The Importance of Image in National Competitiveness

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The Importance of Image inNational
Competitiveness
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The ICI Partnership
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TheCountry Image Specialists

• Worlds 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 countrycommercially viable.
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The best examples

• Germany Engineering
• Japan Quality
• USA Technology
• Italy Design
• France Fashion
• Switzerland Precision
• Thailand Tourism

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Country product image iscultural/personality
in origin,but mostly brand driven.
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Brand personalities

• Mercedes Germany
• Sony Japan
• Chanel France
• Rolex Switzerland
• Microsoft USA
• Giant USA or Taiwan?

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Which came first,Made in Japanor 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

• 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 1Realize the importance ofimage 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. ProductBrand EmotionalProduct Fun
ctional

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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?
Mercedes-Benz is a registered trademark of
DaimlerChrysler
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Rolex Who cares about time?
Rolex is a registered trademark of Montres Rolex
S.A.
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The Marlboro ManHow 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 Need Appeal Basic
Skill Watch Information Accuracy Craftmanship Ne
w Market Swatch Fashion Appearance Design
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To have your own brand should be the ultimate
goal of all manufacturers, but its 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 Worlds Top Brands

• Ford
• Shell
• IBM
• Pepsi
• Honda

• Coke
• Marlboro
• Sony
• McDonalds
• Disney

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ConclusionBrand image creates long-term,
sustainable, competitive advantages.
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Part IICountry 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 problemcaused by image

• The 25 discount
• International jokes
• Consumer prejudice

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A Public Private Sector Initiative

• 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
Its Very Well Made in Taiwan
Attack weakness- Quality
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Create a Signature
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Communications Strategies

• 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
5 million PR 1.5 million Events 2.5
million Program 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

• Upgrade promotion materials
• How to deal with foreign media
• Product launches/corporate identity
• Advertising media planning

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Taipei News Bureau

• 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

• 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

• 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 IIISummary ofEight Essential Steps

• 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 IVA Case for Colombia?
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Colombia

• Location
• Location
• Location!

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Challenges

• Current image
• Few international brands
• Commodities-based economy
• Travel advisories

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Advantages

• 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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Colombias Hidden Treasures

• Coffee 3
• Flowers 2
• Lingerie 3
• Bananas 3
• Emeralds 1
• Orchids 1

• Carnations 1
• Roses 3
• Adidas clothes 1
• Biodiversity 1
• Fresh water 4
• Keeping secrets! 1

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The New Colombia

• A makeover for Juan Valdez
• Brand name apparel
• Flowers
• Biodiversity
• Shakira!!!!!!!!!!!!

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Some Recommendations

• Get a head start, dont 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!