News/article
The future of brands in Peru
By ELIZABETH FLORES G & BERTHA RAMOS BARRETO – Gestión, Peru
Why did FutureBrand decide to come to Peru?
The best way of penetrating a market is through existing clients and we have been working with them. We reached a point at which it was already necessary to open up an office in the country. To us, Peru is a very dynamic market. We can see there is a lot going on that will drive the type of business we do.
In a context of changes like the current one, what would be the major challenge faced by brands?
I think, over the past two years, what we saw was a lack of investment because markets suffered and clients were more conservative. After two years, people are more confident, the worst fears of the economic slowdown have already been overcome. Therefore, clients want to be more innovative on what they are going to do with their brands.
How is this situation evidenced?
The market, for any brand, is increasingly competitive. Therefore, the natural cycle of a brand used to be reviewed every five years, while now it is an ongoing process, whether we are talking about a bank, retail brands or a mobile telephone network. They are all analyzing how they can make innovations to have a better presence in the market.
But, how to innovate without losing the essence of the brand?
It is required to be coherent with the essence itself of the brand. Innovation may go from improving or enhancing any service to creating a product. Anything we do must be coherent with the main values.
And not promising too much…
In fact, another challenge is that they all have to fulfill the promise of the brand. There must be coherence between the messages communicated through the advertising, products and services developed, how people behave within the organization and then the physical experience that the client may have, either at the points of sale, during packaging, or through the Internet.
Does this have repercussions on loyalty?
When we are dealing with such a competitive market, what happens here is that consumers quickly go from one brand to another. If brands want to continue having loyalty, they have to please their target audience.
Can the brand make changes?
Yes, absolutely. The brand is an interpretation of the business strategy and how it has been defined.
Can it be interpreted as a concept or feeling?
A brand is actually the reputation, what comes to the mind of a product or service. Sometimes, one thinks that the brand is just the logo, the advertising aspects or just a line of the communication, but it is not just that, it covers everything.
To position a brand, should a general message be given or directed to a specific segment of the market?
Actually, both are needed. If it is an airline, for example, we have a global message but, within that context, what is done is to segment clients based on their travel preferences. We must understand what the needs of each segment are and consider that, within each segment, there is also microsegmentation.
What has been more active over the past few years, building corporate or product brands?
I think product brands. Any company that has to deal with consumers has to invest, be innovative and experience through different channels. With corporate or business brands, it is much easier that they focus on a target group; it is even less competitive, so this permanent investment is not needed. If we take a look globally, we see that those brands targeted to consumers are the biggest investors.
SOCIAL NETWORKS
How does the development of social networks influence brand management?
As the presence of online communities develops in Latin America, social networks will become an important part of the development of the brand, which will be favorable or represent a risk. If they make a mistake, it is a risk; but if it is done right, it will be an opportunity to improve communication.
Has this changed the way of communicating? Are messages more direct now for this form of communication?
Definitively, one of the areas we are working more with and with which clients are more interested in is to work with online communities in order to enter into what we call joint creation.
Does it help to know what the client wants?
We must think that if we are manufacturers of a product and we can gather about 5,000 people online who would be part of the target audience, so it is important to achieve dialogue, almost in real time, of what the clients expect and what we, as a company, are doing with the product or service being offered.
It is a very exciting area that is developing too quickly.
Is the development of brands aiming to that?
It is very interesting, but there is no need to exaggerate because it does not replace the traditional market research techniques. However, it is indeed developing very strongly.
For a better brand management in markets like ours, should we focus more on global models or on a more local reference?
I think we must do both things. Part of the approach will depend on what is more appropriate for the Peruvian culture and that, undoubtedly, is going to generate new techniques, new ideas. Another approach is to see what has been done in other parts of the world and how it can be adapted to the needs of the local market. As brands are developing in this part of the world, you will see innovation teams are going to be created within the companies and the purpose of these departments is to develop new things, see how they can improve existing things.
Finally, how to make brands last over time?
It is required to continuously evolve and make the brand develop, as well as the products or services being offered. The worst danger is the old way of thinking, say to ourselves “well, the work is done.” We have to be 100% in contact with our clients.
