Nation Branding versus Commercial

Branding– Similar Principles,

Different Practices

- a presentation by
Dr. Alan C. Middleton
- Leger Marketing
- September 23rd 2009
“Brands – both domestic and international – have almost
always appeared in the past as a consequence of
certain levels of market sophistication and economic
and social development……………it is feasible to fast
track the creation of export brands……a wide range of
benefits can accrue to both the company and its home
country.
I would argue that the development of international
brands is, in today’s globalized world, as inevitable and
essential as the development of domestic brands has
been in the past.”
Simon Anholt 2006
 Agenda

• Commercial Branding
• Nation Branding
• Examining the National Branding Virtuous
Circle
• Nation Brand Planning
• Conclusions
 Global Brandscape #1 - Commercial
CocaCola IBM Microsoft GE Nokia McDonald’s Google Toyota
Intel Disney HP MercedesBenz Gillette Cisco BMW
YvesSaintLaurent LouisVitton Marlboro Honda Samsung Apple
H&M AmericanExpress Pepsi Oracle Nescafe Nike SAP Ikea Sony
Budweiser UPS HSBC Canon Kelloggs Dell Citi JPMorgan
GoldmanSaks Nintendo ThomsonReuters Gucci Philips Amazon
L’Oreal Accenture eBay Siemens Heinz Ford Zara Wrigley
Colgate AXA MTV Volkswagen Xerox Morgan Stanley Nestle
Chanel Danone KFC Adidas Blackberry Yahoo Audi Caterpillar
Avon Rolex Hyundai Hermes Kleenex UBS Harley-Davidson
Porsche Panasonic Tiffany Cartier Gap

Source: Interbrand Most Valuable Global Brands 2009 (issued September 19th )
Commercial Branding
 Canada Brandscape #1 - Commercial
RBC Blackberry TDCanadaTrust Manulife Bell Scotiabank
Loblaws Bombardier BMO CIBC Rogers ShoppersDrugMart
Telus CN Petro-Canada CanadianTire SunLifeFinancial
AirCanada ESSO TimHortons Enbridge CanadianPacific
YellowPages ShawCommunications LondonLife Magna SNC-
Lavalin CanWest Qubecor CanadaLife NationalBankofCanada
Great-WestLife Sobeys EnCana RONA Macs/CoucheTarde
Barrick Sears Husky MapleLeaf Metro ING CanadaBread
Aeroplan Cognos JeanCoutu MTS BrookfieldProperties
Source: Brand Finance Canada’s Most Valuable Brands 2009
 What is a Brand

To the target group,

- a promise of benefits consistently delivered
with the highest level of satisfaction versus
direct and indirect competitors
 Canada Brandscape # 2 - Commercial
Google Sony TimHortons Presidents Choice
ShoppersDrugMart Staples Panasonic Kraft Toyota
CanadianTire Subway Rona TheHomeDepot Honda CTV
Sears Purolator Samsung HomeHardware CBC Westjet GE
McCain The Bay FedEx Nestle IBM Apple Costco/PriceClub
Zellers Microsoft P&G CanadaPost Yahoo Molson Mazda
Cineplex Labatt Nissan ViaRail Bayer Pepsi-Cola Coca-Cola
Macs LG Bombardier FutureShop CN TDCanadaTrust
GlobeandMail UPS Sleeman Wendy’s SecondCup Motorola
L’Oreal Harveys RBC/Royal Bank BMO/BankofMontreal
Alcan BestBuy Scotiabank Rexall/PharmaPlus 7-Eleven
Grand’nToy Quiznos Hyundai RIM
Source: Leger Marketing Top companies in Canada in reputation
and awareness 2009
 What makes a Commercial Brand

Name, Company, Logo/Symbol, Physical

space/design, Product(design +
performance), Employees, Service,
Guarantee, Distributor reputation/display,
Price, PR/Publicity, Consumer Promotion,
Advertising Media and Message, Direct
Marketing, Perceived users, Current word of
mouth, Historical associations, competitor’s
historical/current activity.
 Brand Ecology:
Commerce, Culture and Community

Mission-critical employee
recruitment, retention and
engagement

Commerce
social capital internal culture

Role of
brand

Building strong
community connections Community Culture
(place-based and virtual)

shared values
and meaning Keeping pace with evolving
cultural and social mores
(zeitgeist)
 Brand Management Principles

1. Identify target audiences, their needs/wants

and the benefits your brand can deliver
2. Determine core values/essence of the brand
3. Recognise the stages of Brand Building:
i) Differentiation )
ii) Relevance )............Brand Vitality
iii) Esteem )
iv) Familiarity ).............Brand Stature
Source: Y&R BrandAsset Valuator - BAV /Landor
 Brand Management Principles

4. Ensure the product/service delivers the

benefit based on the distinctive essence of
the brand:
- Commercial: both function and
image/personality
- Culture: internal and impact externally
- Community: be current with business
environment issues
5. Track progress versus goals and competitors
Nation Branding
Nation Brands
 Nation Branding

“the unique multi-dimensional blend of

elements that provide the nation with
culturally grounded differentiation and
relevance for all of its target audiences”

Keith Dinnie 2008

 Nation Branding

“A nation brand is like the proverbial super tanker

which takes five miles to change course and eight
miles to stop.
In many cases all that the ‘managers’ of the nation
brand can realistically hope to do is to identify and
isolate the positive existing perceptions of the
country and calculate how to enhance whatever
contributes to these in the country’s external
communications, while downplaying anything that
doesn’t.”
Simon Anholt 2006
 Nation Branding

“…what really seems to make a difference to

the images of countries is when they become
dedicated to developing new ideas, policies,
laws, products, services, companies,
buildings, art and science.”

Keith Dinnie 2008

 Global Brandscape # 2 - Nations
Germany France UK Canada Japan Italy US
Switzerland Austria Sweden Spain Netherlands
Norway Austria Denmark Scotland NewZealand
Finland Ireland Belgium Brazil Russia Iceland
Singapore Argentina Mexico India Hungary
China Poland CzechRepublic Egypt SouthKorea
Thailand Taiwan Turkey SouthAfrica Chile
Malaysia Peru Romania Lithuania Indonesia
Estonia Arabia Cuba Ecuador SaudiArabia
Nigeria Iran

Source: Anholt’s Nation Brand Index 2008: tourism, people, exports, governance, culture &
heritage, investment & immigration
 Nation Branding
Countries are more complex than just commercial or
cultural interests, but must be pro-actively managed:
• Three issues are directly impacted by and impact
country reputation:
- FDI
- Tourism
- Country of Origin effects on goods and services
• Commercial brands are increasingly transmitting
national culture
• Brand informed images may negatively stereotype
countries
• Tourism pushes certain images that may negatively or
positively impact other commercial and/or political
sectors
 What makes a Nation brand
Name, Flag/Symbols, physical space, vivid flora,
fauna and animal/bird/insect life, Government
type and policies, legal system and practice,
cultural products and habits (art, music,
dance, food, beverage etc) commercial
products/services it is best known for,
citizen’s ethnic origins and behaviors, service
given to visitors, agents who represent it, cost
of living and visiting, PR/Publicity, consumer
promotion, advertising media and message,
direct
marketing, current word of mouth, historical
associations, competitor’s historical/current
activity
 Nation Brand Planning

People Promoting Tourism

Culture Brand Strategy Exporting Brands

Inward Investment (FDI) Foreign & Domestic

recruitment policy

Source: Simon Anholt National Brand Hexagon 2006

 Nation Branding

Active Nation Branding Strategies:

- Britain
- Egypt
- Germany
- New Zealand
- Scotland
- South Korea
- Spain
Benefits of a Positive Nation Brand Image

• Increase currency stability

• credibility and confidence by investors
• Manage ratings
• Increase political influence
• Export growth of branded products and services
• Inbound tourism and investment
• Better international partnerships
• Nation building (confidence, pride, harmony, ambition,
national resolve)
• Transparency aid
• Manage environment and human rights reputation
• Access to broader global markets
• Aids competitive advantage for governments and commercial
enterprises domestically and internationally.

Source: Paul Temporal 2001

The Nation Branding Virtuous Circle

Commercial Brands

FDI Tourism

National Identity/Activity
The Nation Branding Virtuous Circle

Commercial Brands

FDI Tourism

National Identity/Activity
 Strong Commercial – Nation Brands
Top Ten
Minor Country Brands
• US • Australia
• England • Holland
• Scotland • Ireland
• France • Canada
• New Zealand
• Germany Finland
•
• Japan • Spain
• Scandinavia • Taiwan
• Switzerland • Wales
• South Korea • Portugal
• Belgium
• Italy

Source: Simon Anholt

 Nation Transformations

• Japan
• Taiwan
• South Korea
• Ireland
• Denmark
• New Zealand
• China
• India
The Nation Branding Virtuous Circle

Commercial Brands

FDI Tourism

National Identity/Activity
 Global Brandscape #3 Tourism
France Spain USA China Italy UK Germany Ukraine
Turkey Malaysia Mexico Greece Austria Russia
Canada HongKong Poland Thailand Macau Portugal
SaudiArabia Netherlands Egypt Croatia SouthAfrica
Hungary Switzerland Japan Singapore Ireland
Morocco UAE Belgium Tunisia CzechRepublic
SouthKorea Indonesia Sweden Bulgaria Australia
Brazil India Denmark Argentina Bahrain Vietnam
DominicanRepublic Norway Taiwan Puerto Rico

World Tourist Organization 2007 (UNTWO World Tourism Barometer

June 2008)
 Canada’s Brand Challenge - Tourism

# 4 in overall regard
# 15 in tourist visits:
France 81.9 million
-
Spain, US, China 50 million+
-
Italy, UK, Germany, Ukraine, Turkey, Malaysia, Mexico, Greece, Austria, Russia 20 million +
-
- Canada 17.9 million!!
The Nation Branding Virtuous Circle

Commercial Brands

FDI Tourism

National Identity/Activity
 GDP (US$ billions 2008*)

• US 14,204 #11 Canada 1,400

• Japan 4,909 • India 1,217
• China 3,860 • Mexico 1,086
• Germany 3,653 • Australia 1,015
• France 2,853 • South Korea 929
• UK 2,646 • Netherlands 860
• Italy 2,293 • Turkey 794
• Brazil 1,613 • Poland 527
• Russia 1,608 • Indonesia 514
• Belgium 498
• Spain 1,604
World Bank 2008 World Development
Indicators Atlas method
July 2009
 GNI/capita at PPP (2008)

• Norway (4) 58,500 • Finland (31) 35,640

Singapore (10) 47,940
•
US (11) 46,970
• Japan (32) 35,220
•
• Switzerland(12) 46,460 • Belgium (33) 34,760
Netherlands(18) 41,670
• • France (34) 34,400
• Sweden (22) 38,180
• Austria (23) 37,680 • Australia (35) 34,040
Ireland (24) 37,350
• • Spain (37) 31,130
• Denmark (25) 37,280
• Canada (27) 36,220 • Italy (39) 30,250
• UK (28) 36,130
• Greece (43) 28,470
• Germany (29) 35,940
• South Korea (44)28,120
• Israel (45) 27,450
• New Zealand (50)25,090

Source: 2008 World Development Indicators

Database
World Bank July 2009
 Gini Index:
Distribution of Family Income
• Gini coefficient is a measure of inequality developed by Italian
statistician Corrado Gini. 0 = everyone has same income, 1= perfect
inequality (one person has all the income). Gini index is the
coefficient in percentage form
Denmark 24.7……the lowest
Japan 24.9
Germany 28.3
Canada 32.6
France 32.7
Ireland 34.3
Australia 35.2
UK 36.0
India 36.8
Russia 39.9
US 40.8
China 46.9
Brazil 57.0

The highest is Sierra Leone at 62.9

Source: UN Gini Index World Fact Book 2007/2008
 Competitiveness
World Economic Forum Global Competitiveness:
2009 2008 2007 2006 2005 Four indexes:

1. Switzerland US US Switzerland Finland Growth

2 US Switzerland Switzerland Finland USA Macreconomic
3 Singapore Denmark Denmark Sweden Sweden Public Institutions
4 Sweden Sweden Denmark Denmark Taiwan Technology
5 Denmark Singapore Germany Singapore Taiwan
6 Finland Finland Finland US Singapore
7 Germany Germany Singapore Japan Iceland
8 Japan Netherlands Japan Germany Switzerland
9 Canada Japan UK Netherlands Norway
10 Netherlands Canada Netherlands UK Australia
11 HK HK South Korea HK Netherlands
12. Taiwan UK HK Norway Japan
13. UK South Korea Canada Taiwan UK
14. Norway Austria Taiwan Iceland Canada
15. Australia Norway Austria Israel -
16. France France Norway Canada - -

Source: WEF Sept. 2009

 Centres of Commerce

1. London 79.17 11. Madrid 58.34

2. New York 72.77 12. Sydney 58.33
3. Tokyo 66.60 13. Toronto 58.16
4. Singapore 66.16 14. Copenhagen 57.99
5. Chicago 65.24
15. Zurich 56.86
6. Hong Kong 63.94
7. Paris 63.87 16. Stockholm 56.67
8. Frankfurt 62.34 17. Los Angeles 55.73
9. Seoul 61.83 18. Philadelphia 55.55
10. Amsterdam 60.06 19. Osaka 54.94
20. Milan 54.73
Source: 2008 MasterCard Worldwide
Centres of Commerce Index:
political framework, economic
stability, ease of doing business,
financial flow, Business centre,
32 Montreal 51.60
knowledge/information flow. 37 Vancouver 51.10
 Legal and Regulatory Issues
Transparency International 2008
(180 countries, business perceptions)
Best Worst
1. Denmark 9.3 40. Sth. Korea 5.6 173. Chad, Guinea

2. New Zealand 9.3 Sudan 1.6

3. Sweden 9.3 72. Mexico 3.6 176.Afgahnistan 1.5
4. Singapore 9.2 72. China 3.6 177. Haiti 1.4
Finland 9.0 80. Brazil 3.5 178. Iraq, Myanmar 1.3
6. Switzerland 9.0 85. India 3.4 180. Somalia 1.0
7. Iceland 8.9 147. Russia 2.1
8. Netherlands 8.9
9. Australia 8.7
10. Canada 8.7
11. Luxemborg 8.3
12. Austria 8.1
16 UK 7.7
18. USA 7.3
Source: TI 2008 Corruption Perceptions Index (CPI)
 FDI in Canada

$billions 2005 2006 2007 2008

To US - - 233 220
To Canada ($billions) 101 104 128 133
To France - - 158 114
To UK - - 224 109
To China - - 84 92

Source: UNCTAD 2009

The Nation Branding Virtuous Circle

Commercial Brands

FDI Tourism

National Identity/Activity
 Commercial Brand Challenges –
Country of Origin Effect

• Japanese electronics
• French food
• Italian fashion
• American pop culture: movies, music,
• British Food?
• Canadian ?
 Commercial products from
Developing Nations

Brazil - coffee
Chile – flowers, wines
Egypt - tourism
Greece – olive oil
Philippines - people
Russia – diamonds, oil, vodka
Thailand – food & cooking, tourism
 Commercial Brands from Developing
Nations
Brazil – Embraer, Marcopolo (bus bodies), Petrobras
China – China Mobile, Haier, Lenovo, Shanghai Auto, Tsing Tao beer,
China – Hong Kong – Hutchinson Whampoa
India – Infosys, Kingfisher, Mahindra, Tata, Wipro
Israel – Jaffa, Teva
Mexico – Cemex, Cuervo, Pemex
Singapore – Banyan Tree & Shangri-la Hotels, Tiger Balm
Taiwan - Acer
Trinidad & Tobago –Angostura Bitters
 Canada in Global Brandscape -
Commercial

# 40 Thomson Reuters $8.4b + 1%

# 63 Blackberry $5.1b + 7%

Source: Interbrand 2009

Commercial Brand Challenges - Canada

Commodities: Brands:
- Blackberry
- Agricultural products
- Bombardier
- Timber/building - Cirque du Soleil
materials - Four Seasons
- Minerals - McCain
- Oil/gas - Manulife/John Hancock
- autos - RBC
- Scotiabank
- Sun Life
- Thomson-Reuters
- Umbra
Nation Brand Planning
 Nation Brand Planning

Nation Brand:
- As a product brand………………like Blackberry
- As an ingredient brand……..like Intel or Lycra
(adds something to all aspects a country
touches)
- As a corporate brand……….like Thomson
Reuters
 Nation Brand Planning

Umbrella: Nation Brand

Endorsed brands: Tourism; Exports; Inward Investment;

Talent attraction; Sports

Stand alone brands: Regions/cities/landmarks;

products/services; sector-specific; skilled
workers/university students; national
teams and clubs; cultural & political figures
 Nation Brand Planning

1. Identify target audiences, their

needs/wants and benefits the nation brand
can deliver:
- citizens/local organizations
- investors/other businesses
- tourists
- customers for export products/services
- global/regional regulatory and political authorities
- influencers: associations, clubs, Diaspora
 Nation Brand Planning

2. Determine core values/essence of the brand:

- who are we? Where do we come from?
- the current core vision, mission and values
- What do we do? What are we known for? What
do we do that we are not known for?
- what do people (citizens, visitors, institutions)
now think about us ?
- most vivid citizen and visitor experience with it
(advertising, personal stories, movies,
literature etc.)
- difference versus competition
 World Population 2008 (millions)

12. Philippines 90
1. China 1,326 13. Vietnam 86
2. India 1,140 14. Germany 82
3. US 304 15. Egypt 82
16. Ethiopia 81
4. Indonesia 228
17. Turkey 74
5. Brazil 192 18. Iran 72
6. Pakistan 166 19. Thailand 67
20. Congo 64
7. Bangladesh 160
26. Sth.Korea 49
8. Nigeria 151 # 36. Canada 33
9. Russian Fed. 142 • 2008 World Development Indicators: World Bank,
July 2009

10. Japan 128

11. Mexico 106
 Human Development Index (2006)
• Composite measure of measures for three dimensions: a long
healthy life, knowledge, and a decent standard of living. 100
is the high rating
Canada 96.7 (# 3)
Australia 96.5 (# 4)
Ireland 96.0 (# 5)
Japan 95.6 (# 8)
France 95.5 (#11)
US 95.0 (#15)
UK 94.2 (#21)
Germany 94.0 (#23)
Korea 92.8 (#25)
Mexico 84.2 (#51)
Brazil 80.7 (#70)
Russia 80.6 (#73)
China 76.2 (#94)
India 60.9 (#132)

The highest is Iceland at 96.8, the lowest Sierra Leone at 32.9

Source: UN Human Development Report 2008
 Hofstede’s Dimensions.
(n= 53 countries+ 3 regions, not Russia)

• Power Distance Index (PDI) • Individualism Index.

Score Rank Score Rank
Mexico 81 5= USA 91 1
India 77 10= Canada 80 4=
Brazil 69 14 India 48 21
Hong Kong 68 15 Argentina 46 22=
Sth. Korea 60 27 Japan 46 22=
Japan 54 33
Brazil 38 26=
Argentina 49 35=
Mexico 30 32
US 40 38
Hong Kong 25 37
Canada 39 39
Sth. Korea 18 43
 Hofstede’s Dimensions
(n= 53 countries + 3 regions, not Russia)
• Masculinity Index. • Uncertainty Avoidance
Score Rank. Index Score Rank
Japan 95 1 Japan 92 7
Mexico 69 6 Argentina 86 10=
USA 62 15 Sth. Korea 85 16=
Hong Kong 57 18 Mexico 82 18
Argentina 56 20=
Brazil 76 21=
India 56 20=
Canada 48 41=
Canada 52 24
Brazil 49 27 USA 46 43
Sth. Korea 39 41 India 40 45
Hong Kong 29 49=
 Hofstede’s Dimensions.
(n = 22 countries.)
• Long Term Orientation.
Score Rank.
China 118 1
Hong Kong 96 2
Japan 80 4
Sth. Korea 75 5
Brazil 65 6
India 61 7
USA 29 17
Great Britain 25 18
Canada 23 20
 Communitarian
Chameleon
Adaptable
Synthesizing
International

Multicultural Experiential
Endurance

Entrepreneurial
Collaborative

Skeptical
 Nation Brand Planning

3. Establish Brand Key and Architecture:

i) Key:
- Competitive Environment
- Target Groups
- Human Truth
- Benefits
- Values & Personality
- Reasons to Believe
- Differentiator
- Essence
 Nation Brand Planning

3. Establish Brand Key and Architecture:

ii) Architecture:
- Policy changes (sector encouragement)
- MarCom strategy and how this impacts:
 FDI
 Tourism
 Commercial promotion

- How this integrates with other activities

 Dinnie Model of Nation Brand Identity
and Image
Nation-brand identity History, Language, Territory
Political regime/Policies, Architecture,
Sport, Literature, Art, Religion,
Education, Icons, Landscape,
Music, Food/drink, folklore.
Communicators of Branded exports, Diaspora,
Nation brand identity sporting achievements, Cultural
artefacts, MarCom, Personalities,
Tourism experience, Foreign
Policy
Nation-brand image Audiences: Domestic
consumers/firms, External
consumers/firms, Investors,
Government, Media
 Nation Brand Planning

4. Ensure the National elements of policy and

promotion fit the benefits by target segment
- SWOT analysis
- play to strengths or to ‘unheralded’
strengths; reframe weaknesses
- consistency and integration of effort
- persist….continuous effort
- MarCom use: events, movies, TV,
advertising, promotion (subsidies) etc.
- serendipity….make use of the
unplanned/unexpected
 Nation Brand Planning

5. Tracking and Adjustment:

- Track progress versus competition on surveys
 Conclusions

• Nation brands more complex and less

controllable
• But can be developed through national policy;
integrated promotional activity (investment,
tourism, cultural promotion, tie-in with
export promotion)
• Against targeted audiences in targeted
geographies
 Selected Bibliography A-B
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 Selected Bibliography C - H
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de Chernatony L. and McDonald M.(2001)“Creating Powerful Brands” Butterworth Heinemann
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Davis S.M. (2000) “Brand Asset Management” Jossey-Bass
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 Selected Bibliography H - M
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 Selected Bibliography N - Z
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 Biography: Dr. Alan Middleton
• B.Sc. Hons. Sociology (LSE) , MBA and Ph.D. (York) in Business Administration;
• Currently Executive Director, Executive Education Centre, Schulich School of Business, York
University and Assistant Professor of Marketing;
• 23 years working in marketing and advertising with UOP Inc., Esso Petroleum and J. Walter
Thompson in UK, US, Norway, Japan and Canada. Last role s were President/CEO JWT Japan
and Executive V.P. and Board Director of the worldwide JWT Company organization, subsequent
to being President of Enterprise Advertising Associates in Toronto.
• 18 years as an academic/marketing trainer and consultant. Taught marketing courses at
Schulich School of Business , York University in Toronto; Rutgers Graduate School of Business in
US; Chiangmai , NIDA and Yonok Graduate Schools of Business in Thailand ; IDEA Graduate
School in Buenos Aires, Argentina; Moscow State University and Academy of National Economy
in Moscow and Nizhny Novgorod, Russia; and Southwest Normal and Sichuan Universities in
China. Research topics in branding, private labels and e brands internationally;
• As a trainer and consultant have worked for Bell, Manulife Financial, ACNielsen, Nortel, Pfizer
Warner- Lambert, Quaker Foods, Unilever amongst many others;
• Co-author of ‘Advertising Works II’ , co-founder of the ‘CASSIES’ and co-editor of the CASSIES I
Case Book, author of publications on MarCom PBR, MarCom ROI and MarCom client-agency
relations. Co-author of ‘Ikonica –a fieldguide to Canada’s brandscape’
• In January 2005 was inducted into the ‘Marketing Hall of Legends’ in the Mentor category
• Executive Committee of the Honorary Trustees of the Royal Ontario Museum (Trustee 1996-
2002) and on the ROM Marketing Advisory Committee (2008-date). Alan is on the Board of the
ABC CANADA Literacy Foundation Board having been its Chair 2003-2009. He is on the Boards
of Sunnybrook Hospital and AIESEC-Canada, and is a Research Committee member of Ontario
Tourism Marketing Partnership and the Scientific Committee of Leger Marketing. He is Chair of
the Judging Committee for the New Product of the Year Awards.
• Previously Alan was a member of the United Way of Greater Toronto Marketing Committee
(1992- 2006) and on the branding committee of Toronto International Film Festival, the Ontario
Ministry of Health ‘Healthy Ontario.com’ committee and Chair of the Editorial Advisory
Committee of Marketing Magazine.