Berlin International Economic Congress - Brand Ireland - An Illustration of Damage and Repair: By Mary Lambkin©, Professor of Marketing, Smurfit Business School, University College Dublin

1. Berlin
International Economic Congress
Brand Ireland
- An Illustration of Damage and Repair -
Professor Mary Lambkin
UCD Michael Smurfit School of Business

2. Outline
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 Reputation Damage Prospects of Repair Factors for Success Outlook

3. 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

4. Positioning
TOURISM BUSINESS
The island of The island
character and of vibrant
characters possibility
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

5. The two main Targets
- Tourism and Business -
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

6. A roaring Success
Success of Celtic Tiger
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.
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

7. 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

8. Ireland’s Reputation crumbles
Cowen's global hangover
September 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

9. Cowen's global Hangover
September 15, 2010
Brian Cowen (Global Coverage 10th – 14th September 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
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

10. 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

11. 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.
Ajai Chopra, Deputy Director of the
IMF European Department, on his
A leader in the Irish Times talked of ignominy. way to a meeting at the with the
"There is the shame of it all," it said. "Having governor of the Central Bank of
Ireland.
obtained our political independence from Britain to November 18, 2010
be masters of our own affairs, we have now
surrendered our sovereignty to the European
Commission, the European Central Bank, and the
IMF."
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

12. 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

13. 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

14. Typically Identity is more positive
than Image
Identity Positive
Neutral or
Image
Negative
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

15. In Ireland’s Case, it is now the reverse
Neutral or
Image
Positive
Identity Negative
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

16. 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

17. Ireland less trusting than global Peers of most
Industries
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

18. Ireland least trusting of Government among all EU
Countries
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

19. 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

20. 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

21. Catastrophies form a continuum in Terms of Gravity
Malevolence
Mismanagement
Major Natural
Disaster
Technological
Disaster
Confrontation
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

22. Ireland’s Problems are at the low End of the
Continuum
Malevolence
Mismanagement
Major Natural
Disaster
Technological
Disaster
Confrontation
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

23. 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

24. 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

25. Interest in Business in Ireland
Interest over Time
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
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

26. Irish Exports have held up well and Growth
accelerated in 2010
Export and Import Volumes
600
500
400
300
200
100
0
00
01
02
03
05
06
07
09
10
04
08
20
20
20
20
20
20
20
20
20
20
20
Exports Imports
Irish exports up 6.9% in 2010 compared to EU27 average of -3.9%
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

27. Ireland’s Share of FDI is Still Very Strong Ranked
2nd in the world in 2010
FDI Index
6
5
4
3
2
1
0
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Au d
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a
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UK
az
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In
Br
ail
Ire
Po
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Th
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In
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Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

28. Tourism Numbers have suffered but there are Signs
of Uplift this Year
Overseas Visits to Ireland
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
00
01
02
03
04
05
06
07
08
09
10
20
20
20
20
20
20
20
20
20
20
20
000 Overseas Visits
Overseas visits to Ireland peaked in 2007 at 8 million, falling to 6
million in 2010, a decline of 25%
Brand Ireland Reputation Damage Prospects of Repair Factors for Success Outlook

29. 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

30. 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