Transcript The Importance of Image in National Competitiveness

The Importance
of Image in
National
Competitiveness
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The ICI Partnership
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The
Country Image Specialists
World’s top specialized consultancy
on
country image
A quarter of a century experience
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Countries are like brands,
only bigger and more
important.
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Image
can make a country
commercially viable.
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The best examples:
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Germany
Japan
USA
Italy
France
Switzerland
Thailand
Engineering
Quality
Technology
Design
Fashion
Precision
Tourism
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Country
product image is
cultural/personality
in origin,
but mostly brand driven.
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Brand personalities:
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Mercedes
Sony
Chanel
Rolex
Microsoft
Giant
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Germany
Japan
France
Switzerland
USA
USA or Taiwan?
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Which came first,
Made in Japan
or
Sony?
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Image,
not just reality,
kills.
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Colombia is an example:
• Drugs
• Violence
• Guerrilla warfare
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But, what about…
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Coffee
Flowers
Emeralds
Leather
Scenery
Brand name apparel
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Stop being
defensive!
Go on the image
offensive!
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Rule #1
Realize the importance of
image or branding.
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First, what is a brand?
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Product vs. Brand
Photo courtesy of Montgomery County Historical Society
IBM is a registered trademark of IBM Corporation
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Brand vs. Product
Brand
Emotional
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Product
Functional
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“In the factories,
we make cosmetics.
In the stores,
we sell hope.”
Charles Revson, founder
Revlon
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Benz :
Who cares about cars?
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Mercedes-Benz is a registered trademark of DaimlerChrysler
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Rolex :
Who cares about time?
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Rolex is a registered trademark of Montres Rolex S.A.
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The Marlboro Man
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How much is he really worth?
$400 million
or $40 billion?
Marlboro is a registered trademark of Philip Morris Companies Inc.
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How Swatch Changed the
Swiss Watch Market
Old Market
Watch
Need
Information
New Market
Swatch
Fashion
Appeal
Accuracy
Basic Skill
Craftmanship
Appearance
Design
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“To have your own brand
should be the
ultimate goal of all
manufacturers,
but it’s a long-term
process.”
Stan Shih
Founder & Chairman
Acer
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Some Facts about Brands
• Brands are market leaders
• Brands have higher profit margins
• Brands do not have lifecycles like
products, they are bigger than
products
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Image Positioning
• The key differentiator
• Need vs. want (transport vs. Toyota)
• Answer the question: Why Colombia?
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The World’s Top Brands
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Coke
Marlboro
Sony
McDonald’s
Disney
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Ford
Shell
IBM
Pepsi
Honda
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Conclusion:
Brand image creates
long-term, sustainable,
competitive advantages.
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Part II
Country Image Case
Studies
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New Zealand
Problem:
Too much reliance on European Market
Solution:
“The 7/11 of Asia”
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Mexico
Problem:
No financial confidence
Solution:
“The new Administration means business!”
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Thailand
Problem:
Fragile investor confidence engendered by
Asian financial crisis
Solution:
“Admit ills and commit to painful cures”
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Thailand
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The Importance of Image
A
“Made in Taiwan”
Case Study
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A serious economic
problem
caused by image
• The 25% “discount”
• International jokes
• Consumer prejudice
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A Public & Private Sector
Initiative
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Vice Minister of Economics P.K. Chiang
Secretary General of CETRA Agustin Liu
Stan Shih, Acer
King Liu, Giant
Frankie Hong, Proton
Kunnan Lo, ProKennex
BIPA (Brand International Promotion
Assoc.)
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Three Five-Year Plans
• 1990-95
• 1995-00
• 2000-05
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1st Five-Year Plan
It’s Very Well Made in Taiwan”
Attack weakness- Quality
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Create a Signature
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Communications
Strategies
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Connect with top brands
Connect with high-end products
Use IMC
Competitive SOV
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Target Audience
Influentials
Business
Mass
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Priority Markets
USA
50%
EUR
30%
JAPAN
10%
S.E. ASIA
05%
LATIN AMERICA 05%
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Budgets
Five year, $60 million
Each year:
Advertising:
PR:
Events:
Program:
$5 million
$1.5 million
$2.5 million
$3 million
TOTAL
$12 million
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Awards Program
Broad:
Symbol of Excellence
Focused:
Gold & Silver Awards
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Seminar Program
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Upgrade promotion materials
How to deal with foreign media
Product launches/corporate identity
Advertising & media planning
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Taipei News Bureau
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Central information point
MATs
Wire service features
Major media hits
Creativity driven
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International Advertising
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International Advertising
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International Advertising
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Event Marketing
• Award winner exhibitions
• Product launches
• Annual National Awards Ceremony
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Domestic Communications
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Monthly newsletter
Media relations
Events
Product launches
Awards Program
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2nd Five Year-Plan
Attack with strengths!
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Core Competencies
• Genius for cost-down manufacturing
• Innovation for
affordability/commercialization
• Functions up, cost down added value
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Long-term Competitive
Advantages
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Flexibility
Time to market
Low-cost engineering base
Components infrastructure
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Gallup Benchmark Survey
Chief Strengths:
Value for Money
Innovative
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We coined a new term:
Innovalue.
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Taglines:
Taiwan. Your Source for
Innovalue.
Taiwan. Innovalue Island.
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Innovalue
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Innovalue
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Innovalue
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Result?
Transformed the
“Made in Taiwan” image from rubber
ducks to Silicon Island.
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Part III
Summary of
Eight Essential Steps
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Realize the importance of image!
Conduct proper analysis/positioning
Create a signature
Build unity and consistency
Make a long-term commitment to goals
Make a competitive investment/SOV
Use IMC
Set world-class standards
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Part IV
A Case for Colombia?
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Colombia
• Location
• Location
• Location!
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Challenges
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Current image
Few international brands
Commodities-based economy
Travel advisories
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Advantages
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Location
Soft imagery
Creative
High standards
Committed to goals
Juan Valdez icon
Potential for robust economic growth
Youthful nation
New Start
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Colombia’s Hidden
Treasures
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Coffee
Flowers
Lingerie
Bananas
Emeralds
Orchids
#3
#2
#3
#3
#1
#1
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Carnations
Roses
Adidas clothes
Biodiversity
Fresh water
Keeping secrets!
#1
#3
#1
#1
#4
#1
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The New Colombia
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A makeover for Juan Valdez
Brand name apparel
Flowers
Biodiversity
Shakira!!!!!!!!!!!!
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Some Recommendations
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Get a head start, don’t wait for competition
Build strategic foundation first
Make a long-term commitment/vision
Conduct domestic campaign
Simultaneous political PR
Support the new Administration
Go on the OFFENSIVE!!
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Final Thought
Remember
the
Germans and Japanese!
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