The global scenario is led by brands related to technology and information, yet Peruvian brand ranking seems to be led by its traditions. While it is true there are no there no strong IT brands in this region of the world, it is also true that in Peru, national pride has developed around, among other things, its culinary tradition. So, one of the secrets local brands have learned to exploit is to associate themselves with an element of shared pride.
It’s not strange, then, that a brand
of dairy products , the same brand
our moms used to give us, or a local
beer, the one we drink with our ‘pals’, are
among the most valuable Peruvian brands.
Whether unusual or not, whether conscious
or not, if there is something Peruvians seem
to agree on it is the preference for local
brands in many of the categories of food
or drink products. These brands, many of
which existed before the turbulence of the
eighties, have survived until now, they still
know how to beat their foreign competitors,
and are still bound to Peruvian hearts.
However, let’s remember what makes a brand
valuable and how Millward Brown measures it.
A brand is valuable as long as it is able to explain
the future financial flows of the company. A
brand’s worth depends, then, on the combination
of those values it will attract in each transaction
and on the level of intensity of the relationship
established with these people (which acts as an
indicator of the number of future transactions).
This component is called Brand Contribution
and can be calculated based on key questions in
a structured survey. And what does this tell us?
It helps us understand the willingness of each
consumer to choose a specific brand within the
category they buy into.
A good analogy is that of the soccer team we
love. Surely, if we questioned our behavior we
would not have a “very important” reason that
explains why we yell and cheer for a team, yet
we can’t doubt the particular feeling. Well,
something similar happens with our favorite
beer. Are you sure you would recognize its taste
in a “blind” test? Maybe not, but you know which
one you’ll choose when asked. Moreover, there
is no doubt that, if we ask, a lot of tenuous
arguments will surface to defend the other
option; these arguments might not be very
rational, but they are deeply felt.
This is what’s unusual but also powerful about
brands. They organize the world, they predispose
us and they help us orient our decisions. Building
a solid brand will increase the financial stability
of the companies much more than if this
stability came from an eventual technological or
While some brands have learned to rely on
tradition and help consumers – through the
perpetuation of habits – to reaffirm certain
personal and identity values, other brands
still have to find a strong and reverberating
attraction point for the customers they intend
A recipe for success? “Don’t try to fill in the space
others earned before. Look for other spaces for
* For those brands that do not trade in the stock exchange or that do not
publish their results it is not possible to estimate the dollar value of the
brand but just a Brand Contribution Index.