GRINGO THE CAUSE BRANDEagle eye: Brand Vision. Eagle body: Agility in the Actions. Black ... So, has been designed the GRINGO store and all the Brand visual identity, and taken as

FOR WIPO PUBLICATION ONLY

GRINGO

THE CAUSE BRAND

Mozambique, 2008


FOR CONTRIBUTORS

All this work done was possible, because Mozambican Youth is with us, some as

collaborators, some as customers, some as friends, some as fans, some as competitors,

some as students, some as professors. Also IPI Mozambique, Mozambican Ministry of

Industry and Commerce, Mozambican Foreign Affair Ministry, Mozambican Central

Bank, Indian Embassy in Mozambique, other Anonymous Personalities and Institutions

from all over the World, specially the WIPO Team, All as one team, THE GRINGO TEAM.

We will do our best, to make the World listen to us. And join hands in the World Cause

that is, Eradication of Hunger and Misery from the World, no matter if the contribution

is by investment in education, by an artistic form, by prayers, or any other form.

“There is no way to the Happiness; Happiness is the way.”‐ Mahatma Gandhi.

May God Bless The World.

Abdulla Abdul Karim

India, September 2008


INDEX 1. BEGINNING .......................................................................................................................................... 1

1.1 Dream .......................................................................................................................................... 1

1.2 The Changing Circumstances in 1987 ......................................................................................... 1

2. THE SIMPLE THINKING (1987-1997)................................................................................................... 2

3. THE IDEA.............................................................................................................................................. 2

4. BRAND DEFINITION............................................................................................................................. 3

4.1 What GRINGO is? ....................................................................................................................... 3

4.2 International Personality of Reference ......................................................................................... 4

4.3 Logo and Its Symbology .............................................................................................................. 5

4.4 Product Lines ............................................................................................................................... 6

4.5 Quality Logo and Its Symbology. ................................................................................................. 6

5. DEVELOPMENT ................................................................................................................................... 7

5.1 GRINGO Brand Building Process ................................................................................................ 7

5.2 Definition of the Target Market..................................................................................................... 7

5.3 Built Without Product ................................................................................................................... 7

5.4 Redefinition of the Target Market in 2001 .................................................................................... 9

6. INVESTMENT IN EDUCATION IN 2001 ............................................................................................... 9

6.1 GRINGO Education Program Concept ........................................................................................ 9

6.2 Internal Education .......................................................................................................................10

6.3 External Education......................................................................................................................12

7. COMMUNICATION AND SYNERGY ...................................................................................................14

7.1 Internal Communication .............................................................................................................14

7.2 External Communication.............................................................................................................15

7.3 Cause Oriented Marketing Campaigns .......................................................................................16

7.4 Internet (www.gringojeans.com) .................................................................................................21

8. PRODUCTION .....................................................................................................................................23

8.1 INDIA as Strategic Option...........................................................................................................23

8.2 Production Investment ................................................................................................................25

8.3 Product .......................................................................................................................................26

8.4 Product Substitution Process......................................................................................................26

8.5 GRINGOJEANS Introduction 10 years After the Brand ..............................................................26

9. THE WIPO EFFECT.............................................................................................................................27

9.1 National View..............................................................................................................................29

9.2 GRINGO Internal Integrated Results Evaluation and Financial Viability for 2008. ......................35

9.3 International Panorama...............................................................................................................36

10. CAUSE ALIGNMENT ......................................................................................................................37

10.1 Cause .........................................................................................................................................37

10.2 Profit Allocation ...........................................................................................................................37


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10.3 Present Projects..........................................................................................................................38

11. BRAND ALIGNMENT ......................................................................................................................41

11.1 GNG (2006) ................................................................................................................................41

12. REGISTRATION..............................................................................................................................42

12.1 Number of Countries...................................................................................................................42

13. FINAL CONSIDERATIONS .............................................................................................................43


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1. BEGINNING

1.1 Dream

To see a prosperous Country, in 1983, that was the worst year of hunger in

Mozambique. Being Mozambique, considered as one of the poorest Country

in the World at that time.

How do you think it feels, when you have a privilege to swallow a 3rd class

meat, after being all night in a queue to buy it, if you are sure that there are a

lot of humans as you, that have not even seen a piece of bread to eat, since

days?

1.2 The Changing Circumstances in 1987

The Country started the Economic Rehabilitation Program (PRE), and starts

the change from the centralized economy to the market economy. I left the

school with the 9th grade, due to hard learning conditions in all the

Mozambican schools, and rent a shop to start the own fashion garment

business, imported from South Africa.

Up to 1997, I did represent some of the South Africans companies and

international fashion Brands, while was studying, the Mozambican

consumers behavior, and the Worlds biggest fashion Brands, being specially

focused in the emotional appeal of the Brands to its consumers and non‐

consumers. And, obviously feeling the effects on the Mozambican society,

imposed by the change from the centralized economy to the market

economy.


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Philosophically, the Mozambican centralized economy system failure was

due to lack of knowledge of the majority of the Mozambican people;

obviously that majority was including me.

2. THE SIMPLE THINKING (1987 – 1997).

…, if the Brands emotional appeal could affect the consumers and non‐consumers,

than the same emotional appeal could be conducted to a Cause, and if so, there

could be added value to the Brand and make the Cause much visible, and perhaps

the Cause could be sustained with the Brand profits generated by the consumers.

And, if it could affect the non‐consumers, than it would generate the awareness of

the Cause and, a possible synergy from everyone in the Country. If this concept

could work, than probably we could make the difference and change the destiny of

all of us.

And, why not? If there is GOD, and if He is really Beneficent and Merciful, than it

has to work, as I am doing it for all of us. So… let’s try.

3. THE IDEA

The idea was to create, a jeans Brand that would represent a way of being that

should change the Mozambican youngsters attitude, giving them a reference, and

motivate them for education and training, because at that stage 1997, there was

ongoing the degradation of ethical values in the Mozambican Society.

4. BRAND DEFINITION

4.1 What GRINGO is?

• A Jeans Brand.

• A Cause

To eliminate the hunger and misery from the Country thru investment in

education.

• A Name

The name GRINGO is given by the Latinos to the North Americans and

Europeans.

Was inspired in a character of the American far west comics.

• A Personality

Mozambican in conception, geared to be the voice of Mozambican youth

within the current national framework. It is defined by a strong personality,

based in character in all its actions and attitudes. Serenity, in its way of

thinking. Irreverent, in its way of being. It encourages social criticism through

constructive examples and advocates values such as Humanism, Freedom

and Victory. It believes in tomorrow and lives for today whilst trying to mould

the moment.

In the personality conception, has been taken out aspects such as: use of

guns and alcohol consume.

Guns were taken out because it represents violence.


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Alcohol was taken out because it was and still is the biggest problem of the

Mozambican youth.

Amável Pinto – Mozambican musician and music professor.

4.2 International Personality of Reference

Bono Vox – U2

The choice of Bono Vox was done taking in consideration the compatibility of

the following four main aspects:

• Cause

• Irreverence

• Social Criticism

• Music

4.3 Logo and Its Symbology

The main logo evolution started in 2001, up to this final 2008 logo, after

reading the Managing the Brand Equity written by Professor David A. Aaker,

that book showed me that we could work much better from the beginning,

the logo. We were in the right direction, but that book showed me the

structured way to create, maximize and manage the Brand equity, something

that I didn’t know, but I was searching for. I didn’t even know that what I was

searching for was named Brand Equity.

I must admit, that was the book that gave me a deep understanding of the

branding and how could I move further in the GRINGO building process.

Coincidently it was in 2001, exactly in the year that we started the education

program. Somehow the book became the only certainty that whatever we

wanted to build could be really possible to build and we were going quit well.

The Logo The Symbology

Black Color ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Africa

White Color ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Peace

Blue Color ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Jeans

Corrosion Effect ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Time

G ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Initial of the Name

GRINGO ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Name

É SÓ UMA FORMA DE SER ‐‐‐‐‐‐‐‐‐‐ Slogan (just a way of being)

Frame ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ GRINGO Individuality

R ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Register


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4.4 Product Lines

The GRINGO Brand has been designed with mainly 3 lines:

CONFORTO (2004): inspired in the desires of the Mozambican youth.

Product Definition: semi formal wear.

ATITUDE (2006): inspired in the youth irreverence.

Product definition: jeans wear.

INTIMO (2006): inspired in the self well being.

Product definition: underwear.

4.5 Quality Logo and Its Symbology (1998).

The Black Art and Quality Eagle was designed, as quality logo, according to the following requirements:

Art Quality Vision Agility Mystery

Representing:

Eagle wings: Artistic Freedom. Eagle claw: Quality Requirement. Eagle eye: Brand Vision. Eagle body: Agility in the Actions. Black Color: Mystery.

5. DEVELOPMENT

5.1 GRINGO Brand Building Process

Well, I had the dream, the thinking, the idea, and the definition of the Brand

was also done, the next step would be definition of the target market, the

shop that would generate short term resources that could be invested in the

long term education programs and finally the introduction of the Brand

products.

5.2 Definition of the Target Market

18‐ 25 years old Mozambican youngsters

5.3 Built Without Product

The major challenge was to create the Brand products. There is no clothing industry

in the Country, there was no production of the row materials, not even the human

capability to create or develop designs for the products or even any activity related

to the marketing. There was restructured the classic model of Brand building thru


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the product, to a model that the product could be seen as a last stage of the Brand

building.

So, has been designed the GRINGO store and all the Brand visual identity, and taken

as option, to sell the international jeans Brands, as those Brands would work as

GRINGO Brand associations and the quality reference for what was wanted in a

GRINGO jeans.

In 1997, I still didn’t know that what I’m calling the Brand associations today

(definition from Brand Equity Management book) where called like that, but with

my experience working with Brands, I knew that a stronger Brand could transmit the

quality feeling or sensation, to the less stronger Brands or even weaker Brand by

standing next to each other. In our case was little different, we wanted to have

quality perception of the consumer and use the same quality perception for the

product that we wanted to introduce, and for the quality reference for what we

want. But, we did not have our own product.

So, we used associations to create the perceived quality and quality reference.

From: 1997 GRINGO profile.

5.4 Redefinition of the Target Market in 2001

Redefined to be Pre‐university and University students, and liberal

professionals.

We would be students; we would live with the students, and live for the

students, creating a perfect synergy effect for the Cause and the Brand by

representing an alternative way of thinking the World.

6. INVESTMENT IN EDUCATION IN 2001

In order to make the Brand grow, there was a need to achieve another level of

knowledge, as all the Human Recourses in 2001, were 6th grade on average, with

26 years old average, so we started with the internal education program. We were

the 1st Mozambican company in 2001, to design and to move towards inner and

outer education program, we also introduced the motivational meetings with the

psychologist, to eliminate the resistance of the new learning and back to school

program.

6.1 GRINGO Education Program Concept

The concept of the education program was to give scholarships to all the

Human Resources, and some out of the company. And there was no pay‐back

from anyone, meaning that there was no intention to impose such a time of

working in the company after ending the study. A collaborator would be free

to join any company that should offer a better working and personal

conditions. Deciding that, we wanted to contribute for the evolution of the

Human being (Our Human Resource) in the 1st place, thru them the

development of our Brand, also development of the Mozambican society,


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and at the end, evolution of the other companies, no matter if the other

companies were our own competitors.

We still believe that the competition makes us grow and benefit consumers

and can also boost economic development of the Country.

Regarding the scholarship given outside the company, it was our contribution

to the society and obviously we would be able to match the performance and

results from this out of company action.

The expected results of this investment would be seen in the long run, we

should have a Direction team for the Brand, Human Resources management,

Marketing department, we would be able to generate solutions for all the

problems of the company and we would be able to identify the talents in

universities to bring them into the company. And the big expectation of all,

we wanted to mould the new Mozambican youth, the new era of

Mozambican companies, both socially responsible that would be able to

contribute for the Cause, directly or indirectly.

6.2 Internal Education

That shown us the most painful step that we ever taken, because it is very

difficult to explain and make a person understand that the World can be

better, and we can make the change if we go under a self development and

educational program, specially, if there is no any example or alive evidence in

front of the eyes of the person who has even difficulty to read a newspaper

or a book. And I wasn’t the right example and I was far to be an evidence. I

was just living with faith in the possibilities.

In 2002, I was back to school, we had almost all the company Human

Resources in different schools, and slowly we started to be the Fashion Place

where the youngsters (18‐22 years) would like to work.

We also started to get the feedbacks from the schools (thru our school

colleagues) as “everybody” wanted to be part of the dream.

All this, was making us feeling much proud of our selves and this feeling was

generating higher levels of engagement in the work.

Management consultant was contracted, for strategic plan and

systematization of the internal procedures, and also, to speed up the

learning process in the company.

We build up a library of diverse subjects in the company, were we could find

from strategy to selling techniques books in Portuguese and English, brought

from various countries in my business trips and available to any collaborator

in the company.

In 2005, we achieved the 12th grade average, we designed our 1st manual

for shop operating, we designed our own selling course manual, and we

introduced computers and a software program for management, and we

reduced age average to 25 years. The reason of the reduction on the age

average was because some of the older collaborators started to quit due to

increase of the responsibilities and dynamics of the company, such as using

the computers, present the written action plans and reports. I would say that

the main reason was the resistance regarding the back to school program.

From 2006 onwards, most of the Human Recourses (Intellectual Capital in

our today’s definition) were in the Universities, and the students colleagues


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and teachers participations grew, and the inputs too. The Brand started to be

a unique case of success in the Country, and started to be discussed in the

classrooms as outside, and also the Brand became case‐study by WIPO and it

just added awareness, credibility and prestige, that boosted our search for

knowledge as now we were sure that our case was unique and there was not

such example to follow in the branding World.

From the very 1st moment, we were conscientious of the necessity for the

construction of internal capability to generate creative solution to our day by

day problems. The challenge was simple, we should have the solutions for

the problems on time, otherwise everything could fall down, but the

educational program was expecting to give results on the long run only.

Just as curiosity, a highest emotional stage of my professional life happened

in my 1st official power point presentation, that wasn’t in the school where I

was studying in the 3rd year of management. But, it was just in front of WIPO

team Lead by Dr Guriqbal Sing Jaiya, WIPO Director for IP for Small and

Medium Enterprises in the Least Development Countries, and Dr Fernando

Santos, Director of Mozambican Industrial Property Institute (IPI). I will let

you know how it happened later on (WIPO Effect).

We are lucky.

6.3 External Education

Started also in 2001, with FUTESCOLA Project.

I get to know about FUTESCOLA, in a sub 16 National Team presentation by

Mozambican Football Federation for support regarding participation of

Mozambique National Team in African Nations Cup sub‐16.

There were 80 kids, with 10/11 years average, playing with the ball, but, the

kids were living surrounding the rubbish dump of the city, some of the kids,

were actually living and eating from city rubbish dump.

The owners of the project, were dreaming to build as AJAX AMSTERDAM

TEAM Project model, were every player gets education. And were asking for

sponsorship for project. They wanted Food, Education, Medical Assistance

and Medicines.

I was surprised, because no one there was interested to give sponsorship.

We had the budget and we just accepted that.

The cost of the project was US$ 1.000.00 for scholarship, and US$ 1.000 for

food, medical assistance and medicines. The total cost of the participation in

the project was exactly US$ 2.000.00 for 1 year.!

This project ended in 2007, and the total cost was:

2001‐2002 – US$ 2.000.00 per year

2003‐2004‐2005 – US$ 4.000.00 per year

2006‐2007 – US$ 6.000.00 per year

Making it a total cost of US$ 28.000.00 for 7 years of sponsorship and

education.

There Results were:

• 100 % of scholar approvals in first 2 years.

• Won every single tournament from infants to seniors.

• 4 players in the National Team sub 16.

• 1st national team with 12th grade in education.

• Present in Norway cup 2007.

• Project internationally recognized by the following institutions:

Right to Play, Norway Government, FIFA, World Street Football,

BBC World Sport, UNICEF, Manchester United, among others.


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7. COMMUNICATION AND SYNERGY

I believe that I wanted to create a synergy effect by focusing all the communication

channels to the Cause. I had no idea of how it could be created, but I wanted that. I

could not even imagine what should be the result, but I wanted to see the results.

With a little of management experience, and by reading all those Branding and

Marketing books, I knew that we need to use the communication tools, but the

challenge was using these tools in the way to create solutions, generate resources,

focus the Cause and build Brand awareness.

We wanted to be very clear in our message, we needed to make some money to

grow, we want to be understood as a Brand, and we wanted to educate our self and

all around us. We did not have enough money to make all these and we did not

even have our own product. The only possibility was to be extremely creative and

have faith, as the knowledge was not abundant too.

Well, maybe HE can do some miracles…. And transform us suddenly in a very

creative team… funny hum? Well, HE just has to say BE IT and we will… BEEN IT…

And we started internally and moved on.

7.1 Internal Communication

• Ethical and Orientation principals

Ethical Principles (2001)

i. Honesty – to be honest with yourself, in the manner to be honest to all.

ii. Responsibility – personal and social.

Personal – to consider self behavior in and out the company, and

study.

Social – taken care by the Brand, as all the resources applied in the

Cause were produced from the profits generated by the work of

Human Resources of the company.

iii. Dedication – to transform each moment of work in a moment of

pleasure, considering friends, all colleges and costumers.

Orientation Principals (2005)

i. Efficiency – doing every action of the work properly.

ii. Efficacy – achieve the objective, which is doing the sale.

iii. Productivity – to generate profits.

“GOLDEN RULE – do not lie. We do accept non positive results

with sincerity, but NO Lies to get positive results in any actions

in and out the company”

7.2 External Communication

• Press Release

This was purely the channel that we were using for inform everyone, about

what we were doing. It was straight to the objective, not in an artistic way,

but direct to the customers and non costumers. Our press releases showed

very effective in terms of the objectives and costs.

• Sponsorship

We defined that the sponsorship was to be given only to those projects that

could add value to the Cause. There should be an alignment of the message

from the sponsored project and it should be compatible with the Cause and

values that we stand for. And, we were very lucky in the results from the

sponsorship. In some of the projects, the expectations were low and the


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results were simple brilliants. We proud to have sponsored the following

project among others:

Futescola (2001 –2007) – Football Project.

META‐MOR‐FOZES – National Music Evolution Project (Amável Pinto)

7.3 Cause Oriented Marketing Campaigns

From our very 1st marketing campaign in 2001, up to now, we try to make it

orientated for the Cause, from awareness of HIV infection, dissemination of

the universal ethical values, showing the not recognized national talents,

conserving national culture, boosting national proud, taking out kids from the

rubbish dump and try to make them national heroes, up to feeding up babies

in the national pediatrics and child care units, were milk was lacking. We just

try to do what supposed to be done by some humanitarian institutions and

the Government. That does not means that these humanitarian institutions

or the Government are not doing their job, but, somehow they are not

reaching at the levels they should. We call “criticism through constructive

example” to what we do.

In a simple manner, we want to show what more could be done or even

what more should be done by the humanitarian institution and Government

or even by any ordinary company or person.

We want our message to be clear as possible: you can win the hunger and

misery investing in education. You can invest in your own education or in the

education of someone else. We are trying to do both.

We focus on the Cause and obviously it has its resonance in the Brand.

It is necessary to say that all campaigns were produced in‐house, as we could

not afford to contract any publicity agencies as the Marketing budgets were

small, and no one even understood the kind of Marketing we wanted to do.

There was a converging situation of Cause‐Marketing and No product

available, and above that, we were talking about a Brand. Beside we had to

negotiate all the spaces and get special deals on it, in television either news

papers, and even shop posters because the market prices were not

affordable to us too.

We believe that the most effective and creative campaign is this 2008

campaign (on going), called SENSO COMUM. There are 52 adds of half page

in the news papers, during 52 weeks. In the SENSO COMUM campaign we

tried to show a common sense by trying to impose introspection and at the

same time we are criticizing the Mozambican ruling system and the status

quo.

Some of the sentences were constructed inspired from the Holly writing of

the 3 different religions: 10 Commandments – Judaism, the Holly Bible ‐

Christianism and finally, the Holly Qur’an ‐ Islam.

Senso Comum Campaign (2008)


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Translation: “Feed the needy, not the wealthy”

Inspired on 10 Commandment

Translation: “Create wealth, don’t steal”

Inspired on the Holly Bible

Translation: “Think, don’t drink alcohol”

Inspired on the Holly Quran

Valores Campaign 2004 (without product)

Translation: “The woman’s freedom is fundamental condition of the all humanity freedom” ‐ Karl Marx


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Translation:” There is no way to the happiness; Happiness is the way” ‐ Gandhi

Translation: “The Perfection comes from the nature” – Unknown

7.4 Internet (www.gringojeans.com)

In Portuguese Only.

On Construction.

Communication and Inverse Synergy (Practical Case)

Today, 11 years after the definition of the Brand personality, the alcohol became the main

problem of the Mozambican youth. It is easier to get a bottle of beer in Maputo streets than

any other non ‐ alcohol drink.

The beer became the most fashionable drink, and being seen with a bottle of beer on

Monday morning is meaning of status, as you are a person with no responsibility and can

afford to drink at anytime of the day, so, you are cool.

In the early 2000’s the beer companies attempt to sell and promote beer at the gates of the

secondary schools.

What can be expected from the students and professors that are invited to have a beer in

the middle of the school time?

The beer companies are the ones with the strongest growth in the last decade in

Mozambique, and we are just the one of the poorest countries in the World.

Now, I can understand the big marketing budgets of the beer companies, as beer is their

core business, but its difficult to understand that their publicity has no restrictions in the

Mozambican law, and if there is any restrictions than, there is NO one to make those

restrictions respected.

The situation becomes out of control, when the biggest mobile public company, produce

high budget music shows and TV spot promoting the beer consume.

The only conclusion that I reached after observing this “phenomenon” all this years, is the

inverse synergy effect: the growth of the beer companies, and their marketing campaigns,

would interested the mobile company and their marketing director, or even affected them,


22

so, they started to do this music shows and TV spots nationwide, maybe considering alcohol

as a youth winning strategy, otherwise there is no justification to promote beer in the

marketing campaigns as it’s not even their business. And from there, the emergent national

singers sponsored by them, that started to promote moral offensive songs and even

pornography and call it as Mozambican culture and Globalization.

Imagine the effect of 15 million us dollars marketing budget per year, of the mobile

company, plus some more million of the beer company in their own marketing, during 5

consecutive years at least, with the consent of the Mozambican Authorities, can do in the

mind of the Mozambican youth, being majority of this youth uneducated, and if educated,

than under the described education situation.

So, we got high growth of the mobile company and the beer companies, being at present, in

between the 10 biggest Mozambican companies (according KPMG 100 biggest Mozambican

companies magazine 2007 edition).

So, we got at the present situation were HIV infection rate is 17 %, with higher rate of 15‐

45 years old persons ( according to the Mozambican Health Ministry announcement) , with

the Government expenses supported by donations in about 55% ( according to the

Mozambican Plan and Development Minister announcement). With no national capability

for creative solutions and no base for sustained development. ■

• GRINGO Statement

We just want to create a positive example, where every single company

understands that by giving to the society, the company is just making the society

grow, and with the growth of the society, obviously the market grows too, and

consequently the business. It’s our effort to create this positive example, its

economically proven that the earnings come from the consume, now if we inject

in the society every single penny, to make the consumer live healthy and longer,

than we are just taking care of the maximum return of our own investment. And

there is also multiplication effect on the investment, we will be building schools

with quality education and not schools with beer outside that may increase

poverty by cutting from the base, our own future.

8. PRODUCTION

8.1 INDIA as Strategic Option

INDIA as strategic option for production was considered first in April 2006,

after my 1st visit to INDIA.

Before that we were still working with South Africa and 95% of buying were

in the other Brands products and 5% were Portugal (UE) in GRINGO Shoes.

In April 2006, we decided to make the turn, as South Africa and Europe

wasn’t any more affordable in one hand and we wanted to start introducing

the Brand products in other hand.

At this stage, our strategy was to get in the South African market, and we

wanted to be competitive in terms of products and prices.

We decided that we should visit China, India and Mauritius.

The decision of doing the all production set up in INDIA was because of the

following considerations:

• Brand point of view

We need to set up the product development unit; it is not only the

situation of buying the finished products, because we never had any

developed product. We did not have a single designer in Mozambique

that could do a single style or graphic design for a print. We also did not

have know‐how regarding management of a supply chain or something


24

like that, to get the product with desired quality and price, on time in the

shop shelves. And additionally there was the IT situation, we need to

develop the webpage, and the maximum we could do in Mozambique

was a not complete page with a lot of hard work for that.

INDIA was offerining it all, we could have the fashion designers, graphic

designers, quality control team, we could have the all supply chain with

know‐how, and at the end, at competitive prices that could help us also

in the Mozambican market, where the unfair competition and counterfeit

products were hitting us quit badly, and at the same time we could

maintain the possibility of expanding to South African market with some

advantage

• Opportunities of the Indian market

Indian market was offering opportunities too, the Country was booming,

2nd high growth rate of the World, purchasing power of the Indian

consumers was growing.

GRINGO concept could be workable in Indian market, we had the shops

with excellent look, and we had the shops operational manual that could

easily be adjustable to the international standards; and we had our own

selling course with international standards too.

There was a good chance of establish a production set up, and get the

stock for INDIA and Mozambique.

After all, there was 1.1 billion people market, which is 5 times bigger than

the all SADC market.

It just could worth the efforts to make.

• Compatibility of the Cause

Well, the Cause was compatible too; we can fight the poverty in INDIA by

investing in education too.

In that 1st trip to Mumbay, we had a meeting in Chennai, and on the

Jetairways fly magazine, I just read 2 articles, and one was about the Amir

Khan endorsement to Coca‐Cola or something like that regarding an

ethical attitude or so. And the other was about a meeting or seminar with

high profile Indian Government (Former President of INDIA was the chief

guest) and business men about the necessity for the social

responsibilities of the Indian companies.

Those two articles awaked me; our Cause is compatible in INDIA!

• Possibilities for expansion to other markets.

Again, if we could set up the production in INDIA, we would be

competitive in AFRICA and in INDIA, and from there, the possibilities of

being competitive to other market was just a question of direct export

from INDIA to those other markets. “Just as simple as that”.

8.2 Production Investment

In INDIA, as it was a completely new market, we did not have any credit from

the suppliers that we used to have in South Africa, where our reputation was

good.

We did our 1st investment of US$ 100.000,00 in 2006.

In 2007, we increased the investment to US$ 250.000,00, and US$

550.000,00 for 2008.


26

8.3 Product

We started the introduction of the products in end 2004, and defined the

value proposition of the Brand Products as:

• Functional Benefits

Simple, Basic, Good Quality Product.

• Emotional Benefits

Stylish.

• Self Expressive Benefits

Participation in the Cause.

• Maximum Retail Price (Recommended)

Premium GRINGOJEANS at minimum salary of each Country (around US$

80,00 in Mozambique).

8.4 Product Substitution Process

The product substitution process was designed taking in consideration the

ending product factor from other Brands.

According to the Strategic Brand Management by Professor Kevin Lane Keller

(2nd edition), there was examples of some shops that produced own labels by

managing the substitutions taking in consideration the must selling product

and substitute them when out of stock.

In practical point of view the substitution model of a shop turned label,

worked nicely for us.

8.5 GRINGOJEANS Introduction 10 years After the Brand

We could finally introduced GRINGOJEANS in the Mozambican victory day on

7th of September 2007.

The GRINGOJEANS already had the distinctive signs considering the

possibility of internationalization process.

But, I have to agree, with the fact that the row material was good, the

distinctive signs were defined nicely, but there should be constant

development. I would say it was 70% of the ideal we wanted.

9. THE WIPO EFFECT

Well, I will 1st of all try to explain exactly how we came to know WIPO.

It all starts in July 2006, with some news in the national newspapers were there was

a complain of the workers of a Mozambican company regarding health condition

and fraudulent contracts in working place, that was also producing soap with our

Brand name, we went to IPI (Industrial Property Institute) to complain about it and

the IPI director Mr. Fernando Santos, asked us if we could do a presentation showing

the Brand experience, as Mozambique does not have any example to show, in an

International Seminar to be held in Maputo, Organized by WIPO and IPI.

We said OK, that was something that could be good experience for us, could result

in a quick resolution of our problem (soap Production with our Brand name) and it

would be good for the Country, having an example to show and maybe “some nice

good free publicity”.

So, it was fixed that we would be presenting the GRINGO experience in a seminar for

“Using IP Tools to Increase Competitiveness of SME”.

Than the MIRACLE happened, I did the presentation, and Dr Jaiya invited us to

present the Brand story for case‐study. I didn’t get properly what exactly that could

mean and he said, “This Brand worth 10 times more that any Brand evaluation

company could evaluate it.” I thought he must be kidding. And I ask him two more


28

times, and the second time the answer was the same, on the 3rd time, Dr Jaiya

called Dr Fernando Santos, and said “I’m telling him that his Brand worth 10 times

more than any evaluation he could get”.

I just can’t explain the emotions felt at that time, it was a unique situation, in my 1st

presentation I was invited by WIPO to be a case study and I had a Brand that worth

10 times more that what I was thinking that the value could be! At the end of the

seminar day (it was two days seminar, and my presentation was on the 1st day), the

mics and TV cameras were on me. Undiscriveble!

And we decided to speed up the entire Branding process and planned to:

Register the Brand in all classes in Mozambique

Register in 45 classes.

Start the Brand registration Internationally

It’s Register in 6 countries thru the Madrid System.

We benefit from WIPO Least Development Countries Policy regarding international

registration by paying only 10% of the actual registration fees.

It’s register in South Africa and INDIA, outside the Madrid System

Increase visuality of the Brand

Thru sponsorship and publicity, we spent US$ 80.000.00 in 2006, increased to US$

200.000.00 in 2007, and US$ 250.000.00 in 2008.

Explore the fact of being case study by WIPO.

Publicity of the fact of being case study and publish all internal material and

documents that should be used by the students.

Maintain regular contact with WIPO and give the story for case‐study.

Ask support to write the story, as we did not know of what story to be written, as

the Brand was not recognized by the Government of Mozambique and we was still

in Brand building process.

Start all formalities with Indian Embassy in Mozambique.

As we did, we applied for opening a Liaison Office in January 2007.

Speed up the process of substitution of the other Brand products by GRINGO

products

Due to various limitations like: Investment on GRINGO products, cash flows

associated with advance payments for productions, up‐front payments of

import duties, high margins of left‐over stock of other brands products,

investment in Marketing, investment to search Indian market. We only could

achieve and announce 100% substitution rate on 1st of May – “International

Workers Day” in 2008.

Launch the GRINGOJEANS and respective Webpage before end 2007.

Both, GRINGOJEANS and www.gringojeans.com were launched in 2007, exactly on

the 07th September – Mozambican Victory day.

Leave the Country in JANUARY 2008.

We needed 15 months to do the entire plan, and get out of the Country, to establish

the Brand Internationally.

On 22nd January 2008, I was arriving Mumbay Airport, with my family.

9.1 National View

• Before WIPO seminar (August 2006)

Mozambique did not have any good example in IP, we were doing the Brand

but, it was not recognized.


30

SME were appointed as focal point in the Country development programs,

but there was not any particular or effective action that was introduced to

solve the SME problems, especially regarding IP.

There was no understanding of what IP means and even how IP could be

used for the growing of the SME.

IPI Mozambique was an institution focused in the registration of the

trademarks, very badly organized, and there was no any action to promote

the IP.

The effectiveness of the trade mark registration was almost none, as the

registered marks were not being protected properly, as there were no

enforcement laws.

With the nomination of Dr Fernando Santos as IPI Director, IPI started to be

restructured and I get to know as the 1st public known action as that August

2006 WIPO seminar. If there was any other action, than it wasn’t known by

the public.

• Between August 2006 and December 2007

I would say that in this period, has been some more actions regarding IP

knowledge directioned to the public.

IPI started to promote more Seminars, we started to do publicity as

registered trademark and as the 1st Mozambican Internationally Registered

Brand via IPI Mozambique, and also the WIPO involvement in Mozambican IP

system got much more known.

All this publicity, done by IPI Mozambique, WIPO and GRINGO, brought more

effectiveness to the IP system, but still falling in the enforcement that would

generate much consciousness of the importance of the IP system and

investment in it, and would definitely contribute for eradication of the

poverty and misery in the Country, as the situation regarding piracy of the

national IP or international Brands is still very bad, and maintaining as it is,

the costs for the Mozambican consumers, of the basic product were high

considering the very poor quality of the products offered, with actually no

guaranty of the same.

As known, the Brands are made guarantying the standards of quality, the

counterfeit products were just sold and it still being sold with no guaranty at

all, with known effects on the already poor Mozambican consumers.

The situation becomes worst, when you have no enforcement laws, than,

you have a complete non‐respect for the Mozambican IP, in a simple

example, you produce a CD, and in the very next day the CD is in the market

without your agreement and much cheaper with no quality at all, than the

result is simple, your work is lost and why you should bother to create

another CD or anything else, like machinery, software, etc, if you don’t

benefit with the gains of your work, in another hand, you have costs to do

the registration, complain regarding piracy, and at the end no effective

results at all.

Do you believe that someone will be feeling interested to invest in IP, if it just

means costs and nothing else, it’s much more easier to start a piracy business

that everybody knows that is very lucrative business in Mozambique, as the

Authorities just watch and sometimes divide the benefits from the same

piracy business.


32

Donations, Irresponsibility, Ignorance and it’s Inverse Synergy Effect (Practical

Case)

I will try to be as clear as possible, the soap factory is still producing the soap with

our Brand name on it, we being well known, and considered now Mozambican

Prestigious Brand, we are only getting added costs by taking legal actions against

the factory, and its publicity, but no effective results come from the Mozambican

Legal System.

So, which kind of example we are getting, when we got our only National Prestige

Brand being in the court for two years, with no effective results on that, and just

adding its costs.

As a pathetic situation, the soap factory is getting benefits from the Government in

terms of duties, they are not paying duties at all, and in contrast, we are paying full

duties, we are investing in education of the Mozambican youth, we get all the legal

costs and NO BENEFITS AT ALL from the Mozambican Authorities.

And the ridiculous is when the Mozambican Ministry of Education in the name of

education, is buying the soap, from same the soap factory with our Brand on it.

And when we knew that, we asked for an appointment with the Minister,

obviously informing the issue before… we just have been waiting for a year.

Maybe, we do not deserve any kind of explanation. What do you think?

Now, the inverse synergy effect: the Mozambican Education Ministry is getting

donations for education program from European Community, a percentage of

these donation is going to the soap factory, for buying soap applied in the adults

education program, so, these percentage of donation is making the soap factory

able to stand in the market, steel the IP of a Small Company, increasing it’s costs

and losses, while gaining benefits from it, and investing in the parallel financial

market, with its obvious Country’s economic distortion.

Was I clear enough? What I’m trying to say is that a percentage of the donations

money is being applied to kill SME, like ours, in Mozambique.

It would be called Irresponsibility or Ignorance? Both? From the soap factory? Or,

from the Government? And, what about European Community donations?

Irresponsibility? Are the donations given to build up capability? Or exactly for the

opposite? Destroying capability?

It’s not our intention to stop donations. But, the correct use of the donations given

should morally be the responsibility of the person, intuition, Government that is

giving or receiving the donation. Don’t you think?

Now, where should we complain? Who is going to pay the legal process costs? If us,

than were should we bring the money from? Cutting our education budget? Or,

from our Marketing and Communication budget? Will it be enough to pay all costs?

Who pays the damage in the Brand Equity?

We are open to suggestions. Please do send your suggestions to

[email protected] . And we will try to make it go to YOUR HIGHNESS when he

might be able to listen to us. ■

• 2008 Onwards

It’s a challenging situation.

IPI Mozambique is trying to do its best in the Mozambican Legal System,

WIPO is also working on that, and we are trying to do our work from within

the system.

We will continue to change the Mozambican youth attitude, we will be

continue to focus the benefits from IP system, but, in our point of view, if


34

there is no solid action from the Mozambican Authorities, than we would be

working for nothing.

That’s true that the WIPO recognition gave us much respectability and

prestige, but I believe that WIPO will not be there for everyone in a day by

day action.

• GRINGO Position

It’s our afford to make the Mozambican Authorities react and send a clear

signal to the Country and market by condemning the soap factory to pay the

process costs and indemnity considering the production quantity since the

beginning of the production and to be more effective, the soap factory

owners should be in prison until paid all our costs, our losses and a fair

indemnity to us.

In our opinion, it would generate the desired change and consequent the

effectiveness of the IP investment by all the companies end even individual

persons.

There must be simple and quick procedures for IPI legal cases, with tough

and effective enforcement laws. If we get to this stage, than we can say that

there is a new beginning of the Country, were everybody that works in the

creative field gains with the work he does, and it will be a really effective

incentive to generate creative solutions for eradication of poverty and misery

from the Country.

9.2 GRINGO Internal Integrated Results Evaluation and Financial Viability for

2008.

The internal integrated results Evaluation (zero as financial profit is

acceptable for 2008), has been always done considering the non‐financial

results such as effective benefits for the Cause from the Brand social actions

as academic evolution of the Human Recourses, evaluation of the impact of

the sponsorship to social projects as Futescola ( in this particular case , the

impact was directly to the Futescola kids, the community surrounding the

project, and as example to the Country), the impact in the funding to help

hospital food supply among others. Regarding financial results, as it were

non‐ negative, we were happy. There were no losses, small good profit, but

40 people from the company plus many outside the company was showing

great development, we all had salaries on time, the company was running

nicely, and at the end and the best, there were no losses. Good. Don’t you

think?

We started to see few challenges in 2008, there was need to increase

production budget, marketing budget too, as the product was still getting in

the market, and there was still some resistance as the product was new,

registration of the Brand nationally and internationally was needed, the soap

factory situation were not solved, from the hospitals came the news that

there was lack of milk, we needed to boost on production structure in INDIA

and we were starting to have some cash flow problems.

Our financial plan indicated the need of US$ 1.800.000.00 to smooth running

of all the Brand projects for 2008.

Being US$ 550.000.00, of the same US$ 1.800.000.00, already invested in

INDIA.

I’m waiting for 2008 results to analyze.


36

It is necessary to say that we met with the Mozambican Finance Minister, to

explain the situation, to know about possible benefits, complain the unfair

competition, and the losses we were having, discussed about Government

action to the market, explained all work done by us, and the fact that all our

duties and taxes are fully paid, and seems that there is NO benefits that we

can get and NO action can be done as Mozambican Finance Ministry has NO

resources to act.

And, according to the Mozambican law, either you are a production unit, or

foreign investor. As we are none of that. NO benefit to Mozambican retail

business.

The only possible action would be the possibility of paying the duties at the

end of the financial year, as we are paying the duties upfront, and this action

may help us with our cash flow problems. We applied for that, and awaiting

for the answer from the Minister.

9.3 International Panorama

This International Panorama point should be written by Dr Jaiya, as he is the

person that brilliantly understands it. But, I believe that by the right time, he

will accept to honor us with his written contribution to the Brand Story.

I must say that we have to get in the international market with all our IP valid

and adapted for the international market.

So, we are in the process of adapting it all, this story is also one of our steps

for the international market.

We are coming to the international market by WIPO hand that means an

excellent reference and background.

We bring a dream with us.

To become the World best Brand ever built.

To be in all the countries of the World.

To generate enough resources to provide free education to all human

being wherever needed.

To contribute for eradication of hunger and misery from the World by

investing in education.

To make the World a better place to live.

10. CAUSE ALIGNMENT

10.1 Cause

• Contribute for eradication of hunger and misery in the World, thru

investment in education.

The Cause remains and becomes valid out of Mozambican Borders.

10.2 Profit Allocation

• 50% Nett profit of the Brand, to invest in the Cause.

By setting up 50%, we balance the Cause with the Brand needs.

We transformed the Cause as a practically partner with real interest in

the Brand and its success, and obviously we expect to make the Cause

much stronger financially.

It is set up to start on the 1st January 2009; we already announced it

officially in Mozambique.

• The Nett profits from operations in each Country must be invested in

the same Country.

By defining the investment in the Country were the operations are set,

first we contribute for the people of that particularly Country to benefit,

from spending money on the Brand product, from their own money.


38

And second, the best of all, we become truly National Brand, wherever we are

operating.

In a case, that the Country is healthy enough to no need of this

investment, than will be priority given to the countries were there is a

need for the investment.

10.3 Present Projects

• Life Mozambique Project

It is a Human Development Project (still at the experimental stage), that

comes from the dream of Respected Dra. Noorjehan Abdul Magid.

Started on 1st January 2008.

Dream

To born HIV non‐positive Children, from HIV positive parents, that are

not orphans, badly nurtured, neither with missing affection.

Thinking and Cause Compatibility

“If you are going to invest in education, than to be educated, the 1st

step should be health of the Children, otherwise, to whom are you

going to give education?” – Noorjehan Abdul Magid

Objective

To eliminate the lack of milk in the Mozambican hospital pediatrics

and children care centers, helping the Mozambican Government to

reduce infant mortality rate in the way to achieve Millennium

Development Objectives.

Target Group

0‐7 years badly nurtured children

Experiment

Initially it was a pilot project for 6 months, with a regular supply of

milk to two children centers, one at Machava Hospital where are

children badly nurtured associated with HIV and other general

diseases, and other Mahotas Psico Social Centre, that is for treatment

of the children with late development of psychomotor and cerebral

paralysis.

From 1st of July 2008, was added one more unit in the project,

Matola Infantry, where are living orphans and street children.

This experiment covers the badly nurtured children that are

discriminated regarding their diseases, their late psychomotor

development and poverty.

Experiment Results ( from 1st January to 31th August )

There were visited supervision at the centers, where it was verified

that there is a great improvement in the life quality and of the child's

growth. There were made arbitrary questionnaires to the mothers of

the patients that showed their satisfaction in having such precious

and so necessary, but expensive product for their low social income.

They were also accomplished some encounters with the responsible

of the centers, after the (improvement of the nutritional and general

state) implementation of PROJECTO VIDA MOÇAMBIQUE, in that they

notice a fast improvement in the recovery of the greets of the

children. The distribution of the milk in all of the centers is made 3

times a day.

Management

This project is independently managed; the GRINGO participation is

only on the results analyses and finance.

It is managed by the Coordinator of the Project, thru Children Centers

Directors.


40

This is also an experimental management model and we expect to

get to a model that could be adjustable in any other Country.

One of the changes to be introduced in the model is regarding the

milk supply. At the moment, it is being done by the Directors

independently and directly from the market at market prices. We

want to buy milk direct from the milk factory, which would be much

cheaper and would give us much more security in terms of the milk

specifications and quality guaranty.

Investment

US$ 15.000,00 for 2008.

Action plan 2009

Increase the investment to US$ 50.000,00.

Add more Children Care Centers to the Project.

Get the milk supply done from INDIA.

Personality Profile of the Project Coordinator.

Respected Drª Noorjehan Abdul Magid

‐ Scientific Coordinator of Dream Project – Community of Sant’

Egideo.

‐ Women of the year 2006 – Consiglio Reggionale D’Vale D’Aosta.

• Difference between a Non Government Organizations (NGO) and

GRINGO.

We do not receive charities, donations or any other funds from any

institutions. We do generate our own resources, we produce and sell the

Brand products, and 50% of the nett profit, generated by this activity, is

invested in the Cause.

11. BRAND ALIGNMENT

11.1 GNG (2006)

• The Logo

• Evolution considerations

The uniqueness of the identity.

The GNG is GRINGO artistic acronym, designed with the last G on the mirror

effect. Making it unique and easily recognized.

The last G represents the essence of the personality – IRREVERENCE. The

way of being GRINGO.

Protectable.

Should be protectable by any IP institution, by not being offensive to any

Country IP rules and regulations.

Adjustability.

Has been designed to be adjustable to any line extensions.

Not African, but International.

Has been taken out the Black color from the logo.

The Blue color remain representing Jeans (origin concept product of the

Brand)

The White color remains representing Piece.


42

Possible bad connotation of the Brand name in some markets in the

World.

Also has been eliminated the possibility of bad connotation in some

countries by the possibility of being called just GNG.

• Expectations from the evolution

To be considered Prestige Brand by WIPO.

This evolution expects to make the Brand considered Prestige Brand and get

the Worldwide protection by WIPO, not because of its Cause Only, but also

because it Originality and Uniqueness.

To get UN (United Nations) involvement in the supervision of the 50%

of the Brand profits allocated to the Cause.

We believe that in case of success of the Brand Internationally, it will

generate enough profits for the Cause, and we want to have the investment

of this 50%, allocated in a clear and transparent process to the Cause

Projects.

To set a Worldwide reference for the upcoming Brands.

By setting up a Worldwide reference, we want to create a synergy for the

Cause, as all the upcoming Brands would consider the Cause as a necessary

element in the Brand Building Process.

12. REGISTRATION

12.1 Number of Countries.

42 Countries

13. FINAL CONSIDERATIONS

We know that it is a process in evolution.

So, at this stage, we are focused in the 4 main next steps:

• The sales in Mozambican shops.

The sales of 2008 Christmas season, will allow us to solve our immediate cash

flow problems, and will also make possible a investment in the production

set up in INDIA.

• Get the Mozambican Government action against the soap factory.

The case is in the Mozambican Justice Ministry. And we believe that

somehow the Mozambican Government will awake.

• Set up the production in INDIA.

We are waiting for the final Approval by the Indian Government to start

setting up the Liaison Office in INDIA.

• Licensee the Brand product lines.

Find potential partners that guarantee the final product to the Indian Market

or any other market, right to the retail shop shelves.


44

Document Produced by:

Mr. Abdulla Abdul Karim

&

Mr. Kamil Sulemane

Special thanks for Dr. Guriqbal Sing Jaiya, from WIPO, for his help and collaboration on this

document.


46

All rights reserved.

Special permission for publication or any other type of public transmission should be obtained from the

GRINGO Company.

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