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'Nation Branding' by Dr. Syed Ferhat Anwar Sir.

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'Nation Branding' by Dr. Syed Ferhat Anwar Sir.

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'Nation Branding' by Dr. Syed Ferhat Anwar Sir.

  1. 1. CONTEMPORARY STUDY FROM A GLOBAL BUSINESS PERSPECTIVE NATION BRANDING
  2. 2. Dr. Syed Ferhat Anwar Professor Institute of Business Administration, University of Dhaka
  3. 3. Toyota Toyota Japanese automobile manufacturer Japanese automobile manufacturer
  4. 4. Aarong Bangladeshi handicrafts manufacturer
  5. 5. Mercedes-Benz German automobile manufacturer
  6. 6. 1 . What is a Nation Brand?
  7. 7. ‘A nation’s “brand” generally refers to the common images, perceptions and associations people have with that nation. Therefore, “nation branding’ is an important tool used by countries to create, change or promote a distinct self-image and international reputation that serves the nation’s interests in a positive and effective way.’
  8. 8. IN OTHER WORDS…. “A PROMISE that a nation makes.” Does it DELIVER?
  9. 9. TWO KEY SCHOOLS OF THOUGHT
  10. 10. Simon Anholt
  11. 11. Wally Olins
  12. 12. CONVERGING ON…. “DEVELOPING A NATION’S IMAGE TO BE ABLE TO CREATE A PROMISE Does it DELIVER?
  13. 13. 2. Why is Nation Branding important?
  14. 14. COMPETITIVE ADVANTAGE
  15. 15. BUSINESSES GETTING GLOBAL
  16. 16. Manufacturing is Globalized Designed in the USA Made in VIETNAM Air Zoom Sole made in CHINA Sold at over 700 stores in 6 continents NIKE
  17. 17. Philippines leads the offshore call center business globally with over 400,000 cAa Nlelw cCaepnittael rof aCaglle Cnenttsers, New York Times, November 2012 SERVICES ARE GLOBALIZED
  18. 18. Nations are constantly competing over MANUFACTURING . OUTSOURCING . R & D . BANKING & FINANCE . EDUCATION . TOURISM . SPORT . CULTURE & HERITAGE . CUISINE . AGRICULTURE . NATURAL RESOURCES . CREATIVE INDUSTRIES .
  19. 19. In nations, global stakeholders assess: • COST OF PRODUCTION • FINANCIAL INCENTIVES (TAX BREAKS) • BUSINESS ENVIRONMENT • INVESTMENT CLIMATE • POLITICAL & ECONOMIC STABILITY • EDUCATION & SKILLS OF WORKFORCE • COUNTRY REPUTATION • WEATHER • ENTERTAINMENT FACILITIES • PEOPLE & HOSPITALITY • CULTURE • TOURISM • SOFT POWER
  20. 20. 3. How Naistion Branding assessed?
  21. 21. i. ANHOLT-GFK NATION BRANDS INDEX
  22. 22. Anholt-GFK Nation Brands Index Tourism People Exports NATION BRAND Culture & Heritage Investment & Immigration Governance Nation Brand Hexagon®
  23. 23. Anholt-GFK Nation Brand Index: Overall Brand Ranking (top 10 of 50 nations) 2013 Nation 2012 NBI rank NBI rank 1 United States 1 2 Germany 2 3 United Kingdom 3 4 France 4 5 Canada 5 6 Japan 6 7 Italy 7 8 Switzerland 8 9 Australia 9 10 Sweden 10 --- --- --- 20 Brazil 20 22 Russia 22 23 China 23 31 India 27
  24. 24. ii. BrandFinance Nation Brand Impact TM Framework
  25. 25. METHODOLOGY Nation Brand Impact TM Framework Segments: • Investment • Tourism • Product • Talent + General Segment Categorized as: • Inputs – controllable factors • Throughputs – internal & external reputation • Outputs – measures of current performance Each worth 33% Factors: quality of workforce . ability to attract foreign talent . perception of quality and life . projected GDP growth Tools: government statistics . consensus forecasts . analyst projections . royalty rate to quantify brand value BRAND STRENGTH INDEX Rating range: AAA – very strong to DDD - failing
  26. 26. Most valuable nation brands according to BrandFinance 1. 3. 2. 4. 5. 6. 7. 8. 9. 10.
  27. 27. Winners (% Brand Value increase) 2013 48% increase in Brand Value, US$ 304 Billion Brand Value Hub for Islamic Banking Growing demand for Palm oil Firm National progress (GDP 2020 target to be reached in 2018) 46% increase in Brand Value, US$ 45 Billion Brand Value 38% increase in Brand Value, US$ 83 Billion Brand Value
  28. 28. iii. Bloom Consulting Country Brand Ranking© Bloom Consulting
  29. 29. Bloom Consulting Country, Region, City (CRC) Brand Wheel
  30. 30. Country Brand Ranking Trade (Investment) Edition 2013 1. 2. 3. 4. 5. 70.
  31. 31. Ranking system for Tourism Variables: • Tourism Economic Performance: Tourism economic receipts + Tourism economic growth • Online Search Demand (OSD) based on Brand Tags: Culture + Leisure + Nature + Sports + Niche markets • National Tourism Organization (NTO) effectiveness • Website Analytics & Social Media
  32. 32. Country Brand Ranking Tourism Edition 2013 1. 3. 2. 4. 5. 160.
  33. 33. iv. FutureBrand Country Brand Index
  34. 34. HIERARCHICAL DECISION MODEL AWARENE SS FAMILIA RITY ASSOCIATI ONS PREFERE NCE CONSIDERA TION Do key audiences know that the country exists? How top-of-mind is it? How well do people know the country and its offerings? What qualities come to mind when people think of the country? Association dimensions: Value System, Quality of Life, Good for Business, Heritage and Culture and Tourism. How highly do audiences esteem the country? Does it resonate? Is the country considered for a visit? What about for investment or to acquire or consume its products? DECISION/VISI TATION To what extent do people follow through and visit the country or establish a commercial relation? ADVOCACY Do visitors recommend the country to family, friends and colleagues?
  35. 35. FutureBrand 2012-13 Top Country Brands 1. 10. 110. 2. 3. 4. 5. 6. 7. 8. 9.
  36. 36. BANGLADESH STANDINGS AND TAKEAWAYS METH OD STANDI NG TAKEAWA YS ANHOLT-GFK NATION BRANDS INDEX - - BrandFinance Nation Brand ImpactTM Framework Rating: A-Value: US$ 83 Billion • Strengthen Domestic Brand and Value • Emphasize Bloom Consulting Tourism: 160th investment Country Brand Trade: 70th Ranking© • Strengthen, Online Service Delivery, Internet Presence and Build strong online FutureBrand journalistic presence Rank: 110th • Overcome negative Country Brand Index perception • Develop investment and tourism
  37. 37. 4. Phases of Nation Branding
  38. 38. i. Identifying existing issues with the current brand a. Capitalizing on core competencies Education R & D Financial institutes Automobiles Luxury items Oil R&D
  39. 39. i. Identifying existing issues with the current brand b. Combatting negative image MADE IN CHINA associated with poor quality USSR disintegration in 1991; recession in the late 90s Drug trafficking Apartheid, poverty, corruption NBI # 31 NBI # 25 NBI # 36 c. Combating dilute image Post split from Malaysia in 1965, suffered identity crisis Had to distinguish itself from China Overpopulated, corrupt, prone to natural disasters
  40. 40. ii. Starting the process of brand delivery • U.S. Government has long recognized the importance of public support for research universities. • Oil Reserve discovered in 1969 • R&D and investment in petro-based industries • Government formed a separate ICT ministry in 2011 • Also begun work on establishing two hi-tech parks in Gazipur and Jessore. • Software and hardware industries working on ICT to be employed for these massive establishments.
  41. 41. iii. The tools used for Brand Propagation a.People b.Media c. IR d.Military e.Ministries f. Education & Service Sector g.Investment h.Private tools i. Exports j. Special Events
  42. 42. iii. The tools used for Brand Propagation a. People • Promoting nationalism among citizens • In essence, a nation’s people, beliefs and history give rise to a Nation’s Brand identity (Core Values), which gives rise to a Nation’s Brand Effect (NBE), which in turn sustains and reinforces both—a literal full cycle of Brand building Beliefs, History Nation Brand Identity Nation Brand Effect
  43. 43. iii. The tools used for Brand Propagation b. Media • Media, being the primary tool to join the audience with the message, is vital for brand perception. • Both authorized and unauthorized media are relevant • China routinely “controls” the news coverage to remove damaging news within the authorized sphere, while there is huge censorship on social media websites • In Bangladesh & Pakistan, there is relative freedom of the press, but the coverage tends to be more negative, in both formal and informal media, particularly for Rana Plaza and the social media • USA and Israel carefully control international coverage of interventions (CNN, BBC) to provide a positive outlook of activities to foster a sense of optimism.
  44. 44. iii. The tools used for Brand Propagation c. International Relations • Germany and France within the EU • USA within the NATO • Russia within customs Union • Iran within its region • Saudi within the Middle East • The currency swap deal between China and South Korea • • Bangladesh has entered a bilateral arms deal with Russia, while also recently gaining co-operation from Japan as a 6bn promissory investment, and proposals of aid for nuclear reactor.
  45. 45. iii. The tools used for Brand Propagation d. Military Statement • USA maintains its status as the #1 country in the world • Russia and China are militarily active as well.
  46. 46. iii. The tools used for Brand Propagation e. Ministries 1.Tourism/Culture 2.Encouraging Immigration 3.Promoting R&D
  47. 47. iii. The tools used for Brand Propagation f. Education & Service Sector • Ranked 37th in the world in education spending as a percentage of gross domestic product, however, US remains the best-represented country in the rankings • While private US universities continue to dominate the top tiers of the ranking, public universities have dropped an average of 20 places since the financial crisis of 2007/8.
  48. 48. iii. The tools used for Brand Propagation g. Investment • recipient of the 3rd largest amount of FDI in the world. • third-largest foreign exchange market in Asia and the sixth-largest in the world. • spent billions to build Burj al Khalifa • Developing Dubai as the commercial hub of the world
  49. 49. iii. The tools used for Brand Propagation h. Private tools • Apple Inc.’s “Think Different Campaign”—which attaches to the US Core Values of independence, self expression, freedom, creativity, etc. when we purchase an Apple, we are really buying the Core Values of America (Nation Brand) and Apple (Corporate Brand) • Private universities of USA has helped to establish the best education system in the world, further fostering USA’s nation branding • South Korea, focused on building up large economic champions, laying the foundation for successful South Korean brands in the world market, such as Samsung and LG, KIA and Hyundai. • Bangladesh ‘s BGMEA working on RMG branding
  50. 50. iii. The tools used for Brand Propagation i. Exports • 2nd highest exporter in 2012: $1.564 trillion • 3rd highest exporter in 2013: $1.497 trillion • 6th in BSI Investment Ranking 2013 • 1st in BSI Goods & Services Ranking 2013 Top 5 Exports 1.Refined Petroleum (4.2%) 2. Planes, Helicopters, and/or Spacecraft (3.2%) 3. Packaged Medicaments (3.1%) 4. Cars (2.7%) 5. Gas Turbines (2.4%) *according to The Observatory of Economic Complexity
  51. 51. iii. The tools used for Brand Propagation j. Special events • Copenhagen Hosted the environmental summit (post Kyoto) • Set a goal of carbon neutrality by 2025 • hosted (partially) ICC World cup, t20 world cup and concurrently ran the beautiful Bangladesh campaign to boost nation brand
  52. 52. Perception of Bangladesh Political violence Natural disasters Poverty
  53. 53. Poverty Between 1990 and 2010 life expectancy rose by 10 years, from 59 to 69 Bangladeshis now have a life expectancy four years longer than Indians, despite the Indians being, on average, twice as rich. as the rich. Even more remarkably, the improvement in life expectancy has been as great among the poor as the rich.
  54. 54. Poverty “over the past 20 years, Bangladesh has made some of the biggest gains in the basic condition of people’s lives ever seen anywhere.” The most dramatic period of improvement in human health in history is often taken to be that of late-19th-century Japan, during the remarkable modernisation of the Meiji transition. Bangladesh’s record on child and maternal mortality has been comparable in scale. http://www.economist.com/news/briefing/21565617- bangladesh-has-dysfunctional-politics-and-stunted-private- sector-yet-it-has-been-surprisingly
  55. 55. Prevalence of undernourishment in total population 16.3%
  56. 56. Income Inequality (GINI index)
  57. 57. Health achievements
  58. 58. Natural disaster resiliency
  59. 59. Bangladesh - Key Tourism Indicators - International tourism, receipts (current US$) 110,000,000 (current US$) in 2012 Tourism
  60. 60. • Number of Banks: Economic Freedom Country Economic Freedom Growth Sri Lanka 60 - 0.7 India 55.7 0.5 Pakistan 55.2 0.1 Bangladesh 54.1 1.5
  61. 61. Bangladesh was the second favored investment destination in South Asia last year: UNCTAD Of the $1.6 billion FDI that Bangladesh received on 2013 $541 million came as equity (direct investment in Bangladesh) $361 million as intra-company loans (debt transactions between parent enterprises and affiliates) $697 million were reinvested earnings (investors' share of profits not distributed as profits). Year Proposed Local Investment Proposed Foreign Investment Total Proposed Investment Growth % Project BDT Project BDT Project BDT 2005-2006 1754 18370 135 24986 1889 43356 124.62 2006-2007 1930 19658 191 11925 2121 31583 -27.15 2007-2008 1615 19553 143 5433 1758 24986 -20.89 2008-2009 1336 17117 132 14749 1468 31867 27.54 2009-2010 1470 27414 160 6261 1630 33678 5.67 2010-2011 1298 39976 148 26935 1446 66912 98.71 2011-2012 1604 497078 209 338910 1813 835989 212
  62. 62. GOVERNANCE  The current government’s Digital Bangladesh by 2021 vision proposes to mainstream ICTs as a pro-poor tool to eradicate poverty, establish good governance, ensure social equity through quality education, healthcare and law enforcement for all, and prepare the people for climate change • Human Resource Development • Connecting Citizens • Digital Government for Pro-Poor Service Delivery • ICT in Business
  63. 63. Exports
  64. 64. Exports
  65. 65. Peacekeeping •Bangladesh now contributes the largest number of female police to UN peacekeeping operations with around two hundreds female officers & peacekeepers serving in eight UN peacekeeping missions In terms of leadership, In 2013 Bangladesh has been elected the Vice-Chair of the United Nations Peace Building Commission (UNPBC), the UN advisory body that supports peace efforts in countries emerging from conflict
  66. 66. Thank You

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