Branding

Presentation # 19

Branding a Country (Creating a Concept Around an Idea or a State of Mind) By Prof. Dr. Zafar U. Ahmed President and CEO Academy for Global Business Advancement Texas A&M University at Commerce, Commerce, Texas, USA

What is a Place Brand? It is the place’s reputation or image or impression or perception among those people that cares about it, such as citizens, potential investors and visitors

Can A Country Be Branded? • Brands are something that reside in the minds of its stakeholders • Branding involves creating mental structures and helping consumers organize their knowledge about products and services in a way that clarifies their decision making and, in the process, provides value to the destination (country)

Can a Country Be Branded? • The key to branding is that consumers perceive differences among brands in a product category • Accordingly, marketers can benefit from branding whenever consumers are in a choice situation

Branding a Geographic Location • The brand name is relatively fixed by the name of the location • The power of branding is in making people aware of the location and then linking the desirable associations • Increased mobility of both investors, and businesses and growth in the tourism industry have contributed to the rise of place marketing

Branding a Geographic Location • Cities, states, regions, and countries are now actively promoted through advertising, direct mail, and other communication tools • The goal of this types of campaigns is to create awareness and a favorable image of a location that will entice temporary visits or permanent moves from individuals and businesses alike

Branding a Geographic Location

Nations can be branded, and governments and their institutions can use the principles of branding to add to the value of their industries and the brands they represent’

Branding a Geographic Location Region/ Country

Asia

United States

Japan

Europe Activity, relaxation, intriguing, enriching, diverse, powerful, memories

Australia’s Attributes

Big nature, outdoors, city life

Fun, diversity, active, adventure, live it

Surprise, undiscovered, culture, lifestyle

Campaign

“Let the magic begin”

“Holiday”

“Country of surprises”

“The sooner you go the longer the memories…”

Message

Excitement, shopping, nightlife

Take a break from work and discover people and islands

Fast-paced, sophisticated, cosmopolitan, modern

Emotional, appealing, unique, travel now

Branding Philosophies

Supranational Brand Nation Brand Sector Umbrella Brands Regional and City Brands Corporate Brands Product Brands

Number of Brands

Branding Philosophies

Intellectual Architecture

A place’s intellectual architecture has been a critical element in constructing the brand of a place (e.g., UK)

Branding Philosophies • The living brand enhances the perception that community members, investors, and potential tourists, have of the place • Any strategy to manage a place’s brand must also manage its intellectual architecture

Place Brand Strategy • Rather than artificially branding a city or country, a place brand strategy requires governments to: – Develop a political and social process that allows constituent actors to identify and then put into practice a (relatively) constituent social, economic and political message that accurately reflects the place in question

Place Brand DNA • If a place brand’s heritage is of negative attributes, the terms ‘re-branding’ or repositioning apply • Jewish and global tourists visit the sites of holocaust across Germany. Why???

Practices of Branding

CRM and Country Branding

‘in the case of a country/government deploying CRM, it would need to ensure that every communication channel through which it communicates with its citizens and investors is funneled through a strategic CRM infrastructure’

The Interconnection of brand identity, brand positioning and brand image BRAND IDENTITY How the owners want the brand to be perceived

BRAND POSITIONING That part of the value proposition communicated to a target group that demonstrates competitive advantage

BRAND IMAGE How the brand is perceived

Nation Branding Influential Map

Nature

Cities

History

People

Geography

Education

Culture

Etiquette Character

Nation Brands

Resources

Culture

Economy

Politics

Education

Industries

Economy

Soc. System Political Structure

Laws/Regulations

Natural Resources

Cases in Branding

Poland, as a Case in Point

Introduction In the case of Poland the most important challenges include coordination between organizations responsible for and influencing country branding, collaboration between private and public sectors as well as between particular territorial units, financial backing and finally the fulfillment of the Poland brand by the people of the country

Why Does Poland Need a Brand? • Globalization of the economy • Challenges relating to Poland’s accession to the European Union (EU) • Growing competition primarily from neighbors in the region and the related need for Polish companies and products to be competitive

Positive & Negative Stereotypes Positive • Associated with a successful transformation of the political system • Thorough and courageous reforms • Developing democracy • Membership of NATO and the EU

Negative • • • • • •

Ignorance Corruption Crime Cunningness Crudeness Dishonesty

Common Image Poles being religious and suffering people throughout history

Elements of the Poland Brand • In searching for sources of Polish brand identity it is necessary to analyze hitherto perceptions of Poland and Poles (as well as neighboring countries) to find out what will constitute the key to the nature of the brand • Poland is a country that is relatively industrialized, with many attractive areas of nature,some of which are exceptional and not available across other East European countries

The Core Brand Identity of Brand Poland and the Possibilities over which it could be extended Tourism Historical places, sites and building

Raw materials Natural Resources

Nature, natural, naturalistic, naturalism

Hospitality Restaurants Tourism

Rituals

Tradition Traditional foods Polish sausage, bigos, Bison vodka)

Relevant industries (e.g.. Aluminum works, but also amber jewelry)

Natural monuments

Cultural Events Folklore

Fashion

Natural environment Health

Handicrafts, arts and crafts Commercial products: furniture, ceramics

Extreme sports (canoeing trips, climbing) Hobbies (hunting, gliding, sailing, etc.)

Professional products (boats, bicycles)

Nature reserves Nature trails Agrotourism

Resorts, spas Natural foods Health specialists

Traditional foods (Polish sausage, Bison, vodka)

The Poland Brand – Issues & Challenges • The most important challenge is the fulfillment of the Poland brand by the people of the country • Specialists can work out the brand concept, but in this instance, it is the Poles who have to make it work (hosts) • An important assignment for the brand therefore will be the shaping of a strong identity from within and its changes inward

Polish Conclusion • History has proven that Poles are ambitious and able to meet national challenges • The actual timing of Poland’s entry to the EU is particularly propitious for a change in the country’s brand image, because Poland for many no longer belongs to ‘them’ on the fringe, outside the Union, but advance to ‘us,’ a member of the European family

The Republic of Armenia, as a Case in Point

Introduction Armenia’s ‘place branding’ means requalifying the habitat and designing a distinct country image, replacing the popular perception of its remote and trouble-prone exSoviet-client status and making a clear case for its distinctive qualities, human capital, landscape, and cultural heritage

Armenia = Negative Images • Little land-locked country in a rugged high plateau prone to earthquakes • A weak and marginalized player in the geopolitical game – No petroleum reserves, exclusion from the Caspian pipeline routes

• A young state with fragile democratic institutions • An ancient Central Asian Christian nation nearly encircled by large Islamic countries and prone to inter-ethnic tensions • The debris of defunct Soviet-era industrial plants • Tense relations with Turkey

Armenia’s Options • Unlike much of the rest of the Tran Caucasus region, Armenia enjoys a high level of social stability and internal cohesion, attributable in particular to its educated population and ethnolinguistic homogeneity • For the world market, most of what Armenia has to offer consists of materials that become unprofitable if transported over long distances (or even shorter distances) if done exclusively by aircrafts: – – – – – – –

Tuff and other useful stones Machinery components Art and crafts Some mineral and metal products Food Products Bottled water Wine and liqueurs

Armenia’s Options • Exporting and Importing is not as simple of a strategy as it is thought to be because: – There are no good links with two major neighboring markets (Turkey and Azerbaijan) due to poor inter-state relations (ethno-territorial disputes, historical antagonism and resentment)

Armenian Conclusion • Armenia’s success (perhaps even survival) in the global market is guaranteed by enhancing the quality and value of local production and, at the same time, by protecting its environmental resources • In Armenia’s case the environment, landscape and identity represent the attractions – Otherwise, Armenia is no match for the mass holiday resorts which trade in climate, fun and comfort

• ‘Place branding’ for Armenia means requalifying the habitat and the human capital through comprehensive environmental and social policies (and investments) with a clear design in order to achieve a high ranking in the world in environmental health, quality of life • and sustainability • Resolving its conflicts with Turkey on a the pattern with German-French friendship

Branding African Countries, as a Case in Point

Introduction • People’s perceptions of African countries derive from media news as civil wars, malnourished child asking for aid, AIDs epidemic, starvation, drought, famine, and genocide • African countries lag in the pursuit of investment, tourism, exports and human capital – They have to find a way to attract FDI competitively – Country branding is now a necessity rather than a choice; it is ‘about making people want to pay attention to a country’s achievements and believe in its qualities

The Case to brand African Countries • African countries suffer from ‘continent brand defect,’ where the entire continent is considered as a single brand • The need for African countries is to escape that image and get a separate perception that is recognized • Mauritius, as a Case in Point

Why Brand African Countries? • Africa is widely perceived as a large homogeneous mass, hence the negative issues such as Aids, civil wars, genocide, drought, famine, and political corruption are too often considered to be applicable to the entire continent • If African countries are able to carve strong brand identities, thereby differentiating themselves, African countries will also improve their creditworthiness – Which will, as a consequence, stimulate an increase in international relations, tourism, exports and investments

Rationale for Branding Africa • The initiative should be led and driven by the head of the state • Noble Laureate, Dr. Nelson Mandela, African statesman, as a Case in Point • A working party composed of representatives of culture, industries, education and the media, etc., should also be in place, along with the brand owners in the private sector who will play a key role in the making of the brand

Advantages of Branding • Tourism – Branding African countries, global tourists would be alerted about the existing attributes, tangible and intangible

• Investment – African countries are realizing that they cannot develop and become competitive while relying solely on donor aid

• Diaspora – Brain drain is putting a strain on the continent. Greatly needed skilled professionals, such as scientists, engineers, doctors, IT specialists and university professors have exited the continent in search of greener pastures in the West

CRM in Africa Does CRM have a role in branding African countries? In order for CRM to work efficiently and help African countries in becoming competitive, ‘visionary leaders’ need to be targeted constantly…

CRM in Africa • The government involved should act as a corporation, aiming to manage relationships with selected target groups – – – –

Investors The Diaspora Tourists Foreign Talent

African Conclusion • Once an African country has an attractive image, it will also inspire the Diaspora to speak of their country with pride as well as help to engage them with the country’s development • South Africa, as a Case in Point

Branding of a Nation Conclusion • A nation’s brand to a large extent is shaped by its history, culture, heritage, location, customs, achievements of its citizens and vision of its leaders ….; • A nation needs to compete over its customers’ hearts and minds inside the country, regionally, continentally and globally

Branding of a Nation Conclusion • Due to the complexity and sophistication of competition between nations, mostly derived from globalization, countries are tirelessly leveraging their desired brand images through communicating their advantages, attitudes, history, culture endowments and assets

Branding of Rwanda???

Q&A