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The Purple Love: Nubank

On my last post for the Branding Class I would like to share a unique success story: Nubank.

Nubank is a 5-year old digital bank operating in Brazil. Besides its innovative model, its success relies on its customers’ passion for the brand and for the service - the Purple Love. They have over 8 million users in Brazil, from which 70% are less than 36 year-old. One of their investors describes them as “financial services with a very strong technology backbone”.

Nubank says that they hear and value customers’ opinions, and they really mean it. As Cristina Junqueira, Co-Founder and VP at Nubank Brasil, mentioned in a recent (2016) interview for the BrandChannel: “Today our growth is mainly through customer referrals. The average Nubank customer brings in approximately three new customers within a year. Our customers have really been our biggest advocates and have spread the word about us in ways we never imagined possible.”

Nubank customer base expansion happened through word of mouth. On their app, there is a feature that a customer can invite new friends, and you can only apply to the credit card if you have an invitation. I actually had a Nubank credit card in Brazil, and I applied because a close friend recommended to me and actually demonstrated how to use the app in person. I was fascinated and immediately applied.

On their website, Nubank describes themselves as “Rebels with a Cause”, their objective is “to fight complexity and empower people, returning control of their finances to their hands”. They created a #sounu, which means “I am Nubank” in Portuguese, and this brings this concept as you are part of the company. Many clients post on their social media when their cards arrive and they become a member of the Nubank’s community. 

Today Nubank have over 300 thousand followers on Instagram, over 1,5 million followers on Facebook and over 100 thousand followers on Twitter. YouTube is populated by many videos commenting their products or customers sharing their experience, all on their personal channels.  

Nubank is definitely a perfect example of a company with a genuine purpose, that could perfectly implement a strategy that lead to a network effect, that on the brand sustainability map I would place at the upper right quadrant as a sustainable company, and that since inception based their branding strategy on the Relationship Era principles.

Sources:

Company website: www.nubank.com.br  

BrandChannel interview with Cristina Junqueira, Co-Founder and Vice-President of Branding and Business Development at Nubank Brasil, available at: http://brandchannel.com/2016/10/06/nubank-100616/  

Company’s description available at: https://www.sequoiacap.com/companies/nubank/

[tatimey-blog]

The Purple Love: Nubank

On my last post for the Branding Class I would like to share a unique success story: Nubank.

Nubank is a 5-year old digital bank operating in Brazil. Besides its innovative model, its success relies on its customers’ passion for the brand and for the service - the Purple Love. They have over 8 million users in Brazil, from which 70% are less than 36 year-old. One of their investors describes them as “financial services with a very strong technology backbone”.

Nubank says that they hear and value customers’ opinions, and they really mean it. As Cristina Junqueira, Co-Founder and VP at Nubank Brasil, mentioned in a recent (2016) interview for the BrandChannel: “Today our growth is mainly through customer referrals. The average Nubank customer brings in approximately three new customers within a year. Our customers have really been our biggest advocates and have spread the word about us in ways we never imagined possible.”

Nubank customer base expansion happened through word of mouth. On their app, there is a feature that a customer can invite new friends, and you can only apply to the credit card if you have an invitation. I actually had a Nubank credit card in Brazil, and I applied because a close friend recommended to me and actually demonstrated how to use the app in person. I was fascinated and immediately applied.

On their website, Nubank describes themselves as “Rebels with a Cause”, their objective is “to fight complexity and empower people, returning control of their finances to their hands”. They created a #sounu, which means “I am Nubank” in Portuguese, and this brings this concept as you are part of the company. Many clients post on their social media when their cards arrive and they become a member of the Nubank’s community. 

Today Nubank have over 300 thousand followers on Instagram, over 1,5 million followers on Facebook and over 100 thousand followers on Twitter. YouTube is populated by many videos commenting their products or customers sharing their experience, all on their personal channels.  

Nubank is definitely a perfect example of a company with a genuine purpose, that could perfectly implement a strategy that lead to a network effect, that on the brand sustainability map I would place at the upper right quadrant as a sustainable company, and that since inception based their branding strategy on the Relationship Era principles.

Sources:

Company website: www.nubank.com.br  

BrandChannel interview with Cristina Junqueira, Co-Founder and Vice-President of Branding and Business Development at Nubank Brasil, available at: http://brandchannel.com/2016/10/06/nubank-100616/  

Company’s description available at: https://www.sequoiacap.com/companies/nubank/

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The Boticário Case: breaking taboos to share values and empower the brand through advertising

While I was reflecting about the case of this week, that talks about consumer behavior and their choices with embedded culture, I remembered of a case of a Brazilian brand of cosmetics that was recently really successful by breaking some taboos in their advertisement in very positive and brilliant way. 

Well, according to Wikipedia, Boticario was founded in 1977, is the second biggest cosmetic company in Brazil and the largest cosmetic franchise in the world. From my personal perspective, it is a brand associated with gifts. Since I was a child, I remember of always getting a gift from Boticario on my birthday or special occasions. Today, their line of products includes over 480 items comprising body care, facial care, sun care, makeup, deodorizing colognes, deodorants, soaps and shampoos.

Their slogan is “Acredite na beleza”, or “believe in beauty” and recently they have been exploring the association of their products to important moments in people’s life. Their advertisements are always connected to a commercial date like Christmas, Mother’s day, Father’s Day, Valentine’s Day, etc. In my opinion Boticario is definitely a safe option for a gift. Their ads now bet on some thorny subjects or taboos that are not really well explored in the ad world, but that are really common in people’s live. In my opinion, Boticario was successful because they really caught the attention of many different public with their ads, started a discussion and now they reinforced the brand on top of people’s mind. They also explored those taboos with lightness and respect, that I believe that also helped in way to educate people and make them reflect about their values.

The first example, talks about an Ad on Valentine’s Day. There is no text, so no translations needed.

The commercial has a surprising end, where the couples celebrating their valentine's day are gay couples. I think this is a brilliant commercial! Many people would definitely think that these couples were altered, their mindsets would definitely associate the older man with the older woman and the younger man with the younger woman. On that year, everybody was commenting the Boticario’s ad.  

The second example is regarding divorce. The commercial is about a history of a family where the couple is divorcing and during Christmas their daughter makes a fantasy theater presentation. Her story telling is about her interpretation of their divorce. The child tells “So, the Queen and the King will not live in the same castle anymore, what an absurd! Well, that’s not an absurd because they are still the best friends in the world, and the princess (herself) still loves both of them, and whenever she needs them, they booth will be there together supporting her…like a Christmas Magic”. By the end the couple exchange Boticario’s gifts and say to each other: “Best friends in the world?”. Well, divorce in Brazil, even today, is still a taboo, although most of the families face it. Many consumers identified with this commercial.    

I love Boticario’s advertising, how they share their values with their consumers on such difficult themes, and how they are positioning their brand in people’s lives and special moments. Hopefully these subjects will soon become just ordinary subjects.    

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Havaianas: from a poor flip flop to an international brand that everybody uses

You have likely heard about Havaianas. At least at Sloan, we sold Havaianas to raise funds for the Brazil Club CFx last month. While I was reading the case about Burberry this week, I could not stop thinking of this amazing Brazilian example of a Brand revamp - and I have to confess that I am a loyal consumer; I probably have more than 10 pairs of Havaianas now.

Burberry and Havaianas have a lot in common in terms of being a traditional and old brand that were able to change their brand’s positioning, overcoming an adverse environment. They both created new products, still grounded in their origins, invested in the right marketing strategy, understood the market and their consumers, and recreated a consistent and recognized worldwide brand.

Let me share more about Havaianas’ turnaround story.

According to Wikipedia, “Havaianas is a Brazilian brand of flip-flop sandals created by Scotsman Robert Fraser in 1962. It is currently owned by Brazilian manufacturing company Alpargatas. Inspired by Japanese zōri sandals, Fraser became the first to mass-produce flip-flops out of rubber. The name Havaianas is derived from the feminine form of the Portuguese word for "Hawaiians", and the pattern on the soles of the sandals is designed to resemble the straw soles of zōri.”

In the beginning, Havaianas was most popular with low income consumers, because it was cheap, comfortable and durable. By the end of the 80’s, the company started to face a decrease in sales and in mid-90’s the management team decided to reposition the brand. Their goal was to turn Havaianas into an aspirational brand. The first action was to launch a new product, “Havaianas Top”, which offered new options of colors and its brand logo on the straps. The price was higher and the ads focused on showing celebrities using the flip flops. The strategy was really successful and as Havaianas mention on their website:

“1994: Everyone wears them. Confirmed! Havaianas are worn by all! Between the anonymous and the famous, everyone wears them. Suddenly, Brazilians were snatching them up in multiple shades for all occasions.”

Making a long story short, after the successful release of Havaianas Top, they invested in new flip flop models and colors. In 2000, Havaianas decided to go global, and again they were successfully. Their impact goes beyond a successful business case; Havaianas succeeded in boosting Brazil’s image around the world. It is now a case studied in Business Schools around the globe.

This video, even though is in Portuguese, summarizes the brand revamp, no needs for translation. It starts with the oldest ads, very interesting to see!

https://www.youtube.com/watch?v=3pGrfO042Kk

I made a selection of some recent Ads - with subtitles, it is an international Brand after all :)

Sources:

Company’s website: https://www.havaianas.com.br/

https://en.wikipedia.org/wiki/Havaianas

Belloni, Luiza. “A fórmula da Havaianas para deixar o mundo aos seus pés”. Available at: https://exame.abril.com.br/negocios/a-formula-da-havaianas-para-deixar-o-mundo-aos-seus-pes/

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When I met the Singapore Girl

In 2011, I was a senior analyst at the Corporate Finance team of a company that was raising corporate debt abroad, and I had a chance to travel to Asia in a Roadshow with the company’s executives and the advisory banks.

I have never been to Asia before, and I have never flown on Business Class until that roadshow. Our first destiny was Singapore, and from Paris to Singapore we flew with Singapore Airlines. One important detail:  we were four people from the same company traveling together, the business class was full, so the travel agency booked all of us in “individual suites”. I have never heard that there was a suite in an airplane…

So let me walk you through my unique experience with Singapore Airlines – the best flight I have ever had in my life – using two principles of Applied Behavioral Science.

Principle One: Finish Strong

During check in I was the only woman in the group, it was my first international trip in a business setting, and I was really afraid of not getting my bag in Asia, with all my business clothes for the roadshow meetings. I expressed that during the check in, and the attendant told me that I could be sure that my bag would be in Singapore when I arrive.

When I got out of the door of the airplane in Singapore, there was a lady from the airline staff holding a plate with my name. My first thought was: “OMG something went wrong, because she was at the finger in front of the airplane’s door, only with my name”. However, she was there waiting for me to walk me through the airport until the baggage claim area and waited with me until I got my bag. Many people would not believe me, so I took a picture with her.

Principle Four: Build Commitment Through Choice

Flying from Paris to Singapore took us almost 12 hours. We were all really tired because our first flight was from Rio de Janeiro to Paris, another 10-hour flight… So when I got in the airplane my first question to the flight attendant was “at what time they would serve dinner”, and the answer was: “at any time you wish, here is a menu and the chef is ready to prepare dinner for you at any time”. I was definitely not expecting that!  I could also choose at what time they would do my bed for me, yes! There is a bed with pillows, sheets, blankets, everything and it is not a chair, it is a real bed!

 Singapore Airlines is definitely outstanding, and the text really reflects the costumer experience, all employees try to provide their customers with the best experience, the flight offer us a lot of comfort and they go beyond a flight service, I will never forget that I had a person waiting for me at the airplane’s door just to make sure I got my suitcase!  

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The Halo effect can also apply to other products, especially when quality is an important attribute on the Consumer’s decision

I am not an expert in wine, although I really appreciate drinking it. I actually have been to the Concha y Toro winery in Chile and was really impressed! But while I was reading its case, one aspect that in fact caught my attention was the “Halo Effect”. Today, I would like to share an example of another product that successfully used this effect as a strength in their marketing strategy and another brand that suffered to penetrate in a new market due to the company’s country of origin. Let’s analyze these two examples in the car industry in Brazil.

Before I jump in the Brazilian car industry, I would like to make sure that everyone understands the Halo effect. According to Wikipedia: “The halo effect is a form of cognitive bias in which the brain allows specific positive traits to positively influence the overall evaluation of the person, idea, or object in the halo. The halo effect can also be explained as the behavior (usually unconscious) of using evaluations based on things unrelated, to make judgments about something or someone.”

In 2017, the top car brands in term of sales in Brazil were: 1. Chevrolet (American), 2. Fiat (Italian), 3. Volkswagen (German), 4. Hyundai (South Korean), 5. Ford (American), 6. Toyota (Japanese), 7. Renault (French), 8.Honda (Japanese), 9. Jeep (American) and 10. Nissan (Japanese). (Source: http://www.infomoney.com.br/minhas-financas/carros/noticia/6933693/marcas-carros-mais-vendidas-brasil-2017)

Well, we have 3 Japanese companies in the Brazilian top 10 Brands!

Toyota and Honda have been in the Brazilian market for a while, both associated with high quality and expensive cars. Nissan was the last one to penetrate the market and successfully used the following slogan: “now everyone can have a Japanese car”. All their advertisements used this concept and their cars were more affordable compared to Toyota and Honda. As you can see, their strategy helped them to be in top 10 car brands.

The Japanese cars in Brazil are associated with high quality. When I was choosing my car back home, I was in doubt between a Nissan and a Renault car. The advice I got from my friends was the following: ”A Japanese car is a Japanese car, will never break…” I ended up buying a Nissan and was really happy with my decision! It never broke for the past 5 years I have owned it!

This is an example of Nissan’s Ad, with the phrase: “The Nissan Versa arrived. Now everyone can have a Japanese Sedan.”  

Now, I want to share another car brand that tried to penetrate the Brazilian market in 2010, however that was not really successful… JAC Motors, a Chinese Brand. Their approach was to hire a big TV show presenter to advertise their car, the J3. Although the brand name had no association with China, the information about the origin of the state-owned automobile and commercial vehicle manufacturer JAC Motors spread out. A lot of associations with bad quality were made just because the Brand was Chinese. Today, they are still in Brazil, but we don’t see a lot of JAC Motors cars around.  

This is an example of JAC Motors’ Ad, with Faustão, a Brazilian famous TV show presenter. He has his own TV show every Sunday at Rede Globo.

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You can be the Top 1, you can have the highest advertisement budget, but if you don’t have the right branding strategy…

... You are definitely vulnerable to your competitors. They don’t need to have a better product, or a higher budget, they just need to better understand the customers and implement the right branding strategy.

While I was reading the Corona case, it reminded me of a beer advertisement in Brazil, the country that I am from and which I am more familiar with the advertisement world. The Skol’s strategy had to change throughout time because as Heineken, they were focusing on the product’s quality. The adds I am posting tonight are in Portuguese, but images for itself help us to understand the context in any other part of the world.

1997 – Theme “A cerveja que desce Redondo” or “The beer that goes down in circles”

This first add was showed on TV, and apparently it was too theoretical and the consumers could not understand the good feelings that drinking a beer that “goes down in circles” could provide them with.

 https://www.youtube.com/watch?v=Ut-otbl_YGI&feature=share 

2001 – Theme “The beer that goes down in circle” but now introducing a short narrative of a pleasure moment drinking the beer, even though an imaginary moment. Note that the advertisement still makes reference to circles in many different aspects, while the mermaid flirts with the swimmer for example. That commercial definitely seems like a progress to me, but still hard for the consumer to get the message.

https://youtu.be/UDqUMNw0Xgw 

2012 – Theme “The beer that goes down in circle” – yes, this is the main theme until today and every Brazilian associate this to Skol. For me, this is the best version of the theme. They associate the round aspect with the Brand, calling the beer as “Skol 360”, and they associate the brand with the summer sensation, the relaxed lifestyle of Rio de Janeiro, and the part that I like the most, they are sharing part of their profits to help in the conservation of Rio's beaches, in my interpretation a smart message to say that you can experiencing these good feelings drinking Skol, and that Skol will help to keep this opportunity of pleasure in the future, so just keep drinking Skol.  

https://youtu.be/hoKxg-IBWB8