How Brands Help New Consumers in LATAM

CAROLINA VEGA
Account Director,
Kantar Millard Brown Chile
Carolina.Vega@millwardbrown.com

ROBERTO ROJAS
Senior Research Executive, Firefly Practice
Kantar Millward Brown
Roberto.Rojas@mbvermeer.com


The Brand Z™ Top 100 Most Valuable Global Brands is not only the world’s largest brand database, but also an important source of information on brand management. Showcasing the Top 100 most valuable global brands within the same ranking makes it a useful tool for marketers all around the world, who can use it to learn about strategies or trends working in other categories or geographies, and discover how this can generate value for their own consumers or business.

It’s been several years since great brands within the Top 100, such as Facebook and Google, demonstrated the importance of branded ecosystems: ecosystems formed by brands engaging consumers and generating value based on synergies. Think about Alphabet and how it now owns and helps run YouTube, Google+, Google Search, Android, Google Play, Google Maps, and so on, or Facebook and how it integrates Messenger and Instagram to its platform, where it could also introduce WhatsApp.

What these brands seem to have learned and now exploit is how to create brand ‘networks’, with consumers generating value at different points of contact. The ‘network’ is also used to ‘trap’ consumers in an ecosystem they don’t feel it is worth getting out of, given the benefits they get while being there. We might see this as the next step in a well-implemented brand architecture, where different points of contact do not only coexist but also interact.

LEADING BY EXAMPLE

The top 15 Most Valuable Chilean brands are good illustrations of branded ecosystems which they have learned to leverage to generate value for their customers. Consider Falabella, Tottus, Sodimac and their sister brand CMR. These brands, pertaining to the Falabella Holding, have managed to generate a well-known brand ecosystem in Chile, by creating promotions that are relevant to consumers in their purchase decision and their deployment of financial tools.

The power of these branded ecosystems has been so great that they have even had an impact on the way Chileans establish relations with almost all other services, demanding more – and more tangible things – of practically every brand. In addition, this model is successfully spreading to other countries in the region, for it is now understood that a relationship in which everyone wins generates a high predisposition to purchase. For instance, Cencosud is encouraging this model in Colombia, and Falabella in Peru. These two cases are reshaping loyalty in the region, for consumers not only feel they are winning, but are actually getting something more.

The short- and medium-term outcome of these strategies is clear to everyone, especially in times of contracting consumption, in which any benefit makes the difference to what the consumers choose. We have sound evidence that long-term benefits are associated with an emotionally positive connection with brands that cultivate an ecosystem, as consumers can see in them the endorsement of an ally allowing their access to goods and services in more favorable conditions that would otherwise be too complex to achieve.

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