Some stories the Latin Advertising and Media World is speaking about this week.
» Diageo betting on Emerging Markets/Latam
In an interview with Dow Jones Newswires, Andy Fennell, chief marketing officer, said Diageo is still spending money on expanding its market share in Western Europe despite the prolonged slowdown in spending there, but said fast-growing emerging markets are now the main focus. Earlier this month, the maker of Johnnie Walker scotch whisky and Smirnoff vodka said it spent just 4% more on marketing in Europe in the first half of its fiscal year as sales declined in Greece, Spain and Ireland. This compared with a 25% increase in Latin America, a 13% rise in Africa and a 10% hike in Asia Pacific. The percentage calculations exclude any acquisitions, disposals or currency movements. Fennell said ever more investment is channelled to developing economies, including Brazil, Russia, India and China. "We have been shifting both financial and human resources toward emerging markets, which means more sales people, more and more senior marketing people," he said. "We want to make sure that we are fully resourced in these emerging markets. You have gross domestic product growing in high single digits — you have got to go after it."
» Mark Lugo Entertainment expands into Costa Rica
Entertainment organization Mark Lugo Creative Entertainment is venturing out into the Latin American market by opening an office in San Jose, Costa Rica, announced Josh Greene, Vice-president of Operations for Latin America. MLCE aims to provide English and Spanish brand marketing via television product placement, music videos, commercials and other multi-media mediums to the many American based organizations now doing business in Latin America.
“We feel this is a good time to do business in Latin America, especially Costa Rica,” said Greene. “It serves as a great home base for our Latin American operations. It’s only a two and half hour flight to Miami,” he added. MLCE believes that it can capitalize on its strong multi-lingual marketing capabilities and innovative marketing strengths in Latin America.
» “Glocal” all over again?
In an interesting article in Adage, John Quelch and Katherine Jocz authors of "All Business Is Local" (Portfolio, 2012) argue that “today's business leaders are so obsessed with global that they risk neglecting the importance of local excellence.” “The authors argue that “Today's business leaders are so obsessed with global that they risk neglecting the importance of local excellence.” In succesful companies such as Mc Donald’s and HSBC the global and local run in tandem. This is even the case for tech firms such as IBM. “Premium luxury brands from Chanel to Mercedes-Benz continue to be bought by the global elite, but those purchases are minimal as a percentage of the total. Even at a global retailer like Carrefour, over 90% of sales are of local brands and produce.”
» English Language Content for Latinos, really the future?
Leslie Berenstein Rojas, argues in an article by Southern California’s Radio website ( Multiamerican) that “English-language content for Latinos is the future”. Berenstein interviews Hispanic marketing expert Giovanni Rodriguez. Indeed, there has been almost an explosion of media, particularly digital media, targeting Latinos in-culture. However, we say, is demand by advertisers really there to support all these new ventures. The jury is definitely still out.