1. © 2007 rdeshpande@hbs.edu “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 © 2010 rdeshpande@hbs.edu

2. © 2007 rdeshpande@hbs.edu The “Provenance Problem” When “made in (emergent country)” doesn’t help: Made in Brazil Made in Russia Made in India Made in China © 2010 rdeshpande@hbs.edu B.R.I.C. or Kenya or Turkey or Vietnam

3. © 2007 rdeshpande@hbs.edu 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” Concha y Toro Synopsis © 2010 rdeshpande@hbs.edu

4. © 2007 rdeshpande@hbs.edu Founded in 1929, Venezuela’s second-oldest chocolate company Early in 19 th 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 Chocolates El Rey Synopsis © 2010 rdeshpande@hbs.edu

5. © 2007 rdeshpande@hbs.edu Cerveceria Modelo (1925, Tacuba, Mexico) Market share leader in Mexico since 1956 Formal exporting to US in 1979 Corona Beer Synopsis © 2010 rdeshpande@hbs.edu

6. © 2007 rdeshpande@hbs.edu 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 #1 imported beer in U.S. By 2010, #1 imported beer brand in almost every global market Corona Beer Synopsis © 2010 rdeshpande@hbs.edu

7. © 2007 rdeshpande@hbs.edu 4 Million people employed in coffee sector (10% of Colombian population) Coffee is largest agribusiness commodity in the world 4 largest roasters control 66% worldwide market share Café de Colombia Synopsis © 2010 rdeshpande@hbs.edu

8. © 2007 rdeshpande@hbs.edu 4 Million people employed in coffee sector (10% of Colombian population) Coffee is largest agribusiness commodity in the world 4 largest roasters control 66% worldwide market share 85% brand logo identification in U.S. 80% brand awareness (“Juan Valdez”) “Country of Origin” as brand (image of Colombia) Café de Colombia Synopsis © 2010 rdeshpande@hbs.edu

9. © 2007 rdeshpande@hbs.edu Positivize the brand and/or Positivize the country © 2010 rdeshpande@hbs.edu

10. © 2007 rdeshpande@hbs.edu© 2010 rdeshpande@hbs.edu Leverage Country Image No Neutral/Weak Yes Strong/Positive Low No High Yes Leverage Brand Image Corona Concha y Toro Café de Colombia Chocolates El Rey

11. © 2007 rdeshpande@hbs.edu 3 Overarching Lessons 1)Do your C.I. H.W. (customer insights) 2)Think outside in, not inside out 3)Empower employee customer centricity © 2010 rdeshpande@hbs.edu

12. © 2007 rdeshpande@hbs.edu Background Readings (cases available at www.hbsp.edu) Café de Colombia 9-502-024 Chocolates El Rey 9-508-052 Concha y Toro 9-509-018 Corona Beer 9-502-023 Rohit Deshpandé, “The Country Effect: Leveraging the Origin of a Brand for Global Markets,” Harvard Business Review Latin America, August 2007, 1-6 (in spanish). John Quelch and Rohit Deshpandé, The Global Market, Jossey-Bass 2004 © 2010 rdeshpande@hbs.edu