bloom consulting country brand ranking trade 2012

Bloom Consulting Country Brand Ranking © Trade Edition 2012

Development of CountriesHuman Asset ManagementBusiness Strategy

Bloom Consulting © Since 2003

The Bloom Consulting Country Brand Ranking © is the only country or nation brand ranking which classifies countries by the effectiveness of their country brand strategies and its subsequent impact on the country’s GDP.

In order to do so, Bloom Consulting has taken into account variables that define the economic performance of the countries as well as variables that characterize the strategies’ accuracy and market acceptance.

Bloom Consulting has used hard facts, such as economic indicators and an analysis of theofficial country brand strategies as well as soft data indicators, thereby measuring the economic impact of each country’s trade brand strategy. Furthermore, this marks the first time that Online Search Demand (OSD) has been incorporated into a ranking of this type.

The 2012 Bloom Consulting Country Brand Ranking © Trade accounts for the most comprehen-sive, objective research done in the field so far. In accordance with the Bloom Consulting 3T Approach © (see page 3), Bloom Consulting creates separate Rankings for Trade and Tourism. It includes 160 countries and all economic data comes from recognized sources such as the World Bank, United Nations and the World Association of Investment Promotion Agencies.

Bloom Consulting Country Brand Ranking ©An Introduction

Development of CountriesHuman Asset ManagementBusiness Strategy Trade

Edition 2012

CountryBrand Ranking ©

[email protected] / +34 91 308 0286 (CET)Bloom Consulting © Since 2003 Page 01

For the second consecutive year, I am proud to present to you withthe Bloom ConsultingCountry Brand Ranking! Over the last nine years, I have had the privilege of working with Bloom Consulting in country branding strategies all over the world. From my experience, the most striking fact I found so far is that most countries, regardless of their economic development, geographic location or even size, have very similar issues when developing their own country brand strategy. These issues are very much related with internal concerns, such as accountability or stakeholder management, and also the tangible measurement of brand strategy investments.

Our objective when launching this ranking was precisely to tackle this issue: how much more revenue can a country brand attract to its own national economy?

Let me just say how excited I am with the new feature in our algorithm - Online Search Demand (OSD). For the first time in any country or nation brand ranking, we analyze how well posi-tioned countries are in the biggest search engines and how searched they are by investors in general.

To conclude, I encourage you to use this ranking internally and use it as an asset and a tool to demonstrate the importance your country brand has on your economy. Although we would have liked to go deeper and give a detailed description on each country’s performance, it’s impossible to do so in this overview. However if you are interested to find out more information on your country, please do not hesitate to contact us. I would be happy to send you all the information you require.

Welcome to the Bloom Consulting Country Brand Ranking © 2012. We hope you appreciate the great results and findings as much as we did!

José Filipe Torres - CEO Bloom Consulting

An introductory note from the CEOWelcome


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In creating a country brand strategy we focus on three main areas: attraction of trade, tourism and talent.

The traditional approach when facing the challenge of attracting trade, tourism and talent is to create, or simply improve, perceptions under one umbrella strategy. Ultimately this will fail, as we see over and over again around the world. It is impossible to communicate entertainment to investors and simultaneously communicate a qualified and hardworking workforce to potential tourists. They messages repel each other, destroying the core objective. Most of the time agencies attempt a compromise in order to better create an overall strategy. As a result, they weaken their brand, as each factor is not branded up to its potential.

In order to solve the problem of having a single multi-dimensional strategy, Bloom Consulting has developed a 3T approach to country branding that separates each T.

T1. Attraction of TradeT2. Attraction of TourismT3. Attraction of Talent

Traditional “Umbrella” Strategy Bloom Consulting’s 3T Approach ©

This way, we’re able to calculate growth projections and calculations individually, in order to better define the objectives of an overall strategy.


Introduction to Country BrandingThe 3T approach ©

T2

T1 T3

T2 T3T1

GDP Impact

GDP Impact


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Historical Economic Performance Strategies and economic returns do not have an immediate cause and effect relationship, there-fore Bloom Consulting looks at the country’s long term (five years*) historical economic performance in foreign direct investment (FDI). This way, the Ranking reflects more consistent trends rather than the volatile changes that might occur in the recovering economic climate.

Economic Growth The growth in FDI inflows of each country is also an important indicator when measuringthe country’s country brand strategy performance, therefore Bloom Consulting computesthe compound annual growth rate for the FDI performance. This way, it is possible to garner how much the industry grew or decreased and the impact it had on the revenue. Again, data spanning five years was used to reflect consistent trends rather than brief volatile changes.

Bloom Consulting Country Brand Strategy (CBS) Rating © Bloom Consulting also rates the impact of each country’s branding strategy. The CBS Rating © takes into account the uniqueness of each country’s current brand strategy (Brand Tags) and the accuracy of the Online Search Demand. A brand strategy that is more unique and more aligned with investor searches will receive a better Rating.


The Bloom Consulting Algorithm, was developed to create and calculate the ranking, taking into account both hard and soft data and includes groundbreaking processes to show the relationship between a country’s economic performance and the projections of the country’s brand strategy.

The ranking is derived from four variables that take into account both hard and soft data. The ranking does not use any survey or interview based data, meaning that it provides the most objective, accurate results possible.

Bloom Consulting Country Brand Ranking Algorithm variables

Understanding the MethodologyThe Ranking Variables

CBS Rating©

Bloom ConsultingCountry Brand

Ranking ©

Historical Economic

Performance

Economic Growth


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* Data was taken from the World Bank covering the years 2006-2010.

Historical Economic Performance Strategies and economic returns do not have an immediate cause and effect relationship, there-fore Bloom Consulting looks at the country’s long term (five years*) historical economic performance in foreign direct investment (FDI). This way, the Ranking reflects more consistent trends rather than the volatile changes that might occur in the recovering economic climate.

Economic Growth The growth in FDI inflows of each country is also an important indicator when measuringthe country’s country brand strategy performance, therefore Bloom Consulting computesthe compound annual growth rate for the FDI performance. This way, it is possible to garner how much the industry grew or decreased and the impact it had on the revenue. Again, data spanning five years was used to reflect consistent trends rather than brief volatile changes.

Bloom Consulting Country Brand Strategy (CBS) Rating © Bloom Consulting also rates the impact of each country’s branding strategy. The CBS Rating © takes into account the uniqueness of each country’s current brand strategy (Brand Tags) and the accuracy of the Online Search Demand. A brand strategy that is more unique and more aligned with investor searches will receive a better Rating.

Understanding the MethodologyThe Ranking Variables in more detail

The Bloom Consulting Algorithm, was developed to create and calculate the ranking, taking into account both hard and soft data and includes groundbreaking processes to show the relationship between a country’s economic performance and the projections of the country’s brand strategy.

The ranking is derived from four variables that take into account both hard and soft data. The ranking does not use any survey or interview based data, meaning that it provides the most objective, accurate results possible.

Bloom Consulting Country Brand Ranking Algorithm variables



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CBS Rating © is calculated using brand strategy economic performance analysis and analysis of Online Search Demand. The country brand strategy is measured through brand tags, the key words that reflect the brand strategy of each country. For the first time in any country or nation brand ranking, Bloom’s Online Search Demand (OSD) is able to show if a country supplies what investors are seeking, and how well the country is matching this demand.

Brand tags function as the ‘supply’ side of the investor-destination equation. Thousands of brand tags were collected from each country’s official investment agency and then classified into 50 different clusters that relate to workforce, social welfare, strong and stable economy, favorable fiscal benefits, or stable political environment. Each cluster is assigned an economic value in order to rate the relative returns gained from each brand tag.

Domestic and international investor searches for the brand tags and related words were then analyzed, country by country, in the most used search engines, to show the country’s accuracy match and quantify Online Search Demand. By considering the OSD, Bloom Consulting is able to show if a country offers what investors are seeking, and how well the country is matching this demand. This identifies the gap between supply and demand. The more accurate a country is, the better the CBS Rating ©.

Just as international rating agencies rank countries’ credit risk, Bloom Consulting uses the CBS Rating © Classification System

Measuring Country Brand Strategy AccuracyThe CBS Rating ©

Score

Description

AAA Very Strong AA Strong A Slightly Strong BBB Very Good BBB

Good Slightly Good

CCC Slightly Weak CC Weak C Very Weak D Poor


1. United States of America

2. Luxembourg

3. China

4. United Kingdom

5. France

6. Belgium

8. Canada

9. Hong Kong

7. Germany

10. Russian Federation

Bloom Consulting Country Brand Ranking ©2012 TRADE EDITION - WORLD Ranking

AA

BB

A

B

BBB

BBB

BBB

BBB

CCC

AAA

Rank CBS Rating ©


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19. Kazakhstan


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29. Ireland

34. Romania

32. Thailand

13. Spain

11. Brazil

18. Netherlands

12. Australia

22. Italy

21. Singapore

25. Mexico

17. Sweden

28. Hungary

16. Saudi Arabia

30. Japan

14. Turkey

24. Poland

35. Colombia

33. Chile

31. Israel

26. Switzerland

15. India

23. Austria

20. United Arab Emirates

27. Norway

BBB

BBB

BBB

BBB

BBB

BBB

AAA

AAA

CCC

BB

AA

AA

AA

BB

BB

B

B

B

BB

BB

CC

CC

B

B

B


Rank CBS Rating ©


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38. Viet Nam

53. Malta

59. Portugal

37. Indonesia

52. Pakistan

58. Denmark

55. Lebanon

49. Finland

56. Jordan

57. Iceland

48. Algeria

47. Czech Republic

51. Uruguay

54. Estonia

44. Cyprus

43. Qatar

45. Argentina

41. Bulgaria

42. Sudan

40. Ukraine

39. Nigeria

46. Peru

50. South Africa

CCC

CCC

CCC

CCC

AAA

BBB

AAA

AAA

AAA

CCC

BBB

BBB

CCC

BBB

BBB

AA

CC

BB

AA

BB

B

B

B

36. Malaysia

60. Zambia AA

BB

Rank CBS Rating ©


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85. Bangladesh

80. New Zealand

70. Croatia

61. Serbia

67. Morocco

66. Greece

74. Slovakia

68. Tunisia

72. Congo

73. Macao

75. Belarus

81. Turkmenistan

77. Bahrain

63. Iraq

69. Madagascar

82. Philippines

78. Democratic Republic of Congo

64. Ghana

83. Lithuania

84. Costa Rica

71. Dominican Republic

76. Oman

62. Bosnia and Herzegovina

65. Panama

79. Republic of Korea

BBB

BBB

BBB

BBB

CCC

CCC

CCC

CCC

CCC

CCC

CCC

BBB

BB

BB

BB

BB

BB

BB

CC

B

B

B

B

B

AAA

Rank CBS Rating ©


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96. Slovenia

99. Jamaica

102. Honduras

95. Albania

110. Armenia

105. Sri Lanka

104. Uzbekistan

101. Botswana

93. Mongolia

100. United Republic of Tanzania

103. Macedonia

109. Senegal

89. Bahamas

90. Uganda

86. Trinidad and Tobago

94. Yemen

87. Georgia

92. Equatorial Guinea

98. Mozambique

107. Chad

108. Liberia

91. Syrian Arab Republic

88. Latvia

97. Guatemala

106. Kenya

CCC

CCC

CCC

CCC

BBB

BBB

BBB

AAA

BBB

CCC

AAA

BB

BB

BB

CC

AA

AA

AA

AA

AA

AA

D

D

C

C

Rank CBS Rating ©


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115. Nicaragua

125. The Republic of Moldova

129. Ethiopia

124. Afghanistan

131 Gabon

117. Kuwait

113. Antigua and Barbuda

128. Paraguay

119. Mauritius

127. Seychelles

122. Mauritania

134. Saint Lucia

123. Djibouti

132. Papua New Guinea

133. Malawi

112. Lao People’s Democratic Republic

114. Namibia

116. Burkina Faso

118. Mali

121. Côte D’Ivoire

126. Myanmar

130. Solomon Islands

135. Guinea

120. Brunei Darussalam

111. Saint Vincent and the Grenadines AAA

AAA

AAA

BBB

BBB

CCC

CCC

CCC

CCC

AAA

AA

BB

BB

B

B

B

B

B

B

B

D

CCC

CCC

CCC

BBB

Rank CBS Rating ©


144. Rwanda


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139. Tajikistan

149. Haiti

150. El Salvador

153. Dominica

156. Federated States of Micronesia

155. Togo

157. Tonga

158. Samoa

159. Guinea-Bissau

136. Barbados

143. Grenada

138. Cape Verde

147. Fiji

137. Guyana

148. Belize

146. Lesotho

151. Sierra Leon

142. Swaziland

141. Maldives

152. Burundi

154. Vanuatu

145. Zimbabwe

140. Gambia

160. Azerbaijan

AA

BB

BB

CC

CC

B

B

B

B

D

D

C

C

C

CCC

CCC

BBB

BBB

CCC

CCC

CCC

CCC

CCC

CCC

CCC

Rank CBS Rating ©


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The top countries of 2012’s ranking finished on top again, with the US first, Luxembourg second and China third thanks to all around FDI increases and strong CBS Rating ©. The US’ outstand-ing FDI flows pushed it into first place. Its BBB rating indicates that the US trade brand is quite accurate when considering investor demand, but is still not capturing all opportunities. Astonish-ingly the top six in 2012 repeated exactly, indicating that the economic strength of these coun-tries combined with strong trade brand strategies is difficult to beat. The first change comes at place 7, where Germany edged Canada out.

Despite 13 out of the top 25 coming from Europe, the 2012 Consulting Country Brand Ranking © Trade markedly showed strong growth distributed among all continents. Four other noticeable improvements were Brazil (11), Australia (12), India (15) and Kazakhstan (19). All countries’ strong FDI numbers significantly helped their rise, and Kazakhstan was strongly aided by its AA rating. Turkey (14) also turned in a wonderful improvement from last year with an AAA rating.Latin America had two countries in the top 25: Brazil (11) and Mexico (25). Brazil’s BBB rating contributed slightly to their two spot jump, but Mexico suffered from a CCC rating. Both coun-tries’ FDI increases were rendered less powerful than if they had stronger CBS Ratings ©. Several other top 50 finishers including Chile, Colombia, Argentina and Peru indicate the increasing economic potential of the continent.

Bloom Consulting Country Brand Ranking © Comments

Asia was well represented due to strong FDI flows, but the CBS Ratings © indicate that though Asia is rapidly becoming more economically powerful, creating a globally effective trade brand strategy is still challenging. Though China (3) received a respectable BBB, Hong Kong (9) and Singapore (23) were weakened with only B ratings.

The Middle East’s highest finishers were Saudi Arabia (16) and the United Arab Emirates (20). Both had strong ratings (BBB and AAA respectively), suggesting that the economic impact of the recent unrest in the region could be weathered with a strong brand strategy.

Shockingly, South Africa (50) was edged out by Nigeria (39) and Sudan (42) despite a BBB rating. Though South Africa might be perceived as the economic power in Africa, FDI inflows are being increasingly spread out over the continent.



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The top countries of 2012’s ranking finished on top again, with the US first, Luxembourg second and China third thanks to all around FDI increases and strong CBS Rating ©. The US’ outstand-ing FDI flows pushed it into first place. Its BBB rating indicates that the US trade brand is quite accurate when considering investor demand, but is still not capturing all opportunities. Astonish-ingly the top six in 2012 repeated exactly, indicating that the economic strength of these coun-tries combined with strong trade brand strategies is difficult to beat. The first change comes at place 7, where Germany edged Canada out.

Despite 13 out of the top 25 coming from Europe, the 2012 Consulting Country Brand Ranking © Trade markedly showed strong growth distributed among all continents. Four other noticeable improvements were Brazil (11), Australia (12), India (15) and Kazakhstan (19). All countries’ strong FDI numbers significantly helped their rise, and Kazakhstan was strongly aided by its AA rating. Turkey (14) also turned in a wonderful improvement from last year with an AAA rating.Latin America had two countries in the top 25: Brazil (11) and Mexico (25). Brazil’s BBB rating contributed slightly to their two spot jump, but Mexico suffered from a CCC rating. Both coun-tries’ FDI increases were rendered less powerful than if they had stronger CBS Ratings ©. Several other top 50 finishers including Chile, Colombia, Argentina and Peru indicate the increasing economic potential of the continent.

Asia was well represented due to strong FDI flows, but the CBS Ratings © indicate that though Asia is rapidly becoming more economically powerful, creating a globally effective trade brand strategy is still challenging. Though China (3) received a respectable BBB, Hong Kong (9) and Singapore (23) were weakened with only B ratings.

The Middle East’s highest finishers were Saudi Arabia (16) and the United Arab Emirates (20). Both had strong ratings (BBB and AAA respectively), suggesting that the economic impact of the recent unrest in the region could be weathered with a strong brand strategy.

Shockingly, South Africa (50) was edged out by Nigeria (39) and Sudan (42) despite a BBB rating. Though South Africa might be perceived as the economic power in Africa, FDI inflows are being increasingly spread out over the continent.

Bloom Consulting Country Brand Ranking © Comments, Continued



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Bloom Consulting divided the world into eleven geographic sectors and the four economic development stages in order to maintain the singularity of the region and compare countriesin a regional context.

Bloom Consulting Geographic Regions1. Central and Southern Asia2. Europe3. Northern Africa4. Oceania5. Central and Middle Africa6. Central America and Caribbean7. South America8. Middle East9. Western and Southern Africa10. Northern America11. Eastern and South-Eastern Asia

The four World Bank Income levels12. Low Income13. Lower Middle Income14. Upper Middle Income15. High Income (Includes both OECD and non-OECD)

Further sources for countries income level classifications, geographic regions, and IPAs listingThe World Bank http://www.worldbank.org/The United Nations http://www.un.org/en/The World Association of Investment Promotion Agencies http://www2.waipa.org/cms/Waipa

Classification, References and SourcesAdditional information about the study



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1) Who is this Ranking meant for?

Bloom Consulting Country Brand Ranking © is for anyone interested in place brandingfrom every perspective, whether you’re in government, academia, industry, finance, or just find it interesting.

2) Why did Bloom Consulting create a Ranking?

Bloom Consulting created the Ranking to evaluate the impact of a country’s brand strategy in economic terms and, above all, to answer the ever relevant question of how countries can become more attractive.

3) How does Bloom Consulting’s Ranking differ from other rankings?

Bloom Consulting’s Ranking uses variables and methodology to generate a ranking far ahead of the field in terms of objectivity and innovation. Not only does Bloom Consulting base its research on objective hard and soft facts, rather than using survey based data like other rankings, it is also the first ranking to take investor demand into account.

4) What is new in the 2012 edition of the Ranking?

The 2012 edition of the Ranking features the inclusion of investor Online Search Demand (OSD) in the Bloom Algorithm. By analysing consumer behaviour and the effectiveness of country brand strategies, the newest Ranking raises the bar by giving a pioneering view of the global trade industry from a supply and demand angle.

5) How can a state have a poor CBS Rating ©, but do well in the Ranking?

If a country has a negative CBS Rating ©, its brand strategy is not actively reflecting what the country has to offer (in the eyes of investor-demand). Even though its economic performance might still be strong, the trade strategy is not taking advantage of the country’s unique selling propositions.

Bloom Consulting Country Brand Ranking©FAQs



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Bloom Consulting is a strategy consulting firm specialized in country branding.

José Filipe Torres founded Bloom Consulting in 2003 and is a regular spokesperson at confer-ences and universities worldwide. Both The Economist and Forbes have interviewed Mr Torres, where he was identified as one of the top 3 country branding experts in the world.

Currently Bloom Consulting has offices in São Paulo, Mumbai, Lisbon, Madrid (headquarters) and Los Angeles, as well as research centres in Tokyo and London. Bloom Consulting works closely with presidents, monarchs, ministers and institutions in order to define their strategy, establish their vision, and implement it. Bloom’s clients include the Bulgarian, Latvian, Polish, Portuguese and Spanish governments, and also regions such as Madrid, Castilla y Leon in Spain, and center and the southwest regions of Portugal.

Bloom Consulting has developed the 3T approach © that separates Trade, Tourism, and Talent strategies into three different Country Branding Strategies.One fundamental point of all of Bloom Consulting’s projects is the CAMPRO methodology ©. This methodology is a combination of academic and professional knowledge under Bloom Consulting’s management and control, key to obtaining the most accurate recommendations and insights for all clients.

Moreover Bloom Consulting has published the: Bloom Consulting US State Brand Ranking © 2012 and is currently developing the:Bloom Consulting India State Brand Ranking © 2013

Additional Information

While this report provides a general overview, the information presented here is buta glimpse of the findings we have at your disposal. Please do not hesitate to contact us if you would like a personalized and detailed version of the Bloom Consulting Country Branding Ranking © Report for your country, region or city.

For more information, please visit:

www.bloom-consulting.com/en/country-brands-ranking

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