futurebrand @ transform conference europe

© FutureBrand 2016 1

Brexit:What next for Brand UK?

Christopher NurkoThursday 7th July

Source of data and insight


17 Countries, 2,530 respondents Qualitative and Quantitative

Source of data and insight


3,000 respondents May 2016

Country Branding matters


A strong country brand increases the likelihood to visit, recommend

and do business with.

A strong country brand provides a marketing advantage as country of

origin conveys attributes, associations and advantages for

goods and services.

A strong country brand shapes and defines citizen affinity and

confidence related to living, studying or working.


Brand UK UK Brands

CBI 2014/15 study


PURPOSE

18 Attributes (Q12)

0%#

10%#

20%#

30%#

40%#

50%#

60%#

70%#

80%#POLITICAL FREEDOM

ENVIRONMENTAL FRIENDLINESS

TOLERANCE

HEALTH AND EDUCATION

STANDARD OF LIVING

SAFETY AND SECURITY

WOULD LIKE TO LIVE IN/STUDY THERE

GOOD FOR BUSINESS

ADVANCED TECHNOLOGY

GOOD INFRASTRUCTURE

HISTORICAL POINTS OF INTEREST

HERITAGE, ART AND CULTURE

NATURAL BEAUTY

VALUE FOR MONEY

RANGE OF ATTRACTIONS

RESORT AND LODGING OPTIONS

WOULD LIKE TO VISIT FOR A HOLIDAY

FOOD

Brand UK


Brand UK – at 12


Strong

Heritage & culture History Attractions InfrastructureTechnology Good for business

Weak

Food Environmental friendlyValue for moneyNatural Beauty


UK


Country Expertise (Q14)

28%$

31%$

18%$

16%$

40%$

38%$

29%$

16%$

24%$

41%$

30%$

21%$

28%$

35%$

33%$

Alcohol$

Automo4ve$

Consumer$Electronics$

Energy$

Fashion$

Financial$Services$

Food$&$Beverage$

Household$Appliances$

Internet$Services$

Luxury$

Media$

Personal$&$Household$Care$

Retail$

Technology$

Transporta4on$

0%$ 10%$ 20%$ 30%$ 40%$ 50%$ 60%$ 70%$ 80%$

Brand UK – Attributes that influence sector advantage


Authentic

Traditional

Creative

Individual

Anti-authority

Intelligent

Philanthropic

Luxury Goods

Design, film, theatre, media

English language based content/education

Scientific

9th strongest Country Brand for ‘Made in”

Feelings About United Kingdom


• Influential

• Powerful

• Iconic Landmarks

• Traditional and progressive

• Multi-cultural

• Independent

• Strong Infrastructure

Brand UK


• Strong Country Brand = competitive advantage

• Reinforces positive attributes relevant to key sectors (tourism, luxury, financial services, technology, alcohol)

• Not dependant upon EU membership

• Corporate and financial sector most susceptible to Brexitimplications vs. global markets

But, What does this mean for Europe?



EU – Declining support?

What do EU Europeans think?


Brand EU


• Declining favourability/ Trust

• 55% of EU (non UK) citizens believe EU will be damaged by Brexit

• Less ‘diverse’ and balanced without UK

• Need to address political transparency and accountability

• Need to address the emotional ‘bond’ and purpose of membership (“unable to inspire”)

A: Uncertainty = Economic Instability


“Financial risks have begun to crystallise”

Mark Carney, Bank of England

£250 Billion injection into money markets

Unstable £


“Ultimately, a lower pound will be required to help rebalance the UK economy”UK Market Analyst

Business confidence in the UK economy


49% of British businesses feel pessimistic about the future

UK economy

YouGov/Cebr 04/07/16

What does the world think?


REINFORCES POLITICAL DEMOCRACY

FOCUS ATTENTION ON BRITAIN

REINFORCES BRITISH CULTURAL CAPITAL

Paradox of (bad) news and strong Country Brands


Iceland 2010 Italy 2011 UK 2016

Google trend search: Interest in UK, Brexit, EU v Sex



“MARKETING DOESN’T PERSUADE PEOPLE, PEOPLE PERSUADE

THEMSELVES”

Dale Carnegie

”a triumph of story telling… of an emotional appeal over a rational appeal”


Remain Leave

STATUS QUO

‘Do Nothing’

CHANGE

‘Take Control’

What does the Future hold?


• For ’British’ brands (leveraging COO) it will be positive

• The EU must re-define it’s role and what ‘European’ means

• IP and trade laws and regulations are the nexus of negotiations

• Travel and Tourism to the UK will depend on visa rules

• Global UK companies must ’think and act’ global to survive

• Reinforcing multi-cultural, tolerant and open ‘Brand UK’ is vital (for citizens/students/visitors)

In summary


1. Brand UK is a strong and resilient Country Brand2. National Identity and emotional storytelling are

powerful 3. Paradox of bad news will create greater UK

visibility4. Emotions and storytelling are persuasive and

core for brands5. The discussion will go on for years….and years...


“THE BRITISH DO NOT EXPECT HAPPINESS… THEY

DO NOT WANT TO HE HAPPY; THEY WANT TO BE RIGHT”

Quentin Crisp


Thank you.

futurebrand @ transform conference europe

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