A richly diverse market ripe for disruption and with an appetite for global brands: we reveal how Argentina can repay those marketers prepared to tackle its financial challenges.

1. Intelligence Applied Emerging markets
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Humour, homeliness and happiness: how
brands can position themselves to appeal
to Argentinians in one of South America’s
most challenging yet rewarding markets.
Argentina is a market ripe for disruption. Covering over two
million miles and with 24 distinct provinces, its differing
geographies and climates mean that somewhere in the country at
any one point, there are many opportunities for brands to engage
with new audiences. Cultural hooks such as the nation’s love of
football, asado barbeque, tango and local music provide a stage
for occasion-based marketing campaigns whilst research shows
that family is the most valued aspect of life, where friendship
plays an important role for happiness. The impact of immigration
in previous centuries generates a combined profile: figures from
a survey by TNS show that almost 9 out of 10 are proud to be
Argentinians, but 64% also hope for the country to be close
to Europe, showing a receptive environment for global brands
established in Western markets.
However, Argentina has been a challenging market for
international brands. In 2012 a number of luxury retailers such as
Ralph Lauren and Escada left the country due to import barriers,
currency controls and soaring inflation. Inflation and the economy
remain key concerns for locals and one in four Argentinians believe
that now is a bad time to buy durable goods. This economic
uncertainty does however mean that brands looking to gain a
foothold in Argentina can capitalise on the current mood. There
is an attitude amongst Argentines that their cash would be better
spent than saved and with commodities continuing to rise in price,
there is a growing appetite for promotions and offers in stores.
In the current landscape, low cost brands and outlet offers are
thriving and newcomers need to be prepared for a climate of
competitive cost-cutting or being strong enough to transmit value
for money. Brands that are prepared to embrace this are much
more likely to succeed. Yet on the flipside, local concern about the
economy means that glamourous marketing campaigns selling
an ideal of commercial success will likely lose out. Brands would
do better to hone in on Argentinian values of family and friends,
positioning their offering as a wholesome and value-driven option.
Many brands have enjoyed success in Argentina due to a strong
and enduring profile which has resonated with the local mindset.
Ford Motor is one example of an international brand which has
used strong marketing campaigns about families, agriculture
and the country’s rural beauty that have tapped into the
Argentine identity and secured a loyal following as a result. Its TV
commercials, such as the Ford Ecosport in 2007, are compelling
for Argentinians who identify with these physical places.
Brands like Toyota have also played the game: their 2014 advert for
the Hilux sport is filmed in a recognisable landscape to the sound of
local music to generate a closer proximity to Argentinian consumers.
How brands can position themselves
to appeal to Argentinians

2. Intelligence AppliedShare this
How brands can position themselves
to appeal to Argentinians
Similarly, Coca-Cola has taken advantage of Argentina’s love
of football. grown its customer base reinforced its presence in
Argentina through its active association with football. In 2014,
they made a commercial called ‘El Abrazo’ which recalled one
of the most iconic moments in Argentina’s football history when
Victor Dell’Aquila ran onto the field after the match and gave
a symbolic hug to Alberto Tarantini and Ubaldo Fillol, two of
the football players responsible winning Argentina’s first World
Cup title.
The enduring popularity of mate, a traditional South American
drink made by an infusion of dried leaves of yerba mate which
contains caffeine, could be in part the reason why soft drink
brands have thrived in Argentina. Fruit flavoured water (Aquarius)
and fruit-flavoured drink Tang are increasingly popular as they
have developed a variety of flavours to suit local preferences.
It is clear that there is need for global brands to balance an
international approach with recognition of local tastes. Soup
brand Knorr, owned by Unilever, produces corn-flavoured soup
for its consumers in Argentina. Similarly Dove, which has a strong
footprint in Argentina, has launched a new ‘Dove Curls’ hair
product along with a #LoveYourCurls video.
Hashtags and social media campaigns are increasingly the best
way to engage with consumers, as Argentina has become a
mobile centric market, where social networking sites are the
primary means consumers use for engaging with brands.
Outside of social media, they are not very receptive towards emails,
online discussions, online customer service, or branded communities.
Saving money and gaining access to exclusive products are the
primary motivations for engaging with brands in the digital space,
although this varies somewhat by category. For example, access
to product information is more highly valued by technology
consumers, whilst in the financial services sector, the desire is for
a service that can make life easier for the consumer.
The stories of brands that have succeeded in Argentina prove that
the desirability of foreign commodities has to be balanced with
an acknowledgement of the ever-changing values of population
in the midst of economic uncertainty. Brands that can anchor
themselves to core, long-term values such as family, friendship,
the countryside and expressions of happiness, will be the ones
who experience success.
About TNS
TNS advises clients on specific growth strategies around new
market entry, innovation, brand switching and customer
strategies, based on long-established expertise and market
leading solutions. With a presence in over 80 countries, TNS
has more conversations with the world’s consumers than
anyone else and understands individual human behaviours
and attitudes across every cultural, economic and political
region of the world.
TNS is part of Kantar, the data investment management
division of WPP and one of the world’s largest insight,
information and consultancy groups.
Please visit www.tnsglobal.com for more information.
If you would like to talk to us about this report,
please get in touch via enquiries@tnsglobal.com
or on Twitter @tns_global
About the author
Mercedes Ruiz Barrio is the Commercial
Director in Latin America. With over
20 years’ experience, Mercedes has helped
some of the world’s largest international
companies succeed in Latin America.
To find out more about how TNS can help your brand grow
in Argentina, contact Mercedes at mercedes.ruizbarrio@
tnsglobal.com.