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3.4.1.
Use of Marketing Communication Tools ... 51
3.4.2.
Nation Branding through the "Six Natural Channels" ... 53
3.4.2.1.
Tourism ... 53
3.4.2.2.
Brands ... 55
3.4.2.3.
Policy ... 57
3.4.2.4.
Investment ... 59
3.4.2.5.
Culture ... 60
3.4.2.6.
People ... 62
3.4.3.
Implementation and Control ... 64
3.5.
Concept Critics and Difficulties ... 65
3.5.1.
Appropriateness of the Term "Brand" ... 65
3.5.2.
Difficulties in Controlling ... 66
3.5.3.
Robustness of Nation Images ... 67
4.
Analysis: Nation Branding in Latin America ... 69
4.1.
Nation Branding in Latin America ... 69
4.1.1.
General Information about the Region ... 69
4.1.2.
Nation Branding Practices ... 71
4.1.2.1.
Current Nation Branding Campaigns ... 71
4.1.2.2.
Performance of Latin American Nation Brands ... 76
4.1.2.3.
Nation Branding Potential for Brazil, Chile and Colombia ... 79
4.2.
Country Examples of Nation Branding Practices in Latin America ... 81
4.2.1.
Brazil ... 81
4.2.1.1.
Country Background Information ... 81
4.2.1.2.
Brazil's Nation Image ... 84
4.2.1.3.
Prior Nation Branding Campaigns Plano Aquarela 2005-2010 ... 86
4.2.1.3.1.
Advertisements ... 89
4.2.1.3.2.
Events and Further Activities ... 91
4.2.1.4.
New Nation Branding Campaign Plano Aquarela 2010-2020 ... 92
4.2.1.4.1.
Advertisements ... 93
4.2.1.4.2.
Events and Further Activities ... 95
4.2.1.5.
Effectiveness of Brazil's Nation Branding Activities ... 96
4.2.2.
Chile ... 97
4.2.2.1.
Country Background Information ... 97
4.2.2.2.
Chile's Nation Image ... 99
4.2.2.3.
Prior Nation Branding Campaign "Chile, All Ways Surprising" ... 100
4.2.2.4.
New Nation Branding Campaign "Chile is good for you" ... 103
4.2.2.4.1.
Key Messages ... 105
4.2.2.4.2.
Advertisements ... 106
4.2.2.4.3.
Events and Further Activities ... 108
4.2.2.4.4.
Diaspora Activation and Nation Brand Ambassadors ... 109
4.2.2.5.
Effectiveness of Chile's Nation Branding Activities ... 110
4.2.3.
Colombia ... 111
4.2.3.1.
Country Background Information ... 111
4.2.3.2.
Colombia's Nation Image ... 113
4.2.3.3.
Prior Nation Branding Campaign "Colombia is Passion!" ... 114
4.2.3.3.1.
Advertisements, Events and Further Activities ... 116
4.2.3.3.2.
Campaign "Colombia, the risk is wanting to stay" ... 118
4.2.3.4.
New Nation Branding Campaign "The Answer is Colombia" ... 120
4.2.3.5.
Effectiveness of Colombia's Nation Branding Activities ... 124
5.
Discussion ... 126
5.1.
Scope of Nation Branding Activities ... 126
5.2.
Inclusion of Elements in Nation Branding Strategies ... 127
5.3.
Overall Comparison of Nation Branding Activities ... 132
6.
Conclusion and Recommendations ... 135
6.1.
Conclusion and General Recommendations ... 135
6.2.
Recommendations for Further Research ... 136
Reference List ... 138
Appendices ... 173
i
Abstract
In the globalized world of today a well-elaborated, long-term oriented nation branding
strategy which includes the government, the public and the private sector as well as the nation´s
citizens themselves can help nations to improve and to better control their nation image. Nation
branding activities increase the countries´ competitiveness in the global marketplace and help to
foster the tourism arrivals, inward foreign direct investment flows and exports as well as they
help to attract talented workforce and students.
Despite its growing importance, most Latin American countries still have not engaged
enough in the area of nation branding and mostly only focus their activities on the tourism
promotion. The region´s countries have a good image regarding soft factors such as their people
and tourism attractions but have a weak image regarding their products, services and investment
opportunities. Brazil has a relatively good nation image in many dimensions but still has not
developed an extensive nation branding strategy. Chile and Colombia are among the Latin
American countries which have started to conduct more complete and advanced nation branding
activities. Although such advances can be observed, there is still a lot of improvement potential in
the nation branding practices of Latin American countries.
ii
List of Figures
Figure 1 - Aaker's brand equity model ... 10
Figure 2 - Hexagon for creation of a nation image ... 17
Figure 3 - Model of Asset-Based Nation Brand Equity ... 20
Figure 4 - Nation Brand Hexagon ... 25
Figure 5 - Strategic plan for the creation and maintenance of nation brands ... 37
Figure 6 - Nation brand competitor analysis matrix ... 43
Figure 7 - Logo from German´s campaign "Germany Land of Ideas" ... 50
Figure 8 - Logo from South Africa´s campaign "South Africa Inspiring new ways" ... 51
Figure 9 - "Plano Aquarela"´s logo ... 89
Figure 10 - Advertisement example for the Brazilian sun and the beaches ... 90
Figure 11 - Advertisement example for Brazil's diverse tourism offer ... 91
Figure 12 - Advertisement example for the campaign "Brazil is calling you. Celebrate life here."
... 94
Figure 13 - Advertisement example for the campaign "The World meets in Brazil. Come to
celebrate life." ... 95
Figure 14 - "Chile, All Ways Surprising" logo ... 102
Figure 15 - Published print advertisements from "Chile is good for you" ... 107
Figure 16 - "Colombia is Passion!" logo ... 116
Figure 17 - "Colombia is Passion!" on a package of Margarita potato chips ... 118
Figure 18 - Print advertisement for "Colombia, the risk is wanting to stay" in Ecuador ... 120
Figure 19 - "The answer is Colombia" logo ... 122
iii
List of Tables
Table 1 - Anholt-GfK Roper Nation Brands IndexSM and FutureBrand Country Brand Index
overall brand ranking for the "Top 10" nations ... 29
Table 2 - Current nation branding campaigns in Latin American countries ... 73
Table 3 - CBI for Latin American Countries from 2010 to 2012 ... 78
Table 4 - Promoted sectors in Brazil´s, Chile´s and Colombia´s nation branding activities ... 126
Table 5 Included elements in Brazil´s, Chile´s and Colombia´s nation branding activities ... 128
iv
List of Appendices
Appendix 1 - CBI 2012 Full List of Countries ... 173
Acronyms
APEX
Brazilian Agency of Promotion of Exports and Investments
CBC Country
Brand
Colombia
CBI
FutureBrand Consultancy´s Country Brand Index
COO Country-Of-Origin
CEPAL
Economic Commission for Latin America and the Caribbean
FARC
Revolutionary Armed Forces of Colombia
FDI Foreign
Direct
Investment
FICH
Image of Chile Foundation (Fundación Imagen de Chile)
GDP Gross
Domestic
Product
G20
Group of 20
HDM
FutureBrand´s proprietary Hierarchical Decision Model
N.A.
Not available information
NBI
Anholt-GfK Roper Nation Brands Index
OECD
Organisation for Economic Co-operation and Development
UK United
Kingdom
UN United
Nations
USA
United States of America
1
1.
Introduction
Due to the rapid advance of globalization, the world is becoming an interdependent
marketplace. This trend does not only increase the competition between companies, but
also the global competition between nations. Every country must compete with each other
for its share of the worldwide tourists, foreign direct investors, consumer preference for
their export products, talented workforce and students (Dinnie, 2008; Fan, 2006; Kaneva,
2011). Since in this crowded and competitive global marketplace, the majority of people,
foreign investors and organizations neither try nor take enough time to learn what other
countries and nations are like, they do not build informed and balanced views about them.
Therefore, most countries and even entire regions are stereotyped and their images are not
always reflecting the whole reality of the country: France is about fashion and design,
Brazil is associated with beaches, carnival and happy people, Paraguay is just a small
neighboring country of Brazil, Germany stands for good engineering and cold humorless
people, and most Latin American countries are about poverty, violence and beautiful
landscapes (Aldunante, 2011; Anholt, 2007; Anholt, 2010; Favre, 2008; FutureBrand
Consultancy, 2012; Kotler & Gertner, 2002; Pipoli 2009 a; Pipoli, 2009 b). Nation images
are considered to be very powerful and important drivers in consumer purchase decisions,
investment decisions and the country´s attractiveness for tourists as well as talented
workforces and students. For this reason, positive nation images result in a significant
competitive advantage (Anholt, 2010; Dinnie, 2008; Moilanen & Rainisto, 2009).
The practice of the so called nation branding is increasing in frequency and im-
portance thanks to the observation that many branding techniques for products and services
can be applied to nations. Similar to companies, nations develop brands which help them to
be more competitive in the global marketplace. Nevertheless, to improve and to better
control nation images is only possible by developing a long-term oriented nation branding
strategy which ensures the coordination between the government, the public, and the
private sector as well as the country´s population (De Chernatony, 2008; Dinnie, 2008;
Kaneva, 2011).
Especially Latin American countries are considered to have a great potential in the
practice of nation branding. The region´s countries are highly stereotyped and suffer from
2
generic and negative images in many dimensions, even though they have a lot to offer to
tourists, consumers, investors, and talented work force and students (Anholt qtd. in Oppen-
heimer, 2008; Anholt qtd. in George, 2010; FutureBrand Consultancy, 2012; Pipoli, 2009
a). In this book, the author makes a diagnosis of nation branding activities in the region,
and analyzes in detail the cases of Brazil, Chile and Colombia.
1.1.
Problem Statement
Latin American countries have many natural resources, some good export products,
significant economic growth rates, an increased political and economic stability and many
tourism attractions (Economist Intelligence Unit, 2012 a; OECD, 2013 a; Ruggles-Brise,
2012). Nation branding could help the Latin American countries to make use of these assets
and be more competitive in the global marketplace. Despite the huge potential and the
increasing importance of nation branding, until the date the practice of nation branding has
only limitedly been adopted by most of the region´s countries. While nation branding aims
to improve the overall image of a nation and to increase the tourism arrivals and exports, to
attract FDI, talented workforce and students, the majority of the Latin American countries
are focusing their nation branding activities solely on the tourism sector. Moreover, when
analyzing the region´s nation images, the countries generally have a good image on the soft
factors such as their people and tourist attractions but have a weak image on hard factors
such as their products, services and investment opportunities (Anholt qtd. in Oppenheimer,
2008; Anholt qtd. in George, 2010; FutureBrand Consultancy, 2012). In order to enable the
achievement of the countries´ whole potential in their nation images and to be more
competitive in the mentioned sectors, the Latin American countries need to develop better-
coordinated nation branding strategies.
1.2.
Objectives
1.2.1.
General Objective
On the basis of an extensive literature review, the general objective of this work is
to develop a diagnosis of the nation branding activities Latin American countries have
conducted in the last years by taking Brazil, Chile and Colombia as examples.
3
1.2.2.
Specific Objectives
The specific objectives of this work are the following:
· To define what a nation brand and nation branding are.
· To give an overview of how nation images are built and how they can be measured.
· To give an overview of how a nation branding strategy should be developed and what
elements it should include.
· To find out which Latin American countries are active in nation branding and which
sectors these initiatives embrace.
· To find out what general nation images the Latin American region has.
· To give an overview of the most important aspects of the economic and political
situation of Brazil, Chile and Colombia in order to improve the understanding of their
current nation images and areas for improvement.
· To analyze what nation images Brazil, Chile and Colombia have and how they perform
in the nation brand indices.
· To analyze what nation branding activities Brazil, Chile and Colombia have conducted
from 2005 to 2010.
· To make a comparison between the nation branding activities of the three countries by
evaluating to what extent they have implemented the recommended steps and elements
of a nation branding strategy.
· To make a short personal evaluation and recommendation for further improvement of
the Latin American nation branding activities based on the prior findings.
1.3.
Scope and Limitations
This book gives the reader an overview of the concept of nation branding. It moreo-
ver explains how a nation branding strategy should be developed and what elements it
should contain. Based on this information on nation branding strategies, the work describes
which current activities Latin American countries are implementing and analyzes in detail
the nation branding practices of Brazil, Chile and Colombia from 2005 until the date. The
nation branding practices of the Caribbean countries are not included in this description.
4
The practices of other countries such as France and Germany are included as references and
examples but are not further analyzed.
Expert opinions on the effectiveness of nation branding practices in general and
from different countries are mentioned. Nevertheless, no detailed evaluation of the effec-
tiveness of nation branding strategies is conducted. Such an evaluation is nearly impossible
due to the lack of available metrics to make a causal link between the nation branding
activities, the nation image improvement and the country´s success in the different areas.
Nation images are furthermore driven by many uncontrollable factors whose extent of
influence cannot be measured. Since nation images are subject to many different factors
and stakeholders, the measurement of nation images is highly complex and requires the
conducting of various different studies as well as extensive research over a longer period of
time. Such a research would go beyond the scope of this book and therefore it will only
make use of secondary sources such as expert opinions and nation brand indices.
Due to the newness of nation branding, this book will shed light on the topic. Never-
theless, the novelty of the topic also leads to a limitation of this work because it has to rely
on the little theory available on the field of nation branding.
1.4.
Justification
The realization of nation branding activities is relatively new but it is growing in
frequency and importance because of the increased global competition nations nowadays
face for the attraction of tourists, inward investment and the sales of export products
(Anholt, 2010; Dinnie, 2008; Fan, 2010; Moilanen & Rainisto, 2009). In recent reports
such as the Country Brand Index 2012 from the FutureBrand Consultancy, Latin America
is identified to be the world´s region which has the greatest potential in the area of nation
branding. Brazil, Chile and Colombia are even mentioned among the 15 countries which
are considered to have the worldwide greatest potential in nation branding and will be some
of the leading nation brands in the near future. Moreover, the analysis of these three
countries is interesting because each has a different starting point in nation branding
(Anholt qtd. in Oppenheimer, 2008; Anholt qtd. in George, 2010; FutureBrand Consultancy,
2012). Besides the increasing importance of nation branding activities and the identified
great potential in the region, Latin America´s economic and political importance has also
5
constantly increased during the last years (Economist Intelligence Unit, 2012 a; OECD,
2013 a). For these reasons a diagnosis of the region´s nation branding activities appears to
be highly interesting. Furthermore, until the date nearly no theoretical or empirical en-
gagements on Latin America´s nation branding practice exist.
Therefore, the findings of this research work will be of a particular interest for the
academic field as well as for the organizations being responsible for the nation branding
practices of the respective Latin American countries. The book may additionally contribute
to the development of a deeper understanding of the necessity of more structured nation
branding practices in Latin America.
1.5.
Structure
The main concepts of brand and branding are introduced in the second chapter. This
chapter further gives general definitions about nation brands and nation branding as well as
the creation and measurement of nation images.
The third chapter presents the three strategy phases with its main steps which have
to be implemented in a nation branding strategy. The chapter also informs about the most
important factors and elements which have to be taken into consideration in order to make
nation branding activities more effective. The chapter ends by mentioning the most
common critics and difficulties in the nation branding practice.
Chapter four analyzes how the mentioned elements and phases of a nation branding
strategy have been conducted in the Latin American countries. The chapter starts by giving
an overview of general information on the region and current nation branding practices of
all countries. It additionally informs about the nation images Latin American countries have.
Since a great potential in nation branding is seen in Brazil, Chile and Colombia, the nation
branding practices in these three countries are analyzed in more detail. After giving some
background information about each country, the nation images and current nation branding
activities are analyzed.
The subsequent discussion in chapter five compares the nation branding activities
being conducted in Brazil, Chile and Colombia. The comparison is based on the analysis of
promoted sectors and the inclusion of important elements in the nation branding activities
6
mentioned in chapter three. This chapter also makes statements on how the nation branding
practices of the three countries and in Latin America in general could be further improved.
Finally, chapter six draws general conclusions on the analysis and the concept of na-
tion branding and gives general recommendations. Moreover, this final chapter gives
recommendations for further research on the concept of nation branding in general and
more specifically on Latin American countries.
7
2.
Main Concepts of Branding and Nation Branding
2.1.
Main Concepts of Branding
2.1.1.
Definition of Brand and Branding
The American Marketing Association defines a brand as a "name, term, design,
symbol, or any other feature that identifies one seller's good or service as distinct from
those of other sellers" (American Marketing Association, 2012, Resource Library, Diction-
ary, B, para. 106). Essentially, a brand is the seller´s promise to deliver the buyer a unique
and specific set of characteristics, benefits and services consistently (Kapferer, 2012).
Furthermore, a brand is defined as an impression of a product or service in the client´s
minds embracing all tangible and intangible elements (Moilanen & Rainisto, 2009). Strong
brands also help to distinguish one product or service from others satisfying the same needs
(Kotler & Keller, 2012).
Brands are very complex constructs which can communicate up to six levels of
meanings:
1.) Attributes: brands bring to mind specific attributes. Mercedes for example suggests
good quality, expensive, durable, high prestige vehicles.
2.) Benefits: the attributes are translated into functional and emotional benefits. "Durable"
as one of Mercedes´ attributes could be translated into the functional benefit that the
buyer does not have to buy another car for a long time.
3.) Values: a brand says something about the values of the producer. Mercedes for example
stands for high performance, security and prestige.
4.) Culture: a brand may also represent a specific culture. Mercedes for example represents
the German culture of good organization and efficiency.
5.) Personality: the brand can project certain personality which could for example be a
person or animal fitting well to the product´s attributes. In the case of Mercedes it could
be a lion king.
8
6.) User: the brand suggests the type of buyer or consumer of the product via for example
the models in the advertisements (Kotler, 2002).
Anholt (2007) describes branding as "the process of designing, planning, and com-
municating the name and identity" (p. 4) of a brand with the objective of building up or
managing its reputation. Companies and organizations invest a lot of financial resources in
this process in order to create a brand or to change the actual perception of a brand by for
example removing stereotypes or false judgments (Anholt, 2007; Kotler & Keller, 2012).
Nevertheless, it is important to distinguish between the brand identity and the brand image.
A brand identity is assembled by the brand´s owner and is the way how he wants the
consumers to experience the brand (Harvard Business Review, 2000). The brand identity
normally does not coincide with the consumer perceptions of a brand, the so called brand
image (Kotler & Keller, 2012; Moilanen & Rainisto, 2009).
Consumers create their own images of brands in their minds every time they ob-
serve something related to the brand. These "brand contacts" (Schultz, 2009, p. 225) can
come from various sources: planned messages, product messages, service messages and
unplanned messages. Only the planned messages are intended by the brand owners and can
be planned and controlled by them. Planned messages include chosen factors of the brand
identity which are communicated via the application of marketing techniques as for
example advertising, merchandising materials, press releases and events. The product
messages include all messages sent by the products´ features or physical characteristics as
for example the design and pricing. Service messages originate from all contacts in the
service processes such as service representatives, secretaries or delivery staff. Whereas the
mentioned three sources can be at least partly planned and controlled by the brand owner,
other messages are unplanned. Unplanned messages include for example brand or company
related news stories, word of mouth or comments made by competitors.
All these messages serve as little pieces of information from which the customers
develop their own opinion of a brand like a "jigsaw puzzle" (Moilanen & Rainisto, 2009, p.
174). As every customer has a different and unique set of brand contacts, the brand images
in the customer´s minds can vary a lot from one to another (Moilanen & Rainisto, 2009).
Another concept related closely to brand image is the brand positioning.
9
2.1.2.
Brand Positioning
Kotler and Keller (2012) define brand positioning as the "act of designing a compa-
ny´s offering and image to occupy a distinctive place in the minds of the target market" (p.
298). The key task of brand positioning can be seen in the establishment of relevant and
distinctive "points of difference" in the customer´s minds (Kotler & Keller, 2012, p. 298).
Points of difference are the attributes and benefits consumers generally associate with a
brand, evaluate as positive, and which they believe not to find in the same extent in a
competing brand. The company´s positioning decision is considered as a "crucial strategic
decision for a company or a brand" (Harrison-Walker, 2011, p. 1) because it influences not
only consumer´s perceptions and choices but also strategic marketing decisions. A compa-
ny´s positioning strategy should ensure that all elements of the marketing strategy are
consistent and supportive. The result of successful brand positioning is the creation of a
"customer-focused value proposition" (Kotler & Keller, 2012, p. 298) that is to say the
reason why customers should buy products and services from that specific brand (Harrison-
Walker, 2011; Kotler & Keller, 2012).
The value of a brand, the so called brand equity, largely depends on how successful
a brand´s positioning strategy results. Innis Maggiore, a leading advertising agency in brand
positioning, even states that "without positioning, brand value isn´t sustainable because the
position itself is where a brand´s (...) value lies" (Innis Maggiore, n.d., para. 2).
2.1.3.
Brand Equity
Although the basic branding principles stay the same, there exist many different
models of brand equity. One of the most cited and established models is from David A.
Aaker (Bamert, 2005), a marketing professor and brand consultant (Aaker, 2004). Even
though this model was developed for branded products, according to Moilanen and Rainisto
(2009) it can be applied to places. In their opinion it "focuses on the most central strategic
issues in marketing planning" (p. 12) which is also valid for the marketing of places.
According to Aaker´s model, the brand equity represents "a set of brand assets and
liabilities linked to a brand, its name and symbol that add to or subtract from the value
provided by a product or service to a firm and/or that firm´s customers" (Aaker, 1991, p.
10
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11
The awareness of the brand name and the brand symbol as the second influencing
category is decisive in the comparison with similar products. Familiarity is perceived
positively and makes the customers to include products or services from the brand into their
purchase decision (Bamert, 2005).
The brand image, also named "perceived quality" contains the subjective customer´s
perception of the quality of a product or service when related to alternatives (Aaker, 1991).
The value of a brand as well depends a lot on the brand associations, that is to say
everything that customers link directly or indirectly to a brand. Brand associations can be a
sustainable asset for companies and organizations, since it is very difficult to "dislodge a
brand that has achieved a dominant awareness level" (McLoughlin & Aaker, 2010, p. 177).
The dimension "other proprietary brand assets" includes all legal and institutional
advantages a brand has in comparison to other brands such as patents or also sales channels
(Aaker, 1991). These rights and registrations help the expansion and protection of the brand
(Moilanen & Rainisto, 2009).
So, according to Aaker´s model, the higher the brand awareness and brand loyalty,
the wider the property rights, the more positive the brand image and brand associations, the
more valuable is the brand. It is important to mention that these five dimensions cannot be
seen independently, because there are many links between them. A strong and positive
brand image and a high brand awareness and loyalty entail various benefits for the brand
owner.
2.1.4.
Benefits of a Brand
One of the benefits generated by a strong brand is that the brand´s points of differ-
ence help consumers to identify products or services more easily and facilitate their
decision making (Kapferer, 2012). Moreover, brands reduce the perceived risk of choice for
consumers since they identify the brands with certain levels of standardized performance
and quality. Another advantage of having a strong brand is the emotional dimension
because customers who have had positive experiences with certain brands tend to be loyal
and build a strong relationship of familiarity and intimacy to these brands (Temporal & Lee,
2003; Kapferer, 2012).
12
This brand loyalty helps to create entry barriers for other companies and makes the
demand more predictable and secure. Customers are also often willing to pay a higher price
for a good brand. Due to all these benefits a strong brand offers, brands are very valuable
assets and can help to "secure a competitive advantage" (Kotler, 2012, p. 26).
Brands are not only beneficial for companies and its products but can additionally
bring a lot of benefits for nations. Branding nations is a relatively new concept with
growing importance (Fan, 2008 a). In the globalized world of today, nations are increasing-
ly competing with each other for the attraction of tourists, investors, talents and the sales of
their exports. In order to succeed in the mentioned areas, a good nation image is becoming
essential. Therefore, more and more nations try to improve their image by applying nation
branding activities (Anholt, 2010; De Chernatony, 2008; Dinnie, 2008; Fan, 2006; Future-
Brand Consultancy, 2012; Harrison-Walker, 2011).
2.2.
Main Concepts of Nation Branding
2.2.1.
Definition of Nation Branding
The term "nation branding" was coined by Simon Anholt in 1996 (GfK Custom Re-
search North America, n.d.) as a result of the observation that "the reputations of countries
are rather like the brand images of companies and products, and equally important" (Anholt,
2007, p. xi). The concept of nation branding is also often mentioned under the term
"country branding". The terms "country brand" and "nation brand" as well as "country
branding" and "nation branding" are used interchangeably and all describe the same
concept (Fan, 2008a; GfK Custom Research North America, n.d.; Moilanen & Rainisto,
2009; Outhavong, 2007). Even though used synonymously, the words country and nation
have different meanings. Country refers to an area of land with borders which is "occupied
by a nation" (Fan, 2008a, p. 2) whereas a nation is generally defined as a "group of people
who are connected to each other through common aspects such as culture, ethnicity, and
ideology" (Outhavong, 2007, p. 16). A nation also includes the concept of physical bounda-
ries (Outhavong, 2007). Nevertheless, for the description of the concept, the terms nation
brand and nation branding are the more frequently used and are also considered to be more
appropriate (Hanna & Rowley, 2008). This is especially the case when taking into account
13
the creation process of a nation image which is built upon elements of the national identity
and its scope (Dinnie, 2008; Fan, 2008a; Outhavong, 2007). Besides that, some countries
consist of more than one nation as for example the United Kingdom. The United Kingdom
consists of four different nations: England, Ireland, Scotland and Wales which all have
different national identities and are therefore mostly branded independently (Watson, 2011;
Dinnie, 2008).
Despite being an "emerging area of interest" (Fan, 2008 a, p. 2), nation branding is a
comparatively new subject for academic research (Fan, 2006) and most information relies
on case studies rather than a conceptual and theoretical approach (Fan, 2008 a; Outhavong,
2007). A large contribution to the topic has been made by Simon Anholt who is considered
as the leading expert on nation branding. He has published about ten books and many
articles on this topic. As an independent branding advisor he advised more than 40 gov-
ernments on nation branding including Afghanistan, Australia, Bhutan, Croatia, Denmark,
Ecuador, Germany, Norway, Saudi Arabia, Scotland, Singapore, South Africa and Turkey
(Burkeman, 2006; Dinnie, 2008; GfK Custom Research North America, 2012; Scottish
Government Analytical Services, 2009; Simon Anholt, n.d. a). Keith Dinnie is seen as
another leading expert on the area of nation branding. He is the author of the first academic
text book on nation branding: "Nation Branding Concepts, Issues, Practice" which was
published in 2008. As the founder of Brand Horizons, a consultancy firm specialized on
place branding, he advised many governments and cities (American Marketing Association,
n.d.; Brand Horizons, n.d.). Although some books and articles were published on nation
branding, there is no consensus about its scope and meaning (Dinnie, 2008; Fan, 2008b;
Fan, 2010). According to Fan (2008a) and Outhavong (2007) most approaches still show
the concept too narrowly. Kotler, Haider and Rein (1993) and others view nation branding
as a form of place marketing. The concept of place branding or place marketing encom-
passes the marketing of cities, regions and countries, so that nation branding is to be seen as
a sub-concept (Moilanen & Rainisto, 2009).
The same authors (Kotler, Haider and Rein, 1993) also state nation branding is
simply another term used for the country-of-origin effect or a tourism issue. The country-
of-origin effect and product-country image (Fan, 2006) as well as destination branding
(Moilanen & Rainisto, 2009) and public diplomacy (Fan, 2008 b) can be considered as
14
related concepts and the main sources of nation branding but it is necessary to make a
distinction between these (Fan, 2006). The country-of-origin effect and product-country
image refer to the impacts the products´ country of origin and the country´s image have on
the consumer´s evaluation or vice versa (Kotler, Haider, & Rein, 1993) and may only show
one side of the nation. On the other hand, in the case of nation branding, the branding
applies to the overall nation image. Nation brands are generally defined as "the total sum
of all mental associations about a nation" people tend to have (Fan, 2008 a, p. 5), as the
"unique, multi-dimensional blend of elements that provide a nation with culturally ground-
ed differentiation and relevance" (Dinnie, 2008, p. 149) or as a perceived image and picture
of a nation. Nation branding is defined as the "process by which a nation images can be
created, monitored, evaluated and proactively managed in order to improve or enhance the
country´s reputation among a target international audience" (Fan, 2006, p. 6).
Nation branding also goes beyond the objectives of traditional tourism marketing or
destination branding and includes a wider range of objectives (Dinnie, 2008). In addition to
the attraction of tourists, the other two main objectives are the stimulation of inward
investment and the increase of exports (Dinnie, 2008; Fan, 2006; Harrison-Walker, 2011).
The talent attraction of higher education students and skilled workers can be seen as a
further objective. To increase currency stability, restore international credibility and the
confidence of investors, increase international political influence, to reverse international
ratings downgrades and to stimulate stronger international partnerships are suggested as
additional objectives by the Temporal Brand Consulting (qtd. in Dinnie, 2008). Moreover,
strengthening citizens´ identity and increasing their self-esteem are also mentioned as
nation branding objectives (Moilanen & Rainisto, 2009).
Considering the complexity of a nation as well as the wide range of stakeholders
and objectives of nation branding, it is controversial if the term "brand" is appropriate for
the management of a nation´s reputation (Dinnie, 2008; Anholt, 2010; Moilanen & Rainisto,
2009). Usually brands are associated with products and corporations, but in the opinion of
many marketing experts, the fundamental branding techniques, as explained before, are
applicable to the branding of nations (Dinnie, 2008; Moilanen & Rainisto, 2009; Olins.
2002). Fan (2010) believes that each nation for certain is an international brand because
each "has a unique name and images in the mind of people" (p. 2). From Anholt´s perspec-
15
tive (2010) "brand" and "branding" also serve as a "perfect metaphor" and "useful compar-
ison" (p. 1). He considers that in both contexts, product and company brands as well as
nation brands, images can have great impacts and consequences on the performance of the
prevailing company or nation (Anholt, 2007). According to Leslie de Chernatony (2008),
professor of brand marketing, the "concept of brand remains invariant" when applied to
nations since a nation brand as well as a product brand is just "a cluster of values (...) to
make promise about a unique and welcomed experience" (p. 16). Nonetheless, nations are
much more complex than corporations or products and therefore the brand creation and
branding process are different (Dinnie, 2008; Moilanen & Rainisto, 2009; Olins, 2002).
Moreover, because of the complexity of a nation brand and the difficulty of branding of
nations, the incorporation and combination of elements from various academic disciplines
such as politics, communications and cultural studies are necessary (Fan, 2008b; Hermann,
2010). The implications and restrictions of considering nations as "brands" will be dis-
cussed in more detail under point five of chapter three of this book: "Concept Difficulties
and Critics".
As reported by Dinnie (2008) and Anholt (2007), in order to understand the process
of nation branding it is necessary to explain the relationship between national identity and
the nation image. These concepts can be transferred from the branding theory to the context
of nation branding (Dinnie, 2008).
2.2.2.
Creation of Nation Images
2.2.2.1.National Identity and Nation Brand Identity
According to Fan (2010), national identity and a nation brand identity are related
concepts, but have to be distinguished. The national identity plays one of the key roles in
nation branding and is the basis for the development of a nation branding campaign (Anholt,
2010; Dinnie, 2008). The national identity embraces all the characteristics of a nation
which its citizens perceive to be the most important, distinctive and permanent taking into
account the past and future (Fan, 2010) and constitutes the nation´s uniqueness. According
to Dinnie (2008), the key aspects of the national identity are "an historic homeland,
common myths, historical memories and a common, mass public culture" (p. 113). Moreo-
ver, the essence of the national identity derives from companies and brands of the country,
16
its landscape as well as from its culture in the "widest sense" such as literature, language,
music, sport and architecture (Dinnie, 2008). Fan (2008 a), also describes national identity
as a "psychological bond that binds fellow nationals together" (p. 3).
A nation brand identity, on the other hand, terms the identity of the nation brand and
is built upon a "limited range of all the constituent parts of national identity" (Dinnie, 2008,
p. 46; Moilanen & Rainisto, 2009). The nation brand identity should be constructed on the
elements which are the most useful and important for the objectives of the nation branding
campaign, because national identities are too complex and some information may not be
relevant to external audiences (Dinnie, 2008; Moilanen & Rainisto, 2009). The national
identity and the nation brand identity have direct impacts on the nation image which itself
can be defined as the perceived picture of a nation by foreigners.
2.2.2.2. Nation Images
Even though a nation does not plan and implement any nation branding activities,
nations always have an image (Anholt, 2007; Fan, 2006; Papadopoulos & Helsop, 2002).
As stated by Papadopoulos and Helsop (2002), nation images are multifaceted, originate
from various different sources and can include factual as well as affective information.
Moreover, a nation image may also be mainly positive or negative, strong or weak, rich and
complex or simple (Anholt, 2007; Papadopoulos & Helsop, 2002). A nation is considered
to have a strong image if it has the same associations to many people whereas a nation with
little or widely different associations has a weak image. Strong images are not necessarily
positive since for example North Korea and Afghanistan mean the same things to a lot of
people but the associations are rather negative (Anholt, 2007).
A nation image can be created through many different ways which include first-
hand such as personal experiences through working in or travelling to a country. Further-
more, second-hand experiences such as word-of-mouth, the use or ownership of a product
made in that country, the behavior of people associated with the country, mentions of the
country in films and other media, acts of war and charity, sporting and cultural events, the
history and music determine the images people hold of different nations (Anholt, 2010;
Dinnie, 2008; Fan, 2006).
17
Kotler and Gertner (2002) claim that most nation images are built upon stereotypes
which are usually of a negative nature. Widler (2007) defines stereotypes as "outdated
simplifications, as generalizations based on impressions instead of facts" (p. 5). In many
cases the stereotypes are "essentially wrong and unfair" (Widler, 2007, p. 5) and additional-
ly difficult to change (Kotler & Gertner, 2002).
According to Anholt´s theory (Anholt, 2007), the nation image is created through
the cumulative effect of communication via "six natural channels" (Anholt, 2007, p. 25),
the so called hexagon. It is the most cited model of how a nation image is created (Dinnie,
2008).
Figure 2 - Hexagon for creation of a nation image
Source: Own elaboration based on Anholt, 2007, p. 26
1.) Tourism: this dimension includes a country´s tourism promotion and people´s first-hand
experience from visiting the country as tourists or business travelers. Tourism is one of
the most important contributors in nation branding because usually the biggest budgets
are allocated in the tourist boards.
2.) Brands: the country´s export brands have the role of "powerful ambassadors" (Anholt,
2007, p. 25) of the country´s image abroad. This is only the case if the country of origin
is explicit, because only this way it can affect the people´s feelings about the country.
Strong ambassadors are brands like Mercedes from Germany or Sony from Japan be-
cause their provenance is strongly branded.
18
3.) Policy: the country´s government foreign and domestic policy decisions which affect
other countries or are reported in international media also influence the nation image.
4.) Investment: this dimension is especially important for business audiences. They observe
how the country tries to attract inward investment, foreign work force and students and
the expansion of foreign companies within the country.
5.) Culture: cultural exchanges, activities and exports such as national sports teams, famous
musicians, poets, authors or film-makers play a role in building the nation image. So
called "cultural products" (Anholt, 2007, p. 25), such as "Crocodile Dundee", can also
influence the image of a nation.
6.) People: this dimension does not only include famous people as for example media and
sports stars or politicians from the country. The behavior of the general population is
also very important (Anholt, 2007).
According to Dinnie (2008), the nation image usually does not reflect the reality,
that is to say what the nation really is. This "identity-image gap" (Dinnie, 2008, p. 112) can
result as very negative if the nation is not appreciated by the external audience due to
ignorance and negative stereotypes. Consequently, one of the main tasks of nation branding
is to reduce and if possible close this gap. The nation image can also be influenced by the
way a nation positions its brand.
2.2.3.
Nation Brand Positioning
Such as for companies, the brand positioning for countries is one of the key tasks of
branding in order to differentiate the nation´s offering and value proposition from that of
competing nation brands. Effective nation brand positioning needs to have both, distinctive
and relevant points of difference. Moreover, these points of difference need to be believable
and trustworthy and not being "fabricated" of a "false promise" (Dinnie, 2008, p. 18).
Gilmore (2002) states that four essential factors should be considered in order to develop a
competitive nation brand positioning: general macro-trends, the nation´s target audiences,
nation brand competitors and the nation´s core competencies.
Nevertheless, positioning nation brands as highly distinctive can result in a big chal-
lenge or drawback. By making a strong and also compelling appeal to particular consumer
19
segments, the brand will have to "sacrifice" the alienation from other consumer segments
(Bauer, Bloching, Howaldt & Mitchell, 2006; Harrison-Walker, 2011). Dinnie (2008)
claims it as "much more daunting" (p. 52) for nation brands than for product brands to
consider the alienation of potential consumer segments or audiences. In contrast to product
brands, nation brands have significant influence on all areas of the nation´s economy. It is
very difficult how to position the nation in a way it will not be perceived for example as
solely a tourist destination but also an attractive location for investment, a source of high-
quality products (Dinnie, 2008). As a result nations often try "to be all things to all people"
(Harrison-Walker, 2011, p. 7) and select "bland, inoffensive positioning platforms" (Dinnie,
2008, p. 52). With these undifferentiated positioning none of the nation´s stakeholders will
be offended but due to the meaningless no consumer segment is inspired either. Anholt
(2010) states that many nation brands do not offer anything particular to the consumers and
that in many cases the "sum of the message (...) is really nothing more than ´we think our
country is wonderful´" (p. 87). Furthermore, Anholt (2010) considers that many nations do
not establish any relevant or believable points of difference, thus customer-focused value
propositions for their brands and therefore their branding efforts do not show any effects.
When developing and implementing the nation branding strategy, it is also important to
ensure that all strategy elements are consistent and supportive to the nation´s brand posi-
tioning.
Quelch and Jocz (2005) mention Costa Rica as an example of a successful clear and
positive nation brand positioning platform. By committing to democracy and rejecting a
standing army, the country positioned itself successfully as a peaceful country and an
ecotourism destination. Another example given by Quelch and Jocz (2005) is Singapore
which positions itself as the best point of entry to Asia for Western companies. Singapore
reached this positioning by having an outstanding rule of law, good working institutions
and English-speaking workforce which makes doing business safe and easy (Quelch & Jocz
2005). The overall success of a nation brand´s positioning determines its brand equity to a
great extent (Dinnie, 2008; orÿeviü, 2008; Harrison-Walker, 2011).
20
2.2.4
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21
2.2.4.1. Internal Assets
Innate assets are defined as unique and "enduring elements of national identity"
(Dinnie, 2008, p. 68) which play an important role in the differentiation of a nation´s brand.
The innate assets include the nation´s iconography, landscape and culture. These three
components are authentic manifestations which are not artificialized by marketers and
"represent a truly unique and authentic face of national identity" (Dinnie, 2008, p. 69). The
iconography embraces symbols, visual images and further representational elements which
are associated with a nation such as national flags. Also individuals such as Nelson Man-
dela for South Africa, places as for example the Acropolis for Greece and products such as
whiskey for Scotland can be icons because they are symbolically representative for the
nations (Dinnie, 2008). As stated by Álvarez and Siles (2008), a great landscape can also
bring uniqueness and value to countries. This applies especially for countries which are
economically poor but have a great landscape such as Bolivia. Culture is to be seen as one
of the key elements of the NBEQ because it "offers an infinitely rich source for nations
attempting to fashion their nation-brand" according to Dinnie (2008, p. 69). At the same
time the nation should promote its traditional culture while presenting itself as a modern
economy (Dinnie, 2008).
On the other hand, nurtured assets derive from the contemporary efforts of people in
the nation in order to ensure a good environment for the development of the nation brand
equity. These assets include internal buy-in, support for the arts and loyalty levels. To
secure the "internal buy-in to the nation-brand" (Dinnie, 2008, p. 70), the people´s com-
mitment to the nation brand, is an often overlooked issue in nation brand equity. This buy-
in must come from domestic stakeholders, the public as well as the private sector. Other-
wise, if the domestic stakeholders do not "live the brand" (Dinnie, 2008, p. 70), it would
lead to a dissonance when for example tourists and foreign investors recognize that there
exists a gap between reality and the projected image. The second key nurtured asset,
support for the arts, can either come from the state or sponsorship by private companies and
is aimed to promote the nation´s cultural life. Loyalty, as another important source for the
nation´s brand equity, refers to the loyalty level among the nation´s "customers" such as the
"country´s own citizens, trading partners, foreign consumers of the nation´s goods and
22
services, international organizations, political allies, tourists and inward investors" (Dinnie,
2008, p. 70 f.).
2.2.4.2. External Assets
The vicarious assets refer to those that are experienced second-hand. These assets
embrace nation image perceptions as well as external portrayal in popular culture. Nation
image perceptions can be a powerful asset when they are strongly positive or can also
constitute a severe liability when they are rather negative. In case the nation image percep-
tions do not reflect reality, it is important to implement a nation branding strategy so that
negative or out-of-date perceptions do not affect the overall nation brand equity negatively
(Anholt, 2010). Moreover, a nation image that is very positive in only one dimension can
also be problematic because this "limits the nation´s potential scope of activity" (Dinnie,
2008, p. 71). Nonetheless, a nation exerts relatively little control over the nation image
perceptions and the external portrayal of a nation in popular culture. In popular culture such
as films and books positive and negative stereotypes may be repeated endlessly and the
only thing a nation can do is try to manage the effects and consequences of such phenome-
na (Anholt, 2010; Dinnie, 2008).
Disseminated assets are defined as "tangible projections of the nation brand existing
beyond the nation´s homeland and throughout the wider world" (Dinnie, 2008, p. 71) and
include brand ambassadors, the diaspora as well as branded exports. Brand ambassadors are
persons who represent the brand in one or two functions: by either sparking people´s
interest in the brand or maintaining people´s loyalty once experienced the brand (Healey,
2008). The nation brand ambassadors should reflect the nation´s personality and positive
attributes the nation wants to project. Moreover, they should have a good knowledge of the
nation and be able to effectively communicate the brand values to the targeted audiences.
Nations tend to employ ambassadors in a more discrete manner, so that "few people outside
the diplomatic circles will know much, if anything, about them" Dinnie, 2008, p. 228).
Internationally known individuals such as the Peruvian composer and music producer Jean
Pierre Magnet Vargas Prada for Peru
1
can be assigned as nation brand ambassadors (Agro
Enfoque, 2011; Comisión de Promoción del Perú para la Exportación y el Turismo, 2011).
1
Jean Pierre Magnet Vargas Prada was officially assigned as a Peru´s nation brand ambassador in May 2011
(Agro Enfoque, 2011).
23
However, many individuals such as the famous soccer player Ronaldo Luís Nazário de
Lima for Brazil are nation brand ambassadors without being officially appointed to this role.
Even individual citizens in foreign countries represent their home nation by the way they
behave (Dinnie, 2008). The second type of disseminated assets is the diaspora a nation
possesses. A diaspora is defined as the dispersion or spread of people from their original
homeland (Leautier, 2006) and could also be seen as a "pre-existing network of potential
nation-brand ambassadors awaiting activation" (Dinnie, 2008, p. 72). According to
Leautier (2006), an international policy expertise, managerial and marketing knowledge are
important resources of diaspora networks since people within "can be crucial bridges
between state-of-the-art in policy, technological, and managerial expertise and local
conditions in their homeland" (p. 3). A financial benefit of diaspora networks is provided
through individual remittances and the provision of foreign direct investment. Branded
exports are also a valuable disseminated asset since branded exports may help establishing
and improving the nation´s reputation abroad. Therefore, it is important that the "nation´s
export promotion agency is adequately resourced" (Dinnie, 2008, p. 73).
All these assets mentioned contribute to the nation brand equity. Even though brand
equity and brand images in general and in particular in the case of nations are difficult to
measure (Denman, 2012; Dinnie, 2008), there exist some nation brand indices, which
measure the image and reputation of a selected number of nations. The best-known and
most cited or also described as the "most high profile existing measures which assess a
country brand" (Fetscherin, 2010, p. 3) are the Anholt-GfK Roper Nation Brands Index
SM
and the FutureBrand Country Brand Index (Fetscherin, 2010).
2.2.5.
Measurement of Nation Brands and Images
2.2.5.1. Main Indices and Rankings
2.2.5.1.1.
Anholt-GfK Roper Nation Brands Index
SM
In 2005 Anholt founded the Nation Brands Index (NBI), one of the "first and best-
known indexes" (Moilanen & Rainisto, 2009, p. 161) in order to measure the image and
reputation of several nations (Anholt, n.d.; Dinnie, 2008). Since its foundation in 2005, the
index was modified and extended its scope several times. From 2005 until 2008, the index
"Anholt-GMI Nation Brand Index" was carried out in a partnership with the Global Market
24
Insite Inc. (GMI) (Anholt, n.d.). In 2008 S. Anholt started a partnership with GfK Roper
Public Affairs & Corporate Communications, a division of GfK Custom Research North
America
2
(GfK Custom Research North America, n.d.). The index was renamed into
"Anholt-GfK Roper Nation Brands Index
SM
" and increased the number of countries which
are measured from 35 to now 50 countries. Each year approximately 20,000 persons with
the minimum age of 18 are interviewed online in 20 "core panel countries"
3
, including both
developed and developing countries. GfK Custom Research North America defines these
"core panel countries" as major countries that "play important and diverse roles in interna-
tional relations, trade, and the flow of business, cultural and tourism activities" (GfK
Custom Research North America, n.d., para. 2).
The Anholt-GfK Roper Nation Brands Index
SM
measures the "power and quality of
each country´s brand image" (GfK Custom Research North America, n.d., para. 2) through
the combination of six dimensions: exports, governance, culture and heritage, people,
tourism and investment and immigration.
2
GfK Custom Research is part of the GfK Group, one of the largest market research companies. The division
GfK Roper Public Affairs & Corporate Communications is specialized in customized public affairs and public
opinion polling, media and corporate communications research as well as the measurement of corporate
reputation in the USA and the rest of the world (GfK Custom Research North America, 2010).
3
The 20 countries are:
-
Western Europe/North America: U.S., Canada, U.K., Germany, France, Italy, Sweden
-
Central and Eastern Europe: Russia, Poland, Turkey
-
Asia-Pacific: Japan, China, India, South Korea, Australia
-
Latin America: Argentina, Brazil, Mexico
-
Middle East/Africa: Egypt, South Africa
(Anholt, 2009).
25
Figure 4 - Nation Brand Hexagon
Source: GfK Custom Research North America, n.d., para. 6
Anholt and GfK Roper Public Affairs & Corporate Communications define the di-
mensions as followed (GfK Custom Research North America, n.d.):
1.) Exports: determines the public's image of products and services from each country and
the extent to which consumers proactively seek or avoid products from each country-of-
origin.
2.) Governance: measures public opinion regarding the level of national government
competency and fairness and describes the individuals' beliefs about each country's gov-
ernment, as well as its perceived commitment to global issues such as democracy, justice,
poverty and the environment.
3.) Culture and heritage: reveals global perceptions of each nation's heritage and apprecia-
tion for its contemporary culture, including film, music, art, sport and literature.
4.) People: measures the population's reputation for competence, education, openness and
friendliness and other qualities, as well as perceived levels of potential hostility and
discrimination.
26
5.) Tourism: captures the level of interest in visiting a country and the draw of natural and
man-made tourist attractions.
6.) Investment and immigration: "determines the power to attract people to live, work or
study in each country and reveals how people perceive a country's economic and social
situation" (GfK Custom Research North America, n.d., para. 2).
These six dimensions are adapted to the survey´s context from Anholt´s theory of
the Hexagon for the creation of a national image (Anholt, 2007).
The overall NBI score is calculated as an unweighted average from the six indices or
dimensions explained above. For the evaluation of the dimensions, three to five questions
are designed for each. Answer ranges are between one and seven with seven being the
highest appeal (Anholt, 2009).
In addition to the overall scores and scores for the six sub-indices, the respondents
of the survey of 2012 also indicated, what they most admire about a country. The top five
of the attributes mentioned are: "democratic, open, and treats its citizens fairly", "good
quality of life and work/life balance", "respects nature and keeps a clean environment",
"safe and orderly society with well-behaved people" as well as "people are warm and
friendly" (GfK Custom Research North America, 2012, para. 3). Especially the environ-
mental awareness can be seen as a relatively new concern on a global level and is increas-
ing annually (Dinnie, 2008).
GfK Custom Research North America advertises its index as a "powerful tool" and
"cost-effective and comprehensive system for measuring and managing national reputation
around the world" (GfK Custom Research North America, n.d., para. 2). The NBI is widely
used by countries in order to assess and monitor their competitive position and to identify
strengths and weaknesses. Based upon this assessment they can take strategic actions in the
areas where it is seen necessary (Dinnie, 2008; Fetscherin, 2010).
Even though these benefits of the NBI are obvious, the index´s scope is criticized as
too limited since it only includes 50 countries which perceptions are measured in only 20
different countries (Hermann, 2010; Fetscherin, 2010). Besides this point of criticism, the
index is considered as too subjective due to the fact that the results rely only on "subjective
perception survey data" (Fetscherin, 2010, p. 3 (Council on Foreign Relations, 2007).
27
Moreover, since the scope, content, structure and the number of countries included vary
annually, year-to-year comparisons are difficult to make (Hermann, 2010).
In addition to the NBI, the "Country Brand Index" (CBI) developed by the Future-
Brand consultancy
4
can be seen as the second most important and most relevant index in
order to assess a nation brand (Fetscherin, 2010).
2.2.5.1.2.
FutureBrand Country Brand Index
Since 2005 FutureBrand assesses more than 110 nation brands on an annual basis
5
(FutureBrand Consultancy, 2011 a). For this, FutureBrand developed its own methodology,
which in contrast to the NBI is based on many different sources. The quantitative part of
this methodological procedure includes an information collection from 3,600 "opinion-
formers and frequent international business or leisure travelers" (FutureBrand Consultancy,
2012, p. 5) from 18 countries. Applying the "FutureBrand´s proprietary Hierarchical
Decision Model" (HDM), FutureBrand determines the respondents´ perception of a nation
brand "from a baseline of awareness all the way up to brand advocacy" (FutureBrand
Consultancy, 2012, p. 5). Moreover, according to FutureBrand, their HDM also enables the
measurement of the relative performance and year-to-year progress of the countries.
The following seven areas are taken into consideration in the CBI:
1.) Awareness: measures if the key audience knows of the country´s existence and how top-
of-mind it is.
2.) Familiarity: measures how well the knowledge of the country and its offerings is.
3.) Associations: refers to the associations people have with the country.
4.) Preference: measures the audience´s esteem for the country and if it resonates.
5.) Consideration: assesses if the country is taken into consideration for a visit, how likely
people would think of an investment in that country and how likely they would acquire
or consume products originating from there.
4
FutureBrand is part of the Interpublic Group of Companies Inc., offering services from "consumer branding
and corporate identity, to brand identity, brand management and beyond". It has 25 offices in cities world-
wide.
5
For the CBI 2012 until 2013, FutureBrand measured 118 countries.
28
6.) Decision/visitation: measures to what extent people follow through and visit the country
and to which extent the establishment of a commercial relationship takes place.
7.) Advocacy: states if visitors of the country recommend it to their friends, family and
colleagues (FutureBrand Consultancy, 2012).
Apart from the mentioned quantitative sources and in contradistinction to the NBI,
FutureBrand also conducts "deep dive" interviews with global experts in "policy and
governance, international relations, economics and trade, international law, national
security, energy and climate change, urban and regional planning, immigration and media"
(FutureBrand Consultancy, 2012, p. 5). These experts are for example professors of
international universities, ambassadors or directors of international institutions such as the
Center for Strategic and International Studies (CSIS) in Washington, United States of
America (USA) (FutureBrand Consultancy, 2012; FutureBrand Consultancy, 2011 a). As
reported by FutureBrand (2012), these interviews allow the identification of the "broader
themes and future drivers" (p. 5) which could have impact on the future country brands
(FutureBrand Consultancy, 2012).
Based on the associations of the interviewees, FutureBrand publishes sub-rankings
of the nation images in five different dimensions: "Value System", "Quality of Life",
"Good For Business", "Heritage and Culture" and tourism. The country´s value system is
measured by the factors political freedom, environmental friendliness, a stable legal
environment, the level of tolerance and the freedom of speech. "Quality of Life" is com-
posed by the quality of the country´s education system, the healthcare system, the standard
of living, the safety level, job opportunities and the attractiveness of living in the respective
country. "Good for Business" is measured by the general investment climate in the country,
the advance of technology, characteristics of the legal environment and how skilled the
country´s workforce is. The nation image in "Heritage and Culture" is composed by the
national history, the offer of art and culture, the authenticity and the perception of the
country´s natural beauty. Tourism as the fifth dimension is measured by the value for
money relation, the offer of tourism attractions, resort and lodging options and the coun-
try´s food offer (FutureBrand Consultancy, 2011 a; FutureBrand Consultancy, 2012).
29
In addition to the annual ranking of the overall nation brands, FutureBrand also
provides an annual "Region Report"
6
which gives short information on the performance of
the brands from different regions in the world and some countries within that region which
are developing particularly well. Furthermore, FutureBrand´s annual reports include a part
called "Tomorrow´s Leading Country Brands: The Future 15", a ranking of the 15 countries
which have the highest potential to improve their brands exceptionally (FutureBrand
Consultancy, 2012).
Due to the inclusion of interviews with global experts and in general using a
different methodology, the results of the CBI differ from the ones obtained in the NBI.
2.2.5.1.3.
Comparison of the NBI and CBI
The following table shows the NBI score of the 2012 survey and the CBI score of
the survey from 2013 for the ten best ranked countries. The rankings for NBI of 2011 and
the CBI of 2011 are each shown in parentheses after the country name.
Table 1 - Anholt-GfK Roper Nation Brands IndexSM and FutureBrand Country Brand
Index overall brand ranking for the "Top 10" nations
Source: Own elaboration based on GfK Custom Research North America, 2012, p. 1; FutureBrand
Consultancy, 2012, p. 4
6
The regions included are Middle East and North Africa, Europe, Latin America, Africa and Asia Pacific
(FutureBrand Consultancy, 2012).
Rank
NBI 2012
CBI 2012
1 USA
(1) Switzerland
(2)
2
Germany (2)
Canada (1)
3
United Kingdom (3)
Japan (4)
4
France (4)
Sweden (7)
5
Canada (6)
New Zealand (3)
6
Japan (5)
Australia (5)
7
Italy (7)
Germany (11)
8 Switzerland
(9)
USA
(6)
9
Australia (8)
Finland (8)
10 Sweden
(10) Norway
(12)