Our POV on “Cultural & Economic Relevance” in Latin America during an age of rapid Economic, Cultural, & Political Convergence.

What does the G7, G8 & G20 have to do with new Marketing & Branding trends in Latin America?

“The G7 (also known as the G-7) was formed in 1976, when Canada joined the Group of Six:

France, Germany, Italy, Japan, United Kingdom, and United States.”

http://en.wikipedia.org/wiki/G7

In the beginning… there where 7

“An economic and political group of the seven largest industrialized nations,

the powerful group of nations does not include any developing nations.”

A brief history of G.

A brief history of G.

http://en.wikipedia.org/wiki/G8

And then … there where 8

“The Group of Eight (G8, and formerly the G6 or Group of Six and also the G7 or Group of Seven) is a forum, created by France in 1975, for governments of six countries in the world: France, Germany, Italy, Japan, the United Kingdom, and the United States.

In 1976, Canada joined the group (thus creating the G7).

In becoming the G8, the group added Russia in 1997.”

A brief history of G.

http://en.wikipedia.org/wiki/G-20_major_economies

And then … there where 20

“The Group of Twenty Finance Ministers and Central Bank Governors (known as the G-20 and also the G20 or Group of Twenty) is a group of finance ministers and central banks governors from 20 economies: 19 countries plus the European Union.

A brief history of G.

http://en.wikipedia.org/wiki/G-20_major_economies

And then … there where 20

Collectively, the G20 economies comprise 85% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.”

How the Power of G works.

The Global Round Table has a Power Mechanic &

Dynamic:

A Democratic/Political attitude towards Economy

A Capitalist/Economic attitude towards Culture.

&

How the Power of G works.

“The G20 is a forum for cooperation & consultation on matters pertaining

to the International Financial System. It studies, reviews, and promotes discussion

(among key industrial and emerging market countries) of policy issues pertaining to

the promotion of international financial stability.”

With the G20 growing in stature since the 2008 Washington summit, its leaders announced on September 25, 2009, that the group will

replace the G8 as the main economic council of wealthy nations.http://en.wikipedia.org/wiki/G-20_major_economies

The Global Round Table has a Power Mechanic &

Dynamic:

How the Power of G works.

• Power as a goal of states or leaders

• Power as a measure of influence or control over outcomes, events, actors and

issues

• Power as reflecting victory in conflict and the attainment of security

• Power as control over resources and capabilities.

With the G20 growing in stature since the 2008 Washington summit, its leaders announced on September 25, 2009, that the group will replace the G8 as the main economic council of

wealthy nations.http://en.wikipedia.org/wiki/G-20_major_economies

The Global Round Table has a Power Mechanic &

Dynamic:

How the Power of G works.

Cultural & Political

MediaMedium

Cultural & Economic Channels/Brands

Walt Disney

Viacom

Time Warner

News Corp

Beltersman

Universal

SonyTCI

GE

Cultural Relevance

Economical Relevance

GE

Walt Disney Coca-Cola Co.

IBM

ToyotaP&G

Telefónica

Nestlé

Pepsi Co.

The Global Round Table has a Power Mechanic &

Dynamic:

Wal-Mart

The G Power “Media” Brands.

The G Power “Medium” Brands.

The Power of G at work in LATAM.

http://en.wikipedia.org/wiki/G-20_major_economies

Cultural & Political

MediaMedium

Cultural & Economic Channels/Brands

Walt DisneyGlobo

Grupo Clarin

News Corp Universal

Sony

TCI

GE

Cultural Relevance

Economical Relevance

Bimbo

Coca-Cola Co.AmBev

Itaúsa

Telefónica

Corona

The Power of G at work in LATAM.

Televisa

Telefónica

Cemex Wal-Mart

Grupo ModeloGrupo

Moctezuma

The G Power & Latin American “Media” Brands.

The G Power & Latin American “Medium” Brands.

The Power of G at work in LATAM.

Global conglomerates can at times have a progressive impact on culture, especially when they enter nations that had been tightly controlled by corrupt crony media systems (as in much of Latin America) or nations that had significant state

censorship over media (as in parts of Asia). The global commercial-media system is radical in that it will respect no tradition or custom, on balance, if it stands in the way of

profits. But ultimately it is politically conservative, because the media giants are significant beneficiaries of the current social structure around the world, and any

upheaval in property or social relations—particularly to the extent that it reduces the power of business—is not in their interest.

— Robert W. McChesney, The New Global Media; It’s a Small World of Big Conglomerates The Nation Magazine, November 29, 1999

Since the late 1980s, the global politics of privatisation and liberalisation combined with homegrown cronyism have perfected, […} “gianormous” media conglomerates in Latin

America. In Mexico and Brazil, the Televisa and Globo companies respectively, have dominated the media

for decades. Taking advantage of their close association with authoritarian governments, both companies were able to consolidate their control, particularly in broadcasting. Currently, they hold

extensive interests in television, film, newspaper, music, radio and in other industries.

— Miren Gutierrez, Fewer Players, Less Freedom, Inter Press Service, March 20, 2004

“…News Corp’s Sky Latin America and Hughes Electronics' DirecTv Latin America (DLA), dominate the DTH (direct to home) sector in Central and South America…”

“…America’s first broadcast network, NBC, owns and operates more than 14 stations, along with CNBC, a business-news network, and Telemundo, the nation’s second-largest

Spanish-language broadcaster...”“…CNN International can be seen in 212 countries, with a daily audience of 1 billion

globally…”

http://www.opendemocracy.net/print/64

Cultural Relevance

Economical Relevance

The Power of G: Cultural & Economic Relevance.

Emerging Economies & Cultures have impact & are impacted upon, as they

search/gain relevance in the world’s stage of G Powers.

“Emerging” means that the Economy & Culture of a Country/Region has “Relevance”, hence, deemed worthy of

interacting with.Economy “transfer of value” Economic interactivity

Energy “transfer of value” Energetic interactivity

Culture “transfer of value” Cultural interactivity

Media “transfer of value” Media interactivity

Goods “transfer of value” Trade interactivity

Cultural Relevance

Economical Relevance

Emerging Economies are emerging because they are seeing the rise of their middle working class.

The working middle classes in Argentina, Brazil, & México look up and desire the Cultural & Economic Relevance / Life Style enjoyed by citizens/consumers/shoppers of the G Powers.

The Working Middle Class works harder (raising the National GDP, Per Capital Income & Personal Consumption) in order to be able to pay for products/services that the G Power

Working class enjoys.

The Working Middle Class works to pay for an escape of their working realities by consuming G20 Cultural/Media realities in goods/services.

http://en.wikipedia.org/wiki/G-20_major_economies

The Power of G: Cultural & Economic Relevance.

Cultural Relevance

Economical Relevancehttp://en.wikipedia.org/wiki/G-20_major_economies

New Media/Mediums & New Products/Services are first created and tested at G8 levels and then –once “perfected”- they get monetized Worldwide at all levels of G20.

As Economies/Cultures emerge (Mastering of Cultural/Capitalist & Economic/Cultural Relevance) and becomes more relevant economically & culturally to the G8/G20, they

adopt cultural & economic patterns of consumption/behavior.

But the impacted also has an impact: Emerging Economies/Cultures also impact the G8/G20 by way of their own cultural & economic innovation to the rest of the world

economies.

Hence, the richest guy in the world, Mr. Carlos Slim, is from Mexico.

The Power of G: Cultural & Economic Relevance.

Cultural & Economic Relevance happens even during “bust” economic times.

Cultural Relevance

Economical Relevance

Cultural & Economic Relevance happens even during “bust” economic times.

“In the coming weeks, I will introduce a bill in Congress to create a new professional exchange program between the United States and Muslim-majority countries.

This pilot program would allow young American professionals to spend six months overseas experiencing a new culture in Muslim countries while gaining new work experiences.

And it would allow citizens of those countries to spend six months in the United States, where they will gain valuable work skills and see what life in America is all about.

We've done this before. After World War II, our leaders -- and particularly a young senator from Arkansas named J. William Fulbright -- recognized the value of building bridges through exchanges.

While the Fulbright program began modestly in 1946, today, 300,000 men and women have been proudly called "Fulbrighters."

The alumni list includes 40 Nobel Prize winners from 11 countries, and 7,500 new scholars every year. If you doubt that people-to-people exchanges are a good diplomatic investment, consider this: 20 of those young international Fulbright scholars who came to study in America went on to become heads of state.”

http://www.huffingtonpost.com/john-kerry/exchanging-people-and-ide_b_601128.html?view=print

Cultural & Economic Relevance happens even during “bust” economic times.

“Bravo isn’t simply guessing that the more exposed and personal aspects of Ms. Frankel’s life will appeal to its audience. The network, which finds and tests stars in much the same way that consumer products companies develop and market shampoos and mascaras, has done its homework.

And it is confident that this is exactly what viewers want out of a show starring Ms. Frankel, one of its “Bravolebrities.”

Viewers’ opinions, carefully observed and culled on the Web and pinpointed through more traditional market research, tend to dictate which Bravo stars graduate from ensemble reality shows to their own programs.

The thinking is that they’ve already been vetted by the Bravo audience and the research team, and that they’ve already built brand awareness — so Bravo is, in marketing terms, just extending its product line.”http://www.nytimes.com/2010/06/06/business/06bravo.html?adxnnl=1&ref=business&pagewanted=print&adxnnlx=1275994851-AeuvzWTuz3muRryFV29d7g

Cultural & Economic Relevance happens even during “bust” economic times.

The reason, perhaps, is that the newly elected center-right prime minister, Viktor Orban — like other political leaders in Europe — is finding it nearly impossible to satisfy two very different constituencies:

disaffected voters who are unwilling to see their pay and benefits cut further,

and the European Union, the I.M.F. and bond investors, who are demanding ever deeper austerity measures as a way of reducing debt.

http://www.nytimes.com/2010/06/07/business/global/07euro.html?ref=business

Cultural & Economic Relevance: Conclusion.

We believe that The Brands that do not try to understand, leverage, and capitalize on the

Dynamics/Mechanics of “Cultural & Economic Relevance” in Latin America

–in a manner where they can positions themselves ahead of the curve/wave-

will inevitably loose value and relevance in the minds of Consumers/Shoppers, the Media/Mediums,

the Culture, the Politics, and the Economy.

“Out of mind, out of sight” = Economic & Cultural Ir-relevance