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The Importance of Image inNational

Competitiveness

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The ICI Partnership

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TheCountry Image

SpecialistsWorld’s top specialized

consultancyon

country imageA 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 is

cultural/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 Japan

or Sony?

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Image, not just reality,

kills.

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Colombia is an example:

• Drugs• Violence• Guerrilla warfare

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But, what about…• Coffee• Flowers• Emeralds• Leather• Scenery• Brand name apparel

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Stop being defensive!

Go on the image offensive!

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Rule #1

Realize the importance of

image or branding.

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First, what is a brand?

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Product vs. Brand

IBM is a registered trademark of IBM Corporation

Photo courtesy of Montgomery County Historical Society

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Brand vs. Product

Brand Emotional

Product Functional=

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“In the factories,we make cosmetics.

In the stores, we sell hope.”

Charles Revson, founderRevlon

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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

MarketOld Market Need Appeal Basic SkillWatch Information Accuracy Craftmanship

New MarketSwatch Fashion Appearance Design

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“To have your own brand should be the ultimate goal of all

manufacturers, but it’s a long-term

process.”Stan ShihFounder & ChairmanAcer

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Some Facts about Brands

• Brands are market leaders• Brands have higher profit

margins• Brands do not have lifecycles

like products, they are bigger than products

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Image Positioning

• The key differentiator• Need vs. want (transport vs.

Toyota)• Answer the question: Why

Colombia?

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The World’s Top Brands

• Coke• Marlboro• Sony• McDonald’s• Disney

• Ford• Shell• IBM• Pepsi• Honda

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Conclusion:

Brand 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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Problem:

Fragile investor confidence engendered byAsian financial crisis

Solution:

“Admit ills and commit to painful cures”

Thailand

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Thailand

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The Importance of Image

A “Made in Taiwan”

Case Study

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A serious economic problem

caused by image

• The 25% “discount”• International jokes• Consumer prejudice

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A Public & Private Sector Initiative

• Vice Minister of Economics P.K. Chiang• Secretary General of CETRA Agustin

Liu• Stan Shih, Acer• King Liu, Giant• Frankie Hong, Proton• Kunnan Lo, ProKennex• BIPA (Brand International Promotion

Assoc.)

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Three Five-Year Plans

• 1990-95• 1995-00• 2000-05

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1st Five-Year Plan

It’s Very Well Made in Taiwan”

Attack weakness- Quality

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Create a Signature

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Communications Strategies

• 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 millionPR: $1.5 millionEvents: $2.5 millionProgram: $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 of

Eight 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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Colombia’s 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, don’t wait for competition

• Build strategic foundation first• Make a long-term commitment/vision• Conduct domestic campaign• Simultaneous political PR• Support the new Administration• Go on the OFFENSIVE!!

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Final Thought

Remember the

Germans and Japanese!