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The 10 Top Brands Expanding into Latin America

A number of key brands are targeting Latin America in 2013 and beyond. To help marketers, media agencies and advertisers get a quick sense of what’s next, we developed a list of some of the major players for easy reference.

Aloft
After debuting new properties in Colombia in December 2011 and in Costa Rica this year, Starwood has announced plans to expand its Aloft hotel brand through 4 new properties: Aloft Panamá  in 2013, Aloft Mérida and Aloft Asunción in 2014 and Aloft Montevideo in 2015.

Amazon
In fall 2012 Amazon opened its first e-commerce site in Brazil. Rather than directly challenge large e-commerce players like Mercado Livre by selling all types of products, Amazon’s Brazil operation is focused strictly on the sales of e-books. Given the strong sales of tablets in the country and its booming books market, we could see a spike in Kindle sales in Brazil during 2013. No word yet on whether Amazon will target other countries in Latam.

Apple
In 2013 Apple plans to open its first Latin American store in Río de Janeiro, Brasil. While not exactly a huge incursion into the Latam marketplace, it seems likely that success with this store should lead to more, especially when you consider that Apple’s iOS system is dominant among the mobile devices owned in many Latam countries and the increasing sales of both smartphones and tablets in other Latam markets, including México and Peru.
Also noteworthy is that Apple has opened its iBookstore in Latin America, selling books in U.S. dollars in Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru and Venezuela. So far only 3,000 titles are available in Portuguese, while some 12,000 are available in Spanish.

Colloky
This chain specializes in children’s clothes and recently indicated it plans to open at least 30 stores in Colombia over the next 5 years. It’s currently the market leader in shoes in Chile, where it has 34 stores, and has recently expanded to Guatemala.

Dunkin Donuts
In summer 2012 the company announced plans to open 125 stores in Latin America over the next 10 years via a partnership with Fagase, S.A., Donucol and Nutra. The expansion includes 38 new stores in Chile, 70 in Colombia and 25 in Peru. Currently there are 300 Dunkin Donuts stores in Latin America in countries that include Chile, Colombia, Peru, Panama, Ecuador. Honduras and Guatemala.

Express
The apparel retailer will be opening more than 30 stores over the next 5 years in Peru, Panama, Costa Rica, Colombia, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras and Nicaragua.

Gap
The clothes retailer noted strong initial success with its store in Santiago, Chile, as well as with its store in Panama. As such, the chain has plans to expand to Colombia, Uruguay and Peru, with Brazil as another possibility.

HBO GO
The company launched this service—which allows download of HBO content to mobile devices to subscribers—in Colombia in November 2012, after a successful launch in Brazil earlier in the year. In Colombia the service will only be available via the Internet at first but eventually subscribers will be able to access it via tablets and other mobile devices. Available content includes not only popular American shows like The Sopranos, Rome and Boardwalk Empire, but also ones produced in Latin America, like Capadocia and Prófugos. The company previously announced plans to expand the service to 23 markets in Latin America in the coming years.

Hilton
The hotel chain recently announced that it will be opening its first hotel in Río de Janeiro in June 2014, to be called the Hilton Barra. Currently Hilton has 51 hotels and resorts in Latin America, with plans to develop more in Argentina, Brazil, Colombia, Costa Rica, Mexico, Panama, Peru and Uruguay.

Sephora
The beauty company opened its 6th store in Latin America in Mexico in November 2012, with plans to open 5 more in the country in 2013, including one in Cancun and another in Guadalajara. The brand plans to open 50 new stores in Latin America by 2016, with the majority of them in Brazil—not surprising given the booming beauty market in the country.

Starbucks
In June 2012 the company announced plans to open “several hundred” stores in Brazil over the next 5 years and more than 300 new stores in Argentina and Mexico by 2015.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us.

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Latin America’s Ad Spend Is Set to Skyrocket

According to projections from e-Marketer, between 2012 and 2016, Latin America will be one of the world’s fastest-growing regions when it comes to ad spend.

Total ad spend for Latin America is projected to reach US$34 billion in 2012 and grow to US$51 billion by 2016, 50% growth. In terms of rate of growth, Latin America and Asia-Pacific will grow the fastest in ad spend between 2012 and 2016.

E-marketer also notes that online ad spend will spike in all of the world’s markets, particularly in China, which is set to become the world’s #2 market in online ad spend by 2014. Latin America is set to register $3.62 billion in online ad spend in 2012. By 2016, Latin America’s online ad spend will be $7.68 billion, a 112% increase in just 4 years.

These numbers seem to be in line with those from other sources. For example, eMarketer projects 11.8% growth in ad spend for Latin America during 2012, while recently MagnaGlobal projected 13% growth for this year. In addition, a variety of sources have noted increases in ad spend and online ad spend in Latin America.

To get a sense of the growth trend, here’s a look at ad spend and online spend figures for major markets in Latin America in 2011.

• Argentina: 31.6% growth in overall ad spend in 2011, 117% growth in online ad spend for 2011
• Brazil: 8.5% growth in overall ad spend in 2011, 20% growth in online ad spend in 2011, 39% projected growth in online ad spend for 2012
• Chile: 10.4% increase in overall ad spend in 2011, 30% growth in online ad spend in 2011
• Colombia: 8.8% increase in overall ad spend in 2011, 33% increase in online ad spend
• Mexico: 36% increase in online ad spend in 2011
• Panama: 7.7% increase in overall ad spend in 2011
• Peru: 16% increase in overall ad spend in 2011, 37% increase in online ad spend in 2011
• Uruguay: 7% increase in overall ad spend in 2011, 50% increase in online ad spend in 2011
• Venezuela: 7.8% increase in overall ad spend in 2011

To find out how we can help you reach Latin America via a strategic campaign in any form of media, please contact us.

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Using OOH to Spike Scent Sales in Latam Airports

Strategy and execution made all the difference for a recent OOH campaign by US Media Consulting for a luxury client focused on fragrances. End result? Unit sales shot up by 1.5 to 3 times in different markets.

The Goal
A luxury brand wanted to increase fragrance sales in airport duty-free stores in key markets.

A Strategic Solution
After thorough research of layouts for 17 international airports—including 8 in Latin America—US Media Consulting crafted a specific OOH media solution for the client. This involved strategically placed branding ads in the form of panels, backlights, wall wraps and dioramas. US Media Consulting used its local production partners to print and install the panels in arrival and departure areas as well as near duty-free stores and even on their walls. Target markets included:

  • Argentina (Buenos Aires airport)
  • Brazil (Rio and Sao Paulo airports)
  • Chile (Santiago airport)
  • Mexico (Mexico City and Cancun airports)
  • Panama (Panama City airport)
  • Uruguay (Punta Del Este airport)

The campaign also covered cities with major traffic to Latam, including Miami, New York, Dallas, Los Angeles, Chicago, San Francisco, Toronto and Vancouver.

Rapid, Powerful Results
In just one month, the duty-free stores in these airports reported sales increases ranging from 200%  to well over 300%, with several of them selling out of the promoted fragrance brands. “The campaign speaks to the success of OOH advertising. But what’s truly important is the strategy behind it. In this case, we were able to advise the client where to position the ads for maximum impact, and that generated the traffic that spiked sales,” says Fabiano Bernardo, OOH Sales Manager for US Media Consulting.

Ultimate Impact
Possibly inspired by this successful OOH campaign, other luxury/premium clients are now working with US Media on strategic OOH solutions both in and outside of major airports.

To learn more about how we can help you with OOH campaigns, contact us at info@usmediaconsulting.com.

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Celia Cruz and the Art of Rebranding

In 1987, I was at the Jersey shore with friends and obsessively listening to the album Cuba y Puerto Rico son by Celia Cruz and Tito Puente. My friend Mario asked me, “So she’s like the Latin Madonna?” I had no response—I couldn’t think of two more different people than Celia and Madonna. But years later, I see something in common with them besides being singers. Madonna has consistently been hailed as a marketing master. Her ability to reinvent herself and absorb new musical trends keep her relevant in a Lady Gaga world.

Celia Cruz has never been called a marketing master—but she was. In her own way, she managed to rebrand herself effectively by following certain core principles. Before we get into that, let’s look at her brand’s liftoff.

Branding Brief
Celia built her brand in Cuba by scoring hits with the Sonora Matancera in the 1950s. She was a national star with some international recognition, mostly in Mexico and the Dominican Republic.
Celia left Cuba in 1960 and recorded with and without the Sonora in Mexico. Later in the decade she teamed up with Tito Puente. It seemed like the right move. Her compatriot La Lupe had teamed with Tito Puente on the same record label and notched a series of hits. However, despite being good, the albums—including my favorite, Cuba y Puerto Rico son—sold poorly. By the early 1970s, she was in danger of becoming a nostalgia act.

Then Celia rebranded. Here’s what she did.

Brand alignment. First, she appeared in a Latin opera called Hommy, produced by star bandleader Larry Harlow. This got her in front of the young salseros who were fans of Harlow and the other stars featured in the opera. She followed this up by signing with Fania Records, the hottest salsa label around. Celia was paired with megaproducer Johnny Pacheco, who had his own major brand equity with salseros, and produced the hit 1974 album Celia y Johnny. That same year, she traveled to Zaire to perform with the Fania All Stars in a concert before the Muhammad Ali-George Foreman championship bout.  Suddenly her brand was tied with that of Muhammad Ali’s, however indirectly, and a whole new audience of Africans became fans of the newly-crowned Queen of Salsa.

Customer relationship management. Celia’s fan base started in Cuba and followed her into exile. Celia never lost sight of her brand identity as a Cuban singer, so her albums always featured songs referencing Cuba or covers of famous songs by Cuban composers. Examples include “Canto a La Habana,” “Si acaso no regreso,” “Ochun con Changó,” “Vieja luna” and many others. This retained her original customer base—good, smart CRM.

Expansion. Celia made a point of selecting songs like “Toro mata”, a Peruvian folk song, the Brazilian song “Usted abusó” and other tunes from Latin countries beyond Cuba. These picks gave her an entry point with new markets who started with the song they recognized and then later bought into the rest of her brand. Heavy touring in these countries further expanded her brand into Venezuela, Colombia, Peru and Panama.

Strategic refreshes. Celia worked with a variety of producers to keep her sound fresh but wisely avoided trends like salsa romántica that were a poor fit for her brand. She also sang duos with stars from other countries, like Vicente Fernandez and Caetano Veloso, and mentored young salsa diva India. This ensured relevance with younger audiences—the  result was a steady stream of hits well into her 70s.

Consistent brand identity. Fans could count on Celia for fresh, fun songs, not odd artsy experiments. She knew her base of working class Hispanics and Latin Americans wanted escape through dancing, and she delivered: “La vida es un carnival” is a good late-career example.

She also kept her appeal to women strong by rebuking machismo with songs like “Que le den candela.” Beyond music, her brand identifiers included wild stage outfits, wigs and her catchphrase, ¡Azúcar!

Strict quality control. Celia didn’t abuse alcohol or drugs. She didn’t miss shows, either. As such, her target market (the audiences) and her distributors (concert promoters) valued her consistent quality. In contrast, her rivals and contemporaries did abuse drugs and miss shows, destroying not only their brands but themselves.

Tireless crossmedia promotion. Celia toured constantly, marketing herself on the front lines through concerts all over the world. She supplemented this by appearing in movies and soap operas. Celia was friendly and open with press of all kinds—an anti-diva who gave funny, charming interviews. Because of this, aside from some minor missteps in the 1990s, she consistently garnered great press. Her ability to adapt suggests that if she were still alive, there’s no doubt that she’d have a formidable Facebook page and thousands of Twitter followers.

The Takeaway
While none of this suggests Celia was cracking open marketing books or taking classes at Wharton between tours, it does demonstrate a profound marketing intuition on her part. Celia was far from the only music star to leave Cuba after 1959. But none of them had anywhere near her success.

What made the difference? It wasn’t mere talent or hard work: she was brilliant in the 1960s and worked hard with little success to show for it.

Ultimately, her astute rebranding maximized the impact of her talent and hard work, transforming Celia from a regional star to a worldwide Latin music icon.

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