National Brand Identity & Its Effect On Corporate Brands: The Nation Brand Effect (NBE)

Multinational Business Review, Fall 2003 by Jaworski, Stefan Paul, Fosher, Don

Finally, like any successful Brand, China and its companies must have a strong, proactive, and wellplanned "path of evolution." Such a path will take into consideration numerous, vital factors including: relationships, goals and specified targets, Nation Brand Effect (NBE) over decades, political and geographic factors (past, current, projected), socioeconomic and demographic trends, and the cumulative effect of Asian culture on the global conscience and vice versa. China and its companies must also be able to correctly discover their continuous Brand impact on the consumer, market, and society psyche-both macro and micro wise (global, continental/regional, national, and local). The mechanisms and models for such vital insight are also a key success factor for China.

Like Japan in the 1970's, China-with its innovation and quality levels increasing at rapid rates-is poised to open new markets and expose the world to an entirely new Brand phenomena. But, to be successful, it must generate worldclass, far-reaching Brand building skills, while avoiding the U.S.-style advertising/marketing communications trap. At this critical point in its Brand history, China needs to take active control of its Brands (Nation and Corporate) by defining, focusing, differentiating, and uniformly promoting its Brand assets and interests. And, it must do so skillfully. If China is wise, it will realize that both its Nation and Corporate Brands must work in unison, as there is direct correlation between such a working philosophy and global Brand success.

THE AMERICA NATION BRAND EFFECT

Before and during the 2003 Iraq war, we have seen a very good example of the power and effects of the Nation Brand Effect regarding "Super Nation Brand" America.

The America Nation Brand, the strongest of all for decades, is now facing its greatest challengeespecially since the last Gulf War and with even greater escalation since 9/ 11. From Muslim nations to those in the heart of Europe, the U.S. Nation Brand is not a positive one in many respects. In a typical reaction to the long-time U.S. Brand juggernaut, an entirely predicted response is occurring: USA Brand overload leading to resentment and even rejection. Combine this with recent U.S. political and military actions and the combination is volatile. However, let us realize that anti-U.S. sentiment is not necessarily the same thing as "Brand burn out," because one can still be pro U.S. yet still suffer from U.S. Brand overload.

For instance, Canada is still very pro-America yet the onslaught of U.S. Brand messages, culture, and Brand identity from its next-door neighbor has, over decades, created widespread backlash. Canadians sometimes feel overwhelmed by the ever-present USA Nation Brand dominating everything from the airwaves to print media and cultural events. How have Canadians dealt with this invasion? The same way France, England, and others the world over have: by a natural wave of nationalism. For many in Canada-a nation with a weak Nation Brand Identity-there has been a recent desire for discovery of what exactly defines Canada (a searching for the national soul) combined with a subtle but strong rejection of what is American. In France and parts of Europe, we are seeing a strong return to specific Nation Brand roots with a much less subtle rejection of things American. The America Nation Brand is seeing a backlash on a scale not seen since the Vietnam War-or at least an insulated attempt within the nations it does business with.