Te04 reputation why it matters, what it means, and how to shape and exploit it
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Transcript of 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
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
Copyright © Reputation Institute. All rights reserved.
Reputation Institute: the World’s Leading Firm
3
Knowledge Center Advice Group
Publications
Conferences
Training
Insight
Strategy
Alignment
Global Value Proposition We enable leaders to make business decisions that build and
protect reputational capital and drive competitive advantage.
Background: a Globalized World
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International tourist arrivals grew by 4% in 2012 to
reach
1,035 billion Growth is expected to continue in 2013 by 3% to 4%
Source: UNWTO World Tourism Barometer
Today’s World Context: International Tourism
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Global foreign direct investment (FDI)
inflows reached
US$ 1.6 trillion
and is projected to reach US$ 1.8
trillion in 2013
Source: United Nations Conference on Trade and Development (UNCTAD)
Today’s World Context: International FDI
in 2012
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Today’s World Context: International Trade
2.1% for global GDP
Source: WTO Secretariat
International trade in 2013 is forecasted
to grow by 3.3% and
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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
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
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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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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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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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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…
About Country & City RepTrak® Studies
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.
Main Results in 2013
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The Most Reputable Country in 2013 is…
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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
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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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
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The Most Reputable City in 2013 is…
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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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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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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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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
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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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…and the Safest Cities (and also Countries)
IEP’s 2013 Global Peace Index
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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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Moscow 11.8%
Toronto 11.5% Amsterdam 11.2%
Boston 10.5%
Bogota 10.6%
New York 10.7%
Evolution 2012-2013
Positive Evolution of City RepTrak® in the last year
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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%
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Nairobi -12.7%
Cairo -9.2%
Tehran -9.4%
Caracas -10.5%
Evolution 2012-2013
Negative Evolution of City RepTrak® in the last year
Taipei -8.6% México City -8.5%
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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…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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BRIC: Contrasting Results
Of the four BRIC countries, only Brazil
significantly improves its reputation.
+4.2%
-5.0% -2.5%
Russia maintains its reputation from
last year.
For their part, China and India are the two
countries of the 50 measured in the study
that lose the most reputation in percentage-
point terms compared to 2012.
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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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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
k®
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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Cities in Italy & Greece are Recovering Reputation
As was the case in the
Country RepTrak® 2013
study where Italy and
Greece start to recover,
the cities in these countries
improve their score
significantly.
+6.3% Venice Rome
Florence
Athens
Milan +5.3%
+4.2%
+4.2%
+7.6%
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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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0
20
40
60
80
Effective Government
Advanced EconomyAppealing Environment
Switzerland
Sweden
Canada
Egypt
Haiti
Greece
A Place Needs a Balanced Reputation Profile
Countries with a
strong reputation
present a balanced
reputation profile Countries with a poor
reputation have a
more uneven
profile
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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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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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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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
Place Reputation & Value Creation
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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
58 Copyright © Reputation Institute. All rights reserved.
Key Drivers for Influencing Stakeholder Behaviors
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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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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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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
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
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
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.
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
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
Case Studies
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
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
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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The Most Prominent Initiatives
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The Reputation of the Candidate Cities
Madrid
Istanbul
Tokyo
71.0
70.0
57.1
73 Copyright © Reputation Institute. All rights reserved.
Different Reputation Profiles & Emotional Halos
50
55
60
65
70
75
80
EffectiveGovernment
Advanced EconomyAppealing
Enviroment
Istanbul
Madrid
Tokyo
9. Tokyo 75,1 44. Madrid 67,6 73. Istanbul 55,5
15. Madrid 79,1 41. Istanbul 73,2 42. Tokyo 73,0
5. Tokyo 73,6 67. Madrid 56,5 71. Istanbul 55,8
Adequate
infrastructure
Financially stable &
future growth
Beautiful city
Madrid +5.3
Tokyo -3.1
Istanbul +1.1
Emotional halo
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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
Make Managing your Reputation a Priority
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
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
www.reputationinstitute.com