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E-Commerce is skyrocketing in Latin America as the current pandemic  has accelerated digital transformation. This makes the benefits to be reaped from e-commerce investments and e-commerce marketing extremely tantalizing to corporations active in Latin America. To understand why and how the pandemic has catapulted e-commerce in the region, Portada talked to four Latin American brand marketers from Best Buy, Nestlé, Colgate Palmolive, and New York Life who will be participating at our November 19 Portada Live Latin America virtual event.

The current pandemic has accelerated the adoption of e-commerce in Latin America, although in many sectors and countries, the development is still in the early innings. Penetration of e-commerce in Latin America lies at  5% of retail sales, about a quarter of China’s and a third of the U.S.’s. This makes the benefits to be reaped from e-commerce investments and successful e-commerce marketing very attractive to corporations active in Latin America. Actionable insights and intelligence on E-Commerce in Latin America and E-Commerce Marketing and Advertising will play a key role at our upcoming Portada Live Latin America November 19 virtual event. We talked to four Latin American brand marketers of the consumer electronics, CPG and financial sectors who will be participating in this virtual event, to learn how the pandemic has catapulted e-commerce in the region and what’s next.

Latin America E-Commerce: Jose Camargo, Best Buy Mexico
José Camargo Samperio, Ecommerce SubDirector, Best Buy Mexico

To José Camargo Samperio, Ecommerce SubDirector, at Best Buy Mexico, the Covid-19 pandemic has substantially changed consumer behavior. Traffic on Best Buy Mexico’s website increased by 50% as consumption of consoles, musical instruments and even domestic articles multiplied by four. Consumers opted for more entertainment alternatives due to the increase of time they spend at home.

E-Commerce purchases of consoles, musical instruments and even domestic articles multiplied by four.

Latin America E-Commerce Growth Propelled by Increase of Visits in Retail Sites

ComScore reports that during the time period January – May 2020 time spent by consumers on retail sites increased by 38.7% in Argentina and 18.8% in Mexico compared to the same period in 2019. Home Furnishings, Apparel y Flowers/Gifts/Greetings were the retail categories that most grew in Argentina and Brazil. While for Mexico the categories with most growth were in Health Care, Department Stores and Food/Supermarket/Grocery.

According to Best Buy’s Camargo, as many businesses and companies have had to limit the amount of employees they have working in their office, home office and telecommuting became the norm. Thus the availability of smartphones and computers became something indispensable to have to accomplish work objectives. We have seen that servicing clients in everything related to the home office, has brought in sales as a result.” Camargo adds that “customer needs have changed almost totally: health and well-being are the main factors to take into account when it comes to offer a service.”

Latin America E-Commerce: German Villegas, Digital & E-Commerce Manager, Colgate Palmolive Mexico
German Villegas, Digital & E-Commerce Manager, Colgate Palmolive Mexico

German Villegas, Digital & E-Commerce Manager at Colgate Palmolive in Mexico notes that the main lesson of the pandemic has been to not to leave the implementation of platforms and of strategies around high growth (social) media properties until later. Additionally, he adds that the current environment has confirmed that in e-commerce there is no space for rigidity; flexibility and nimbleness are always required.

Villegas commends the rapid reaction of Mexican brick and mortar retailers by adopting and increasing Latin America e-commerce initiatives. “They also have quickly adopted  delivery and pick-up. This has also substantially improved the effectiveness of omnichannel marketing as well as the ability of brand marketers to execute segmented campaigns.”

The Link between Social Media and E-Commerce

According to Best Buy Mexico’s Camargo, the pandemic has also increased the importance of social media platforms. “Websites and user profiles have been connected at a high speed, which has allowed users and brands to develop strong tools to exchange content, and even more importantly, convert to bilateral relationships through which consumers can in a very direct way issue opinions and reviews about their consumer experiences and distribute them to millions of consumers.” “Therefore its crucial for brands to get a clear understanding of where they are in the open internet and on social media.”

Websites and user profiles have been connected at a high speed, which has allowed users and brands to develop strong tools to exchange content, and even more importantly, convert to bilateral relationships.
Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life
Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life

To Gerald Fuchs Torrescano, Content & Digital Marketing Director, Seguros Monterrey/New York Life, what his company does in social is targeted to the primary point in the digital journey of his company’s prospects. “We have granulated and segmented our content in such a way that the lead ends up filling up an online form. The number of completions has increased by 43% since the pandemic started. This is due to a substantial increase in content marketing which is optimized via social listening tools. In other words we ask what do you need, rather than talk about what we offer.” Fuchs Torrescano also stresses that the pandemic has put forward the “need for top notch sites with relevant content and that are adaptable to all target market segments. It’s crucial to obtain high conversion rates.”

 

Carlos Leal, Marketing Director, Ambient Dairy, Nestlé,
Carlos Leal, Marketing Director, Ambient Dairy, Nestlé,

To Carlos Leal, Marketing Director, Ambient Dairy at Nestlé, based in Bogota (Colombia) the best strategy to convert social media users into Latin America e-commerce buyers is to generate “content that is part of the trend.” He adds that “Its not so much about having a link to the purchase site, but about making your offering a routine that is part of the daily live of the consumer. Good content marketing and word of mouth have played a very important role in generating trends. With that base, Influencers then can bring about a behavioral change in the end audiences.”

 

LatAm E-Commerce: Third Party Marketplaces Grow

Latin American third party marketplaces (e.g. Mercado Libre, Amazon), have played an important role in the survival of small and midsized online vendors, says Best Buy’s Camargo says that his company also helped these vendors to provide an excellent customer experience which was reflected in positive consumer reviews.

Nestlé’s Leal stresses the role of deep-linking: “Deep-linking is more important than ever for strategies that send consumers right to the purchase basket, particularly in the case of marketplaces. “They can be a credible reference that generates traffic and it is likely that this traffic ends up with a purchase, generating not only a lead but a sales conversion”, Leal concludes.

Deep-linking is more important than ever for strategies that send consumers right to the purchase basket, particularly in the case of marketplaces.

 

 

 

Puerto Vallarta, Movistar, Burger King , HBO Max…and more brands targeting the Latin American consumer right now.

Movistar

MovistarMovistar, the Latin American telecommunications brand owned by Spain’s Telefónica, has awarded its B2C, B2B and digital advertising assignments in Peru to WPP, further expanding the relationship between the companies.The new assignments will be serviced by WPP’s Team Telefónica.WPP won the business in Peru after a competitive pitch that began in February that was conducted virtually. Media buying was not part of the review.Over the past 18 months, WPP’s remit with Movistar has grown with similar consolidations in Argentina and Colombia. WPP also manages the majority of Movistar’s business in Mexico and Chile.The pitch in Peru was led by Wunderman Thompson and VMLY&R. In Latin America, WPP’s Team Telefonica also includes contributions from sibling agency Superunion and Kantar.WPP works with Telefónica in most of its key markets including Brazil, Germany, Spain and the UK on its Vivo, Movistar and O2 brands.

Estée Lauder

Estee Lauder launched a worldwide, mobile-focused ANRcade site that features four video games themed around the benefits of the brand’s Advanced Night Repair Synchronized Multi-Recovery Complex product, such as “Serum Quest” and “Repair Racer.” The games are being promoted via social and digital, and Estee Lauder’s Jon Roman, Senior Vice President, Global Consumer Marketing & Online, at The Estée Lauder Companies says, “We wanted to find a more fun and innovative way of talking about the product benefits”.

 

Puerto Vallarta

Puerto Vallarta, the premier tourist destination in the Mexican state of Jalisco, is preparing a marketing campaign aimed at getting visitor numbers back to pre-pandemic levels by the end of the year. The campaign will target potential tourists in the United States – the main source country for visitors to the Pacific coast resort city – Canada and Mexico’s largest cities. The Jalisco government will contribute 100 million pesos (US $4.6 million) to the efforts to revive tourism in Vallarta, located on Banderas Bay just south of the Nayarit border. However, the marketing campaign will try to attract visitors to Vallarta in the fall and winter months, he said. The campaign will primarily target potential tourists who live in cities where it takes no more than four flying hours to get to Vallarta given that there is unlikely to be much appetite for long-haul trips while Covid-19 remains a threat. Puerto Vallarta is Jalisco’s, “star destination,” but other tourism hubs in Jalisco – among which are state capital Guadalajara and the town of Tequila – will be especially competitive in the United States market.

 

Portada Live Latin AmericaJOIN US AT PORTADA LIVE LATIN AMERICA, NOV. 19, 2020

To find out about Portada’s new virtual networking solutions at PortadaLive Latin America involving a myriad of brand decision makers, please contact Sales Director David Karp at David@portada-online.com.

 

Influencer Marketing Campaign

Influencer marketing firm IZEA Worldwide, announced that it has secured a mid six-figure contract with a leading entertainment company, a division of a Fortune 100 corporation. The contract represents the largest award IZEA has received from this customer to date. IZEA will be executing a large-scale influencer marketing initiative that will include influencers in the United States, Latin America, Asia, and Europe across a variety of social media channels and content formats.

Burger King

Burger KingDavid São Paulo introduced a spot “that shows you a great time not to visit Burger King”.The agency assembled what it says is real footage of late-night shenanigans that have happened at Burger King stores in Brazil. Burger King has shut down much in-store dining in Brazil during the coronavirus pandemic,and is promoting home delivery.

HBO Max

HBO MaxHBO Max has chosen Latin America as its first market outside the U.S. WarnerMedia, HBO’s parent company, hired Hulu’s former international boss, who will be focused on the launch in the region, which is expected in 2021. But why Latin America? The answer may lie in two factors present across the region: the strength of HBO-branded channels and the company’s own assets to operate locally, Latin American
Business stories, Latin American Business Stories reports.

 

We talked to Yocelin Delgadillo, Media Manager Victoria and Premium Brands at AB InBev during her participation at AdWeek Latam. We discussed new digital strategies for Mexican brands, particularly how marketing for Modelo and other beers has swiatched to digital. In addition, she told us all about partnerships with fairs and festivals, e-commerce, and the company’s plans for streaming entertainment platforms. 

 

E-Commerce and New Digital Strategies

What’s your on and offline media mix?

This year, we’re becoming a digital-first company for the first time ever. This doesn’t mean 100% of our budget goes to digital, but rather that we’re growing in the digital space. For some brands, a digital-first media mix means 60% of their budget goes to digital. This varies throughout our portfolio, but we have many new digital strategies.

For some brands, a digital-first media mix means 60% of their budget goes to digital.
Beer House Caption

Strategies for Stella and Michelob Ultra, brands in our premium portfolio, are very digital and e-commerce-focused. Actually, Stella has a very strong e-commerce perspective. It’s one of the best-selling brands in our e-commerce platform Beer House.

How did you launch and reinforce e-commerce?

The key to enter e-commerce was communication with retailers such as Rappi, Amazon and Mercado Libre. We have entire teams devoted to our relationship with them, designing promotions and creating brand awareness in those platforms. We know we must take awareness as a starting point in order to speed up the funnel. It’s even more efficient in Mercado Libre and Amazon, for instance, because the purchase takes place right there.

Every single piece of digital content of ours contains a call to action. Not all of them are necessarily related to sales, but we redirect users to websites that are mainly devoted to sales. We rarely send any traffic from a branding site to see more content. “If you’ve seen Vicky Chamoy and you’re already interested, you can buy it here.” You click on the CTA and it’ll take you to Beer House or Modelorama to get the product. That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.

That’s one of the pros of having our own e-commerce platform in house. We can estimate, optimize, and actually measure sales.

Sponsorships of Fairs and Festivals

Tell us a bit about brand presence in festivals like Corona Capital and Flow Fest. 

I’m in charge of four brands: Michelob Ultra, Modelo, Stella Artois and Victoria. Therefore, I need to be very aware of the perspective and muse of each brand. Each brand has a very different target. However, we have them well defined, and that helps us understand what works and what doesn’t, as well as to design new digital strategies for them.

Each brand has a very different target. However, we have them well defined.

Yocelin Delgadillo, Director of Integrated Marketing Communications, AB InBev.

On the other hand, experience marketing has become a platform to showcase all the Modelo brands. Before, you wanted to buy beer at the Corona Capital festival and they only had Corona. Now, Corona is the headliner, but Stella has a VIP bar, or BudLight headlines EDM festivals in the North of the country, but Corona is always there. Now we have full portfolio presence instead of just activating one brand. We’ve been there since 2019. All these experiences have also become perfect sampling occasions (for new products). Fairs are very important sampling points for our new Chamoy line. Victoria is the main brand, but we want to launch the Chamoy variety and that’s where consumers can try it.

How do you manage to get your message across at festivals, which involve so many different sponsors and brands? 

We have an advantage: our experiences team is part of our media area. The name of that whole department is “Connections”, and it’s in charge of all connections with consumers ranging from advertising to events. Because we’re in the same area, we speak the same language and are aware of the same strategies. Actually, at the Experiences team, when we work with OCESA and other organizers of art festivals we try to close deals that are not simply about being another sponsor looking for naming. We want to get involved with the experience, we want to sponsor a stage that receives music that resonates with the brand. 

We want to get involved with the experience.

They know we’re more than just a company that wants its logo on the poster. We want to be a part of the experience. Our advantage is our long relationship with them, they know our message by now.

A Slice of the Streaming Cake

AB InBev e-commerce

What is the marketing team focusing on most intensely at the moment?

Everything related to data. We have a new data expert entering the team who’ll put together campaigns based on first-party data. I think personalization at scale is crucial, it’s one of the area’s KPIs, and a great percentage of our digital impressions are segmented according to affinity instead of just ethnographic information. Also, our business intelligence team sends us daily reports. Together with the agency, we’re constantly monitoring asset performance per audience. We prepare a specific briefing per audience for each campaign.

We have a new data expert entering the team who’ll put together campaigns based on first-party data.

Another new thing is that we have someone dedicated to entertainment, looking at how we take part of series and movies. It’s going beyond product placemant. The question is, are we truly participating in entertainment in an active way? We already have an important relationship with Netflix and Amazon Prime, where our products play an important role in the story.

What changed in the consumer to make you enter those platforms?

People decide what they want to watch. It’s no longer a matter of choosing between open broadcast and cable TV. Many people watch content on Youtube, Hulu, Netflix. If we want our message to reach them, we have to migrate to where they are. Streaming platforms don’t want us there, so it’s interesting how we create a relationship with content creators so that they make us a part of their stories.

If we want our message to reach them, we have to migrate to where they are.

Coronavirus Crisis

In the interview with Delgadillo, we didn’t specifically address the branding difficulties that have resulted from the Coronavirus pandemic. However, other media have discussed the confusion and consequences for the Corona brand.

Even though it could seem obvious that the virus isn’t in any way related to beer, AdWeek reports that between January 26 and February 1, Google Trends registered an important increase in searches such as “beer virus” and “corona beer virus”.

So far, the company behind the Corona brand hasn’t said anything about the subject. On the other hand, social media has created a series of memes to make fun of the confusion. AB InBev has not withdrawn from partnerships with important events such as Corona Capital, scheduled to take place in Guadalajara in May and later on in Mexico City.

Daniel Galvan Duque, Marketing Director for Flavored CSD’s at Gepp PepsiCo Mexico tells Portada about their Consumer Engagement Cycle for reaching audiences through meaningful experiences, heartfelt stories and open conversations. You may know everything about your consumers nowadays – what they wear, where they go, what they eat, and even what they need and when they need it. Perhaps your brand has been paying close attention for years. But have your brand’s consumers been paying attention to you? Read on to see how Gepp PepsiCo Engages the Mexican Consumer.

 

Interview conducted by Alejandra Velazquez

Daniel Galvan Duque, Portada, Brand Marketing
Daniel Galvan Duque, Gepp PepsiCo Mexico @gepp

The Power of Storytelling

PepsiCo has been mastering the Consumer Engagement Cycle for decades. Their beverage portfolio is relatable, and their strongest brands have been household names for the fashion, music, and sports industries for decades. This isn’t just about what people like, it’s about how people live. Melding into consumers memories of meaningful events gives brands a backstage pass into people’s experiences. And once they’ve shared an experience, it’s how the story gets told.

El Peluches: Creating Engagement Through Passion

When people don’t immediately skip your ad, you know you’ve hit a home-run. “Truth is, in an era populated with so many brands, communication, and content, the challenge is grabbing people’s attention,” says Daniel Galvan Duque, the man behind PepsiCo’s marketing strategy. In August 2016, Gatorade partnered with Alejandro “El Peluches” Ruiz, a man who runs marathons wearing a vest covered entirely in plush toys. Why? Because his unique passion encourages others and brightens their day. Gatorade was clever enough to notice and share the story to connect with their Mexican audience.

Truth is, in an era populated with so many brands, communication, and content, the challenge is grabbing people’s attention.

The “El Peluches” ad was an unconventional format with a story worth telling. “You have to constantly challenge yourself to produce things that create proximity. The digital world demands you to keep your pre-rolls under five seconds long and all your content under 20, and here was this 2’30’’ narrative with a 70% view rate” reminisces Galvan Duque.

5v5 Montemorelos: Rooting for the Underdogs 

The Gatorade 5v5 soccer tournament in partnership with the UEFA Champions League has gained plenty of momentum in its four-year run (check out our interview with Jill Leccia, Senior Marketing Director – Gatorade Latin America). In 2017, a team from the small rural town of Montemorelos made it to the playoffs but lost in the semifinals. “They asked us if there was a chance they could try again at the second playoffs, and we gave them permission. This time they won, and that gave us a chance to tell a great story. They ended up losing at the finals and didn’t get to travel to Barcelona for the first prize, but we still made the story fit perfectly with the brand’s message: sometimes you win, sometimes you lose, but you never quit trying” says Galvan Duque.

Sometimes you win, sometimes you lose, but you never quit trying.

The outcome was a brief 3’34’’ documentary in which the narrator says “At the end you might win. You might not win. You might have all the odds against you. But one thing is true: in Montemorelos and anywhere else, if you keep sweating, nothing can stop you”. The message matched the brand messaging and reached over seven million views.

Fido Dido Parade: Nostalgia and Influence  

Relatable characters, a touch of nostalgia and partnerships with influencers can keep brand awareness alive. Fido Dido was 7UP’s beloved hand-sketched character in the nineties who was “ageless, thoughtful, chill, and compassionate towards one and all” according to one of its creators Joanna Ferrone. Reviving an ambassador like Fido Dido, highly nostalgic and relatable, does wonders for sparking all kinds of conversations, activations, experiences, and stories – the cogs that keep the Consumer Engagement Cycle alive and spinning.

We wanted each to have a different personality, imprinted by the person creating them. So we found an influencer pool that made sense with the brand.

He recently made a comeback in a series of ads and parades held across Mexico where the brand invited different artists to decorate blank forms of the beloved character. “We wanted each to have a different personality, imprinted by the person creating them. So we found an influencer pool that made sense with the brand. First thing to consider is whether they believe in your message and what you’re doing” reveals Galvan Duque. The right strategy goes a long way for how Gepp PepsiCo engages the Mexican consumer.

Daniel Galvan Duque, Marketing Director for Flavored CSD’s at Gepp, PepsiCo Mexico, will be one of the dozens of brand marketing innovators present at Portada Miami on June 4, 2020. If you are interested in participating in Portada Miami and/or in Portada’s networking and knowledge-sharing platform with brand marketers please contact us here.