Icep Branding the Portuguese Trade Offer  Interview findings and Work-Session April 24, 2003
Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </l...
Objective <ul><li>To share findings of research and concept development </li></ul>
<ul><li>“ Its a process of bottom-up and not top-down.  To show the world that  a country is prosperous, you have  to prov...
Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </l...
Interview findings: what we know Interviews: 49 Total <ul><li>2 Glass / ceramics </li></ul><ul><li>2 Wood and furniture </...
ICEP, other Govt. Agencies Key Issues <ul><ul><li>Awareness </li></ul></ul><ul><ul><li>International expansion </li></ul><...
ICEP Awareness <ul><li>The brand Portugal already exists – need to shift the perception </li></ul><ul><li>There is a need ...
ICEP International Expansion <ul><li>Portugal, as a whole, is not ready to compete internationally </li></ul><ul><li>Yet, ...
ICEP Challenges & opportunities <ul><ul><li>“ Portugal needs, at least, 2 mega-brands to help the others” </li></ul></ul><...
<ul><li>“ Nobody buys Zara because of their brand... It’s because they are everywhere and the have  a complete offer” </li...
ICEP Brand and Communication: Needs <ul><ul><li>Companies need to develop outward looking brands –that is, they should con...
ICEP Brand and Communication <ul><li>Portugal’s strongest brands </li></ul><ul><ul><li>Port Wine </li></ul></ul><ul><ul><l...
ICEP International brands that are admired <ul><ul><li>Distribution excellence </li></ul></ul><ul><ul><li>Success in commu...
ICEP Associations: General opinion <ul><ul><li>They operate inefficiently </li></ul></ul><ul><ul><li>They lack coordinatio...
ICEP In summary <ul><ul><li>Unanimously felt need to change the perception of Portuguese trade </li></ul></ul><ul><ul><li>...
<ul><li>“ Companies should start to develop brands with an Iberian philosophy” </li></ul><ul><li>-ICEP Manager </li></ul>
<ul><li>“ We need discipline in promoting brands consistently –need to focus” </li></ul><ul><li>-MNE </li></ul>
Companies Key Issues <ul><ul><li>International expansion </li></ul></ul><ul><ul><li>Brand and communication </li></ul></ul...
Companies International expansion <ul><ul><li>All the companies interviewed have expansion plans, most already export over...
Companies Brand and communication <ul><ul><li>Most of the companies interviewed were brand oriented </li></ul></ul><ul><ul...
Companies Brand and communication <ul><li>I can charge a 40% premium on my product because of my brand. </li></ul><ul><li>...
Companies Brand and communication <ul><li>Government initiatives have lost credibility when branding is concerned </li></u...
Companies Trade offer brand <ul><ul><li>Most of the companies interviewed do not consider a trade offer brand good for the...
Companies Main concerns <ul><ul><li>Possible clash between Portuguese trade offer brand, and companies' own positionings <...
Companies Perception of associations <ul><li>Companies have very fragmented opinions regarding associations: </li></ul><ul...
Companies In summary <ul><ul><li>Companies have a very clear idea as to the benefits of branding </li></ul></ul><ul><ul><u...
<ul><li>“ To be successful, a Trade Offer Brand needs to adapt to the diverse needs of the many companies and industries” ...
Trade associations  Challenges in International Expansion are... <ul><li>Companies need larger scale in order to compete i...
Trade associations What effect does a brand have on the industries =  Adds value =  Takes away value =  Indifferent
Trade associations What effect does a brand have on the industries =  Adds value =  Takes away value =  Indifferent
Trade associations In summary
<ul><li>“ If a company doesn’t have the funds to invest, it should collaborate with other companies in the same sector” </...
<ul><li>“ If I challenge the business man next door to make a partnership, he will say no.  However, if it is a government...
Opinion Leaders Main points <ul><ul><li>Perception of Portugal abroad is inconsistent with reality </li></ul></ul><ul><ul>...
Interview conclusions <ul><ul><li>The multitude of Portuguese industry makes for multiple interests </li></ul></ul><ul><ul...
<ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul>...
13 countries involved <ul><li>America </li></ul><ul><li>EE.UU. </li></ul><ul><li>Brazil </li></ul><ul><li>Argentina </li><...
Survey questions <ul><li>Have you ever done business with a Portuguese company? </li></ul><ul><ul><li>If so, how would you...
Issues affecting Portuguese trade offer Awareness <ul><ul><li>When asked to name Portuguese brands: </li></ul></ul><ul><ul...
Perception doesn’t match reality Tourism 20% Port Wine 18% Fishing 17% Wine 13% Food & Beverage 8% Bottle  Cork 5% Olive o...
Most recognized attributes from non-Portuguese have nothing to do with its industrial prowess <ul><li>Warmth and hospitali...
<ul><li>“ We need to shift the perception people have of Portugal” </li></ul><ul><li>-Mundo Textil, President </li></ul>
Perceptions of Portuguese goods are limited to non-industrial goods <ul><ul><li>There is little awareness of Portugal’s ma...
Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </l...
Does “Portugal” add or take away value Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent...
<ul><li>The benefit of indifference is that consumers react to the discovery that a product is Portuguese with surprise an...
Portugal is not considered an industrial economy, yet industry is what drives the majority of exports Clothing Information...
What is lacking is adequate communication Clothing Information Technology Automobile Components Footwear Agro-Food and Bev...
Why is awareness of Portuguese industry and quality low? <ul><ul><li>Companies hide Portuguese identity abroad </li></ul><...
Portugal’s Main competitive advantages These are attributes associated with highly developed economies <ul><ul><li>Politic...
General conclusions <ul><li>Companies want: </li></ul><ul><ul><li>Monetary incentives to expand their brands </li></ul></u...
General conclusions, cont <ul><ul><li>There is no one clear cut path for the Portuguese Trade offer </li></ul></ul><ul><ul...
Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </l...
A Portuguese Trade Offer brand is one piece of the overall Portuguese Trade Offer Brand Strategy <ul><ul><li>The scope and...
<ul><li>How do we create a strategy that can empower the overall trade offer of Portugal ? </li></ul>
There is an interactive role between commercial brands and industry Trade Offer Brand Value Circle Brands Industry
Where awareness is shared and passed down Trade Offer Brand Value Circle Brands Industry Brand potential International bra...
Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Develo...
Golden Brands Brands that strengthen the image of the Portuguese trade offer <ul><li>Description </li></ul><ul><ul><li>Hel...
Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness B...
Established Brands Portuguese brands that strengthen their industry and generate awareness <ul><li>Description </li></ul><...
Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness B...
Developing Brands Companies with the ability, today, to have a brand <ul><li>Description </li></ul><ul><ul><li>White Label...
Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness B...
White Label Companies that do not have, nor require, a consumer brand today <ul><li>Description </li></ul><ul><ul><li>Fulf...
Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness B...
<ul><li>“ It would be much better for my brand if there were 15 other brands like mine” </li></ul><ul><li>  -Fly London </...
Trickle-down Branding The roles of the different brand categories Developing Brands White Label Golden Brands Build consum...
Trickle-down Branding Example of the relationship Developing Brands White Label Golden Brands Established  Brands Build co...
This relationship increases awareness and changes the perceptions of the Portuguese trade offer Branded Companies PORTUGUE...
<ul><li>How can we accomplish this for the Portuguese trade offer? </li></ul>
Imperatives for the Portuguese trade offer <ul><ul><li>Change perceptions  </li></ul></ul><ul><ul><li>Unite companies </li...
<ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul>...
<ul><li>“ We need a sector (Fileira) brand, that clearly associates us to Portugal.” </li></ul><ul><li>Cefamol –Moulds </l...
Trade   symbol   concept
<ul><li>“ Companies and businessmen should cooperate more to build alliances and partnerships to better export Portuguese ...
<ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul>...
<ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul>...
Next steps <ul><ul><li>Feedback on concepts </li></ul></ul><ul><ul><li>Continue development of concepts </li></ul></ul>
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Icep Branding The Portuguese Trade Offer

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Icep Branding The Portuguese Trade Offer

  1. 1. Icep Branding the Portuguese Trade Offer Interview findings and Work-Session April 24, 2003
  2. 2. Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  3. 3. Objective <ul><li>To share findings of research and concept development </li></ul>
  4. 4. <ul><li>“ Its a process of bottom-up and not top-down. To show the world that a country is prosperous, you have to prove you are good and that is through the success of its brands, not the other way around.” </li></ul><ul><li>-ICEP Board Member </li></ul>
  5. 5. Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions and implications </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  6. 6. Interview findings: what we know Interviews: 49 Total <ul><li>2 Glass / ceramics </li></ul><ul><li>2 Wood and furniture </li></ul><ul><li>2 Wine </li></ul><ul><li>1 Metallurgical </li></ul><ul><li>1 Auto Sector </li></ul><ul><li>1 Textile </li></ul><ul><li>1 Home Textile </li></ul><ul><li>1 Leather Goods </li></ul><ul><li>1 Olive Oil </li></ul><ul><li>1 Cork </li></ul><ul><li>1 IT </li></ul><ul><li>1 Construction </li></ul><ul><li>1 Engineering Consulting </li></ul><ul><li>1 Food & Beverages </li></ul><ul><li>1 Moulds </li></ul><ul><li>1 Stones </li></ul><ul><li>1 Paper </li></ul><ul><li>3 Clothing </li></ul><ul><li>3 Glass / ceramics </li></ul><ul><li>2 Home Textiles </li></ul><ul><li>2 Footwear </li></ul><ul><li>2 Paper </li></ul><ul><li>1 Wine </li></ul><ul><li>1 Juice </li></ul><ul><li>1 Cork –no brand </li></ul><ul><li>4 ICEP board </li></ul><ul><li>3 ICEP personnel </li></ul><ul><li>1 Brand Advisor to the Prime Minister </li></ul><ul><li>1 Advisor to the Economic Minister </li></ul><ul><li>1 Foreign ministry </li></ul><ul><li>1 Patents and Brands </li></ul>ICEP, other Govt. Agencies 11 Opinion Leaders 3 Companies 15 Associations 20 <ul><li>Boston Consulting Group </li></ul><ul><li>Financial Times </li></ul><ul><li>Siemens Vice-President </li></ul>
  7. 7. ICEP, other Govt. Agencies Key Issues <ul><ul><li>Awareness </li></ul></ul><ul><ul><li>International expansion </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Challenges & opportunities </li></ul></ul><ul><ul><li>Brand and communication </li></ul></ul><ul><ul><li>Associations </li></ul></ul>
  8. 8. ICEP Awareness <ul><li>The brand Portugal already exists – need to shift the perception </li></ul><ul><li>There is a need for industries to have greater awareness </li></ul><ul><ul><li>The kind that Paper & Pulp, Cork and Olive Oil already have </li></ul></ul><ul><ul><li>The problem is that Portuguese managers lack the capacity to take on this task –they are not focused enough on expansion </li></ul></ul>
  9. 9. ICEP International Expansion <ul><li>Portugal, as a whole, is not ready to compete internationally </li></ul><ul><li>Yet, certain industries are: </li></ul><ul><ul><li>Automobile components, Telecom, Financial services, Tourism, Glass & Ceramics, Textiles & Footwear, Home Textile, Port, Technology </li></ul></ul><ul><ul><li>The industry with greatest growth potential is the Service Industry </li></ul></ul><ul><li>Challenges for internationalization </li></ul><ul><ul><li>Solidify domestically </li></ul></ul><ul><ul><li>Improve internal management </li></ul></ul><ul><ul><li>Develop design and communication culture </li></ul></ul>
  10. 10. ICEP Challenges & opportunities <ul><ul><li>“ Portugal needs, at least, 2 mega-brands to help the others” </li></ul></ul><ul><ul><ul><li>Need to invest money in Brands and Branding </li></ul></ul></ul><ul><ul><ul><li>Shift perceptions about Portuguese reality </li></ul></ul></ul><ul><ul><ul><li>Create a Portuguese Trade Offer Brand </li></ul></ul></ul><ul><ul><li>What is key on the business side are proper distribution channels </li></ul></ul><ul><ul><ul><li>Helps companies understand their markets and thus their consumer needs –it communicates their brands broadly </li></ul></ul></ul><ul><ul><li>The entrance of new EU countries: </li></ul></ul><ul><ul><ul><li>Potential new market place where Portugal is a reference </li></ul></ul></ul><ul><ul><ul><li>Not in last place anymore </li></ul></ul></ul><ul><ul><ul><li>Increased competition –they have better labour/price </li></ul></ul></ul>
  11. 11. <ul><li>“ Nobody buys Zara because of their brand... It’s because they are everywhere and the have a complete offer” </li></ul><ul><li>-ICEP Board Member </li></ul>
  12. 12. ICEP Brand and Communication: Needs <ul><ul><li>Companies need to develop outward looking brands –that is, they should consider other markets </li></ul></ul><ul><ul><li>Use leading brands to promote Portugal –“when there is a leader you see results” </li></ul></ul><ul><ul><ul><li>Other companies admire them and follow their lead </li></ul></ul></ul><ul><ul><li>The Portuguese trade offer brand shouldn’t clash with company strategies </li></ul></ul>
  13. 13. ICEP Brand and Communication <ul><li>Portugal’s strongest brands </li></ul><ul><ul><li>Port Wine </li></ul></ul><ul><ul><li>Portugal (specific industries) </li></ul></ul><ul><ul><li>Mateus Rosé </li></ul></ul><ul><ul><li>Figo </li></ul></ul><ul><ul><li>TAP </li></ul></ul><ul><ul><li>Portugal Telecom </li></ul></ul><ul><ul><li>Caixa Geral de Depósitos </li></ul></ul><ul><li>Industries with brands ready to compete internationally </li></ul><ul><ul><li>Wine brands </li></ul></ul><ul><ul><li>Footwear consumer brands </li></ul></ul><ul><ul><li>Glass </li></ul></ul><ul><ul><li>Olive oil </li></ul></ul><ul><ul><li>Clothing –desperately need brands </li></ul></ul>
  14. 14. ICEP International brands that are admired <ul><ul><li>Distribution excellence </li></ul></ul><ul><ul><li>Success in communicating their brand </li></ul></ul><ul><ul><li>“ It would relaunch the whole economy” </li></ul></ul><ul><ul><li>“ Quality and perfection” </li></ul></ul><ul><ul><li>“ Completely flexible brand, it gives me power to promote everything” </li></ul></ul><ul><ul><li>For the way it has promoted itself over the last 20 years </li></ul></ul>
  15. 15. ICEP Associations: General opinion <ul><ul><li>They operate inefficiently </li></ul></ul><ul><ul><li>They lack coordination to organize the companies </li></ul></ul><ul><ul><li>Do not adequately provide for cooperation among companies </li></ul></ul><ul><ul><li>They compete with one another rather and collaborate </li></ul></ul><ul><li>Most associations should review (improve) the way they operate </li></ul>
  16. 16. ICEP In summary <ul><ul><li>Unanimously felt need to change the perception of Portuguese trade </li></ul></ul><ul><ul><li>Key to success of the Portuguese trade offer is proper management </li></ul></ul><ul><ul><li>Strong distribution channels communicate closer with consumers </li></ul></ul><ul><ul><li>Exploiting the recognition of leading brands in the exterior can help all of Portuguese industry </li></ul></ul><ul><ul><li>Portuguese companies need to develop an international strategy </li></ul></ul><ul><ul><ul><li>Restructure their organizations </li></ul></ul></ul><ul><ul><ul><li>Focus on branding and design </li></ul></ul></ul><ul><ul><li>Portugal is a country of generalists –need to find a specialization </li></ul></ul>
  17. 17. <ul><li>“ Companies should start to develop brands with an Iberian philosophy” </li></ul><ul><li>-ICEP Manager </li></ul>
  18. 18. <ul><li>“ We need discipline in promoting brands consistently –need to focus” </li></ul><ul><li>-MNE </li></ul>
  19. 19. Companies Key Issues <ul><ul><li>International expansion </li></ul></ul><ul><ul><li>Brand and communication </li></ul></ul><ul><ul><li>Opinions on trade offer brand </li></ul></ul><ul><ul><li>Primary concerns </li></ul></ul><ul><ul><li>Opinions on Associations </li></ul></ul>
  20. 20. Companies International expansion <ul><ul><li>All the companies interviewed have expansion plans, most already export over 50% of what they produce </li></ul></ul><ul><ul><li>The country has left the “Industrial” phase and has entered the “Commercial” phase </li></ul></ul><ul><ul><ul><li>This is where branding comes into play </li></ul></ul></ul><ul><ul><ul><li>Companies need to promote their brand(s) </li></ul></ul></ul><ul><ul><li>When asked which companies they considered as reference, most answered that they are the leader in their sector </li></ul></ul><ul><ul><li>This shows confidence among Portuguese companies with regard to their ability to expand </li></ul></ul>
  21. 21. Companies Brand and communication <ul><ul><li>Most of the companies interviewed were brand oriented </li></ul></ul><ul><ul><ul><li>Originally wholesaling, brandless companies who developed a consumer brand later </li></ul></ul></ul><ul><ul><ul><li>They communicate the same brand both for B2B and B2C </li></ul></ul></ul><ul><ul><li>Companies are increasingly investing in communication and promotion </li></ul></ul><ul><ul><ul><li>Investing, on average, 3-5% on marketing and communication </li></ul></ul></ul><ul><ul><ul><li>Most have established marketing departments </li></ul></ul></ul><ul><ul><ul><li>Marketing departments report directly to the board of directors </li></ul></ul></ul>
  22. 22. Companies Brand and communication <ul><li>I can charge a 40% premium on my product because of my brand. </li></ul><ul><li>No matter what the quantity sold is, my price is the same. There is no negotiating on bulk when you have a brand. </li></ul><ul><li>– Marketing Director, Impetus </li></ul>
  23. 23. Companies Brand and communication <ul><li>Government initiatives have lost credibility when branding is concerned </li></ul><ul><ul><li>“ This is the last chance for the government to restructure the industry sector in terms of branding” </li></ul></ul><ul><ul><li>There have been too many uncompleted initiatives in the past </li></ul></ul><ul><ul><li>Initiatives have to last in order to work or even have credibility </li></ul></ul>
  24. 24. Companies Trade offer brand <ul><ul><li>Most of the companies interviewed do not consider a trade offer brand good for their business </li></ul></ul><ul><ul><ul><li>They view it competing with their own brand </li></ul></ul></ul><ul><ul><ul><li>They do not want to leave their communication in the hands of the government </li></ul></ul></ul><ul><ul><li>There is a need for disciplined government policies that last </li></ul></ul><ul><ul><li>Policies that come and go are damaging, government loses credibility in its ability to manage </li></ul></ul><ul><ul><li>Some companies prefer to buy external brands for their expansion –prefer to communicate non-Portuguese brand </li></ul></ul><ul><ul><li>Some would prefer to advertise a country and shift its perception than build a Sectorial or trade offer brand </li></ul></ul>
  25. 25. Companies Main concerns <ul><ul><li>Possible clash between Portuguese trade offer brand, and companies' own positionings </li></ul></ul><ul><ul><li>There is a lack of collaboration between companies to find and exploit synergies </li></ul></ul><ul><ul><li>Companies are too individualistic in the way they operate </li></ul></ul><ul><ul><li>In order to create solid, successful brands, companies need efficient management </li></ul></ul><ul><ul><li>Companies need to adapt to diverse (local) needs, they need investment to promote their brand externally </li></ul></ul>
  26. 26. Companies Perception of associations <ul><li>Companies have very fragmented opinions regarding associations: </li></ul><ul><ul><li>The Shoes and Home Textile associations are work efficiently </li></ul></ul><ul><ul><ul><li>Companies benefit from their affiliation </li></ul></ul></ul><ul><ul><ul><li>Associations are heavily involved in promoting the companies </li></ul></ul></ul><ul><ul><li>However, in general, there is a lack of cooperation between associations and their member companies </li></ul></ul><ul><ul><ul><li>Multiple associations within sectors only make for competition among them –rather than collaboration </li></ul></ul></ul><ul><ul><ul><li>Only recently have there been initiatives to increase such collaboration </li></ul></ul></ul>
  27. 27. Companies In summary <ul><ul><li>Companies have a very clear idea as to the benefits of branding </li></ul></ul><ul><ul><ul><li>Branding is highly recognized as a differentiating mechanism </li></ul></ul></ul><ul><ul><ul><li>Most have experienced the shift from white label to branded </li></ul></ul></ul><ul><ul><ul><li>Most have in-house marketing and communications departments </li></ul></ul></ul><ul><ul><li>They are confident in their ability to compete internationally </li></ul></ul><ul><ul><li>Yet, where internationally communication is concerned, they would prefer to hide their origin </li></ul></ul><ul><ul><li>They lack the trust in the government’s ability to assist them in generating international awareness </li></ul></ul><ul><ul><ul><li>Do not want to share or “compete” with a general trade offer brand </li></ul></ul></ul><ul><ul><ul><li>Do not trust the execution of the trade offer programme </li></ul></ul></ul><ul><ul><li>They have little faith in their associations’ abilities to organize their industry </li></ul></ul>
  28. 28. <ul><li>“ To be successful, a Trade Offer Brand needs to adapt to the diverse needs of the many companies and industries” </li></ul><ul><li>-President, Portucel </li></ul>
  29. 29. Trade associations Challenges in International Expansion are... <ul><li>Companies need larger scale in order to compete internationally </li></ul><ul><li>Knowledge of the market </li></ul><ul><li>Alignment of the appropriate distribution partners </li></ul><ul><li>Financial capacity </li></ul><ul><li>Management skills </li></ul><ul><li>Traditional focus on production </li></ul><ul><li>Active governmental lobbying </li></ul><ul><li>Perseverance/Long term perspective </li></ul><ul><li>BRANDING </li></ul>
  30. 30. Trade associations What effect does a brand have on the industries = Adds value = Takes away value = Indifferent
  31. 31. Trade associations What effect does a brand have on the industries = Adds value = Takes away value = Indifferent
  32. 32. Trade associations In summary
  33. 33. <ul><li>“ If a company doesn’t have the funds to invest, it should collaborate with other companies in the same sector” </li></ul><ul><li>AIMMP, President </li></ul>
  34. 34. <ul><li>“ If I challenge the business man next door to make a partnership, he will say no. However, if it is a government initiative, he will accept it.” </li></ul><ul><li>-Iberomoldes, President </li></ul>
  35. 35. Opinion Leaders Main points <ul><ul><li>Perception of Portugal abroad is inconsistent with reality </li></ul></ul><ul><ul><li>Need at least 2-3 large companies with strong brands so that other brands can follow (piggy-back) </li></ul></ul><ul><ul><li>Solution may be to promote Portuguese industry abroad </li></ul></ul><ul><ul><li>Companies need to restructure in order to be able to compete internationally </li></ul></ul><ul><ul><li>Made in Portugal adds in some sectors and in other it takes away </li></ul></ul><ul><ul><li>Some expressed a surprise when they discovered the real Portuguese industries </li></ul></ul><ul><ul><li>Communication should encompass recent Portuguese innovations and products, to position Portugal as a country of qualified resources </li></ul></ul><ul><ul><li>Coordination among ICEP, API, Chambers of Commerce and embassies is crucial </li></ul></ul>
  36. 36. Interview conclusions <ul><ul><li>The multitude of Portuguese industry makes for multiple interests </li></ul></ul><ul><ul><ul><li>Some sectors feel that a Portuguese Trade Offer Brand would help </li></ul></ul></ul><ul><ul><ul><li>Other feel that it would confuse consumers and risk their business </li></ul></ul></ul><ul><ul><li>There is general awareness about branding and its advantages </li></ul></ul><ul><ul><li>Companies have the confidence in their business to expand </li></ul></ul><ul><ul><ul><li>Yet they, lack the confidence in consumer acceptance of their origin to the outside </li></ul></ul></ul><ul><ul><li>There is little incentive for smaller companies to brand </li></ul></ul><ul><ul><li>Lack of trust in government initiatives makes companies more individualistic and less eager to participate in a branding programme </li></ul></ul><ul><ul><li>Portuguese Trade offer brand may compete with company brands </li></ul></ul><ul><ul><li>A shift in the perception of Portugal abroad is imperative </li></ul></ul>
  37. 37. <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions and implications </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  38. 38. 13 countries involved <ul><li>America </li></ul><ul><li>EE.UU. </li></ul><ul><li>Brazil </li></ul><ul><li>Argentina </li></ul><ul><li>Europe </li></ul><ul><li>England </li></ul><ul><li>Germany </li></ul><ul><li>Portugal </li></ul><ul><li>France </li></ul><ul><li>Italy </li></ul><ul><li>Spain </li></ul>Asia Japan China Australasia Australia New Zealand
  39. 39. Survey questions <ul><li>Have you ever done business with a Portuguese company? </li></ul><ul><ul><li>If so, how would you describe the experience? </li></ul></ul><ul><ul><li>If not, would you consider doing business with one? </li></ul></ul><ul><li>What industries do you relate most with Portugal? </li></ul><ul><li>Can you name any Portuguese brands? (if yes, please name them) </li></ul><ul><li>When you turn over a product and read “made in Portugal” does it: </li></ul><ul><ul><li>Add value to the product depends what but generally no. </li></ul></ul><ul><ul><li>Take away value from the product yes </li></ul></ul><ul><ul><li>Indifferent </li></ul></ul><ul><li>Thinking about Portugal as a nation and culture, how would you define it? What comes to your mind in terms of words and images? </li></ul>
  40. 40. Issues affecting Portuguese trade offer Awareness <ul><ul><li>When asked to name Portuguese brands: </li></ul></ul><ul><ul><ul><li>50% were able to name at least one </li></ul></ul></ul><ul><ul><ul><li>30% were able to name a brand other than Portugal Telecom y Port Wine (not a commercial brand) </li></ul></ul></ul><ul><ul><li>When asked if “made in Portugal” adds value </li></ul></ul><ul><ul><ul><li>65% said it is indifferent </li></ul></ul></ul><ul><ul><ul><li>25% said it took away value </li></ul></ul></ul><ul><ul><ul><li>15% said it adds </li></ul></ul></ul>
  41. 41. Perception doesn’t match reality Tourism 20% Port Wine 18% Fishing 17% Wine 13% Food & Beverage 8% Bottle Cork 5% Olive oil 5% Cloth ing 5% Ceramics & Craft 5% Agriculture 4% Foreign Perception of Top Industries (by number of mentions) Reality (2001 Exports*) * (%) of top ten total Source: Icep Evolução Sectorial Das Exportações No Período 1998 - 2001 Clothing 21% Information Technology 16% Automobile components 12% Footwear 11% Food and Beverage 9% Paper and Pulp 8% Textiles (Fabric) 7% Home Textiles 6% Bottle Cork 5% Construction Materials 5%
  42. 42. Most recognized attributes from non-Portuguese have nothing to do with its industrial prowess <ul><li>Warmth and hospitality </li></ul><ul><li>History </li></ul><ul><li>A less developed Europe </li></ul><ul><li>Culinary culture </li></ul><ul><li>Wine (Port) </li></ul><ul><li>Tradition </li></ul><ul><li>Relaxed </li></ul><ul><li>Beautiful scenery and architecture </li></ul><ul><li>Nature </li></ul><ul><li>Seafood </li></ul><ul><li>Soccer </li></ul><ul><li>Similar to Spain </li></ul><ul><li>Algarve </li></ul><ul><li>Coastal, castles </li></ul><ul><li>Church </li></ul><ul><li>Rural </li></ul><ul><li>Sunshine </li></ul><ul><li>Vibrant & Colourful </li></ul><ul><li>&quot;old world&quot; charm </li></ul><ul><li>Creative </li></ul><ul><li>Latin </li></ul><ul><li>Linked to Brazil </li></ul><ul><li>Lisboa </li></ul><ul><li>Passionate </li></ul><ul><li>70's European Cities </li></ul>Note: Attributes in order of spontaneous mention
  43. 43. <ul><li>“ We need to shift the perception people have of Portugal” </li></ul><ul><li>-Mundo Textil, President </li></ul>
  44. 44. Perceptions of Portuguese goods are limited to non-industrial goods <ul><ul><li>There is little awareness of Portugal’s main value proposition </li></ul></ul><ul><ul><ul><li>Its industrial strength is ill perceived </li></ul></ul></ul><ul><ul><ul><li>Foreign consumers generally associate Portugal with tourism and tradition </li></ul></ul></ul><ul><ul><li>Very few Portuguese brands are known outside of Portugal </li></ul></ul><ul><ul><li>By the time a consumer receives a Portuguese good it has been branded by a non-Portuguese company </li></ul></ul>
  45. 45. Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  46. 46. Does “Portugal” add or take away value Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent Indifferent
  47. 47. <ul><li>The benefit of indifference is that consumers react to the discovery that a product is Portuguese with surprise and accept it </li></ul><ul><li>What is needed is to promote that surprise </li></ul>
  48. 48. Portugal is not considered an industrial economy, yet industry is what drives the majority of exports Clothing Information Technology Automobile Components Footwear Agro-Food and Beverage Paper & Pulp Textiles Home Textiles Construction Materials Bottle Cork 33 % of total exports <ul><li>Footwear: One of the largest manufacturers of unbranded shoes in Europe </li></ul><ul><li>Clothing: One of the largest providers of garments for some of the largest clothing companies </li></ul><ul><li>Information Technology: highly innovative: Via Verde; software development; biotechnology </li></ul><ul><li>Automobile components: Manufacture automobiles and components for some of the largest automobile company in the world </li></ul>Source: Icep Evolução Sectorial Das Exportações No Período 1998 - 2001
  49. 49. What is lacking is adequate communication Clothing Information Technology Automobile Components Footwear Agro-Food and Beverage Paper & Pulp Textiles Home Textiles Construction Materials Bottle Cork 33 % of total exports <ul><li>The business exists </li></ul><ul><li>Its ability to deliver is clear </li></ul><ul><li>Need to build awareness </li></ul>Source: Icep Evolução Sectorial Das Exportações No Período 1998 - 2001
  50. 50. Why is awareness of Portuguese industry and quality low? <ul><ul><li>Companies hide Portuguese identity abroad </li></ul></ul><ul><ul><ul><li>Use non-Portuguese brands </li></ul></ul></ul><ul><ul><ul><li>Purchase local brands </li></ul></ul></ul><ul><ul><ul><li>Create joint-ventures and use the partner’s brand </li></ul></ul></ul><ul><ul><li>The main industries in Portugal are focused on B2B business </li></ul></ul><ul><ul><ul><li>This is the only sector that is well recongnized </li></ul></ul></ul><ul><ul><ul><li>Yet the final user does not see Portuguese contribution </li></ul></ul></ul><ul><ul><li>Structurally, Portugal has a broad array of industries relative to its size (population) –lack of a specialization </li></ul></ul><ul><ul><li>As a result, Portugal is considered to be relatively undeveloped </li></ul></ul>
  51. 51. Portugal’s Main competitive advantages These are attributes associated with highly developed economies <ul><ul><li>Political and economic stability </li></ul></ul><ul><ul><li>Infrastructure (4,000 kms of highway, communications) </li></ul></ul><ul><ul><li>Low labour costs: Cost/value very high </li></ul></ul><ul><ul><li>People (workers): Under good management </li></ul></ul><ul><ul><ul><li>Flexibility </li></ul></ul></ul><ul><ul><ul><li>Trainability </li></ul></ul></ul><ul><ul><ul><li>Manageability </li></ul></ul></ul><ul><ul><li>Facility to deal with big markets </li></ul></ul><ul><ul><li>Third phase of EU development </li></ul></ul><ul><ul><li>Strong work force (good thinkers and workers) </li></ul></ul><ul><ul><li>Open to foreigners and their ideas </li></ul></ul>
  52. 52. General conclusions <ul><li>Companies want: </li></ul><ul><ul><li>Monetary incentives to expand their brands </li></ul></ul><ul><ul><li>Not to compete with Portuguese Trade Offer brand </li></ul></ul><ul><ul><li>Clearer understanding abroad of Portuguese industry realities </li></ul></ul><ul><li>Industries need: </li></ul><ul><li>Monetary incentives to increase communication </li></ul><ul><li>Awareness of their strength and diversity </li></ul><ul><li>Good communications </li></ul><ul><li>To empower companies to develop brands </li></ul><ul><li>Associations say: </li></ul><ul><li>Monetary incentives to promote their industries are fundamental in their member companies’ success </li></ul><ul><li>Greater incentives from the government regarding the brand programme </li></ul><ul><li>Consumers perceive: </li></ul><ul><li>Portuguese industry indifferently </li></ul><ul><li>Portugal as a non-industrial economy </li></ul>
  53. 53. General conclusions, cont <ul><ul><li>There is no one clear cut path for the Portuguese Trade offer </li></ul></ul><ul><ul><ul><li>Companies actively disassociate themselves with Portugal </li></ul></ul></ul><ul><ul><ul><li>Industries require an initiative to communicate the reality of Portugal’s strength </li></ul></ul></ul><ul><ul><li>Perceptions of the Portuguese trade offer do not match reality </li></ul></ul><ul><ul><li>The majority of Portuguese companies are inward-looking </li></ul></ul><ul><ul><ul><li>Do not promote themselves outside </li></ul></ul></ul><ul><ul><ul><li>Lack a brand or the necessary tools to generate awareness </li></ul></ul></ul><ul><ul><li>Portuguese brands don’t need to communicate their origin, Portugal needs to communicate its brands </li></ul></ul>
  54. 54. Agenda <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  55. 55. A Portuguese Trade Offer brand is one piece of the overall Portuguese Trade Offer Brand Strategy <ul><ul><li>The scope and range of Portuguese industry is very broad </li></ul></ul><ul><ul><li>Different companies have different business models </li></ul></ul><ul><ul><li>Different companies communicate their offer in different ways </li></ul></ul><ul><ul><li>Some companies are global, some are local </li></ul></ul><ul><ul><li>Some companies are B2B, some are B2C </li></ul></ul>
  56. 56. <ul><li>How do we create a strategy that can empower the overall trade offer of Portugal ? </li></ul>
  57. 57. There is an interactive role between commercial brands and industry Trade Offer Brand Value Circle Brands Industry
  58. 58. Where awareness is shared and passed down Trade Offer Brand Value Circle Brands Industry Brand potential International brands Deliver the promise of Portugal to the outside –generate reputation Int’l Awareness Local brands Demonstrate strength in Portuguese industry Non-brands (White label) : Benefit from the reputation of the local brands to the industry –it becomes their communication Local Awareness
  59. 59. Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Development Brand Creation Golden Brands No brands
  60. 60. Golden Brands Brands that strengthen the image of the Portuguese trade offer <ul><li>Description </li></ul><ul><ul><li>Help to build the Portugal identity/personality </li></ul></ul><ul><ul><li>Create an association between their reputation and the Portuguese trade offer </li></ul></ul><ul><ul><li>Establish value for Portuguese goods in general </li></ul></ul><ul><ul><li>Serve as role models: Pass their experience to other companies </li></ul></ul><ul><ul><li>They expand Portugal’s permissions on a global scale </li></ul></ul><ul><li>Criteria </li></ul><ul><ul><li>Global recognition </li></ul></ul><ul><ul><li>Have an international focus </li></ul></ul><ul><ul><li>Operate on a global scale </li></ul></ul><ul><ul><li>Organized communication strategy </li></ul></ul><ul><ul><li>Have a broad and organized distribution chain </li></ul></ul>
  61. 61. Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Development Brand Creation TAP GALP PT MATEUS ROSÉ CAIXA GERAL DEP. BCP BES VISTA ALEGRE Golden Brands No brands
  62. 62. Established Brands Portuguese brands that strengthen their industry and generate awareness <ul><li>Description </li></ul><ul><ul><li>Do not yet have the recognition of Golden Brands </li></ul></ul><ul><ul><li>Are not associated with Portugal </li></ul></ul><ul><ul><li>Lack a sufficient distribution network </li></ul></ul><ul><ul><li>Generate a reputation for their respective industry </li></ul></ul><ul><ul><ul><li>Increase the awareness of their sector </li></ul></ul></ul><ul><ul><ul><li>Build the reputation for other brands in their industry </li></ul></ul></ul><ul><ul><li>Benefit from the image Golden Brands give to Portuguese goods </li></ul></ul><ul><li>Criteria </li></ul><ul><ul><li>Can be both local and international </li></ul></ul><ul><ul><li>Have strong domestic recognition </li></ul></ul>
  63. 63. Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Development Brand Creation MGLASS VA ATLANTIS GLOBE GALO COMPAL RENOVA NAVIGATOR MIGUEL VIEIRA IMPETUS SALSA CAMPOR DALMATA FLY LONDON SAGRES LANIDOR SUPER BOCK SWEAR Golden Brands No brands
  64. 64. Developing Brands Companies with the ability, today, to have a brand <ul><li>Description </li></ul><ul><ul><li>White Label companies that make goods for consumers </li></ul></ul><ul><ul><li>Need to create a consumer brand </li></ul></ul><ul><ul><li>Benefit from the awareness given to their industries by Established Brands </li></ul></ul><ul><ul><li>Represent the future of the industry </li></ul></ul><ul><ul><li>They require a catalyst to shift them to the commercial level </li></ul></ul><ul><li>Criteria </li></ul><ul><ul><li>Companies that make products potentially commercialable </li></ul></ul>
  65. 65. Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Development Brand Creation MACONDE TORRE JOTABE HABIDECOR NOREMA MÓVEIS VIRIATO LEVIRA MÁRMORES GALVÃO PETRATEX CRIALME GEPACK OCTAL NUMBER FIVE CRITICAL SOFTWARE Golden Brands No brands
  66. 66. White Label Companies that do not have, nor require, a consumer brand today <ul><li>Description </li></ul><ul><ul><li>Fulfill the promise of Portguese industry through the quality of their goods </li></ul></ul><ul><ul><li>White label companies in B2B industries in which the final user does not perceive the good manufactured by Portugal </li></ul></ul><ul><ul><li>Benefit from overall awareness of the Portuguese trade offer </li></ul></ul>
  67. 67. Portuguese Brandscape Brands White labels Companies Industries Established Brands Developing Brands Reputation Awareness Brand Development Brand Creation CORTIÇA VINHO DO PORTO AZEITE FINANCEIROS TELECOMS CALÇADO VINHOS VIDRO CERÂMICA PAPEL ENERGIA MOLDES TEXTIL-LAR PEDRAS/ROCHAS CONSTRUÇÃO CIMENTOS ÁGUAS E SUMOS PAVIMENTOS/ REVESTIMENTOS UTILIDADES DOMÉSTICAS MOBILIÁRIO CERVEJAS AGRO-ALIMENTARES EMBALAGEM ELECTRODOMÉSTICOS METALOMECÂNICA IT´S ELÉCTRICO/ ELECTRÓNICO TECIDOS FARMACEUTICA MADEIRA CONSULTORIA BIOTECNOLOGIA COMPONENTES AUTOMÓVEL Golden Brands No brands MGLASS VA ATLANTIS GLOBE GALO COMPAL RENOVA NAVIGATOR MIGUEL VIEIRA IMPETUS SALSA CAMPOR DALMATA FLY LONDON SAGRES LANIDOR SUPER BOCK SWEAR TAP GALP PT MATEUS ROSÉ CAIXA GERAL DEP. BCP BES MACONDE TORRE JOTABE HABIDECOR NOREMA MÓVEIS VIRIATO LEVIRA MÁRMORES GALVÃO PETRATEX CRIALME GEPACK OCTAL NUMBER FIVE CRITICAL SOFTWARE
  68. 68. <ul><li>“ It would be much better for my brand if there were 15 other brands like mine” </li></ul><ul><li> -Fly London </li></ul>
  69. 69. Trickle-down Branding The roles of the different brand categories Developing Brands White Label Golden Brands Build consumer awareness Established Brands Build reputation for Portuguese trade offer Build industry awareness Build industry strength Build path for White Labels to build consumer brands Empower “Developing Brands” in their communication y cooperation Provide permissions for “Potential Brands” to shift
  70. 70. Trickle-down Branding Example of the relationship Developing Brands White Label Golden Brands Established Brands Build consumer awareness Build reputation for Portuguese trade offer Build industry awareness Build industry strength Give awarenss to the glass industry so that other brands in glassware can evolve to consumer brands
  71. 71. This relationship increases awareness and changes the perceptions of the Portuguese trade offer Branded Companies PORTUGUESE TRADE OFFER <ul><ul><li>Deliver on promise </li></ul></ul><ul><ul><li>Industry reputation </li></ul></ul><ul><ul><li>Add value </li></ul></ul>Non-branded companies <ul><ul><li>Empowers businesses </li></ul></ul>Industry awareness <ul><ul><li>Permissions for brands </li></ul></ul><ul><ul><li>CHANGE PERCEPTIONS </li></ul></ul>
  72. 72. <ul><li>How can we accomplish this for the Portuguese trade offer? </li></ul>
  73. 73. Imperatives for the Portuguese trade offer <ul><ul><li>Change perceptions </li></ul></ul><ul><ul><li>Unite companies </li></ul></ul><ul><ul><li>Create focus </li></ul></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>National / Iberian / International </li></ul></ul>
  74. 74. <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  75. 75. <ul><li>“ We need a sector (Fileira) brand, that clearly associates us to Portugal.” </li></ul><ul><li>Cefamol –Moulds </li></ul>
  76. 76. Trade symbol concept
  77. 77. <ul><li>“ Companies and businessmen should cooperate more to build alliances and partnerships to better export Portuguese products... Turn weaknesses into strengths and enter into international markets” </li></ul><ul><li>President Jorge Sampaio </li></ul>
  78. 78. <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  79. 79. <ul><li>PART I </li></ul><ul><ul><li>Objective </li></ul></ul><ul><ul><li>Interview findings –Executive Summary </li></ul></ul><ul><ul><li>Survey results </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul><ul><li>PART II </li></ul><ul><ul><li>Brand strategy development </li></ul></ul><ul><ul><li>Concept exploration </li></ul></ul><ul><ul><li>Discussion </li></ul></ul><ul><ul><li>Next steps </li></ul></ul>
  80. 80. Next steps <ul><ul><li>Feedback on concepts </li></ul></ul><ul><ul><li>Continue development of concepts </li></ul></ul>
  81. 81. Thank you

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