Nation Branding as a Model of Managing the National Image 1

8/28/2009 8:10:04 PM

Nation Branding as a Model

of Managing the National Image

By: Rommey Hassman

Excerpt from Brand Israel Research Paper
School of Government & Policy, Tel Aviv University
8/28/2009 10:01:18 PM

What is branding Branding is a management tool, which businesses use to manage

their network of connections in the internal and external organizational environments.
It would be erroneous to state that branding begins and ends with a name, a logo, a
slogan or TV commercials. Rather, it is a complex, structured process that not only
manipulates the characteristics of a business’s image, but also is essential to its
process of strategic planning. To illustrate: when a large corporate entity is sold
among investors, it is priced not only based on its actual assets, but also based on its
brand value. An outstanding example of this is the 2005 sale of Gillette to Proctor and
Gamble for the sum of $57 billion.

Why brand a nation The theory of branding is no longer the sole province of
inventors and marketers of consumer goods and services. Branding theory has been
inculcated into the world of sports (e.g., the NBA, Michael Jordan, David Beckham);
cinema (“The Matrix” and “The Lord of the Rings” film series, Tom Cruise);
literature (the “Harry Potter” books); music (Madonna, Britney Spears); politics (Bill
Clinton, Tony Blair); and social action (Greenpeace, the struggle to save the planet’s
environment). No field has not been penetrated by branding. In recent years, the idea
of branding has also filtered into the management of nations. For example, the US is
very concerned about its image in the Muslim world – especially how a problematic
image might be impeding the US government’s global war on terror. Many other
countries, as well, are beginning to think seriously about this issue.

Is branding Israel the right thing to do Many will claim that the State of Israel
cannot be managed as a brand – chiefly those on the radical left. They will say that
Israel’s image will not change until it engages in an appropriate political process
involving concessions. In contrast, those on the radical right may say: “What do we
care what the goyim (non-Jews) think? – we must keep faith with our heritage”. Yet
even a storm-tossed ship needs someone to man the helm and prevent shipwreck.
Even in time of media crisis, even when there is protracted political conflict, optimal
management can ameliorate outcomes. A well-managed crisis does not make
headlines.
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What can we learn from nation branding According to researchers, support and
preference for a nation brand can be measured by six parameters: (1) a country’s
attractiveness as a tourist destination; (2) the perceived quality of its industrial
exports; (3) the image of its government and administration; (4) its ability to attract
investments and immigrants; (5) its culture and heritage; and (6) the overseas image
of its inhabitants.

What can we assume about the Israel brand Israel has never been considered an
attractive tourist destination. Even in the 1990s, a time of record tourist entries, fewer
tourists than expected came from the country’s natural market share of global tourism.
Israel was unsuccessful in competing against neighboring countries like Greece,
Turkey, Egypt and Tunisia. There was nothing unique about Israel’s tourist brand,
despite the country’s wealth of natural assets: the Dead Sea, the Mediterranean shore,
archaeological and historic sites. To illustrate, over the years, Eilat has learned to
market itself abroad as if it were unrelated to Israel. Israel’s hotels have always been
too expensive. Taxi drivers are rude to foreigners. Tight border controls and
painstaking, comprehensive security checks are a deterrent. When people hear
“Israel”, they think of Jerusalem and its golden Dome of the Rock. Ironically, of
course, the Mosque of Omar is not part of Israel’s heritage.

Once upon a time, Jaffa oranges were Israel’s prime agricultural export; today, young
people abroad may never have heard of them. Foreigners know little about Israeli
industry, although the country’s hi-tech sector has emitted a few sparks of brilliance.
However, many hi-tech companies have wisely dissociated themselves from Israel’s
problematic image, as witnessed by their names – which are not in Hebrew. Some of
those that are about to be traded on NASDAQ have even relocated beyond Israel’s
borders.

Israel’s government administration receives an ever-increasing number of bad

headlines. Clearly, the Palestinians and the Arab states have succeeded in equating
Zionism with racism, showing the Israeli tank looming over the Palestinian child,
describing the IDF as an occupying army and, most recently, portraying Israel as an
apartheid state. These depictions have penetrated the world’s consciousness. Even
being the only democracy in the Middle East no longer stands to Israel’s credit. The
assets ascribed to Israel at its establishment seem to have vanished. Disengagement
from the Gaza Strip aroused the expectation that Israel’s international image would
improve. However, as marketing research has shown, negative messages are far more
potent than positive ones.
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Israel does not easily attract foreign investments, because international experts assume
that a country at the mercy of terrorist attacks and security problems is not a good bet
for investors seeking a safe haven for their money. Moreover, especially in the hi-tech
sector, Israel faces tough competition for investments from India, whose highly
professional engineers can be paid comparatively low salaries.

Furthermore, no real effort has been made to promote Israeli cinema, theater,
literature, music, dance or art. Israel’s sports successes have been limited. Neither has
it broken any boundaries in culinary arts or fashion.

As for Israel’s residents, the sabra’s image as being “prickly on the outside and soft
on the inside” is not much help. Moreover, it is usually the “ugly Israeli” who is
encountered abroad. Lastly, the image of the Israeli soldier – applicable to almost
everyone, given Israel’s citizens’ army – is hardly pristine.

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Website: www.mindspace.co.il
Contact: rommey@mindspace.co.il