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Customers Centric Global Branding

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Customers Centric Global Branding
Harvard Business School

“Customer Centric Global Branding: Lessons from Latin America”
Rohit Deshpandé, Harvard Business School rdeshpande@hbs.edu

Global Branding Conference Koc University Istanbul 22 June 2010
© 2007 rdeshpande@hbs.edu 2010

Harvard Business School

The “Provenance Problem”
When “made in (emergent country)” doesn’t help:
Made in Brazil Made in Russia Made in India

Made in China

B.R.I.C. or Kenya or Turkey or Vietnam

© 2007 rdeshpande@hbs.edu 2010

Harvard Business School

Concha y Toro
Synopsis
•
• • • • •

Latin America’s largest wine exporter; top 10 worldwide
Profit squeeze due to global oversupply of cheap wine Pirque region near Santiago one of world’s top 25 best wine-growing regions 70% volume sold in inexpensive range (<US$5) Top wine (“Don Melchor”) 93 Wine Spectator rating “Chilean wines” seen as “the Volvo of the wine world – boring but safe”

© 2007 rdeshpande@hbs.edu 2010

Harvard Business School

Chocolates El Rey
Synopsis
•
• • • • •

Founded in 1929, Venezuela’s second-oldest chocolate company
Early in 19th century Venezuela was world’s largest Cacao producer; currently the highest quality producer Venezuelan cacao beans command a 30% premium in world commodity market U.S. retail chocolate market US$ 15 billion sales; of which 64% controlled by 4 marketers; premium chocolate US $1.5 Billion Most consumers associate premium chocolate as coming from Belgium or Switzerland Cacao can only grow in the tropics
© 2007 rdeshpande@hbs.edu 2010

Harvard Business School

Corona Beer
Synopsis
• • • Cerveceria Modelo (1925, Tacuba, Mexico) Market share leader in Mexico since 1956 Formal exporting to US in 1979

© 2007 rdeshpande@hbs.edu 2010

Harvard Business School

Corona Beer
Synopsis
• • • • Cerveceria Modelo (1925, Tacuba, Mexico) Market share leader in Mexico since 1956 Formal exporting to US in 1979 By 1996, 28.9 MM cases of Corona Extra in US (#2 imported beer brand to Heineken) By 1997, 39.3 MM cases to overtake Heineken as
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