Chris Nurko - Global Chairman at FutureBrand

1. © FutureBrand 2016 1
Brexit:
What next for Brand UK?
Christopher Nurko
Thursday 7th
July

2. Source of data and insight
© FutureBrand 2016 2
17 Countries, 2,530 respondents
Qualitative and Quantitative

3. Source of data and insight
© FutureBrand 2016 3
3,000 respondents May 2016

4. Country Branding matters
© FutureBrand 2016 4
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.

5. © FutureBrand 2016 5
Brand UK UK Brands

6. CBI 2014/15 study
© FutureBrand 2016 6
PURPOSE

7. © FutureBrand 2016 7

8. 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
© FutureBrand 2016 8

9. Brand UK – at 12
© FutureBrand 2016 9
Strong
Heritage & culture
History
Attractions
Infrastructure
Technology
Good for business
Weak
Food
Environmental friendly
Value for money
Natural Beauty

10. © FutureBrand 2016 10

11. © FutureBrand 2016 11
UK

12. © FutureBrand 2016 12
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%$

13. Brand UK – Attributes that influence sector advantage
© FutureBrand 2016 13
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”

14. Feelings About United Kingdom
© FutureBrand 2016 14
• Influential
• Powerful
• Iconic Landmarks
• Traditional and progressive
• Multi-cultural
• Independent
• Strong Infrastructure

15. Brand UK
© FutureBrand 2016 15
• 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 Brexit
implications vs. global markets

16. But, What does
this mean for
Europe?
© FutureBrand 2016 16

17. © FutureBrand 2016 17
EU – Declining support?

18. What do EU Europeans think?
© FutureBrand 2016 18

19. Brand EU
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• 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”)

20. A: Uncertainty = Economic Instability
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“Financial risks have begun to crystallise”
Mark Carney, Bank of England
£250 Billion injection into money markets

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

22. Business confidence in the UK economy
© FutureBrand 2016 22
49% of British businesses feel
pessimistic about the future
UK economy
YouGov/Cebr 04/07/16

23. What does the world think?
© FutureBrand 2016 23
REINFORCES POLITICAL
DEMOCRACY
FOCUS ATTENTION ON BRITAIN
REINFORCES BRITISH CULTURAL
CAPITAL

24. Paradox of (bad) news and strong Country Brands
© FutureBrand 2016 24
Iceland 2010 Italy 2011 UK 2016

25. Google trend search: Interest in UK, Brexit, EU v Sex
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26. © FutureBrand 2016 26
“MARKETING DOESN’T
PERSUADE PEOPLE,
PEOPLE PERSUADE
THEMSELVES”
Dale Carnegie

27. ”a triumph of story telling… of an emotional appeal over a
rational appeal”
© FutureBrand 2016 27
Remain Leave
STATUS QUO
‘Do Nothing’
CHANGE
‘Take Control’

28. What does the Future hold?
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• 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)

29. In summary
© FutureBrand 2016 29
1. Brand UK is a strong and resilient Country Brand
2. National Identity and emotional storytelling are
powerful
3. Paradox of bad news will create greater UK
visibility
4. Emotions and storytelling are persuasive and
core for brands
5. The discussion will go on for years….and years...

30. © FutureBrand 2016 30
“THE BRITISH DO NOT
EXPECT HAPPINESS… THEY
DO NOT WANT TO HE HAPPY;
THEY WANT TO BE RIGHT”
Quentin Crisp

31. © FutureBrand 2016 31
Thank you.