Havas’ Meaningful Brands 2015 study reveals that brands do matter in LatAm, as the disconnection to brands is lower than globally, which means the connection with brands is healthier than in other regions.
Latin America outperforms global results by 7 percentage points in “brand attachment”. In LatAm 47% of the people would care if the brands analysed disappeared, while worldwide it is just 40%. It is more equivalent to Apac, the second most attached region in the world.That’s because in LatAm people still “believe” in brands: the level of Trust is high, as 69% of brands are trusted (global, 50%), with 38% of brands notably improving our Quality of Life (28% global.)
In LatAm people still “believe” in brands: the level of Trust is high, as 69% of brands are trusted while Globally the level is 50%.
The widening polarization brings different challenges that require different approaches. Understanding the key drivers by category and market, a must for brands to reconnect:
Inside LatAm, Colombians are the most attached people: 55% of the people would care if the brands analysed disappeared, while in Brazil that ratio goes down to 44% and in Peru it’s 50%.Food, Beverage, Consumer Goods and Automotive demonstrate to be more meaningful in Argentina than globally, while Technology (influenced basically by telcos brands) and Retail are less meaningful in that country.In Colombia, 41/62 of brands researched have a quality of life value of 50% or higher, which means that 50% of the population consider they are contributing to improve their quality of life.The level of interest in brands in Peru is higher than the global average:54% declare that they regularly seek out information about the behaviour of companies and brands, while worldwide it’s 37%.
Inside LatAm, Colombians are the most attached people: 55% of the people would care if the brands analysed disappeared.
New and actionable Insights on Brand Leadership in Latin America are going to be discussed by cutting-edge Brand Marketers at Portada’s Latin American Advertising and Media Summit in Miami on June 3 and 4. Thought leaders include Jon Suarez Davis, VP, Global Media & Digital Strategy, Kellogg Company, Ruben Leo, Marketing/Digital Marketing Director / Mexico & International, Genomma Lab, Denisse Guerra, Regional Marketing Director, Latin America, The Estée Lauder Companies, Manuel Medina Riveroll, Marketing Director Mexico, Bayer and Pedro Tabera, President/CEO, Mercedes-Benz Mexico.
Most of the brands are well established companies with a long history in Mexico. The rest are tech oriented companies (meaningful because they make life easier, and people feel proud of using them). Home care and Dairy are the sub-sectors with the highest average attachment, Lala and Cloralex are the leading companies.These are the key findings:
- Overall happiness in Mexico (7,81/10) is higher than the Global average: 6,85
- And people also see relationships with brands in a more positive way: 66% believe brands can play a role in improving their quality of life and the wellbeing of their family (52% ww-worldwide)
- People in Mexico also like to be informed: 52% regularly seek out information about the behaviour of companies (37% ww)
- 59% consider the impact of a brand on people’s wellbeing when they are deciding whether or not to buy it (43% ww)
The Brazilian economy has been struggling to grow, and this is reflected in the main drivers of Attachment and perceived Quality of Life.Interesting to see that the Top 5 Meaningful Sectors are those that are taken as a conquest or aspirational to Brazilians since the Economic Boom in 2008 (exclusion of Auto) and taken as conquests on Brazilian daily life.The same happens when we look to the brands – which have an avg. better performance on Quality of Life than Attachment – enhancing Brazilian daily life in many aspects.Key findings:
- Nestle and Danone bring added value products to Brazilians tables, being leaders inspiring confidence.
- Google is unquestionable making people’s lives easier and thus providing peace of mind.
- Natura and O Boticario, the only two Brazilian brands and completely linked to Personal dimension, extremely important to Brazilian.
- Visa and Mastercard: making life easier by being enablers of recent conquests.
- And the tech brands that display status, bringing satisfaction and happiness.
- 72% of Brazilians declare that, when they have a bad experience with a product/service, they often share it with a number of people.
- But, on the other hand, Brazil is a high interesting market for brands that want to lead and be innovative, as there is an open-minded attitude towards state-of-the-art products: 65% would pay more for high-quality items, 42% could not live without being connected 24/7 and 71% often follow the latest news
The three most important things for Argentinians to be happy and satisfied with their quality of life are: to achieve a better standard of living, take notice of and enjoy the small things in life and have people in their life who really care about them. There are no significance differences between sex or ages.In terms of expectations:
- 77% of Argentinians believe that companies and brands should play a role in improving their quality of life and wellbeing and 70% consider that companies and brands should be actively involved in solving social and environmental problems. These percentages are slightly lower than those recorded in the previous wave.
- 56% believe that brands can play a role in improving their quality of life and the wellbeing of their family.
- While Argentinians will recognize a brand’s role in the quality of life improvement, 66% believe that the change will come from people.
- Only 27% consider that companies and brands communicate honestly about their commitments and promises.
- Finally, 38% of Argentinians generally trust brands.
In Argentina meaningfulness varies across categories: Food and Consumer Goods are best valued. In contrast, Telcos, Finance & Insurance and Department Stores have the lower levels of meaningfulness. They have the greatest challenges in the future.
In terms of brands, comparing Argentina’s top ten brands with the Global top ten brands:Samsung, the first brand in terms of Global Meaningful Brand Index, has the second position in the Argentina Meaningful Brand Index. Consumer Electronics.La Serenisima continues to lead the ranking in Argentina.Dove, Gillette, Knorr and Philips have better position in Argentina than Global top ten.
In this country, expectations are really high, but those are not totally covered:
- 87% believe brands should play a role in improving our quality of life and wellbeing.
- And 72% think brands can actually play that role.
- The risk is that just 47% feel brands are working hard at it (global average is 39%)
- 65% declare they consider the impact of a brand on people’s wellbeing or the environment when they are deciding whether or not to buy it (globally this is just 43%)And even if this trust is not enough to be meaningful (as we saw just 47% of Colombians feel brands are working hard), it is a pre-requisite for brands to deepen connections and be allowed to play a meaningful role in people’s lives
In Colombia, meaningfulness varies across categories: Healthcare and Food are the most meaningful categories. Finance & Insurance scored lower on MBI. Healthcare is one of the worldwide “Star” categories.FMCG’s traditional brands remain amongst the top as they largely contribute to improve our daily lives.
- Food is one of the most meaningful categories, attaining strong Attachment and Trust. This brands are especially meaningful for making our daily lives better prevailing the rational benefits of savings, convenience, health or better nutritional habits.
- Technology is becoming increasingly meaningful worldwide. And in Colombia 1/5 declare they could not live without being connected 24/7; and 1/3 say they are always the first to try new products
- The highest level of Advocacy is for Sony (92% of the people would recommend the brand to their acquaintances). This brand ranks 5th globally, enjoying the high meaningfulness and trust that the whole category shows.
- In Peru, 50% of people would not care if the brands analyzed disappeared.
- 52% of Peruvians think those brands notably improve their quality of life.
In Peru the most significant brands belong to the food and beverage industry (Gloria, Inca Kola and Nestlé), while globally the brands that stand at the top are those related to the tech industry (Google, Microsoft, Samsung and HP among others).
- The level of interest in brands in Peru is higher than the global average:54% declare that they regularly seek out information about the behaviour of companies and brands, while worldwide it’s 37%.
- 61% declare they consider the impact of a brand on people’s wellbeing when they are deciding whether or not to buy it (43% ww).
- 62% declare they often buy from companies with a reputation for having a purpose other than just for profit (49% ww)
There is an opportunity for brands to offer a more holistic & meaningful approach, increasingly driven by personal wellbeing, delivering what really matters to people.So the widening polarization brings different challenges that require different approaches. More than ever, a “global approach” is key for global brands to adapt and respond to the context and expectations of each local market.