Te04 reputation why it matters, what it means, and how to shape and exploit it

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Copyright © 2011 Reputation Institute. All rights reserved. 1 Place Reputation Management 2013 Country & City RepTrak ® The World’s Most Reputable Countries & Cities Fernando Prado Managing Partner @fpradoRI

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Transcript of Te04 reputation why it matters, what it means, and how to shape and exploit it

Page 1: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Copyright © 2011 Reputation Institute. All rights reserved. 1

Place Reputation Management

2013 Country & City RepTrak®

The World’s Most Reputable Countries & Cities

Fernando Prado

Managing Partner

@fpradoRI

Page 2: Te04 reputation  why it matters, what it means, and how to shape and exploit it

2 Copyright © Reputation Institute. All rights reserved.

1. Reputation Institute

2. Background: a Globalized World

3. Place Reputation Unit: Knowledge & Advice

4. About Country & City RepTrak® Studies

5. Main Results in 2013

6. Top Trends in 2013

7. Place Reputation & Value Creation

8. Case Studies

9. Make Managing your Reputation a Priority

Agenda

Page 4: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Background: a Globalized World

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Places are Competing for Attention

Nations Regions Cities

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Why is Place Reputation Important?

As in the case of companies, places also have their own reputation which has an impact their

performance.

Places with a good reputation

welcome more tourists

Places with a good reputation

attract FDI

Places with a good reputation attract

foreign knowledge & talent

Places with a good reputation

increase exports

Places with a good reputation

improve their public diplomacy

Page 10: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Place Reputation Unit: Knowledge & Advice

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Advancing Reputation Knowledge: Introducing RI’s Place Reputation Unit

Reputation Institute has created a new

business area conceived from the ever-

rising need of countries, regions, and cities

to manage their reputation.

This new area is called

Place Reputation Unit

Page 12: Te04 reputation  why it matters, what it means, and how to shape and exploit it

12 Copyright © Reputation Institute. All rights reserved.

How to Help a Place to Manage its Reputation?

There are three basic elements on place reputation management:

Tracking of perceptions

Analysis of economic implications

Action plans

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Tracking of Perceptions: the Country & City RepTrak® Model

Emotional Reputation

Rational Reputation

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Key Factors in Reputation: Dimension Weights

Adj R2 = 0.634

N = 20002

Adj R2 = 0.656

N = 42360

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15 Copyright © Reputation Institute. All rights reserved.

Analysis of Economic Implications: the Reputation Economy

Supportive

Behaviors

Value

Creation Perceptions

Direct Experiences

Country Actions &

Communications

3rd-party Influence

Stereotypes

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16 Copyright © Reputation Institute. All rights reserved.

Action Plans

The results of a comprehensive analysis of place reputation give way to two work-streams in

implementation:

• Tactical: Immediate actions that can improve reputation and support (“quick-wins”).

• Strategic: Long-term plans that are designed for positioning the country/city/region in the eyes of

diverse international stakeholder groups.

- Place Branding is the set of initiatives designed to achieve a differential positioning for the country in the

economic arena (exports, investment, tourism).

- Public Diplomacy consists of the actions that work towards the positive positioning of the country through a

political dimension.

Action planning

Strategic

Place Branding (economic arena)

Public Diplomacy (political arena)

Tactical Quick wins in reputation through specific actions

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Action Plans: Tactical Actions

Immediate actions that derive from comparing three types of information:

• Importance of the different reputation variables for each stakeholder.

• Perceived performance of the country/region/city on those variables.

• Reality of the country/city/region (contrasting if better or worse than perceptions)

These actions can essentially be classified into two categories: communications actions & change

actions.

Bad

Good

Good

RE

AL

ITY

Bad

Change is required to alter

’reality’ and minimize

reputational risk

PERCEPTION

Communication is required to

capitalize on good reality and

overcome poor perceptions

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19 Copyright © Reputation Institute. All rights reserved.

Action Plans: Strategic Approach

Reputation Platform

Internal and External

Expression

Brand Architecture

Public Diplomacy

Reputation Institute’s approach for

developing long-term place branding

strategies starts by understanding

stakeholder perceptions and

expectations, as well as its assets.

A second step is the positioning

process, in which a conceptual

territory is determined. This is the

basis of brand strategy development

and consists of matching

stakeholder needs and expectations

with specific advantages that the

country/city/region can offer to them.

The outcome is a promise, the

reputation platform.

Next steps consist of implementing

the reputation platform through all

communication channels,

including visual identity, advertising

& PR, brand architecture, public

diplomacy…

Page 19: Te04 reputation  why it matters, what it means, and how to shape and exploit it

About Country & City RepTrak® Studies

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21 Copyright © Reputation Institute. All rights reserved.

2013 Country & City RepTrak® Study Overview

Stakeholder Group (Target) G8 general public (only people who were “somewhat” or

“very” familiar).

Country Selection • Largest economies

• Largest populations

• Countries of interest due to recent economic, political or

natural events

Data Collection Method CAWI (online interviews)

Data Collection Period From January to March 2013

Sample Over 27,000 consumers from G8 countries rating the 65

nations included in the study.

Stakeholder Group (Target) G8 general public (only people who were “somewhat” or

“very” familiar).

City Selection • Largest populations

• Largest gross domestic product (GDP)

• Cities which enjoy the highest amount

of tourism

Data Collection Method CAWI (online interviews)

Data Collection Period From January to February 2013

Sample Over 22,000 consumers from G8 countries rating the100

cities included in the study.

Page 21: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Main Results in 2013

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The Most Reputable Country in 2013 is…

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24 Copyright © Reputation Institute. All rights reserved.

2013 Country RepTrak® – Top 10

1

2

3

4

5

6

7

8

9

10

76.3

76.1

76.5

74.1

73.3

72.5

71.8

70.6

70.6

76.6 Canada

Sweden

Switzerland

Australia

Norway

New Zealand

Denmark

Netherlands

Austria

Finland

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25 Copyright © Reputation Institute. All rights reserved.

76,6 76,5 76,3 76,1 74,1 73,3 72,5 71,8 70,6 70,6

68,3 67,6 67,1 66,2 65,1 63,9 63,4 62,0 61,6

58,3 57,8 57,4 54,9 54,3 53,2 52,7 51,5 51,0 50,7 50,2 49,3

47,4 47,2 47,2 47,0 46,8 46,1 45,8 45,5 43,9 43,7 43,3

40,1 37,8 37,8 36,7

34,0

28,8

22,6 21,2

2013 Country RepTrak™

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26 Copyright © Reputation Institute. All rights reserved.

2013 Country RepTrak™ (65 Countries)

76,6 76,5 76,3 76,1 74,1 73,3 72,5 71,8

70,6 70,6 68,3 67,6 67,1

66,2 65,1

63,9 63,4 62,0 61,6

58,3 57,8 57,4

54,9 54,3 54,0 53,2 53,0 52,7 51,5 51,0 51,0 50,8 50,7 50,2 49,3

47,5 47,4 47,4 47,3 47,2 47,2 47,0 46,8 46,4 46,1 46,1 45,8 45,5 44,7 43,9 43,9 43,7 43,4 43,3 42,9 41,3

40,1 37,8 37,8

36,7 34,5 34,0

28,8

22,6 21,2

Canada

Sw

eden

Sw

itzerlan

d

Au

str

alia

Norw

ay

Denm

ark

New

Ze

ala

nd

Fin

lan

d

the

Neth

erl

an

ds

Au

str

ia

Germ

any

Irela

nd

Be

lgiu

m

Jap

an

the U

nited K

ingdom

Italy

Fra

nce

Sp

ain

Po

rtuga

l

Sin

ga

pore

Bra

zil

United S

tate

s o

f A

me

rica

Pe

ru

Th

aila

nd

Jam

aic

a

Po

lan

d

Costa

Ric

a

Ta

iwan

Pu

ert

o R

ico

Chile

Indonesia

Dom

inic

an R

epublic

India

Arg

entin

a

UA

E (

incl. A

bu

Dhabi &

Dubai)

Pa

nam

a

Gre

ece

Mo

rocco

Pa

raguay

Tu

rkey

So

uth

Kore

a

Me

xic

o

So

uth

Afr

ica

Uru

guay

Ecuador

Isra

el

Haiti

Ve

nezuela

Cuba

Hondura

s

Eg

ypt

Bo

livia

Guate

mala

Ukra

ine

El S

alv

ador

Nic

ara

gua

Sa

udi A

rabia

Chin

a

Colo

mb

ia

Russia

An

gola

Nig

eria

Pa

kis

tan

Iran

Iraq

Page 26: Te04 reputation  why it matters, what it means, and how to shape and exploit it

27 Copyright © Reputation Institute. All rights reserved.

The Most Reputable City in 2013 is…

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28 Copyright © Reputation Institute. All rights reserved.

2013 City RepTrak® – Top 10

1

2

3

4

5

6

7

8

9

10

76.9

76.9

76.9

75.8

75.7

75.1

74.7

74.4

73.0

77.4 Sydney

Toronto

Stockholm

Vienna

Venice

Edinburgh

Florence

London

Copenhagen

Zurich

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29 Copyright © Reputation Institute. All rights reserved.

Cities with a Strong Reputation (70-80 points)

1-32

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

77,3

76,9

76,9

76,9

75,8

75,7

75,1

74,7

74,4

74,3

74,3

74,2

74,0

73,6

73,5

73,1

73,0

73,0

72,8

72,6

72,6

72,5

72,2

72,1

71,9

71,4

71,0

70,8

70,7

70,4

70,0

70,0

Sydney

Toronto

Stockholm

Vienna

Venice

Florence

Edinburgh

Zurich

London

Copenhagen

Geneva

Helsinki

Munich

Vancouver

Melbourne

Frankfurt

Oslo

Montreal

Amsterdam

Dublin

New York

Paris

Barcelona

Auckland

Rome

Osaka

Madrid

Brussels

Adelaide

Prague

Tokyo

Boston

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30 Copyright © Reputation Institute. All rights reserved.

33-59

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

69,6

69,3

68,3

67,9

67,9

67,3

67,2

67,1

66,6

66,5

65,9

65,9

65,3

65,0

64,8

64,5

63,8

63,6

62,2

61,8

61,7

61,4

61,3

61,1

61,0

60,2

60,0

San Francisco

Lyon

Berlin

Perth

Milan

Orlando

Washington DC

Lisbon

Dubai

Los Angeles

Houston

Miami

Seattle

Brisbane

New Orleans

Singapore

Atlanta

Bali

Budapest

Montevideo

Chicago

Hong Kong

Warsaw

Athens

Las Vegas

St.Petersburg

Monterrey

Cities with a Moderate Reputation (60-70 points)

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60-98

Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

59,4 58,9 58,6 58,5

57,6 57,5 57,1 57,1 56,6 56,5 56,4

55,8 55,8 55,3

54,7 54,6 54,5 54,4 54,0

53,3 53,2 52,7 52,6

51,9 51,7

51,2 50,7 50,4 50,3 50,2 50,0 50,0 49,9 49,4 49,0

47,2 46,1

44,4 43,5

CancúnCape Town

SantiagoAbu Dhabi

Rio de JaneiroBuenos AiresKuala Lumpur

IstanbulLima

TaipeiSan Juan

SeoulSao Paulo

KievJerusalemShanghai

JohannesburgMacau

Santo DomingoPort-au-Prince

BangkokGuangzhou

BeijingMumbai

New DelhiRyad

MeccaManilaHanoi

BogotaMoscow

Kolkata/CalcuttaJakartaTel AvivCaracas

Mexico CityCairo

NairobiKarachi

Cities with a Weak Reputation (40-60)

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Scoring scale: 0-100

All score differences > 2.5 are significant at 95% confidence interval

32,1

28,5

Tehran

Baghdad

98-100

Cities with a Poor Reputation (0-40 points)

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33 Copyright © Reputation Institute. All rights reserved.

The Most Reputable Countries are not Necessarily the Most Economically Relevant

1

2

3

4

5

6

7

8

9

10 *Based on IMF & World Bank data.

USA

China

Japan

Germany

France

Brazil

UK

Russia

Canada

Italy

GDP Population Tourism FDI

China France

Brazil Germany China

India

Australia

China

USA USA China

Indonesia Spain Japan

USA

Brazil

Turkey France

Singapore

USA

Pakistan

Italy

Banglades

Germany

Russia

Russia Malasia

Italy

Germany

UK

South Korea

France

Japan Mexico

Russia

Canada Nigeria

UK

UK Canada

Exports

Page 33: Te04 reputation  why it matters, what it means, and how to shape and exploit it

34 Copyright © Reputation Institute. All rights reserved.

The Most Reputable Cities are not Necessarily the Most Economically Relevant

1

2

3

4

5

6

7

8

9

10

Tokyo

New York

Los Angeles

Seoul

London

Osaka

Paris

Moscow

Shanghai

Chicago

GDP Population Tourism

Tokyo

Paris

Guangzhou

Bangkok

London

Shanghai Singapore

Seoul

Istambul

Jakarta

Delhi

Mexico City

Manila

Dubai

Kuala Lumpur

New York

Hong Kong

Karachi

New York

Barcelona

*Based on several sources.

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But the Cities with the Best Quality of Life are Similar

1

2

3

4

5

6

7

8

9

10

Vienna

Zurich

Auckland

Munich

Vancouver

Frankfurt

Düsseldorf

Copenhagen

Sydney

Geneva

EIU’s 2013 Global

Liveability

Melbourne

Helsinki

Vienna

Copenhagen

Melbourne

Toronto Tokyo

Calgary

Zurich

Vancouver

Adelaide

Sydney

Perth

Stockholm

Munich

Auckland

Sydney

Helsinki

Vienna

Auckland

Mercer’s 2012

Quality of Living

Monocle’s 2013 Most

Liveable Cities

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As are the Most Beautiful Cities…

London

Paris

Vancouver

Sydney

Florence

Cape Town

Venice

Chicago

New York

San Francisco

Tokyo

Cambridge

World's Most Beautiful Cities

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Evolution 2012-2013

Positive Evolution of Country RepTrak® in the last year

Portugal 7.3%

Italy 7.7%

Greece 8.5%

Pakistan 7.5%

Nigeria 7.3%

Saudi Arabia 8.3%

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40 Copyright © Reputation Institute. All rights reserved.

Evolution 2012-2013

Negative Evolution of Country RepTrak® in the last year

Spain -2.2%

Argentina -2.4% South Africa -1.7%

China -5.0%

India -2.5%

UAE -2.7%

Page 41: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Top Trends in 2013

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North America 68.1

Europe 69.8 Asia-Pacific 57.3 Africa 53.2

Latin America 55.5

Country in which the city with the strongest reputation in the region resides.

Europe Dominates the Global Stage in Reputation…

*Average score of the cities measured in each region.

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44 Copyright © Reputation Institute. All rights reserved.

…and It Consolidates its Position in 2013

European cities are among the best

positioned in the world in terms of their

reputations.

Of the top 20 cities in the ranking, 15 are

European, with Stockholm ranked #1.

The evolution of European cities has also

been stronger and more positive than Non-

European cities, with an average increase of

3.1 points compared to the global average increase

of 1.4 points.

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46 Copyright © Reputation Institute. All rights reserved.

Latin America: On the Rise

Except for Argentina, which sees a very

slight hit from the sheer volume of negative

press last year (expropriation of YPF,

renegotiation of the national debt, cases of

corruption, etc.), the rest of the countries that

make up the continent measured in the study

improved their reputation.

+1.5 points

+1.5 points

+3.4 points

+2.3 points

+2.4 points

+1.8 points

+2.1 points

+2.8 points

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47 Copyright © Reputation Institute. All rights reserved.

0

10

20

30

40

50

60

70

80

90

10 20 30 40 50 60 70 80 90

The Reputation of a Country Defines the Reputation of its Cities

City RepTrak®

Co

un

try

Rep

Tra

There is a demonstrated correlation between the reputation of a city and the

reputation of its country. In general, the reputation of a city tends to be higher than

that of the country in which it resides.

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The Steady Growth of the USA's Reputation

In the last few years, perceptions of the USA have been

improving among the G8 countries, rising from 52.9

points in 2011 to 57.4 points in 2013.

In the case of the American cities, the same occurs;

they have experienced big jumps in the City RepTrak®

Pulse indicator compared to last year.

+7.8 points

+4.5 points

+7.3 points

+4.0 points

+3.7 points

+3.0 points

New York

Boston

Los Angeles

Miami

Washington DC

Las Vegas

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Which have a worse

reputation than Australia.

The most positive gaps occur in

Chinese cities such as:

Although there are also Important Differences

Despite the relation between the reputation of a city and the reputation of a

country, there are certain gaps between the two.

+23.5 Hong Kong

Shanghai

While the most negative gaps

appear in Australian cities:

Guangzhou

Brisbane

Perth

Adelaide

+16.7

+14.8

-11.2

-8.2

-5.5

Which have a stronger

reputation than China.

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52 Copyright © Reputation Institute. All rights reserved.

10

30

50

70

Effective Government

Advanced EconomyAppealing Environment

Zurich

Sydney

Munich

Baghdad

Cairo

Tehran

New York

A Place Needs a Balanced Reputation Profile

Rome #1 #1

#1

Cities with a strong

reputation present a

balanced reputation

profile Cities with a poor

reputation have a

more uneven

profile

Stockholm

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53 Copyright © Reputation Institute. All rights reserved.

Very poor

Measures the admiration, esteem, trust and good

feeling generated by one city relative to others.

Emotional Reputation

(Country/City RepTrak® Pulse)

Obtained by the sum of the scores for each

attribute multiplied by the weight.

Rational Reputation

(Country/City RepTrak® Index)

RepTrak® Pulse >

RepTrak® Index

RepTrak® Pulse <

RepTrak® Index

Positive emotional halo

Negative emotional halo

Country & City RepTrak® Model: the Emotional Halo

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54 Copyright © Reputation Institute. All rights reserved.

Very poor

Counties with a large positive

emotional halo Countries with a large negative

emotional halo

*Emotional gap is the difference between rational and emotional reputation.

Gap between Emotional & Rational Reputation

China -7.3 1

2

3

4

5

USA

South Korea

-7.3

-6.1

1

2

3

4

5

Haiti

Australia

+3.5

New Zealand +2.7

Jamaica +3.7

Peru +2.7 Russia

Japan

-4.9

-4.7 +2.7

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55 Copyright © Reputation Institute. All rights reserved.

Very poor

Cities with a large positive

emotional halo Cities with a large negative

emotional halo

*Emotional gap is the difference between rational and emotional reputation.

Gap between Emotional & Rational Reputation

Los Angeles -5.4 1

2

3

4

5

Moscow

Las Vegas

-5.2

-4.8

1

2

3

4

5

Venice

Lisbon

+9.8

Florence +6.9

Athens +10.9

Port-au-Prince +6.2 Chicago

Seoul

-4.5

-4.1 +5.9

Page 55: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Place Reputation & Value Creation

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57 Copyright © Reputation Institute. All rights reserved.

Visit

0.72

Invest

0.70

Live

0.75

Work

0.74

Buy

0.75

Value Creation: Reputation & Declared Intentions

Invest

0.74

Live

0.77

Work

0.76

Buy

0.76

Study

0.75

Visit

0.71

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58 Copyright © Reputation Institute. All rights reserved.

Key Drivers for Influencing Stakeholder Behaviors

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59 Copyright © Reputation Institute. All rights reserved.

Supportive Behaviors towards Countries – Top 10

Visit Invest

Live

76,5

77,1

77,3

77,4

77,9

78,7

80,1

80,3

80,8

80,8

New Zealand

Denmark

Spain

Austria

Norway

Sweden

Australia

Canada

Italy

Switzerland

63,1

63,4

63,5

64,6

64,8

66,6

67,5

67,9

68,3

71,7

Austria

Japan

New Zealand

Denmark

Norway

Germany

Sweden

Australia

Canada

Switzerland

64,9

66,4

66,8

68,6

68,7

68,7

70,8

72,4

72,7

73,1

Germany

the Netherlands

Austria

Denmark

Norway

New Zealand

Sweden

Switzerland

Australia

Canada

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60 Copyright © Reputation Institute. All rights reserved.

Supportive Behaviors towards Countries – Top 10

Buy Work

Study

66,4

68,3

68,5

68,9

69,8

70,2

70,9

71,6

73,3

73,3

United States of America

Denmark

Norway

Austria

Germany

the United Kingdom

Sweden

Australia

Canada

Switzerland

67,8

69,1

69,1

69,6

69,7

70,9

71,5

73,3

74,2

75,0

Finland

Norway

Italy

Australia

Denmark

Japan

Canada

Sweden

Germany

Switzerland

65,7

66,8

67,3

68,1

68,3

69,2

71,2

71,2

73,6

74,5

the Netherlands

New Zealand

Austria

Denmark

Germany

Norway

Sweden

Australia

Canada

Switzerland

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61 Copyright © Reputation Institute. All rights reserved.

Supportive Behaviors towards Cities – Top 10

74,7

74,5

71,5

70,9

70,7

70,5

70,5

69,7

69,4

69,2

Sydney

Toronto

Zurich

Stockholm

Edinburgh

Vancouver

Melbourne

Florence

Munich

Vienna

70,6

69,8

69,7

68,0

67,3

66,9

66,8

66,4

66,4

66,2

New York

Zurich

Sydney

Munich

Adelaide

Tokyo

Toronto

Frankfurt

Osaka

Geneva

86,5

84,8

84,1

83,6

83,1

83,1

82,9

82,7

82,7

82,5

Venice

New York

Edinburgh

Amsterdam

Barcelona

Sydney

Florence

Rome

Vienna

London

Visit Invest

Live

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62 Copyright © Reputation Institute. All rights reserved.

Supportive Behaviors towards Cities – Top 10

Work Buy

73,6

73,4

73,1

71,5

71,3

71,3

71,1

70,5

69,7

69,5

Toronto

Zurich

Sydney

Frankfurt

Stockholm

New York

Munich

London

Edinburgh

Vancouver

74,0

72,5

72,3

72,2

72,0

71,8

71,5

71,0

70,8

70,4

New York

Munich

Tokyo

Zurich

Toronto

Sydney

Frankfurt

Edinburgh

London

Stockholm

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63 Copyright © Reputation Institute. All rights reserved.

20

30

40

50

60

70

80

90

100

20 30 40 50 60 70 80 90

A Better Reputation Leads to Stronger Support… In

ten

tio

n t

o V

isit

City RepTrak®

The good reputation of a city strongly correlates with an increase in the supportive

behaviors shown towards the city, such as visiting the city, living or working in the

city, or deciding to invest in the city.

Sydney Amsterdam

Zurich

Osaka

Las Vegas

Houston

Montevideo

Istanbul

Moscow

Cairo

Nairobi Port-au-Prince

Tel Aviv

Karachi

Tehran

Baghdad

Venice

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64 Copyright © Reputation Institute. All rights reserved.

…which Generates an Economic Impact: Tourism

Intention to Visit Country Reputation Tourism ($)

0.7 0.6

*Based on World Bank data.

According to the analysis carried out by Reputation Institute, there is a demonstrated correlation

between the reputation of a country and the income received from tourism.

*Pearson correlation.

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65 Copyright © Reputation Institute. All rights reserved.

-100

100

300

500

700

900

1100

01/09 04/09 07/09 10/09 01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11 01/12 04/12 07/12 10/12 01/13 04/13

Co

un

try R

isk

Pre

miu

m

Time (date)

Set of countries with weaker reputations (China, India, USA, Poland & Greece)

Set of counties with stronger reputations (Canada, Sweden , Norway, Switzerland & Australia)

Countries with a good reputation have maintained a stable risk premium since the beginning of

the financial crisis, while countries with poor reputations have seen the risk premiums they pay rise

by up to 1000%.

*Based on World Bank data.

…which Generates an Economic Impact: Risk Premium

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66 Copyright © Reputation Institute. All rights reserved.

Co

un

try R

isk

Pre

miu

m

Time (date)

Set of countries with weaker reputations (China, India, USA & Poland)

Set of counties with stronger reputations (Canada, Sweden , Norway, Switzerland & Australia)

Countries with a good reputation have maintained a stable risk premium since the beginning of

the financial crisis, while countries with poor reputations have seen the risk premiums they pay rise

by up to 300%.

*Based on World Bank data.

-100

100

300

500

700

900

1100

01/09 04/09 07/09 10/09 01/10 04/10 07/10 10/10 01/11 04/11 07/11 10/11 01/12 04/12 07/12 10/12 01/13 04/13

…which Generates an Economic Impact: Risk Premium

Page 66: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Case Studies

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68 Copyright © Reputation Institute. All rights reserved.

Differences in the Construction of a Country Reputation: The Success of Peru

20

40

60

EffectiveGovernment

AdvancedEconomy

AppealingEnvironment

Peru

Brasil

Colombia

0

10

20

30

40

50

60

70

802010 2011 2012 2013

Peru’s reputation improvement areas in 2013:

- Progressive social & economic policies

- Effective government

- Favorable environment for doing business

- Well-known brands

In G8 countries Peru is more similar to Brazil,

especially in Effective Government.

+0.8 +3.2 +1.5

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69 Copyright © Reputation Institute. All rights reserved.

Peru & Colombia: a Reality not so Different

Population

192,376,496 US$ 2,421,637 mil.

Nominal GDP

8,514,877 km²

Area

1,285,216 km² 30,475,144 US$ 200,292 mil.

1,141,748 km² US$ 378 ,713 mil. 47,121,089

Growth Rate

6.1%

4.1%

3.1%

2.7%

2.8%

5.7%

Inflation GPI*

2051

2258

2634

*Global Peace Index Score

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70 Copyright © Reputation Institute. All rights reserved.

Key Success Factors of Peru

• Definition of a positioning strategy for

"place branding" (released in 2011) with

three clear targets for improvement:

tourism, exports and investment.

• Commitment and support of public

institutions (Promperú).

• Integrated management (internal and

external), with a high degree of

involvement from society as brand

ambassadors.

• Good timing, coinciding with a process

of renewal and growth.

• A successful and well-defined

communication plan (at the national and

international level).

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71 Copyright © Reputation Institute. All rights reserved.

The Most Prominent Initiatives

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74 Copyright © Reputation Institute. All rights reserved.

Key Factors of Tokyo’s Victory

- Demonstrated experience having held

the Olympic Games previously in 1964.

- The link between the city and the

country, which has a good reputation:

• Solid finances: $4.5 billion kept in

a fund dedicated to covering the

costs of the Olympics.

• Security: One of the safest cities

(and countries) in the world, having

known how to solve (effectively

communicate and present) the

issue of the Fukushima nuclear

plant.

”Congratulations to the city of Tokyo on its

election as host of the 2020 Olympic

Games” said IOC President Jacques Rogge,

whose 12-year term in office comes to an end

on 10 September.

“Tokyo presented a very strong technical bid

from the outset – and it needed to in

competition with two such high-calibre bids

from Istanbul and Madrid.

All three cities were capable of staging

excellent Games in 2020, but in the end it was

Tokyo’s bid that resonated the most with the

IOC membership, inviting us to ‘discover

tomorrow’ by delivering a well-organised

and safe Games that will reinforce the

Olympic values while demonstrating the

benefits of sport to a new

generation.”

Economic crisis

Madrid

Istanbul

Internal unrest and instability

Page 74: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Make Managing your Reputation a Priority

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76 Copyright © Reputation Institute. All rights reserved.

• Understand perceptions and drivers among your stakeholders

• Identify your competitive strengths and points of difference

• Define brand & reputation strategy

• Align activities with your strategy and stakeholder expectations

• Build KPIs to ensure accountability

• Monitor success on an ongoing basis

Place Reputation & Brand Management: Best Practices

Page 76: Te04 reputation  why it matters, what it means, and how to shape and exploit it

Copyright © 2011 Reputation Institute. All rights reserved.

The World’s Most Reputable Companies: A Global Study of Consumers in 41 Countries

Thank you!

Fernando Prado

Managing Partner - Reputation Institute

@fpradoRI - @Reputation_Inst

[email protected]

www.reputationinstitute.com