Research Question: Nation Branding in BRIC countries: Role and Impact of creating a ‘Tourism Nation  Brand’ in a BRIC coun...
1.2 Why countries engage / should engage in Nation Branding?Increasing global competition requires countries to constantly...
Ch.2 Nation Branding in BRICS - Case of India2.1 Relevance of Nation Branding concept for IndiaEvery country is engaged in...
brand equity from an affirmative reputation abroad. In recent years India has shown its potential ina number of sectors fr...
achieve this kind of brand recognition being an emerging economy. But at the same time among theBRICS, China has had much ...
China is emerging in its value for outbound tourism in the world. An estimate of 100 million touristsby 2020 has been pred...
been a constant increase in the number of abroad visits by UK travellers and holiday takers from1998 to 2006. Between 2007...
According to Ministry of Tourism, the Foreign Exchange Earnings in India has grown from US     $2889 to $14193 million in ...
References and Bibliography
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Lierature review for nation branding

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A 3210 self compiled literature review for Masters Dissertation.

Focuses on important aspects of Nation Branding strategy for Indian Tourism Industry with relevant talks about what and how changes can affect the country as a whole!

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Lierature review for nation branding

  1. 1. Research Question: Nation Branding in BRIC countries: Role and Impact of creating a ‘Tourism Nation Brand’ in a BRIC country - India. A study of the gaps, inadequacies and vulnerabilities in creating ‘Brand India’ as a tourist destination choice with the help of a comparative study on UK tourists’ consumer market in China and India.Ch.1 Nation branding1.1 Scope, Relevance and Evolution of Nation Branding for countries todayEver nation projects an image of itself to the outside world. This image can be simple or complexdepending on the attitudes of people and their perceptions (Simonin, 2008). David Gertner suggestthat a country’s image results from its geography, history, art and music, citizens and othrerfeatures. All these features particularly play an important role in creating a brand name or someform of brand image of the country in the market place. A brand represents a unique combinationof characteristics and added values, both functional and non-functional, which have taken on arelevant meaning that is inextricably linked to the brand, awareness of which might be conscious orintuitive (Macrae, Parkinson and Sheerman, 1995). Nation Branding (NB); embodies multipledisciplines in branding strategies for a country/nation. Nation Branding is to create a country brandto gain prominence and competitive advantage to enhance the country’s reputation in internationalmarket (Dinnie, 2003). Rapidly growing literature on NB today by NB experts; Simon Anholt andKieth Dinnie have brought into light the importance of creating a nation brand and its relevance andevolution over the period of time for countries. Post World War II it has been observed thatcountries making rigorous efforts in creating brand value to: achieve higher recognition valueglobally, attract tourists, foreign investment, help achieve currency stability, increase imports andexports and so on. An example in consideration is South Africa. The International Marketing Councilof South Africa (IMC) in the year 2000 identified that it was absolutely necessary for South Africa tocreate a positive and compelling brand image in the global market place (Dinnie, 2003). It madeconscious efforts in enhancing and creating value for three most important economic sectors of acountry; Trade, Tourism and Investment. The Brand South Africa has identified four pillars accordingto president Jacob Zuma and brand chairperson of Africa, Ms. Anitha Soni that distinguish theunique characteristics of the South African brand – these are ubuntu, diversity, sustainability,possibility and creativity. A country with a clear, credible and positive view of what it is, what itrepresents and where it is going to, can successfully compete on the global stage; the mantra thatIMC of South Africa has been using to create Brand South Africa.NB process involves long term commitment and building right solutions to reach the country’sdevelopmental goals with the help of NB. The value a nation brand strategy can deliver today for anation and its significance to emerging economies such as the BRIC nations is the case inconsideration.
  2. 2. 1.2 Why countries engage / should engage in Nation Branding?Increasing global competition requires countries to constantly create competitive advantages tomaintain country image. In order to position the country in terms of its investment potential, creditworthiness, export opportunities, tourism potential and international relations the Governmentneeds to engage in opportunities that can create that kind of potential for the country and committo branding efforts for the country. The achievement of such goals requires countries to adoptconscious branding if they are to compete effectively on the global stage and this can be achievedby engaging in the NB process for over a period of time with commitment and trust. David Aaker(2011) suggests that brand influence on a person is reflected in everyday life by the choices theperson makes to buy a car, a phone, or any other hi-end luxury items. His research shows that outof 300 respondents that he surveyed at least 86% reflected the unwillingness to buy a product ofthe brand that did not hold the top 10 or top 20 slots in the media. This study reflects on howemotional attachments can be used to measure the brand value among consumers. U.S today is themost influential brand in terms of its socio-economic development, tourism potential, luxurymarket, and foreign investments and so on. Consumers are emotionally attached with Americanproducts like cars, clothes, cities (in terms of tourism) and education. The inability of countries tocreate brands that can attract this kind of market attention is because countries have not beensuccessful enough in recognizing the potential of creating value for them in terms of brand.NB can also help erase misconceptions about a country and allow the country to reposition itselfmore favourably (Anholt and Dinnie, 2008). Creating meaningful differentiation for a country lies inthe country unleashing its potential in embracing branding technique for competitive advantages.An example in this regard would be a country that has been successful in creating a ‘destinationbrand’ for itself in terms of tourism potential. For instance, World Travel Market’s survey for 2011shows that China among the BRIC countries was a very popular destination chosen by internationaltravellers for holidaying. 1,029 senior executives of businesses in the worlds tourism industrysurveyed also recognized China as the most important country for their businesses, with thecountry’s natural beauty, growing economy and the availability of direct flights being key reasons.World Travel & Tourism Council figures show that China is the worlds largest market for outboundtourists, spending around $55 billion in 2010. China also received 56 million international tourists in2010, generating $46 billion of revenue. What highlights the major reasons for China becoming sucha popular destination in just past one decade? The answer lies in the Government’s effort to create‘Brand China’ as an obvious tourism choice for travellers.Countries geographically diverse and with considerable amount of potential to culturally exploitthemselves like Spain, Britain, Korea, and the BRICs today have identified the worthiness ofdeveloping nation branding strategies for socio-economic development.
  3. 3. Ch.2 Nation Branding in BRICS - Case of India2.1 Relevance of Nation Branding concept for IndiaEvery country is engaged in the brand preference battle today (Aaker, 2010). Generating brandvalue that meets consumers’ expectations and attitudes in established product category or subcategory is the goal of many organizations competing on a global platform in this 21st century. Thesame theory holds true for creating a nation brand for emerging economies like the BRICS.Together, the five original BRICS (Brazil, Russia, India, China and now South Africa) comprise morethan 2.8 billion people or 40% of the world’s population, cover more than a quarter of the world’sland area over three continents, and account for more than 25% of global GDP. According to a studyby Brand Finance in 2010 the BRICS collective nation brand values expand by over $1.432 trillion.Strong economic performance and growing brand equity in the emerging markets has fuelled thisgrowth in brand value. Strong growth of BRICS illustrates the need for a potential nation-brandingstrategy and the significance it holds for the nation’s future progress in the era of globalization.With the example of South Africa’s attempt to create relevant nation brand mentioned above weunderstand the various endeavours the emerging economies are engaging in today to createsignificant country brands that would reflect a positive image of the country.As the world looks forward to new ideas to drive the globalised economy, India seems to be aninspiring story. Being the seventh largest country in the world and a rich history that caters to thelikes of every industry today; business, tourism, medical, luxury, heritage and so on India has tremendous potential to create a valuable global brand and identity among one of the influential nation brand sin the world today. India was the 2011’s second fastest growing brand, with 31.6% growth according to Brand Finance report of 2011. India’s Brand strength is now higher than China’s, partially a result of substantially higher
  4. 4. brand equity from an affirmative reputation abroad. In recent years India has shown its potential ina number of sectors from business to technology to innovation to tourism. It has been constantlyregarded as a country with continual move-up in the value chain. India’s brand is rapidly increasingin value as the self-proclaimed “world’s fastest growing democracy” establishes its place among theworld’s top tier economies. With such diverse sectors of growth India reflects the essential aspectsfor being the next generation tourism destination choice for international travellers today.Considering various aspects and facts encountered in lieu of the country in consideration; India Iwould now like to draw this argument towards impact and role of creating ‘Destination BrandIndia’. In a survey conducted by the World Travel Market (WTM) in 2010 on BRICS as a choice forholiday country, Brazil ranked the most popular choice among the international tourists. But Indiawasn’t far behind. The graph above based on the research done by Statista 2012 shows the order ofpreference based on financial conditions of the survey respondents. It clearly illustrates the interestin BRICS by international holiday takers if there were no financial constraints.With such growing interest among the tourists over the world NB does seem like a relevant strategyfor India and the Indian Government has been quiet meticulously working on making sure that ituses all channels of marketing and branding to pass this message across the world.2.2 India’s current progress in creating ‘Brand India’ and an overview on tourism market in Indiaand ChinaTerrorism, economic recession and political instability have come to dominate the discussion ofcurrent international affairs (Baral, Baral and Morgan, 2004). Impact on tourism demand due tothese issues has led to increasing amount of crisis management in tourism (Frisby, 2002). India faces huge threats in form of terrorism activities and corruption in its system. India China After the independence since (2011) (2011) 1947 Indian Government has Brand Value($ Brand Value($ Billions): been putting in relentless Billions): $1,266 $3,001 effort in creating a positive Change in Brand Change in Brand Value: image of India which can Value: +31.6% +40.4% make the country relevant and Brand in Equity Brand in Equity Rating: competitive in this uncertain Rating: AA- A environment. Rank in the League Rank in the League Table: 9th Table: 4th Source: Brand Finance 2010-2011India ranked 9th in 2010 as well as 2011 in the League table based on the report provided by BrandFinance for 2011 on Top 10 winner countries. Clearly there is something that India is doing right to
  5. 5. achieve this kind of brand recognition being an emerging economy. But at the same time among theBRICS, China has had much better ratings and has ranked 3rd in 2011 in the League table. Acomparison on both India and China’s ratings is given below. Even after being more diverse ascompared to China, Brand India does show some vulnerabilities and gaps that prevent it from beingthe first preference as a ‘Tourist Destination’ among the international travellers.Today a huge number of campaigns have been implemented by the Government and privateauthorities in public diplomacy as a part of branding campaigns for India. In an interview Iconducted with the Director of Indian Institute of Tourism and Travel Management (India); Mrs.Manjula Chaudary before beginning my thesis documentation I was told about the variousinitiatives a number of private organizations have started to create more Tourism value for thecountry. The India – Future of Change (http://www.indiafutureofchange.com/index.htm) initiativestarted to highlight India’s future plans in sectors like education, travel, business, technology, socialsector, environment and governance. Its introductory message on the website reads as below: INDIA Future of Change is a five-year initiative that promises to take India to the world, and get students and professionals across geographies to compete, collaborate and co-create a better future for all of us...It is supported by the Public Diplomacy Division for External Affairs, Govt of India. This initiativeaims at building a platform for all public and private partners and stakeholders of Brand India tounite and build gaps and bridges with the rest of the world. Many new dimensions since thisinitiative have been added as a part of creating ‘Destination Brand India’ as well for the country.Tourism was being given due recognition in the State Tourism Plans and State Govts. also started toform Tourism corporations and more fund were allotted to tourism since the five year plan of 1971-1976 (Source: Tourism Ministry of India website).Incredible India! Campaign was conceptualized in 2002 by V Sunil (while he was Creative Director,O&M Delhi), and Amitabh Kant, Joint Secretary, Ministry of Tourism. The primary objective of thisbranding exercise was to create a distinctive identity for the country(http://www.incredibleindia.org/). This campaign has generated an interest in India and helped inchanging the perception. Since the launch of this campaign India has attracted 5.58 million foreignnationals in 2010 compared to 2.38 million in the year 2001 (Tourism Ministry of India, 2010).Tourism Minister Kumari Selja added that the Incredible India! Film was shown on all majorEuropean channels and had captured world’s eye in generating a positive and exciting image ofIndia as a choice for travel. It won the prestigious Grand Prix award and was highly appreciated incountries like Romania, Berlin, Poland and France. But there is a trade-off when comparisons aremade between India and China on their tourism markets.
  6. 6. China is emerging in its value for outbound tourism in the world. An estimate of 100 million touristsby 2020 has been predicted by WTO to visit China for tourism and travel purpose. China received 56million international tourists in 2010, generating $46 billion of revenue for the country. Source: Research In China (In 2006, the revenue of Chinas inbound tourism achieved USD33.95 billion, with a year- on-year growth of 15.9%. The revenue from domestic tourism came to RMB 623 billion, seeing an increase of 17.9% year-on-year) Chinese Vice-Premier, Wang Qishan, mentioned in an open letter in the summit of UNWTO/WTTC Global Leaders for Tourism Campaign held in Sep2011 that Chinese Govt has doubled its effort in tourism and travel industry of China. According toMr. Qishan China’s tourism industry plays an important role in the country’s economic developmentand links the country to the world on the cultural front. Moving forward from the general tourismscenario for both these Asian giants I would now want to talk about the UK tourist’s interest in Indiaand China.2.3 UK Tourists Consumer Market in India and ChinaThe foreign tourist arrival growth in India is little less than 11% per annum (2010) & United Kingdom(UK) is the second largest contributor after United States of America, to the entire Foreign TouristArrival (FTA) in India (ACNeilson, 2011 for Ministry of Tourism of India). A study on UK tourist’smarket in India conducted by ACNeilson ORG-MARG in 2011 depicted the behaviour of UKconsumers visiting India for various travel purposes. According to this report level of awareness ofIndia as a destination choice among UK consumers was very higher than expected. Various reasonscan be linked to this; historical relationship between the two countries, natural beauty of itsbeaches and forests, wildlife, likes of UK consumers for Indian cuisine and so on. Consumers weretypically interested in visiting or had visited cities of Bombay, Delhi, Bangalore, Kerala, Goa andKashmir. The preference of these cities shows the interested and attitudes of UK consumers whiledeciding a trip abroad which is adventure, relaxation, business and spirituality. India offers a blendof all them along with some brilliant landscapes and natural beauty found in the country. There has
  7. 7. been a constant increase in the number of abroad visits by UK travellers and holiday takers from1998 to 2006. Between 2007 - 2009 saw a decline of 15% due to recession hit economy.Motivations behind visiting abroad countries vary tremendously among different people but one ofthe common reasons was; ‘preferred destination’. And according to a survey in 2010 among the UKconsumers most popular destination emerged to be New York followed by Paris and China.As mentioned earlier China topped among the BRICS as the popular destination among UK travelersin 2010. Out of the 1,006 UK holidaymakers surveyed, 46 percent are interested in visiting Chinaand a further 8 percent have already done so (English News, 2011). Chinese Govt has been able tomaintain a constant growth rate of 7% annually in the tourism industry of China with furtherpotential. Nearly 10 million people are directly employed in tourism industry in China. Tourism hasbecome a key industry which has a close bearing on the livelihood of hundreds of millions of peopleand Chinese Govt’s attempt in maintaining these figures by attracting more foreign tourists hasbeen successful so far. The country has been able to brand its image and identity as a very obviouschoice in the UK tourist’s consumer market. Much of the effort in bringing China to this stage todaygoes in its constant attempts for creating ‘Brand China’ over the years.Ch.3 Ethical and Pragmatic issues (Gaps and Vulnerabilities with reference to currentscenario and approach of Government) in creating Tourism value for IndiaGoing further after analysis on relevance and significance of NB for BRICS and our country inconsideration specifically, India there is a need to highlight the gaps and vulnerabilities India isfacing today in implementing and successfully having built ‘Brand India’.But still we need to do more by emphasizing quality accommodation and promote specific products inIndia like Goa, Kerala, Karnataka, which can boast of Quality hotels, premium properties and Qualityservice. But Quality comes on payment of price and not the perception alone. Indian government must seriously look upon the quality control of tourism services, infrastructural development for tourism related activities and marketing of Indian Tourism services at a global standard, which will help in wealth generation and poverty alleviation at large in monument rich regions.
  8. 8. According to Ministry of Tourism, the Foreign Exchange Earnings in India has grown from US $2889 to $14193 million in this 1997 to 2010 period. Government can tap the huge expenditures on outbound tourists which is increasing at a very fast rate.For the purpose of crafting a communication campaign, a nation identity shouldstress a reality that resonates with people, both within and outside the country.Facts to know! (Source: Indian Tour Operators Promotion Council)Tourist’s inflow from Britain:Every year about 3000,000 tourists from Britain visit India for both business as well asleisure. Statistics as from 2000 to 2010Tourists to India spend more:India is the fastest growing Asia -Pacific market for the International tourist spending.According to the World Travel and Tourism Council, the Indian tourism demand willgrow at an annual 8.8 % over the next ten years.Earnings on Tourism:In 2005 India earned US $ 6.9 billion from inbound foreign tourists, which is more thantwice the US $3.1 billion earned during the year 2002.Leading Tourist destination:with nearly 140 three and two star hotels, Kerala has turned into a major hot spot forforeign tourists. Source: Research In China (In 2006, the revenue of Chinas inbound tourism achieved USD33.95 billion, with a year-on-year growth of 15.9%. The revenue from domestic tourism came to RMB 623 billion, seeing an increase of 17.9% year-on-year)
  9. 9. References and Bibliography

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