Branding Nepal

A Case Analysis

Submitted To:

Syed Ferhat Anwar

Course Instructor

Submitted By:
Group 2
Shanil Shazab ZR-01

Adiba Tasmeem RQ-05

Kazi Mofrad Muntasir ZR-20

Navid Sarwar ZR-57

Tashfeen Ferdous Saeed ZR-64

Submission Date: 11th May, 2011

Institute of Business Administration

University of Dhaka
Q.1.In what ways is branding a country similar to branding a product
and in what ways is it different?

Similarities

While branding a country and branding a product may seem miles apart in their way they are
communicated to the target audience, the two branding components have some similarities in scope.
They both represent ideals that entail the same branding ethos and ideologies.

First and foremost, while branding either a country or a product, it is important to note that both
concepts are anchored in the same theory base of consumer psychology. This means that the definitions
of product brand image and country brand image are compatible with each other. In their meta-analysis
of country-of-origin research, Verlegh & Steenkamp conclude that "a country image is not merely a
cognitive cue for product quality, but that it also relates to emotions, identity, pride and
autobiographical memories that transform country of origin into an ‘expressive’ or ‘image’ attribute".
This proves that consumers have the same basic psychological sensations when they think of a brand,
whether it be a product or a country.

Next, it must be mentioned that a favorable image of a country/product is both difficult to acquire and
easily tarnished by accidents or failures. Thus, a country/product with a strong brand image will find it
easier to market its offerings and enhance its reputation even further than a country/product with a
weak brand image. For example, Toyota will find it less demanding to launch a new product line than a
new car manufacturing company because of its brand image. Similarly, exports from a country like
Canada will be looked upon more favorably than Bangladesh.

Also, differentiation is a key strategy for any brand, whether to highlight a country or a product. With
the advance of globalization, every competitor must compete with each other for its share of the
market. In such an environment, as in any busy marketplace, brand image becomes a critical factor; the
necessary short cut to an informed buying decision. Thus, product/nation branding involves promoting
oneself to an external audience, while essentially besting the competition.

Next, as is a general rule of branding, and thus applies to both product and country branding – a brand
that tries to be all things to all people will inevitably fail. It must position itself to promote a specific
need satisfaction. In each context the customer has different needs, and so a nation/product brand that
tries to be all things to all people will inevitably fail, as it will isolate a significant proportion of its target
audience through its vagueness. Thus, divergence is the key to branding, not convergence.

Although branding may occur at different levels for a product or a nation, but the essential tools through
which the messages are communicated to the target audience remains essentially the same. By this, it
means that like product branding, nation branding has all types of techniques, technology and media at
its disposal. Anything and everything can be used in the communication arena to brand a product or
nation.

Lastly, it is undeniable that branding is an extremely powerful tool, but it is equally important to realize
that branding is only one part of a marketing strategy which itself is a part of the whole business
strategy. Branding will not work if other components of the strategy (finance, R&D, production,
distribution) fail to deliver what the customers want. Thus, branding for a product or a nation will only
work positively if other systems are in place to support the brand promise.

The similarities discussed above are summarized below:

Similarities between country branding and product branding

1. Image psychology Both concepts are anchored in the same theory base of consumer
psychology
2. Brand reputation Strength of the brand image of a country/product vital to market
offerings
3. Competition Must compete with each other for its share of the market
4. Specific need A brand that tries to be all things to all people will inevitably fail
satisfaction
5. Communication tools All types of techniques, technology and media at disposal for both
nation and product branding
6. Part of a greater Branding will not work if other components of the strategy fail to
business strategy deliver what the customer wants

Differences

Although product branding and country branding may have many attributes in common, they do have
distinctive differences. These are aspects which separates branding a nation from branding a product.

First and foremost comes the offering. By this, we mean the physical or tangible item that is being
offered by the brand. In the case of product brand, there is something on offer to the customer.
However, for a nation brand, there is fundamentally nothing on offer for the audience.

Next, national identity is notoriously difficult to define. The brand image of a nation tends to be
nebulous and complex. Products can be discontinued, modified, withdrawn from the market,
relaunched and repositioned or replaced by improved products. However, nations or places do not have
most of these choices. As there is no tangible offer in a nation brand, its attributes are difficult to define
or describe.
Consequentially, since there is no tangible offer in a nation brand, the only benefits a nation brand could
create for its audience are emotional rather than functional. Thus, nations brand themselves by evoking
purely the emotional element of the target audience. On the other hand, a product brand can have both
emotional and functional benefits for the customer.

Next comes the question of image portrayal. As evident, a nation has multiple images. National identity
is notoriously difficult to define. The brand image of a nation tends to be nebulous and complex. The
biggest challenge then in nation branding is how to communicate a single image or message to different
audience in different countries. It is almost impossible to develop a simple image or core message about
a country that can be used by different industry sectors. Since the image of a nation is complex and
vague, using one logo plus one slogan might be just sufficient to promote a washing powder, but it is
impossible for nation branding to develop a new national image in the same way. In contrast, a product
brand does not have all these complexities. Its brand tends to be more simple and clear.

Subsequently, the concept of the nation brand is not centered on any specific product, service or cause
that can be promoted directly to the customer. Nation branding concerns a country’s whole image,
covering political, economic, historical and cultural dimensions. The concept is at the nation level,
multidimensional and context-dependent. The nation image may have little impact on the consumer and
has no link with the product offer. In stark contrast, a product as fewer associations and is more specific.

An important thing to consider is the purpose of branding a nation/product. While the purpose of a
country is to essentially promote nation image, the main purpose of a product is to help gain sales and
develop relationships in order to maximize revenues.

Then we consider the ownership distinction between a product and a country. In product branding the
brand has a sole owner whose legal right is protected by law. In nation branding, the nation itself has no
control over the use (or abuse) of its name and image. A nation normally has only one official name. A
nation brand is not owned by the nation, but by any organization that wishes to exploit the nation’s
image and create a nation brand for commercial advantage. As the nation has no control of its image,
any outside third party could use the image for its own advantage. It is in the public domain and any
party with an interest could manipulate and exploit the ‘brand’ image to achieve its own ends. The
distinctiveness and exclusivity of a nation brand is hard to protect, as the nation has no natural
monopoly on the precise qualities it is seeking to promote. If there is indeed nation branding, the first
issue to be addressed is who owns the brand and is responsible for the branding, because the
development and management of a nation brand requires a sustained amount of concerted action.

By evaluating all the above criteria, it can be concluded that the product has very targeted audience
segments. On the other hand, the audience for a nation may be diverse, thereby, hard to define.
The differences discussed above are summarized below:

Differences between country branding and product branding

1. Offer Nothing on offer A product or service on offer
2. Attributes Difficult to define Well defined
3. Benefits Competition Functional and emotional
4. Image Complicated, various, vague Simple, clear

5. Associations Secondary, numerous and diverse Primary and secondary, relatively fewer
and more specific
6. Purpose To promote national image To help sales and develop relationships
7. Ownership Unclear, multiple stakeholders Sole owner
8. Audience Diverse, hard to define Targeted segment
Q.2 What is the difference between destination marketing and country
marketing?

Destination marketing

Destination marketing is referred to as "a proactive, strategic, visitor-centered approach to the

economic and cultural development of a location, which balances and integrates the interests of visitors,
service providers, and the community."

This definition was first proposed by business strategist and futurist Dr. Karl Albrecht, and endorsed by
the Destination Marketing Association International, in the report of the 2008 DMAI Futures Study,
conducted for DMAI by Karl Albrecht International.

Destination marketing may fall under one of the five divisions of destinations, each of which poses its
own marketing challenge:

1. Mega-city: This refers to a city so large that it has become a unique destination unto itself; people
who go there think of it as a primary destination, with the parent country as an associated option.

2. Large city: This refers to a city large enough to have become a "name" destination, and one of the
primary choices when visiting a particular country.

3. Mid-sized city: This would include a city of substantial size which is typically less well-known to
foreign visitors; the DMO has to tell and sell its story and continually build a brand.

4. Regional/natural attraction: This is a geographic area or extended region that attracts visitors for
reasons other than the typical urban experience.

5. Unique/boutique destination: These are typically small and localized destinations that capitalize on a
specialized "best known for" appeal.
 Mega City

Unique/
boutique Large City
destination
Destinatons

Regional/
Mid-sized
Natural
City
attraction

Country branding

Country branding may be referred to as the perception of an entire country by the target audience.
Country branding plays a crucial role in attracting foreign direct investment, creating internal pride, or
developing into a support structure for exports or any enterprise that a nation may undertake.

When referring to the target audience, it is important to realize that this can be subdivided into two
chief categories:

 The nationals: When talking about country branding, it is crucial to develop programs that are
targeted towards the nationals of the country because in the long run, the perception of a
country by its own residents is important in establishing a brand image; and

 The foreigners: Another important aspect of country branding is improving the image of the
nation in the eyes of foreign residents, who will subsequently develop a positive perception of
the country.

Country branding is chiefly carried out through the following parameters:

 Tourism

People Exports

Nation
brand

Culture
and Governance
heritage

Investment
and
immigration

Differences
Destination marketing focuses on the unique appeal of one single destination spot, typically a city or a
regional/natural attraction. Destination marketing is typically built around the unique features or appeal
of one particular location within the country. This may include cities, and therefore destination
marketing would be measured via parameters such as the presence of the city, the pulse and the
prerequisites.

In contrast, nation or country branding focuses on the whole image and perception of the entire country
to both local residents as well as the rest of the world. Branding a nation is particularly and relatively
more difficult, especially given that a nation’s values and heritage have to be taken into account and
that the country’s diplomatic and cultural relations with other nations also play important factors in how
it is perceived by others.

Country branding also focuses more on economic parameters such as investment, exports and tourism;
whereas destination marketing is chiefly built around the unique appeal of the particular destination.
Q.2.Update the SWOT analysis done by the national tourism board in
annexure 1. what insights into a country branding strategy for Nepal
does the updated SWOT analysis suggests

The updated SWOT analysis of tourism in Nepal is given above. The analysis features some new
aspects which have resulted from the emergence of Nepal as a democratic republic ending
decades of regional wars and feuds. For a country which has been wrought with Maoists revolts
and violence for almost three decades, this has stabilized the political situation in the county
and simultaneously improved the security situation. To any tourist, visiting an unknown country
brings its own sets of uncertainties and concerns. Security concern is almost always on top.
Nepal’s branding strategies must highlight that safety of tourists is important to Nepal and
there is no security concern while visiting this beautiful country. In order to dislodge any
negative perception tourists might derive from the decades-long Maoist revolts, Nepal must
instill positive welcoming attitude in its brand ethos.

Nepal must tap the huge Indian middle class market that has grown with the growth of Indian
economy. This market is price conscious. Most Indians haggle ferociously for price discounts
while negotiating with their travel agents. Nepal would have to compete with the likes of
Thailand for the Indian market share since one of Thailand’s major brand offerings is value for
money. However, Nepal would also enjoy some privileges from Indian markets. Not only do the
countries share a common border, their currencies are convertible, their languages are closely
related and only a passport or government ID card suffice for crossing national borders. This
makes it lucrative for price conscious Indian middle class tourists to spend a holiday in Nepal
rather than some other destination where air travel will be costlier, and it is this opportunity
that Nepal must take advantage of.
 Strengths Weaknesses
Himalaya Mountains that include Landlocked country.
Mt. Everest and other peaks over
8,000 meter.
Eight of the world’s ten tallest mountains. Road infrastructure is inadequate. The hilly and
mountainous terrain making it difficult to build
roads.
Influx of Indian tourists in the summer. National airliner is unreliable, a major drawback
since air travel is the best mode of transport in the
country.
Famous hindu pilgrimage sites: Sewerage facilities are poor. Monsoon seasons
Pashupathinath, Muktinath Temple, bring mudslides, washouts and potholes.
Mankamana Temple
Lumbini: Birthplace of Lord Buddha Shortage of electricity
Seven world heritage sites within 20 kms Pollution-air, water, solid waste and noise
of Kathmandu
Over 102 different ethinic groups, each with their own Substantial portion of population are
language. Illiterate.
Convenient gateway to Tibet and sacred Unhealthy competition.
mountain Mt. kailash.
World heritage cities like Patan and
Baktaphur are prime attractions.
Friendly people
Good air travel: 13 international airliners serve
Nepal.
Opportunities Threats
The historic declaration of 28th Poverty and low per capita income means low
May of Nepal being a Federal Republic has ushered investment.
in an era of political stability, ending decades of
Maoists revolt.
Growth in Indian economy and the emergence of Lingering negative perception about the country’s
middle class presents a market to exploit. security situation.
Improvement of security situation. Strong competition from the regional countries
like India, Singapore, Malaysia, SriLanka
Huge potential for hydroelectric power Westernization
Public-private partnerships, particularly Destruction of cultural values
through the Nepal Tourism Board.
Hotel and resort joint ventures
Development of infrastructure through foreign
donor assistance
Conservation and preservation of cultural and
archeological monuments
Q.4. Evaluate the Naturally Nepal-Once is not enough branding campaign.
Is it effective? Does it create and communicate a distinctive global brand
position for Nepal?

Nepal Tourism Board (NTB) launched the campaign ‘Naturally Nepal—Once is not enough’ in 2006. This
was a new global branding and repositioning campaign, the previous one being ‘Visit Nepal ’98—A
World of its own’.

The new campaign had three different target markets. The Indian and regional markets were targeted to
position Nepal as weekend breaks destinations, as short geographical distances made possible short
stays. Tourists from long haul countries such as UK and Australia were targeted for adventure holidays
and lifetime experiences.

The goals of the campaign were pretty ambitious. NTB aimed to position Nepal as one of the top ten
global tourist destinations and to attract as much as 10 million tourists to the country by 2010, whereas
in 2006, the total number of tourists was only around 380 thousand.

The evaluation of the branding campaign can be done using Anholt’s nation branding hexagon which
takes six dimensions into consideration in nation branding: Exports, Governance, Tourism, Investment
and Immigration, Culture and Heritage and People.

Exports: As per the case, the attempts to improve Nepal’s economic base with export activities have met
with mixes success. Nepal is already one of the poorest countries in the world. The export-oriented
carpet industries and the garment industries have grown but have met significant challenges as well.
Although they accounted for almost 70% of merchandise exports, the carpet industry, along with the
garments and pashmina shawl industry, have suffered from declining global demand and market
saturation.

Governance: At the time of the launch of the campaign, the political situation in Nepal was still in
turmoil. King Gyanendra had dissolved the government earlier in 2005 and the Maoists were in full riot
amid nationwide demonstrations against the king. The situation had not improved until May 2008 when
the Maoist government declared Nepal as a democratic republic, demolishing the monarch at last.

Tourism: The Tourism sector has played a significant role in the Nepalese economy. Nepal is rich in
natural attractions. Nepal is home to Mount Everest, the tallest peak in the world. It is also home to 8 of
the world’s ten highest mountain peaks.

Culture and Heritage: Nepal scores high in the ‘Culture and Heritage’ aspect also. Nepal is the birth
place of Buddha. It is a gateway to sacred hindu mountain, Mt Kailash. It is also home to Hindu and
Buddhist temples, spiritual and meditative centers and many pilgrimage and religious sites.

People: The people in Nepal are diverse and yet, friendly towards tourists. There are over 102 ethnic
groups in Nepal, each with its own language.
Investment and Immigration: Nepal is one of the poorest countries in the world. The average per capita
income in Nepal is very low. The infrastructure is poor. The sewerage system fails in the monsoon
season giving rise to washouts and mudslides. The national power grid is often taxed. Overall, it scores
low in the ‘Investment and Immigration’ aspect in the branding hexagon.

Dimension Score
Exports Low
Governance Low
Tourism High
Culture and Heritage High
People High
Investment and Immigration Low

It is evident that the branding campaign banked on the positive aspects produced from the dimensions
of Tourism and Culture and Heritage. It had failed to achieve a decent score on Governance, Exports
and Immigration and Investment. As stated in the case, when the economic conditions tighten and the
perception of the country is negative, demand for tourism falls. With these three important dimensions
posing possible question marks on Nepal, it was perhaps too ambitious for Nepal to aspire to become
one of the ten top global tourist destinations by 2010.

The aim of the campaign was to distinguish Nepal from other culturally rich and mountainous regions.
The branding campaign targeted three target markets for three different purposes. Since the target
markets were different, the brand slogan of ‘Naturally Nepal—Once is not enough’ could not provide a
distinct brand positioning for Nepal. One unified brand positioning could not be applied to three
different target markets. Since the brand offerings for each of this target market were different, it would
have been more appropriate to position Nepal differently to each of these target markets. Both India
and Malaysia have targeted the global market as a whole and have been able to globally position
themselves uniquely, India having positioned in terms of heritage and spirituality and Malaysia in terms
of true Asian diversity.

Overall, the branding campaign was not effective and the Nepal Tourism Board statistics for May 2008
speaks for its failure. Compared to May 2007, May 2008 tourist visits to the country was down by
approximately five per cent. lndian tourists market--a major tourist market and one of the target
markets—was down by 14% on a May 2007-May 2008 comparison basis. Tourists from China, Singapore,
Thailand and Taiwan also registered declines.
 Q.5. When a country experiences turbulence, terrorism and uncertainty,
what role should country marketing efforts play during such times?

Any form of National crisis possesses a challenging marketing effort for any nation. First of all the local
media plays a critical role in spreading the news of the crisis and thus shape the perception of the
international community about that country. It’s critical to understand that perception is reality. Media
is a major influencing factor for creating of the image of a country and can generate substantial negative
image of a country. Thus, the marketing effort must focus on the content of the local publications,
online newspapers, blogs, websites, and forums which form the touch points for reaching the global
media and thus influence the country perception.

Global Media Diaspora

Global Image
Figure:
Local Media
(Communicating Validation of the image with
(Communicating
the every interaction
the Image)
Image)
Impact Building Local
of Perception Local Media on the Global
Image of the Country

Secondly, the marketing efforts must consider the other

touch points which can influence the perception of people about the country. Three major phases which
affect the external audience during crisis are post visit phase, pre visit phase and during visit phase.

Marketing programs must be designed effectively to reach these people and ensure that a positive
image of the country maintained. Self-experience and word of mouth is the most effective method of
communicating a positive image about a country after a national crisis situation.

The focus of the marketing efforts should be on:

1. PR
2. Word of Mouth
3. Advertising
4. Online promotion via social networking sites
5. Events
6. Experience sharing via videos and photos
 7. Using opinion leaders

Public Relations during times of crisis are one of the most critical marketing efforts which can help
sustain and improve the image of the country. The major PR dimensions that should be considered are:

Events and Blogs

News Release
Conference

PR
Spokesperson Service Crisis Communication
and Training

Media Relation
Community Involvement

PR is a major influencing factor of international perception of a country during any form of national
crisis. It’s necessary to communicate refined and positive message about the country. Moreover, the
local people needs to be engaged and can play a critical role via generation of word of mouth and also
by their attitude to external audience. It’s also critical to build good relations with external stakeholders,
because they can serve as opinion leaders and help influence the external audience during times of any
form of crisis. The key to success of any national crisis communication lies within the credibility and skill
of the spokesperson of the country. Marketing plays a critical role during any crisis situation and it can
make a big difference if marketing efforts are successfully implemented during crisis. It’s necessary to
keep communicating about a country regardless of the situation. Finally a strong marketing effort can
help sustain and build a long term brand of the nation.