BRAND SOUTH AFRICA

THE FUTURE OF BRAND SOUTH AFRICA WHY IT MATTERS AND WHAT NEXT ?

25TH OCTOBER 2011

INTERVATE – CAPE TOWN

Sheer Driving Pleasure

Why have Brands ?

Nations as Brands

In an increasingly

competitive world…

Why Manage the Reputation of Nations ?

Manage your reputation or

someone else will

...the Media !

Why Manage the Reputation of Nations ?

Why Manage the Reputation of Nations ?

Why Manage the Reputation of Nations ?

Why Manage the Reputation of Nations ?

REPUTATION MANAGEMENT

Build Confidence &

Pride

Job Creation

Tourism

Inspirational Vision

Increase Competitiven

ess

Economic Growth

Skills Development, Attraction &

Retention

Increase Productivity

Direct Investment

Why Manage the Reputation of Nations?

Why Manage the Reputation of Nations?

WORLD ECONOMIC

FORUM 2011 (2010)

IMD INDEX 2011 (2010)

ECONOMIC FREEDOM OF THE

WORLD 2011 (2010)

NATION BRAND INDEX 2011

(2010)

1 SWITZERLAND (1) HONG KONG (2) HONG KONG (1) USA (1)

2 SINGAPORE (3) USA (3) SINGAPORE (2) GERMANY (2)

3 SWEDEN (2) SINGAPORE (1) NEW ZEALAND (3) UK (3)

4 FINLAND (7) SWEDEN (6) SWITZERLAND (4) FRANCE (4)

5 USA (4) SWITZERLAND (4) AUSTRALIA (8) JAPAN (5)

6 GERMANY (5) TAIWAN (8) CANADA (7) CANADA (6)

7 NETHERLANDS (8) CANADA (7) CHILE (5) ITALY (7)

8 DENMARK (9) QATAR (15) UK (10) AUSTRALIA (9)

9 JAPAN (6) AUSTRALIA (5) MAURITIUS (9) SWITZERLAND (8)

10 UK (12) GERMANY (16) USA (6) SWEDEN (10)

RSA 50 (54) 52 (44) 87 (82) 36 (31)

TOTAL: 142 59 141 50

GLOBAL INDICES

HOW NATIONS MANAGE

THEIR REPUTATIONS?

Brazil – Icons, Events, Leadership, BRIC

India – Scale, BRIC, Culture and Diaspora

Chile – Leveraging Mining Disaster – A ‘Can Do’ Nation

Rwanda – Genocide to the Dubai of Africa

South Africa - Leveraging Defining Moments

South Africa - Leveraging Defining Moments

‘Defining Moments’ can change the

way the world looks at a Nation

BUT

Can also change the way a

Nation looks at itself

27

Ap

ril

19

94

South Africa - Leveraging Defining Moments

The Rainbow Nation South Africa - Leveraging Defining Moments

South Africa - Leveraging Defining Moments 1995 : Rugby World Cup

South Africa - The Fading Rainbow

s)

South Africa - Creative Communications

1994 1998 2002 2010 2011 2014 2030

The Nation Brand’s Journey

Peaceful Democracy

Growth Millennium World Attention

(springboard)

Vision 2030

First Division

South Africa - The Nation’s Brand Journey

North Star

Rising Star

Rainbow Nation

Fading Rainbow

International Marketing

Council (BRAND SA)

2010 World Cup Vision SA

20-Years Democracy

South Africa - The Second Defining Moment

DESTINATION OR SPRINGBOARD ?

South Africa - The Second Defining Moment

31 CRIME –FREE

DAYS

DELIVERED ON

FIFA’S

GUARANTEES

ALIGNED

STAKEHOLDERS

MANAGED

THE (20 000)

MEDIA

30 BILLION

GLOBAL TV

VIEWERS

MAGNIFICENT

STADIUMS

MOBILISED

THE NATION

WE DELIVERED

A WORLD-CLASS

SOUTH AFRICAN

WORLD CUP

309 000

VISITORS

R 3.64

BILLION)

THE WORLD

WAS

IMPRESSED

BAFANA

BAFANA

PERFORMED

UPGRADED

INFRASTRUCTURE

(R 25 Billion)

South Africa - World Cup Achievements

Alignment

Mobilisation

Intelligence

Preparation

2009 2010 2011 2012

2010

MILESTONE Defining Moment

Proof of Potential

Brand South Africa “THE NEXT BIG THING”

(within Vision 2030)

South Africa - Beyond 2010

POSITIONING

VALUE PROPOSITION

South Africa - Beyond 2010

Mobilise South

Africa to define

South Africanness

‘The Next

Big Thing’

INTERNAL EXTERNAL

SA

Valu

e

Pro

po

sit

ion

South Africa - Beyond 2010

South Africa - The Need for Reputation Management

THE SOUTH AFRICAN ‘REPUTATION SCORECARD’ POST 2010

NEGATIVES

IMD COMPETITIVE RATING 44 TO 52 (OF 59)

ACCESS TO INFORMATION BILL STILL UNRESOLVED

MISMANAGEMENT OF DALAI LAMA VISA

SA’S VOTING POLICY ON KEY HUMAN RIGHTS (E.G. SYRIA)

NO ACTION AGAINST ‘DISGRACED’ MINISTERS (SHICEKA, CELE)

GOVERNMENT PROPERTY LEASES- GOVERNMENT INTRANSIGENCE

POLICY UNCERTAINTY RE: NATIONALISATION

PROTRACTED MALEMA DISCIPLINARY HEARINGS

WALMART INTERVENTION BY GOVERNMENT

BAFANA’S IGNOMINIOUS EXIT FROM THE AFCON QUALIFIERS

SOUTH AFRICA- WHERE ARE WE NOW?

POSITIVES

WEF COMPETITIVENESS POSITION UP FROM 54 TO 50 of 142 (BUT WAS 45 IN 2009)

ARMS DEAL COMMISSION ANNOUNCED (BUT DO WE BELIEVE IN ITS INTEGRITY?)

CRIME STATISTICS DOWN (BUT TOO LITTLE DETAIL)

FINANCIAL INSTITUTIONS RESILIENCE/ SOUNDNESS OF BANKS

BUSINESS SCHOOLS PERFORMANCE IN WEF COMPETIVENESS INDEX (13/142)

KING III/ COMPANIES ACT INTRODUCED (ALBEIT WITH SOME DELAYS)

INCLUSION INTO BRICS (BUT NOT ACKNOWLEDGED BY JIM O NEIL- INVENTOR)

SUCCESS OF SA COMPANIES IN AFRICA (MTN, SHOPRITE, SAB MILLER)

HOSTING OF THE CLIMATE CHANGE CONFERENCE IN DURBAN IN 2011

HOSTED THE INTERNATIONAL OLYMPIC COMMITTEE GLOBAL CONFERENCE IN DURBAN (WELCOME A BID FROM AFRICA)

THE SOUTH AFRICAN ‘REPUTATION SCORECARD’ POST 2010

NEGATIVES:

PRODUCER DRIVEN INFLATION RISING (ENERGY, FUEL PRICES)

ANC FUNDING AND CHANCELLOR HOUSE

CRICKET SOUTH AFRICA (AND MOST OTHER SPORTS ADMINISTRATIONS)

NO BID FOR 2020 OLYMPICS DESPITE IOC ENCOURAGEMENT AND MINISTER’S SUPPORT

FDI AND M+A ACTIVITIES DOWN

TOLL ROADS MISMANAGEMENT/ MISCOMMUNICATION

EDUCATION DEPARTMENT UNDERPERFORMANCE/ SHORTCOMINGS

RESTRICTIVE LABOUR LAWS DISCOURAGE JOB CREATION: NO MEANINGFUL EMPLOYMENT CREATION- UNEMPLOYMENT

LIFE EXPECTANCY 51 YEARS. PLACES SA IN 130TH POSITION OF 142 IN WEF

HEALTH/ PRIMARY EDUCATION PERFORMANCE IN WEF (131/142)

CRIME AND CORRUPTION (BUSINESS COST OF CRIME/ VIOLENCE (136/142)

SHORTAGE OF ENGINEERS, SCIENTISTS, ARTISANS

SOUTH AFRICA- WHERE ARE WE NOW?

SOUTH AFRICA– HOW DO WE GET THE MOMENTUM BACK ?

VISION 2030: 11-11-2011

SOUTH AFRICA- WHERE TO FROM HERE?

South African Scenarios

IMD (59 NATIONS)

PROMOTION CANDIDATES:

NIGERIA MAURITIUS

AFGHANISTAN SOMALI

LIBYA MYANMAR ZIMBABWE

SOUTH AFRICA- WHERE TO FROM HERE?

SCENARIO 3

SOUTH AFRICA IMPLODES INTO A FAILED STATE

•ARAB SPRING COMES TO SA •DOMESTIC VIOLENCE •NATIONALISATION •LAND GRABS •EMIGRATION

10% (10%)

DESCRIPTION

IMPLICATION

Probability

SCENARIO 1

SOUTH AFRICA UPS ITS GAME AND CONSOLIDATES A POSITION IN THE TOP 30 (A BRAND SA TARGET FOR 2020)

•POWERHOUSE OF AFRICA •UNITED STATES OF SOUTHERN AFRICA •ECONOMIC GROWTH •JOB CREATION •LEADERSHIP INSPIRES •VISION 2030 INSPIRES

50% (60%)

SCENARIO 2

SOUTH AFRICA GETS RELEGATED TO THE 2ND DIVISION AND IS REPLACED BY NIGERIA IN THE PREMIERSHIP

•BRICS CREDIBILITY? •TAX REVENUES DOWN •FDI DOWN •RISK PROFILE DOWNGRADE •BUDGET SHORTFALL •TOURISM SURVIVES

40% (30%)

SOUTH AFRICA- WHERE TO FROM HERE?

Key Indicators 1. NATIONALISATION: viewed by the world as a retrogressive step

2. NATIONAL HEALTH INSURANCE: clumsy implementation, decline in private care and

emigration of talent/ skills

3. MEDIA TRIBUNAL WITH PUNITIVE POWERS: freedom of speech is a cornerstone of

Brand SA

4. LANDS GRABS: the Zimbabwean REALITY

5. LEADERSHIP: United, inspirational leaders that are visionary and accountable

6. POCKETS OF EXCELLENCE: increase or decrease e.g.. SARS, Model C schools

7. ECONOMIC GROWTH AND JOB CREATION: Government can create some jobs via public

works but their main contribution is to facilitate business based on SMMEs and

entrepreneurship flourishing

8. CONVENING OF AN ECONOMIC CODESSA: are we ready for this?

9. LABOUR PRACTICE RESTRICTIONS: reduced/ increased

10. STRONG PAN AFRICAN TRADING FOCUS

11. STRONG PRODUCTIVITY DRIVE: in return for ‘increased pay’

12. SERVICE DELIVERY (LEARN FROM THE WORLD CUP AND WESTERN CAPE)

13. UNIVERSAL BUY IN TO AN INSPIRATIONAL NATIONAL VISION

14. CRIME AND CORRUPTION: exposed and addressed?

15. THE USE OF THE EXPRESSION ‘THE RULING PARTY’ VERSUS THE GOVERNMENT

OF SOUTH AFRICA

16. REFER TO SOUTH AFRICANS NOT DEMOGRAPHIC/ ETHNIC/ RACE GROUPS

17. DEFINE SOUTH AFRICANESS- IN TERMS OF VALUE AND BEHAVIOURS

BRAND SOUTH AFRICA

THE FUTURE OF BRAND SOUTH AFRICA WHY IT MATTERS AND WHAT NEXT ?

BRAND SOUTH AFRICA

“Be the change you want to see in the world”

-Gandhi

THANK YOU