Top 10 airline brands for 2012


Skytrax, the UK based research company that specialises in research for commercial airlines, has just announced the winners of the world airline award for 2012.

Skytrax parent company, Inflight Research Services work has been used by the UK government to determine the UK government policies on air transport.

The Skytrax Awards are one of the benchmarking tools for the air industry. They measure passengers’ satisfaction levels by surveying passengers in all cabin classes.

The award is announced after a 10 month telephone survey with 18 million airline customers from 100 countries. That’s right, 18 million airline customers from 100 countries. This must be one of the largest surveys ever attempted.

That’s 1.8 million participants a month or based on a 20 day working month, its 90,000 calls per day which equates to, assuming an 8 hour day, 11,250 calls an hour! Many of which are international, in different languages and probably, if they use my carrier, many of the calls cut off half way through the conversation.

I’ve managed some large brand audits that required a lot of calls but not 18 million in 10 months! So Skytrax should be commended for managing such a logistical nightmare. But I digress.

As I mentioned, the survey takes 10 months and covers 200 airlines, both domestic and large international airlines. The survey measures standards across 38 key performance indicators of airline front line product and services.

The study focuses on customer satisfaction related to experiences right across all touch points including check-in, boarding, onboard seat comfort, cabin cleanliness, food, beverages, in-flight entertainment and staff service.

According to the World Airline Awards website, product and Service factors ranked by customers
in the survey included the following elements:

GROUND/AIRPORT
Standard of Airline web site
Online Booking service
Online check-in services
Airport Ticket Counters
Waiting times at Check-in
Quality of Check-in service
Self Check-in options
Boarding Procedures
Pre-boarding for families
Friendliness of Ground staff
Efficiency of Ground Staff
Transfer services
Arrival services
Baggage Delivery
Handling Delays

ONBOARD: PRODUCT
Cabin Seat comfort
Cabin Cleanliness
Toilet Cleanliness
Cabin Lighting / Ambience
Cabin Temperatures
Cabin Comfort amenities
Reading Materials
Airline magazine
Inflight Entertainment standards
Audio/Movie programming
Audio Video on demand (AVOD) options
Quality of Meals
Quantity of Food served
Meal Choices
Selection of Drinks/Pay bar formats

ONBOARD: STAFF SERVICE
Assistance during Boarding
Friendliness of Staff
Service Attentiveness/Efficiency
Consistency of Service across different flights
Staff Language skills
Meal service efficiency
Availability thru Flight/Cabin presence
PA announcements
Assisting families with children
Problem solving Skills
General Staff Attitudes
Staff Grooming

This is an enourmously complex project and it doesn’t end there. Follow up research includes back up interviews and the data is weighted to ‘provide nomination equity when evaluating airlines of different size.’

Anyway after all that, here is the list of the top 10 airlines for 2012

The World’s Best Airlines 2012

1. Qatar Airways
2. Asiana Airlines
3. Singapore Airlines
4. Cathay Pacific Airways
5. ANA All Nippon Airways
6. Etihad Airways
7. Turkish Airlines
8. Emirates
9. Thai Airways
10. Malaysia Airlines

It is interesting to note that 6 of the top ten are Asian brands and the other 4 are Middle Eastern Brands.

Looking back over the last 10 years, the list has always been dominated by Asian and Middle Eastern brands. With the exception of 2006 When British Airways came first, no European Airline has ever appeared in the top 3.

New BMW 6 series


The Malaysian Automotive Association has forecast total vehicle sales in Malaysia will be 615,000 units in 2012, up 2.5% over 2011. If this figure is reached it will be a record for Asia’s largest passenger car market.

This bullish forecast for 2012 is despite the fact that vehicle sales in Q1/2012 dipped 12.6% to 138,544 units from 158,432 units in Q1/2011.

Various reasons have been put forward to explain the drop in Q1 including the Lunar New Year and new credit policies. I was under the impression the Lunar New Year was an annual event and always in the first quarter so I don’t know how that would be a problem this year.

Personally, I think the main reason for the Q1 drop is that the global economic situation is having an impact on the number of loans approved by local banks wary of a repeat of the Asian financial crisis of 1998.

Whatever the reasons, it is good to see that BMW is doing what it can to sell its new six series with an extensive digital campaign.

I clicked on the link and was pleased to learn that the Bavarian giant will be offering wheels with the new 4 door coupe.

The BMW 6 series coupe, now sold with wheels

This should help increase sales for 2012.

Destination branding for small cities


Back in 2007, Destination Branding consultant Bill Baker released one of the best ‘how to’ books for city branding practitioners, mayors, planners, governors and anyone else tasked with or interested in the branding of cities.

‘Destination Branding for Small Cities: The Essentials for Successful Place Branding’ was so successful that he has updated it and you can find the updated version on amazon here

Bill Baker, defining the city branding process from the trenches

Bill understands better than most that city branding is much more than a logo, tag line or a communications exercise. With more than 30 years experience branding destinations, Bill outlines and explains the complexities of developing a place brand, the research needed, the stakeholders involved and the importance of developing a well defined strategy.

With plenty of case studies and comments from other practitioners (My contribution is below), this book should be required reading not only of practioners and government servants but also of students of marketing and branding.

Here’s my contribution to the book:
Singapore and Hong Kong have built internationally respected brands. This was achieved not by using creative taglines or cool advertising campaigns, but through their holistic approach to the process of branding.

Other Asian cities can benefit by emulating their practices through a better understanding of the elements required to build a destination brand and by having a more customer-centered approach.

Unfortunately, when it comes to destination branding, too many Asian cities have a top-down focus with a fixation on taglines or a brand essence or a one size fits all communications campaign that develops what it thinks is an interesting message that tries to speak to everyone, but really speak to no one.

As an example, in an attempt to boost tourism, the State government of Perak in Malaysia announced that the state capital, Ipoh would be known as the ‘City of White Coffee’.

Ipoh – city of white coffee. Would this tempt you to visit Ipoh?

A State executive said at the time, “Ipoh should have its own identity and branding just like Shenzhen (China) that is known as the “Shoe City” and Paris which has long been known as the “City of Fashion”. This shows a lack of understanding of what is destination branding and is an unrealistic expectation and hardly a concept to drive significant tourism growth.

I wrote an article about how to brand Ipoh, a beautiful city with massive potential and only a couple of hours north of Kuala Lumpur at the end of 2010. You can read the article here.

Similarly, the large Indonesian city of Surabaya has developed the tagline, ‘Sparkling Surabaya’ in an attempt to communicate the sparkling of the city as a centre for jewelry.

Surubaya tagline

In addition to being rather naive, the idea was controversial because citizens felt that the concept did not fully represent their city. A more thorough branding process might have helped avoid this situation.

On the other hand, the branding of the city of Zamboanga in the Philippines as ‘Asia’s Latin City’ has gained wide endorsement because it speaks well to the city’s culture and strong Latin influence, and appeals to external audiences as well.

The globally accepted principles of place branding are certainly valid in Asia however, the level of their application is very patchy at best.

Few demonstrate what can be considered ‘best practice’, and too many are influenced by basic misunderstandings concerning the practice and processes required, and how a city brand should be communicated and perform.

In general, too many see city branding as simply a tourism driven creative advertising campaign or a new slogan pushed out across traditional media.

British luxury Brands need to take notice of Malaysia


Despite, or because of tough global economic conditions, the retail sector in Malaysia appears in rude health. Development of new malls continues at a phenomenal pace with at least 3,500,000 square foot of additional retail space becoming ready this year in the Klang Valley alone. This will bring the total amount of retail space in the Klang Valley up to about 55 million square feet.

Passing almost unnoticed is the proliferation of international luxury brands in many of those malls. Familiar international names such as Giorgio Armani, Prada, TOD’s, Van Cleef and Arpels to name but a few, have all entered the local market in recent years, encouraged by the success of exclusive names such as Bulgari, Cartier, Hermes, Louis Vuitton, Rolex and other famous names long familiar to Kuala Lumpur shoppers.

Established luxury brands in Malaysia

Unusually for a Malaysian mall, The Pavilion has clustered its luxury boutiques into a high profile area facing Bukit Bintang. Globally, this clustering of stores is nothing new.

For centuries stores have organized themselves into districts based on what they sell – think Saville Row in London (tailors), Faubourg Saint-Honore in Paris (designer boutiques) and Deira in Dubai (jewelry).

Clustering similar stores in the same location is not a new concept

The cluster approach allows the rich and famous to be surreptitiously dropped off in front of a mall, rush in and make a purchase that would make a small African country drool and then rush out into the safety of the limousine without having to rub shoulders with us mere mortals.

With its double story street facing façade the luxury section or ‘couture precinct’ of the Pavilion was an exciting development in the evolution of the retail sector in Malaysia.

A section of the luxury couture precinct at Pavilion Kuala Lumpur

Just across the road, Star Hill Gallery has battled gamely to become a luxury mall with an eclectic mix of exclusive boutiques and lifestyle outlets. Meanwhile, over at Sentral, the Gardens, after a slow start has attracted one or two luxury brands.

The KLCC mall, at the base of the Petronas Twin Towers on the site of the former Selangor turf club had a rough start but has since attracted a number of luxury brands including Jimmy Choo and Chanel but has traditionally preferred them to be scattered throughout the mall.

However this has changed with the new extension that features a new Giorgio Armani store that also has an Armani Cafe as well as new Chanel and Cartier stores.

One thing all these malls have in common is a distinct lack of luxury British Brands. Sure there are some – most recently Anya Hindmarch and Thomas Pink, Burberry and Aquascutum made the move a few years ago but considering the long association with Britain and the importance of the luxury segment, there aren’t too many.

Thomas Pink opened in Kuala Lumpur in 2008 and now has one store at Pavilion

According to the ten best, the ten best British brands are:

1. Rigby & Peller: A family-run lingerie and corsetry firm awarded a Royal Warrant in 1960. It has a sterling reputation for expert bra fittings and beautiful designer swimwear and lingerie and a made-to-measure service.
2. Burberry: Famous for the iconic trenchcoat, this classic British company revels in its distinctly British attitude. Founded in 1856, the company’s core values are luxury, quality and timeless style, expressed in a modern way.
3. Mulberry: Luxury English fashion, “inspired by the cool of the city and the craft of the countryside”, is Mulberry’s speciality.
4. Barbour: Boasting three Royal warrants, Barbour is that rare entity, a family-owned, women run company. Since 1894, when it was established to provide waterproof oilskin jackets to sailors and dockyard workers in South Shields, this quintessentially British brand has created durable country-style clothes with impeccable attention to detail. Its wax jackets are known to last a lifetime.
5. Aspinal of London : This 10 year old company, or should I say upstart is dedicated to producing impeccably high quality and beautifully designed handmade leather products that draw much from traditional craftsmanship.
6. Asprey: Asprey has employed the best craftsmen to design and the best materials to produce exceptional jewellery, leather goods, silverware, homewares and timepieces since 1871.
7. Smythson: Frank Smythson opened his first shop in 1887, selling exquisite stationery and leather goods. In the digital age, the shop’s collection of beautiful diaries, handbags, purses, wallets and stationery continue to be in demand.
8. Aquascutum: Wonderfully understated British elegance at its best. Famous for inventing waterproof cloth and the raincoat, the company makes clothes that combine fine craftsmanship with luxurious tailoring.
9. Dunhill: Alfred Dunhill’s legacy continues to cater for the discerning man who wants to wear elegant clothing and fine fragrances and match it with luxury kit such as pens, lighters and timepieces.
10. Loake: Family-owned since it was established in 1880 and with a Royal warrant from the Queen, this quintessentially English boot maker employs traditional craftsmanship to produce fine, handmade footwear for men.

Of these distinctly British retail brands, only Burberry, Aquascutum and Dunhill are here. Of course there are some pretenders to this list who have set up in KL, notably Thomas Pink and Anya Hindmarch but we’re still a little light on British luxury brands.

Anya Hindmarch is a relative newcomer to the Malaysia luxury scene

Which is surprising really because although the United States remains the world’s largest consumer of luxury products (by a country mile), burgeoning middle classes in developing countries are creating new opportunities for luxury goods providers.

According to the MasterCard Worldwide Insight report, the value of the market for luxury products and services in the Asia Pacific region will be US$258.7 billion in 2016, up from US$83.3 billion in 2007. Not a bad category.

What’s more, there’s already a ready made market because the largest number of tourist arrivals to Malaysia is from ASEAN countries, followed by Japan and China with India and the Middle East not far behind. And the burgeoning middle classes from these countries are notoriously brand conscious.

And this interest almost obsession with brands is likely to continue according to Radha Chadha, author of “The cult of the luxury brand”. She believes that the Asian interest in luxury products is because of the massive changes – social, cultural, economic and political – that have been affected by the traditional attitudes to who you are and where you are in the societal food chain.

She believes that over the past 50 or so years, many of the traditional cultural indicators of social standing in Asia – profession, family, clan, caste have been eroded by the onset of globalization, migration and education.

Free of rigid social hierarchies, mass migration and the development of urban areas, more people are making money and making it faster. The way to differentiate oneself is by purchasing a luxury product that shouted, “I’ve got money, respect me.”

Displaying one’s status through outward appearances of rank and wealth is nothing new but Asians seem to have taken to it like the proverbial duck to water.

And those LV bags, Chanel suits, Jimmy Choo shoes aren’t simple female indulgences, they are part of a new world order that identifies the wearers position in society. Indeed, these luxury brands are a modern set of symbols that Asian consumers are using to redefine their identity and social position.

Jimmy Choo, technically a British brand

The Japanese have been devouring brands for years. 94% of Japanese women in their twenties own a Louis Vuitton bag. Visit the Louis Vuitton shop on Bukit Bintang and the chances are you will see a group of Japanese shoppers being fussed over by staff.

Asia now accounts for a third of Louis Vuitton sales worldwide whilst Cartier depends on the region for half of its worldwide sales.

Louis Vuitton achieved organic revenue growth of 12% in 2012, mainly due to demand from Asia

And what of China? According to the China Brand Strategy Association, 250 million Chinese people can now afford to buy luxury products, up from 175 million 3 years ago.

Already, Chinese consumers are responsible for about US$10 billion of global luxury sales. According to McKinsey, that figure is expected to grow to US$27 billion in 2015, accounting for about 20% of global luxury sales.

And although a lot of those Chinese are travelling to Europe, only 147,000 Chinese visited the UK in 2011, compared with 1,250,000 who visited Malaysia in the same year.

But it is not only the Chinese who are buying luxury products. Indians and consumers from the Middle East, are prepared to splash out on high-end goods and will often save for months to buy an expensive handbag. And Malaysia is on the radar of more visitors from these countries.

So as traditional European and US markets stumble through the economic quagmire, the time is ripe for luxury British brands to establish themselves not in the UK, but in Malaysia and use it as a gateway to developing markets.

The new Malaysia Airlines Brand identity is stunning


Malaysia Airlines has had a torrid couple of years. Bitter court cases and weak management have led to record losses and low morale which in turn have caused the reputation of the brand to diminish in the eyes of the vast majority of Malaysians and other stakeholders.

All this despite huge sums spent on global positioning strategies using one size fits all advertising and other marketing broadcast across traditional channels.

However, in a couple of weeks time the beleaguered national carrier, once considered one of the finest airlines in the world will start scheduled flights of its new Airbus A380 on the potentially lucrative Kuala Lumpur – London – Kuala Lumpur sector.

The new look Malaysia Airlines identity

Looking at the press images, it is hard not to miss the beautiful new identity of the aircraft. Personally I think the new look is stunning – bold colours, sweeping lines, very contemporary yet true to Malaysia’s heritage.

Although there were discussions late last year about new uniforms, I haven’t seen any official announcements to confirm it but one can only assume this new identity will also be reflected in the uniforms of the A380 cabin crew and throughout the rest of the airline as well as in all the collaterals, training of the staff and across all the other brand touchpoints.

The Malaysia Airlines cabin crew uniform has hardly changed since it was introduced in 1982

After all, it wouldn’t make sense to create a new identity for a new plane without integrating it across the whole organisation, right?

Bentley looks to extend its brand


At the Geneva Auto show in March 2012, the ultra luxury automotive brand Bentley admitted it was considering adding a luxury SUV to its range of vehicles.

A month later at the Beijing Auto show the CEO announced that the firm expects to sell 3,000 of the SUV annually once production starts in 2015.

You have to admire the speed at which they make decisions at Bentley, especially as they also showcased a blue concept car and introduced a range of models, from a 4.0 liter V8 twin turbo to a 6.0 liter W-12 monster at the Beijing event.

Bentley is on a roll at the moment and has just reported 37% increase in sales in 2011 with China driving demand. Crucially, this upsurge in sales helped the brand become profitable for the first time since 2008.

At the Beijing event the CEO also announced that the target market for the SUV was the developed SUV markets of the US, UK and China. Bearing in mind the first two are reining in spending and will be doing so for about the next 20 years, one would imagine that with the exception of a couple of US based rap artists, China alone will drive demand for this new SUV.

Which is probably why the company took the unprecedented step of asking Chinese users of Facebook and China’s most popular Twitter like platform Sina Weibo what they thought of the SUV concept.

The Bentley Weibo page (Is that a typo at the top right?)

Questions asked were related to the design and the interior and opinions on what sort of engine should be used and whether or not Bentley should actually launch the SUV.

Other general questions are asked about driving and vehicles. Incentives for completing the survey are wallpaper for a mobile device or computer.

The Bentley SUV seeks data

Crowdsourcing is nothing new but bearing in mind that the firm has already announced the launch of the car and the models and the nature of the questions, it is questionable how this particular data will be used to drive the brand forward.

Nevertheless, despite the unusual research methodology, it makes sense for Bentley to go down this path. After all, the luxury SUV segment revived the fortunes of other automotive companies such as Porsche.

Porsche, previously known as a manufacturer of high performance sports cars, made the SUV move in the mid 1990s after years of stagnant sales following the stock market crash of 1987.

Since then, the Porsche Cayenne has become their best selling automobile ever and despite the global economic uncertainty, global sales are expected to rise 40% to over 52,000 vehicles by 2017.

Back in 2003 Porsche sold a meagre 138 cars in the whole of China. By 2011, Porsche was selling 8,629 units of the Cayenne alone, making it the Stuttgart company’s largest market for the SUV.

In 2009, Cayenne sales represented 83% of Porsche sales in China. With each Cayenne costing up to US$300,000, that’s not a bad business to be in.

The Porsche Cayanne responsible for 87% of Porsche sales in China

Purists argue that the core brand – that of the two seater, meaty, macho sports car – is being diluted but with luxury and performance still core attributes, this is a weak argument, especially as Porsche continues to build the SUVs in Germany.

Range Rover is another luxury SUV manufacturer that is seeing record sales in China. Last year the company sold 50,994 vehicles in China, a remarkable 76% increase over the previous year. However Range Rover is also seeing significant growth in Europe where sales are up in Russia, France and Germany and even Spain has seen an 18% increase in sales despite the recession.

The recent success of the Range Rover Evoque has encouraged Porsche to launch a smaller SUV called the Macan in 2013.

The Lamborghini Urus, coming your way soon

So with Range Rover and Porsche already entrenched in the China market and with Lamborghini due to launch a luxury SUV (the Urus) by 2017, it makes sense for Bentley to extend the brand.

Branding, corporate or political, is an organisational issue


One of the problems faced by brands and branding are the attempts to simplify it. Fortuitously this approach has yet to gain traction with the aviation industry!

The business of building brands takes time. And as the business of brands and branding has evolved and the waters have become increasingly muddied, the only constant has been the influence consumers now have over the success or failure of brands.

As a result, the role of the brand manager is increasingly irrelevant because her attempts to control everything related to the brand are obsolete and pointless because consumers are crafting the messages that are heard not the marketing department or the advertising agency.

These are lessons that need to be learned in the political space as well. In Malaysia, the Prime Minister DS Najib Razak has a powerful personal brand but he cannot be expected to single handedly win an election. The key is to get all the other elements on brand. And anyway, as Tun Abdullah Badawi knows too well, a high approval rating is no guarantee of a big election win.

Historically, creating clearly defined messages and broadcasting them across traditional media was enough to build a brand or political party but today, this model alone, can no longer be relied on to educate, inform and convince.

Today, the first thing a consumer will do, assuming they hear the message through all the clutter, will be to determine if the message fits in with their own experiences. If it doesn’t, they will discard the message immediately. Secondly, consumers will discuss the message with others who they know and respect and explore their experiences and perceptions. Thirdly, consumers will seek the opinions of those they may not know. This is normally done across social media.

Only once consumers have absorbed all the information will they make a decision. If the promises defined by the organisation, whether it be a political or corporate one do not match the consumers own experiences or those of her friends or acquaintences, the message will be discarded. No matter how much money is spent.

If the response is favourable, the consumer may seek to experience a physical interaction with the brand, perhaps through a retail outlet, website or political rally. If any of these experiences are negative, the consumer will walk away from the brand, and it will take a superhuman effort to get them back.

A brand, whether political or business, requires every division, department, individual – from the tea lady to the CEO, or from the branch leader to the state leader to the divisional leader etc – to know and understand what they have to do to achieve clear strategic goals.

Only then will the brand survive and thrive.

General Motors cancels Facebook advertising campaigns


A fellow branding professional who I respect a lot sent me this link to an article on Forbes.

It’s a fascinating story on a number of levels. General Motors (GM) has been very supportive of Facebook, spending in the region of US$40 million per year on marketing with the site, US$10 million of which was on paid advertising. However, the article says that GM will no longer spend the US$10 million on marketing but it remains heavily committed to using the site to engage consumers.

Advertisers such as GM have been key to driving up FB user revenue which is about US$9.51 per user in the U.S, compared to US$4.86 in Europe US$1.79 in Asia. Total revenue from advertising in 1Q2012 was about US$870 million so the US$10 million annual spend from GM will hardly register.

For the record, GM is one of the top three U.S. advertisers and according to adage, the firm spent US$2.8billion domestically and US$3.9billion globally on advertising in 2010.

The first time I read the story, I thought it reflected badly on FB but then I read it again and believe reflects well on Facebook but reflects badly on advertising.

The channel (FB) is alright and the content is working but the medium (advertising) is ignored by Facebook users and this is something we’ve actually known for a long time – consumers are rejecting traditional forms of advertising. What we didn’t know was that they are also doing this online.

But as Facebook goes to IPO, it does make one wonder how it can monotise those 900 million users. Having said that, I also read that Ford is ramping up it’s Facebook advertising.

On another note, I noticed this digital ad for a GM brand on a Malaysian news site! Note that it is for making purchases in the USA. Not much good to us in Malaysia! Perhaps the issue isn’t FB, it’s the targetting!

Could Yuna be the face of the Malaysia Nation Brand?


It takes multiple initiatives across multiple platforms to build a Nation Brand.

And some, no many of those initiatives will require more attention than others.

And some initiatives will take root and grow immediately whilst others may take time to thrive. Many more will require a significant investment in time, money and energy and still fail.

And many of these initiatives will be individual efforts that form no part of the Nation Brand strategy yet will play an important role in the development of the Nation Brand and therefore must be integrated into the Nation Brand plan to be leveraged effectively so that the Brand grows.

The Malaysian prime minister has set up a department tasked with building the Malaysia Nation Brand. I mapped out ten Nation Branding principles here.

As the department embarks on this daunting task they will uncover little surprises that will help them build the Malaysia Nation Brand. One such surprise is a singer called Yuna who comes from Alor Setar in the northern Malaysian state of Kedah.

Could Yuna be the contemporary cultural icon Malaysia needs?
Could this be the face of the Malaysia Nation Brand?

The diminutive Malay singer/songwriter has a wonderfully natural sound that reminds me of an early Sade. Her music is simple, her lyrics are a touch naive and she doesn’t quite feel what she sings and is still a bit self conscious but she has obvious talent. With the right songwriting collaborations, it won’t be long before her songs feature on late night Hed Kandi CDs and are forming the backdrop to romantic encounters.

Yesterday Yuna appeared on Conan in the US. Conan is the most watched chat show in the US with over 4 million viewers. Crucially most of them are in the 18 – 33 range which will no doubt be most likely to buy this music and travel to Malaysia. But it will still be hard for her to break into the US and other international markets. To do so, she’ll need a lot of marketing dollars to help her succeed.

Yuna appears on Conan

I know that the Malaysia Nation Brand team are not yet in the implementation stage but to be successful they will need to be loose, flexible and adaptive. In addition to appearing in front of 4 million viewers on Conan, Yuna has 360,000 followers on Twitter and over 1,1000,000 likes on Facebook. She is a star in the making and working with Yuna will be a great opportunity to give Malaysia a foothold on the contemporary cultural stage.

Yuna’s new album is out on 24th April.

You can listen to more of her music here.

Yuna has undoubted talent and can become an ambassador for the Malaysia Nation Brand. She won’t build it on her own but she can make a considerable contribution to its success.

10 Principles to build the Malaysia Nation Brand


Minister in the Prime Minister’s department, Datuk Seri Idris Jala announced yesterday that the Prime Minister, Datuk Sri Najib Razak has a team in place and they are working full time to create a national brand for Malaysia.

Datuk Seri Idris said that the brand would involve Malaysian perspectives on national policy as well as the pattern of behaviour of Malaysians. He was quoted as saying, “If we can align these, then we can have a national brand”.

It is good to note that Datuk Seri Idris isn’t suggesting PR and advertising will drive the process. However, I don’t quite know what he means by “the brand would involve Malaysian perspectives on national policy…”, but I am sure he knows what he is doing.

One concern I have is that his statement might give some people the impression that building a Nation Brand is a relatively simple process and that it can be managed and controlled by internal forces.

Whilst the behaviour of Malaysians will have a distinct bearing on the success of a Malaysian Nation Brand, the process will also require significant investment in many other areas, many of which cannot be controlled by internal forces.

And as mentioned above and repeated later, Nation Branding is not a communications process. We cannot convince potential investors or tourists that Malaysia is the place to invest in, move to or visit.

We can influence the reputation of the country by building relationships and delivering on promises – multiple promises to multiple sectors – but we will never convince anyone of anything.

To help the PM and his team develop the Nation Brand, I’ve come up with ten key principles for a strategic Nation branding initiative. Although there isn’t a standard formula for building a Nation Brand because of course they all start from a different place, these principles will help form the foundations of any Nation brand strategy.

The same model should also be applied to government ministries, departments and agencies. And of course, these stakeholders should also form part of the internal element of any Nation Brand initiative.

• Nation Branding is a collaborative process
The best news to come out of Malaysia is that the Prime Minister is driving this initiative because without the CEOs buy in, any branding initiative is doomed. His involvement makes a statement to all those who will be involved that this is very important.

But the PM will need assistance from government representatives in each of the states and from other stakeholders. Most successful destination branding initiatives come from situations where key constituents move beyond turf protection/building, put aside their political affiliations and step out of their comfort zone and show some originality and courage.

Nation branding is difficult, requiring planning, support and coordination from a wide array of public and private entities. But even the best plan in the world will not succeed without buy-in from Nation brand stakeholders.

The most important step to ensuring buy-in is involvement in the research and planning process. As much as possible, brand stakeholders that are involved in implementation must have the opportunity to add their input to the plan.

Such buy-in has two advantages. First, it allows valuable perspectives and experiences to be incorporated into the plan, making the brand plan stronger and more effective.

Next, it facilitates better, more effective execution. If all the parties involved have a complete understanding of the entire plan and their role in it and what its success means to them, then redundant efforts can be avoided and resources maximized.

(I didn’t say this was going to be easy!)

• Research and data are fundamental
Sadly too many Nations (and companies) see Branding as a creative driven process of repetitively pushing government defined tourism and other messages out across traditional media, ad infinitum. The hope is that the message will resonate with someone or enough ‘someones’ to make it worthwhile.

Historically, this process has been the responsibility of the tourism board with support from other departments/agencies such as the agency responsible for inward investment and the Foreign Affairs Ministry.

Often the tourist board drives the Nation Brand

The tourism board delivers its message with a combination of slick, well-produced communications across mainly traditional media, PR and familiarization trips, trade shows and other trade related initiatives.

But just because the concept of carpet-bombing consumers with slickly produced commercials and PR messages worked (although this is contentious) for athletic shoes, automobiles, breakfast cereals and toothpaste in the mass economy (which incidentally no longer exists) of the post war years, doesn’t mean it is the way forward for the Malaysia Nation Brand.

Now, more than ever, step two in the Nation Branding process must include extensive qualitative and quantitative research with multiple stakeholders, both internal and external and from previously identified sectors.

Without research and data, branding decisions are no more than guesswork and the Malaysia Nation Brand is too important to base strategic decisions (or, any decisions) on guesswork.

The right research is vital for uncovering perceptions, attitudes and requirements for emotional, experiential and economic value, the three key elements of a successful Nation brand. Research also provides benchmarks for measurement and accountability.

Most perceptions about countries have been formed long ago but they can be changed, despite what Simon Anholt says! But the way they are changed in America will require a very different approach to the way they are changed in France, UK or Germany.

And of course the requirements for value of an automotive manufacturer from Detroit looking for an Asian country to set up a manufacturing base, will be very different to the value requirements of a financial institution from the city of London.

You’ll also need to know what target industries/segments think of you and also what they want from you, who/where they get their information from and what are their hot buttons.

It will be tempting to develop a common approach for these and other targetted yet diverse industries, but the reality is that each one will require information that is different and therefore more emphasis will have to be placed on relationship building than any communications.

The research will also allow you to identify what firms or institutions you should be going after and which ones you should not. And this is where the balance between the Nation Brand and the immediate success factors critical to political survival become entwined.

Because some industries are more attractive than others but if a firm from a controversial industry waves a couple of billion dollars in your face, the short term political benefits maybe significant but the long term branding benefits may be few, if any.

Of course it will require a very brave CEO to eschew those short-term political benefits for the long term benefit of the Nation. But such decisions will have to be made and to make them more palatable, they must be leveraged effectively for the benefit of the official and the government of the day.

• It is impossible for a Nation Brand to reach its greatest potential using creativity alone
Too much is at stake – both in terms of a country’s brand and resources invested – to depend on a creative-driven branding campaign (and that’s all it is because it is impossible to sustain) to form the foundations of your brand.

Furthermore, a creative campaign is best suited for mass markets and mass media – we’re back to running shoes, shampoo and so on.

Consumers are being inundated with so many messages they've stopped listening

Think of a TV commercial for a country or enterprise zone (you probably won’t be able to remember any, even if you are looking for one). They all say pretty much the same thing – how good the accessibility is, how great the country is, how special/unique their incentives are, how well educated their talent pool is, how extensive is their public transport system and so on.

But the reality is that if you are looking for somewhere to relocate to, the first thing you will do is get on the Internet and use a search engine to explore options.

Increasingly, the information you review will come from consumer generated media across social media platforms. It doesn’t matter how much a country spends on a cool logo or pushing a creative driven message out across traditional media, prospects will still go to the Internet and look for real world experiences.

Another issue I have with the creative driven approach is that it is essentially an acquisition driven model and doesn’t take into account existing prospects and investors.

But most damning of all, this approach leaves the strategy for the Nation in the hands of the advertising agency not in the hands of the CEO and executive management.

• Plan your work and work your plan
Once you have carried out your research and aligned your stakeholders, you can start to map out a Nation Brand plan that will not only form the foundations of attempts to drive the brand forward but also be the glue that keeps stakeholders together.

The world is loose, more fluid and more collaborative than ever before. And you have less control over the Nation Brand than ever before but that doesn’t mean you should forgo a well-researched brand plan and let consumers define your brand. In fact the plan is more important than ever as it serves as a blueprint for all stakeholders to adhere to.

Specifically, the Malaysia Nation Brand plan must communicate a positive and dynamic personality with economic, experiential and emotional values that reflect target audience requirements.

The brand plan must be holistic and comprehensive to enhance export promotion, economic development, tourism, foreign direct investment and other key national initiatives.

It must also communicate the intended message to the target constituents and stakeholders in multiple countries and at the same time, it must lay guidelines to strengthen the strategic, communications and visual impact of the Nation Brand.

The blueprint must also systemically connect the Nation Brand to the country’s core industries, corporate brands and Small and Medium Enterprise (SME) sector brands (more on SMEs later).

This must be established via a systematic, holistic process that accommodates the requirements of both national and international stakeholders. This process must not only be effective to optimize the Malaysia Nation Brand, but also maximize limited national resources.

But be flexible and open to the implementation of the plan. Let events influence the plan and be ready to adapt to events and opportunities.

• The essence of the Malaysia Nation Brand is more important than the brand guidelines so beloved of advertising agencies
It is common practice for companies to spend a great deal of money and time producing, communicating and training personnel about brand guidelines and how to police those brand guidelines.

What they really should be doing is spending those resources on building and nurturing a national appreciation and understanding of the brand and what it stands for, and developing a culture that will deliver a consistent brand across all touch points.

A great example is the South West of England that spent more offering free customer engagement and relationship training to key visitor facing companies than it did on advertising.

• Segmentation enables differentiation
Despite, or because of the power and sweep of globalization, which has Malaysians wearing the same fashions as Italians and Aston Martins in hot demand from Brazil to India and China, each country has its own requirements and world-views.

Once research has revealed the differing characteristics of various audiences, branding must be devoted to tailoring messages, media, channels and activities to the specific values and requirements of target markets.

Such segmentation not only ensures more receptive targets but also easily ensures differentiation from competitive countries trying to be all things to all people.

Social media and the voice of the consumer will drive online discussion and it is imperative that a social media strategy is initiated and integrated with the brand plan.

But communications are not enough. Relationships will be the key to successful development of a Malaysia Nation Brand. The successful implementation of these relationships will require unique and diverse talents that will be able to go out and sell the country. And it is important to match the right level of personnel with the prospects.

• Nation branding is a marathon, not a sprint
There is no quick win or quick fixes in any branding and this applies especially to Nation branding. Even in these technology driven times, establishing a Nation brand may take as long as a generation to develop.

For example, the current view of Japan as a nation famed for its precision and electronics is not based on its weak economic performance over the last decade. Rather, the seeds of Japan’s current nation brand were planted more than thirty years ago, when it began exporting transistor radios and two-cycle engines overseas.

But because it invested heavily in the development of the Japan Nation Brand, it has withstood the effects of the ‘lost decade’ and in fact, many argue that the Japan brand has improved, despite the economic impact of that lost decade and the terrible Tsunami of 2011.

Just as Malaysia launched its Vision 2020 program in 1991 to become a developed nation by 2020, the country must adopt a similar long-term view for Nation branding. Malaysia must look at establishing a Nation brand not for us – but for our children.

The good news is that signs of improvement and the benefits of investing in the Nation Brand development process can be enjoyed more quickly as witnessed by countries such as Croatia, Slovenia and to a lesser extent, Bosnia. These countries have invested heavily in research, product development, training and communications and as a result are building promising Nation Brands.

• The private sector, and in particular SMEs must carry its weight
The Government of Malaysia has tried to develop policies and funding and other resource allocation for SMEs to build brands. The Brand Promotion Grant was one such initiative.

However what would work better for the SMEs would be Brand development grants because Malaysian SMEs, supposedly responsible for as much as 97% of the economy, need to build brands before they can promote them.

The Malaysian government has tried to do a lot for the Nation brand – but it cannot do it alone. The private sector and SMEs need to start pulling their weight.

One way of doing this that would also generate a lot of positive publicity for the government would be to commission a reality TV programme that looks to find 25, 50 or 100 companies with the potential to make it globally.

Every season viewers vote for the SME they think has the most potential and the winner is given the opportunity and significant resources to become a global brand.

This would give SMEs a clear roadmap to success and fast track ‘country of origin’ development for Malaysian products.

Global sporting events will also help to build the Malaysia Nation Brand. It is probably not the right time to suggest Malaysia host the Olympics (although personally, I think Malaysia should be exploring the possibility of co-hosting the event with Indonesia. This would also do wonders for relationships with its neighbour).

Other private sector initiatives can range from promoting country of origin on foods and industrial goods, as Australia has done, to helping to fund trade missions to even good business ethics.

Tourism shouldn’t be neglected but if there is a strategy, it needs to be reviewed because current communications are very tactical and fall into the ‘me too’ category with little differentiation from competitors.

1Malaysia is a good concept but it needs more structure and strategy, not least to protect it otherwise it’s strength and potential will be diluted. It also needs to be better sold to Malaysians.

• Measurement and evaluation
Why should money or resources ever be spent without knowing the return? Wherever possible, perceptions, activities and processes must be measured, ideally with quantitative benchmarks.

Such measurement and evaluation must be used to establish accountability and to ensure continuous improvement.

But don’t rely on polls such as the Nation Brand Index. Such a tool, whilst perhaps relevant to Western countries offers little value to developing countries. People are too worried about their own situations to worry about Malaysia.

The western world is looking to Asia to drag it out of the economic quagmire. We may never get such an opportunity again. The timing of this initiative by the Prime Minister is perfect but we need to move fast.