Warren Marenco Chase BSCL MBA Thesis FINAL

Master’s Thesis
Dancing Macaw, Waking Dragon:
Tensions Arise In The Next Global Creative Order.
Opportunities and Challenges for Brazil and China’s
Advertising Community.
Warren Marenco Chase

Master’s Thesis
Dancing Macaw, Waking Dragon:
Tensions Arise In The Next Global Creative Order.
Opportunities and Challenges for Brazil and China’s
Advertising Community.
Master of Business Administration
Creative Leadership
Class of 2010-2012
1. Supervising Tutor: Prof. Dr. Shamus Khan
2. Supervising Tutor: Prof. Dr. David Slocum
Editing Time from: January, 2011
until: June 2012

Statement of Authorship:
This dissertation is the result of my own work. Material from the published or un-
published work of others, which is referred to in the dissertation, is credited to the
author in the text.

Dancing Macaw, Waking Dragon: The Next Global Creative Order Warren Marenco
IV
Table of Contents
List of Illustrations ..............................................................................................v
List of Tables .....................................................................................................vii
1. Introduction.....................................................................................................1
2. Background.....................................................................................................2
3. Hypothesis ....................................................................................................33
4. Observations that led to the Hypothesis....................................................34
5. Research .......................................................................................................38
5.1 Personal Interviews....................................................................................40
5.2 Global brands navigating successfully in emerging markets................65
5.3 Emerging market brands with global appeal ...........................................71
5.4 Cannes Lions creative community ...........................................................75
6. Findings.........................................................................................................77
6.1 Parallels.......................................................................................................79
7. Conclusions ..................................................................................................81
8. Recommendations .......................................................................................82
9. A final word ...................................................................................................84
10. Bibliography................................................................................................85
11. Internet Sources .........................................................................................86
Apendix 1. Interview Subject Biographies .....................................................88
Apendix 2. Interview Questionnaires............................................................114

V
List of Illustrations
Page
Ill. 1 Welcome to a future built in BRIC’s. Source: The Tele-
graph online
2
Ill. 2 Three Scenarios for China’s Long-Term Future. Source:
Global Economic Forum
15
Ill. 3 Main Players of Social Media China. Source: DDB China 18
Ill. 4 China Overtakes Germany in Luxury Car Sales. Source:
Bloomberg
19
Ill. 5 Shanghai Fast Food Restaurant Picture. Source: André
Kassu
20
Ill. 6 Made Better in China. Source: Business Insider June
2012 Trend Briefing.
20
Ill. 7 China’s Creativity Index. Source: China Data Center. 21
Ill. 8 In The Land of 1.5 Billion. Source: Ad Age China Article 24
Ill. 9 W+K Hires Talent Scout. Source: Campaign Brief Asia 25
Ill. 10 Samsonite ¨Heaven and Hell¨Ad. Source: JWT Shanghai 25
Ill. 11 Coca Cola ¨Hands¨Ad. Source: Ogilvy Shanghai. Jo-
nathan Mak receives Grand Prix at Cannes Lions 2012.
Source: Warren Marenco
26
Ill. 12 Jonathan Mak. Source: Wikipedia 27
Ill. 13 Ted Ex Shanghai Picture. Source: Warren Marenco 27
Ill. 14 Jordy Fu. Source: Wikipedia 28
Ill. 15 3 I’s Model. Source: Warren Marenco 31
Ill. 16 Johnnie Walker Keep Walking Brazi Ad. Source: Youtube 41
Ill. 17 Beijing bans ads for luxury goods . Source: Article on The
Telegraph
56

VI
Ill. 18 Irritable and Cranky – Hunger Traits. Source: BBDO 65
Ill. 19 Phisically Weak and Pathetic – Hunger Traits. Source:
BBDO
66
Ill. 20 Angry, Bad Tempered and Mean – Hunger Traits. Source:
BBDO
66
Ill. 21 Scene from Snickers China Ad. Source: BBDO 67
Ill. 22 Volkswagen The People’s Car Online Ad. Source: Proxi-
mity BBDO
68
Ill. 23 The Music Car. Source: BBDO Proximity 69
Ill. 24 The Hover Car. Source: BBDO Proximity 69
Ill. 25 The Smart Key. Source: BBDO Proximity 70
Ill. 26 Havaianas Print Ad. Source: Almap BBDO Brazil 71
Ill. 27 Havaianas Magazine Ad. Source: Almap BBDO Brazil 72
Ill. 28 Lenovo Print Ad. Source: lenovo.com 73
Ill. 29 Cannes Creative Leaders Picture. Source: Warren Ma-
renco
75
Ill. 30 MAD Travel Fellowship Logo. Source: i-mad.com 79
Ill. 31 MAD Travel Fellowship Students. Source: i-mad.com 80
Ill. 32 Global Creative Immersion Program Logo. Source: War-
ren Marenco
82
Ill. 33 Global Creative Immersion Program Site Visits. Source:
Warren Marenco
83

VII
List of Tables
Page
Tab. 1: GDP Growth Predictions Table. Source: Goldman Sachs 3
Tab. 2: GDP Growth Development in the last 200 years. Source:
INSEAD
4
Tab. 3: Best Global Brands Report 2011. Interbrand 5
Tab. 4: Brandz Top 200 Most Valuable Global Brands 2012.
WPP.
6
Tab. 5: GDP Growth Position. Source: The Economist 10
Tab. 6: The World in 2050. Source: GS Projections 16
Tab. 7: Cannes Lions Presentations Proposals. Source: Cannes
Lions Festival.
22
Tab. 8: Top Country Awards. Source: The Gunn Report 2011. 23

VIII
“Global creative leadership is about just that - leadership, not direction.
You lead by example”.
Andrew Robertson - CEO BBDO Worldwide.

IX

1
1. Introduction
In advertising, global creative domination has been, for the past 100 years at
least, in the hands of the United States of America or Europe.
And it made sense since most global brands are American or European.
However the world is changing. Global economic domination has been shifting
and a new world economic order is unveiling. Brazil, Russia, India and China,
the “BRIC” nations as they are known, are expected to lead the global economy
in the next ten to twenty years.
How will this translate to the advertising world? As global brands look for growth
in these markets, how will this affect their global communications message? Will
emerging markets become more western? Will western brands become more
eastern? What will global ideas look like? And in this context, will emerging
market agencies have a more active role in global creative development?
But most importantly, are creative agencies in BRIC nations prepared? Can the
reverse innovation idea apply also for creative development?
Reverse Innovation: A term referring to an innovation seen first, or likely
to be used first, in the developing world before spreading to the industrial-
ized world.
For both personal and logistical reasons the focus of my work is with Brazil and
China, and what each nation can learn from each other to be creatively relevant
in this new world order.

2
2. Background
BRIC nations and the economic prospects for the next decade.
In 2001, Jim O’Neil wrote a research paper in Goldman Sachs's Global Econom-
ics series that examined the relationship between the world's leading economies
and some of the larger emerging market economies.
He thought the global economy in the coming decades would be propelled by the
growth of four highly populated and economically ambitious countries: Brazil,
Russia, India and China, and coined the acronym BRIC from their initials to de-
scribe them.
Illustration 01
BRIC nations article on The Telegraph online telegraph.co.uk

3
Over 10 years have passed since 2001 and we are definitely seeing the effects of
Mr. O’Neil’s prediction as we start to see more and more how Brazil, Russia, In-
dia and China start to have a more active role in the global economy.
According to Goldman Sachs in The Economist’s article of 2011 “America Sur-
renders To China”, by 2027 China will overtake the US as the first global econo-
my first of all in manufacturing. Some years after that, in 2033 The Economist
predicts that together BRIC nations will overtake the G7.
Table 01
Goldman Sachs GDP Growth Predictions. Source: The Economist

4
It also shows the share of the world’s GDP development for the last 200 years
and the next 15
Table 02
GDP Growth Development in the last 200 years. Source: INSEAD / Viramini
1970 was the peak of the western economical domination. After this it has lost its
position and it's expected to surrender economical power again to China. Diver-
gence peaks in 2012.
The US and European centric “global brand and communications market”
Ever since the beginning of the twentieth century global advertising has been
spearheaded by US and European brands. You can very easily say that most

5
global brands are American or European; at least the most valued ones, at least
until recent years.
According to Interbrand’s Best Global Brands report for 2011, the first 10 most
valued brands in the world are actually American. The first non-American brand
on the list is Toyota at #11 closely followed by Mercedes Benz from Germany at
#12. This is the scenario that most in the industry are accustomed to.
Table 03
Best Global Brands Report 2011. Source: Interbrand.

6
However, in their recently released 2012 report, BrandZ presents a slightly differ-
ent picture, where we see the first Chinese brand on the top 10 most valuable
brands: China Mobile
Table 04
Brand Z, Top 100 Most Valuable Global Brands 2012 Report. Source WPP.
BrandZ 2012 study reveals many interesting things about global brands and the
constant evolution of their positioning strategies. This past year has been partic-
ularly interesting in this regard as social media plays an ever stronger role in the
way consumers manifest their love or hate towards brands.
BrandZ presents a summary of the findings of the study, shedding some interest-
ing light on what makes a brand a global powerhouse these days. A whole chap-
ter devoted to BRIC nations is part of the report.
1. Value. Brands that have combined quality with price to achieve a rele-
vant balance have proven to be successful. That is the case of Zara,
Uniqlo and Home Depot.

7
2. Renewal. Brand strength is no guarantee that consumers will always re-
act positively to your brand. Consumer’s tastes change and brands need
to be able to renew their appeal to stay relevant. Case in point Starbucks
and Toyota.
3. Relevance. Brand heritage is good to build brand value and earned trust,
however to be considered today by consumers brands need to be rele-
vant today. Burberry is a good brand to look at when it comes to staying
relevant with contemporary products and communication.
4. Reputation. Consumers have little patience with brands that break their
trust. Social media has been instrumental in allowing this to amplify at
levels that keep brands on their toes. Brand champions like Facebook,
Google or even Apple have been under the consumer’s magnifying glass.
5. Reimagine. In the past strong distribution was enough to secure a good
place in the retail market. Today consumers are shopping with mobile
devices comparing prices looking for the best deal. Brands like Tesco in
South Korea have reimagined themselves and positioned their value
message in places where you would never think of conducting purchases.
6. Brand Contribution. High brand contribution is an enduring competitive
strength. However usually related to luxury brands, in this report Coca
Cola, and two Chilean retailers, Falabella and Sodimac ranked high sug-
gesting this advantage is available to brands in every category.
7. Personality. There is no formula for guaranteed success solely by brand
personality. Brands in the same category but with very different personal-
ities can both succeed. The key is recognizing the personality traits and
building them into a relevant communications message. Brazil’s Brahma
proves to be successful by ranking high on brand contribution based on
its friendly and happy personality.

8
8. Harder BRICs. Western brands are losing their novelty status in the top
emerging global markets. Local brands are starting to win over consum-
ers by improving on their functional and emotional appeal. Russian bank
Sberbank was one of the top risers in brand value on the report.
9. Disruption. An entrepreneur with a good idea and minimal investment
can make a big impact in a category or business. Today, a telecom or re-
tailer can easily become a successful bank. Amazon is a big example of
how an online retailer evolves its business with distribution presence on
the physical world.
10. Technology. In almost every category, regardless of the level of sophis-
tication of the consumer, technology is at the center of the conversation.
For example in the cars category, brand value is being raised more on the
technological features that come in a car than the horsepower under the
hood. BMW and Ford are dominating the conversation.
11. Digital. Today, the power of digital only seems to be limited to the crea-
tivity of the thinkers and the dreamers. Digital provides brands intimate
access to consumers to inform and entertain like never before through an
even more diverse number of screens, being these mobile devices, inter-
active billboards, or standing in a store isle. Digital works across any cat-
egory, like the work from Luis Vuitton on “Digital Discoveries”.
12. Health and Wellness. The impact of health and wellness has been felt
strongly on sales declines of soft drinks and the growing presence of sal-
ads in fast food restaurants. The trend to continue eating things that are
bad for us will not go away soon but will do it less and less. Coke and
Pepsi are not alone.
13. Entitlement. After tightening their belts for a while consumers are feeling
entitled again and spending in luxury items more to feel good about them-
selves than to impress others. This is happening in every price point from
Hermès to Clinique.

9
In a way, this report gives global brands a kind of “rules of the game” in terms of
global brand value going forward and emerging markets are definitely relevant
players in the game, not just as markets that represent business growth but as
markets that in the near future will influence consumer behavior outside their
borders.
In other words, in going global in the coming years, the rules of the West will not
guarantee success anymore.

10
The Emerging Giants:
Brazil:
First on the BRIC acronym, Brazil is one of the most promising economies on the
globe. With a vast land extension and strategic location, it represents huge ad-
vancements not only in raw material production but also high value services.
For decades the joke has been that Brazil is the country of the future and always
will be. Despite its enormous natural resources it has long displayed an uncanny
ability to squander its vast potential.
Now it's beginning to look like Brazil might have the last laugh. While most of the
world is consumed with debt and unemployment, Brazil is trying to figure out how
to manage an economic boom. It was the last country to enter the great reces-
sion and the first to leave it. It overtook the UK to become the sixth largest global
economy and it looks like France will be next.
Table 05
GDP Position. Source: The Economist

11
With the World Cup in 2014 in the Olympics on 2016; Brazil is about to make its
grand entrance on the global stage.
Brazil’s economy is growing faster than the US at a rate of 7%. It is the highest
producer of iron in the world and the worlds leading exporter of beef, chicken,
orange juice, sugar, coffee and tobacco; most of it to China who has replaced the
US as it’s leading economic partner.
In recent years, Brazil has seen the resurgence of it’s middle class who now have
higher spending power and are accessing a category of goods long inaccessible
for them: washing machines, flat screen TV’s and automobiles. Recent studies
show that the middle class has reached a total of 40 million people. About 20%
of the countries total population.
But not all of it is good news; given its checkered record of living up to its promise
the rap against Brazil is that it lacks ambition. It is commonly known as “The
Brazilian Way”: "Why do something today that you can pay someone to do tomor-
row"
Brazilians put up with incredibly high taxes on almost everything, have a high tol-
erance for corruption, bureaucratic red tape, and as some locals say harbor a
secret love affair with incompetence.
On the other hand, there is a big issue with quality of education. Even though
Brazil has a very high level of talent in the creative industry, still the majority of
the population does not receive adequate education. Even new universities who
are also taping into the new “C” class are offering cheap and quick degrees that
lack the right preparation and are sending out unprepared professionals.
"Brazil has always promised to be the country of the future but China is delivering
on the promise", comment from Maria Ines Murad, fellow Brazilian classmate at
the Berlin School during our Asia Module.

12
China:
Before 1800 China was the largest economy in the world merely because of
sheer size. The whole world was poor but since China had over 100MM people
this fact made it become the largest economy.
During the beginning of the 19th
Century the West and the Industrial revolution
started to change this by implementing a series of policies that improved quality
of life of the workforce and the right environment to do business. These were
primarily:
- Property rights protection
- Work ethics that generated incentives
- Modern medicine, which extended life expectancy
- Scientific progress that raised productivity
However, for the same reason they became a boost for the western economy,
they started to create bureaucracy and raised the cost of operation of many
countries.
What has created growth in China?
"There is nothing in China that does not come with a lot of zeros".
Quote from Professor Hellmut Schutte during our Asia Module.
Growth drivers
1. Labor force input. Related to demographics or people who can actually
work. In China there is no lack of people who can work, especially in manu-
facturing sectors.
2. Investments. Related to having the money and the expected return. If
there is something the Chinese government has done well is make money
and they have lots of it.

13
3. TF Productivity. How smart you are in managing both. Again China has
been very successful in managing both labor force input and investments.
Some say that China is playing the capitalist game very well.
Conditions for growth
1. Macro stability. In China you hear this from everyone. Chinese are all
about stability and chaos is the ultimate evil. Achieving or maintaining
stability is what the Chinese government looks for the most.
2. Openness. This might be the biggest challenge for China. As social lib-
erties and tolerance are all the time questioned and controlled outside in-
vestment and internal growth can be limited.
Potential for continuing high growth of China
Pros
- Examples from East Asia. Indonesia, Thailand, Vietnam are clear examples
of the opportunities that China has in the sense of understanding the global mar-
ket.
- Resources
- Workforce input. Like I’ve said in other chapters, what China has more of is
people and putting them to work is not a problem.
- Investments. Multinationals in the search for growth they’ve been missing
from other mature markets are investing in China.
- Productivity
- Focus on education. China is making a big shift in it’s internal investment
and devoting more money in education of it’s people.
- Government. The regime works and is swift in making the decisions that need
to be made to advance.
Cons
- Public debt
- Unemployment

14
- Inequalities
- Corruption
- Energy shortages
- Environmental segregation
- Institutions
The great achievements of China
China’s economics amaze the world. Lifting 450 million people from poverty in a
short time. They have done it for many years and will continue to look after their
own.
However it’s process puzzles, blending socialism and capitalism. Whoever
thinks that China is the socialist country we all understood the Soviet Union to be
is very mistaken. Since the 80’s China has slowly and steadily ventured in the
capitalist market and will continue to get better at it.
The great challenges of China
Its high performance has a cost, the environment. Little has been done in terms
of conservation and there doesn’t seem to be a clear path going forward. Also its
renaissance creates concern bringing uncertainty and fear of the new global
power among the rest of the nations.
The World Economic Forum presented an interesting chart of what are China’s
options for long-term future growth. This chart expresses the tipping points in
internal and external policy as China faces its next step in global interaction.

15
Illustration 02
Three Scenarios for China’s Long-Term Future. Source: World Economic Forum
This in fact relates a lot the George Friedman’s book “The Next 100 Years”
where he predicts that China will inevitably fragment from within in the next 20
years. The pressure from its citizens for more social and political reforms and the
even more pressure from the West to perform in global markets.
Still, experts predict that by 2050 this will be the shape of the global economy
where China will again be the global economic power. The United States is the
second, just slightly larger than India and Brazil the fourth.

16
Table 06
The World in 2050. Source: GS Projections
The ultimate difference between East and West
One particular aspect separates China from the West, and more specifically to
the “Brazilian Way”; and it is intricate of its culture and people. It is Confucian-
ism. This belief and the intricate relation between Chinese people is deeply em-
bedded in the society and one of the most challenging barriers for growth outside
China.
Confucianism
Morality Virtue
Righteousness Harmony. Sincerity
Relationships Thrift
Ruler - subject. Benevolence
Teacher - student.
Father - son. Respect
Older brother - younger brother
Husband - wife. Loyalty
Friends
“Man is perfectible through continuous effort and continuous education.”
Confucius

17
It is here where I believe the most interesting difference lies between both na-
tions, Brazil and China. The clash between self-indulgence and awareness ver-
sus the greater good. The clash between Catholicism and Confucianism. This is
the ultimate difference between East and West and will continue to create tension
as the new world order arises.
"Asia is not going to be civilized after the methods of the west. There is too much
Asia, and she is too old."
Rudyard Kipling, 1891
China 3.0
A transformation.
During our Berlin School Asia Module, Dick Van Motman, CEO of DDB Greater
China presented the results of a study conducted by his agency focused on a se-
ries of aspects that are transforming China as a nation:
Trust - in the communist party, in the brands, in the industry. Trust is deeply
embedded in Chinese culture and can definitely make or break a brand or ser-
vice. Trust is changing in China and it reflected in the way people manifest their
advocacy for brand on social media. This was also mentioned by Kitty Lun and
Tom Doctoroff in their respective interviews.
Belief – Chinese have strong belief in the system but this is changing rapidly as
people start having more access to money. The study also shows changes in
other beliefs, for example, 31% believe in god and 53% no one is worth worship-
ping.
Voice of the past
Mao - Tiananmen - detention centers. Given government control Chinese people
in the past found their voice through word of mouth, and in a way continues to be
very strong. People would amplify messages, both official and unofficial, and
would rapidly spread them like wildfire.

18
Voice of the present
The way Chinese communicate today is changing dramatically. There are 750
million Internet users. Weibo alone (Chinese version of Twitter) has 300 million
users. The same for other social platforms like Ren Ren, Facebook’s alternative.
Turns out that, for every social media outlet in the West, China has it’s own ver-
sion and some people actually agree that they are much better interfaces.
Here is a chart of the existing social media channels in China:
Illustration 03
Main Players of China Social Media. Source: DDB China
Shopper
15 years ago the status symbols in China were a bike, a watch, a sewing ma-
chine and a radio. Today there are 190MM online shoppers spending 6 Trillion
RMD in online sales.
But this dramatic change is not only showing in the online market, it also shows
in the consumer goods market. Just recently, Bloomberg reported that China
overtook Germany as a market for luxury cars, something that has surprised eve-
ryone.

19
Illustration 04
Source: Bloomberg Article, December 23.2011
Identity
Chinese identity has changed dramatically in the past few years, coming from
that image of Mao’s grey uniforms where everybody was supposed to look the
same, to the present day where Chinese are discovering various forms of self-
expression.
Creator
China as a nation is starting to move away from copying and more into the crea-
tion era. There are many examples of things going on today that support this
claim.

20
Before
Illustration 05
Shanghai picture. Source: André Kassu.
After
Illustration 06
Made Better in China. Source: Business Insider June 2012 Trend Briefing.

21
One very interesting aspect about the Chinese creative community is the post
80s one-child-policy children who are now reaching 30 and are becoming the
change of China. These people are very well prepared educationally and today
represent the future of Chinese economy going forward. They are the new crea-
tive class of China and they are coming from the big cities.
Illustration 07
China’s Creativity Index. Source: China Data Center.
So where does all this take us? How are Brazil and China performing in the ad-
vertising industry and how will this change in the next few years?

22
Brazil and China’s creative performance.
Of the four nations that make up the BRIC group, Brazil and China hold a particu-
lar interest in my thesis work. Mostly because, of the four, these two have been
on the eye of the industry in more recent years. Brazil for its enviable perfor-
mance at creative awards festivals and China for the market opportunity it repre-
sents.
Brazil has been a continuous powerhouse player at the advertising awards arena
in the past few years. In Cannes 2011 alone, Brazil was the second country with
the most entries to the festival.
Table 07
Cannes Lions 2011 Presentation Proposals. Source: Cannes Lions Festival
In Cannes 2011 Brazilian agencies took home more awards than any other BRIC
nation combined.
And according to the GUNN Report of 2011 Brazil won more creative accolades
across all major creative award festivals in the world.

23
Table 08
Top Awarded Countries at Creative Festivals. The GUNN Report 2011.
Now, when the conversation turns to talent and which country has most of it, it is
clear that China is at a great disadvantage against Brazil.
All the big network agencies know it, and they are starting to do something about
it and the reason behind it is because of the global brands that they service.
Due to the poor performance of developed markets in the past few years clients
want to get their growth from emerging markets and they understand that China
represents growth and they want to make sure their agency networks appoint the
best talent they have to their business.

24
The next article from Ad Age China tells the story very clearly.
Illustration 08
In The Land of 1.5 Billion, Not Enough Skilled Advertising Talent. Ad Age China Article.
This other article also shows this fact as more and more agencies redouble ef-
forts to increase their talent pool in China.

25
Illustration 09
W+K Shanghai Appoint Creative Talent Scout. Campaign Brief Asia
The topic of the lack of talent in China was widely discussed during my interviews
as there continue to be great contradictions.
One big milestone happened however in 2011 when, for the first time ever at the
Cannes Lions Festival, a Chinese agency wins a Grand Prix for its work for Sam-
sonite “Heaven and Hell”. That agency was JWT Shanghai.
Illustration 10
Samsonite ¨Heaven and Hell¨Ad. Source: JWT Shanghai

26
Also in 2011 Cannes Lions Festival a Brazilian agency is named agency of the
year for the second year in a row. That is Almap BBDO. An agency that has
proven again and again its global creative caliber.
For the Cannes Lions 2012 Festival the amount of advertising pieces submitted
by Brazil continue to be much higher than China. Brazil submitted a total of 3419
maintaining the position of 2nd
country with the most submissions and China
submitted 571. However China’s submissions grew over 40% versus 2011 and
Brazil’s grew 7%. This clearly indicates that Brazil’s market is saturated as op-
posed to China’s where we still cannot foresee how big it will become.
China’s performance at the Cannes Lions Festival in 2012 continues to surprise
as agencies in China win more metal than before and another Chinese agency
wins a second Grand Prix, this time in Outdoor. The agency is Ogilvy Shanghai.
The piece for Coca Cola received the accolade from the hands of Lo Sheung Yan
who, last year won the Grand Prix for Samsonite.
Illustration 11
Coca Cola ¨Hands¨Ad. Source¨ Ogilvy Shanghai. Jonathan Mak receives Grand Prix from
Lo Sheung Yan at Cannes Lions 2012. Source: Warren Marenco

27
However, the most revealing aspect of this award is the fact that the designer
who came up with the idea is an 18 year old Chinese named Jonathan Mak,
same designer from the now world famous Apple tribute design to Steve Jobs.
Jonathan is not an employee of Ogilvy and was commissioned by Ogilvy to do
the campaign for Coca Cola.
Illustration 12
Jonathan Mak. Source: Wikipedia.
Illustration 13. TedEx Picture.
Source: Warren Marenco
Just recently the TedEx Shanghai hosted an event
in late May 2012 which I had the opportunity to at-
tend called “I am Chinese” and invited speakers to
talk about their experiences in what makes TED a
global phenomenon (Technology, Entertainment,
Design).
At this particular event, a young fashion designer /
architect / events designer presented her work. Her
name is Jorgy Fu, an original Shanghainese 22-
year-old girl educated in London.

28
Her work transcends space and lines is what proves to be a futuristic approach to
conventional thinking related to fashion design, furniture, accessories and build-
ings.
Illustration 14
Jordy Fu. Source: Wiikipedia.
Is this a trend going forward in China? Are these examples of young creative tal-
ents that are making a difference and taking the rest of the world by surprise?
Given this trend, an integral part of my research work, following the hypothesis,
focuses on the opinions of creative leaders in both nations and where they see
the industry going.
I see a very strong creative player in Brazil but also a China that is learning fast
with a millennial generation far more educated, inspired and hungry.
Can we measure their potential just by how large their creative class is today?

29
The Creative Class as the source for economical development.
“Human Creativity Is The Ultimate Economic Resource”.
Richard Florida.
Richard Florida first introduced us with the concept of the Creative Class in 2003
with his book “The Rise Of The Creative Class” in which he suggests that eco-
nomical growth has greater potential in cities or countries where the creative
class is larger or has more potential to grow.
The book argues that where you are is the key economic and social organization
unit of our time. Where you are solves the chicken-or-the-egg problem, matching
people to jobs and jobs to people.
No wonder the famous phrase “Location, location, location” is so eloquent at re-
ferring to business success.
However, Florida suggests a model for economic development. The 3T Test and
cities or countries are rated base on these factors.
1. Technology
2. Talent
3. Tolerance
Allow me to elaborate on each:
Technology. Measured no just by technological production or capacity but also
by access to it. Technology is today one if not the most important business tool
to access the global market.

30
Talent. Not “human capital” as usually measured (by number of people holding
higher education credentials) but creative capital, which is talent measured func-
tionally, by the number of people actually working in creative occupations.
Tolerance. Places that are open and tolerant have the edge in attracting differ-
ent kinds of people and generating new ideas. The tolerance index is based on
four measures: The Gay Index, The Bohemian Index, The Melting Pot Index (the
concentration of foreign-born people) and a measure of racial integration, used to
capture how integrated rather than separate a community is throughout its inter-
nal geography.
Places that score high on this Tolerance Index - places where gays, immigrants
and bohemians all feel at home and where racial groups tend to live mixed to-
gether, not in distinct enclaves - are very likely to have a culture of tolerance.
This concept is explored in more depth in another book by Florida called “Who’s
Your City” where it shows that the city where you live is the single most important
decision for your creative career.
According to Florida’s 3 T’s Model Brazil would definitely score higher than Chi-
na, especially in Tolerance. Actually China would score among the lowest in
this factor. However, this exercise would paint a picture of where they stand now
and not necessarily of where they want to be.
So we need a new model to measure possibility within the advertising creative
industry of emerging markets but through the lens of reverse innovation.

31
“Where there’s a will there’s a way” – A new model to measure creative
possibility.
In one of my conversations with global marketing expert Angela Willmott, Global
Brand Director for Snickers®, one of the most successful chocolate brands from
MARS, who in turn was just recognized as Advertiser of the Year in Cannes Li-
ons 2012, I came up with my own “model” inspired by Richard Florida’s 3 T’s
model but one that more closely resembles the advertising world and the route I
decided to navigate with my thesis.
It is the 3 I’s model:
1. Intellect
2. Inspiration
3. Intent
Illustration 15. 3 I’s Model. Warren Marenco.
Like Florida’s model, Intellect in
my model relates to Talent but
goes deeper in the search for
smart, inventive people who put
their knowledge to creative use.
Inspiration is more related to the surrounding landscape, which presents the right
sources to promote creation. In the advertising world inspiration is definitely the
most important fuel for the creation of impactful and relevant ideas. Having the
capacity to inspire creation is also very close related to Tolerance as showed in
Florida’s model. In essence Talent and Tolerance in Florida’s model, relate to
Intellect and Inspiration in my model.
The only new concept in this equation, which is never mentioned or identified in
Florida’s 3T’s model is Intent, the willingness to do or accomplish something.

32
The only really different driver in the creative equation is Intent, since it clearly
doesn’t matter how intelligent and inspired a country or people are, if there is no
intent to actually act upon it, it might as well be a complete waste. Intent could
potentially be the ultimate separation between China and Brazil in their search for
global creative relevance.
This concept is further explored during my interviews with top global creative
leaders as well as creative leaders in both Brazil and China.
So in understanding the opportunities for Brazil and China to become global
creative players you need to first ask: Who wants it more?

33
3. The Hypothesis
Of the 3 I’s Model, Intellect and Inspiration are key factors in order to provide the
basis for a thriving creative industry in both Brazil and China, however Intent is
the decisive factor in order to achieve long-term success outside it’s borders.
My hypothesis is that China has the best opportunity to become a global creative
player in the next 10 to 20 years based on their Intent to accomplish success.

34
4. Assumptions that led to the hypothesis
The following are general observations and ideas that I have gathered from the
conversations with leading people from the industry and study of both Brazil and
China. I believe they could bring about important lessons for each other in terms
of achieving global creative relevance.
One:
Brazil has more creative talent than China
You don’t need to spend too much time researching on global creative awards to
find out that Brazil has accomplished far more number of creative accolades
globally than China. Brazil has been playing the creative game for far more time
than China so they definitely have a lead there.
Two:
Brazil has a higher percentage of people working in the creative industry
than China
Brazil has 1.7% of its population working on the creative industry. China has less
than 0.3%. This ultimately has a big effect on the quality of workers in the indus-
try. However China’s number can only grow.
Three:
Brazil is more interested in Brazil
It has been in the past and it will continue to be in the future. Brazil is all about
the Brazil and holds no interest in global domination.

35
Four:
China has the oldest creative tradition of humankind.
Come to think of it everything was invented in China: The printing press, fire-
works, pasta. It is in China’s nature to innovate and create. Why would 60 years
of communist regime do away with thousands of years of creative innovation?
Five:
China’s advertising creative industry is led mostly by American and Euro-
pean expats.
Most agency leaders in China are expats that brought in the global perspective
and started developing the industry. This is not happening in Brazil where the
industry is led by locals, or Russia and the ex-Soviet nations, where locals devel-
oped the industry when the regime fell.
Six:
China’s political regime is not tolerant of creative thinking.
As Richard Florida’s 3T’s model expresses, China scores very low in tolerance.
Therefore it is assumed that creative thinking is not encouraged and can hardly
flourish.
Seven:
China has no advertising talent.
Throughout the various conversations I had with industry leaders at the top of the
chain, all of them agreed that one of the biggest hurdles for China to succeed is
the lack of talented people.

36
Eight:
China has more design graduates every year than any other country in the
world.
Soon the Chinese creative industry will rise as more design graduates hit the
streets with new and innovative views on communication and advertising.
Nine:
Chinese have the hunger to grow and become rich.
New reforms in China are showing people who, from very humble walks of life,
can become rich overnight. Many stories of self made millionaires and billion-
aires are happening more often, however the end result of this might not be all
too good.
Ten:
Passion and chaos are present more than ever.
China feels like the old west where anyone and everyone can pursue their dream
of making it big. It is good and it is also bad. Chinese are know around the world
for not necessarily being very trustworthy businessmen and things can turn bad
easily for someone wanting to do business with them
Eleven:
China is more capitalist that what people really think.
Again, based on the two comments before, China is the land of opportunity and
contrary to what most westerners might think of the communist regime, the gov-
ernment is displaying all of the traits that characterized many well developed cap-
italist nations.

37
Twelve:
There is a new generation of creative professionals breaking the mold.
There is a new generation of creative professionals taking flight in China. You
see them everywhere. China has more design graduates every year than the
rest of the world combined. This new digital generation is breaking the mold of
traditional professionals and starting to show the world what they are made of.
Thirteen:
Scale is king.
Like I said before and many of the professors and people I have interviewed
throughout the process of my modules and thesis, everything is big in China.
Therefore just by sheer scale China can accomplish whatever they want.

38
5. Research
In order to prove or disprove the stated assumptions, I have approached the sub-
ject from the following different angles:
5.1 Interviews:
I interviewed relevant global, regional and local advertising industry play-
ers with direct influence on Brazil and China. For the purpose of under-
standing their role I separated them into 4 groups:
i. Global Brands / Marketers
1. Angela Willmott – MARS Inc.
ii. Global Marketers / Agency specialists
1. Chris Thomas – advertising
2. Sir John Hegarty – advertising
3. Bob Jeffrey – advertising
4. St John Walshe – advertising
5. Michael Conrad - advertising
iii. Brazil Market
1. Industry Locals
a. Marcello Serpa – advertising
b. Ezra Geld - advertising
c. Roberto Martini – advertising
d. Karen Cesar – advertising
e. Daniel Prianti – advertising
f. André Kassu - advertising
iv. China Market
1. Industry Expats
a. Carol Potter – advertising
b. Tom Doctoroff – advertising
c. Dick Van Motman – advertising
d. Mario van der Muelen – digital.
e. Flavio Vigidal - advertising

39
2. Industry Locals
a. Lo Sheung Yan – advertising
b. Elvis Chau – advertising
c. Kitty Lun - advertising
5.2 I researched the work done by two global brands that navigate successfully
in emerging markets. The reason for this is to obtain information as to how these
brands embrace the local relevant connections in emerging markets.
a. Snickers
b. Volkswagen
5.3 I’ve also researched emerging market brands finding their way in the global
playing field. I have chosen one Brazilian and one Chinese brand that are able to
be relevant outside their borders, which have a more intentional global under-
standing of consumer’s needs and behaviors.
a. Havaianas
b. Lenovo
5.4 Qualitative and quantitative research with Cannes global creative community.
Running the 3 I’s Model to measure perceptions on the Brazil and China’s per-
ceived potential.

40
5.1 Personal Interviews.
I devise a process in order to try to obtain the most relevant insights from the var-
ious subjects I achieved to interview.
I wanted to start with the global marketer and advertising specialists, as a way to
get the big picture and establish the goals I wanted to achieve with my work.
My very first interview is to Sir John Hegarty, while visiting Ber-
lin on our very first module in 2010. I had the privilege of having
Sir John as our class godfather so we had the chance to see
him during two of our modules in Berlin. He is certainly a gen-
tleman of the advertising business, a true MadMen and most
definitely a global advertising specialist.
In our various conversations about the topic Sir John considers that Brazil is the
nation that can best “release intellectual capacity” within its people and therefore
ignites creative development better. To Sir John, the issue of social liberties in
China is the most difficult hurdle in China’s opportunity in creative potential.
His agency has offices in both Shanghai and Sao Paulo and definitely sees a lot
more creative development in the Brazilian office. However London continues to
be the flagship office for the agency.
It is the Sao Paulo office that creates the first Johnnie Walker commercial under
the “Keep Walking” tagline devoted exclusively for the Brazilian market. This
commercial shows the Sugarloaf as part of a giant that wakes up and starts walk-
ing, making a direct relation with Brazil as a country, who is no longer sleeping.
The commercial never ran outside Brazil but can be seen on Youtube.

41
Illustration 16
Johnnie Walker ¨Keep Walking Brazil¨Ad. Source: Youtube
A couple of months later I met Bob Jeffrey, Worldwide CEO of
JWT during our US Module in New York. He came to speak to
our class. Mr. Jeffrey presented JWT’s credentials and some of
the agency’s work from around the world.
What called my attention about his presentation is how he be-
lieved, that people behave the same way no matter where they are in the world.
They want to be connected to ideas that they want to spend time with.
“We create ideas people want to spend time with. The better the idea the more
time people spend with it”
Mr. Jeffrey believes that we now live in a “time economy” where people are con-
stantly bombarded with messages and time is the most valuable asset a brand
can earn from a consumer.
In the process of creative development Mr. Jeffrey mentions that his agency has
live network briefings for global projects where they usually involve New York,

42
India, Brazil and China as a way to make sure the idea can run globally, which I
thought particularly interesting but was not sure if that meant that New York
would present the global idea in search for validation from the other markets.
When I ask him about my thesis project and which of the BRIC nations has the
best opportunity to become a global relevant creative player he also suggests it is
Brazil. The reason behind it is that he considers that Brazil is more emotional
than China therefore has an advantage.
“Whoever has the highest capacity to inspire emotions is the nation with the best
chance to succeed”
But what would clients think? China represents huge growth for most
global brands. Is there reverse innovation opportunity in China at all?
It didn’t take me a long time to decide whom I wanted to interview as a client. It
had to be a senior marketer from a global company, working with developed and
emerging markets, a company with strong global brands, who believes in creative
excellence as a way to achieve brand recognition and awareness but that also
recognizes the diversities of the global community.
It is then that I decide to interview Angela Willmott, Global
Brand Director for Snickers® chocolate, one of the most suc-
cessful brands from MARS Inc. and one lf the most creative and
effective brands in the world, recognized year after year at the
most prestigious creative festivals in the world.
Just this last Cannes Lions Festival 2012, MARS Inc. was recognized as Adver-
tiser of The Year.
I had my client.
I was particularly interested in speaking with Angela because in her global role of
running a global campaign, she comes in contact with more than 40 markets

43
around the globe and has her eyes set on Brazil and China as sources of im-
portant growth for MARS as a company. She has lived in Shanghai and other
spots in the world, which makes her a truly global marketing specialist.
I had one of the most interesting conversations with Angela during a visit we both
did to Brazil in April 2012. Angela had only been there before for personal rea-
sons and this was her first official business trip to the country. We both met at
Almap BBDO offices for a deep dive in the Snickers® brand in order to design
the brands strategy in this country. A huge opportunity for both of us to experi-
ence first hand “what makes Brazil tick”
It is during my conversation with Angela about my thesis topic that I come up with
the 3I’s model (Intellect, Inspiration, Intent), resembling the 3T’s model from
Richard Florida, and the hypothesis that whichever country has the highest Intent
to make a global influence will eventually be the one who accomplishes it.
Throughout our conversation, it is clear that Angela’s experience in living in
Shanghai for a period of time is a good indication that China definitely has the
intent, desire or hunger to influence but is quick also to recognize that Brazil has
it’s advantage in Intellect and Inspiration.
This insight if further confirmed by St John Walshe, EVP of
BBDO Worldwide and Global Account Director for all MARS
business with BBDO.
I’ve had the privilege of working together with St John on the
MARS business and consider him a good friend.
Also during my Asia module, but this time in Tokyo, I happened to coincide with
St John while he was visiting the market. We had a long conversation about my
thesis work and actually helped me refocus the conversation more towards un-
derstanding the similarities between Brazil and China instead of focusing on the
differences. At first I was trying to put them face-to-face in order to compete but

44
then rather changed my approach to what it is now. An exercise on what each
nation can learn from each other and also developed markets to achieve relevant
global stature.
While discussing the 3 I’s St John had his own perceptions about the opportuni-
ties that each nation has and understands that Brazil far exceeds in terms of in-
tellect, inspiration but lacks interest in performing globally. China on the other
hand is immature and disorganized in the way they conduct business and is not
considered to be a trustworthy partner.
So what do creative professionals in Brazil think about this?
Well, you can’t pretend to understand anything about the adver-
tising industry in Brazil if you do not speak to Marcello Serpa,
Partner and Creative Director of Almap BBDO, one of the most
awarded agencies in the world and recognized at Cannes Lions
as Agency of The Year in 2010 and 2011.
Not only because he represents the best of the creative industry in Brazil, but al-
so because Marcello was the creative mind behind the success of Havaianas as
the first global Brazilian brand, built precisely around the country’s positioning.
Havaianas is a success story in many ways as it is probably the fact that it’s suc-
cess was created by the brands communication strategy and campaign. It repre-
sents the best example of the possibilities of a Brazilian brand becoming a global
player based on 100% Brazilian creative ideation. Nothing can be more Brazilian
to the rest of the world than those colorful flip-flops.
I’ve had the privilege of knowing Marcello for quite some time since we both be-
long to the BBDO Network, and I’m a big admirer of his work. However I had
never had the chance to interview him. We met in his office in Sao Paulo during
my visit in April of 2012.

45
We start our conversation around Brazil and it’s possibilities. Marcello definitely
agrees that Brazil has incredible creative talent and understands the opportunity
his nation faces right now. Brazil is in the world’s radar. The creative industry in
Brazil has definitely earned its accolades around the globe. Brazilians are pas-
sionate, fun and inspired people, however believes them to be very individualis-
tic.
“You put 100 Americans together and they conquer the world. You put 100 Bra-
zilians together and it’s a mess”
Serpa believes that this sentiment of individualism also extends to the country as
a global player. Brazil cares much for it’s internal performance, it’s results, and
it’s people. Not so much for the rest of the world.
When I ask him about China his position is quite interesting. Marcello believes
that China has an incredible advantage over Brazil and that advantage is Scale.
Everything in China is big. With a 1.2 billion people the probabilities of a high
percentage of highly talented and motivated people is much higher that in Brazil.
However China’s creative industry is ran by Americans and Europeans whose
interest is to develop the market.
It is clear that for the rest of the world, China is an untapped 1.2 million people
market that still has not reached its complete potential.
In that process, where western businessmen have come in to run the industry,
the local creative natives are learning the tricks of the trade and soon will take
over.
“China will eventually rise creatively when Chinese agencies are run by Chinese
people”, said Serpa during our interview.
When I ask Marcello about where does he see China 10 or 20 years in the future
he believes that China will continue to be successful in managing its country, still

46
under the same government policy. He believes that China is not purely com-
munist in the sense of what we know used to be communism, but a mutated
communist nation, able to play in the global market and make money the likes of
most capitalist nations and still be able to maintain control of its huge population.
Chinese people have a “hunger” that other nations do not have. He tells me the
story of time when he went to Shanghai and arrived at the hotel on a Sunday
night around 11PM. He got to his room and tried to get some sleep. However
was having a hard time because of the jet lag and at some point, perhaps at
1AM, he started hearing a lot of noise outside his window, enough for him to get
out of bed. When he looked out he discovered that in the building under con-
struction across the street there were at least 600 workers with big lights and
machines like it was 10AM. He then thought: “when competing with China, that
is what I’m afraid of”.
Even though other nations, including Brazil, might have that same hunger they do
not have the possibility to act and do what China can just by sheer scale.
“You can definitely build that same building in Brazil or the US, but you cannot do
it in the same time that the Chinese can. Too many laws, too many unions, to
many difficulties”.
Just the next day, after interviewing Marcello Serpa, I meet with
Erza Geld, COO of JWT Brazil.
I had a very enlightening and interesting conversation with Ezra
when I visited his office in Sao Paulo in November 2011.
Ezra believes that Brazil was forced to be creative and its history is based on the
sense of reinvention. He tells me the story of Napoleon Bonaparte and Dom
Joao, Prince Regent of Portugal and Brazil and how Brazil obtains its independ-
ence.

47
“In 1807, as Napoleon Bonaparte closed in on Portugal's capital city of Lisbon,
the Prince Regent shipped himself off to Brazil. Once there, Dom Joao estab-
lished the colony as the capital of his empire. By 1821 things in Europe had
cooled down sufficiently that Dom Joao could return to Lisbon, and he left his son
Dom Pedro I in charge of Brazil. When the king attempted the following year to
return Brazil to subordinate status as a colony, Dom Pedro flourished his sword
and declared the country's independence from Portugal (and his own independ-
ence from his father).”
Brazil has always made an effort to maintain this independence and this can also
be translated in many ways of its culture. Brazil is a continent, not a country of
Latin America. It does not relate to Latin America’s politics, economy or culture.
It is not a close friend or ally of the United States and does not follow its policy.
Brazil is its own thing.
In this sense, the culture is very particular. Ezra mentions a saying that struck
me as incredibly illuminating; as a way to refer that Brazil behaves in a different
way he tells me: “They made a law about it but it didn’t catch on”. This means
that even though there might be an official way of doing things in Brazil, the unof-
ficial way will always prevail.
Ezra believes, that Brazilian creative talent is among the best in the world, and
even though his agency is involved in many global initiatives, agrees that Brazili-
an agencies are too focused on the local market and not interested in compro-
mising their work – life balance.
“Global domination requires a lot of energy and Brazil is not interested in that, we
just want to be left alone with our Carnival and Caipirihnas”.
Roberto Martini, CEO and CCO of CuboCC Interpublic Group
Brazil is a fellow classmate of mine at the Berlin School and I
was able to spend some time discussing my thesis topic with

48
him. His opinion about Brazil and the creative community is very honest and re-
alistic.
Roberto understands the huge transformation the global advertising industry is
going through. Today, anyone with a good idea and a way to produce it is a
competitor. It doesn’t matter how big you are, if an agency is not able to deliver
on what it creates it will not have the power to face the new challengers of the
industry and stay relevant.
Martini believes that Brazil is used to being recognized by having some of the
most creative professionals on the advertising industry. However believes this
feeling is changing because Brazil didn’t follow the rest of the big markets in
terms of big ideas and integrated communication, Brazil kept focusing on devel-
oping great films and print and nothing in terms of digital and integrated.
“You can just see the results of the last festivals to understand this, we keep do-
ing great on film and print but no awards in other categories, we’re not relevant”
He believes Brazil is a very global market and the people are very adaptable.
That’s why we see a lot of Brazilians leading creativity everywhere in the world.
But the challenge is economic. “We don’t have big Brazilian independent agen-
cies or great Brazilian brands connected with big communication companies.”
New agencies are arising in Brazil, global companies are opening operations,
such as W+K, Naked, Razorfish,, RGA, etc., He believes this is helping the mar-
ket become more professional and for sure the perspective will change.
“With the creativity that the market has if we start changing this mindset, to not
focus just on film and print, Brazil can become powerful again. I’m not speaking
for my company, we are 60% digital, 20% integrated and 20% traditional, still
young and small to foster the change but I believe that we are in another level.”
When I ask Roberto about what needs to change in Brazil’s creative industry in
order to perform better globally he believes that Brazil needs to grow economical-

49
ly and be more aggressive in expansion. He mentions Nizan Guanaes as an ex-
ample of a company who is doing a great job in this regard; they made the right
decision when they started the expansion through digital companies.
They are small, cheaper and more appealing for clients, less investment, more
recognition and fast growth for them. This is what we need, smart leaders.
Try to think about Brazil in this perspective, who are the great/aggressive leaders
that we have today? Actually is just Nizan that is trying to grow and do some ex-
pansion, the others are more worried in keeping their business running, not at-
tacking, just defending and talking a lot without any action.
Roberto rates Brazil’s Intellect and Inspiration higher than China but rates Intent
lower than China’s
Karen Cesar, Founder and CEO of Red Bandana in Rio de
Janeiro is also a fellow classmate at the Berlin School and we
have spent many hours discussing our point of view regarding
creative relevance.
She was as exposed as I was to China during our Asia Module and she feels
quite particularly in terms of how each country compares.
“Brazil is the sixth economy in the world and the rise of buying power of middle-
class - who we call class C – cannot be taken for granted. As we have seen in
China, size does matter and Brazil has 200 million inhabitants, GDP- purchasing
power parity $ 2.172 trillion (as of 2010) Global brands can’t afford to overlook
this huge market specialy when financial crisis are striking around US and Euro-
pe. Brazil has a huge diversity, different culture among it’s states. Brands need to
understand not only the Brazilian point of view in order to use the right dialogue
with clients but its nuances in each state. The diversity of Brazilian people and
culture and the necessity to survive in tough times of recetion made creative so-
lutions appear everywhere. There is always a Brazilian way to do everything.

50
Karen believes that Brazil has always been a very creative culture having many
times to deal with adversity to ultimately come forward.
“Concerning communication, I believe Brazil has been one of the most creative
nations in the world. Our history of inventive low budget solutions to face the
shortage of raw materials or capital has been shown on the many awarded cam-
paigns we have. However, with the growth of the so called “Class C”, many low
quality universities are opening and the level of education has been very poor.
The government is constantly launching assisting measures that desencourage
undereducated population to work and stay off welfare.
Karen believes that education is they key to success and growth and that is
where Brazil is lacking.
“I don’t believe in growth or innovation without education, and that, in my opinión,
is the Brazilian greatest challenge. So Brazil could lose it’s creative competitive-
ness along the following 10 years.”
From the business point of view, Karen believes that Brazil is in a very conflictive
point right now as she understands that the advertising business model is not
sustainable in order to maintain its creative advantage.
“From a business focused point of view, the way of doing advertising in the coun-
try, still like the old times, which agencies buy their clients media and receive
20% of the investment as comission kills creativitity. Many new independent
agencies are doing a great job in digital, design, guerrila marketing, endomarke-
ting, point of purchase, but since clients are tied to internationally aligned agen-
cies, the will not even try to have fresh ideas. The market tends to remain in a
confort zone, doing average communication. In my opinion, Brazilian clients
should negotiate more independently, like de developed countries do.”

51
Because of her position on education in Brazil, when asked about the 3 I’s Model
Karen believes that Brazil scores higher in Inspiration and Intent but believes
China scores higher in Intellect.
I met André Kassu, Creative Director of Almap BBDO Brazil, at
our Asia Module and we had many conversations about the dif-
ferences and similarities that both Brazil and China have.
In my interview André believes that Brazil has it’s biggest opportunity with the up-
coming World Cup and Olympic Games. He believes that this will be the best
stage Brazil will ever have to display its creativity and global influence.
“More important than 10 years of Cannes Festival efforts. If we want to put our
mark, that’s the real moment to do it.”
André has participated in many projects where his agency is approached to
“translate the idea for the Brazilian market” as well as for developing global ideas
for international brands along with teams from different corners of the globe.
When we speak about the 3 I’s Model, André believes that Brazilian agencies still
have a lot of opportunity for growth in Cyber and Digital formats. He thinks that
agencies are still too focused on big media and are not very strong on these oth-
er mediums. It is for that reason the he gives Intellect his lowest score while In-
spiration and Intent rate higher.
One interesting aspect he mentions that Brazil has as a limitation for global crea-
tive influence is the language. Brazilians speak Portuguese and as it turns out
many local expressions that are highly engaging and creative locally cannot be
translated to other languages.

52
Daniel Prianti, CEO of Router Sao Paulo, a digital and events
agency, and also fellow classmate from the Berlin School is
actually the first interviewee that takes the subject from a more
cultural approach instead of the expected creative talent one.
During our conversations, Daniel expresses his agreement that Brazil is a very
creative country however limits it’s capacity of influence.
When I ask him why is it relevant for a global brand to consider the brazilian point
of view? He responds:
“There are a number of reasons I can think of , but there are two that I would like
to point out:
a) Brazilian creatives have definetly proven their talent to the creative industry
over the past couple of decades, so if brands are creating global concepts they
would probably benefit from a combination of creativity from different nations
where Brazil has talent to play an equally important role as other primary nations
when it comes to Global Concepts (such as US and UK);
b) If one assumes that amongst BRIC’s, Brazil has probably the most interesting
combination of business opportunity, culture ease and momentum, it seems very
probable that the importance of the Brazilian market for multinational companies
tends to increase and become the first or second market in priority (this is already
true for a number of brands). Naturally, Global Marketing Leaders will have to
give more importance to Brazilian point of view since their campaigns will primari-
ly have to work in Brazil.”
Daniel thinks that ideas in Brazil are unique because they represent the country’s
culture and it’s instinct of getting around with limited resources.
When I ask him if Brazil is ready to compete globally in creative communication
develpment? He responds:

53
“I would say that there are a few barriers regarding profound understanding of
other cultures. To have this kind of understanding it is necessary that we increa-
se not only our travel habits but also that we live in other places and not only our
own (in this case going to a place is different from living a place). From my point
of view this is not only an economic imperative but also a cultural one, where
Brazilians tend to “stay home” and cut roots with family much later when compa-
red to other nations (i.e. Americans when they go off to college or Europeans
who usually spend a lot of their free time traveling the world, etc..)”
So how do the Chinese feel about their opportunity?
Definitely one of the most insightful interviews was with Tom
Doctoroff, CEO of JWT Greater China and author of two rele-
vant books on understanding Chinese culture and it’s consum-
ers.
My first contact with Tom was through a phone call in 2011. We finally met in
person when I visited Shanghai in May 2012 and then again in Cannes for the
Lions Festival in June 2012. We talked for a long time about this subject and
was very inspired by his views. The most interesting was the fact the even
though Tom leads China’s largest advertising agency and has lived in the country
for more than 14 years. He believes that China has no chance of influencing the
world from the global creative advertising point of view.
Tom believes that creative influence is achieved by a combination of freedom of
expression and capacity for inspiration.
Given the current political situation in China it is very hard to imagine that the
Chinese will ever play a relevant role in global creative output.

54
Interestingly our first contact was before his office in China won the Grand Prix
for Print with the wonderful piece called “Heaven and Hell” for Samsonite at 2011
Cannes Advertising Festival.
Even after the award, I asked Tom if this was a sign that things were changing
and he agreed. However believes that it has created little inflection in the local
market. China, he believes is extremely conservative.
To support his position Tom shares with me a couple of passages from his new
book: “What Chinese Want” and points out the primary differences of Chinese
as compared to the rest of the world. He calls them the Three Timeless Truths:
1. A fatalistic, cyclical view of time and space characterized by meticulous
interconnectivity of things big and small.
The Chinese are amazing in logic and linear reasoning. The whole Chinese sys-
tem is a well-oiled machine. Government technocrats have devised systems for
transportation, energy, distribution and housing infrastructure.
This relates directly to the Ying and Yang from the Book of Changes that explains
basically that everything between heaven and earth is balanced to perfection.
This explains why the Chinese people, despite all the opportunities created by
economic development, remain fatalistic, eager to manage destiny but not to
challenge their place in the universe. Happiness and success can occur when an
individual achieves harmony with the surrounding world. Change, and the wis-
dom to adapt to its inevitability, is one of the enduring hallmarks of Chinese iden-
tity.
2. A morally relativistic universe in which the only absolute evil is chaos
and the only “good” is stability, a platform on which progress is construct-
ed.
The world of course changes all the time and how Chinese people deal with this
fact shapes their essence to the core. Especially natural disaster such as earth-

55
quakes and floods, are many times attributed as omens of celestial displeasure.
Therefore, in constantly changing world chaos is the ultimate evil.
Three considerations shape the Chinese culture in this regard:
Legalism. To prevent turmoil, the interests of the few must be sacrificed
for the greater good.
Daoism. Is all about balance in the universe and cosmological order.
Bad things happen when man and nature are not in sync, but also good things
happen when they are.
Confucianism. The strongest influence in Chinese society also extolling
stability rooted in a code of conduct that explicitly details the relationship between
individuals and society. Fathers and sons, husband and wife, older brother and
younger brother, ruler and ruled.
These relationships actually represent an opportunity to express many aspects of
society, as all roles need to be present. In order for there to be a ruled, there
needs to be a ruler, and in order for there to be a son, there needs to be a father.
This is in a way shaping the way that 21st
century Chinese people, with access to
money and expensive things feel fueled to achieve these goals. A tension be-
tween regiment and ambition.
3. A view of the family, not the individual, as the basic productive unit of
society.
The Confucian conflict manifests itself in every level of society and dictates con-
sumer dynamics in every category, from cars to computers, to sanitary napkins to
shampoo. China has deeply rooted anti-individualism but there are also huge
egos.
Western individualism encourages each of us to define ourselves independent of
external expectations. In China, this identity is exotic and considered dangerous.

56
The following article expresses this conflict in a very eloquent way. Not every-
thing in China is uncontrollable growth, expansion and access to goods. Recent-
ly Beijing banned luxury goods advertising. It seems that they do not want to stir
up too much emotions in regards to who has access to what, or who has more
than the other.
Illustration 17
Beijing bans ads for luxury goods. Source: Article on The Telegraph.
Continuing our conversation Mr. Doctoroff says: “The biggest challenge JWT has
in China is forging an environment of self-expression and innovative thinking.
Impact and success hinges on liberating the creative juices of everyone within
the organization, no matter their position into believing that creativity is the ruler
of the game and that without mold breaking ideas, the relationship with clients is
doomed to be short and unprofitable.”

57
“The capacity to operate on a near biblical scale is behind China’s emergence as
a modern economic superpower”
Now, later that same day I speak with LoSheung Yan, CCO of
JWT Greater China and partner of Tom Doctoroff in running the
China region.
Ma Yan arrived a bit late to our meeting battling what looked like a miserable
cold. I was very grateful to him for seeing me when it was clear he was not feel-
ing his best. Still, we managed to have a wonderful chat on Chinese creative
thinking, the Samsonite print ad that won the first Grand Prix for China and the
road ahead for Chinese creative development. This was just a couple of weeks
before the Cannes Lions 2012 Festival where we met again.
In contrast to what Mr. Docotoroff thinks, Ma Yan believes that China is also at a
tipping point and definitely sees the Grand Prix as a milestone that will ultimately
start the change in the industry.
“Now that we have won it, we want more of it”
Although he agrees that Brazil has performed much better than them creatively,
he believes that all China can do is grow.
“Brazil has reached its peak. I can’t imagine where and when China will peak”
The secret behind the Samsonite “Heaven and Hell” Cannes Grand Prix.
Of course, we speak about the Samsonite “Heaven and Hell” print piece that won
JWT it’s first Grand Prix at Cannes. Ma Yan is very proud of this work and again,
considers it to be a milestone in Chinese creative development. However the
true surprise behind the work comes from the global approach that JWT took to
produce the work.

58
China’s view of heaven and hell is not the same we in the west have. You have
to understand that in China the predominant color at weddings is red and white is
the color for funerals.
In creating the “Heaven and Hell” piece, the creative team took the “western” ap-
proach of how everybody else interprets heaven and hell. The use of white and
red, the presence of angels and demons that is all western interpretations based
on religious beliefs.
We in the west saw the piece as the Chinese interpretation of heaven and hell
but what we were actually seeing was the western interpretation executed Chi-
nese style.
Illustration 10
Samsonite ¨Heaven and Hell¨Ad. Source: JWT Shanghai
Closing on the 3 I’s Model, Mayan believes that Brazil scores better in Intellect
and Inspiration, but strongly believes this will change dramatically in the next 20
years and China in his opinion scores higher in Intent.
Building up on Ma Yan’s position I also speak with one of his
team members, Elvis Chau, ECD of JWT Shanghai.
I first interviewed Elvis back in 2011 before he and his team in

59
China had won the Grand Prix at Cannes for the amazing print work for Sam-
sonite.
At the time of our first contact, Elvis was excited about the possibilities that China
had in influencing the creative world as he believes that there is definitely a
“blooming” effect of creative work. That was before his office won the Grand
Prix.
However, Elvis believes that the challenge facing China is the level of sophistica-
tion both from marketer and consumer. He believes that this is a process in
which China has advanced a lot in the last few years and will continue to do so in
the future.
Earlier this year, I also had the chance to see Chris Thomas,
President of BBDO Asia and Chairman of Proximity Worldwide
in Shanghai during our Asia Module as he had come for a
business pitch.
I was particularly interested with Chris’ point of view being a global marketer
based in Asia and someone who has seen first hand the incredible growth that
China has experienced in the past few years.
We had a very nice conversation over dinner about the opportunities that lay
ahead for China as a creative nation. Chris thinks that China is just starting to
become more relevant and capable of creating global ideas that not only work for
the Chinese market but also abroad.
He mentions the Volkswagen “The People’s Car Project” as a fantastic idea
made in China that could definitely fly in other markets around the world. The
idea was ultimately recognized in the Cannes Lions Festival in June 2012.
Interestingly enough, this idea came from a creative team in BBDO Proximity Bei-
jing made up of two Brazilians. As part of my thesis work and further in this doc-

60
ument I present the results of my conversation with Flavio Vigidal, creative direc-
tor from BBDO Proximity Beijing on the case.
Of course, after speaking with Chris it only made sense that I
talk to Carol Potter, President of BBDO China.
I’ve known Carol for quite some time now, and have always
admired her determination in seeing China grow as an advertis-
ing market. She was the host of our BBDO global network meeting in Shanghai
in 2008, which for many was the first China experience, just before the Olympics.
For me it was the first time that I saw China as a global player.
I talked to Carol during my Asia Module in May 2012 when I visited her offices in
Shanghai and had a very interesting conversation about my thesis and the 3 I’s
Model.
Carol believes that China is at a tipping point in terms of taking the step towards
changing their perception from what we know as “Made in China” to “Imagined in
China”. That is changing from copying to originating.
Traditionally agencies in China have hired mostly non-Chinese creative since
there is a very limited pool of talent in the country, however it is slowly changing.
Even if they had a good pool of creative talent, it still doesn’t solve the problem of
how clients in China value creativity. There is still an important gap there that
needs to be addressed. Advertising in China, with very few exceptions continues
to be very fact driven and very little intuitive.
She thinks that Brazil scores higher in Intellect and Inspiration and China scores
higher in Intent on my 3 I’s Model.

61
Carol then connects me to Flavio Vigidal, Creative Director at
BBDO Beijing.
Flavio is part of the team who developed “The People’s Car
Project” for Volkswagen. A very engaging and creative idea that builds on the
ideas of the people of how the cars of the future will look like. This campaign
case is deeper explored in the section “Global Brand Performing Well in Emerg-
ing Markets” of my thesis.
I was particularly interested to speak with Flavio because he is actually the first
Brazilian creative that I met that is actually working in China. His point of view is
very valuable for my project as he has lived and worked in both countries and
can easily compare and score them on my 3 I’s Model.
Flavio notes that Brazil definitely has an upper hand in terms of Intellect and In-
spiration in my 3 I’s Model. He considers that Chinese creative still have a long
way to go in terms of creative development. He believes that they can modify an
idea but have difficulty imagining it. However believes that the Brazilian market is
saturated and too focused on selling media than creative. In this sense, he be-
lieves that China has more room to grow.
He also believes that China has more Intent in performing globally. He now un-
derstands how different Brazil views the rest of the world now that he is outside
its boundaries. He does not consider that Brazil is interested in playing a larger
role than the one they have right now.
Then came, Dick Van Motman. CEO DDB Greater China.
DDB in China is an important player in the local industry and due
to the relevance that DDB is giving China as a market his agency
is becoming one of the three creative global hubs for DDB
Worldwide. That is NY, Berlin and Shanghai.

62
Mr. Van Motman considers that creativity and innovation in China happens in
business and innovation. He believes that China is undergoing a huge transfor-
mation and will definitely become a huge market for local and international
brands.
He quotes the famous Bill Bernbach when speaking about basic insights on crea-
tivity as well as China as an opportunity market:
"Creativity is the most powerful resource in business."
"The trick is to understand what motivates a man".
I ask Mr Van Motman if he sees his agency creating global ideas to which he re-
sponds that most of the time big impact-full ideas in China will not fly globally.
Although his agency will play a more relevant global role in creativity he does not
envision China as a global advertising creator.
"Don't be confused that China wants to become westernized." He says as he
considers that the west commonly mistakes the idea that China will become more
westernized or even worse, that China will conquer the world and make it more
“Chinese”.
Last but not least, Kitty Lun CEO of LOWE China gives me her
point of view.
Kitty came to speak at our class during the Asia Module in May
2012 and is a true believer in the relevance that China can have
in global creative development. However again mentions that lack of talent exist-
ing in the market.
“China has no choice but to become a relevant global creative player”

63
But is the feeling from the advertising creative industry always the same?
Is there a difference between consolidated traditional network agencies and
smaller independent digital shops?
One of the most interesting site visits we had during our Asia Module in Shanghai
was FROG. A design / digital / advertising agency originally from Germany with
operations in Shanghai since 2005.
There I met Mario van der Meulen, Creative Director at FROG
Shanghai, who gives me a very different perspective than the
big agency leaders.
“We are experts in code and technology and hands on with materials. We know
our clients products and services intimately”
FROG goes beyond the traditional communications services company, they are
involved in all creative processes that a company’s brand navigates, being that
product design, marketing, distribution, display, and of course communication.
FROG to me represents the new wave of creative professionals and they have a
strong Chinese representation in their Shanghai office. Their vision of design
and creative development not only in China but also in the rest of the world
seems to be far more advanced that the rest. They are a product development,
idea creator, advertising, digital, social media creators.
This is the only interview where I find that and interviewee believes that the new
China scores higher that Brazil in all 3 I’s.
My very last interview is with Michael Conrad and I couldn’t
have thought of a better way to close. I met up with Michael at
the Berlin School of Creative Leadership Open House held at
the Cannes Lions Festival 2012 and then again just before the

64
festival was about to end. Michael had invited me to speak at the Open House
about my thesis work and how the school had transformed my professional ca-
reer. It is then than I understand the connection between my thesis topic and my
professional growth within the industry as I come from an emerging region wish-
ing to advance in the global landscape.
I later speak with him more deeply about my project and findings and he is the
one who actually frames the context of my work under the “reverse innovation”
idea.
Michael admires Brazil very much. Not only because of his personal experience
in the market, but also because of his close relationship with Marcello Serpa and
his agency. Michael believes that Brazil is one of the most creative markets in
the world. However, even though China is not very present in his radar, Michael
agrees that it’s scale can make a huge difference in the short term. He agrees
that Chinese are hungry and willing to learn fast.
In the end, from the various conversations I had with some of the most influential
people in the industry in Brazil and China, I was able to discover some interesting
insights and opportunities facing both nations.
Each nation thinks the other has the advantage.
Non-traditional, digital innovations companies are already living in the environ-
ment that traditional communications companies are envisioning the future will
be.

65
5.2 Global Brands navigating successfully in emerging markets.
A.
Snickers® is one of the most successful chocolate brands from MARS. The per-
fect product combination of peanuts and nougat wrapped in milk chocolate
makes it the perfectly combination to satisfy hunger.
In 2011 Snickers® introduced a global campaign with a powerful and unique
idea: “You are not you when you’re hungry”. This idea is build on the global
insight that when people are hungry they are off their game and display distinct
behavioral traits, some of those being:
Irritable and Cranky
Illustration 18

Irritable and Cranky – Hunger Traits. Source: BBDO

66
Physically weak and pathetic
Illustration 19

Phisically Weak and Pathetic – Hunger Traits. Source: BBDO
Angry, bad tempered and mean
Illustration 20
Angry, Band Tempered and Mean – Hunger Traits. Source: BBDO

67
All of these traits are universal and all consumers can relate to them, regardless
of their country of origin and local culture.
This campaign has very successfully ran in more than 40 markets, has been rec-
ognized as one of the most awarded campaigns for BBDO in the last few years
not only for it’s creativity but it’s effectiveness, and part of that success is how the
idea has travelled through so many cultures. Actually the beauty of it is how well
it connects with local level. As much as the Betty White version was very suc-
cessful in the US it would not have worked in China, therefore China made it’s
own version building on a local mythical character that displays one of the traits
perfectly. This character is known for being physically weak therefore could carry
the brand’s message perfectly.
Illustration 21
Character Scene from Snickers China Ad. Source: BBDO
This idea could have never been devised in the headquarters of New York to be
used in the Chinese market.

68
B. Volkswagen
Illustration 22
Volkswagen The People’s Car Online Ad. Source: Proximity BBDO
Volkswagen is recognized globally as The People’s Car and a creative team in
China took this positioning to a whole new level. Being “The People’s Car” in
Germany might be completely different to what being “The People’s Car” in Chi-
na, the agency came up with a very relevant idea for Chinese consumers but that
at the same time could be relevant anywhere in the world.
In 2011, Volkswagen commenced its People's Car Project in China to create
crowd-sourced concepts of the VW of the future. More than 33 million people vis-
ited the site, and three concepts were created from the inputs: the Music Car, the
Hover Car and the Smart Key.
You have to take into account that this project could have had difficult barriers
locally in China as it in a way offers consumers to express their ideas and vote
for the most exciting ones. Voting, as you would expect is not a very popular
thing in the Chinese political system. However it was presented in a way that did
not stir any complications in that regard.
The idea generated a lot of buzz not only in China but around the globe where
similar ideas are being developed.

69
The Music Car is a Beetle wrapped in LEDs that change colors to match the driv-
er's choice of music.
Illustration 23
The Music Car. Source: BBDO Proximity
The Hover Car is a zero-emissions two-seater that, no surprise, hovers over elec-
tromagnetic road networks.
Illustration 24
The Hover Car. Source: BBDO Proximity

70
The Smart Key is Big Brother for your car, in your pocket: the high-def
touchscreen on the nine-millimeter key can track the status of your car and keep
an eye on it via "satellite transmission."
Illustration 25
The Smart Key. Source: BBDO Proximity
This project was created and developed by BBDO Proximity Beijing and repre-
sents one of the best examples of a reverse innovation idea, respecting the glob-
al brand positioning, but conceived in an emerging market to be used and
adapted globally.
The campaign won various accolades at the recent Cannes Lions Festival 2012.

71
5.3 Emerging market brands navigating successfully in the global market.
A. Havaianas
Illustration 26
Havaianas Print Ad. Source: Almap BBDO Brazil
One of the most famous Brazilian brands in the world.
Havaianas has built an incredible empire based on its intricate relationship with
Brazil. Havaianas is Brazil and the way Brazil is seen by the world. It represents
all the country stands for and what has made it famous.
It’s advertising has always been an explosion of color and happiness where the
sandal is the center of the universe and the igniter of this passion for life that is
Brazil.
However in recent months, Havaianas has taken a different route, especially for
the United States, where it has taken a more “fashionista” approach. For their

72
latest campaign they hired famed photographer David LaChapelle to shoot some
ads.
Illustration 27
Havaianas Magazine Ad. Almap BBDO Brazil
This is an interesting approach to a very specific market but in a way steps away
from what has made the sandals famous.
Almap BBDO in Brazil produces all Havaianas work and is a truly relevant exam-
ple of Brazilian creativity exported to the rest of the world and of how advertising
can add value to the most inexpensive and simple product out there.

73
B. Lenovo.
Illustration 28
Lenovo Print Ad. Source: lenovo.com
Lenovo Group Limited is a Chinese multinational information technology and
electronics company co-headquartered in Beijing, Singapore and Morrisville,
North Carolina, United States. Its products include personal computers, work-
stations, servers, electronic storage and IT management software. Lenovo was
founded in Beijing in 1984 and incorporated in Hong Kong in 1988 under its pre-
vious name, Legend. Lenovo is listed on the Hong Kong Stock Exchange.
Lenovo is the world’s second largest PC vendor by 2011 market share, after HP
and markets theThinkPad line of notebook computers and the ThinkCentre line of
desktops. These brands became part of Lenovo's offerings after its 2005 acquisi-
tion of IBM's personal computer business. Lenovo also sells the IdeaPad line of
notebook computers. Lenovo markets its products directly to consumers, small to
medium size businesses, and large enterprises, as well as through online sales,
company-owned stores, chain retailers, and major technology distributors and
vendors.

74
Very few people know for a fact that Lenovo is a Chinese brand, and probably
the most successful at navigating the western world just as if it were any other
western brand.
This is also an example of a local brand that becomes a relevant global player,
however the communications approach comes from the western world instead of
a Chinese creative team.

75
5.4 Cannes creative community.
At the Cannes Lions Festival of 2012 the Berlin School of Creative Leadership
hosted an Open House for creative and other advertising professionals attending
the festival.
During this time, I was invited to present my thesis project to the audience and
had the opportunity to conduct a quick qualitative and quantitative study to run
the 3 I’s model for emerging BRIC markets.
Illustration 29
Cannes Creative Leaders Program Picture. Source: Warren Marenco
I conducted 38 questionnaires with responses from people from 24 countries that
gave the following average scores for Brazil and China.

76
Brazil China
Intellect.
Related to knowledge, preparation and experience
of the local creative community.
7 6
Inspiration.
Related to openness, sensibility and freedom for
creative expression.
8 7
Intent.
Related to decisiveness, hunger and ambition to
perform outside their own territory.
6 8
Total Score
21 21
If you add the three criteria it turns out, both Brazil and China score a total of 21
points. Which could suggest that both countries have the same opportunity.

Warren Marenco Chase BSCL MBA Thesis FINAL

Warren Marenco Chase BSCL MBA Thesis FINAL

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