Anholt-Nation Brand of 21st Century

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    f

    the

    twenty-first entury

    Anholt

    WorldWriters, 62-170 ardourtreet,ondonWlV 3AT.

    +44

    171

    287 4877; Fax: +44 171 287 6159; E-mail: [email protected]

    in

    revised orm):21st May, 1998

    Anholt read Modern Languages

    at Ox-

    and worked as copywriter and international

    at McCann-Erickson and various

    agencies around the world before founding

    Writers in 1989. World Writers is

    the

    global creative audit, brand naming,

    brand thinktank, foreign copywriting

    lts

    many

    include Microsoft, Nike,

    Coca-Cola,

    Express, Sony, lBM, Adidas, Visa,

    Nestl6, Hdagen-

    Hewlett-Packard, Xerox,

    P&G,

    Unilever,

    cedes-

    Benz and Benetton.

    he twentieth

    entuq ,

    nrostof the re-

    successJul

    nternational brands

    haue

    come

    countries

    hat are successJulrands

    n their

    ght,

    and substantial ransferof imageryand

    equity

    can often be

    seen o oecur etween

    two.

    This

    paper

    proposes

    hat a

    number

    of

    'amerg-

    markets,

    nd especially razil,

    haue

    hepo-

    o

    produce

    lobal

    brands,

    for

    the

    following

    here

    s alreadyhigh recognition f

    the

    brand-print

    f the country

    tselJ uhich will

    eonsequently

    llpport

    the

    'rightness'

    and ac-

    ceptability

    J

    elevant ommenialbrands

    front

    that

    country;

    because

    he

    economic

    nuironment

    s increas-

    ingly

    Jauouring

    an export rnentality

    because

    ertain

    rotrysoJ consumersn other

    enrerging

    markets

    ntight

    eventually

    fauour

    brands

    frim

    emerging

    or

    'recently-enrerged'

    marketssuch as

    Brazil, in

    preferenceo

    'frst-

    world' nations

    ike

    USA.

    The paper argues

    hat

    exporting brands,as dis-

    tinctfrom commodities,

    s

    part of a

    package

    of de-

    velopment

    which, together,

    ean signifcantly

    acceleratehe process

    J

    emergence

    from

    the third

    world. It alsoproposeshat countries ike Brazil

    hauea real ehanceo

    oin

    the

    frst

    world 'club' of

    global

    brand

    producersn the twenty-frst

    century.

    THE

    MPORTANCE

    F

    PROVENANCE

    AS A BRANDATTRIBUTE

    Few things

    in

    marketing are

    harder to define

    than the personality of a brand, and seldom

    is this task

    more complex than when the

    brand is sold

    in many different countries. A

    brand

    is

    always

    a complex rnixture of attrib-

    utes:

    packaging

    and

    visual identity form its

    face, and advertising creates ts voice:

    but its

    actual personality

    really

    only

    exists in the

    mind of the

    consumer.

    One attr ibute

    which is often of funda-

    mental importance

    in the

    complex

    makeup

    of international

    brands is the inf luence

    rvhich the brandt provenance or its per-

    ceived provenance

    -

    has on the consumer's

    perception of the brand.

    A

    quick poll

    of

    successful nternational

    consunrer brands reveals

    hat the

    vast

    major-

    ity of them come

    frorn countries

    rvhich

    have a strong

    and consistent international

    'brand

    image'

    of their orvn. In

    lnany

    cases,

    the inragery used by

    the cornmercial brands

    is closely inked

    rvith the attributes of

    therr

    provenance.

    ThcJoumrl

    ofBrand

    IUanxgcmcnt

    Vol

    5 No

    6

    1998,

    pp 395-406

    O

    Hrnn Stervan Publicarions,

    1350-231X

  • 7/23/2019 Anholt-Nation Brand of 21st Century

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    At i ts s implest evel, this associat ion e-

    tween commercial and

    national

    brand

    is

    rnerely a caseof posit iue

    ssocialions

    it] t

    na-

    t ionalproduce: country

    is famous

    for

    pro-

    ducing certain items, and brands n related

    product categoriesprofit by association. taly

    is famous for

    producing pastaand pizza,

    so

    Italian pasta and

    pizza

    brands

    enjoy more

    irnnrediate and

    posit ive associations han

    non- ltal ian brands; the Fre nch are

    renowned for their skill in

    perfumery, so it is

    natural

    that

    French perfume brands

    play

    on

    their French

    heritage; the best whisky tradi-

    t ionally

    conles

    from Scotland, so stressing

    the

    Scott ishness

    f whisky brands is almost

    mandatory.

    PLAYING

    WITHPROVENANCE

    At a more

    sophisticated

    evel, manufacturers

    of

    products

    that are not tradit ional national

    products

    can

    make highly positive

    and valu-

    able

    associations ith

    perceived qualit ies

    n

    their national brand, in a

    precisely

    analogous

    way

    to the

    practice

    of brand extensions,

    where the owner of an establishedbrand can

    use that equity to

    leverage

    acceptance of a

    new product

    or sub-brand.

    For

    example,

    Japan

    is associated n the minds of Euro-

    peans

    with high-stressurban existence,but

    also

    with ancient

    wisdom

    and

    mystic healing

    powers:

    so marketing K3, a soft drink asso-

    ciated with stress elief, to ABC1 urbanites

    in Britain, is

    a highly

    intell igent

    brand

    ex-

    tension ,

    drawing

    on and extending existing

    perceptions

    of brand

    Japan.

    These associationsof

    qualiry

    or appropri-

    atenessare powerful enough attr ibutes to

    make

    it worthwhile

    for

    a

    manufacturer to

    claim a

    fictitious provenance

    if it appears o

    lend more credibil ity than their real prove-

    nance.

    It is, in effect, a shortcut to

    well-es-

    tablished

    brand

    values for

    emerging brands:

    by attaching

    the emerging brand to an area

    of establishedcultural

    reference within the

    consumert

    experience,

    t can

    quickly

    obtain

    a halo of recognition, maturity and respect.

    These

    cuckoo

    brands , as he au thor

    of

    this

    paper

    calls them,

    which

    borrow

    brand

    equiry from more established ultural

    icons,

    are surprisingly common and

    have been

    around for many years, asWally Olins ob-

    served n a recent seminar. l

    The Italian confectioner, Perfett i, for ex-

    ample, owns

    a

    successful chewing-gum

    brand cal led

    Brooklyn ,

    a

    product which

    bears an image of the Brooklyn

    Bridge on

    its packaging, and is manufactured in Tirrin.

    This bogus

    provenance

    no doubt made

    per-

    fect

    sense

    when

    the

    brand was aunched

    -

    chewing-gum was an US import, and

    its

    novelty and glamour derived principally

    from its provenance.

    Even today, many

    Ital-

    ians

    stil l

    refer to chewing-gurr

    ^s

    gomma

    americana r even in

    sorne dialects as

    gin-

    gomma,

    a corruption of the English word. In

    such a cultural climate. a domestic brand

    would

    clearly

    have

    taken many more

    years

    to attain any kind

    of

    recognit ion

    or brand

    share.

    Likewise,

    Dixon s, the

    UK

    white

    goods

    retailer, launched

    its own

    consumer

    elec-

    tronics brand in 1982 under the mock-

    Japanese

    name

    Saisho, because it

    r ightly

    believed that

    a Brit ish electronics brand

    would

    carry

    little

    credibiliry. By a similar set

    of associations,

    t has been

    suggested

    hat the

    US laser/fax supplies

    and

    photofinishing

    company, Nashua,

    has

    prospered

    abroad

    partly

    as a

    result

    of the mistaken belief that it

    is a

    Japanese

    company

    (Nashua

    is, in fact,

    the name of the New Hampshire town in

    which

    the company is located,

    and the

    word

    is, I guess,Algonquin,

    notJapanese).

    The

    provenance

    ofcertain brands can

    also

    switch with a change

    of

    brand

    owner:

    char-

    acters ike Winnie-the-Pooh, Mary Poppins

    and

    Alice in

    Wonderland, once perceived as

    being quintessentiallyBrit ish,

    are

    now per-

    ceived by children

    around the

    world as

    being

    quintessentially

    American; l ikewise,

    through the power

    of Walt Disney s brand-

    ing,

    Quasimodo,

    Anastasia, Snow White

    and Hercules are no longer French, Russian,

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    or Greek, but all

    come

    from

    the

    global-American

    culture stable as

    Mouse and Donald Duck.

    This

    is the

    converseof the cuckoo

    effect: here, the cuckoo steals eggs

    other birds

    nests

    and hacches hem in

    Own.

    Indeed,

    i f

    a country begins to produce

    market

    enough

    powerful

    brands in a

    category that was previously

    associ-

    with

    another

    nation,

    the

    perceived

    of the enti re

    category is liable to

    for

    example, outside Europe, pizza

    is

    generally

    associated with

    the USA,

    because

    so nlany of the global pizza

    are known to

    be American, even

    pizza was

    a national

    product

    of ltaly.

    this

    process

    has not

    occurred

    pasta, perhaps

    because dry packaged

    have been in commerce,

    and hence

    longer.

    Conse-

    Italian brands

    had time to become

    ong

    before

    the product

    became

    as a

    world

    food . Branded pizzahas

    only existed for as ong aspeople have

    freezers, and most of the Iralian pizza

    on the market are

    cuckoo

    brands.

    phoney Italian provenance.

    F PROVENANCE

    are, in reality,

    two kinds of brands at

    here:

    private domain

    brands and

    pub-

    domain

    brands.

    Private

    domain brands

    owned

    by conrpanies; public domain

    are items

    of popular or traditional

    which, at least n the strict commer-

    sense,

    are nobody s prope rty.

    They in-

    countr ies,

    cit ies and regions, races,

    emographic

    groups,

    even individual peo-

    It

    is

    a

    measure

    of

    the

    power

    and value

    f

    these

    public

    brands hat iheir

    owners

    or

    uardians

    sometimes attempt

    to

    exert

    the

    kind

    of restrictions

    on their use as

    he

    wners

    of

    commercial

    brands: the Italian

    re-

    ton

    of

    Tuscany,

    or example, after decades

    f

    unwittingly

    lending its visual identiry

    (cy-

    press

    rees, vinding roads, red-ochre

    villas)

    to add glamour by association

    o autolnobile

    rnanuFacturers,

    s now

    attempting to pr otect

    itself by copyright law

    againstunauthorised

    use.The trusteesof Pr incessDiana sestate

    are attempting

    a similar exercise,

    n

    order to

    prevent

    the unwanted associationof brand

    Diana

    with

    a whole host of newspapers,gift

    crockery and charities.

    Since

    association

    with a powerful

    brand eff ectively borrows

    equiry from that

    brand and thus enables he

    marketer to increase

    margin

    on

    the

    sale,

    t is

    indeed a kind

    of theft.

    Certain

    products

    tend to use

    provenance

    within their brand character

    rnore

    overt lx

    than others. Fashion

    labels and

    cars, for ex-

    ample, are very often provenance-li nked;

    perhaps

    because the

    concept of nat ional

    dress

    has

    all but disappeared, he provenance

    of

    one s clothes

    assurnes a significanc e

    which,

    at times, threatens to eclipse

    th e

    power

    of

    the label itself.

    It is alrnost

    as

    m-

    portant for a

    suit or a pair of shoes o corne

    from Italy as t is

    for them to be made by

    Arrnani or Ferragamo.

    Style

    is expected

    from Italian clothes, chic frorn French

    clothes, bold anti-fashion statements rom

    British clothes, street credibiliry from

    Amer-

    ican

    clothes, and the expectancy of weather-

    proofness from

    Gernran or Scandinavian

    clothes

    s so powerful

    that the

    Manchester-

    basedBerghalrs colnpany saw fit to adopt an

    ersatzGennan name for their brand.

    Indeed, the

    link between certain brands

    and their country of

    or igin

    can become

    so

    powerful, through consistentand high-pro-

    file marketing, that it is difficult to decide

    rvhether the

    perception

    of a

    part icular qual-

    ity

    derives rnore

    from the brand or from

    its

    provenance: n

    other

    rvords, brands

    can

    cre-

    ate or enhance the perception

    of

    a

    country

    as much as the reverse. Arguably, the effect

    of technology-led international

    advert ising

    carnpaignson the part of Mercedes,

    BM W

    Audi

    and Volkswagen

    over

    the decades s

    now a significant part of the

    reason

    rvhy

    people

    associateGerrnany

    with

    technologi-

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    TneLe

    1 Txe TNFLUENcE

    F

    rrALrAN NTHEcAR rNDUsrRy

    Manufacturer

    Datsun

    Nissan

    Nissan

    Mazda

    Mitsubishi

    Daihatsu

    Suzuki

    Suzuki

    Hyundai

    Daewoo

    Ford

    Chrysler

    Volkswagen

    Volkswagen

    Volkswagen

    Volkswagen

    Volkswagen

    Mercedes

    Porsche

    Porsche

    Opel

    Aston Martin

    Renault

    Country

    of origin

    Japan

    Japan

    Japan

    Japan

    Japan

    Japan

    Japan

    Japan

    Korea

    Korea

    USA

    US A

    Germany

    German

    Gerrnany

    Germany

    Germany

    Gennany

    Germany

    Germany

    Germany

    UK

    France

    Name

    Stanza

    Serena

    Figaro

    Piazza

    Carisma

    Cuore

    Alto

    Baleno

    Sonata

    Leganza

    Mondeo

    Pronto

    Palio

    Vento

    Lupo

    Corrado

    Scirocco

    Vito

    Targa

    Carrera

    Corsa

    Volante

    Laguna

    Italian rneaning

    Room (in a house)

    Serene

    Opera

    title

    Square

    in

    a torvn)

    Charisma

    Heart

    High

    Lightning

    Ringing

    (Eleganza)

    legance

    (Mondo) World

    Ready (or Spanish: oon)

    Contest, Siennese

    estival

    Wind

    Wolf

    Conrad

    (man s

    name)

    Sirocco

    (wind)

    Man s

    name

    Plate

    (name

    of motor race)

    Name

    of

    race-track

    Race

    Steering

    wheel

    Lagoon

    cal excellence: the belief that

    Italians are

    stylish and romantic

    is

    perpetuated in

    the

    way that Italian

    cars

    and

    other

    products

    are

    marketed

    around the

    world

    (and

    not always

    by Italian companies): in effect,

    brand own-

    ers are helping to

    perpetuate

    or create global

    cultural myths in their own right.

    Consequently,

    consumers

    around the

    world continue

    to

    expect engineering

    ex-

    cellence from

    German

    cars, safety

    and

    ecology from

    Swedish

    cars,

    chic design

    from French

    cars, wood and leather from

    British cars, economy

    and efficiency from

    Japanese

    cars: but the almost universal

    habit

    of coining I tal ian

    and Ital ianatenames

    or

    cars,

    irrespective

    of their real provenance,

    indicates

    that a measure

    of sporty style

    or

    panache

    is considered an

    indispensable

    n-

    gredient

    in the

    brand

    mix

    of any car ; the

    habit

    appeared o take root in this country

    in

    the 1960s and 19 70s

    with the Austin

    Maestro

    (master),

    Austin

    Allegro

    (merry),

    the Ford

    Capri

    and Ford

    Cortina,

    but has

    since become

    a truly

    global

    trend

    (see

    Table

    1).

    It

    was

    recently reported that

    as

    many as

    50

    per

    cent of all new brands in

    Japan

    are

    now named

    after Italian towns and rivers,

    although

    this has probably more

    to

    do with

    the glamour of

    European-sounding names,

    the fact that Italian words are not

    too

    hard

    for

    Japanese

    consumers

    to

    pronounce

    (like

    Japanese

    words,

    Italian words almost invari-

    ably end with vowels)

    and the musical

    sound

    ofthe language,

    rather than any strict associ-

    ation with

    Italian brand values.

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    But,

    despite the

    evident attractiveness

    f

    attributes, and, indeed, the dispro-

    large number of global brands

    come from Italy, it cannot

    begin

    to

    the dominance of brand America.

    ROMAMERICA

    than

    any other country, America ap-

    to be

    blessed

    with a huge range

    of

    brand

    attributes:

    one only

    has

    to

    ts more successfulexport

    brands to

    he expressivepower of these attributes.

    is

    associatedwith

    the

    definit ive

    lifestyle

    (Coca-Cola,

    Pepsi, MTV

    Wrangler); with sporting prowess

    O'Neil l, Rockport, Reebok, NBA,

    with technological

    (lBM,

    Compaq, Dell, Hewlett-

    AT T Motorola, Intel,

    Microsoft);

    is well-travelled

    (BoeinB,

    Hertz,

    Avis, NASA,

    Holiday Inn, Shera-

    (CNN,

    Time,

    National Geographic,

    NBC,

    and, naturally, wealthy and

    power-

    Express, Forbes,

    Citibank,

    Club, Western lJnion). Coming

    America even lends authoriry in areas

    were

    once

    considered quintessentially

    such

    as

    fashion

    (Calvin

    Klein,

    Karan, Tommy Hilfiger, Ralph Lau-

    The

    Gap), beauty

    (Elizabeth

    Arden,

    Max

    Factor) and

    even food, albeit

    f

    the

    convenience variety

    (McDonalds,

    Hut,

    KFC, Thco Bell etc).

    These

    and many other attributes

    make

    without

    doubt. the worldt most

    public

    domain brand.

    This may be

    one of the

    privileges

    of

    being a

    and productive nation, but it

    is

    also

    the result of the fact that

    has

    branded

    itself so conpetently

    a

    country.

    Brand America

    enjoys the ser-

    of

    the rvorldt

    best advertising

    agency

    Hollywood

    -

    rvhich

    for nearly a cen-

    has

    been

    pumping

    our

    two-and-a-half-

    cinema

    commercials.

    which

    consurnersaround the world have enthusi-

    astically paid to watch. Brand America also

    employs such high-powered salespromo-

    tion agenciesas NASA, which periodically

    launches a rocket into space, n order to

    communicate

    the

    superiority of

    American

    technology and

    industry.

    Consequently, American brands

    can

    sim-

    ply

    hitch

    themselves onto this

    powerful

    na-

    tional brand.

    and

    a cultural and commercial

    trail

    is instantly

    blazed for

    then

    around the

    world. Litt le wonder

    that so

    many

    brands

    from other

    countries are

    keen

    to borrow

    American attributes.

    There are only a limited nurnber of

    other

    countries and regions in the world with

    clear, consistent, and universally understood

    brand

    prints, of which

    a

    large proportion

    are

    European

    (England,

    Scotland, Ireland,

    Spain,

    France,

    Italy,

    Germany,

    Switzerland).

    Naturally, they are best understood by their

    near

    neighbours,

    but

    just

    like

    successful

    ri -

    vate-domain

    brands,

    the key attributes

    of

    these

    brands are known

    by

    consumers more

    or

    less throughout

    the world. Whether one

    asks the question in Australia,

    China

    or

    Chi le, the sa rne basic

    associat ionsexist:

    Switzerland

    and wealth, Italy and style,

    Scandinavia

    and

    cleanliness,

    England and

    tradition.

    It

    is equally clear that other countries are

    not brands, and have decidedly few

    interna-

    tionally-understood attributes

    beyond their

    immediate

    neighbourhood: ask a Mexican,

    an

    American or a Sri Lankan

    what qualities

    they associate

    with

    Belgium, or

    Portugal, or

    Liberia, or Greenland,

    and their answer

    will

    be neither long nor fluent.

    THE MPORTANCE F SWISSNESS

    Switzerland

    is in many respects he

    classic

    wel l-establ ished European brand,

    and i t

    seems that

    no

    matter

    rvhom

    one

    asks

    around the rvorld, the

    same

    set of

    Swiss

    at-

    tributes always comes up. These attributes

    can be

    expressed n many different

    ways,

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    (1)

    ()\

    11\

    Taele 2 Txe

    Swrss: AccoRDrNG

    o MYTH

    (6)

    (7)

    (8)

    Srvitzerland s boring.

    The Srviss re never ively or

    exuberant.

    The Swissaremethodical.They are never n a hurry.

    Switzerland

    s rich.

    There

    is

    no poverry n

    Switzerland.

    Switzerland

    s efiicient.

    Everything in

    Srvitzerland uns ike clockwork.

    The Swiss

    are

    diplomatic. They

    play

    a key role in international affairsbecause

    they are alwaysneutral.

    The Swissare secretive. wissbanks are

    egendary or

    their discretion.

    Switzerland s conservative. he Swissare verv attached o traditional values.

    The

    Swissare

    nternationalists. hey

    all speakmany languages.

    The Swissare dependable. hey are solid

    and trustworthy.

    The Swissare

    arrogant.

    They think

    that all thesequalities

    make them superior to

    other

    nations.

    (4)

    (s)

    (e)

    (10)

    ranging from the insulting to

    the adulatory,

    but the

    basic

    ideas

    are always

    remarkably

    similar. As might be expected, they are nei-

    ther

    part icularly profound

    nor necessarily

    accurate,

    and

    are commonplaces

    or

    clich6s

    rather

    than observations based on under-

    standing

    or

    familiarity.

    The principal

    Swiss

    myths,

    as expressed

    by small groups

    of mixed

    age

    and

    mixed in-

    come

    group

    respondents n var ious coun-

    tries, appear to be those listed in Thble 2.

    As is

    often the case n international rela-

    t ions, familiarity breeds contempt: the

    nearer people

    are,

    physically,

    o Switzerland,

    the more likely these myths are to

    be ex-

    pressed

    n cynical or chauvinistic ways. Peo-

    ple

    often argue with their neighbours over

    the garden

    fence.

    The French,

    Germans, Austrians

    and

    ltal-

    ians seem

    most likely

    to

    turn these

    brand

    attr ibutes into

    insults,

    but

    moving

    further

    and further

    away,

    it is found

    that although

    they change remarkably

    litde in substance,

    they are expressed n more

    and

    more re-

    spectful ways. Once in North America

    Switzerland

    seems

    o

    embody a

    very full sei

    of virtues; in Asia, the

    Swiss

    brand

    appears

    to be fainter with distance.

    but

    the kev val-

    ues are still

    there.

    It is most

    striking

    how

    central the image

    of the impenetrable

    Swiss bank

    is

    to most

    peoplet view of Swissness:t appears o be

    as durable

    and widespread an icon as

    cuckoo clocks,

    yodelling

    and fondue, and is

    perceived as

    being

    the principal

    national

    produce of

    Switzerland. Switzerland,

    of all

    the

    European

    countries, certainly enjoys

    one of the clearest mages n other

    parts

    of

    the world, and in the context of sell ing f i-

    nancial services,

    certainly the

    most appro-

    priate,

    as the following informal survey

    suggestS.

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    3 AH rnronMAL

    suRvEy oF

    pERcErvED

    NATToNAL

    HARAcrERrslcs

    ABC1 respondents, ged25-39,10

    each ror.nHong Kong,

    Colombo,

    London,

    Copenhagen,

    Paulo andBoston rvereeach

    e-mailed a

    list

    of 14 possiblenational characteristics* nd

    asked

    match two of them to each of a list of 12 countnes.

    mixed results r a preponderance

    f

    'Don't

    Knows' are marked as

    I.Jnclear'

    n

    the table;

    he

    isted

    are hosewhich

    were selected y at least30% of

    the

    total group, and are n

    ofpreference:

    France

    Germany

    Sweden

    Britain

    BraztI

    Italy

    Spain

    Switzeiland

    Belgium

    Netherlands**

    Portugal

    Denmark

    (Unclear)

    Arrogance,order

    Efficiency,moderniry

    Arrogance, radition

    Sryle,

    squalor

    Style,

    aziness

    Inefficiency, laziness

    Wealth, orilet

    (Unclear)

    Moderniry arrogance

    Poverry

    backwardness

    Cleanliness,moderniry

    humiliry, eff iciency, inefiiciency, er.rergy, aziness,wealth,

    povercy,

    cleanliness,squalor, order,

    tradition, sryle.

    Perhapspredictably, clear resultswere only obtainable for the Netherlands rvhen it was (incorrectly) referred

    as

    Holland'.

    It

    sbould

    be srressed hat

    Table

    3

    is a

    unscientific

    and

    informal survey, and

    is

    debatable

    vherher rhere

    s any point in

    it

    more

    thoroughly, bur

    it does

    tend

    confirm

    the

    feeling

    that if

    any one

    coun-

    has

    a

    clear

    head start

    rvhen it comes to

    credentials or banking

    services, hat country

    is Switzerland.

    Clearly,

    horvever, there is no great

    chal-

    Ienge in developing

    'national

    produce'

    brands

    -

    such as

    Swiss financial

    services

    companies

    -

    into international brands

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    8/12

    since the correct brand associati ons re al-

    ready in place. Predictably,most of the

    in-

    ternational

    brands from Srvitzerland come

    under the

    category of

    national produce

    (chocolate,banking and rvatches), ut there

    are indicat ions that extensions o the na-

    t ional

    brand are beginning

    to develop

    through

    the activities

    of

    S uvatch.

    Swatch, as a basic

    watch brand, is not re-

    ally a country-brand exercise

    at all,

    ust

    an

    update

    of

    the

    national-produce

    paradigm

    lvatches

    come frorn Switzerland : but the

    company does appear o be starting o bla ze

    a trail for a

    genuine

    development of Swiss-

    ness,

    through brand extensions such as

    pagers or the Swatch/Mercedes-Benz

    Smart

    Car concept, as well as the

    global

    acceptance of

    Swatch

    as

    a credible

    youth

    brand con:ring rom

    Switzerland.

    A vista

    of

    possible

    Swiss brand extensions

    opens up,

    ranging from

    Swatch-branded snowboarding

    equipment to

    Swiss

    Army-branded

    world-

    wide adventure

    holidays.

    The

    branding equation runs something

    like this:

    Switzerland

    :

    watches

    -Swatch

    :

    Swiss watch

    -Swatch

    :

    youth

    brand

    ->Switzerland

    =

    youth

    brand.

    BRANDS ROMBRAZIL

    By contrast

    to Switzerland and its various

    successful nternational brands,

    Brazil, one

    of

    the most

    strongly

    branded countries in

    the world, produces no international com-

    mercial

    brands whatsoever. This is surpri s-

    ing, not least because the brand print

    of

    Brazil is unusually compact: it is associated

    with a fairly

    homogeneous and coherent set

    of values. Brand Brazil is strongly

    biased to-

    wards youth markets:

    samba,

    carnival,

    music,

    dancing, gaie\, ecology,

    sex,

    beaches,

    sport

    and adventure

    could

    be the brand print

    of

    almost

    any

    successful outh product on the

    market

    todav.

    Certainly, these clich6s may be d epress-

    ing,

    even insulting, to the averageBrazilian,

    but they

    are

    undeniably

    a

    fine platform on

    which

    to build a believable

    global

    brand.

    It

    is one of the tasksof advertising and market-

    ing to manipulate these

    clich6s

    nto some-

    thing

    more creative, more substantial,

    more

    fair,

    nore true.

    The fact

    that there are

    negat iveassocia

    tions

    -

    pollution,

    overpopulation,

    poverfy,

    drugs, lawlessness

    rvithin the brand

    print

    of Brazil is not necessarily

    a cause

    or

    great

    concern, at least from the branding

    point of

    view. After all,

    a strong brand

    is

    a rich brand

    ,as

    he

    writer of this

    paper

    has observed in

    a

    previous ssueof this ournal.2, and richness

    implies

    a complex and satisfying rnix of

    many

    different elements. The brand equiry

    of the

    USA would appear to contain a sig-

    nificant proportion

    of negative elements. but

    this does little to

    diminish

    its

    attraction: es-

    pecially

    when one is dealing

    with

    younger

    consumers, the

    suggestion of risk i s highly

    attractive. These

    are consumers, after all,

    who

    wish to

    challenge

    and be challenged.

    Certainly, there are good reasonswhy so

    few

    Brazilian

    brands

    have

    u entured

    onto the

    world marketplace. Jntil

    recently, economic

    problems

    have meant that merely surviving

    in the domestic

    market has been the main

    concern.

    Now, the environment is chang-

    ing,

    and the Brazilian government is actively

    encouraging

    an export mentality in its in-

    dustries.

    The

    global

    surge in interest in ecology

    also presents a major

    opportunity

    for Brazil

    at this moment. Brazil, becauseof its nat-

    ural image, and w-orldwide

    awareness

    of

    the

    importance of the Amazon

    rainforest

    to

    global

    ecology, combined

    with the

    rvorld

    ecology summit being

    held in

    Rio

    de

    Janeiro,

    has begun

    to

    push

    Brazil into

    th e

    ecological

    limelight. Brazil

    is u idely

    per-

    ceived as

    being a

    natural ecological

    centre

    for plane t earth:

    expressions ike

    the

    lungs

    of the

    planet are

    commonly

    used

    around

    the world

    when speaking of the

    Amazon.

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    this

    r'vith

    the fact that young

    con-

    everywhere ar e ever more

    attracted

    products

    with

    a

    'green'

    story, and a pic-

    begins to emerge

    of a

    growing

    oppor-

    for a wide range of Brazrlian brands

    especially

    n the food,

    cosmetics, ashion,

    and even automotive and industrial

    The

    growing

    acceptance of

    'Brazilian-

    attr ibutes within

    established nterna-

    brands appears o confirm the point:

    has all but replacedjojoba

    and gin-

    as a

    'must-have'

    ingredient in ecology-

    food and

    cosmet ics, and other

    themes

    and ingredients feature in

    Body Shop's current range,

    in Ben

    ce

    creams,even in video games.

    It

    appears,

    however, that many younger

    around the world are still unclear

    the exact role

    of the

    Brazilian

    govern-

    and population

    when it

    comes

    to ap-

    blame

    for

    the deforestation and

    which goes

    on

    in their

    country:

    they

    the perpetrators,

    or are they are

    the

    exploited vict ims of f irst-world

    This

    uncertainry

    spellsout an addit ional

    for Brazil's international public

    - perhaps

    the most urgent one

    of

    The

    global

    brand-owners

    club i s an ex-

    one,

    and membership is neither free

    automatic

    for any

    country.

    Quite

    aside

    the

    major

    investment which individual

    need

    to make in creating, distrib-

    and

    marketing

    international brands,

    country

    itself

    needs o make an

    invest-

    in

    its

    image

    asan acceptableproducer

    ecologically-themed

    brands.

    There

    can

    be little doubt that Brazil

    norv

    a

    hne

    opportuniry

    to

    buy

    iself a place in

    hearts

    and

    minds

    of the

    rvor ld's

    con-

    -

    and

    mosr especially he all-pow-

    younger

    consumers

    -

    simply by

    a

    visible

    and effective srance on

    these

    ecological

    issues. fsuch a

    gesture

    major,

    real,

    and lasting

    (young con-

    cannot easilybe fooled by dogma or

    rhetoric), and properly

    managed in

    PR

    terms, it could pave the

    way for a real re-

    naissance

    f

    Brazil

    itself and Brazilian

    brands

    around the

    world.

    Currently, almost all of Brazilt export in-

    come derives frorn

    the sale of

    raw

    com-

    modit ies

    (such

    as soya beans, obacco, iron

    ore and coffee), semi-processed oods

    (such

    as

    cellulose,

    steel, soya oil and sugar) and

    largely unbranded

    manufactured goods

    (such

    as shoes,orange

    uice,

    sheet steel and

    automobile tyres); and many of these

    ex-

    ports contribute directly

    or indirectly to the

    depletion

    of the country's natural resources.

    There is no question

    that if these bulk

    exports were to

    be enhanced

    or,

    indeed,

    re-

    placed

    by the sale

    ofbranded

    goods

    directly

    to overseasconsumers, profits

    would r ise

    dramatically,

    and the level

    of

    profit gener-

    ated by the success

    of these brands might

    soon overtake the income

    created by

    the

    ex-

    port of commodit ies.

    After all, much o f the

    real wealth of

    'f irst-world'

    nations comes

    not from the

    sale of their natural resources

    (many

    first-world countries have

    precious

    few to export), but from the export of man-

    ufactured items

    developed into brands by

    the added value of intelligent marketing.

    An

    economy which depends

    on income

    gener-

    ated by bulk export is

    caught

    in the

    classic

    third-world poverty

    trap, and learning to

    develop successful domestic brands into

    global brands s

    certainly one

    way

    out of

    it .

    BRANDEXPORT S A

    STRATEGY

    FOREMERGING CONOMIES

    One

    of the

    great

    advantages f brands over

    commodit ies

    is that they are an inf initely

    sustainable esource

    (as

    ong as heir equity

    is

    maintained

    through careful

    marketing),

    because hey are made of air, and are thus, at

    Ieast n theory, the ult imate ecological

    ex-

    port.

    Clearly,

    the notion

    of export ing brands

    rather

    than produce

    is a compelling one for

    manv countries other than Brazil. Almost

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    any

    energing

    nation could

    benefit from a

    movement torvards global

    brand

    export, and

    ultimately escape from the third-world

    poverry cycle in

    this

    rvay. Not

    all emerging

    countries have Brazil s natural advantages:

    strong nation-brand, cornbined with an in-

    creasingly healthy economy, a gove rnment

    which

    actively encourages he export

    rnen-

    taliry not to mention considerable domestic

    experience in

    brand-building.

    After all, even

    though it only emerged from

    military rule

    and hyperinflation a

    few short years ago,

    Brazil has a democratic traditio n, and this

    has enabled the

    creation

    of many highly suc-

    cessfulentrepreneurs, domestic conrpanies

    and domestic brands (not to mention one of

    the best advertising industries in the world).

    Even

    so, without stretching the imagina-

    tion too

    far,

    one can see how the

    principle

    could apply in the caseof other countries:

    Russia, China, India, and many African

    countries have the potential to build

    srrong

    brand associations,

    s hey are richly embed-

    ded in global

    culture and history.

    David Tang, owner

    of the Hong Kong

    department store Shanghai Tang, has re-

    cently opened

    a branch

    in

    New York, and is

    quoted as saying,

    I ve

    alwayswanted

    to cre-

    ate a Chinese brand. In Hong Kong

    our

    shopping malls are overrun with rnore

    and

    more

    Western

    brands, yet no-one

    else

    has

    applied

    their

    minds to evolve the

    Chinese

    style .

    Perhaps

    some smaller countries could,

    with care. be built into

    valuable

    niche

    brands Sr i Lanka, Peru, V ietnam,

    Poland, Tibet - the l ist is a long one, and

    matching potential private-domain

    brands

    to these

    public-domain

    brands s a fascinat-

    ing and thought-provoking exercise.

    The

    key is simply to

    be relevant

    yet imaginatiue,

    becausea too litera l-minded approach to the

    problem

    will merely result

    in

    endlessvaria-

    tions

    on

    the theme

    of national

    produce.

    In today s global

    village, where geography

    colrnts for

    so l itt le,

    countries beco me like

    factories,

    competing

    for the same

    broad

    groups

    of consumers. Naturally,

    each

    factory

    becomes associatedwith certain

    strengths

    and attributes: in the same way that con-

    sumers would probably not buy To shiba

    shampoo or Mercedes soup, they are un-

    Iikely to rush

    out

    and

    buy

    Dutch

    perfunre

    or a Brazil ian CD

    player. But Brazil might

    be the perfect provenance for surf

    gear or

    football boots or cocktails,

    and a stylish

    Russian

    raincoat, upmarket Chinese sta-

    tionery

    or

    Indian

    accountancy

    software

    might one day seem as natural and appropri-

    ate as a Korean television or a Malaysian

    car

    do today

    -

    and both of

    these seemed

    strange

    enough

    twenry years

    ago.

    GLOBALBRANDS NDTHE

    CHANGING

    ONSUMEF

    During

    the long years

    of the

    American and

    European domination

    of

    global brands, con-

    sumers around

    the world

    have become

    rapidly

    more discerning, more sophisticated

    in their

    tastes, wealthier, better informed

    and generally

    exercise more

    power

    than ever

    before over manufactLrrers.

    By and

    large,

    these

    brands have not been marketed with

    any

    great

    degree

    of sensitivity to

    local cul-

    tural conditions

    -

    in the recent past, their

    superior qualiry

    and

    glarnorousprovenance

    have

    been sufficient

    to ensure their

    instant

    acceptance over poor-quality domestic

    equivalents.

    But

    those domestic

    brands

    which have

    survived have

    done so by

    quickly

    learning to

    cornpete on price, qualiry

    and sophistication

    of marketing, packaging and presentation.

    Consequently, the

    playing-field

    is becoming

    gradually

    more and more level.

    It seems ikely

    then that consumers,

    espe-

    cially in poorer

    countries, will begin

    to look

    for

    a more sophisticated

    combination

    of im-

    port-style

    quality

    and domestic-style

    rele-

    vance in their

    imported brands. In some

    of

    the emerging markets

    of Europe,

    for exam-

    ple,

    there is alreadyevidence

    of a consumer

    backlash against

    he insufficiently sensitive

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    techniques practised by some for-

    brand-owners:

    the sight of the Latvian

    for

    Culture symbolically

    tearing up

    package

    offoreign coffee on

    the national

    news (because of the cultural

    performed

    on

    the Latvian lan-

    by the unhappy company s advertising

    s

    one

    of many

    such

    indicators.

    It may

    well turn out that

    Brazilian and

    third

    world

    brands

    have a distinct ad-

    over American and

    European

    when

    it

    comes to

    making friends

    consumers n some of the worldt

    growth markets

    -

    Asia, Eastern

    Eu-

    Latin America, and one day Central

    Asia - because of their

    provenance and because of their

    non-imperialist, non-colonial

    These are

    colleague

    countries ,

    may well

    find

    that their

    provenance is

    merely an important characteristic of

    brand personali ty, but a

    fundamental

    to

    consumer

    acceptance.

    RAND

    BRITAIN:NO EXCEPTION

    O

    RULE

    is

    no question that the

    longer-estab-

    nation brands will need to

    modernise

    themselves

    o match the new order,

    and it is

    o

    accident

    that

    the

    UK s

    new government

    often

    speaks

    of the need to

    rebrand

    ritain .

    The

    associations f

    Brand

    Britain

    are

    by

    no

    means entirely negative, but

    since

    they

    appear

    to

    be intimately

    and ahnost ex-

    clusively

    associated vith

    the country s

    past,

    they are decidedly limiting for British

    brands

    which

    wish

    to

    be

    perceived

    as

    nrould-breaking,

    forward-looking,

    techno-

    logically

    comperenr. This is at least

    part of

    the

    reason

    why both Brirish Ainvays

    and the

    British

    Tourist

    Authority

    (BTA) have re-

    cently

    replaced

    he national

    f lag

    with logos

    of

    their

    to the disgust of

    many.

    However,

    the good intention

    must

    be

    married

    to

    actual knowledge and

    under-

    standing

    of

    the

    cultures

    to which

    the

    nerv

    face

    is to

    be

    presented: n branding terms,

    the consurner mllst be unde rstood before

    considering how

    to rebrand. There is noth-

    ing

    wrong with

    the

    new logo chosen for the

    BTA - except, of course, that it is based on

    the word

    Britain, spelt out in Roman let-

    ters, which, of course,

    is a meaningless

    squiggle

    to the vast majoriry of

    visitors

    from

    countries who do not use the same writing

    system

    as ns.

    It

    would

    be

    precisely the

    same

    thing if the

    Japanese

    Tourist Authority de-

    cided to rebrand tselfas

    -

    hardly

    the

    action of

    a deterrnined multi-

    nationalist.

    The need

    to present Br i tain as being

    more

    European, more

    global, is certainly a

    primary need. There

    is undoubtedly a lin-

    gering

    acceptanceof the British as

    nterna-

    tionalists, but

    it can only d erive

    from our

    long history

    of determined,

    i f not bruta-

    colonisation of

    large portions of

    the globe.

    What is now necessary

    s for that

    interna-

    tionalness to be underpinned by a more

    modern

    value-set: wisdom, open-minded-

    ness,cultural sensitivity,

    and

    will ingness to

    listen and

    to learn from other

    coutrtries.

    Indeed, what appears

    to many to be

    a

    mere

    production deta il - speaking other

    languages

    may

    well

    prove to be a

    funda-

    mental first stage in the

    rebranding of

    Britain. One

    of the aspectswhich best char-

    acterised

    our aggressiventernationalism

    in

    past centuries was our refusalor

    inabiliry

    to

    E

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    speak other people's languages, which

    is

    why

    Tony Blair 's recent address to the

    French

    Chamber of Deputies in French was

    received with far more delight

    and surprise

    than his

    moderate A-level French

    would

    lead

    one to expect: he

    sau'the

    need to make

    the effort.

    The writer has commented elsewhereon

    the

    remarkable fact that

    'ethnic'

    marketing

    has

    never been seriously

    practised

    in the

    uK, despite the evidence of decadesof ex-

    perience

    in

    the

    USA and Australia to

    prove

    that it

    contributes significantly

    to

    brand

    loy-

    alry

    and despite the

    fact

    that a

    good

    ten

    per

    cent of the UK population

    does

    not

    speak

    English as ts f irst language: this is further

    evidence of the lack

    of

    importance

    which

    the British, as a nation,

    have tended to place

    on language

    as a

    culturally

    signif icant tool

    and

    behavioural motivator.

    The

    immense

    good

    fortune

    of having a

    global

    lingua franca

    as our native language

    can make the Brit ish dangerously

    ndolent.

    Of course, many people

    around the world

    speak English,

    but when

    trying to interest

    them in products,

    the key issue is hardly

    whether

    they can understand what

    th e

    British are

    saying or not. The more impor-

    tant

    question is: should

    they be making

    the

    effort

    to understand

    the Brit ish, or should

    the British making

    the effort to make

    them-

    selvesunderstood by

    other nationalities?

    As

    with any brand

    print,

    the

    solution will

    never

    be simple or

    pure.

    Successful rands,

    especiallysuccessfulnternational

    brands,

    are

    often

    characterised

    by their r ichness and

    complexiry and provenance, just like any

    other

    brand characterist ic,can exist

    in de-

    grees,

    and can appear

    o be multiple. British

    Airways

    noted that Britishness is a valuable

    attribute for certainaspects

    f an airline brand

    -

    those parts connected with

    seryice and

    re-

    liabil ity

    -

    but

    an

    air line needs many

    more

    attributes

    for

    which

    Britishness can never be

    adequate

    shorthand. Retaining the

    rvord

    British

    in the brand

    name

    is enough; for the

    rest,

    airlines need to be global travel brands

    rather than national carriers,

    so the

    graphic

    elements celebrate he company's mult icul-

    tural rather than monocultural

    aspects.

    n

    other

    words,

    the brand becomes the best

    kind

    ofBritish: a Briton who has ravelled.

    It

    is becoming increasingly

    apparent

    ha t

    the global

    brands of the twenry-first century

    need to acquire a new talent: sensit ivity to

    culture. For

    decades,high product quality,

    competit ive pricing,

    a glamorous prove-

    nance

    and effective distr ibution

    have been

    sufficient

    to ensure

    international

    marketing

    success

    but this is export marketing, not

    global

    brand-building.

    More than ever be-

    fore,

    brand management

    must be informed

    by

    deep understanding

    of the culture of the

    marketplace

    as

    much

    as by

    understanding of

    the

    culture of the

    brand itsele

    and success

    will

    be determined by the

    abiliry to exploit,

    skilfuIly

    and intelligently,

    such complex cul-

    tural

    mysteries as provenance

    in the

    service

    of

    brand imase.

    RereneHces

    (1)

    (1997)

    D AD CourseTutors'

    Seminar, ondon,

    September.

    (2)

    Anholt,

    Simon

    (1996)'Making

    a

    Travel', TheJournal JBrand

    Management,

    olume 3, Number

    6,

    pp.

    357-364.