domestic production and a fourth of all the orange juice drank around the globe. Without the Brazilian presence in this activity surely a good part of the of the worlds breakfast would be nutritiously jeopardized.

    Despite leading the orange juice category, consumers who appreciate the flavor of Brazils orange juice have no idea as to who is ultimately ensuring these winning qualities. Thats why creating a Made in Brazil brand for our juice would go a long way to providing an advantage. The opportunity is there it is not unusual packaging of this type to mention the source of the goodies but creating a brand takes time, and it does not come cheap.

    A good example of a country that has successfully followed through with a similar initiative but for coffee (one of Brazils biggest exports) is our next-door neighbor, Colombia. Colombias coffee growers federation took the initiative and started building a brand for their product back in 1959. The well-known Doyle Dane Bernbach agency, with a leading role locally by Juan Valdez, created the strategy that built recognition and distinction for 100 percent Colombia coffee. The aim was to emphasize coffees origins, on the same lines as Bordeaux for wine. It was successful too: Although it only grows about a quarter of Brazils coffee harvest, it is Colombias coffee that has the reputation for quality. So there is a great opportunity for our oranges here, good sir.

    Beef, barbecue and more

    Brazils orange juice may not be well known, but its beef productsnot just barbecuehave garnered fame and won over foreign palates. The quality of cuts and finished products has crossed borders, and Brazils chicken and beef is on supermarket shelves in every continent. No wonder: Rising demand for food in emerging countries such as India and China is driving growth in the sector, and Brazil has some of the worlds greatest potential for expansion due to the large area of land still available. We have the know-how, the pasture and the palate. Brazil has every chance of taking over Argentinas image as the guardian of quality beef and state-of-the-art products, due in particular to a very typical Brazilian seasoning: creativity. We are blessed with low-cost cattle farming areasthe worlds lowest for the industry. As a result, local beef prices are more than competitive and the country is capable of sustaining high-volume exports. Leaving grazing land to urban centers, we find yet more differentials. When a consumer is eyeballing a refrigerator display in a supermarket, what is it that makes a pack of juicy steaks or tender chicken drumsticks something special, a product of choice? There are several possible answers: the most obvious is convenience, a key requirement in mature markets, in light of the busy life we lead in todays world, clichs not withstanding. But the argument for designating origin is no less important: well-informed, high-purchasing power consumers have a different approach to hygiene

  • What about Brazilian brands21

    and nutrition, so a suppliers image becomes a key factor in shopping decisions, since it provides an assurance of reliability and safety. Incidentally, designating the origin of cattle is nothing new. Cattle are often branded on the rear for identification purposes when being sold, for example. So placing our brand name on ready-to-eat meat makes sense in terms of utility and historynot to mention the added value of a brand for this product today, and what this stands for in terms of evolving consumer behavior. Instead of chatting to the local butcher (in any event, now a dying breed in major urban centers), todays shoppers look at the trustworthiness of a brand or its manufacturer. Brands democratize access to information that was previously confined to the butcher shop counter.

    JBS Friboi

    Marfrig

    In the meat segment, JBS Friboi ranks alongside the worlds giants. The firm has put Brazilian efficiency on the map through its scale, dynamism and presence. JBS has performed outstandingly well and its international acquisitions have helped consolidate the companys leadership in the worlds beef trade as a global player capable of diversifying geographically to produce and distribute its products. JBS Friboi is now the worlds largest meat processor and exports to over 110 countries on five continents.

    However, diversification and globalization are each separate things; and branding is yet another. By chance or by design, JBS has had opportunities to build its brands for some time. It has invested heavily in acquisitions and benefited from these deals to leverage the opportunity represented by incoming brand equity to add value to its own brand portfolio.

    Some of its initiatives earned a score of 10/10. In September 2005, JBS acquired Swift Argentina to become the owner of the Cabaa Las Lilas brand. Cabaa Las Lilas is recognized internationally as Argentinas best meat, with the luxury of having its own flagship restaurant in Buenos Aires. JB went for another deal in 2007, but

    Brazilian agribusiness brands need to reinvent themselves to be seen as a producer of high-quality products

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    this time the stakes were higher since it acquired the Swift & Co name, a brand with a global presence. Of course Swift was not a Brazilian brand, but it was the only brand with horizontal presence in several countries in which JBS does business.

    The short-term is here now, and plans to invest in branding are now part of the companys strategy. In practical terms, we are talking about boosting added value for its products through more customization for each market in which their brands are trading, and thus building presence in the minds of consumers by working on brand names for clients or their own trademarks. This means building a great corporate brand for a great company in terms of recognition by the general public.

    The world hungers for brands that meet specific needs, and Brazilian players in the meat segment have both the opportunity and the expertise needed to create value in relation to their corporate brands.

    In the wake of JBS Fribois growth, Marfrig has made progress by wagering on diversification. It has now become the most diversified food company in the meat segment, and the fourth largest producer of beef and beef products, as well as one of the worlds top 10 chicken processors.

    Marfrigs growth strategy is horizontal. Over the past three years, it has made 37 acquisitions, more than half of them outside Brazil, to strengthen its physical presence internationally. Currently, its exports are being shipped to more than 140 countries. However, despite all this robust growth, Marfrig is still living in brandless territory, using different brands in each region. In simple terms, its brand strategy is not being combined with growth, which could certainly contribute positively to the corporate brands image and firepower.

    Apparently there is no ongoing program for Marfrig to ensure its brand through product names. Two planets are orbiting on separate paths: Marfrigs reputation is one of them, its brand recognition another. A way to bring the two closer together would be to capitalize on the equity of its product brands. Once consolidated, they could take on the scale of more elastic globalized brands, with a more wide-ranging approach to their markets.

    They could also approach a corporate brand. This would be a win-win scenario, and could help Marfig start to tap into new segments and needs based on dedication and expertise.

    Exports account for 68 percent of JBS Fribois sales revenues.

    Different products - fresh, chilled or processed meat bear different brands depending on the country.

    Products come from four countries: Brazil, Argentina, Australia and the United States.

    On the agenda of Brazilian commodity businesses are diversification, globalization and brand strategy. They have to go beyond the B2B to also establish a relationship with customers

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    Exports reach 110 countries through distribution centers in the United Kingdom, Russia, Angola, Congo, Algeria and Poland.

    Marfrig is the largest private-sector company in Uruguay, the largest beef company in Argentina and the top chicken processor in the United Kingdom.

    BR Foods

    In the wake of 2009s major merger and acquisition deals in the segment, a new company has stirred interest in terms of branding: BR Foods, the product of a merger between Perdigo (68 percent) and Sadia (32 percent). BR Foods now trades on a monumental scale, with horizontality, a legacy of strong brands from its companies of origin, and a strong presence in the global marketplace.

    Exporting was nothing new for any of the original companies. On the international scenario, although both firms were concentrating their efforts on building and consolidating brands, they were pursuing different strategies. Perdigo has manufacturing facilities in Romania, Argentina, England and the Netherlands, and offices in 11 countries. It used, however, a different name abroadPerdix which is easier to pronounce in other languageswhile retaining the same visual identity on its packaging. It has several product brands (Sulina, Borella, Unef, Confidence), including one for Muslims: Hallal.

    Meanwhile, Sadia has a name that is easier on foreign ears, so it went ahead with its master brand, as well as the brand Qualy to export a thousand different products to 117 countries. The strength of the company, which has become an important competitive advantage, was its careful scrutiny of adjustments required for different markets. Part of this strategy was to ensure that it delivered world-class quality. It went the extra mile to learn regional culture and habits and thoroughly incorporated the changes required. An example of this approach concerns animal slaughter practices required for religious reasons. It is no accident that Sadia is a reference and benchmark in the market for chilled meats, given the pace at which it anticipates demands and creates new products.

    The Sadia/Perdigo merge takes their joint offering as companies to a higher level. In terms of the growth of their product brand portfolio, almost everything is possible: Optimization, channeling brands with potential for cannibalization to different markets; investing in product brands; more tightly focused strategies for niche brands; holding onto Sadia and Perdix, or switching to invest in the new BR Foods corporate brand on a new scale - in fact on a global scale right from the start.

    BR Foods is the Brazilians second biggest food conglomerate and its fifth largest exporter. Furthermore, the worlds biggest chicken processor

    Accounts for 52 percent of chicken exported by Brazil (volume sales) and ships 48 percent of pork exports

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    A new era for sugar

    Not so long ago, nobody could have imagined anything more luxurious for sweetening a cup of coffee than a glamorous sugar cube (made from beet sugar, incidentally), as flaunted in so many 1950s French and Hollywood movies.

    In a country where many people are still sweetening their coffee with lumps of dried sugar cane juice, the idea of using anything more sophisticated than refined white sugar is still a distant reality. But for the rest of the world, or at least richer economies, organic pesticide-free sugarcane is in high demand. Here in Brazil we hold all the trump cards since we have the ability to make high-quality branded sugar that is truly a niche product: Native organic sugar.

    Native

    Balbo has been building Native as a brand and setting an example for B2B companies that dream of seeing their brands becoming end-consumer buzzwords. Initially, Balbo took a key food concept, and then made it a guideline. Ultimately, this made a world of difference for product development and diversification, and for pitching to clients and final consumers.

    The Balbo conglomerate is now the worlds largest organic sugar maker. It exports 85 percent of its output to 41 countries, accounting for 20 percent of all organic sugar produced worldwide. The group supplies both food processors and retail chains, which market the product under their own brands. At the same time it is consolidating Natives presence for final consumers through initiatives like consistent point-of-sale campaigns. Consumers in South Korea, Spain, Portugal and France recognize the Native brand, created in 2000 and now present in 67 countries.

    What is behind this success? Paraphrasing a question typically asked by envious peers, what has Native got that the others have not? Its success is due to a combination of conceptual consistency, rapid response to emerging demand, and heightened flexibility. That may sound quite simple, but it is not: Timing is of the essence in this business. Get it wrong and you may drift across the hazy boundary between success and ostracism. Building a product brand from a differentiated commodity essentially means being keenly aware of evolving consumer habits. Ultimately it means being clued in to the way history is developing on a world scale.

    The concerns of the general public have turned to wellness and nutrition, so the space for organic products has scaled up and gained new formats. In Brazil this is still an exclusive niche, but it is growing fast in more mature markets with higher purchasing power internationally. Oddly enough, consumers in other countries led the way for Natives growth.

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    In relation to brands that flirt with functional and nutritional benefits, it is safe to bet that demand is still growing, and adopters are generally willing to pay premium price. Balbo spotted another window of opportunity and extended its Native brand to organic coffee, juices, chocolate-flavored items, cookies, olive oil and alcohol. Working on the line extension solved a major issue for Native and its organic sugar: visibility on the shelf. Communication between a line of products and ensuing cross-selling opportunities leverage perception of the master brand, add value and broaden end-consumer business opportunities. Ultimately, it gave the brand a killer edge: the option of not being tied to B2B relationships with large, well-supplied and comfortable intermediary players, who theoretically have the prerogative of being able to ignore end-consumer behavior at the other end of the chain.

    The fact that Native is building its business based on international markets poses an important lesson, perhaps even a decisive one. In Asian markets, consumers want to know who is producing the goods they purchase in their supermarkets. They want a kind of ID card, and a hotline too: they want to know who will answer their questions, and how. So in the case of the Native, Brazil is like a show room, offering an experience of sales closer to home. And for those willing to take this road, the experience is an intense one. This is a case of the Intel inside rationale successfully taken to an extreme, exercising its full potential for replication and dissemination.

    Green and generous

    When God created the world, he must have been feeling very well disposed to this country, because he took special care here. Weve got plenty of good land for agriculture, no major landscape issues, and quite mild weather. (All this, in light of global warming and the climate changes that are now scaring everybody else.) The rich diversity of our local biomes is a tourist magnet, and tapping into their commercial and manufacturing potential poses a wide range of opportunities for the pulp and paper industry. Eucalyptus trees grown here reach cutting age sooner than anywhere else, and huge areas are available for planting. For an industry in which sustainability is a mandatory concern, which directly impacts its business strategy, this is an important and distinctive piece of information: One hundred percent of our pulp and paper output comes from planted forests. But much remains to be done in terms of building the industrys image and right-sizing it to eliminate the historical stigma of its predatory and rather irresponsible image in the past.

    We make large quantities and deliver on quality too. Brazil has gained a high profile in foreign markets, and it is home to the worlds largest producer of short-fiber pulp. Production costs are among the lowest in the world and if this scenario is sustained, Brazil will outstrip Chinas pulp output in the following years. On the path to internationalization, in a lean market for competitors and clients, the M&A policy is the surest way of gaining competitiveness. Branding, though, is still an abstractionas it is for the overwhelming majority of commodities. We have the deals, but we lack a face that would make this a big business; we have yet to locate the image and personality that will be able to stand up and speak out, to work for this sector, educate people, and disseminate knowledge. In short walk the talk.

    Clean energy and a commitment to sustainability are mandatory to the Brazilian commodity industry

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    Fibria

    Any discussion of growth in the pulp and paper segment leads directly to the issue of internationalization. Brazil has raised its annual output and jumped from sixth to fourth in the industrys world ranking. Fibria understands that Brazil is already in the forefront of the global showcase, and tends to develop this position further. It began working on its brand identity from the start and focused in on its goal: World leadership in short-fiber pulp.

    As a product of the merge between Aracruz and VCP (of the Votorantim Group), Fibria has some obvious advantages. However, to protect its brand value in the future, it also needed to temper its vast production with responsibility. Its goals are to make itself heard and respected for its best practices, deliver innovation, respond to the industrys concerns, and take the venture to the next level, in line with new developments globally.

    Its companies of origin had very different profiles, so Fibria learned from their stories and struggles to build an identity of its own: One that would be capable of capitalizing on strengths, redeeming weaknesses and building new differentials. It would be a strong brand built separately from product brands.

    Right from kick-off, the company tackled the challenge of taking over and consolidating the equity of the Aracruz brand, (renowned on the international scene for its experience, pioneering approach, and leadership). It then had to merge it with what VCP had been able to build in the local market: audacity, agility, and a favorable profile in relation to social and environmental responsibility. It was

    an extensive project, particularly given that it lacked a product. Fibria had to stay consistent while also appealing to a diverse, worldwide audience. It also needed to make an effort to focus on sustainability policiescontributions to forestry stewarding practices and planting technology.

    So far, a channel of dialogue has opened, although the future has yet to be determined. The Fibria brand is associative and has an organic appeal, but it has yet to show its strength. It already has, however, a story to tell and a destiny to fulfill. The question is which key feature will the new company take up and to what extent will it succeed in showing ownership of Brazilian expertise in the business. Will it be able to tap into its competitive advantages, andcruciallyextend its sphere of influence from the political and environmental point of view?

    A global leader with annual capacity for over six million tons of pulp and paper.

    Seven plants, 15 thousand employees, and five sales offices around the world.

    Exports almost all of its pulp.

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    From the earth

    Brazils landscape is both beautiful and bountiful, and its undersoil is no exception to this rule. Beneath its surface lies huge vault of ores of different kinds, including gold once used to embellish churches, and raw materials that are converted to build infrastructure, or for the utilities of everyday lifecomplex and sophisticated applications that respond to an increasingly technological world.

    The abundance of oil and biofuels undoubtedly means that energy is one of our strengths, and Brazils high status on the international podium is assured, in this respect. With oil pumped from the deep-ocean pre-salt layer, our image has been powered by new developments: We have the cutting-edge technology and the skills to reach resources on land or at sea, and the capability to undertake truly large-scale ventures.

    Mining and steel have also been placed on the agenda, because the world is still growing at a startling pace and countries such as China have had to make infrastructure investments. Although the craving for raw materials has partly been stifled by the economic crisis, with sluggish consumption in wealthy countries and an unstable auto industry (which could not get enough steel only a short time ago), demand will always work through and be reallocated. Brazils major players, now proactive, well established and enjoying cross-border recognition are at the forefront in the race to cater for these needs and reap more of these harvests from the land.

    Petrobras

    Founded as a state-owned company during the government of President Getulio Vargas, Petrobras has blended with the history of the nation to become part of our identity. In Brazil, support for the brand is a matter of honoring our culture and taking pride in a job well done. However, it does not always get the same reaction abroad. While it is recognized, admired and sought after, Petrobras is still very much a prodigal youth compared to other global oil giants that have been in business for a century. Despite its reputation as a precocious talent, Petrobras still has to show what its made of by tackling a series of obstacles. This was the case in Argentina, where it had a tough time dealing with a protectionist environment in relation to its expansion on the South American continent. Even so, it refused to back down and was one of the first Brazilian companies to make its mark on the streets of Argentina, Bolivia, Paraguay, and Uruguay, where its service stations became alternatives to those of veterans such as Shell or Esso. The main international contribution to Petrobras today comes from its exports, and its distribution services.

    But what really fills us with pride is the companys role in creating and improving deep-water drilling technology. Genuine know-how of this caliber is just as sought after and exportable as oil gushing from the ground. For this purpose, our land and our sea are not enough, so Petrobras has carved out a global market share of almost 25 percent in deep-water operations, and it is planning to allocate 12 percent of its exploration investment to international oil fields.

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    Petrobras is out there projecting Brazils image abroadalmost US$ 16 billion will be invested outside Brazil from 2009 to 2013and foreign capital is crossing the planet to work with the company in Brazil too, thus attracting investors to our country. Is all this due to favorable business conditions? Of course, but it is also due to recognition of the attractiveness of the Petrobras brand. China has financed part of the exploration Petrobras has been doing in the Tupi field, which is likely to give Brazil some of the largest oil reserves in the world. Brazil has to strengthen the brand and sail on new waters, with a broad perspective for its positioning worldwide. In the words of its own tagline, challenge is our energy. In addition to oil, ethanol promises significant export growth (the projection is 40 percent per year), and Petrobras is investing in biofuels too. There will be no shortage of territory to cover and issues to address for the Petrobras brand.

    Petrobras already has a strong brand. It is a source of pride for Brazilians, who have a sense of ownership and actively participate in its history. They raise questions, criticize, praise, and see the company as the workplace of their dreams. The brand is so strong, due to the constant work done on it, that it shows how a brand has the power to create an emotional bond with people. In simple terms, this is essentially a matter of going beyond functional language to become a natural presence in the life of consumers. In the case of Petrobras, even when drivers are filling their tank at a service station.

    For a brand that has been working to break away from its image as a state-owned company and capitalize on its Brazilian origins in a modern way, gaining ground around the world will require prioritizing and planning. Like the giant veterans of Big Oil, Petrobras has already achieved a reputation that goes beyond oil itself. It stands for all the history, technology and innovation that lies behind every gallon pumped from its wells. A key issue today is its role in relation to the preservation of the planet and it must not lose sight of the importance of clearly responding to questions raised around this matter, with the utmost transparency and

    consistency. Big Oil was once the powerhouse of the industrial boom of the twentieth century, but now companies have been in the awkward position of taking a lot of punches for the last 20 years. As a result, theyve grown accustomed to being accountable for what they are doingalthough not without suffering. For the young Petrobras, perhaps it can gain from the growing pains of others, replicate their learning curve and speak loud and clear to a world that is eager to hear what leaders have to say.

    The fourth most respected company in the world in 2008 - ahead of leading names of the stature of FedEx, Google, Microsoft or Honda according to the ranking from a 32-country survey conducted by New Yorks Reputation Institute.

    One of the worlds top 10 companies investing in research and development.

    The twelfth largest company in the world in terms of capitalization (Bloomberg).

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    Vale

    Think big, speak up. Vale has done that, and done it well, in terms of amplifying its scope, internationalizing, and brand building.

    Founded by the Brazilian government in 1942, as Companhia Vale do Rio Doce and privatized only in 1997, Vale defines itself as a mining pioneer whose principal activity is also the key attribute that guides its actions: transformation (of mineral resources into ingredients and products that are essential to our everyday lives). In nearly seven decades, it has brought about a far-reaching transformation. Vale is the largest private company in Latin America, the largest iron ore producer and the second largest mining company in the world, as well one of the largest nickel producers.

    In Vales case, going international was not something that took place by choice, but rather a development that derived from the original nature of the business. In a manner of speaking, it took place naturally.

    In November 2007, it dropped its double-barrel name (Companhia Vale do Rio Doce), and its dry-as-dust geometrical logo to review its language and stance, and set out to be part of the wider world. This was its big move; an the effort to adapt more fully to foreign markets and start talking directly to end-consumers, and to the general public in Brazil.

    By reducing its name down to Vale, it was able to reflect a warmer identity and create intimacy. Foreigners lives were made easier too, when pronouncing the new name. The new logo has dropped straight lines for lots of curves, and is organic and suggestive, having left behind the engineering footprint associated with its mining business. The logo recalls a valley but also resembles a heart.

    On changing a brand, the form of expression changes too, as does commitment to society and sustainability, all newly added to the agenda. After an initial low-profile period, Vale started

    to invest heavily in a broad-spectrum corporate campaign to emphasize how its growth path could enhance development for the communities located near its operations. Its communication spotlighted its responsible attitude on environmental issues. This effort would positively influence its brand perception, allowing it to go further than business issues, reaching consumers in Brazil and abroad.

    Vales move of building a more elastic brand with total capability for presentation globally was inevitable: It had to represent the scale of Brazil abroad and leave no room for doubt. In the last decade, on the international arena, we have seen companies that exploit natural resources try to catch up with the game. Theyve tried out new positionings, and reviewed their business strategies in an attempt to extend their reach. Vale spent about R$ 50 million on its rebranding project. Its success clearly shows that a well-crafted branding job adds value.

    Vale has significant presence on five continents, with offices in Canada, Australia, China, Singapore, South Korea, Japan and Switzerland.

    In 2007, for the second consecutive year, Vale earned the John T. Ryan award: its Copper Cliff North mine was rated the years safest in Canada.

    Also in 2007, the World Education & Development Fund honored the Brazilian companys commitment to education in Latin America.

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    Gerdau

    Gerdau is another big commodity player making a huge effort to build its brands through communication and engagement. Ever since it was founded, achieving an international presence was a business goal. Now the leading long steel maker in the Americas and one of the biggest suppliers of specialty steel worldwide, Gerdau has operations in 14 countries, including the monster markets of the United States and India, and sells products on five continents.

    Its approach to placing its products and explaining its activity has helped the company establish itself as an exception in the field. Gerdau does not talk about steel purely and simply, but poses it as something present in peoples everyday lives. Like tube manufacturer Tigre, it has been able to create a huge sense of value through a presence that is not immediately visible in everyday life. Gerdau took the trouble to introduce itself and communicate the benefits of its products, which are used in the structures of buildings, bridges, power plants and other major constructions, and as raw materials for the automotive and agriculture industries. In a direct and easily understandable way, it sells quality and other emotional benefits that are so dear to consumers: safety and commitment. The steelmaker was able to connect practical applicability (important to engineers and architects) and tangible gain (economy and quality of building work, essential to the end consumers).

    Like a proud artist signing his paintings, Gerdau started putting its own name on its products, directly taking responsibility for them. This might seem off the wall to the untrained eye: after all, we are talking about a segment in which the product is totally lacking in sex appeal. So how could a box of nails or rebar create desire?

    It did so because it created a conversation with consumers, who were previously neglected on the other side of the counter. Gerdau did even more to expand this effortit talked to distributors and builders too. It talked about its nails and fencings savings, safety, speedy execution and quality assurance. With the GG 50 brand, the company went further: It started to sell customization, through a service that enabled clients to specify exact dimensions and quantities according to need. It added services to products, created demand and added value to the brand. In 2003, the GG 50 was featured in a TV campaign, and Gerdau benefited from a significant image gain.

    But is this lesson applicable to its strategy for internationalizing the brand? And how desirable it is for Gerdau to have an international brand? A simple replication of the model would not necessarily respond to the needs of consumers in other countries, which will require re-orientating, with the company investing more, and seeing this investment as a medium to long-term project in financial terms.

    Gerdau has already opened a window onto the world. Its business is now a standout for its exports from manufacturing bases in Brazil, confirming the success of the strategy of conquering new

    markets, which it has consolidated over the last 30 years. Gerdau feels that the maxim governing its industrial and basic commodities business - steel cement, pulp, petrochemicals, metals and mining - have been proved. Business is internationalizing irrespective of brand. But the extent to which internationalization adds brand value globally raises a different type of discussion, one in which consumer items and the arduous path to successful branding have much to contribute. To be on the safe side, Gerdau, despite its Gaucho origin, acts with the proverbial prudence of a native of Minas Gerais: It is keeping the corporate brand as part of its acquisition policy, strengthening the century-old Brazilian Gerdau brand, while exporting its attributes.

    Capacity for over 20 million tons of steel.

    Revenues of R$ 47.6 billion in 2008, with a 36.7 percent increase from the previous year.

    The biggest recycling operation in Latin America and the world, making about 16 million tons of scrap into steel every year.

    Braskem

    Braskem aims to be among of the worlds five largest petrochemicals in a not so distant future. Not bad: All the more so in light of its precociousness. The petrochemical company was founded in 2002, and its trajectory as a business prodigy exudes pride in numbers and ideas. Controlled by the giant Odebrecht conglomerate, Braskem was born from a combination of several companies, and set its course for growth through access to raw material and internationalization.

    Here in Brazil, it acquired Politeno (a polyethylene maker) in 2006. In 2007 it acquired the petrochemical assets of the Ipiranga group of companies. Early in 2009, it made waves by taking over the assets of Quattor and also the purchase of a polypropylene plan from the north-American Sunoco Chemicals, with the annual capacity for the production of 950 thousand tons. The operation with Quattor made Braskem, controlled by Odebrecht and Petrobras, the eighth largest manufacturer of plastic resins of the world, and Americas number one. And the acquisition of Sunocos operations, apart from an important step towards its growth abroad, took Braskem to the seventh place among the largest global petrochemicals.

    If until a short time ago, Braskem was busy with commodities and not much concerned about its brand, its recent history has triggered a change in its behavior. Besides the new acquisitions, that bring new brands to the groups portfolio, the company is involved in the production of green polyethylene, a product made from renewable raw material.

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    More than an alternative with commercial impact, green polyethylene presents an option to the transformation industry and for an expressive share of end users, for whom the environmental and sustainable matters weigh in the purchase decision. The Braskem brand can gain visibility in a broad way and also establish a closer relationship with the end user.

    The search for renewable raw materials and the commitment to sustainability policies speaks directly to the plastics industrys new cycle, which is focused on investing in R&D. Braskem has established its role as a pioneer in this field. Its green polyethylene plant is due to be on-stream by late 2010.

    What Braskem attains with this initiative is a channel to talk to the world and create interest and buzz about green polyethylene, which is still a novelty. The F1 trophy, designed with the new material, is a good example. When would you see an ordinary plastic trophy become a topicand when would you see an ordinary plastic trophy hoisted in the air by a Formula 1 winner?

    Leader by the scale of its business, in tune with the market trends and moves, Braskem can enjoy the advantages of a strong brand with huge visibility and a much higher relevance. The maintenance of this image and the effort for its improvement and growth, however, demands strategic work, integrated with the company. This involves looking closely at brands that have arrived from its acquisitions and investmentsquite a challenge for such a young company that grows and gets stronger before the markets eyes.

    Brazils top petrochemical company by gross operating revenue.

    Largest petrochemical company in the Americas.

    One of Brazils top exporters, with a presence in 60 countries.

    First to make low density polyethylene based on sugarcane.

    Ambev ABInbev

    The brand has always been a fundamental issue for Ambev, which in 1999 was already the fifth biggest beverages manufacturer of the world. Then there was the global alliance with Interbrew when Inbev was created and finally the merger with the American Anheuser Bush originating AB-Inbev, with the dream of becoming the best beer maker of the world.

    AMBEV has always been known as a company that invests in its products portfolio. It makes brands using human values: they are spontaneous, original, or funny, simply warm, like people we consider really nice and quickly become friends with. This is how they introduced the most present Brazilian brand worldwide: Brahma. Launched to the world in 2003 with the Ginga concept, the Brazilian philosophy to live life with creativity and spontaneity, Brahma used the slogan Improvise: Brahma, the beer from Brazil. And there were images of capoeira, selling our rhythm as pure poetry.

    Aligned with the consumption industry activities, AB-Inbev also bet in building up their corporate brand and adopted in their logo the eagle of the centenary beer maker in a clear demonstration of their intention to preserve the origin and pride that had been built, which created the image of a company with a vibrant future for local consumers and communities.

    On the other hand, out of the 13 members of their executive committee, 9 are Brazilian, which helps to carry the Brazilian DNA and management style to international operations.

    AB-Inbev is currently facing an inversion of paradigms which might be the focus for many Brazilian brands that face different and very strong cultures. The mission to implement their management style and philosophy in Belgium and in Saint Louis, the American headquarters of Anheuser Bush, has been demanding much more than the ginga or resilience of their executives. It is known, for instance, that in the USA there is still a certain unreliability feeling towards foreigners who have arrived and, in a certain way, interfere in what was considered to be a synonym of national heritage. Besides the usual challenges faced during a merger, the difficulty to transform the culture of such a company [and of a community] have clear impacts on the performance of a brand and, in the case of Anheuser Bush, might also be responsible for transforming some loyal Budweiser consumers into great appreciators of Schlafly, Miller or Coors.

  • 03.Fun-loving people

    32What about Brazilian brands

  • 33 What about Brazilian brands

    03.Fun-loving people

  • 03.Fun-loving people

    34What about Brazilian brands

    In the business world, Brazils fun-loving approach to life has crossed oceans and landed on catwalks in many countries.

    It is the seasoning that spices up our brands, both their concepts and the way we manage them. We pitch the image

    of a fun-loving, vibrant and colorful country, which gives us a great edge, particularly in entertainment. In music,

    painting, design, film, and literature, we can show that we are able to have fun and be very professional at the same

    time. However, at the same time, we have to be careful not to slide onto the negative side of the image immortalized

    in the expression this is not a serious country.

    In Brazil, brands are people who are helping to transform the countrys reputation worldwide, through their

    contributions to the cultural repertoire. These people have grasped the fact that building their image is a top priority

    for their business, locally and internationally, right from the start. They have important lessons to impart on how

    to structure a career without forgetting the important detailsthis involves commercial and communication

    strategies, media relations and marketing. It even involves artistic partnerships: who to build them with, how to do

    it, and when. Being global brands themselves, they want to ensure they are treated as valuable assets; so they learn

    to read different situations and adapt to different markets and audiences, setting examples to be emulated. Most

    particularly, they are innovating and they are thinking long-term. Lets look at some Brazilian personalities with a

    global branding attitude. These leaders of the creative economy are the people to keep an eye on.

    Our image consists of smiling, mellow people that enjoy lifes pleasuresa colorful mix of all levels, the

    heat of the tambourine, a thrill you can touch. Some Brazilians spread the joy of our brand around the

    world, with discipline, poise and, or course, talent

  • 35 What about Brazilian brands

    Paulo Coelho

    Paulo Coelho is the worlds bestselling Brazilian author and enjoys global celebrity status. He was there alongside President Lula and Pel, another unanimously admired Brazilian, when Rio de Janeiro won the dispute to host the 2016 Olympics.

    He has been working on changing his image from magician to writer, by involving himself in the literary community and mentioning his peers in interviews. He wrote Zahir, the first book in Portuguese to be launched worldwide. He has been translated into 56 languages, published in 150 countries and sold over 65 million books.

    Unlike other bestselling authors, Paulo personally manages his own career and does not work with a big agency. For his book launches, he gets prior approval on local publishers marketing campaigns and has an exclusive agent to deal with them. There are no autograph sessions. Each book launch is crafted as a unique experience, with an eye to publishing in different countries with local circumstances.

    Olodum

    Olodum started to go international and appear alongside the great pop music idols back in the 1990s. The band was involved with the recording of Paul Simons track The Obvious Child. A video clip they filmed in Pelourinho, the old quarter of the city of Salvador, was screened in over a hundred countries.

    Their sound was heard in Pelourinho again in a video for Michael Jacksons They Dont Care About Us.

    They have played in over 30 countries in Asia, Africa, Europe and the Americas, and opened Paul Simons Central Park show for an audience of 500,000.

    Seu Jorge

    Seu Jorge was a member of the band Farofa Carioca, which played at the Free Jazz Festival in 1998, and released the album Moro no Brasil [I live in Brazil] in Brazil, Portugal and Japan.

    His first solo album, Samba Esporte Fino, was produced by Beastie Boys producer Mario Caldato Jr. He then went on to play the role of Mane Galinha in City of God, directed by Fernando Meirelles. The movie was nominated for an Oscar.

    In 2004, director Wes Anderson casted him for Life Aquatic, shot in Italy with Bill Murray, Owen Wilson and Cate Blanchett. Seu Jorge also wrote the soundtrack.

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  • 03.Fun-loving people

    36What about Brazilian brands

    Brazilian artists are building themselves as brands, devoting special attention to the launch and communication of their work abroad

    The singer Cu: attracting more and more foreign listeners trough careful distribution of her CDs

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  • 37 What about Brazilian brands

    Cru, his second CD, came out in France first and was only released in Brazil a year later. A clip for one of the tracks was filmed in Italy with contributions from Willem Dafoe and Bill Murray.

    Seu Jorge produces his own video clips and CDs, and is more successful in Europe and Japan than in his own country.

    Cu

    The singer Cu is focusing on distributing her work. Her first CD was released in 2005 in Brazil and Warner Music handled Latin American distribution.

    Two years later she reached the United States, the United Kingdom, Europe and Japan.

    Cu was the first foreign artist to have an album chosen for the Starbucks Hear Music Debut series, sold at the chains cafs and traditional stores too.

    She has been nominated for a Grammy award (best contemporary world music).

    Bebel Gilberto

    Bebel Gilberto built her singing career internationally after moving to New York in 1991.

    Shes worked with internationally renowned musicians like Arto Lindsay, David Byrne, and Towa Tey of Dee Lite.

    Her first solo album, Tanto Tempo was released on the Ziriguiboom label by the Belgian recording studio Crammed. The album was remixed by famous DJs such as Derrick Carter, Layo & Buschwacka and 4hero. Over a million copies were sold, between original and remix.

    Her songs can be heard on the television series Nip/Tuck and Entourage, and in the movie Closerfeaturing Samba da Beno, Tanto Tempo and Mais Feliz.

    DJ Marky

    Marky was the forerunner of jungle and drumn bass in Brazil and launched Innerground Records, the first Brazilian rhythm label. He built his fame while regularly performing at clubs internationally.

    DJ Dolores

    DJ Dolores fundiu musica eletrnica e ritmos regionais do Nordeste, criando uma assinatura nica para o seu trabalho, que ganhou repercusso internacional. Tem faixas remixadas por nomes como Gilberto Gil, Fernanda Porto e Tribalistas. Participou do projeto Rip, Mash, Sample, Share a convite da revista americana Wired.

    DJ Mau Mau

    Mau Mau is seen as key to the dissemination of electronic music in Brazil. Triple Vision released his remix album, Cidade So Paulo, from the City of God soundtrack, worldwide on vinyl.

    Hes taken part in some of the global electronic music scenes most influential events, including the Open House itinerant party in France, and the Techno Parade in Paris, where he played for an audience of 200,000.

    Mauricio de Souza

    Mauricio gained a global presence through his comic books and characters and consolidated his brands in several markets through publications and product licensing.

    His stories have been translated into 50 languages in 126 countries, with some 3,000 licensed products in 120 countries.

    In 2007, Mauricio de Souza Produes, his agreement with Panini Comics, made him visible to foreign markets.

    In China, he was hired for a pre-literacy project involving 180 million children.

  • 03.Fun-loving people

    38What about Brazilian brands

    Fernando Meirelles

    The 2002 film City of God was a milestone in Brazilian cinema for a number of reasons: It casted local favela dwellers as actors; it highlighted the local color of life in Brazil (which is not always so fun-loving); and it was nominated for an Oscar in 2004, and was an international box-office success.

    The directors international productions include The Constant Gardener and Blindness, which was selected for opening the Cannes Film Festival.

    Rio de Janeiro submitted a video that he created to back its campaign to host the 2016 Olympic Games.

    Walter Salles

    The movie Central Station took the Golden Bear in Berlin and garnered Fernanda Montenegro a best actress award. Fernanda was the first Brazilian actress nominated for an Oscar, also for Central Station.

    The Guardian named Salles one of the worlds 40 best filmmakers in 2003.

    Behind the Sun was nominated for a Golden Globe in Best Foreign Picture. His films are distributed internationally, which make them accessible to a huge audience and help to attract a talented castfor example, Motorcycle Diaries star Gael Garca Bernal.

    Grupo Corpo

    Founded in Belo Horizonte in 1975, this Brazilian dance group has performed in over 14 countries.

    From 1996 to 1999, they were residents at Maison de La Danse in Lyon, France, which led to a busy international agenda.

    Grupo Corpo now has 34 choreographed dances and has performed more than 2,200 times; the current repertoire comprises of 10 ballets and they have an average of 80 performances every year all over the worldfrom Iceland to Singapore.

    Deborah Colker

    The company has performed in the United Kingdom, France, Germany, Austria, Chile, Colombia, Portugal, Argentina, Canada, United States, the Netherlands, Singapore, New Zealand, Macau, Ireland, Japan and Uruguay.

    The company was one of eleven choreographers and directors from various countries that were selected for Bite, a major avant-garde event held at Londons Barbican Centre.

    In 2008, it designed the Ovo show for Cirque Du Soleil.

    Os Gmeos

    Otavio and Gustavo Pandolfo, identical twins from So Paulo, pioneered the transformation of street art and works by Brazilian graffiti artists into objects of desire.

    Their graffiti can be seen on walls all over the world - USA (New York, Los Angeles, San Francisco), Australia, Germany, Portugal, Italy, Greece, Spain, China, Japan, Cuba, Chile and Argentina.

    Their work includes curatorial design for projects in which they were commercially involved.

    Their visibility and importance abroad are impressivethey received invitations to create graffiti for the facade of the Tate Modern in London, and Kelburn Castle in Scotland.

    Campana Brothers

    The Campana Brothers revitalized Brazils exportable design work. They made their name by reviving craftwork in the face of industrialization.

    Using materials easily found on streets in So Paulo, or working with Brazils diversified flora, they turn forgotten or discarded objects into pieces for design.

    In 1994, they were discovered internationally when they showed work at MoMAs Project 66 exhibition in New York.

    They produce limited editions out of just two factories and the Campana studio in So Paulo. This exclusivity secures their high prices and ensures that their pieces continue to be viewed as objects of desire.

  • 39 What about Brazilian brands

    A free pass to the Oscars red carpet. Os G