brandz 2015 latam top50 report

8/18/2019 BrandZ 2015 LATAM Top50 Report

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Introduction ........................9 Thought Leadership

The Macroeconomic EnvironmentGonzalo Fuentes, CEO, Millward Brown Latin America

LatAm vs. Emerging MarketsDoreen Wang, Global Head of BrandZ™, Millward Brown

Overview

Latin American Economic Context

Headline News

Key Findings and Future Trends

Brand Value Distribution by Country

Performance by Indsutry Sector

Comparison With Other BrandZTM

Brand Valuation Rankings Top 50 Brands

Argentina ........................... 25 Thought Leadership

Argentina Keeps Building its Own LabyrinthJulio Fresno Aparicio, Managing Director,Millward Brown, Argentina

Overview

Key Market Facts

The Top 5 Brands Chart

Brand Stories

Thought Leadership

Change Is Inevitable; Development is OptionalMariana Fresno Aparicio, Client Service DirectorMillward Brown, Argentina

The Battle of the TableSebastián Corzo, CS Senior ConsultantMillward Brown, Argentina

Mexico ..............................97 Overview


Key Market Facts

Brand Stories

Thought Leadership

A Kaleidoscope of Challengesand OpportunitiesRicardo Barrueta, Managing Director, Millward BrownMexico, Central America and the Caribbean

Evolving Paradigms in anUnpredictable MarketJorge Alagón, Chief Client Solutions Officer Latam,Millward Brown

Constancy Amidst ChaosFernando Alvarez Kuri, Vice President<Millward Brown Vermeer

How to Grow Great Brands in aFast Changing ScenarioPedro Egea, President & CEO, Grey México

A Story of David and Goliath inThe Digital Media EraLilia Barroso, CEO, GroupM México

The Role of PR in Building Strong BrandsDaniel Karam, President & Managing Director,H+K Strategies Mexico

Creating Great Brands in anExtreme MarketGabriela Lijo, General Manager, Lambie-Nairn, México

Peru ............................125 Overview


Key Market Facts

Brand Stories

Thought Leadership

Exporting Peruvian BrandsCatalina Bonnet Montoya, Managing Director,Millward Brown, Peru

Has The Slowing Peruvian EconomyImpacted Brand Value?Olivia Hernández, Client Service Director,Millward Brown, Peru

Building Meaningfully DifferentiatedBrands in PeruJeanette Yañez Pajuelo, Account Group DirectorMillward Brown, Peru

What's New in Peru's Local Market?Fidel La Riva Cruz, Country Manager,Kantar Worldpanel, Peru

From Analytical to 'Curiosytical'Eduardo Velasco Maximiliano, Managing Director,MEC Peru

Brazil ............................. 37 Overview


Key Market Facts

Brand Stories

Thought Leadership How are Brands Adapting to the

Economic Shift?Roberto De Napoli, Director of Operations,Millward Brown Vermeer, South America

Challenges for Brands in the Brazilian MarketValkiria Garré, Managing Director, Millward Brown Brazil

Crisis or Opportunity?Aurora Yasuda, Knowledge Management,Millward Brown, Brazil

Neuroscience: Helping BrandsMake The ConnectionFrancisco Bayeux, Global Innovations, Millward Brown, Brazil

'Dear Brand, I Recall You.But I Don't Want To Buy You'Renato Duo, Strategic Planning Manager

J. Walter Thompson, São Paulo

Chile ..............................65 Overview


Key Market Facts

Brand Stories

Thought Leadership

Making Progress on a Slower RoadMauricio Martínez Vázquez, Managing Director,Millward Brown, Chile

Three New Influences on Chilean ConsumersMarcela Pérez De Arce, Client Service Director,Millward Brown, Chile and Mauricio Yuraszeck,Client Service Director, Firefly Millward Brown

Chile Amidst The Perfect StormClaudio Apablaza, Business Development Director,Millward Brown, Chile

"New Media, Old Fashioned Values"Annetta Cembrano Perasso, CEO, MEC Chile

Colombia ............................ 81 Overview


Key Market Facts

Brand Stories

Thought Leadership

Opportunities for PeaceGabriel Enrique Castellanos, Managing Director,Millward Brown, Andean Region

Brands in an Ever-Changing Environment:Time To Be Meaningfully Distinct!Oscar Ladino, Group Account Director,Millward Brown, Colombia

People Hate Our JobAlvaro Meléndez Ortiz, Planning Director,Ogilvy & Mather, Colombia

Resources .........................141 Methodology

BrandZTM Publications

BrandZTM Mobile

WPP Company Contributors

The BrandZTM Brand Valuation Contact Details

WPP in Latin America

LATIN AMERICA CONTENTS


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TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015

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LATIN AMERICA WELCOME

A DECADE OFDEVELOPMENT, AYEAR OF CHANGE

2015 marks ten years since the first BrandZ™Top 100 Most Valuable Global Brands study was

conducted. In the intervening decade, MillwardBrown has researched and valued over 100,000

brands across 50 country markets, to identifythe drivers of long-term brand value growth.

With each year and each BrandZ™ Rankingreport published, new insights emerge thathelp equip brands – especially the aspiring

newcomers from the fast-growing markets – tolearn from the present and build for the future.

GROWING BRANDSIN ALTEREDCIRCUMSTANCESFor most of the countries featured in theBrandZ™ Top 50 Most Valuable LatinAmerican Brands 2015, the past yearhas seen a continuation of the economicchallenges that began to emerge in2013/14. For the past two years, theLatin American region has presented

relatively low GDP growth rates ofaround 2%. China’s slowing economy andturbulence in the global oil industry h avebeen contributory factors, but politicalunrest and uncertainty have also playedtheir part.

However, even in these testing times,companies that have strong brandsremain more valuable than the average

of the market. This is illustrated by thefact that the Top 50 LatAm portfolioincreased 2% in USD, while almost alleconomic indices such as G DP, Countryrisk and Company’s market value showeda substantial decrease.

So, what’s the secret to the strongperformance of these brands? There is nosingle secret, but what is clear from thisreport is that many of them are applyingsome or all of the following principles inorder to create differentiation and value:

Be close to consumers

Successful brands are not limitingthemselves to promoting just theirfeatures and benefits but instead areaiming to reflect the same values as theirconsumers. In looking at life through theircustomers’ eyes, they are better able to

innovate in ways that will really resonatewith them. This may translate into thedevelopment of new formats, new saleschannels and service centers, or newsizes or varieties that can maintain theloyalty ties that the brand has beenbuilding over time.

Create a dialogue through digital

The voice of the consumer is nowclearly heard and amplified throughmultiple channels: where once brandcommunications were one-way, nowsocial media gives each individual thepower to praise or reproach. This shiftfrom monologue to dialogue creates newpossibilities but also pitfalls. The mostsuccessful brands are embracing thetransparency that these open channels ofcommunications provide and using it tobuild stronger, longer-term relationshipswith their customers.

Experience counts

Creating or supporting sharedexperiences that unite people and makethem feel happy build brand equityand encourage consumers’ loyalty.

The success of this approach is clearlydemonstrated by the brand in the

number one spot of the BrandZ™ Top 50Most Valuable Latin American Brands2015, Skol. Investment by Skol has b eenheavily focused on relationship buildingthrough the interests of the brand’starget audience, in particular throughsponsorship of music festivals.

Faced with household budgetconstraints, consumers need goodreasons to validate their purchasingdecisions. A clearly communicatedbrand proposition that reflects itsunderstanding of the consumers’ needs,and respect for their freedom to choose,go a long way towards delivering thereassurance these consumers are lookingfor.

ABOUT BRANDZTM

This report is collaboration by leadingbrand experts from WPP companiesaround the LatAm region. Their insightsand thought leadership essays providestrategic understanding and tacticaladvice for brands seeking to grow theirpresence and improve their brand value.

WPP companies have been workingin Latin America for nearly 100 years.Within these companies are specialistsin advertising; insight; branding andidentity; direct, digital, promotionand relationship marketing; mediainvestment management and datainvestment management; and publicrelations and public affairs. All share apassion and determination to use theircreativity and resources to establish andbuild strong, differentiated brands thatdeliver lasting shareholder value.

Collectively our experts bring globalknowledge based on our WPP presencein 112 countries. By connecting all thistalent and wisdom, we explore globaltrends and insights that help our clientsin useful and unique ways.

The backbone of all th is intelligenceremains the WPP proprietaryBrandZ™ database, the world’slargest, customer-focused source ofbrand equity knowledge and insight,and the BrandZ™ brand valuationmethodology of Millward Brown, aWPP company.

Other titles in our industry leading

BrandZ™ resource library include:the BrandZ™ Top 100 Most ValuableGlobal Brands 2015, the BrandZ™ Top100 Most Valuable Chinese Brands2015; the BrandZ™ Top 50 MostValuable Indonesian Brands 2015.Todownload these and other BrandZ™reports, please visit www.brandz.com.For the interactive BrandZ™ mobileapps go to www.brandz.com/mobile.

To learn more, please contact any ofthe WPP companies that contributedexpertise to this report. Turn tothe resource section at the end ofthis report for summaries of eachcompany and the contact details ofkey executives. Or feel free to contactme directly.

DAVID ROTHCEO The Store WPP, [email protected]: davidrothlondonBlog: www.davidroth.com


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INTRODUCTIONINTRODUCTION


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GONZALO FUENTESCEOMillward Brown, Latin [email protected]


THE MACROECONOMICENVIRONMENT:A CHALLENGE

TO BE OVERCOMEAt the beginning of this year, Ihad the chance to take part inan event in Ecuador, attended

by the main entrepreneurs andcelebrities of the country. There,a famous economist was talking

about “the perfect storm”:a decrease in global demand,the collapse in the price of oil

(on which so many countries inour region depend), and the US

dollar high appreciation.

In addition to this challenge shared by the whole region,Mexico and Brazil, the two largest economies in the region,

are facing barely positive scenarios. At the end of July,Standard & Poor’s kept Brazil’s country risk rating at –BBB,but changed its outlook from “stable” to “negative”.

In the case of Mexico, the Enrique Peña N ieto administrationwas confident that last year’s structural reforms wouldboost the country’s economic growth. However, the impactof these reforms was strongly affected by a difficulteconomic and social environment, which led to a very largecut in public investment and expenditure.

WITH CHALLENGECOMES OPPORTUNITY!Although the social and economic environment ischallenging, investment in the creation of great brands isneeded more than ever. This is evidenced by the fact that inour ranking BrandZ™ Top 50 Most Valuable Latin AmericanBrands, the joint value of the 50 main brands in the regionhad a 2% increase against last year. The Brazilian beer brandSkol had a 20% growth, which made it the most valuablebrand in our region.

How can brands continue to grow in such adverse scenarios?Brands that grow do so because th ey adapt to the new rulesof the game, they understand how these impact consumers,and based on this th ey look for solutions consideredinnovative and relevant by their market. Thus, the secret issimple, but it is the details that count.

A good example of adaptation to a new scenario is theMexican brand Bodega Aurrerá. Seeking to respond to theevolution of demand (consumers with less time “to do theshopping”, but still looking for inexpensive and local options),in 2008 it created a format called Bodega Aurrerá Express.This has helped it to gain share in the informal market, dueto its value proposal: low prices and convenience. In 2014,Bodega Aurrerá continued this expansion, adding 45 storesin that format. The success is clear: in a sector with brandsfacing important challenges —brand value in the retailsector as a whole decreased 15%— Bodega Aurrerá had a 10%value increase.

The new challenge for the retail sector will be related tothe development of e-commerce in our region. In 2014, 110million Latin Americans made at least one purchase online,almost 13 million more people than in 2013. T his constitutesa challenge not only for this sector —for brands from other

categories such as Alibaba already present in Brazil— butalso for brands, since the purchase process and the contextare clearly different.

BRANDS AS 'EXPERIENCES'ACTIVATORSThere is no doubt that consumers are human beings first,and that some countries in our region are going through adifficult situation. Brands have the opportunity here to offerplayful experiences that unite consumers and allow them toenjoy small pleasures, while building equity and encouragingconsumers’ loyalty.

The digital development allows acceleration of thisprocess and going from “brand image building” to “creatingexperiences with brand content”. The trick is doing thiswithout the brand seeming too intrusive.

Skol is a brand that u nderstands its role is not that of themain character at the party, so to speak, but a vehicle forits consumers to have a great time: it takes advantage ofimportant social events to join the party.

Last years’ events provided an amazing stage to becomethis companion: from being the main sponsor of Rock inRio, to taking part in the traditional Festas Juninas and theBrazilian Carnival, and all the way to the Football World Cup,Skol made great efforts to become par t of these playful and

high-engagement moments.

For example:

• This brand invests in more than 2,000 events so as to“stay close to customers”.

• For the World Cup it created “Albergues-Consulados”( Embassy Shelters), where consumers were invited tobecome Skol ambassadors and receive foreigners in thedifferent host cities.

• It also used a digital platform to create what was called“Gringo your selfie”. In this activity Skol asked Brazilianconsumers to take selfies with fans from all the countriescompeting in the Cup in less than 24 hours. The prize? Atrip around the world!

To sum up, the changes and challenges our region is facingconstitute opportunities to grow by means of the elements

that have always worked: innovation and relevance. Myadvice is that, now that we are tempted by too muchinformation and all kinds of data, we should not forget thebasics: to be close to our consumers. This book and theBrandZ™ Latin American ranking present 50 brands thatseem to understand this quite clearly. Enjoy!

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LATIN AMERICA THOUGHT LEADERSHIP


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LATIN AMERICA LATAM VS. EMERGING MARKETS

DOREEN WANGGlobal Head of BrandZ™

Millward [email protected]

TIPS FOR FUTURESUCCESS FORBRANDS IN FAST-GROWING MARKETS

It’s getting harder to enter – andremain in – the BrandZ™ Global Top

100 Most Valuable Brands. A total of58 of the brands ranked in 2006 are

still there, while 42 have been replaced.

Many of the new brands within the ranking are from fast-growing markets. The number of Chinese brands in theBrandZ™ Global Top 100 has risen from just one in 2006to 14 in 2015, and their total Brand Power has increased1,004%. Latin American brand Natura appears in the

personal care sector rankings, and Skol and Brahma rankin the beer category. The majority of these local brands arenot yet truly globalized, but they’re ambitious and growingin value extremely fast – and they will change the globalcompetitive landscape.

In the past 10 years Millward Brown has researched andvalued over 100,000 brands across 50 country m arkets,to identify the drivers of long-term brand value growth.It is these lessons that will equip brands – especially theaspiring newcomers from the fast-growing markets – to bethe winners over the next 10 years.

BEING DIFFERENT

MAKES A DIFFERENCEIn a world of so much product sameness,brands which consumers view as“different” achieve higher value. Thosethat have remained in the top ha lf of theBrandZ™ ranking over the last 10 yearsare scored very highly on “difference”by consumers, and have grown 124% inbrand value. In contrast, brands in thebottom half of the ranking score lowerand have increased only 24% in value.

Difference can enable a brand tocommand a higher price and yield ahigher profit. It isn’t just about theproduct; differentiation can also be foundthrough purpose, personality, values, anddesign. Category leaders like Coca-Colaand BMW need to guard leadership andkeep refreshing their brand messagesto be always unique. Compared to theestablished multinational brands, thelocal brands from fast-growing marketsare relatively weak on “difference”, how todevelop a differentiating proposition thatis meaningful to the consumers would bethe key question to answer.

CLEAR PURPOSE FAST-TRACKS BRAND EQUITYIt’s not enough to be different for thesake of it. To be meaningful, brandsmust have a strong purpose that goesbeyond “making money”, and is inspiringand relevant to consumers. This meansstriving to improve people’s lives in someway – making them easier, healthier ormore interesting – and if it’s a “higherpurpose” that contributes to making theworld a better place, all the better.

In the digital era in which difference isharder to achieve, for many brands withcomparable functionality and emotionalappeals, purpose can become a truedifferentiator and accelerate brand equitygrowth.

INNOVATION

DRIVES SUCCESSConsumers see brands that set trendsas different and as leaders, and theseperceptions pay dividends. Over 10 years,the brands that scored highest againstthe BrandZ™ “trend-setting” metricincreased an average of 161% in brandvalue, while those that scored lowestincreased only 13%. Many of these brandsare from the technology sector, but wealso see Chipotle, Nike, UPS and PayPalscoring highly.

To be a trendsetter means anticipatingthe directions consumers will want togo in, identifying the gaps where needsare unmet, and getting there first. Thisis a risky strategy, which a brand canmitigate by knowing their consumerswell.

LOVE ISN'T ALLYOU NEED - BUTIT'S POWERFULLove has a multiplier effect. Over thepast decade, the rise in value for b randsscoring high in the BrandZ™ “love”metric was 10 times greater than th atof their low-scoring rivals. Love usuallyfollows great performance and a greatexperience – and it’s amplified by socialmedia. Brands from across categoriesscore highly on love, from Visa to KFC.They have one thing in common: theytry to understand the world from thecustomer’s point of view.

Innovation and love form a virtuous circle.A true innovation that makes people’slives easier can quickly generate love,but even the most trendsetting brandsswing between periods of intensiveinnovation and iterative progress, whenlove provides a ”cushion” until the nextwave of creative development. Microsoft,a trendsetter now, could do with a doseof love to balance this out.

To remain competitive through thenext decade, brands from fast-growingmarkets, and those aspiring to jointheir ranks, should stop seeing brandbuilding as a cost and view it a s aninvestment in future financial success.They need a holistic brand buildingsystem that focuses on every aspect– from communications to CRM tocreating the whole experience – tomake consumers’ lives better, buildmeaningful difference and embracedisruptive technologies. Brands are afabulous investment, and need to benurtured and cared for accordingly.



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THE LATIN AMERICANECONOMIC CONTEXT

In the last twoyears the Latin

American regionpresented relatively

low GDP growthrates, around 2%.

Brazil is in bad shape, with politicaland economic problems in addition toinflation. Argentina also faces politicaland economic problems, and Venezuelahas had serious problems with internalsupply, high inflation and political issues.

The deceleration of the economy in theregion – decreasing steadily since 2010,when it reached a high 6.1% GDP growth,can be explained by the following factors:

1. In the most important countries,much of the growth in 2010 wasdue to the increase in middle classpurchase power and relative stabilityof public accounts. Also, prices ofcommodities were high and Chinagrew 2-digits per year – China is ahuge market for Latin Americancompanies.

2. For the domestic market, factors likethe ascension of middle class andstability of public policies failed from2011-2014 and generated a very smallgrowth in the period. For 2015, theWorld Bank is forecasting a worsescenario, with a GDP growth for LatinAmerica of merely 0.4%. According tothe bank, the region is practically inrecession.

3. During the same period, prices ofcommodities like iron, steel and oil,decreased substantially. Part ofthe problem is the slowing Chineseeconomy, but also, in the case of oil,it was strongly influenced by theindustry context.

In addition to this unfavorable scenario,Moody’s Investors Service hasdowngraded Brazil’s government bondrating from Baa2 to Baa3, a clear signalthat the country has delivered lessthan expected in terms of economicperformance.

Another important index that reflectsthe economic instability in LatinAmerica is the Emerging MarketsBonding Index – EMBI+, produced by

JP Morgan, which tracks emergingmarkets, government debt andcorporate debt asset classes.

As a consequence of all these factors,market capitalization of Latin Americanpublic traded companies in the regionsuffered a substantial decrease, asshown in the chart below

The region has to learn how to deal withthe new external context: lower growthof emerging economies, less dynamismof developed economies and lowerprices of raw materials. All these factorsgreatly affect the economic growth and

development of the region, which requiresignificant changes to aspects suchas investment levels and productivitygrowth with a long-term perspective.

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LATIN AMERICA OVERVIEW

Source: CEPAL

Latin American GDP growthIt was the first time that Latin America grew less than the average of the 34countries of The Organization for Economic Cooperation and Development (OECD).

5%

0%1.3%

2.6%3.1%

4.6%

6.1%

-1.8%

5.3%5.3%

4.2%

1.8%

5.7%

3.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GDP growth

20132014

Brazil Argentina Colombia Mexico Peru Chile

This is far removed from the prosperousscenario seen from 2004 to 2012, whenthe rates reached over 5% in manyyears, according to CEPAL – EconomicCommission for Latin America andthe Caribbean. In 2014, the region hada 1.3% GDP growth, the second worstperformance in the last 10 years (in2009 the region showed a -1.8% GDPgrowth, a reflection of the world financialcrisis).

The countries that most contributed

to the slowdown in the economyperformance of the region in 2014 wereBrazil, Argentina and Venezuela. Brazil,the largest country with around 50% ofparticipation in the region’s GDP, hadalmost a zero growth of 0.1%, Argentinagrew only 0.5% and Venezuela dropped4.0%. Other important countries in theregion such as Colombia achieved a GDPgrowth rate in 2014 of 4.6%, 2.4% forPeru, while Mexico and Chile registered2.1% and 1.9% respectively. However,almost all of these countries, withthe exception of Mexico, have showndecreasing GDPs in the last two years.

Source: CEPAL

Source: JP Morgan

Source: Bloomberg

1.4%

2.1%

5.8%

2.4%

4.2%

1.9%

1.3%

-4.0%

0.1%

2.7%

4.6%

2.9%

4.9%

0.5%

0%

Venezuela

Country risk - EMBI + Companies’ Market Value

0%

1%

2%

3%

2013 2014 July 2015

Brazil

Brazil Ibovespa

Peru

Peru BVL

Colombia

Colombia IGBC

Mexico

Mexico IPC

Chile

Chile IGPA

10%

0%

-10%

-20%

-30%

2013 2014 July 2015

Market capitalization of Latin Americanpublic traded companies in the regionsuffered a substantial decrease.

Almost all the main countries in theregion have risen in terms of risk(except Chile).


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HEADLINENEWS

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LATIN AMERICA HEADLINE NEWS

BRAND VALUE

US$ 131.9 BILLIONTotal Value of Latin American Top 50 Brands

+2%

Brand Value Change 2014-2015

Source: Millward Brown and BrandZ™

The total value of the BrandZ™ Top 50Most Valuable Latin American Brands2015 increased 2% in comparison to2014 (US$ 129.2b in 2014 vs. USD131.9b in 2015), despite the loweconomic activity in the region since

2014. This demonstrates that strongbrands can better face difficult periods,with less damage to the shareholdervalue.

If we consider the Top 10 BrandZ™LatAm, the variation was +10% in US$from 2014 to 2015.

Brands from the Financial Institutions,Services and Beer, Food & PersonalCare segments performed rather well,with growth rates of 18%, 11% and 9%,respectively.

On the other hand, brands f rom the B2Band Retail segments performed poorly:they decreased by 34% and 15% in 2015,respectively.

THE TOP FIVE BRANDSFor the first time, the most valuableLatin American brand was Skol, theBrazilian beer brand that belongs toAmbev, an AB Inbev company. Thisperformance reflects the consistencyin brand positioning of Skol, targetingits products to younger audiencesmore willing to adopt a brand for alifetime and supporting its strategywith sponsorships of music festivals,which has strengthened the brandrelationship with this audience.

Once again Beer, Retail,Communication Providers and Bankscategories took the top 5 positions:Skol (Beer – Brazil), Corona (Beer– Mexico), Telcel (CommunicationProviders – Mexico), Bradesco (Banks –Brazil) and Falabella (Retail – Chile).

BEER MAKES THETOP 10 FOR THE THIRDCONSECUTIVE YEARThe beer category dominated theranking again in 2015, conquering fiveof the top ten positions – four of thebrands belonging to AB Inbev: Skol,Corona, Brahma and Modelo.

Skol, the most valuable Brazilianbrand, had a 20% growth to US$ 8,500million, followed by Corona, the mostvaluable Mexican brand, with a value ofUS$ 8,476 million, a 6% growth.

NEW ENTRIESThe BrandZ™ Top 50 LatAmsaw six new entrants in 2015:

49 Banks

COLOMBIA

Communication Providers46

ARGENTINA

Banks42

BRAZIL

Banks36

Retail38

Beer41

MEXICO

1 US $8,500 Million

2 US $8,476 Million

8 US $4,185 Million

9 US $3,672 Million

10 US $3,604 Million


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3

4

1. Mexico grew its contribution to theBrandZ™ Top 50 Most ValuableLatin American Brands 2015 for thethird consecutive year, from 33% to37%. The categories Beer, Food &Personal Care, Financial Institutionsand Services – which combinedvalue grew 15%, led this growth. Itis a combination of solid financialperformance with an increase inthe perception of consumers in thatmarket.

2. Brazil maintained its contributionto the BrandZ™ Top 50 LatAm at24%. The country performed well inthe categories Beer, Food & PersonalCare and Financial Institutions, butthis was neutralized by the weakperformance in the B2B categorythat is mainly represented by the oilcompany Petrobras (decreased in75%), which suffered with corruptionand operational problems in 2014.

3. Chile, with a portfolio of BrandZ™Top 50 LatAm based in Retail,decreased from 20% to 15% from2014 to 2015. This industry, whichcomprises 9 brands in the Top 15Chilean ranking and representsalmost 60% of the Chileanranking, dropped 17%. A moredetailed analysis of this variationshowed that Financial MarketCapitalization decreased 22.8%.Apparently, a strong brand helpscompanies to reduce the impact of

financial valuations within the crisiscontext.

4. Colombia, the fourth on the list,dropped from 16% to 15% dueto a decrease in value from animportant brand, Ecopetrol. On theother hand, Financial Institutions,the main category in the country,increased by 3%.

20 21

LATIN AMERICA KEY FINDINGS AND FUTURE TRENDS

Even in a crisis context, companies that have strong brandswere more valuable than the average of the market: BrandZ™Top 50 LatAm portfolio increased 2% in USD, while almost alleconomic indices such as GDP, Country risk and Company’sMarket capitalization showed a substantial decrease.

Most popular brands and local icons in the Latin Americanregion like Skol (Brazilian Beer), Telcel (Mexican CommunicationProvider), Bradesco (Brazilian Bank), Bancolombia (ColombianBank), Falabella (Chilean Retail) and Televisa (MexicanCommunication Provider) are examples of brand strategiesfocused on the massive middle class and low-end population,exploring emotional attributes that are heavily associated withlocal needs.

According to The Economist magazine, in Europe the foreigncommerce flow inside the European bloc is almost 72%, whilein the Latin American region it is less than 30%. This is onereason why the BrandZ™ Top 50 Most Valuable Latin AmericanBrands 2015 has predominantly local brands. However, thissituation represents a great opportunity for local brands toexpand their operations overseas, breaking geographical andcultural barriers. Corona (Mexican Beer), Falabella (ChileanRetail), Claro (Latin American Communication Provider) andItaú (Brazilian Bank) are good examples of this movement.

The Financial Institution category had the most impressiveperformance in the ranking, growing 18% f rom 2014 to 2015.The Brazilian financial market s howed a significant recovery

with the M&A operations, which favored the perception of thecurrent players, together with the reduction in the credit costsof the Stated-Owned Enterprises (SOE) banks, mainly Bancodo Brasil and Caixa Econômica Federal. Another outstandingperformance was Bancolombia, which increased its value by16% in the period. The bad news in the category came from theChilean banks, due to the economic instability of the country.

BRAND VALUEDISTRIBUTIONBY COUNTRY

The value distribution by country in the BrandZ™ Top 50Most Valuable Latin American Brands 2015 was a repeatof what happened in 2014: Mexico dominated the ranking,

growing from 33% to 37% share. Brazil remained in secondposition, with a steady contribution of 24%.

PeruLatAm

ArgentinaBrazilMexico

ColombiaChile

2014

33%1%

24%20%

16%

4%

3%

2015

37%

2%

24%

15%

15%

5%

2%



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LATIN AMERICA PERFORMANCE BY INDUSTRY SECTOR

BEER, FOOD &PERSONAL CARE The category has been the maincontributor to the BrandZ™ Top 50LatAm for the third consecutive year,

representing 35% of the total value in2015 (against 33% in 2014). Beer, themain sub-category, represented 82%of the category in 2015, against 78%in the previous year. Brazil, the maincontributor in the sub-category Beerwith participation of 42%, grew 25% inbrand value, followed by Mexico, withparticipation of 35% and 15% growth.This good performance is once again justified by the capital markets’financial performance of the ownersof the beer brands of these countries(Anheuser Busch, Grupo Modelo andHeineken). The segment has benefitedfrom the boost in consumptionof popular brands in the region.According to Euromonitor, since 2008the consumption of beer in Latin

America has increased by 6% per year.

RETAILThis category, which showed thehighest growth in 20 14 (14%),decreased 15% in 2015.

Chile, one of most mature retailmarkets in the region, showed a weakperformance in its brands Falabella

and Sodimac – the Top 2 mostvaluable brands in the country. Thesedecreased 23% and 24%, respectively.

In Brazil the retail segment as a wholehad in 2014 the worst performancein the last 11 years: it increased2.2% in 2014 in comparison to 2013as a reflection of the crisis and acomplete review of the hypermarketmodel. Cash&Carry model retailerslike Atacadão and Assai have gainedsubstantial market share comparedto hypermarkets format.

Looking at the evolution from 2014 to 2015,we can see that Technology has gainedimportance in both Chinese and Globalrankings. In China the category grew 50%(from 16% to 24%), due to important portaland media companies that have enhanced

their operations in the country. In the Globalranking, Technology, the most importantcategory, grew 15% (from 27% to 31%). Evenin Brazil, the Technology category is startingto appear in the ranking – the search engineBuscapé makes its debut here th is year.

FINANCIALINSTITUTIONS(BANKS AND INSURANCE)

The Financial Institutions categoryenhanced its contribution to theBrandZ™ Top 50 LatAm, from 22% in2014 to 25% in 2015. In terms of brandvalue, the category had the largestgrowth in the ranking (18%). All thecountries that make up the categoryshowed growth in brand value.

Brazil became the leader of theFinancial Institutions category, witha participation of 34% (30% in 2014),a 41% growth in terms of brand value.Part of this increase is because thisis the first time that BTG Pactualis on the list. Also, we could see theresults from a consolidation in thismarket (mergers that happened in2010-2013) and also some recoveryof spreads caused by SOE (Stated-Owned Enterprises) banks (Banco do

Brasil and Caixa) in 2012/2013.

Colombia, the second largest inthe category, saw its participationdecreasing from 39% in 2014 to 33%in 2015. However, the brand valueof Financial Institutions in Colombiaincreased 3% in the period.

Both Mexico and Peru had a growthin share in the category (from 20% to21% and from 10% to 11%, respectively).Mexico grew 32% and Peru 28% inbrand value.

SERVICES(COMMUNICATION PROVIDERS

AND AIRLINES)

The Service category (which hada 4% fall in 2014) increased 11%in 2015, despite the decrease ofClaro (LatAm communicationProvider, -12%) and LAN (ChileanAirline, -22%). It benefited mainlyfrom the Mexican CommunicationProvider brands Telcel, Televisa andTelmex – the Top 3 of the category– which grew 16%, 22% and 15%,respectively. The good performanceof these three Mexican brands wasmainly due to financial reasons.

B2B

(ENERGY / OIL AND INDUSTRIAL)

B2B showed again the worstperformance in 2015, a 34% fall(-19% in 2014), mainly dominatedby the sub category Energy/Oil,which decreased 44% due to the fallin the commodity’s price, exchangerate depreciation and problems interms of corporate governance.The Mexican cement companyCemex had an 11% growth, whichcompensated for part of this fall.

20152014

33% 35%

22% 25%19%

16%

11% 7%

15% 16%

Performance by industry sector

Retail Services B2BBeer, Food & Personal Care Financial Institutions


COMPARISON WITH OTHERBRANDZTM BRAND VALUATION RANKINGSThe distribution of the Latin American rankings by category is very distinct in comparison to

the Chinese and the Global rankings, due to the economic specificity of each region. While inthe Latin America rankings generally the most important category is Beer, Food & PersonalCare – mainly explained by the growth of the consumption of popular brands, in both Chinaand Global rankings, Technology appears as one of the most important categories.

2015 Brand Valuation SummaryCategory Latam* Brazil* Mexico* Chile* Colombia* Peru* Argentina* China** Global***

Technology 2% 24% 31%

B2B 7% 3% 6% 12% 9% 3% 34% 6% 8%

Beer, Food & Personal Care 35% 47% 37% 2% 33% 48% 16% 6% 11%

Financial Institutions 25% 25% 12% 15% 44% 42% 14% 28% 16%

Retail 16% 11% 19% 61% 3% 5% 0% 14% 8%

Services 16% 12% 26% 10% 10% 2% 36% 19% 13%

Others† 3% 12%


* BrandZ™ Top 50 Most Valuable Latin American Brands 2015

** BrandZ™ Top 100 Most Valuable Chinese Brands 2015 (considering the Top 50)

*** BrandZ™ Top 100 Most Valuable Global Brands 2015 (considering the Top 50)

2014 Brand Valuation SummaryCategory Latam* Brazil* Mexico* Chile* Colombia* Peru* Argentina* China** Global***

Technology 16% 27% B2B 11% 12% 6% 11% 15% 2% 43% 7% 10%

Beer, Food & Personal Care 33% 41% 38% 2% 33% 56% 18% 8% 12%

Financial Institutions 22% 21% 10% 15% 41% 39% 6% 40% 17%

Retail 19% 12% 21% 61% 3% 2% 0% 1% 7%

Services 15% 13% 24% 11% 9% 2% 33% 24% 13%

Others† 3% 15%


† Cars, Motor Cycles, Motor Fuels, Lubricants, Detergents, Jewelry, Paints, Mosquito Repellents, Real State, Home Appliances, Tobacco, Apparel.


12/83

# BrandBrand Value

(US$ Mil.) BrandContribution

Index

BrandValue

Change2014-20152015 2014

1 8,500 7,055 4 20%

Beer

2 8,476 8,025 4 6%

Beer

3 6,174 5,308 3 16%

Communication Providers

4 5,202 4,177 2 25%

Banks

5

4,709 6,084 4 -23%

Retail

6 4,423 3,625 2 22%


7 4,315 3,376 2 28%

Banks

8 4,185 3,585 4 17%

Beer

9 3,672 3,565 5 3%

Beer

10 3,604 3,477 4 4%

Beer

11 3,554 3,097 2 15%


12 3,476 3,006 4 16%

Banks

13 3,107 4,107 5 -24%

Retail

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

40 1,236 969 2 28%

Banks

41 1,197 - 4

NEWENTRY

Beer

42 1,118 - 1

NEWENTRY

Banks

43 1,108 1,076 5 3%

Beer

44

1,107 1,058 2 5%

Retail

45 1,072 1,103 3 -3%

Retail

46 1,069 - 2

NEWENTRY


47 1,042 1,182 2 -12%

Food & Dairy

48 1,039 931 3 12%


49 997 - 2 NEWENTRY

Banks

50 985 1,262 4 -22%

Retail

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

27 2,017 3,446 1 -41%

Oil & Gas

28 1,940 1,759 1 10%

Banks

29 1,867 2,084 3 -10%

Banks

30 1,859 1,145 3 62%

Beer

31

1,808 1,540 3 17%

Banks

32 1,700 2,236 5 -24%

Personal Care

33 1,678 1,630 5 3%

Beer

34 1,636 1,379 4 19%

Banks

35 1,575 1,545 1 2%

Oil & Gas

36 1,533 - 2 NEWENTRY

Banks

37 1,479 1,037 3 43%

Banks

38 1,411 - 1

NEWENTRY

Retail

39 1,309 1,094 4 20%

Beer



BRANDZTM TOP 50 MOST VALUABLELATIN AMERICAN BRANDS 2015

LATIN AMERICA TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015

24 25

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

14 3,091 2,804 2 10%

Retail

15 3,039 2,748 1 11%

Industry

16 3,008 3,426 1 -12%


17 2,845 2,486 4 14%

Retail

18

2,795 2,608 3 7%

Food & Dairy

19 2,758 3,181 4 -13%

Oil & Gas

20 2,757 2,466 2 12%

Food & Dairy

21 2,595 3,175 3 -18%

Banks

22 2,557 2,687 3 -5%

Retail

23 2,436 2,365 4 3%

Beer

24 2,398 3,058 4 -22%

Airlines

25 2,207 2,494 2 -12%

Banks

26 2,198 2,457 3 -11%

Banks

Brazil MexicoColombiaChileArgentina Peru


13/83

ARGENTINAARGENTINA


14/83

JULIO FRESNO APARICIOManaging DirectorMillward Brown, [email protected]


ARGENTINAKEEPS BUILDING ITSOWN LABYRINTH

We are sure about one thing:after twelve years managing the

country from the Pink House,the Kirchner family is leavingthe government in December,

after the general elections thatwill be held in October. But… are

they going to give up power?

Either Buenos Aires Province Governor Daniel Scioli, a followerof Kirchner policies, or Buenos Aires City Mayor MauricioMacri – the main representative of the opposition to thegovernment – will assume the Presidency of the Republic ina few months. And even though the main question should bewhether they will change the current policies or not, the realissue is whether they will have the capacity to get rid of theinherited way of doing politics in Argentina.

The main macroeconomic indicators (GDP, employment,exports/imports) are not showing a clear reaction. Theindustrial activity has been declining for several periods ina row, and the private sector is not creating many new jobs.

The monetary expansion is not followed by an increase inthe level of reserves at Central Bank, so the currency price isslowly trickling day by day. On top of that, tax pressure andthe growth in raw material and conversion costs are shrinkingthe margins. In spite of the stagnation of consumption,inflation rates remain amongst the highest in the world,forcing consumers to boost creativity in order to protect theirpurchasing power.

Consumers have been struggling with high inflation ratessince 2008, continuously adapting their consumptionpatterns and habits. Nonetheless, the defensive techniqueshave evolved and behaviors have become even moreunpredictable.

CONSUMERS ARE SAVING,NOT SPENDINGUnder this political and economic uncertainty, consumersare much more selective in their spending, and they look forspecial prices and promotions before deciding on a purchase.In 2012 and 2013 there was an impressive demand forcars, electronic devices and big-ticket items in general as adefensive strategy for fighting inflat ion, the devaluation ofthe local currency and the reduced financing options. But in2014 and during the first half of 2015, consumers have beenchoosing to save more. In other words, they have turned from

spendthrift to thrifty.

Actually, we are observing two apparently contradictorytrends: more shoppers buying only what they need for thenext few days (careful consumers) and at the same time,more shoppers buying a large amount of items in wholesalers,since they recognize that they can save up to 30% by buyingin bulk compared to supermarkets and hypermarkets.As a consequence of these changes, we are starting tonaturalize peculiar behaviors: a consumer, even from a highsocioeconomic level, might buy a pack of frozen hamburgersin a hard discount shop, a bottle of Malbec wine in a Chinese-around-the-corner store, and a six-pack of Coke in awholesaler or another supermarket just to save a few pesos.

QUALITY STILL COUNTSHowever, looking for the best deal does not necessarily meanthat quality is less relevant. Argentinian consumers wantno substitutes for self-indulgence and reward; they want toenjoy the money now, but in a clever and convenient way.And tourism is a great example of this: many people arespending money on expensive trips to exotic or glamorousdestinations, but they wait for the right moment to buy thetickets, in general, after an exhaustive search for promotions(and of course, paying in twelve installments in local currency,expecting a devaluation of the peso after the elections.)

In conclusion, despite the negative context you can neverbe pessimistic about the long term development of thismarket. Regardless of the current difficulties, there are signsof a great hidden potential: Argentina holds the highestbroadband and smartphone penetration levels in LatinAmerica, and it ranks third globally in the use of social medianetworks, according to ComScore. There are forces merelysleeping out there, and islands of underdeveloped talent thatonly need an initial spark and predictable game rules to getconnected and expand.

28 29

ARGENTINA THOUGHT LEADERSHIP

KEY FACTS

ANNUAL GDP AT CURRENT PRICES

Total at current prices: US$ 540 million (2014)

GDP per capita (annual dollars): US$ 12,922 (2014)

Growth rate: 0.5% (2014)

Country’s share in regional GDP: 11.3% (2014)

Net foreign direct investment: US$7.9 billion (2014) US$4.5 billion (2015)

Capital City Buenos Aires

Currency ARGENTINENEW PESO

Area 2.78 million km2

Population (THOUSAND) 418,000 (2014)

Population growth rate (ANNUAL) 0.8% (2010-2015)

Life expectancy 76 years (2013)

Literacy rate of 15-24 year olds 99.2% (2012)

Unemployment rate 7.1% (2013) 7.4% (2014)

Sources: CEPAL, Comisión Económica ONU

CEPASTAT – Database and Statistical Publications

Financial Times Latin America & Caribbean

World Bank Unesco


15/83



BRANDZ

TM

TOP 5MOST VALUABLEARGENTINIANBRANDS 2015

# BrandBrand Value


Index

BrandValueChange

2014-20152015 2014

1 1,575 1,545 1 2%

Oil & Gas

2 1,069 766 3 40%


3 729 649 5 12%

Beer

4 656 - 3

NEWENTRY

Banks

5 613 439 3 40%


ARGENTINA KEY FACTS AND TOP 5 MOST VALUABLE ARGENTINIAN BRANDS 2015

30 31

BRAND VALUE

US$ 4.6 BILLIONTotal Value of Argentinian Brands

+29%Brand Value Change 2014-2015

Source: Millward Brown Vermeer

1 2

YPF is Argentina’s leading energy company and largestfuel producer.

It operates a fully integrated oil and gas business withleading market positions across the domestic upstreamand downstream segments. Upstream operations includethe exploration, development and production of crudeoil, natural gas and propane. Downstream operationsare focused on refining, marketing, t ransportationand distribution of oil and a wide range of petroleumproducts, petroleum derivatives, petrochemicals, propaneand bio-fuels. YPF operates a network of more than 1,600filling stations and has the ability to produce 530,000barrels of oil daily from 91 production areas transportedby 2,700 kilometers (1,677 miles) of pipeline. Thecompany was founded in 1922 and operated as a staterun enterprise until 1993 when a public offering reducedthe government’s ownership stake to a minority position.In 1999, Spain’s Repsol acquired majority ownershipof YPF, but early in 2012 the government reassertedownership with a presidential decree to nationalize YPF.

Personal is the mobile brand of The Telecom Group.

Personal has 18.2 million customers in Argentina andnearly 70% of those rely on the company’s prepaid service.Personal drives brand awareness through sponsorshipof signature events, such as the annual Personal Festmusical festival that draws roughly 70,000 attendeesover two days. The company offers products for differentsegments of the market, from the high end PersonalBlack handset to the more value priced Personal Touchsmartphone offering. The brand also seeks to driveloyalty through its Club Personal program. Personal’sparent company The Telecom Group was created in 1990when the government allowed public ownership of thepreviously state run enterprise. Its shares are traded onthe New York Stock Exchange under the symbol T EO

PARENT COMPANY YPFHEADQUARTERS Buenos AiresINDUSTRY Oil & GasYEAR OF FOUNDATION 1922WEBSITE www.ypf.comBRAND VALUE US $1,575 million

PARENT COMPANY The Telecom GroupHEADQUARTERS Buenos AiresINDUSTRY Communication ProvidersYEAR OF FOUNDATION 1990WEBSITE www.telecom.com.arBRAND VALUE US $1,069 million


16/83

TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015ARGENTINA KEY FACTS AND TOP 5 MOST VALUABLE ARGENTINIAN BRANDS 2015

32 33

3 4 5

Quilmes is Argentina’s best-known beer brand.

Cervecería y Maltería Quilmes is the top brewer inArgentina and part of the Anheuser-Busch InBevgroup’s extensive portfolio of more than 200 brands.Within the Anheuser-Busch InBev brand hierarchy,Quilmes is regarded as a “local champion” due to itsleadership position within Argentina. The companyhas 4,850 employees and operates five plantsand eight distribution centers. The brand is activein promoting social initiatives such as “VivamosResponsablemente,” focused on encouragingresponsible drinking and the “Futuro Posible”campaign which provides student scholarships anddonations to hospitals and educational institutions.

Macro is a private bank that has undergoneenormous growth in the last ten years.

Founded in 1988 as a commercial bank, Macroacquired capital stock in numerous privatizedprovincial banks such as Banco Misiones, Banco Salta,Banco Jujuy, Banco Bansud. It also acquired somebranches of Scotiabank Quilmes, Nuevo Banco Suquía,Banco Nuevo Bisel, and Banco Privado de InversionesBanco Tucumán. This ambitious acquisition programhas resulted in its becoming the th ird-ranking privateArgentine bank in terms of net assets, the fourthin terms of deposits and the fif th in terms of creditoutstanding to the private sector. Macro Bank waslisted in the New York Stock Exchange (NYSE) in2006, becoming the first Argentine company to belisted abroad since the end of the 1990’s.

Telecom Argentina is one of the main nationaltelecommunication companies in Argentina.

Telecom Argentina offers local and long distance fixed-line telephony, cellular, data transmission and Internetservices. The company offers mobile service throughits Personal brand and Internet broadband servicesthrough its Arnet brand, which in 2013 launched a videostreaming service called Arnet Play. T he increasedbundling of services, coupled with new products andservice introductions, has helped the company achievea record low level of customer turnover. TelecomArgentina is one of the largest employers in the countrywith over 15,600 employees nationwide. It beganoperations in 1990 after the Argentinian governmentcompleted a transaction allowing for public ownershipof the company, which now trades on the New YorkStock Exchange under the symbol TEO.

PARENT COMPANY Cervecería y Maltería QuilmesHEADQUARTERS Buenos AiresINDUSTRY BeerYEAR OF FOUNDATION 1890WEBSITE www.cerveceriaymalteriaquilmes.comBRAND VALUE US $729 million

PARENT COMPANY Macro GroupHEADQUARTERS Buenos AiresINDUSTRY BanksYEAR OF FOUNDATION 1988WEBSITE www.macro.com.arBRAND VALUE US $656 million

PARENT COMPANY The Telecom GroupHEADQUARTERS Buenos AiresINDUSTRY Communication ProvidersYEAR OF FOUNDATION 1990WEBSITE www.telecom.com.arBRAND VALUE US $613 million


17/83

TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015ARGENTINA THOUGHT LEADERSHIP

CHANGE ISINEVITABLE;

DEVELOPMENTIS OPTIONAL

We are living in a liquid age, since nothingseems to be stable, nothing lasts forever.Suddenly, those things that were safe turnedinto something unstable, while some new trendsarose and changed the rules. We all live andwork in the same environment, and in the jungleof business, those who best adapt to the currentcontext are the ones who thrive and survive.

The political and economic context posesshort-term challenges and mid-termuncertainties. But all-level managementis used to facing changes, and brandsin Argentina have mastered the skillsof elasticity. As a result, we see a lot ofexamples of brands that look ahead,despite the success of their past.

CREATINGEVER CLOSER

RELATIONSHIPSTechnological development and itscascade to a larger population haveenabled a dramatic change, since the newmedia environment is shaping the waywe communicate with our friends andfamily. By using different applicationsand platforms, we are able to talk withsomeone who is in China, at no cost, whilesharing files and videos. In this context,the notion of distance and closeness hasto be redefined. And this also applies tothe relationship between brands andconsumers: What does it mean for abrand to be close to its consumers? Howcan we foster the technical advancementto get closer? What does it take toremain meaningful?

Let’s consider some concrete examplesof brands that are surfing the new trendswhile tackling specific consumers’ issues:

• In Argentina, Unilever is theundisputed leader in the personalcare market in general, and inantiperspirant deodorants for womenin particular, is managing two well-known brands: Rexona and Dove.While taking care of the environmentis an established trend, consumers arenot so willing to spend more money infavor of eco-friendly products, since

many of them could not meet thebasic functional needs of the category.But Unilever is challenging thispattern, because they are launchingsmaller packaging which saves rawmaterials (less aluminum and others)but keeps the protective power of theproduct, promising to last the same asthe original pack. This bold initiativerequires a clear communication usinga wide range of touchpoints in orderto convey the message in a believableway. We are confident that with thisUnilever will reaffirm its leadership byoffering a technical solution that keepsprotecting you against perspirationwhile setting new trends in thecategory.

• Ford Argentina is another illustrationof a brand clearly focused on usingtechnology as a way to differentiatefrom competitors and to command apremium price. All the recent launcheshave endorsed the idea of “KineticDesign”, which allowed the parentbrand to leverage all the efforts madeby each model in each segment. Thelast campaign successfully introduced

specific features (automatic opening,push-bottom star, active park assist,lane-keeping system, automatic brakeat low speed) using an impactfuland synergetic communication thatpromoted both the vehicles and thebrand. As a result, Ford remain closeto their customers and challengesthe status quo of the category byimplementing high-end technology.

• There is a preconception thattraditional media such as newspapersor TV channels are the most

concerned about the development ofnew platforms. However, successfulcompanies are able to see theopportunity in every crisis, and TVchannel Telefé is proof of that. Insteadof fighting the alternative screens,they look for ways of integratingthem into their content, thus theycan create a new experience for theaudience. They have launched a mobileapp (Mi Telefé) that allows people tosee exclusive content that enrichesthe experience of watching a TV show,by giving the chance to participateand to follow “behind the scenes”.TV Series “Aliados” was a hit amongteenagers, because they could interactwith the story wherever and wheneverthey wanted, and they could watch

webisodes before aired.

In conclusion, the key to success is toembrace technological change in a waythat creates value for the consumers,making their lives easier and moreenjoyable. Following Socrates’ principle,the secret of change is to focus all theenergy not on fighting the old, but onbuilding the new.

MARIANA FRESNO APARICIOClient Service Director

Millward Brown, [email protected]

34 35


18/83

SEBASTIÁN CORZOCS Senior ConsultantMillward Brown, [email protected]

THE BATTLEOF THE TABLE

Try to visualize this for a moment: an independent teenager,aiming to give the impression of being irreverent andcareless, walks down the street listening to music withan icy can of a soft drink in his hand. This could be thestereotyped key visual of an ad for Coke or Pepsi, couldn’t it?

Well, back to the current reality of the Argentinian market,I bet you won’t easily find any ad like this for Coke nor forany other soft drink in the frenetic, hectic and multiscreenmedia environment.

SIZE MATTERSThe numbers speak for themselves: off-trade channels account for 93% of softdrinks volume, and that explains whythe companies are focusing their effortson in-home consumption. In orderto increase revenues by selling moreliters, major players have developedcomplex price-pack architectures, andlaunched bigger bottles. This is the casewith Danone’s Villa del Sur Levité, thatpushed 2.25 liters bottles instead ofthe traditional 1.5lt pack. This is greatnews for a savvy consumer who looksfor the best deal, because this change

in the bottle size means a higher out ofpocket, but a lower price per liter.

From the communication perspective,it’s one thing to develop formatstargeted to social occasions, butcreating advertising platforms to winthe battle of everyday lunches anddinners is a totally different story.Forget about the celebrities, forgetabout the epic music and the majesticscenery! Now is the time of ordinarypeople, sharing an ordinary meal in amiddle-class living room, with a largebottle of something colorful and tastyon the table.

Sounds dull? Definitely not! Theresource that most of the companieshave chosen to stand out and gain

differentiation is humor: a wide varietyof jokes and funny situations thateveryone can relate to.

EARNINGTHEIR PLACEI could give you lots of differentexamples, but I’d like to highlight theones that best identify a distinctiveinsight:

We by Ser, a non-sugar flavoredwater brand managed by Danone,launched the campaign “The angelof the tables” under the claim“tables have changed”. The idea isthat in every group of young-adultfriends, you can find someonewith very special preferences, sodisagreements become a specialingredient of each meeting. H2Oh!,Pepsico’s flagship in the flavoredwater market is adopting a similarstrategy: they developed a campaign(Silver Effie Award in 2014) in whicha very particular member of aconservative family causes troublein his attempt to bring new flavors ofH2oh! to the table.

Coca-Cola has been working hardwith a “Meals” platform for a coupleof years. The last campaign shows arebel rocker girl sitting at the tablecomplaining about her family. Thenher mom brings her an electric-guitarshaped fried egg and changes hermood, helping her to recognize that

in the end family is really importantto her, but in a witty way.

Tang, the leader of powder juices,was challenged by the presenceof new players and substitutes onthe table. With “La mesa de Lucas”(Lucas’ table) campaign, Mondelez’sbrand tried to reinstate the roleof the kids during lunch or dinner,since they are the ones who bring joy to the table. Thanks to a creativegame, Lucas turns a dull momentinto an interactive and dynamic one,changing the mood of the family.Tang’s main competitor, the localbrand Arcor, is also attacking thetable but a with more edgy approach,using an acid humor that focuses onthe conflicts that arise between thefather and his mother-in-law everytime they sit at the table.

To sum up, although many playersmay look for ways to increase theirpresence during meals so they can gainmarket share, not all of them will b evictorious in the battle of the ta ble. It isnecessary to convey relevant messagesto meet the needs of a more demandingconsumer, while commanding a fastpace of innovation in order to maintaindifferentiation. And, as everyone knows,winning a battle doesn’t guarantee thatyou’ll win the war…

36 37

TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015ARGENTINA THOUGHT LEADERSHIP

1

2

3


19/83

BRAZILBRAZIL


20/83

BRAZIL TOP 50 MOST VALUABLE BRAZILIAN BRANDS 2015

40 41

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

1 8,500 7,055 4 20%

Beer

2 5,202 4,177 2 25%

Banks

3 4,315 3,376 2 28%

Banks

4 4,185 3,585 4 17%

Beer

5

2,757 2,466 2 12%

Food & Dairy

6 1,859 1,145 4 62%

Beer

7 1,700 2,236 5 -24%

Personal Care

8 1,309 1,094 4 20%

Beer

9 1,118 896 1 25%

Banks

10 1,072 1,103 4 -3%

Retail

11 941 791 1 19%

Payments

12 843 845 2 0%

Retail

13 821 3,252 1 -75%

Oil & Gas

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

40 244 - 2

NEWENTRY

Retail

41 224 231 2 -3%

Travel Agencies

42 219 278 1 -21%

Stock Market

43 218 343 4 -36%

Apparel

44

210 245 3 -14%

Food & Dairy

45 205 227 1 -10%

Airlines

46 198 - 2

NEWENTRY

Retail

47 198 - 3

NEWENTRY

Food & Dairy

48 193 235 3 -18%

Apparel

49 188 - 2 NEWENTRY

Retail

50 176 199 3 -12%

Airlines

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

27 436 287 2 52%

Food & Dairy

28 401 345 2 16%

Loyalty Programs

29 395 - 2

NEWENTRY

Technology

30 381 609 2 -37%

Retail

31

374 328 1 14%

Airlines

32 369 360 3 3%

Car Rental

33 320 275 2 16%

Retail

34 312 320 1 -2%

Health Care

35 310 329 3 -6%

Retail

36 301 260 2 16%

Education

37 268 - 1

NEWENTRY


38 256 134 3 91%

Retail

39 254 - 4

NEWENTRY

Food & Dairy



BRANDZTM TOP 50 MOST VALUABLEBRAZILIAN BRANDS 2015

40 41

# BrandBrand Value


Index

BrandValue

Change2014-20152015 2014

14 779 665 2 17%

Insurance

15 709 422 2 68%

Banks

16 607 - 2

NEWENTRY

Beer

17 605 915 1 -34%

Retail

18

558 702 2 -21%

Retail

19 541 555 1 -3%


20 540 1,005 2 -46%

Food & Dairy

21 493 278 2 78%

Loyalty Programs

22 472 509 1 -7%

Health Care

23 472 449 3 5%

Retail

24 467 862 1 -46%

Mining

25 457 326 2 40%

Education

26 439 434 3 1%

Technology


21/83

BRAND VALUE

US$ 48.4 BILLIONTotal Value of Brazilian Brands

+6%Brand Value Change 2014-2015



42 43

BRAZIL KEY FACTS AND BRAND STORIES

KEY FACTS

Capital City BrasíliaCurrency REAL

Area 8.51 million km2

Population (THOUSAND) 202,000 (2014)

Population growth rate (ANNUAL) 0.8% (2010-2015)

Life expectancy 74 years (2013)

Literacy rate of 15-24 year olds 98.6% (2012)

Unemployment rate 5.4% (2013) 4.9% (2014)

ANNUAL GDP AT CURRENT PRICESTotal at current prices: US$ 2.3 trillion (2014)

GDP per capita (annual dollars): US$ 11,612 (2014)

Growth rate: 0.1% (2014)

Country’s share in regional GDP: 49.2% (2014)

Net foreign direct investment: US$ 67.5 billion (2013) US$ 66 billion (2014)

Sources: CEPAL, Comisión Económica ONU

CEPASTAT – Database and Statistical Publications

Financial Times Latin America & Caribbean

World Bank

Unesco

1

3

2

4

Skol is Brazil’s most popular beer. Its marketingemphasizes enjoyment of life and appeals e speciallyto young people.

The brand was launched in 1964 in Europe and in 1967in Brazil. By 1988, it had risen to become the marketleader for beer in Brazil, a position it still retains.

A pioneer of innovation, in 1971 Skol was the firstcanned beer in the market, in 1989 it launched th e firstaluminum can and in 1993 the long necked bottle.

Its brand positioning is focused on young people: Skolhas promoted various music festivals throughout Brazil,which has strengthened the brand with this audience.

Itaú is the largest Brazilian private bank in terms oftotal assets, the largest financial conglomerate inLatin America and the world’s twenty-third largestbank in terms of market value in 2014.

Established 70 years ago, Itaú evolved to its currentsize as a result of the 2008 merger of Banco Itaú andUnibanco. The bank, which operates in South America,Europe, Asia and the United States, has almost 4,200branches and almost 28,000 ATMs in Latin America.Following the merger, Itaú is building on its reputationfor innovation and efficiency, emphasizing personalservice with the t agline Feito para Você (Made for You).Like its competitor Bradesco, Itaú is also a iming toattract new customers from Brazil’s rising middle class,by offering credit cards to individuals who, until now,lacked access to bank credit.

With the acquisition of HSBC operations in Brazil,Bradesco became the second largest private bank interms of total assets. The bank is the world’s thirty-second largest in market c apitalization in 2014.

Bradesco offers online banking, insurance, pensionplans, credit card services, savings bonds, andpersonal and commercial loans. The bank continueswith its strategy to become Brazil’s most accessiblebank, mainly by having its own branches aroundthe country. It also intends to reach potential newcustomers among the country’s rising middle class.

Bradesco pioneered the sale of insurance and pensionplans through its subsidiary Bradesco Seguros.

Brahma is well known for its innovative and wittyadvertising that relies heavily on sex appeal.

Brazil’s second-largest beer in market sh are (afterSkol), Brahma is marketed in a total of 31 countries.Founded in 1888 by Companhia Cervejaria Brahma,the brand is owned by AB InBev, the world’s largestbrewer.

In 2007, Brahma launched the Brahma Fresh in theNortheast region, in order to compete with low-pricebeers.

PARENT COMPANY Companhia de Bebidas das Américas – AmBevHEADQUARTERS São PauloINDUSTRY BeerYEAR OF FOUNDATION 1964WEBSITE www.skol.com.brBRAND VALUE US $8,500 million

PARENT COMPANY Itaú Unibanco HoldingHEADQUARTERS São PauloINDUSTRY BanksYEAR OF FOUNDATION 1945WEBSITE www.itau.com.brBRAND VALUE US $4,315 million

PARENT COMPANY Banco Bradesco SAHEADQUARTERS OsascoINDUSTRY BanksYEAR OF FOUNDATION 1943WEBSITE www.bradesco.com.brBRAND VALUE US $5,202 million

PARENT COMPANY Companhia de Bebidas das Américas – AmBevHEADQUARTERS São PauloINDUSTRY BeerYEAR OF FOUNDATION 1888WEBSITE www.brahma.com.brBRAND VALUE US $4,185 million


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BTG Pactual is the leading investment bank in LatinAmerica.

It was established in 1983 as a brokerage in Rio deJaneiro. In May 2006, UBS AG purchased Pactual,creating “UBS Pactual”, the division of UBS in LatinAmerican countries. I n October 2008, a group ofpartners left UBS Pactual and joined with PersioArida to create BTG, a global investment companywith offices in São Paulo, Rio de Janeiro, London, NewYork and Hong Kong. In 2009, BTG acquired UBSPactual, resulting in the creation of BTG Pactual. BTGPactual specializes in investment banking, wealthmanagement and asset management.

Sadia is a leading producer of processed andfrozen foods such as hamburger patties and pizza.It exports to more than 65 countries.

Founded in 1944 and listed on the stock market in1971 as Sadia Concórdia SA Indústria e Comércio,Sadia also produces dairy products and servesboth consumers and commercial customers,including fast-food chains. Sadia is part of BRF, apublic company formed in 2009 by the merger ofSadia with another food giant, Perdigão. Exportingactivities began in the 1970s with the sale of frozenhalal-certified chicken to the Middle East.

Cielo is the leader in persuading merchants to joina credit card network, and in handling the paymentprocess.

Formed in 1995 by several financial organizations,including Visa International, Bradesco, Banco do Brasil,Banco Real and the now obsolete Banco Nacional,Cielo was initially known as Visanet. The company wasrenamed in advance of its initial public offering (IPO),which was one of the largest in Brazil’s history. In anindustry challenged by deregulation, Cielo surpasses itscompetition in profitability thanks to its competitivepricing and reputation for good customer service.

Natura is Brazil’s leading manufacturer andmarketer of cosmetics.

Formed in 1969 and first publicly traded in 2004 ,Natura has used a direct sales approach for morethan 30 years, and now ha s more than 1.6 millionsales representatives (“consultants”) in Argentina,Australia, Brazil, Chile, Colombia, United States,France, Mexico, Peru and Venezuela.

One of the first cosmetics companies to marketnatural and environmentally friendly products,Natura has a reputation for social responsibility. Thecompany is also known for its emphasis on researchand development and its use of ordinary peoplerather than supermodels in its advertisements.

Ipiranga is Brazil’s largest private fuel distributioncompany, with a network of approximately 7,100service stations.

After expanding in rural Brazil during the 1960s and70s, Ipiranga became a national brand through itsacquisition of Atlantic in 1993. In 2008, Grupo Ultrabought both I piranga (in most regions), and Texaco,as Chevron was known in Brazil. The collection of gasstations began to consolidate under the Ipiranga name.

The brand, with its slogan “Passionate ab out cars, likeevery Brazilian” (“Apaixonados por carro, como todobrasileiro”) is well known by Brazilians. This strongequity plays a role in swaying consumer decisions in a

highly commoditized category where convenience isoften the key driver.

Antarctica is a leading Brazilian beer and soft drink.

Launched in 1885 in São Paulo, Antarctica adoptedthe image of two penguins as its logo in 1935. Thislogo continues to symbolize the brand. Antarcticabeer is positioned as “the beer for th e good momentsof life.” The brand’s most popular soft drink is a sodacalled Guaraná Antarctica made from the tropicalguaraná berry.

In 1999, Antarctica combined with Brazil’s otherlarge beer brand, Brahma, to form AmBev, whichsubsequently joined with Belgium’s Interbrew tobecome the world’s largest b eer marketer, nowcalled AB InBev.

Lojas Americanas operates a national chain ofdiscount department stores.

One of Brazil’s largest non-food retailers, LojasAmericanas sells over 60,000 items in categoriesincluding apparel, health and beauty, homefurnishings, and toys. With distribution centers inSão Paulo, Rio de Janeiro, and Recife, the companyhas approximately 950 stores in Brazil as well asan online presence. The brand has a long heritage inBrazil – it was established in 1929 – and is popularwith consumers from all income groups.

Bohemia is a leading premium beer in Brazil.

Established in 1853, Bohemia enjoys the distinctionof being the oldest beer brand in Brazil as well as theleader in the premium segment, thanks to a strategy oflimiting distribution to select locations and introducinglimited edition offers. The Bohemia brand is available infour variations, including wheat and dark beers.

Bohemia was acquired by Brazilian brewer AntarcticaPaulista in 1961. The brand became part of an evenlarger brewer in 1999 when Antarctica Paulista andBrahma brewery merged to created Ambev. Then in2004, Belgium-based InterBrew acquired a majorityinterest in AmBev to form a new global brewing giantknown as InBev. In 2008 Bohemia became part of a stilllarger company known as Anheuser-Busch InBev.

PARENT COMPANY BTG Pactual SAHEADQUARTERS São PauloINDUSTRY BanksYEAR OF FOUNDATION 1981WEBSITE www.btgpactual.comBRAND VALUE US $1,118 million

PARENT COMPANY BRF – Brasil Foods SAHEADQUARTERS ItajaíINDUSTRY Food & DairyYEAR OF FOUNDATION 1944WEBSITE www.sadia.com.brBRAND VALUE US $2,757 million

PARENT COMPANY Cielo SAHEADQUARTERS BarueriINDUSTRY PaymentsYEAR OF FOUNDATION 2009WEBSITE www.cielo.com.brBRAND VALUE US $941 million

PARENT COMPANY Natura Cosméticos SAHEADQUARTERS Itapecerica da SerraINDUSTRY Personal CareYEAR OF FOUNDATION 1969WEBSITE www.natura.com.brBRAND VALUE US $1,700 million

PARENT COMPANY Ultrapar Participações SAHEADQUARTERS São PauloINDUSTRY RetailYEAR OF FOUNDATION 1937WEBSITE www.ipiranga.com.brBRAND VALUE US $1,072 million

PARENT COMPANY Companhia de Bebidas das Américas – AmBevHEADQUARTERS São PauloINDUSTRY BeerYEAR OF FOUNDATION 1885WEBSITE www.antarctica.com.brBRAND VALUE US $1,859 million

PARENT COMPANY Lojas Americanas SAHEADQUARTERS Rio de JaneiroINDUSTRY RetailYEAR OF FOUNDATION 1929WEBSITE www.lojasamericanas.com.brBRAND VALUE US $843 million

PARENT COMPANY Companhia de Bebidas das Américas – AmBevHEADQUARTERS São PauloINDUSTRY BeerYEAR OF FOUNDATION 1853WEBSITE www.bohemia.com.brBRAND VALUE US $1,309 million


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A retail chain specializing in furniture andhome appliances, Casas Bahia was acquired in2009 by Grupo Pão de Açúcar.

Since its establishment in 1952, Casas Bahia hasappealed to low-income customers by offeringin-store credit and a reputation for quality andaffordability. The acquisition by Grupo Pão deAçúcar meant the company was then well placedto benefit from increased consumer spendingby Brazil’s rising middle class. Since 2010 CasasBahia has reached customers throughout Brazil,with more than 500 stores and a web presence.

Petrobras is Latin America’s fourth largest companyin market value and the world’s fourth-largest energycompany in terms of production of oil and gas.

Controlled by the Brazilian government, Petrobrasis publicly traded and operates in 28 countries. Thebrand is highly regarded for its deep-sea explorationand is credited with enabling Brazil to achieveenergy self-sufficiency. The company also operatesoil refineries and a network of gas stations. Thisnational presence contributes to the brand’s staturein Brazil, which is also enhanced by its reputation forsocial responsibility and high-profile sponsorships ofsporting and cultural events. Since 2014 the companyhas suffered problems with falling oil prices, exchangerate depreciation and corporate governance.

Vivo is the largest telecommunications company inBrazil, with over 106 million users: 82.7 million inmobile (in which it holds the largest market share29.3% - June/15), and 23.7 million fixed-line users.

As the result of a j oint venture between Telefónica, theSpanish telecommunications provider, and PortugalTelecom (PT), Vivo invests heavily in advertising todeliver its message, “Best coverage in Brazil.” In 2010,Telefónica bought PT’s shares, and Vivo has sinceadvanced Telefónica’s strategy by building brandsaround the convergence of phone, TV, and Internetcommunication.

Banco do Brasil is the oldest active bank in Braziland one of the oldest financial institutions in theworld. It is also the largest Latin American bank interms of total assets (considering both SOE andprivate banks).

Banco do Brasil played an important role duringthe global financial crisis in 2008-2009, providingcredit at affordable rates to small- and medium-sized companies. Founded in 1808 by Prince RegentJoão VI to fund the debt of a kingdom that includedPortugal, Brazil, and the Portuguese colonies inAfrica, Banco do Brasil is a pu blicly traded companythat is controlled by the Brazilian government.

Pão de Açúcar is a neighborhood supermarket with afocus on the middle class consumer.

Pão de Açúcar is part of the giant retail conglomerateGroup Pão de Açúcar, which began as a pastry shopin 1948 and now includes more than 180 stores. T hebrand is known for quality, innovation, and strongcustomer service. The chain enjoys high levels ofshopper loyalty, and was among the first supermarketsto offer imported products during the 1990s.

One of Brazil’s leading insurance companies, PortoSeguro offers a comprehensive portfolio.

With products spanning vehicle, health, accident, lifeand personal injury insurance, Porto Seguro offerspolicies to individuals, families, companies, andgovernment agencies in Brazil and Uruguay throughdirect and indirect subsidiaries. Since the companyestablished an alliance with Itaú in 2009, Porto Seguroproducts have been available at the bank ’s branches.

The 2009 merger of Perdigão and Sadia into BRF,created the world’s largest poultry company.

Perdigão is one of Brazil’s largest food producers,specializing in frozen and chilled products. Its rangeof about 3,000 items is distributed throughout Braziland to more than 100 countries. The company’s scaleenables it to pursue a low-cost producer strategy.Established in 1934 as Brandalise, Ponzonie & Cie, thecompany changed its name to Perdigão SA in 1958. Itbegan exporting in 1975 and went public in 1980.

The Schin brand is one of the most popular beers inthe country, with a significant presence in São PauloState and the northeast region.

The story began with a small and simple plant in 1939in São Paulo. At that time, the production line waslimited to soft drinks; it only started producing its firstPilsen beer in 1989. Today the brand’s product lineconsists of beer, draft beer, soft drinks and mineralwater. These are distributed throughout Brazil, as wellas several countries of Mercosur, Asia and Europe.

Japanese Kirin Holdings acquired the Schincariol Groupin 2011.

PARENT COMPANY Grupo Pão de AçúcarHEADQUARTERS São PauloINDUSTRY RetailYEAR OF FOUNDATION 1952WEBSITE www.casasbahias.com.brBRAND VALUE US $605 million

PARENT COMPANY Petróleo Brasileiro SAHEADQUARTERS Rio de JaneiroINDUSTRY Oil & GasYEAR OF FOUNDATION 1953WEBSITE www.petrobras.comBRAND VALUE US $821 million

PARENT COMPANY Vivo Participações SAHEADQUARTERS São PauloINDUSTRY Communication ProvidersYEAR OF FOUNDATION 2003WEBSITE www.vivo.com.brBRAND VALUE US $541 million

PARENT COMPANY Banco do Brasil SAHEADQUARTERS BrasíliaINDUSTRY BanksYEAR OF FOUNDATION 1908WEBSITE www.bb.com.brBRAND VALUE US $709 million

PARENT COMPANY Grupo Pão de AçúcarHEADQUARTERS São PauloINDUSTRY RetailYEAR OF FOUNDATION 1948WEBSITE www.paodeacucar.com.brBRAND VALUE US $558 million

PARENT COMPANY Porto Seguro SAHEADQUARTERS São PauloINDUSTRY InsuranceYEAR OF FOUNDATION 1945WEBSITE www.portoseguro.com.brBRAND VALUE US $779 million

PARENT COMPANY BRF – Brasil Foods SAHEADQUARTERS ItajaíINDUSTRY Food & DairyYEAR OF FOUNDATION 1934WEBSITE www.perdigao.com.brBRAND VALUE US $540 million

PARENT COMPANY Brasil Kirin SAHEADQUARTERS São PauloINDUSTRY BeerYEAR OF FOUNDATION 1939WEBSITE www.schin.com.brBRAND VALUE US $607 million


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Anhanguera Educacional is one of Brazil’s largestprivate education companies.

Founded in 1994 by a group of professors, AnhangueraEducacional Participações provides post-secondaryeducation to prepare individuals for productive rolesin Brazil’s fast-developing economy. With more than73 campuses and hundreds of long-distance learningcenters, Anhanguera serves more than 400,000students, many of who come from lower income andrural backgrounds. In 2013 Anhanguera was acquiredby Kroton Educacional, creating the world’s largesteducational group with more than 1.4 million students.

Smiles is engaged in loyalty rewards. It was initiallydeveloped in 1994, as a part of Varig (a Brazilianairline company that went bankrupt in 2010).

Today Smiles is an independent business unit thatadministers, manages and operates exclusively TheSmiles Program’s GOL Linhas Aéreas

The company has partnerships with companies andvarious branches of the market providing benefits,products and services institutions, in addition torewards for air services. The Smiles Program has over10 million members and 150 air and non-air partners.

Seara is Brazil’s largest exporter of pork meat.

The story began in 1956 in the city of Seara City,in Santa Catarina (a state in Brazil), with theinauguration of the first large fridge in the region.The expansion of business and investments inquality processes and products made the Searabrand synonymous with quality in poultry andpigs, both “in natura” and processed.

Seara is controlled by JBS Group, a world leaderin processing and exporting of bovine, ovinemeat and poultry.

Iguatemi is one of the largest shopping malloperators in Brazil.

The company designs, develops and operatesregional centers throughout the country.Formed in 1979, the company initiated itsshopping center activity with the acquisition ofConstrutora Alfredo Matias SA. The transactionincluded an ownership interest in Iguatemi SãoPaulo, which was constructed in 1966 as thefirst shopping center in Brazil. The companyalso developed the first shopping center in theBrazilian countryside – Iguatemi Campinas –and the first shopping center in the southernregion of Brazil – Iguatemi Porto Alegre.

TOTVS is Brazil’s largest provider of integratedinformation technology solutions and the secondlargest in Latin America.

Known for its innovation and high level of customerservice, TOTVS has been growing rapidly anddelivering strong financial results. The company’sorigins date back to a service b ureau called SIGA(Sistemas Integrados de Gerência AutomáticaLtda, formed in 1969. In 2006, in advance of anIPO, the company changed its name from MicrosigaSoftware SA to TOTVS SA. It is currently the leaderin ERP in Brazil, with 50 percent of market share.

Amil is the largest provider of managed health carein Brazil.

From its beginnings in 1972 with the acquisition ofCasa de Saúde São José (a small maternity clinic inthe city of Duque de Caxias), Amil has expanded bothorganically and through strategic acquisitions andnow has about five million members. The companyprovides medical plans for both individuals andbusinesses, and its network of providers includesmore than 3,300 hospitals, 11,000 clinics and 12,000laboratories. UnitedHealth Group, the giant Amercianhealthcare company, bought Amil operations in 2012.

Multiplus provides a network of loyalty programsacross diverse business sectors and currently hasalmost 13.8 million participants.

The sectors include airlines, hotels, rental cars, retail,banking and gas stations. Multiplus members enjoythe flexibility of earning and redeeming points withoutrestriction within the network. TAM Airlines formedthe company in 2009 to expand and strengthen itsown frequent flyer program. In addition to TAM, thelist of partnerships includes Oi (telecommunications),Livraria Cultura (bookstore), Accor (hotels), Peugeot(cars) and Apple (technology). Multiplus also providesservices for managing, interconnecting and operatingcustomer loyalty programs.

Vale is the third-largest mining company in the worldand the largest producer of iron ore and nickel.

The company gains more than 50 percent of itsrevenue from iron ore. Diverse mining operationsincluding copper, bauxite, potash and aluminumgenerate the balance of revenues. One of Brazil’slargest logistics companies with railroads, ports andfleets of ships, Vale also operates in the electric energysector, participating in several consortia and runningnine hydroelectric plants. Originally government-owned, Vale became a private company in 1997.

PARENT COMPANY Kroton EducacionalHEADQUARTERS Belo HorizonteINDUSTRY EducationYEAR OF FOUNDATION 1993WEBSITE www.anhanguera.comBRAND VALUE US $457 million

PARENT COMPANY Smiles SAHEADQUARTERS BarueriINDUSTRY Loyalty ProgramsYEAR OF FOUNDATION 1994WEBSITE www.smiles.com.brBRAND VALUE US $493 million

PARENT COMPANY JBS SAHEADQUARTERS São PauloINDUSTRY Food & DairyYEAR OF FOUNDATION 1956WEBSITE www.seara.com.brBRAND VALUE US $436 million

PARENT COMPANY Iguatemi Empresas de Shopping CentersHEADQUARTERS São PauloINDUSTRY RetailYEAR OF FOUNDATION 1979WEBSITE www.iguatemi.com.brBRAND VALUE US $472 million

PARENT COMPANY TOTVS SAHEADQUARTERS São PauloINDUSTRY TechnologyYEAR OF FOUNDATION 1969WEBSITE www.totvs.comBRAND VALUE US $439 million

PARENT COMPANY UnitedHealth GroupHEADQUARTERS Rio de JaneiroINDUSTRY Health CareYEAR OF FOUNDATION 1972WEBSITE www.amil.com.brBRAND VALUE US $472 million

PARENT COMPANY Multiplus SAHEADQUARTERS São PauloINDUSTRY Loyalty ProgramsYEAR OF FOUNDATION 2010W

brandz 2015 latam top50 report

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