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« Engineering the Starbucks Experience | Main | Extending Your Brand to Employees »

June 21, 2007

The Branding of Nations

Companies, products, universities, museums, municipalities and individuals brand themselves.  Why not nations?  After all, they have more at stake then almost any other entity – tourism, exports, foreign direct investment, industry formation/focus, immigration, satisfied citizenry, national heritage and support of domestic and foreign policy, to name a few.

Some countries or regions that have attempted to brand themselves include the UK, USA, Brazil, Mexico, Costa Rica, South Africa, Australia, New Zealand, Hong Kong, Ireland, Scotland, Singapore, Portugal, Spain, Thailand and Dubai.

Branding nations is an extraordinarily complex task. The stakeholders are legion (politicians, businesses, industries, citizens, etc.) as are the potential target audiences (tourists, immigrants, business and political leaders, etc.).  It is extremely difficult to control a nation’s image because of all of factors that can influence that image.  Because so many factors contribute to that image and because brand building is such a long term process, it is also very difficult to measure the effectiveness of even a very well funded re-branding campaign.

Impressions are created by foreign policy including diplomatic and military strategy, participation in multinational discussions and agreements, immigration and trade policy, foreign aid, alliances and media briefings.  Impressions are also created by exports (especially exported media and high profile product brands), tourism, study abroad, exchange programs, friends, relatives, and business associates residing in (or visiting) the country, the hosting of international events (cultural, sporting) and the domestic and foreign press.  The culture itself is a significant contributor to brand identity as is the nation’s brand building capacity (resources and marketing savvy).  A brand’s perceptions will also be influenced by how long the nation has been an active part of the world community and known by the world community.  Put another way, industrialized countries that export have more brand awareness and “country of origin” associations than developing countries that do not.

“Country of origin” can be important in lending credibility and quality assurances to certain product or service categories.  For instance, Switzerland is known for it precision watch making, Russia for its vodka, Scotland for its cashmere, salmon and whiskey, Germany for its well engineered automobiles, New Zealand for its lamb, France for its wine, Belgium for its chocolates, lace and beer, The Netherlands for its tulips and Japan for its consumer electronics and automobiles (Honda, Toyota).

Countries also have distinctive personalities. 

America is known for its prosperity, innovation, opportunity and freedom.  Canada and Australia are increasingly known for similar qualities.  France is known for its fashion, culture and food.  Italy for its art and fashion.

And nations often have other top of mind brand associations (that may work for or against them):

Australia (Sydney Opera House, Great Barrier Reef, The Outback, kangaroos, prisoner colony origins), South Africa (apartheid, Nelson Mandela), Austria (Vienna/Mozart/Music, Arnold Schwarzenegger), Canada (hockey, Mounties, maple leaves), Germany (Hitler, The Black Forest, polkas, lederhosen), Switzerland (The Alps), Tanzania (Mt. Kilimanjaro, safaris), UK (London, Royalty, lousy weather, bland food), USA (cowboys, New York City, George Bush, entertainment, materialism), Ireland (potatoes, greenery), China (The Great Wall, emerging manufacturing prowess, emerging world power), Brazil (Carnival), Mexico (sombreros, siestas, Mexican food), Scotland (bagpipes, tartans) and The Netherlands (windmills, wooden shoes, canals, dams).

An interesting exercise to better understand a nation’s top-of-mind brand associations is to ask people of various countries what comes to mind when they see “Made in the USA,” “Made in China,” “Made in Ecuador,” “Made in Japan,” “Made in Taiwan,” “Made in Mexico,” “Made in Brazil,” etc.  What product categories come to mind?  What quality comes to mind?  What styling?  What cultural influences?  Or does nothing come to mind?  A variation on this exercise is to solicit peoples’ reactions to the “Made in [country]” label applied to various product categories for the country or countries in question.

When branding nations, one should think about the following.  Actions taken in positioning the brand can only influence brand perceptions, not control them.  The most important consideration in nation branding is maintaining brand integrity.  That is, telling the truth about who you are.  False claims will be exposed and will likely have an adverse effect on the nation.  It is particularly important to understand how a given brand message will be perceived by people in different cultures.  Look at what you are communicating from their perspectives and sets of values, not your own.  As is true for any brand message, to be effective, it must be relevant, believable and unique.  Extensive research will uncover current perceptions and the most lucrative possibilities for repositioning.  It is always more advantageous to build upon brand strengths rather than to try to overcome brand weaknesses.  And, in branding nations, patience is a virtue that will reward those who possess it.

Countries would do well to constantly monitor what the foreign press writes about them.  Historically, when there has been a conflict between the message sent by a nation’s culture and its politics, many people outside of that nation would understand and accept that seeming contradiction.  A recent (2005) Pew Center of Global Attitudes poll might indicate that this is changing based upon Indonesia and Pakistan’s improved view of the USA but their declining view of Americans (so that the two perceptions are becoming more closely aligned).

India successfully repositioned itself from “impoverished” to “a place for spiritual renewal” to attract more American tourists.  It is also increasingly seen as a world hub for IT support with Bangalore at that perception’s epicenter.  The UK is repositioning itself away from several entrenched negative perceptions – cold, arrogant, lousy weather, bland food, etc. – to the new Britain that includes a renaissance in its film, fashion and food industries and its emerging dominance in computer game design.  China too is coming of age as a new brand as it becomes the source for more and more of the world’s manufacturing and builds new towns and cities almost “overnight.”

So far, only a small number of countries have begun actively branding themselves to the world.  This will become an increasingly important activity as more and more countries understand what is at stake.  This could become an important step in helping developing countries accelerate their development.  After all, tourism often leads to consumerism and foreign direct investment.  An effectively positioned brand can help with each of these components.

Example Branding Themes

•Columbia: Café de Columbia (initiated by the National Federation of Coffee Growers of Columbia to position Columbia as the source of high quality coffee, features Juan Valdez and his mule) (1981)

•Spain: Everything Under the Sun (featuring Joan Miro’s sun design as its logo to communicate a general attitude of optimism) (1982)

•Costa Rica: No Artificial Ingredients (developed by the Costa Rican Tourism Board to position Costa Rica as an “ecotourism” destination) (1996)

•UK: Cool Britannia (launched by Blair’s government after its 1997 electoral victory, informed by Geoff Mulgan and Mark Leonard’s book BritanA™ and Ben & Jerry’s “Cool Britannia” ice cream flavor introduced in 1996) (1997)

•Australia: Australia Made (1999)

•Hong Kong: Asia’s World City (“where opportunity, creativity and entrepreneurship converge”) (2005)

•New Zealand: 100% Pure New Zealand

•South Africa: Alive with Possibility™

•India: Eternally Yours

•Thailand: Amazing Thailand

Sponsored By: Harvard Business School Press

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Comments

Brad, I recently wrote about this very topic - albeit from a slightly different angle - here.

(If the link doesn't work, paste this into your browser window: http://thebrandbuilder.blogspot.com/2007/06/one-more-us-branding-debacle.html )

A large part of branding is based on what an entity does rather than the message it tries to convey. Brand USA is currently not in great shape, and I doubt that a tagline or a PR campaign would help - Not unless the entire country gets on board (Foreign policy is an important element, but there are oodles of others).

Great piece. :)

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