STOCKHOLM SCHOOL OF ECONOMICS Department of Marketing and Strategy Bachelor Thesis, Spring 2012 Nation Branding A Brand New Marketing Tool on the Global Arena A Qualitative Case Study in a Swedish Context Abstract: Global competition is becoming fierce. New marketing techniques are emerging, among them Nation Branding. The aim of this study is to answer the following questions: What is Nation Branding and how is it applied in Sweden? Why is Nation Branding controversial and when does it matter? The study is performed through a qualitative, abductive approach. The empirical data is compared with theory by applying conventional marketing theory as well as corporate co-branding theory and cultural branding. Recently developed Nation Branding theories, such as the Nation Brand Hexagon and Index (NBI) and the Nation Brand Architecture model (NBAR), are used together with a Public Diplomacy framework in this research. This also opens up for a hermeneutic, holistic perspective including export related Heckscher-Ohlin framework. The primary data consists of interviews with practitioners and the general public. The secondary data are a literature research and a study of the NSU organs and stakeholders: The Swedish Institute, Visit Sweden, the Trade Council and Invest Sweden’s web-pages. The findings of this paper are that: Sweden is a nation with a long tradition of Nation Branding. According to practitioners and general public, Sweden is successful in its Nation Branding activities, distributing a “relevant picture” of Sweden, stimulating branded exports, and portraying Sweden as being a trustworthy, environmentally friendly and innovative nation. Moreover, Sweden scores well in the NBI, with a positive impact on both people working with Nation Branding in Sweden, as well as among the public. However, this study reveals that the NBAR model is not used to its full potential in Sweden and that the theoretical perspective has to be well grounded and applied with relevance to stakeholders before the notion and the implementation can gain full appreciation. More research has to be done, and opportunities must be provided for both students and those interested in studying the new discipline. Keywords: Corporate Co-branding, Country of Origin, Cultural Branding, National Identity, Public Diplomacy Author: Görel Englund 20470 Supervisor: Peter Hagström Examiner: Susanne Sweet and Anna Nyberg June 12, 2012, Room C606 14:00 – 15:00 Discussants: Camilla Adolfsson, Johanna Sevonius, Louise Karl, Pontus Englund Greater Coat of Arms Sweden1 1 http://www.worldatlas.com/webimage/countrys/europe/sweden/sesymbols.htm [2012-12-21] II Acknowledgements My warmest thanks go to Joakim Norén at the Swedish Institute and my tutor Peter Hagström. I thank my opponents for valuable input and my family and friends for putting up with me during the time I wrote this thesis. I thank everyone who was so kind answering my question: “Have you ever heard of Nation Branding?” I am in deep gratitude to you all, Görel Englund Stockholm, in January till December, 2012 III Content Table of Figures .............................................................................................................................................. VI Table of Tables .............................................................................................................................................. VII Citations ........................................................................................................................................................ VII 1 Introduction ............................................................................................................................................ 1 1.1 Current Status of Knowledge .......................................................................................................... 2 1.2 Problem Discussion, Purpose and Research Questions ........................................................................ 6 1.3 Expected Research Contribution and Limitations .......................................................................... 8 1.4 Definitions ...................................................................................................................................... 9 1.5 Disposition .................................................................................................................................... 10 2 Method ................................................................................................................................................. 11 2.1 Choice of Approach ...................................................................................................................... 12 2.2 Theoretical Framework ................................................................................................................ 13 2.3 Primary Data ................................................................................................................................. 14 2.4 Secondary Data ............................................................................................................................. 16 2.5 The Empirics and Criticism of the Sources ................................................................................... 17 2.6 Validity and Reliability .................................................................................................................. 18 2.7 Summary ....................................................................................................................................... 20 3 Theory ................................................................................................................................................... 21 3.1 Countries and Nations and National Identity ............................................................................... 22 3.2 Brand and Branding: History and Theories ................................................................................... 23 3.2.1 To Create Brand Value ......................................................................................................... 24 3.2.2 Strategic Market and Portfolio Management: Co-Branding ............................................... 26 3.2.3 Driver Brand and Endorser Brand ........................................................................................ 27 3.2.4 Brand Platforms ................................................................................................................... 29 3.2.5 Cultural Branding ................................................................................................................. 31 3.3 Swedish Trade Mark Law and Brand Liabilities ............................................................................ 33 3.4 Nation Branding: The Country-Of -Origin Effect and National Identity........................................ 34 3.5 The Nation Brand Architecture Model ......................................................................................... 36 3.6 The Nation Brands Index and the Hexagon Model ....................................................................... 38 3.7 Nation Branding and Public Diplomacy ........................................................................................ 40 3.8 National Income Identity and Competitive Advantage of Nations............................................... 43 3.9 Summary ....................................................................................................................................... 44 4 Empirical Study ..................................................................................................................................... 45 4.1 The Swedish Nation Brand ........................................................................................................... 46 4.1.1 The Brand Platform of Sweden ............................................................................................ 47 4.1.2 The Swedish Institute ........................................................................................................... 48 4.1.3 Visit Sweden ......................................................................................................................... 48 IV 4.1.4 The Swedish Trade Council .................................................................................................. 49 4.1.5 Invest Sweden ...................................................................................................................... 51 4.2 Sweden and Nation Branding ....................................................................................................... 52 4.3 Summary ....................................................................................................................................... 55 5 Analyses ................................................................................................................................................ 57 5.1 Analyzing Sweden’s Nation Brand in a Historical Context ............................................................ 59 5.2 Sweden’s Work with Nation Branding Today ............................................................................... 62 5.2.1 In a Perspective of Conventional Marketing Management Theory ..................................... 63 5.2.2 In a Perspective of Specific Nation Branding Theory ........................................................... 70 5.2.3 In a Perspective of Cultural Branding Theory ......................................................................