Marketing In An Economic Downturn –
Some Perspectives From the Nation
Brand and from a Marketer
Tshepiso Malele
30 May 2016
Brand South Africa
• Marketing to the cash-strapped consumer
• Exports – what does this mean for South Africa?
• Recent Eskom power crisis; Water crisis; and Rand exchange rate – Domestic negativity
• Possible Strategies for Marketing in an Economic Downturn
• Getting the message across against negative consumer sentiment
Navigating the storm…
Agenda
Brand SA Introduction
What is a Nation Brand?
Brand SA marketing activities & response to the challenges
Research Update
Case studies
● Brand South Africa was established in August 2002 to help create a positive and compelling brand image for South
Africa.
● Our main objective is the marketing of South Africa to domestic and international audiences.
● Brand South Africa is tasked with positioning South Africa as a competitive destination of inward investment, trade,
skills, tourism, etc.
● The message of South Africa’s competitiveness must be anchored in facts and borne out by the reality experienced by
various audiences.
● Brand South Africa’s key job is therefore to engage with a range of stakeholders and identify those areas in which we
have either distinct, or competitive, strengths which will assist Brand South Africa to fulfil its mandate.
Brand South Africa – Who We Are
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Sluggish economy, negative perceptions, corruption… What would you do as a marketer?
Our Mandate
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Build South Africa’s Nation Brand reputation to contribute to
South Africa’s global competitiveness
Inspire and instil active citizenship amongst South Africans
The official agency established to market South Africa; responsible for building the
Nation Brand and managing reputation.
Face similar challenges as other product / commercial brands…
Programme: South African Competitiveness Forum (SACF)
● A strategic platform through which stakeholders from government, business &
civil-society identify the competitive, reputational strengths, and challenges
the brand faces
● Facilitate discussion on how improved competitiveness and strong
international reputation can assist the country to achieve long-term
development, social, transformational and economic objectives
● Focuses on themes such as:– Manufacturing and related services
– Education, Skills & Labour
– Youth
– Innovation
– Foreign Direct Investment
– Global South Africans’ part in creating a competitive nation brand
– The role of Labour
Programme: Global South Africans (GSA)
• Aimed at enlisting the talent, experience and credibility of South Africans living
abroad to build the Nation Brand internationally
• South Africans living abroad are often the first point of contact for people
overseas whose judgements have a profound impact on the fortunes of our
country
• GSAs can show the world what South Africans are made of, why we are worth
investing in and partnering with and how we can help find creative solutions to
the world’s problems
• By becoming part of the GSA network, you are saying you want to act as a
“brand ambassador” for the country
Programme: Nation Brand Master Class
● To educate, guide and empower key stakeholders
with the intricacies of handling a nation brand
● Everyone has a part to play in making our country a
complete and competitive nation
● The Master Class is about building a nation brand
that at its core is unified through its diversity
Programme: Play Your Part
• A nationwide social movement created to
inspire, empower and celebrate active
citizenship in South Africa.
• Aimed at all South Africans – from corporates to
individuals, NGOs to government, youth
platforms and young to not so young.
• It aims to encourage South Africans to use some
of their time, money, skills or goods to contribute
to a better future for all.
• Ultimately the end result is for every South
African to make a positive difference in the
communities in which they live and operate.
To achieve VISION 2030
Domestic
1. Brand alignment - active
citizenship, civic pride,
ambassadorship & social
cohesion.
2. Stakeholder outreach and
partnerships (Government,
Business & Civil Society).
3. Profiling the SA’s vision,
achievements, develop and
inclusive growth efforts – NDP
4. Championing regional
economic integration and its
benefits to SA and the
continent
5. Leverage strategic domestic
platforms to profile SA as ideal
business destination.
International
1. Expose international media to SA
proposition as attractive business
destination [Press trips]
2. Engage key stakeholders and
target audiences critical to the
positive positioning of SA
[Investors, Media]
3. Sustaining a reputation
management programme in
target markets to entrench
relevant key messages.
4. Facilitate coordinated marketing
and messaging of SA attributes.
5. Leverage strategic international
platforms to promote brand SA.
Strategic platforms
• WEF China
• Africa Programme
• Branding Summit
• WEF Davos
• Mining Indaba
• In-country Round
Table discussions
• FOCAC
• WEF Davos
Other Strategic Focus Areas and Initiatives
Shift of focus from big productions, sponsorships etc. to more on-the-ground
engagements over time
THE NATION BRAND
Nation Branding
The practice of highlighting, encouraging, reinforcing,
communicating and aligning a nation’s attributes in
order to present the nation in a way that helps it reach
defined strategic goals
Nation Brand
is the sum of people’s perceptions of a country across
six core areas – the Nation Brand Hexagon
The Nation Brand Hexagon* - identify assets within each element…
ExportsTourism
Governance
Culture and Heritage
PeopleSkills and openness
Investment Potential and
attractiveness to outsiders
Commercial and cultural
products and sporting prowess
Competency fair
governance, human
rights, international
contribution
Potential attractiveness
and economic
contribution
Level of
satisfaction with
country’s products
and services
Investment &
immigration
* Anholt-GfK Roper
Brand South Africa Stakeholders and Target Audience
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Government
• Political leaders
• National government
• Local government
• Trade & tourism entities
• Political parties
Business
• Business Associations
• Corporates
• International Chambers
• International Trade Councils
• Export Councils
• Tourism players
• Film makers
• Conference organisers
• Economists & Analysts
• Public
• Political Parties
• NGO’s
• FBO’s
• Labour leaders
• Youth Formations
• Academia
• Gender advocacy groups
• Clubs, societies & special
interest groups
Civil Society
Media
Influential forums
• United Nations
• AU
• SADC
• World Bank
• IMF
• BRICS
• World Economic Forum
• IATA
• WWF
Opinion leaders
Competition for share of voice in a crowded market place for:
Inward investment
Trade
Exports
Tourism
Telling your own story – selling the country proposition
Changing Perceptions and Image
Build strong brand Image = Nation Brand Equity
Help restore international credibility and investor confidence
Why is a Positive Nation Brand Important?
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How did we get there?
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• A drop in Mining
• A credit bubble
• Increased government spending
• Labour unrest
• Sluggish global markets
• Low levels of investment
Typical responses
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● Consumers set stricter priorities - and reduce their spending
● As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments
● Slashing of Marketing expenditures
● Less brand loyal during recessions
PRODUCT BRANDING
• Concerned with promotion of physical / tangible products largely for end-user consumption
• Product positioning is influenced by confluence of marketing ‘Ps’, such as Product, Price, Promotion and Place
• Manufacturer has full control of most elements of the brand/product
NATION BRANDING
• Concerned with promotion of intangible and largely fluid national reputations for global competitiveness
• Nation brand positioning is influenced by confluence of investment, export, governance, tourism, people, culture, and heritage reputations
• No single manufacturer. Nation brand is owned and ‘produced’ by all players linked to the nation.
Challenge when dealing with the Nation Brand…
Consistent delivery of the Nation Brand
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ExperienceWhat customers experience
when they engage us
ImageHow they see us
CapabilitiesOur capacity and ability to deliver
CultureOur behaviours, beliefs
and way of life
Alignment with stakeholders in terms of messaging and branding:
Communication to respective regions in the context of a South Africa that is competitively positioned in the global arena
Creating synergies in the projects that our stakeholders are working on in order to create IMPACT
By unifying all country brand messaging we ensure a coherent and cohesive communication that strengthens our position as a nation.
Achieve co-ordination such that all stakeholders can leverage from what each one is doing
Heightened need for collaboration with the brand’s stakeholders
What are the key ingredients necessary for successful place branding?
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● A favourable political framework which allows for the development of solutions that are market
efficient and not politically motivated.
● Managers with expertise in the area of place branding.
● Tradition of co-operation among the people that represent the different organizations.
● A common understanding of the need to attract resources and to differentiate a nation from
competitors
● A shared mission and a shared vision of what they are truly trying to achieve together.
Brand SA perspective: some of the challenges in the current
environment
● Reaching (and convincing) a diverse global audience in the current environment
– Restricted marketing budgets (as a result of economic downturn)
– Less budget for big campaigns
– Disengaged audiences
● Restricted buying power / decision making processes of audiences
● SA’s population profile: disenfranchised youth
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Brand SA responses to the challenges
● Collaborate: partnerships that create value for all
● Relevance: continue to gather insights and share with stakeholders who have an impact on
the nation brand
– What do they think about us?
– E.g. Homecoming Revolution research: not all South Africans leave the country for negative
reasons.
● Continue to build the brand:
– Media partnerships (domestic & international) vs. traditional buying
– Flighting of INW on digital media
– Increasing use of digital platforms to engage with audience
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South Africa’s People
● South Africa’s population of 53 million people is definitely a massive competitive strength
● South Africa’s population is extremely diverse with over 15 different ethnic communities within the
borders. South Africa has 11 official languages
● Because of our diversity combined with the spirit of reconciliation and forgiveness, South Africa is
known as the rainbow nation.
● SA’ns that have inspired new ways and redefined acting world e.g Charleze Theron, Terry Phetho
South Africa’s Financial Sector
● South Africa has the 12th best developed financial sector in the world according to the WEF GCI
– South Africa’s performance is outstanding in the following sub- indicators:
• Regulation of Securities Exchanges (2nd);
• Financing Through Local Equity Market (1st)
• Affordability of Financial Services (3rd); and
• Availability of Financial Services (6th)
• Soundness of Banks (8th)
● The JSE is the largest exchange on the African continent and the 19th largest in the world
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South Africa’s Corporate Sector
● South Africa’s corporate contributes to the country’s competitiveness – when corporates have an international
footprint, the global community experiences South Africa through these companies and are therefore very important
to the brand:
– 5 South African tech companies founded after 1980 worth over R10 billion eachhttp://mybroadband.co.za/news/business/133720-5-south-african-tech-companies-founded-after-1980-worth-over-r20-billion-each.html
• MTN – launched in 1994, has a market cap of R379 billion
• Vodacom – launched in 1994, has a market cap of R211 billion
• EOH – founded in 1998, has a market cap of R23 billion
• Dimension Data – founded in 1983, had a market cap of R22 billion in December 2010
• Datatec – founded in 1986, has a market cap of R14 billion
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South Africa’s Cities
● 3 of South Africa’s cities feature in the 2015 City Brand Index which measures the worlds
most globally competitive cities: Johannesburg (44), Cape Town (43) and Durban (48)
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South Africa’s Tourism
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• South Africa’s tourism sector is amongst the most competitive in the world.• Significant contributor to the country’s GDP • According to the Travel and Tourism Competitiveness Report 2015, South Africa is amongst Africa’s Top
10 tourism-ready economies
South Africa’s Higher Education
● South Africa is competitive in the higher education sector, and is an attractive destination to study.
● 4 South African Universities are ranked in the top 5 universities of Africa .
● The University of Cape Town is the fourth best university amongst the BRICS and emerging economies
according to the World Economic Forum.
Media Tour on Margins of FOCAC
Objectives:
Host international and local media to showcase South Africa’s
competitiveness in:
- Science and Technology
- Business and Investment
- Arts, Heritage and Culture
Audience: International and Local Media
Outcomes:
• Strengthen relationships with media
• Showcase South Africa’s competitive strengths
• Position Brand South Africa as a go-to-point for information on South
Africa’s competitiveness
Department of Home Affairs Training
Objectives:
Building the nation brand from the inside.
Part of DHA’s Customer Service Improvement training programme.
Audience:
Home Affairs officials at ports of entry and city offices.
Outcome:
Officials from various offices trained – covering pride, patriotism,
active citizenship and domestic insights.
Collaborating to deliver value for both partners and consumers
Objectives:
Encouraging Active Citizenship during economic downturn
Interactive digital marketing & communication campaign: Use GEM app to
mobilise citizens to play their part by participating in 1 of 10 identified
activations around Gauteng
Audience:
Gauteng based active citizens, stakeholders & media
Outcome:
Extending reach of PYP, along with clear call to action
Over 360 volunteers dedicated their time to contribute
to various causes
Google Maps launches the Mzansi Experience
● Discover South Africa for people across the world to discover the wonders of the
country.
● He hoped that visiting the country through Google Maps would inspire a deeper
appreciation for the country, the wildlife and Africa's beauty.
Read more: http://www.mediaclubsouthafrica.com/visitsa/4424-google-maps-launches-
the-mzansi-experience#ixzz49SuGiebD
Brand South Australia – leveraging the state brand…
CHARLESWORTH NUTS
● Produces high-end nuts, fruits and chocolate products for consumer and corporates
● Family business in South Australia since 1934, with a focus on 11 company owned retail shops and their online store.
INCORPORATING THE STATE BRAND INTO MARKETING
● Charlesworth Nuts invested a small amount of time and some creativity in looking for positive opportunities to use the State Brand.
● As a business already investing money in their marketing, simply adding the brandmarkinvolved no additional costs.
THE IMPACT
● Charlesworth Nuts believe it is an important and positive layer in their corporate identity that indirectly translates into sales and growth.
● Now it’s much easier to identify them as being a truly South Australian company.
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Calgary – recovering from economic disaster…
● ‘Calgary: Our Doors are Open’ was launched on the day the city lifted its state of emergency. – Print
– Radio
– Social media
● It featured numerous residents holding up signs saying ‘Open’, along with a campaign on social media that revolved around tongue-in-cheek slogans.
● It’s not just policy makers who can drive crisis management for places. Residents of the place also play an important role in restoring confidence in the brand.
● The effect was rapid and tourism numbers rebounded strongly.
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EgyptAir – regaining altitude against all odds…
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● EgyptAir turned its logos black and white on social
media in mourning after EgyptAir flight MS804 crash.
● Celebrities join digital campaign to support EgyptAir
● Egyptians and Arab people ignited an online initiative to
support Egypt’s national airline.
Final thoughts…
● Do not despair… Do not panic – stay true to your brand
● Collaborate: explore innovative partnerships that create value for all
● Relevance: continue to actively engage with consumers and stakeholders
● Seek cost-effective platforms to build the brand
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