UCD Michael Smurfit School of Business
Berlin
International Economic Congress
Brand Ireland
- An Illustration of Damage and Repair -
Professor Mary Lambkin
Outline
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland as a Nation Brand
Reputation Damage from financial Crisis
Prospects of Repair: Research Evidence from other Cases
Factors necessary for Success
Outlook for the Future
Brand Ireland is all about
People and Place
Reflects research evidence that Ireland scores in top 10 on
• Natural beauty
• Friendly locals
• Families
• Nice place to live
• Rest and relaxation
• Easy to Do Business With
• Preferred destination for conferences
• Good to extend a business trip
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Positioning
TOURISM BUSINESS
The island of
character and
characters
The island
of vibrant
possibility
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
The two main Targets
- Tourism and Business -
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
A roaring Success
GDP growth averaged 6.3% through the 1990s, with close to 10%—between 1995
and 2000. Ireland’s GDP per capita surpassed the UK’s.
FDI averaged over $2.5 billion per year and unemployment reduced to 5%. Fiscal
surpluses became the norm, national debt all but disappeared, and emigrants
returned in droves.
Ireland designated “The World’s Best Country”
“Ireland wins because it successfully combines the most desirable elements of the
new (the fourth highest GDP per head in the world in 2005, low unemployment,
political liberties) with the preservation of certain cozy elements of the old, such as
stable family and community life.”
The Economist Intelligence Unit, Quality of Life Survey, EIU World Report, 2005, p. 86.
Success of Celtic Tiger
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
We Irish basked in the glow and
thought we were wonderful
but
pride comes before a fall......
And fall we did!
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland’s Reputation crumbles
Cowen's global hangoverSeptember 15, 2010
BRIAN Cowen’s hangover went global today.
As the country’s economic standing plummets, the
world’s most influential publications and websites
reported on the Taoiseach’s late night drink-in.
Coverage of the debacle featured in 457 articles in
400 publications across 26 countries.
The Wall Street Journal said the timing of Cowen’s
“bizarre ... slurred and tired” interview, “couldn’t be
worse”.
It said that that the country’s spiralling debt crisis
was “fuelling concerns about the Government’s
ability to weather the storm”.
Fianna Fail TDs were reeling after their annual
think-in was renamed the “drink-in”.
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Cowen's global HangoverSeptember 15, 2010
Over 400 publications covered
the story; 457 articles were
published by midnight on 14th
September, less than 24 hours
after the interview;
The coverage represented a
692% increase on the average
daily coverage for Mr Cowen
over the proceeding five days
Brian Cowen (Global Coverage 10th – 14th September 2010)
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
The Story appeared in Publications in 26 Countries including: USA, UK, India and China
Brian Cowen (Global Coverage 10th – 14th September 2010)
Country by Counrty Breakdown of International Coverage
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Bailout by the IMF and the ECB
Today the 12 men and women from the International
Monetary Fund, in suits and sensible coats, arrived
in Dublin to clear up the financial mess.
By any measure it was an extraordinary day for
Ireland. Historian Diarmuid Ferriter described it as
devastating and a "humiliating milestone" that the
nation's sovereignty was being compromised nearly
100 years after hard-fought independence.
A leader in the Irish Times talked of ignominy.
"There is the shame of it all," it said. "Having
obtained our political independence from Britain to
be masters of our own affairs, we have now
surrendered our sovereignty to the European
Commission, the European Central Bank, and the
IMF."
Ajai Chopra, Deputy Director of the
IMF European Department, on his
way to a meeting at the with the
governor of the Central Bank of
Ireland. November 18, 2010
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
When Irish Eyes Are Crying
“First Iceland. Then Greece.
Now Ireland, which headed for
bankruptcy with its own mysterious
logic. In 2000, suddenly among the
richest people in Europe, the Irish
decided to buy their country—from
one another. After which their banks
and government really screwe them.
So where’s the rage?
Michael Lewis, March 2011
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Nation Brands are about trying to achieve
Convergence between Identity and Image
Identity Image
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Typically Identity is more positive
than Image
Identity
Image
Positive
Neutral or Negative
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
In Ireland’s Case, it is now the reverse
Identity
ImageNeutral or Positive
Negative
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Our Trust in our Institutions crumbled
Global 55
Brazil 80
UAE 78
Netherlands 73
China 73
Italy 56
India 56
Sweden 52
Spain 51
France 50
Poland 49
Germany 44
US 42
UK 40
Russia 40
Ireland 39
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland less trusting than global Peers of most Industries
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland least trusting of Government among all EU Countries
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
So, what is the outlook for the future?
Are we Irish and Brand Ireland destined to
reside at the bottom of all rankings for the
foreseeable future?
And, more importantly,
Is this going to damage our economy in a real
and lasting way?
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
The Answer is -- not necessarily
For several Reasons
1. Ireland’s problems are relatively minor in the scale of
events that countries have to deal with.
2. Research demonstrates that corporations (not unlike countries) bounce back very quickly, even from very grave problems.
3. Strong leadership and good communication have been shown to be effective tools in accelerating recovery.
4. Evidence from the Irish economy shows that it has actually started to recover already.
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Catastrophies form a continuum in Terms of Gravity
Mismanagement
Malevolence
Technological Disaster
Confrontation
Major Natural Disaster
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland’s Problems are at the low End of the
Continuum
Mismanagement
Malevolence
Technological Disaster
Confrontation
Major Natural Disaster
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Research Evidence shows that Corporations recover
very quickly from catastrophic Events
• Sales of contaminated or recalled products return to
their normal levels within 6-12 months, eg Tylenol,
Perrier, beef.
• Share prices and volume of trade return to their normal
levels within a year, eg. Toyota.
• General corporate reputations return to their previous
levels inside 3 years--survey of CEOs of major plcs.
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Searches about Travel to Ireland have declined by
more than 60%
Interest over Time
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Interest in Business in Ireland
Interest in business in Ireland was very high during the boom
years, declined as the recession took hold, but showed signs of
recovery in 2010
Interest over Time
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Irish Exports have held up well and Growth
accelerated in 2010
0
100
200
300
400
500
600
20002001200220032004200520062007200820092010
Exports Imports
Irish exports up 6.9% in 2010 compared to EU27 average of -3.9%
Export and Import Volumes
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Ireland’s Share of FDI is Still Very Strong Ranked
2nd in the world in 2010
0
1
2
3
4
5
6
Singapore
Ireland
Thailand
CzechRep
Brazil
Poland
Australia
India
Indonesia
UK
FDI Index
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Tourism Numbers have suffered but there are Signs
of Uplift this Year
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
000OverseasVisits
Overseas visits to Ireland peaked in 2007 at 8 million, falling to 6
million in 2010, a decline of 25%
Overseas Visits to Ireland
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
Our Trust in our Institutions is also improving
Trust in Business Infomred Publics ages 24-64
Ireland trust in busness now equal to US trust and catching up to EU
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook
And we have a new Government which should bring
fresh Leadership and better Communication
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook