country rep 2009 complimentary report

CountryRep™

2009 What are the reputations of countries?

What drives country reputation?

Which countries would you invest in and visit?

www.ReputationInstitute.com

Country Reputations are Vital

Strong reputations build political diplomacy...

Countries with great reputations attract tourists...

Countries with positive reputations are more likely to

attract FDI

A positive country reputation supports companies

2Copyright 2009. Reputation Institute. All Rights Reserved.

Reputation Management

a beautiful country, an enjoyable country, offers an appealing lifestyle

APPEALING ENVIRONMENT

offers a favourable environment for doing business, is run by an effective government, has adopted progressive social and economic policies, is a responsible participant in the global community

EFFECTIVE GOVERNMENT

produces high quality products and services, is inventive, is technologically advanced, is an important contributor to global culture

ADVANCED ECONOMY

Capturing ReputationCountries cannot manage what they don’t measure. Reputation Institute has been measuring reputations rigorously since 1999. Our approach is based on a simplified and standardized model for measuring reputations internationally. The beating heart of the model is the CountryRep Pulse – the degree to which people trust, admire, respect, and have a good feeling for a place. Underlying the Pulse score are three dimensions that influence perceptions of a company and its reputation; it is the importance of these dimensions which drive country reputation. Understanding the dimension drivers of reputation provides the raw material for countries to create strategic platforms that communicate and engage with their stakeholders on the most relevant key issues.


CountryRep™ Overview – The Model

CountryRep™ is an instrument that was developed by Reputation Institute to measure the reputation of a country with the public and with more specialized interest groups.

CountryRep™ Methodology

The core of the model is the degree of liking, trust, respect, and admiration that people feel for the country.

CountryRep™ is a scientifically-developed standardized scorecard that measures perceptions of countries based on key performance indicators designed to assess the relative appeal of the country to respondents on 11 attributes organized into three dimensions:

− Effective Government offers a favourable environment for doing business, is run by an effective government, has adopted progressive social and economic policies, is a responsible participant in the global community

−Advanced Economy produces high quality products and services, is inventive, is technologically advanced, is an important contributor to global culture

−Appealing Environment a beautiful country, an enjoyable country, offers an appealing lifestyle


CountryRep™ Overview – The 2009 Study

Project DescriptionIn January-February 2009, Reputation Institute conducted the CountryRep™ project in 33 countries.

Consumers in each of the G8 countries (Canada, France, Germany, Italy, Japan, Russia, UK, and USA) rated 34 country brands and thereby provide a snapshot of the reputation of emerging markets with G8 consumers. More than 22,000 consumers were interviewed online and asked to rate countries, providing over 38,000 country ratings.

Breakdown of ratings per G8 country:

Country brands were assigned at random to ensure representativeness of the views of consumers with internet access.

Each country brand was also rated by consumers in their own country. Reputation Institute conducted fieldwork in 33 countries which rated themselves to provide self-image scores from 17,000 interviews:

AmericasBrazil, Canada, Chile, Mexico, USA

EuropeAustria, Belgium, Denmark, France, Finland, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, UK

Asia-PacificAustralia, China, India, Japan, Singapore, South Korea, Taiwan, Thailand

AfricaSouth Africa

CountryRep Modeling DataData is balanced to be representative of online country population. All external scores are globally adjusted to account for country bias. Global External CountryRep™ scores are based on a mean of means of the G8 countries.

ScoringScores range from a low of 0 to a high of 100. CountryRep Global Ranking external scores that differ by more than +/-3.2 are significantly different at a 95% confidence level. CountryRep Global Ranking self- image scores that differ by more than +/-1.8 are significantly different at a 95% confidence level.


France: 2,783 Italy: 2,861 Russia: 3,032

Germany: 3,040 USA: 11,289 Japan: 2,647

UK: 9,994 Canada: 2,408

Which are the Best Reputed Countries?

CountryRep™ 2009 External Scores73.2473.19

72.5471.67

70.6368.31

66.0765.4365.22

63.1263.00

62.5462.34

61.3861.03

58.7458.37

53.4751.65

50.4048.5748.4248.3648.19

47.1345.27

44.7744.27

42.2138.97

38.1236.09

67.5467.19

SwitzerlandCanada

AustraliaSwedenNorwayFinland

DenmarkNetherlands

AustriaSpain

IrelandItaly

United KingdomGreece

BelgiumGermany

JapanFrance

PortugalBrazil

SingaporeIndia

ThailandMexicoPoland

United StatesTaiwan

ChileTurkey

South AfricaSouth Korea

UkraineChina

Russia

Scoring scale: 0-100

Scores are calculated as the average of the averages of each G8 country

A difference in score is considered statistically significant if the absolute value is greater than 3.2 points

Switzerland and Canada, two nations historically known for their neutrality, have earned the highest reputation ranking in Reputation Institute’s CountryRep 2009 - its annual survey measuring public perception of 34 countries around the world. The study found Russia to be the least respected country in the global survey. Canada and Australia are the only non-European countries in the top ten.

“A strong country reputation builds stakeholder support, making Switzerland a country people will recommend as a place to visit, invest in, live in and work in.”

--Nicolas Trad, Managing Partner, Reputation Institute


2009 Top 5 External Country Rankings According to Perceptions of…CountryRep 2009 indicates that public perception is most influenced by a country’s physical beauty, lifestyle, possibilities for enjoyment and global community involvement, which combined accounts for more than 40% of a country’s reputation. This makes it critical for countries worldwide to communicate how they offer a wide array of appealing options for entertainment and that their country supports good causes internationally.

Global Leaders Across 11 Attributes (slide 1 of 2)


Products and Services Physical Beauty Enjoyment/Entertainment Possibilities

Switzerland

Japan

Germany

Italy

Australia

Spain

Canada

Australia

Switzerland

Canada

Switzerland

Sweden

Canada Norway

Ireland

75.90

75.40

74.50

74.20

73.50

84.60

82.60

81.90

79.20

79.20

73.20

72.10

71.10

70.10

66.80

TechnologyBrands and InnovationBusiness Environment

Switzerland

Sweden

Canada

Australia

Finland

Japan

Switzerland

Germany

Sweden

USA

Japan

Germany

Sweden

Switzerland

USA

72.30

68.90

68.70

66.10

65.20

75.30

68.50

68.10

67.40

66.00

78.00

67.10

66.10

65.90

65.60

“…offers a favorable environment for doing business”

“…is inventive” “…is technologically advanced”

“…produces high quality products and services”

“…is a beautiful country” “…is an enjoyable country”


Global Leaders Across 11 Attributes (slide 2 of 2)

Contribution to Global CommunityCultureLifestyle

Australia

Canada

Switzerland

Sweden

Spain

Italy

France

United Kingdom

Germany

Sweden

Sweden

Canada

Switzerland

Norway

Finland

74.50

74.30

73.80

72.20

71.00

70.00

69.40

68.90

66.80

66.40

68.20

67.80

67.50

66.50

65.70

Effective Government Social Welfare

Switzerland

Sweden

Canada

Sweden

Switzerland

Norway

Norway

Finland Finland

Canada

72.00

70.60

70.00

69.80

68.10

71.20

70.50

68.20

67.10

66.10

“…offers an appealing lifestyle” “…is an important contributor to global culture”

“…is a responsible participant in the global community”

“…is run by an effective government” “…has adopted progressive social and economic policies”

2009 Top 5 External Country Rankings According to Perceptions of…Switzerland, the most highly respected country, landed in the top spot for business environment, products and services, and effective government, while placing second in social welfare, and brands and innovation. Italy was number one in the cultural appeal and entertainment possibilities attributes. Japan dominated in reputation for the brand and innovation attribute, indicating that the public perceives many important products, brands, and companies come from Japan.

“Having a Broad Reputation Platform Reduces Risk. Countries build their reputations on different platforms, but all platforms should communicate strength across a number of dimensions. A diverse image reduces reputation risk and provides a stronger platform for support.”

–Kasper Nielsen, Managing Partner, Reputation Institute



Evidence that Country Reputations are Linked to Supportive Behaviors

Having a Strong Reputation Improves SupportAn increasingly globalised world with intensified competition makes country reputations matter more than ever. Attracting FDI, tourists, high skilled workforce and being able to sell the products of the country abroad are facilitated by having a strong country reputation.

This model shows the correlation between supportive behaviors and external reputation overall for 2009.

“I would recommend to others to … country X”


Which Countries are the Most Attractive for Key Supportive Behaviors? Likely to SupportThe general public in the G8 countries (Canada, France, Germany, Italy, Japan, Russia, UK, USA) were surveyed for their perception of which countries are the most attractive to invest in, live in, work in and visit. Below you find the top five for each question.

Live InVisit

Australia

Canada

Switzerland

Italy

Spain

Australia

Canada

Switzerland

Sweden

Norway

79.69

78.80

77.71

76.60

75.78

68.70

68.50

67.29

65.60

62.26

Work In Invest In

Canada

Switzerland

Australia

Switzerland

Sweden

Canada

Sweden

Noway Norway

Australia

66.96

62.87

61.97

60.72

59.31

67.91

67.60

67.31

65.95

63.49

“…is a country I would visit” “…is a country I would live in”

“…is a country I would work in” “…is a country I would invest in”



Some Key Takeaways

External Country Reputation Findings

An increasingly globalised world with intensified competition makes country reputations matter more than ever. Attracting FDI, tourists, high skilled workforce and being able to sell the products of the country abroad are facilitated by having a strong country reputation.

The competition for countries to attract FDI is becoming more fierce and a good country reputation is therefore imperative in order for this happen.

Countries that are known to be ”neutral” and politically stable and have a solid business environment are more likely to attract Investments (Switzerland, Sweden and Canada).

Being able to offer a favourable business environment combined with a responsible and effective government are the most important characteristics of countries that are most likely to attract investments.

Countries with a shorter history of democracy or known to be politically fragile are less likely to attract investments (Russia, Ukraine).

Attracting workforce is driven by a country’s ability to offer an appealing lifestyle, a favourable business environment and effective government.

The attractiveness of a country as a place to visit as a tourist is driven by the perception of the country’s physical beauty, enjoyment possibilities and its lifestyle.

Country of Origin as a Brand

The country of origin or “made in” has a significant effect on purchasing decisions of consumers.

It has an influence in the perception of the quality of products and services.

The quick growth of international commerce makes this effect more and more relevant.

There is a mutual influence between perceptions of country brand on local brands and the local brands of products and services on country brand.


Which Countries Like Themselves the Most?

The CountryRep 2009 study measures the overall respect, trust, esteem, admiration and good feelings the public in the G8 countries hold toward 34 countries outside of their home country and how 33 of those countries rate their own nations. Findings from more than 17,000 interviews showed that Australia, Canada, and Finland gave their home country the highest ratings, giving insight into self-image around the world. The general public in Japan rated their own country the lowest.

“When people trust, admire and have a good feeling about a country, not only are they more likely to recommend key supportive behaviors to others, people are also more likely to give a nation the benefit of the doubt in a time of crisis.

“We see a strong pattern between reputation and support, demonstrating that building a favorable reputation platform should be a part of a country’s overall strategy.”

--Nicolas G. Trad, Managing Partner, Reputation Institute

CountryRep™ 2009 Self-Image Scores91.89

89.9889.79

85.6484.45

83.94

80.3678.96

78.0077.91

77.4677.39

77.0176.92

75.9075.25

74.3472.3172.2872.27

69.1668.6968.3968.33

67.7067.31

66.8966.88

65.0264.22

56.81

82.2082.43

AustraliaCanadaFinlandAustriaNorway

DenmarkSingapore

IndiaSwitzerland

ChinaFranceSpain

SwedenIreland

ChileUSA

NetherlandsThailand

RussiaPoland

GermanyUK

MexicoBelgiumGreece

ItalyTaiwanTurkey

South KoreaPortugal

BrazilSouth Africa

Japan



Scores are calculated as the average of the averages of each G8 country

A difference in score is considered statistically significant if the absolute value is greater than 1.8 points

Self-Image Across 11 Attributes (slide 1 of 2)

Canada

Finland

USA

Australia

Denmark

Finland

Australia

Canada

USA

Finland

Denmark

TechnologyBrands and InnovationBusiness Environment

Australia

Canada

Singapore

Denmark

83.68

78.48

77.96

76.92

76.10

86.32

83.22

82.51

81.70

81.13

82.66

78.61

78.51

77.80

77.10

USA

Spain

Canada

Denmark Canada

Austria

Austria

Australia

Finland

Australia

Canada

Austria

Australia

Finland

Norway

Products and Services Physical Beauty Enjoyment/Entertainment Possibilities

93.32

91.15

90.75

86.61

86.24

97.80

97.71

96.84

95.84

93.92

88.44

87.66

87.09

86.92

86.39

“…offers a favorable environment for doing business”

“…is inventive” “…is technologically advanced”

“…produces high quality products and services”

“…is a beautiful country” “…is an enjoyable country”


2009 Top 5 Self-Image Country Rankings According to Perceptions of…


Self-Image Across 11 Attributes (slide 2 of 2)

Contribution to Global CommunityCultureLifestyle

Australia

Canada

Austria

USA

Spain

Canada

Russia

Australia

USA

UK

Australia

Canada

Norway

Denmark

Singapore

96.01

89.70

86.73

83.11

82.71

85.91

85.86

85.13

82.73

82.40

84.16

81.52

80.22

77.88

76.02

Effective Government Social Welfare

Singapore

Australia

Canada

Australia

Canada

Singapore

Denmark

India India

Norway

81.99

78.37

72.24

71.55

70.81

78.35

76.81

65.60

65.08

64.35

“…offers an appealing lifestyle” “…is an important contributor to global culture”

“…is a responsible participant in the global community”

“…is run by an effective government” “…has adopted progressive social and economic policies”


2009 Top 5 Self-Image Country Rankings According to Perceptions of…


2009 Gap Between Country Self-Image and External Perception

Degree to which a country’s public over/under-rates itself in comparison to external perception.China and Russia showed the largest gap by rating themselves above average and higher while others rated them the lowest of the countries in the survey. Conversely, Japan showed the only perception gap between their own public perception of their country and the ratings of their nation by non-Japanese respondents in which they rated their own country lower than how others perceived their nation.


Working with Reputation Institute to Put CountryRep to Work for You

Reputation Institute (RI) clients work with RI’s analytic tools and pioneering consultants to realize results and unlock the power of reputation. The launch of the Global Reputation Pulse study identified the value of global reputation for corporations. CountryRep™ takes this same methodology to provide a comprehensive look at a country’s reputation to a wide range of potential customers. With RepTrak, Global Reputation Pulse, and CountryRep, Reputation Institute measures reputation at the local and global level for both corporations and countries.

The state of the global economy and political environment is thus that a tool such as CountryRep™ has never been needed more. CountryRep™ provides valuable information to help both established and struggling countries to target existing programs and initiatives toward key dimensions and country publics and to develop new programs and initiatives. CountryRep™ also helps corporations go global and efficiently build relationships with key stakeholders in the most vital country markets and not least seek to understand the impact of country reputations on corporate brands.

Potential Partners for Work on CountryRep™:Country GovernmentsForeign Direct Investment AgenciesGlobal Businesses and Potentially Global BusinessesTravel and Tourism Industry

Potential Uses for CountryRep™:Identify Key Performance Indicators for the country brand & reputation Identifies weak areas in countries for improvement Identifies positive areas to be leveraged as strengthsOverall results can be used for strategic marketing campaigns to grow tourism and business developmentsPositive results build pride and reputation within countries observing a rise in ratings after several studiesPositive results can be used as marketing leverage by highly rated countriesA positive or growing “country brand” can raise reputation of local company brands

To learn more, visit www.ReputationInstitute.com or contact [email protected].


Copyright 2009. Reputation Institute. All Rights Reserved.

Australia • Bolivia • Brazil • Canada • Chile • China • Colombia • Denmark • France • Germany • Greece India • Ireland • Italy • Japan • Netherlands • Norway • Malaysia • Portugal • Russia • South Africa • Spain

Sweden • Switzerland • Turkey • Ukraine • United Arab Emirates • United Kingdom • United States

Reputation Institute [email protected] www.ReputationInstitute.com

About Reputation Institute

Reputation Institute is the world's leading reputation consulting firm. As a pioneer in the field of brand and reputation management, Reputation Institute helps companies unlock the power of reputation. With a presence in more than 25 countries, Reputation Institute is dedicated to advancing knowledge about reputation and shares best practices and current research through client engagement, memberships, seminars, conferences, and publications such as Corporate Reputation Review. Reputation Institute's Global Reputation Pulse is the largest study of corporate reputations in the world, identifying what drives reputation and covering more than 1,000 companies from 27 countries annually. Reputation Institute provides specific reputation insight from more than 15 different stakeholder groups and 24 industries, allowing clients to create tangible value from intangible stakeholder feelings.

Copyright 2009. Reputation Institute. All Rights Reserved.