Bloom consulting country brand ranking trade 2012

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Bloom consulting country brand ranking trade 2012

  1. 1. Development of CountriesHuman Asset ManagementBusiness StrategyBloom ConsultingCountryBrandRanking ©TradeEdition 2012Bloom Consulting © Since 2003
  2. 2. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom Consulting Country Brand Ranking ©An IntroductionThe Bloom Consulting Country Brand Ranking © is the only country or nation brand rankingwhich classifies countries by the effectiveness of their country brand strategiesand its subsequent impact on the country’s GDP.In order to do so, Bloom Consulting has taken into account variables that define the economicperformance of the countries as well as variables that characterize the strategies’ accuracyand market acceptance.Bloom Consulting has used hard facts, such as economic indicators and an analysis of theofficial country brand strategies as well as soft data indicators, thereby measuring the economicimpact of each country’s trade brand strategy. Furthermore, this marks the first time that OnlineSearch Demand (OSD) has been incorporated into a ranking of this type.The 2012 Bloom Consulting Country Brand Ranking © Trade accounts for the most comprehen-sive, objective research done in the field so far. In accordance with the Bloom Consulting 3TApproach © (see page 3), Bloom Consulting creates separate Rankings for Trade and Tourism.It includes 160 countries and all economic data comes from recognized sources such as theWorld Bank, United Nations and the World Association of Investment Promotion Agencies.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 01
  3. 3. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012An introductory note from the CEOWelcomeFor the second consecutive year, I am proud to present to you withthe Bloom ConsultingCountry Brand Ranking!Over the last nine years, I have had the privilege of working with Bloom Consulting in countrybranding strategies all over the world. From my experience, the most striking fact I found so faris that most countries, regardless of their economic development, geographic location or evensize, have very similar issues when developing their own country brand strategy. These issuesare very much related with internal concerns, such as accountability or stakeholder management,and also the tangible measurement of brand strategy investments.Our objective when launching this ranking was precisely to tackle this issue: how much morerevenue can a country brand attract to its own national economy?Let me just say how excited I am with the new feature in our algorithm - Online Search Demand(OSD). For the first time in any country or nation brand ranking, we analyze how well posi-tioned countries are in the biggest search engines and how searched they are by investors ingeneral.To conclude, I encourage you to use this ranking internally and use it as an asset and a tool todemonstrate the importance your country brand has on your economy. Although we would haveliked to go deeper and give a detailed description on each country’s performance, it’s impossibleto do so in this overview. However if you are interested to find out more information on yourcountry, please do not hesitate to contact us. I would be happy to send you all the informationyou require.Welcome to the Bloom Consulting Country Brand Ranking © 2012. We hope you appreciate thegreat results and findings as much as we did!José Filipe Torres - CEO Bloom ConsultingBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 02
  4. 4. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Introduction to Country BrandingThe 3T approach ©In creating a country brand strategy we focus on three main areas:attraction of trade, tourism and talent.The traditional approach when facing the challenge of attracting trade, tourism and talentis to create, or simply improve, perceptions under one umbrella strategy. Ultimately thiswill fail, as we see over and over again around the world. It is impossible to communicateentertainment to investors and simultaneously communicate a qualified and hardworkingworkforce to potential tourists. They messages repel each other, destroying the coreobjective. Most of the time agencies attempt a compromise in order to better createan overall strategy. As a result, they weaken their brand, as each factor is not brandedup to its potential.In order to solve the problem of having a single multi-dimensional strategy,Bloom Consulting has developed a 3T approach to country brandingthat separates each T.T1. Attraction of TradeT2. Attraction of TourismT3. Attraction of TalentTraditional “Umbrella” Strategy Bloom Consulting’s 3T Approach © T1 T2 T3 T2 GDP GDP T1 T3 Impact ImpactThis way, we’re able to calculate growth projections and calculations individually,in order to better define the objectives of an overall strategy.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 03
  5. 5. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Understanding the MethodologyThe Ranking VariablesThe Bloom Consulting Algorithm, was developed to create and calculate the ranking, taking intoaccount both hard and soft data and includes groundbreaking processes to show the relationshipbetween a country’s economic performance and the projections of the country’s brand strategy.The ranking is derived from four variables that take into account both hard and soft data. Theranking does not use any survey or interview based data, meaning that it provides the mostobjective, accurate results possible.Bloom Consulting Country Brand Ranking Algorithm variables Historical Bloom Consulting CBS Economic Rating© Growth Economic Country Brand Performance Ranking ©Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 04
  6. 6. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Understanding the MethodologyThe Ranking Variables in more detailHistorical Economic PerformanceStrategies and economic returns do not have an immediate cause and effect relationship, there-fore Bloom Consulting looks at the country’s long term (five years*) historical economicperformance in foreign direct investment (FDI). This way, the Ranking reflects more consistenttrends rather than the volatile changes that might occur in the recovering economic climate.Economic GrowthThe growth in FDI inflows of each country is also an important indicator when measuringthe country’s country brand strategy performance, therefore Bloom Consulting computesthe compound annual growth rate for the FDI performance. This way, it is possible to garnerhow much the industry grew or decreased and the impact it had on the revenue. Again, dataspanning five years was used to reflect consistent trends rather than brief volatile changes.Bloom Consulting Country Brand Strategy (CBS) Rating ©Bloom Consulting also rates the impact of each country’s branding strategy. The CBS Rating ©takes into account the uniqueness of each country’s current brand strategy (Brand Tags) and theaccuracy of the Online Search Demand. A brand strategy that is more unique and more alignedwith investor searches will receive a better Rating.* Data was taken from the World Bank covering the years 2006-2010.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 05
  7. 7. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Measuring Country Brand Strategy AccuracyThe CBS Rating ©CBS Rating © is calculated using brand strategy economic performance analysis and analysis ofOnline Search Demand. The country brand strategy is measured through brand tags, the keywords that reflect the brand strategy of each country. For the first time in any country or nationbrand ranking, Bloom’s Online Search Demand (OSD) is able to show if a country supplies whatinvestors are seeking, and how well the country is matching this demand.Brand tags function as the ‘supply’ side of the investor-destination equation. Thousands of brandtags were collected from each country’s official investment agency and then classified into 50different clusters that relate to workforce, social welfare, strong and stable economy, favorablefiscal benefits, or stable political environment. Each cluster is assigned an economic value inorder to rate the relative returns gained from each brand tag.Domestic and international investor searches for the brand tags and related words were thenanalyzed, country by country, in the most used search engines, to show the country’s accuracymatch and quantify Online Search Demand. By considering the OSD, Bloom Consulting is ableto show if a country offers what investors are seeking, and how well the country is matching thisdemand. This identifies the gap between supply and demand. The more accurate a country is, thebetter the CBS Rating ©.Just as international rating agencies rank countries’ credit risk, Bloom Consultinguses the CBS Rating © Classification SystemScore DescriptionAAA Very StrongAA StrongA Slightly StrongBBB Very GoodBB GoodB Slightly GoodCCC Slightly WeakCC WeakC Very WeakD PoorBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 06
  8. 8. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom Consulting Country Brand Ranking ©2012 TRADE EDITION - WORLD RankingRank CBS Rating ©1. United States of America BBB2. Luxembourg AA3. China BBB4. United Kingdom A5. France AAA6. Belgium BB7. Germany BBB8. Canada BBB9. Hong Kong B10. Russian Federation CCCBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 07
  9. 9. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©11. Brazil BBB12. Australia BBB13. Spain B14. Turkey AAA15. India BB16. Saudi Arabia BBB17. Sweden AA18. Netherlands BBB19. Kazakhstan AA20. United Arab Emirates AAA21. Singapore B22. Italy BBB23. Austria AA24. Poland BB25. Mexico CCC26. Switzerland B27. Norway BB28. Hungary B29. Ireland B30. Japan BBB31. Israel BB32. Thailand B33. Chile CC34. Romania BB35. Colombia CCBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 08
  10. 10. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©36. Malaysia BB37. Indonesia CCC38. Viet Nam CCC39. Nigeria B40. Ukraine CCC41. Bulgaria CCC42. Sudan AAA43. Qatar BBB44. Cyprus AA45. Argentina B46. Peru B47. Czech Republic CC48. Algeria AAA49. Finland BBB50. South Africa BBB51. Uruguay AAA52. Pakistan BB53. Malta AAA54. Estonia AA55. Lebanon CCC56. Jordan BBB57. Iceland BB58. Denmark BBB59. Portugal CCC60. Zambia AABloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 09
  11. 11. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©61. Serbia BBB62. Bosnia and Herzegovina AAA63. Iraq BBB64. Ghana BB65. Panama BBB66. Greece B67. Morocco BB68. Tunisia BB69. Madagascar BB70. Croatia CCC71. Dominican Republic B72. Congo CCC73. Macao CCC74. Slovakia BB75. Belarus B76. Oman CCC77. Bahrain BBB78. Democratic Republic of Congo CCC79. Republic of Korea BB80. New Zealand B81. Turkmenistan CC82. Philippines CCC83. Lithuania B84. Costa Rica CCC85. Bangladesh BBBBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 10
  12. 12. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©86. Trinidad and Tobago CCC87. Georgia CCC88. Latvia CCC89. Bahamas BB90. Uganda BB91. Syrian Arab Republic D92. Equatorial Guinea AA93. Mongolia BB94. Yemen AAA95. Albania C96. Slovenia CCC97. Guatemala BBB98. Mozambique BBB99. Jamaica CC100. United Republic of Tanzania AA101. Botswana BBB102. Honduras D103. Macedonia AA104. Uzbekistan CCC105. Sri Lanka BBB106. Kenya AAA107. Chad AA108. Liberia AA109. Senegal AA110. Armenia CBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 11
  13. 13. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©111. Saint Vincent and the Grenadines AAA112. Lao People’s Democratic Republic BBB113. Antigua and Barbuda AAA114. Namibia CCC115. Nicaragua CCC116. Burkina Faso AAA117. Kuwait BBB118. Mali BB119. Mauritius B120. Brunei Darussalam B121. Côte D’Ivoire CCC122. Mauritania AAA123. Djibouti AA124. Afghanistan BBB125. The Republic of Moldova CCC126. Myanmar D127. Seychelles CCC128. Paraguay CCC129. Ethiopia B130. Solomon Islands B131 Gabon B132. Papua New Guinea B133. Malawi BB134. Saint Lucia B135. Guinea CCCBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 12
  14. 14. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Rank CBS Rating ©136. Barbados CCC137. Guyana CCC138. Cape Verde B139. Tajikistan CCC140. Gambia AA141. Maldives CCC142. Swaziland BBB143. Grenada B144. Rwanda BB145. Zimbabwe BB146. Lesotho CCC147. Fiji D148. Belize C149. Haiti CC150. El Salvador C151. Sierra Leon C152. Burundi BBB153. Dominica CCC154. Vanuatu CCC155. Togo CC156. Federated States of Micronesia CCC157. Tonga B158. Samoa CCC159. Guinea-Bissau D160. Azerbaijan BBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 13
  15. 15. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom Consulting Country Brand Ranking ©CommentsThe top countries of 2012’s ranking finished on top again, with the US first, Luxembourg secondand China third thanks to all around FDI increases and strong CBS Rating ©. The US’ outstand-ing FDI flows pushed it into first place. Its BBB rating indicates that the US trade brand is quiteaccurate when considering investor demand, but is still not capturing all opportunities. Astonish-ingly the top six in 2012 repeated exactly, indicating that the economic strength of these coun-tries combined with strong trade brand strategies is difficult to beat. The first change comes atplace 7, where Germany edged Canada out.Despite 13 out of the top 25 coming from Europe,the 2012 Consulting Country Brand Ranking © Trademarkedly showed strong growth distributed amongall continents. Four other noticeable improvements wereBrazil (11), Australia (12), India (15) and Kazakhstan (19).All countries’ strong FDI numbers significantly helped theirrise, and Kazakhstan was strongly aided by its AA rating.Turkey (14) also turned in a wonderful improvement fromlast year with an AAA rating.Latin America had two countries in the top 25: Brazil (11) and Mexico (25). Brazil’s BBB ratingcontributed slightly to their two spot jump, but Mexico suffered from a CCC rating. Both coun-tries’ FDI increases were rendered less powerful than if they had stronger CBS Ratings ©.Several other top 50 finishers including Chile, Colombia, Argentina and Peru indicate theincreasing economic potential of the continent.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 14
  16. 16. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom Consulting Country Brand Ranking ©Comments, ContinuedAsia was well represented due to strong FDI flows, but the CBS Ratings © indicate that thoughAsia is rapidly becoming more economically powerful, creating a globally effective trade brandstrategy is still challenging. Though China (3) received a respectable BBB, Hong Kong (9) andSingapore (23) were weakened with only B ratings.The Middle East’s highest finishers were Saudi Arabia (16) and the United Arab Emirates (20).Both had strong ratings (BBB and AAA respectively), suggesting that the economic impact ofthe recent unrest in the region could be weathered with a strong brand strategy.Shockingly, South Africa (50) was edged out byNigeria (39) and Sudan (42) despite a BBB rating.Though South Africa might be perceived as the economicpower in Africa, FDI inflows are being increasingly spreadout over the continent.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 15
  17. 17. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Classification, References and SourcesAdditional information about the studyBloom Consulting divided the world into eleven geographic sectors and the four economicdevelopment stages in order to maintain the singularity of the region and compare countriesin a regional context.Bloom Consulting Geographic Regions1. Central and Southern Asia2. Europe3. Northern Africa4. Oceania5. Central and Middle Africa6. Central America and Caribbean7. South America8. Middle East9. Western and Southern Africa10. Northern America11. Eastern and South-Eastern AsiaThe four World Bank Income levels12. Low Income13. Lower Middle Income14. Upper Middle Income15. High Income (Includes both OECD and non-OECD)Further sources for countries income level classifications,geographic regions, and IPAs listingThe World Bank http://www.worldbank.org/The United Nations http://www.un.org/en/The World Association of Investment Promotion Agencies http://www2.waipa.org/cms/WaipaBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 16
  18. 18. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom Consulting Country Brand Ranking©FAQs1) Who is this Ranking meant for?Bloom Consulting Country Brand Ranking © is for anyone interested in place brandingfrom every perspective, whether you’re in government, academia, industry, finance,or just find it interesting.2) Why did Bloom Consulting create a Ranking?Bloom Consulting created the Ranking to evaluate the impact of a country’s brand strategy ineconomic terms and, above all, to answer the ever relevant question of how countries canbecome more attractive.3) How does Bloom Consulting’s Ranking differ from other rankings?Bloom Consulting’s Ranking uses variables and methodology to generate a ranking far aheadof the field in terms of objectivity and innovation. Not only does Bloom Consulting base itsresearch on objective hard and soft facts, rather than using survey based data like other rankings,it is also the first ranking to take investor demand into account.4) What is new in the 2012 edition of the Ranking?The 2012 edition of the Ranking features the inclusion of investor Online Search Demand(OSD) in the Bloom Algorithm. By analysing consumer behaviour and the effectiveness ofcountry brand strategies, the newest Ranking raises the bar by giving a pioneering view of theglobal trade industry from a supply and demand angle.5) How can a state have a poor CBS Rating ©, but do well in the Ranking?If a country has a negative CBS Rating ©, its brand strategy is not actively reflecting what thecountry has to offer (in the eyes of investor-demand). Even though its economic performancemight still be strong, the trade strategy is not taking advantage of the country’s unique sellingpropositions.Bloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 17
  19. 19. Country BrandDevelopment of CountriesHuman Asset Management Ranking ©Business Strategy Trade Edition 2012Bloom ConsultingAboutBloom Consulting is a strategy consulting firm specialized in country branding.José Filipe Torres founded Bloom Consulting in 2003 and is a regular spokesperson at confer-ences and universities worldwide. Both The Economist and Forbes have interviewed Mr Torres,where he was identified as one of the top 3 country branding experts in the world.Currently Bloom Consulting has offices in São Paulo, Mumbai, Lisbon, Madrid (headquarters)and Los Angeles, as well as research centres in Tokyo and London. Bloom Consulting worksclosely with presidents, monarchs, ministers and institutions in order to define their strategy,establish their vision, and implement it. Bloom’s clients include the Bulgarian, Latvian, Polish,Portuguese and Spanish governments, and also regions such as Madrid, Castilla y Leon in Spain,and center and the southwest regions of Portugal.Bloom Consulting has developed the 3T approach © that separates Trade, Tourism, and Talentstrategies into three different Country Branding Strategies.One fundamental point of all of Bloom Consulting’s projects is the CAMPRO methodology ©.This methodology is a combination of academic and professional knowledge under BloomConsulting’s management and control, key to obtaining the most accurate recommendationsand insights for all clients.Moreover Bloom Consulting has published the:Bloom Consulting US State Brand Ranking © 2012and is currently developing the:Bloom Consulting India State Brand Ranking © 2013Additional InformationWhile this report provides a general overview, the information presented here is buta glimpse of the findings we have at your disposal. Please do not hesitate to contact us if youwould like a personalized and detailed version of the Bloom Consulting Country BrandingRanking © Report for your country, region or city.For more information, please visit:www.bloom-consulting.com/en/country-brands-rankingBloom Consulting © Since 2003 countrybranding@bloom-consulting.com / +34 91 308 0286 (CET) Page 18

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