Although the saying goes that “second parts were never good,” for SMG Branding there is no better omen than work.
This private enterprise dedicated to strategic branding launched, at the beginning of 2023, the adventure of organizing the first Private Well-Known Brands Ranking in Havana. It did so following the criteria of consumers, based on the study of a representative and scientifically based sample of the Havana population.
And, despite the complexity and costs of the endeavor, less than a year later it has returned to the fray.
The initiative, which in its initial edition focused on fashion, cosmetics, and restaurants ― and recognized Clandestina, D’Brujas, and El Biky as the top of mind in these sectors ― was very well received by the Havana private sector and generated great expectations, with a view to possible editions dedicated to other activities.
This is why, although there was no lack of criticism and suspicion, SMG decided to take on the challenge again. And it did so with the conviction that the ranking is not a mere whim or advertising ploy, but rather a platform for recognition and visibility for private brands and, at the same time, a very useful tool for their development.
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About this new edition, its objectives, characteristics and peculiarities, OnCuba spoke with Suselmis Martín Guilarte, executive director of SMG Branding.
What sectors are studied in this second edition of the ranking and why?
This time we decided on bars, accessories, and e-commerce platforms.
In the case of bars, we did it because, although in the first edition, we tested the restaurant sector, which includes them, once we finished the research we realized that the market associated that category more with restaurants and cafes, and not so much with the bars.
However, we know that in this segment there are also well-known brands, businesses that have had important work and consumer recognition for years, and others that may be newer, but that have also gained relevance. That’s why we thought it pertinent to dedicate a separate category to it on this occasion.
In the case of accessories, something similar happens, because in the first edition of the ranking we tested fashion, and its perfect complement is accessories. In this sector we include handbags, costume jewelry, earrings; that is, all the elements that complement and close the outfit.
This is a sector in which there are many brands, both brands from many years ago and other very recent ones, and we feel that this has happened with it as has also happened with cosmetics, which has evolved very quickly, especially since COVID. Many accessory brands emerged based on the pandemic, and today they are on the market, with consumer recognition. That was the reason we chose them.
Finally, the third category is e-commerce platforms, which were the most complicated to select. We know that there are other sectors where there are very recognized brands, but in many cases, they work for more corporate, more limited audiences, and one of our selection criteria is that they are mass consumption brands, at least in Havana, which is where the study was carried out.
We know that a part of the Havana population buys or receives products of different types, whether food, toiletries, equipment, from these online sales websites. And another segment of the population, perhaps does not enter them, or cannot buy through them, but knows them, sees them because they receive products from a neighbor, a family member, they see the cars on the street, that is to say, they know the brands, and in the end, what is well-known is not necessarily associated with consumption, but with brand recognition.
It is important to remember that in the ranking we are looking for the top of mind. That is, what is that brand that is in the mind of the consumer, in this case the Havana consumer, when asked about private brands in a specific sector.
How was the study conceived to determine the results? What similarities and differences does it have concerning the one made for the first edition?
The study has been carried out in all the municipalities of Havana, led by the PieDerecho team of researchers, who were already in charge of it in the first edition. A research sheet was created and the same methodology that was used to prepare the first ranking has been followed. What has changed are the sectors and also that it has been fieldwork.
In the first edition, the study was carried out mainly through WhatsApp and social media, in groups that people accessed and responded to, and then it was followed by field surveys to complete the planned sample, according to the number of scientifically determined people by sex and age group.
In this edition, however, we are delving into the field, and it is being matched with the online sample. That is, the other way around, and it has been a richer process because the field interaction is very interesting. Furthermore, it is very useful for us because we take advantage of it to obtain other information, which helps us understand how brands work in the markets, how they are being perceived in each segment.
Then, when we have completed all the surveys, we will follow the same criteria as the previous time to order the ranking. That is, points will be given following the place in which the brands were referred by each respondent and then, according to the points achieved, they will be ordered hierarchically. Furthermore, as in the first edition, the ranking of each sector will be compiled with the ten brands that received the most points, led by the most notable, the top of mind.
Is there already a conceived sample that is being worked on or can anyone, if they wish, participate in the study and express their opinion?
As I told you, the same methodology as the previous time was followed, and this is also the case with the sample. Before starting the study, the sheet was created and the sample to be studied was determined, following non-probabilistic sampling by quotas proportional to the universe. That is, there is no sample conceived with names and surnames; what there is is a number, which in this case is 385 people as in the first edition, distributed by sex, that is, men and women, and by age group.
Following this guideline, which has been calculated based on statistical criteria with a sample confidence level of 95%, we see how many people we have to survey in each of the municipalities of Havana, based on the figures determined for each sex and age group. What has been sought is to test, mainly in the field, people who match the criteria on the sheet. We are currently working on that.
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So, to answer the other part of the question, it is not that people who want can participate voluntarily, or send us their answer through social media or by email. People only get a chance if they agree with the researchers when the surveys are being done in the field. That’s how it works.
We thought at some point about putting a public link so that people could write to us directly, but then we feared that, with the expectation created with the first ranking, that could lend itself to someone trying to influence the participation, and we decided not to do it. With the first edition, we kind of took the market by surprise, and everything went smoothly, but with this second edition it is different, there is an expectation, and as researchers, we feel a greater responsibility.
In fact, although after that first time, we were left with the idea of doing a second edition with other sectors, we have also had a bit of pressure from the market, from the brands themselves, that have asked us, and kept asking us for that, and for which sectors we would include. And we appreciate that, because as an enterprise we are motivated by that interest, but it also made us more aware of the responsibility we assume. Therefore, although we do not know if anyone could try to influence the results, we decided to go directly into the field to minimize the risks.
When should the results of this second edition of the ranking be known and what new features have been planned for its presentation?
The results will be announced on January 20 in a private presentation that we will hold at the Royalton Paseo del Prado Hotel, which was where the previous presentation was made. But, unlike that time, we have chosen a larger location and we are going to leave some quotas open so that people who want to participate by paying their entrance fee can do so. We will be giving details about this at the beginning of January so that you can contact us and make your pre-reservation. There will be limited quotas, but there will be the possibility for those who are interested.
It is something that was pending from the last edition because there were people who wrote to us asking how they could participate, even if they did not have brands participating. After all, the event is not just about making the ranking known. There is also networking with owners of recognized brands. In addition, entities related to the world of communication and brands, as well as diplomatic personnel from embassies with favorable policies towards the private sector, are invited.
So the event can also be a space for new relationships and productive exchanges that help make the brands grow, not only for the winners but for all the participants and guests, following a practice and interest that we have at SMG.
At this point we would like to highlight the support of the sponsors we have for this second edition of the ranking because doing a study like this entails expenses and the presentation event is also expensive.
That is why we are very grateful to our sponsors, such as Womy Equipment, which is a client of our enterprise that opted to accompany us throughout this process, and to whom we are very grateful for their support and accompaniment, as we do with the other sponsors, with those that we already have and those that we invite to continue adding.
A year after the first edition, and based on the reactions and results derived from it, why go back to an exercise like this?
I think that the first ranking validated something that we already perceived in practice: the importance of brand management; that what is invested in communication, promotion, in advertising, is not in vain, because that contributes significantly to their positioning. Of course, in brand management, you also have to do other things, such as validating them with their performance, with the quality of their services or products, but the work of making themselves known among consumers is essential.
I think that the first ranking allowed us to highlight that, at least in the context of the Cuban, Havana private sector, because the brands of the sectors studied had the possibility of seeing themselves reflected there, in a ranking that has serious, scientific research behind it, in which the consumer, their criteria and perceptions had been monitored. And that these brands know, based on that study, that they were in the consumers’ mind, we felt that it was important for them.
That is the feedback we have received since the presentation of the first ranking here. This is what many business owners have told us, at events where we have met or even directly. For them it was important to check their level of impact on consumers, to know in which communities or population sectors they had or did not have that impact, and to know how consumers perceived them. This helped brands make decisions in their business model and was also a source of recognition.
I think that the first ranking served as encouragement for the brands to start a 2023 that has been tough, and to say: “Hey, it’s worth it, we’re going to continue here.”
We are also satisfied because we continue to pay attention to the market, that from that networking at the first ranking event new connections emerged, and projects between the brands emerged, and we as SMG are very happy that this has happened. We feel that we put information and a product at the service of the brands and it is something that as an enterprise we like and are interested in doing because we want to continue contributing to the brands of the Cuban market and the development of the private sector. We are doing this second ranking with that commitment, with that dedication.
What other benefits would you highlight for brands that are recognized by consumers for being notable?
Look, from a commercial point of view we always recommend business owners to register their trademarks, but if they have not done so, having a well-known brand helps them when registering. Sometimes there are businesses with brands that are several years old and, however, they have not been registered, and if a ranking is later prepared, and those brands are there, they are recognized as well-known by the consumer, as a result of research, then that works as a guarantee when registering. It is a plus for those brands that are in the ranking and considered well-known in the sectors studied to be supported when registering if they have not done so.
In that sense, I have to say that we as SMG would like to be able to establish some type of relationship with the Patent Rights Office (OPSI) and put this ranking information at its service. That the information generated from the study could be used for its work would be a great satisfaction for us.
On the other hand, I think the ranking also helps brands in their negotiations because now those brands need to grow. In other words, Cuban business brands and private ventures should advance, consolidate, strengthen themselves in the market, and that, to achieve it, has to go through a process of investment, and capitalization, and many times these entrepreneurs, these small enterprises do not have those strong capitals. So, they need to negotiate, either with the bank, or with investors, and in a negotiation knowing that you are presenting yourself with a well-known brand, with a strong brand, is a strength, an advantage, in that negotiation.
If your brand is well-known, if it has that recognition, better conditions and commitments from investors can be achieved when negotiating. Because what is being put on the table is a well-known brand, a notable brand, a brand endorsed by a segment of consumers, in which it is worth investing, and that is a card in its favor.
From a practical point of view, I think that is the most important thing that we are providing to private businesses with the development of the ranking: giving them a tool so that they can see that their brands are being solid.
That is something that we seek to promote at SMG because that is our job. SMG is in charge of managing brands, and we always insist that if brands are strong for their consumers, that helps them grow, stay longer in the market, achieve better sales. In this, being well-known is essential.
Of course, they have to continue working, but being well-known is a very important value because it means endorsement by consumers. If a brand has already achieved this, it then has an indisputable advantage in the market over its competing brands. Because it is important to be on the store shelves, but also in the consumers’ minds.
