nation branding' by dr. syed ferhat anwar sir

NATION BRANDING

CONTEMPORARY STUDY FROM A GLOBAL BUSINESS PERSPECTIVE

Dr. Syed Ferhat AnwarProfessor

Institute of Business Administration, University of Dhaka

Toyota

Japanese automobile manufacturer

Toyota

Japanese automobile manufacturer

Aarong

Bangladeshi handicrafts manufacturer

Mercedes-Benz

German automobile manufacturer

1. What is a Nation Brand?

‘A nation’s “brand” generally refers to the common images, perceptions and associations people have with that nation. Therefore, “nation branding’ is an important tool used by countr ies to create, change or promote a dist inct self- image and international reputation that serves the nation’s interests in a positive and effective way.’

IN OTHER WORDS….

“A PROMISE that a nation makes.”

Does it DELIVER?

TWO KEY SCHOOLS OF THOUGHT

Simon Anholt

Wally Olins

CONVERGING ON….

“DEVELOPING A NATION’S IMAGE TO BE ABLE TO CREATE A PROMISE

Does it DELIVER?

2. Why is Nation Branding important?

COMPETITIVEADVANTAGE

BUSINESSES

GETTINGGLOBAL

Manufacturing is Globalized

Designed in the

USAMade in

VIETNAM

Air Zoom Sole made in

CHINA

Sold at over 700 stores in 6 continents

NIKE

SERVICES ARE GLOBALIZED

Philippines leads the offshore call center business globally with over 400,000 call center agentsA New Capital of Call Centers, New York Times, November 2012

Nations are constantly competing over

MANUFACTURING . OUTSOURCING . R & D . BANKING & FINANCE . EDUCATION . TOURISM . SPORT . CULTURE & HERITAGE . CUISINE . AGRICULTURE . NATURAL RESOURCES . CREATIVE INDUSTRIES .

In nations, global stakeholders assess:

• COST OF PRODUCTION• FINANCIAL INCENTIVES (TAX

BREAKS)• BUSINESS ENVIRONMENT• INVESTMENT CLIMATE• POLITICAL & ECONOMIC

STABILITY• EDUCATION & SKILLS OF

WORKFORCE

• COUNTRY REPUTATION• WEATHER

• ENTERTAINMENT FACILITIES• PEOPLE &

HOSPITALITY• CULTURE• TOURISM

• SOFT POWER

3. How isNation

Branding assessed?

i. ANHOLT-GFK NATION BRANDS INDEX

Anholt-GFK Nation Brands Index

NATION BRAND

Tourism

ExportsPeople

Culture & Heritage

Investment & Immigration

Governance

Nation Brand

Hexagon®

Anholt-GFK Nation Brand Index: Overall Brand Ranking (top 10 of 50 nations)

2013 NBI rank

Nation 2012 NBI rank

1 United States 12 Germany 2 3 United Kingdom 3 4 France 4 5 Canada 5 6 Japan 6 7 Italy 7 8 Switzerland 8 9 Australia 9

10 Sweden 10 --- --- ---20 Brazil 20 22 Russia 22

23 China 2331 India 27

ii. BrandFinance Nation Brand Impact TM Framework

METHODOLOGYNation Brand Impact TM Framework Segments:• Investment• Tourism• Product• Talent

+General Segment

Categorized as:

• Inputs – controllable factors

• Throughputs – internal & external reputation

• Outputs – measures of current performance

Each worth33%

Factors: quality of workforce . ability to attract foreign talent . perception of quality and life . projected GDP growth

Tools: government statistics . consensus forecasts . analyst projections . royalty rate to quantify brand value

BRAND STRENGTH INDEXRating range:AAA – very strongto DDD - failing

Most valuable nation brands according to BrandFinance1.

2. 4.

3.

5.

6.

7.

8.

9.

10.

Winners (% Brand Value increase) 2013

48% increase in Brand Value, US$ 304 Billion Brand Value

Hub for Islamic BankingGrowing demand for Palm oil

Firm National progress (GDP 2020 target to be reached in 2018)

46% increase in Brand Value,

US$ 45 Billion Brand Value

38% increase in Brand Value,

US$ 83 Billion Brand Value

iii. Bloom Consulting Country Brand Ranking©

Bloom Consulting

Bloom Consulting Country, Region, City (CRC) Brand Wheel

Country Brand Ranking Trade ( Investment) Edit ion 2013

1.

2.

3.

4.

5.

70.

Ranking system for Tourism

Variables:

• Tourism Economic Performance: Tourism economic receipts + Tourism economic growth

• Online Search Demand (OSD) based on Brand Tags: Culture + Leisure + Nature + Sports + Niche markets • National Tourism Organization (NTO) effectiveness

• Website Analytics & Social Media

Country Brand Ranking Tourism Edit ion 2013

1.

2.

3.

4.

5.

160.

iv. FutureBrand Country Brand Index

HIERARCHICAL DECISION MODELAWARENE

SSFAMILIA

RITY

ASSOCIATIONS

PREFERENCE

CONSIDERATION

Do key audiences know that the country exists? How top-of-mind is it?

How well do people know the country and its offerings?

What qualities come to mind when people think of the country? Association dimensions: Value System, Quality of Life, Good for Business, Heritage and Culture and Tourism.

How highly do audiences esteem the country? Does it resonate?

Is the country considered for a visit? What about for investment or to acquire or consume its products?

DECISION/VISITATION

To what extent do people follow through and visit the country or establish a commercial relation?

ADVOCACY

Do visitors recommend the country to family, friends and colleagues?

FutureBrand 2012-13 Top Country Brands

1.

110.

10.

2.

3.

4.

5.

6.

7.

8.

9.

BANGLADESH STANDINGS AND TAKEAWAYSMETHOD

STANDING

TAKEAWAYS

ANHOLT-GFK NATION BRANDS INDEX

- -

BrandFinance Nation Brand ImpactTM Framework

Rating: A-Value: US$ 83 Billion

• Strengthen Domestic Brand and Value

• Emphasize investmentBloom Consulting

Country Brand Ranking©

Tourism: 160th

Trade: 70th

• Strengthen, Online Service Delivery, Internet Presence and Build strong online journalistic presenceFutureBrand

Country Brand Index

Rank: 110th • Overcome negative perception

• Develop investment and tourism

4. Phases of Nation Branding

i. Identi fy ing exist ing issues with the current brand

a. Capitalizing on core competencies

Education

R & D

AutomobilesFinancial institutes

Luxury items

Oil R&D

i. Identi fy ing exist ing issues with the current brand

b. Combatting negative image

MADE IN CHINA associated with poor quality

USSR disintegration in 1991; recession in the late 90s

Drug trafficking

Apartheid, poverty,corruption

NBI # 31

NBI # 25 NBI # 36

c. Combating dilute image

Overpopulated, corrupt, prone to natural disasters

Post split from Malaysia in 1965, suffered identity crisis

Had to distinguish itself from China

ii. Start ing the process of brand del ivery

• U.S. Government has long recognized the importance of public support for research universities.

• Oil Reserve discovered in 1969

• R&D and investment in petro-based industries

• Government formed a separate ICT ministry in 2011

• Also begun work on establishing two hi-tech parks in Gazipur and Jessore.

• Software and hardware industries working on ICT to be employed for these massive establishments.

a.Peopleb.Mediac. IRd.Military e.Ministriesf. Education & Service Sectorg.Investmenth.Private toolsi. Exportsj. Special Events

iii. The tools used for Brand Propagation


a. People

• Promoting nationalism among citizens

• In essence, a nation’s people, beliefs and history give rise to a Nation’s Brand identity (Core Values), which gives rise to a Nation’s Brand Effect (NBE), which in turn sustains and reinforces both—a literal full cycle of Brand building

Beliefs, History

Nation Brand Identity

Nation Brand Effect


b. Media

• Media, being the primary tool to join the audience with the message, is vital for brand perception.

• Both authorized and unauthorized media are relevant

• China routinely “controls” the news coverage to remove damaging news within the authorized sphere, while there is huge censorship on social media websites

• In Bangladesh & Pakistan, there is relative freedom of the press, but the coverage tends to be more negative, in both formal and informal media, particularly for Rana Plaza and the social media

• USA and Israel carefully control international coverage of interventions (CNN, BBC) to provide a positive outlook of activities to foster a sense of optimism.


c. International Relations• Germany and France within the EU

• USA within the NATO

• Russia within customs Union

• Iran within its region

• Saudi within the Middle East

• The currency swap deal between China and South Korea• • Bangladesh has entered a bilateral arms deal with Russia, while also

recently gaining co-operation from Japan as a 6bn promissory investment, and proposals of aid for nuclear reactor.


d. Military Statement• USA maintains its status as the #1 country in the world • Russia and China are militarily active as well.


e. Ministries

1.Tourism/Culture

2.Encouraging Immigration

3.Promoting R&D

• Ranked 37th in the world in education spending as a percentage of gross domestic product, however, US remains the best-represented country in the rankings

• While private US universities continue to dominate the top tiers of the ranking, public universities have dropped an average of 20 places since the financial crisis of 2007/8.


f. Education & Service Sector

• recipient of the 3rd largest amount of FDI in the world.

• third-largest foreign exchange market in Asia and the sixth-largest in the world.

• spent billions to build Burj al Khalifa

• Developing Dubai as the commercial hub of the world


g. Investment


h. Private tools

• Apple Inc.’s “Think Different Campaign”—which attaches to the US Core Values of independence, self expression, freedom, creativity, etc. when we purchase an Apple, we are really buying the Core Values of America (Nation Brand) and Apple (Corporate Brand)

• Private universities of USA has helped to establish the best education system in the world, further fostering USA’s nation branding

• South Korea, focused on building up large economic champions, laying the foundation for successful South Korean brands in the world market, such as Samsung and LG, KIA and Hyundai.

• Bangladesh ‘s BGMEA working on RMG branding


i. Exports

• 2nd highest exporter in 2012: $1.564 trillion • 3rd highest exporter in 2013: $1.497 trillion

• 6th in BSI Investment Ranking 2013

• 1st in BSI Goods & Services Ranking 2013

Top 5 Exports

1.Refined Petroleum (4.2%)

2. Planes, Helicopters, and/or Spacecraft (3.2%)

3. Packaged Medicaments (3.1%)

4. Cars (2.7%)

5. Gas Turbines (2.4%)

*according to The Observatory of Economic Complexity


j. Special events

• Copenhagen Hosted the environmental summit (post Kyoto)

• Set a goal of carbon neutrality by 2025

• hosted (partially) ICC World cup, t20 world cup and concurrently ran the beautiful Bangladesh campaign to boost nation brand

Perception of Bangladesh

Political violence

Natural disasters

Poverty

Poverty

Between 1990 and 2010 life expectancy rose by 10 years, from 59 to 69

Bangladeshis now have a life expectancy four years longer than Indians, despite the Indians being, on average, twice as rich. as the rich.

Even more remarkably, the improvement in life expectancy has been as great among the poor as the rich.

Poverty

“over the past 20 years, Bangladesh has made some of the biggest gains in the basic condition of people’s lives ever seen anywhere.”

The most dramatic period of improvement in human health in history is often taken to be that of late-19th-century Japan, during the remarkable modernisation of the Meiji transition. Bangladesh’s record on child and maternal mortality has been comparable in scale.

http://www.economist.com/news/briefing/21565617-bangladesh-has-dysfunctional-politics-and-stunted-private-sector-yet-it-has-been-surprisingly

Prevalence of undernourishment in total population

16.3%

Income Inequality (GINI index)

Health achievements

Natural disaster resiliency

Bangladesh - Key Tourism Indicators - International tourism, receipts (current US$)110,000,000(current US$)in 2012

Tourism

• Number of Banks: Economic Freedom

Country Economic Freedom Growth

Sri Lanka 60 - 0.7

India 55.7 0.5

Pakistan 55.2 0.1

Bangladesh 54.1 1.5

Year Proposed Local Investment

Proposed Foreign

Investment

Total Proposed Investment

Growth %

Project BDT Project BDT Project BDT

2005-2006 1754 18370 135 24986 1889 43356 124.622006-2007 1930 19658 191 11925 2121 31583 -27.152007-2008 1615 19553 143 5433 1758 24986 -20.892008-2009 1336 17117 132 14749 1468 31867 27.542009-2010 1470 27414 160 6261 1630 33678 5.672010-2011 1298 39976 148 26935 1446 66912 98.71

2011-2012 1604 497078 209 338910 1813 835989 212

Bangladesh was the second favored investment destination in South Asia last year: UNCTAD

Of the $1.6 billion FDI that Bangladesh received on 2013$541 million came as equity (direct investment in Bangladesh)$361 million as intra-company loans (debt transactions between parent enterprises and affiliates) $697 million were reinvested earnings (investors' share of profits not distributed as profits).

The current government’s Digital Bangladesh by 2021 vision proposes to mainstream ICTs as a pro-poor tool to eradicate poverty, establish good governance, ensure social equity through quality education, healthcare and law enforcement for all, and prepare the people for climate change

• Human Resource Development

• Connecting Citizens

• Digital Government for Pro-Poor Service Delivery

• ICT in Business

GOVERNANCE

Exports

Peacekeeping

•Bangladesh now contributes the largest number of female police to UN peacekeeping operations with around two hundreds female officers & peacekeepers serving in eight UN peacekeeping missions

In terms of leadership, In 2013 Bangladesh has been elected the Vice-Chair of the United Nations Peace Building Commission (UNPBC), the UN advisory body that supports peace efforts incountries emerging from conflict

Thank You