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Introduction
The world we live in today is more connected than ever before. Technology makes
communication, even across the world, fast and efficient. News travels quickly, propelled
through witnesses sharing real time information over the internet. Economies are dependent on
an intricate web of global supply chains. Social causes gain momentum as people are made
aware of issues around the world.
Companies are quick to respond to this change. With more information available, they
compete not only with their product offerings but with their brands. Consumers form opinions on
brands that help them to make decisions. These brands are fueled by the ideas of transparency,
social involvement, and company values. CEOs speaking about their goals for the company are
quick to emphasize their values or make promises to promote good. Corporate social
responsibility is on the rise as marketers work to appeal to socially conscious consumers
(Anholt).
Marketing departments of private sector firms are working hard to build brands and adapt
to this interconnected world. Marketing strategy is an integral part of business and allows for
adaptation to new trends. These skills and strategies should not be limited to the private sector.
When applied to governments, marketing and branding can serve as a powerful tool to strengthen
diplomatic negotiations and aid in negotiations. Strong brands make connections easier and
promote trust and reliability. In today’s world, these traits are incredibly valuable to
governments.
Simon Anholt recognized the close relationship between successful international relations
and marketing strategies. He coined the term “Nation Branding” to give name to this
phenomenon of states using marketing tools to build a better brand (Anholt). This concept works
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closely with other international relations hot topics, including cultural diffusion, public
diplomacy, and soft power.
Today a nation’s brand can be leveraged to support domestic and international goals.
Countries use their brand to attract FDI, gain a favorable position in negotiations, strengthen
diplomatic and trade relationships, and persuade other states to support specific goals. Countries
that once competed through wars and economic actions are now competing through cultural
influence and public diplomacy.
In this thesis I will demonstrate the importance of marketing strategy in the context of
international relations. By doing so, I hope to show the strategic importance of using marketing
and branding strategies in government strategy. The report will begin with a literature review of
the key terms and academic publications. From there, specific instances of nation branding will
be studied in order to assess objectives and accomplishments of marketing strategies deployed by
states.
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Background Concepts
In order to understand the relationship between marketing and international relations,
world leaders must have a strong academic background on the related concepts. This section will
review relevant definitions and publications in order to better understand the case studies and
practical applications. Nation branding is a multifaceted strategy, and the following sections will
examine some of the most important terms for building a marketing strategy for a country.
As outlined below, there are a variety of ways that a country can choose to better market
themselves to the rest of the world. Countries with successful nation brand can evaluate the
current world system and their own brand. Once a strong understanding of the current system is
established, political leaders can choose their strategic objectives for their nation brand and select
which of the following methods will best suit the goals of their country.
International Relations
International relations can be defined as “the study of the relations of states with each
other and with international organizations and certain subnational entities” (Pfalzgraff). The
study of international relations allows for scholars and political strategists to look at the policies
and decisions of states in the context of other states and organizations. The concept became
popular in the 20th century as people sought a way to exert influence and build relationships
without resorting to war and violence (Pfalzgraff). People began to believe that there was a
benefit to gain from working with other groups of people and states, the study of international
relations provided a guide to these new collaborations.
Woodrow Wilson is often credited with being an early influencer of international
relations thinking. His Fourteen Points, used in peace negotiations following World War I,
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outlined a new plan for foreign policy and international collaboration. Most notably, his first
point called for “Open covenants of peace openly arrived at, after which there shall be no private
international understandings of any kind, but diplomacy shall proceed always frankly and in the
public view” (The Fourteen Points).
Power
Power can take on many meanings depending on the academic thought or the state’s
specific needs. In a journal published in the Cambridge University Press, Michael Barnett and
Raymond Duvall argue that power can be defined as “the production, in and through social
relations of effects that shape the capacities of actors to determine their circumstances and fate.”
The authors used this definition to identify four types of power used in international relations.
Compulsory power is described as “relations of interaction of direct control by one actor
over another” (Barnett and Duvall). This type of power occurs when a state forces another to do
something that the state would have not done on its own. This is commonly seen by major
powers who have the resources to apply direct force on other states.
Institutional power is a way that states demonstrate control over others “indirectly
through diffuse relations of interaction” (Barnett and Duvall). This power comes from both
formal and informal institutions that both countries recognize as legitimate. One country can
leverage the perceived power or legitimacy of the institution to influence another.
Structural power is socially based, meant to exert influence based on “direct structural
relation to one another.” States have power in deciding how the actors should act together based
on structures. A country with structural power can determine norms and structural relations and
roles of states (Barnett and Duvall).
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Lastly, productive power is “the socially diffuse production of subjectivity in systems of
meaning and signification.” While structural power concerns the social structures in place, this
type of power is based on the significance and meaning that arises from social settings in order to
create identities and capacities (Bharati).
Each of these types of power can be combined and manipulated by states to reach their
international goals. Like international relations, the idea of power and the applications of these
frameworks vary and are heavily impacted by the issues seen as most pressing at the time. States
are likely to adjust power displays regularly in order to meet their goals and remain competitive.
World Order
Many of the discussed topics in this thesis are closely tied to the time period and world
environment they are observed in. Over time and following major events, priorities among states
change. These types of shifts are not new, we have seen dramatic shifts in state relations
following major events such as the World Wars which both left some states with great influence
and others heavily damaged. These shifts in international trends and demands for power can be
attributed to the idea of world order.
World order has become an important aspect in international relations as it attempts to
explain a state’s position in the context of the rest of the world’s states. World order is “a
measure of the state of the world, how violent, how organized, and tends to reflect whether there
is a balance of power and how widespread acceptance of the principles and rules for how the
world is to operate” (Zakaria). This concept allows for a deeper understanding of the competitive
landscape between states. Countries adjust their strategies based on who has the most power and
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where their state falls in the international organization. When countries feel they deserve more
influence in the world, they may turn to more aggressive power and influence seeking strategies.
The claims of this thesis are built on the assumption that today’s world order has changed
to a point that necessitates new ways to exert power. We see this is China’s rapid rise to power
and the threat that another world power would pose to other actors. Today’s world order has
shifted to a multipolar power structure (Zakaria). This phase is noteworthy because the power
has shifted in the absence of a major war, providing evidence that power and status can be gained
without physical force. Instead, China and other major players are rising to power in new and
indirect ways, creating demand for shifts in international relations strategy (The Strategic
Challenges).
Public Diplomacy
“Public diplomacy” is a term first used by United States Foreign Service Officer Edmund
Gullion (What is Public Diplomacy?). He coined the term to work in place of the word
“propaganda” when describing the attempts of governments to influence individuals. Propaganda
often carries a negative connotation and public diplomacy is intended to invoke images of more
friendly and indirect approaches to influence.
The University of Southern California Center on Public Diplomacy (CPD) defines public
diplomacy as; P It is important to note that this definition is not intended to provide the exclusive
explanation of the concept and the center studies the plethora of ways the concept can be
interpreted. The U.S. The Department of State defines public diplomacy as “government
sponsored programs intended to inform or influence public opinion in other countries” (About
U.S. Public Diplomacy).
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Public diplomacy rests heavily on the concept of cultural relations. Cultural relations is
defined as “interventions in foreign cultural arenas with the aim of enhancing intercultural
dialogue and bringing about mutual benefits connected to security, stability, and prosperity” (The
Value of Cultural Relations). Cultural relations include all the diplomatic actions that encourage
the exchange of culture. This practice promotes understanding and empathy between states and
can lead to better collaboration and diplomatic relationships.
These practices do not happen by chance. The United States uses the Public Diplomacy
track of the Foreign Service to “communicate with a through a variety of media to promote U.S.
interests abroad, which may include explaining to foreign audiences how American history,
values and traditions shape U.S. foreign policy” (Public Diplomacy Career). These officers plan
and manage events to promote cultural diffusion and educate foreigners about the United States
with the goal of strengthening relationships between states. These events can include educational
exchange programs, guided tours and trips, academic initiatives like the Fulbright program, and
local events to learn American culture.
Soft Power
Joseph Nye Jr. defines power as “the ability to influence the behavior of others to get the
outcomes one wants” (Nye). Using this definition, Nye went on to develop the concept of both
soft and hard power to explain the ways that states compete for influence. Hard power represents
the traditional methods of influence, the “carrot or stick” approach. Soft power represents the
“second face of power” as it is built on indirect influence. Nye defines soft power as “the ability
to obtain outcomes one wants through attraction rather than coercion or payment. Rather than
weapons or money, countries employing a soft power approach use assets that promote
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attraction. Soft power is possible when countries have an attractive culture or values. Others see
the assets as valuable, and are more willing to be influenced. These desirable assets can come
from a country’s culture, political values, and foreign policies as long as the factors are seen as
legitimate (Nye).
The concept of soft power is made possible by the changing international environment
we live in today. Communications technology has improved, providing additional information to
individuals and limiting the ability of countries to control large groups. At the same time, trends
in social movements make the use of military power more costly and can damage a country's
international reputation. Additionally, there are more advanced democratic nations and groups of
countries with a long history of peace, which demonstrates the importance of soft power in areas
with low chances of conflict. Lastly, the world economy is more connected than ever, and war
would threaten this economic stability, providing further incentives for cooperation among
countries.
Public diplomacy and soft power are ineffective on their own. When a country has
desirable qualities, public diplomacy programs work to make sure the audience in other countries
has the opportunities to learn about the desirable assets. Public diplomacy alone would result in
the promotion of desirable features and cultural education, with no plan on translating the impact
into power. Countries with advanced public diplomacy programs are better suited to shift to a
soft power approach to international relations. When combined, these concepts can result in a
powerful and modern international relations strategy.
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Nation Branding
Previous sections covered the important international relations ideas of public diplomacy,
cultural diffusion, and soft power. When combined, these strategies begin to create an intangible
way to identify a country. A set of values, cultural symbols, policies, and laws that come together
to signify the reputation, or brand, of a country. A strong brand opens the doors to a variety of
benefits for the country, including increased negotiating power, economic growth, and the ability
to influence other nations through soft power attraction (Reibstein).
Nation branding is a term, first named by Simon Anholt, used to describe the occurrence
of states using marketing and brand management techniques to manage or change their
international reputation, with the intention of leveraging the new reputation for foreign relations
gain. Anholt has described the concept as a simple observation that “a country’s reputation acts
like a brand image of a company” and a good brand is “important for progress, prosperity, and
good management of the places” (Anholt). The Council on Foreign Relations defines Nation
Branding as “applying corporate branding techniques to countries.” Nation branding can be seen
as the overarching approach to international relations, a new way that states are interacting and
gaining influence. Public diplomacy and soft power serve as steps in the brand building strategy
to optimize brand equity for the country.
Attempts to build a brand for a state can produce a wide range of results. Most obvious is
an improved perception of the state by foreigners. A country perceived to be glamorous or
exciting is likely to experience an increase in tourism and more interest in cultural symbols such
as pop culture. A nation’s brand can also be effective in larger and more formal objectives. A
favorable brand can help a state attract foreign direct investment, facilitate trade relationships,
compete in the private sector, and even to gain a better negotiation stance in geopolitics (Teslik).
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Nation branding works when states think like marketers, using these practices to
influence their “customers.” In the case of a nation brand, the audience or customers can vary.
The quantity and type of influence a state gain from its brand is dependent on who their audience
is, and which countries have become fans of the brand. A state looking to join an NGO may fit
its nation brand to appeal to existing members. Other states may cater their brand to gain
economic and trade relationships. In any case, the customers of a nation brand can include both
the citizens of the country as well as government leaders. Government leaders become customers
of a nation brand because their perceptions of the state can influence international relations.
Their perceptions can be influenced by the citizens in their country as they vote to elect
representatives based on their world view and ideas.
Like the previously mentioned concepts, nation branding represents a new phase in the
way countries interact, fueled by improved communication and technology that allows for more
connections and a greater world audience. Today, nation branding is more than a trend. Public
relations and brand management firms are now employed by governments, proving that nation
branding is here to stay.
Nation Brands Index
In addition to creating the idea of the nation brand, Anholt has become well known in
both marketing and international relations circles for his work comparing countries. He is a
published author and public speaker, often discussing the ways that countries contribute to the
overall well-being of the world and measuring the impact individual countries have on the
international community (What is Public Diplomacy?). His books, Ted Talks, and publications
look at things like how “good” a country is or how reputations compare. He advocates for
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countries taking an international approach to domestic problems in order to have the strongest
results. Anholt is passionate about country reputations saying that nation branding is “the
electorate's most valuable asset.” His work has revolutionized the way states are approaching
policy, introducing strategies that were previously exclusive to corporations to government
boardrooms (Anholt).
Perhaps his most well-known publication is the Anholt-Ipsos Nation Brands Index (NBI).
Created in 2008, the index is meant to compare the reputations of countries based on six
dimensions of national competence: exports, governance, culture, people, tourism, immigration,
and investment (Nation Brand Index 2021).
The exports dimension measures the way the public sees products and services that are
exported from the country in question. If consumers seek out exports from a particular country,
that country will score well on the index.
Governance is meant to reflect the reputation of the state’s government. Results indicate
perceptions of competence, fairness, and the level of action on important issues.
Culture measures the reputational impact of the country's cultural symbols. Scores come
from appreciation for art, film, sports, literature, music, and other visible aspects of culture and
art.
The people dimension reflects on the reputation of attitudes and personalities of the
people who live in the country. Countries with people who are known to have good qualities,
such as being friendly or helpful will score well in this dimension.
Tourism reflects how foreigners feel about visiting the country and its attractions. This
dimension helps to explain how countries known for being vacation destinations can build strong
reputations.
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The last dimension, investment and immigration, is focused on the attractiveness of the
country and its quality of life. If people want to move to the country for work or school, the
country has a better score in this dimension.
The Nation Brands Index provides a powerful tool for governments around the world.
When applied to international relations strategy, policy makers can identify places where the
country’s reputation is suffering and deploy strategies to make changes. The government can use
the data to see what foreigners know about the country and which areas are their best qualities.
Implementing Nation Brand Strategy
In order to develop a nation brand, countries must develop a consistent and well thought
out strategy with the goal of gradually improving brand image over time. This process has three
main components; strategy, substance, and symbolic actions.
The first component, strategy, is defined as “knowing who a nation is and where it stands
today, knowing where it wants to get to and how to get it there” (Anholt). This step requires in
depth study and understanding of that state. This is where publications such as Anholt’s Nation
Brand Index may help a country to assess their current reputation. Additionally, countries must
consider the diverse set of needs and goals held by the country and its people and find a way to
consolidate these into one direction. While the goal must be feasible for the government to carry
out, it must also have high enough aspirations that government leaders and their constituents are
motivated and inspired to make a change.
The second component is substance. Substance is “the effective execution of that strategy
in the form of new economic, legal, political, social, cultural, and educational activity” (Anholt).
The key to this component comes from implementing policies and investments that will drive
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real and measurable change. Anholt is quick to point out the danger of thinking nation branding
is a quick fix. He reiterates that the process is dependent on consistency and high-level changes
to make progress towards an improved reputation.
The final component comes from symbolic actions. These are “particular types of
substance that have an intrinsic communicative power” (Anholt). Like any great marketer,
governments must focus on telling the story of their country. This story must be seen as genuine
and long term. To portray this, the state must take actions that are symbolic of their new brand.
This may come in the form of changing social policies, defending human rights interests, or
allocating funds to cultural values. Policies should be concrete in that they are legally upheld and
formally introduced while representing an abstract concept such as modernity or compassion.
These actions must be things the country needs and will benefit from, as changes made purely
for the sake of the nation brand come off as ingenuine and a waste of taxpayer funds.
These three components make the connection between nation branding and corporate
brand management clear. Replace “state” or “country” with “company” and the components
sound like a modern corporation's brand management plan. In both cases, the subject must start
with an internal and external analysis to understand their perception in the eyes of their audience.
Both countries and companies are most effective at influencing their brand when the changes
come from real substantial changes. Both groups must identify what it is they want their
stakeholders to associate with their products and which symbolic actions will most effectively
lead their viewers to that conclusion.
As much as Anholt believes in the power of the nation brand, he recommends countries
approach the strategy with caution. In a journal titled Beyond the Nation Brand: The Role of
Image and Identity in International Relations, Anholt defines the meaning of brand and how it
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can be applied to countries. He lists three types of brands; the designed identity of a product, the
culture of an organization behind a product, and the product or corporation's reputation in the
minds of its target audience. It is this third definition that the concept of nation branding rests on.
Anholt points out that countries striving for simple shortcuts to a nation brand often end up with
one of the first two definitions of a brand. This is ineffective as it fails to recognize the massive
differences between a country and a consumer good.
Why Nation Branding?
Anholt describes the concept of “competitive identity.” This is the idea that a country's
image or brand is most closely related to the national identity, politics, and economics that make
it competitive (Anholt). This reiterates the idea that policy and measurable change are the most
important factors for a nation brand. Brand decisions must be made in alignment with making the
country competitive and working to implement real changes. Once the new policies start to have
an impact on the country's ability to compete, the nation's brand can start to change.
Opponents of the use of these new international relations practices and tools likely fail to
understand the recent changes to the global environment that make these new strategies effective.
Nation branding often falls under scrutiny because it can be very hard to quantify the result of
these strategies. Developing a new campaign can be expensive and time consuming and results
may be largely qualitative. Additionally, nation brand strategies cannot stand alone and therefore
it is hard to attribute wins to the nation brand strategies specifically. While these challenges
persist, many countries will find that there is risk in not managing their nation brand strategy and
the benefits of implementing marketing strategies at the nation level outweigh the costs.
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Public diplomacy, soft power, cultural diffusion, and nation branding were all developed
in response to existing shortcomings within the international relations system. Globalization and
technology have changed the way we interact with other countries and pursue international
relations strategies. Each of the outlined strategies have powerful potential for the countries that
are willing and able to execute them.
Changing Role of the Military and Warfare
The role of the military and traditional coercive power demonstrations has changed.
Governments understand the implications of starting a major war or using a nuclear weapon in a
world where the United States have become the world's hegemony. Additionally, globalization
means that violence, instability, and war all threaten a country's ability to survive in the global
economy, further discouraging violence and shows of hard power (Nye).
Joseph Nye’s publication on soft power addresses this change in the way countries
compete and interact. While the threat of hard power retaliation certainly persists, countries
compete in other ways as well. The Cold War provides an example of the need for soft power.
For decades, conflict and tension persisted without direct fighting. Battles were won in symbolic
ways. Some battles were traditional hard power demonstrations of military strength and wealth.
Other battles were played out using soft power concepts. While violence and war persist today,
the cost of fighting a war has increased as countries seek to protect their own reputation and
avoid intervention from multinational organizations.
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Changing role of communications
Improved communication technology makes cultural diffusion much easier. Information
is exchanged quickly and effectively as more of the world becomes connected via the internet.
Pop culture often spreads rapidly between countries and provides the opportunity for cultural
exchanges to happen organically and at the level of the individual, with minimal government
involvement. This creates a world where individuals and leaders are more educated and better
understand the cultural nuances of other countries. Individuals have access to more information
than ever before and are therefore much more tuned in to the specific actions of domestic and
foreign governments.
One change in communication that impacts foreign affairs is known as the CNN Effect.
This phenomenon addresses the idea that 24/7 TV reporting changes the way the public reacts to
events. Instant and detailed media reports could “stir publics to demand sudden humanitarian or
military interventions before policy markets had a chance to formulate an official position”
(Roselle). It is important for countries looking to improve their nation brand to understand this
shift. Any action that is perceived to be negative by people around the world will reach them
quickly and is likely be met with demands for action. This theory was tested and proven accurate
when Russia declared war on Ukraine, almost instantly leading to demonstrations of support for
Ukraine and anti-Russia protests around the world.
Internet communications also play an important part in international relations strategy.
The internet acts as a catalyst for world events as it provides a platform for collaboration and
sharing of ideas. This technology has “increased the transparency of governmental actions and
events around the world” (Roselle). Increased calls for transparency in communication can be
both an opportunity and a threat. Governments taking actions to improve their reputation can
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share their successes quickly, earning them additional attention and favorable views of the
country. New technology also means that countries are under additional scrutiny and
stakeholders around the world will be made aware of unpopular actions or policies.
Today many countries have strong symbolic ties to some of their most well-known
brands. McDonalds is considered a symbol of the United States’ efficiency while Nintendo
represents Japan’s innovation. These iconic brands can impact the nation brand and provide a
better sense of appreciation from foreign citizens (Ham). Consumers around the world begin to
associate the state with the same traits and characteristics of these “superbrands”, providing
opportunities for the public and private sector to work together to shape the brand concept.
The connection between a country’s well-known brands and the national reputation is
often made clear by purposely executed campaigns. One of the most well-known examples of
commercial brands working alongside government organizations comes from Spain. The country
created a public-private strategic alliance, known as the Leading Brands of Spain, to work with
brands to create a cohesive direction for the nation brand and the famous commercial brands
(Dinnie). The organization demonstrates the influence of strong brands on a country’s reputation
and economy and rewards the brands that are supportive of government goals. Each of the
member brands must be considered a recognized prestigious Spanish brand, leader in its sector,
and have identification or management of Spanish origin. One of the main association activities
includes “joint projects for the promotion of Spanish brands and country image, both in Spain
and abroad” (Leading Brands of Spain).
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Case Studies
The following section provides an analysis of three case studies to demonstrate the
impact of marketing strategies applied to assist in international relations goals.
Japan
Japan provides an example of the impact of cultural diffusion on building a strong nation
brand and the economic impact of soft power. The country consistently ranks highly on the
Anholt Nation Brands Index, due in part to the country’s ability to export culture and build soft
power. This case provides insight on how Japan has been able to climb the nation brand ladder
and create positive brand associations through culture.
In the 1980s, Japan enjoyed one of the strongest economies in the world, with a greater
per capita income than the United States and a gross national product equal to 10% of the total
world output. The economic “bubble” expanded quickly, driving up real estate prices until it
burst in 1991 (Notehelfer). The burst ushered in a period of deep recession and economic
downturn.
Without the status of economic wealth, the country became known for being “insular and
closed” (Dinnie). Rejections of FDI offers and complicated financial systems made the country
undesirable for business and investment. The country was left with a severely damaged nation
brand and neither hard power nor soft power. Having sworn off war following World War II, the
country turned to soft power to restore their place in international relations (Oi).
In 2002, Japanese Prime Minister Koizumi recognized the country’s struggles and began
to devise a plan to build a new brand for Japan (Guajardo). The goal of the initial project was to
use intellectual property to “improve the image and reputation of Japan and turn it into a nation
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that is loved and respected by people throughout the world, with the focus on the lifestyle and the
overall power of Japan's cultural assets” (Akutsu). A group of Japanese government leaders were
chosen for a task force. This group created formal nation branding initiatives at the national and
regional level to address the damaged Japanese reputation. The task force “examined policy
issues for strengthening Japan’s brand, discussing food culture, local brands, and fashion [. . .] to
develop a strong Japan brand linked to cultural diplomacy versus military or economic power”
(Guajardo).
In 2004, the task force created the Japan Brand Working Group. The group published a
report titled Promotion of Japan Brand Strategy (Dinnie). The report outlined steps for the
country to “foster a rich food culture, establish diverse and reliable local brands, and to establish
Japanese fashion as a global brand.” In the same year, the country created the Japan Brand
Assistance Program. The organization was intended to promote high quality brand development
at the regional level and was a segment of the Small and Medium Enterprise Agency of the
Ministry of Economy, Trade, and Industry (Dinnie). At the same time, Japan’s government
leaders shifted focus to improve public diplomacy work and leveraged the Japan External Trade
Organization to promote economic interests.
Just as important for the Japanese nation brand as government incentives and programs
comes from the soft power attraction of Japanese culture. Literature on the subject refers to this
phenomenon as ‘pop culture diplomacy’ (Iwabuchi). Japan’s natural ability to export culture has
been a hot topic in foreign policy publications. A 2009 copy of the Foreign Policy magazine
featured the headline: Japan’s Gross National Cool (McGray). Following the article, the
movement became known as “Cool Japan” and scholars have studied its impact on Japanese
international relations around the world (The cool japan craze). This movement serves as the
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basis for the academic claims that Japan is a cultural superpower (Nation Branding and Success
of Japan). Japan’s government worked to turn pop culture content into an export amidst falling
economic measures and to promote domestic job creation.
Examples of cultural exports from Japan are abundant. Quintessentially Japanese
entertainment forms, such as manga and anime, have grown in popularity across international
borders. Mandarake Incorporated, a Japanese resale shop offering manga and anime collectibles,
has established an ecommerce site in English to cater to overseas manga fans. The brand also
serves as a tourist destination, offering foreign travelers a glimpse into Japanese culture.
Pokémon, Superflat art, anime, Hello Kitty, and J-Pop all represent avenues for Japan to flex
cultural diplomacy skills.
Many of the nation branding campaigns focused primarily on the success of Japanese
super brands. When Japanese companies succeed around the world, their brands become closely
associated with Japan’s nation brand. Some of the most famous brands to be associated with
Japan include Nintendo, Sony, Toshiba, Toyota, Honda, Hitachi, and Panasonic (Nation
Branding and Success of Japan). These brands are known for being technologically advanced
and successful, implying to consumers that Japan and its people have great technological know-
how. By using marketing to imply that these companies are representative of the business
environment in Japan, the association helps to break down the stigma that Japan is hard to do
business in and encourages FDI.
As Japan’s economy grew, Japanese companies began to gained attention for business
management strategies. Concepts such as Kaizen and lean production were used in Japan and
began to gain popularity around the world. These soft power concepts were a result of the
economic growth and Japan’s brand as an innovative country. Japan had stuck to their promise to
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avoid future wars following the end of WWII, turning to business as their new battleground, a
place to compete and gain power.
Each of these factors helps to support Japan’s nation brand around the world. The best
ways to evaluate the success of these programs comes from publications of nation brand ranking
systems. The most well-known, Anholt’s Nation Brand Index, ranked Japan as the 3rd most
desirable nation brand in 2021. Japan was ranked very highly in the dimensions of exports,
tourism, culture, and people (Nation Brand Index 2021). Similar publications consistently rank
Japan’s nation brand as one of the best in the world. Japan secured the number one spot on
FutureBrand’s 2020 Country Index for the 6th consecutive year (Japan Remains). In soft power
rankings Japan ranked second in Brandfinance’s 2021 Global Soft Power index and fourth on
Monocle’s 2020 Soft Power Survey. Each of these publications provide evidence that Japan’s
nation brand has value and is working to influence the perceptions of people around the world.
Russia
Russia provides an example of the impact of a country’s history on their brand reputation,
the challenge of drastically altering a state's brand, and the instant impact of unpopular choices
on international reputation. The country has struggled to improve the nation brand and faces
developmental hurdles due to the negative brand associations. This case illustrates the
importance of nation brands and how countries adapt their policy and strategy to rebrand.
Countries are often first motivated to pursue nation brand strategies to address some kind
of reputational issue or public relations scandal. Russia is certainly no exception to this trend.
The country’s long history of political instability and economic change give the country plenty of
bad press while frequent change in size and political powers hinder a cohesive national identity.
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Following the collapse of the Soviet Union, the Russian Federation was left to deal with the
reputational damage (Simmons).
In 2013, the Concept of Foreign Policy of the Russian Federation was implemented in
order to “fulfill politically determined and directed national ambitions” (Simons). While this was
not the first purposeful step to improve the foreign policy strategy, this version represents a shift
to increased focus on the nation brand. In a speech at the time of the concept's approval, Putin
stated; “Russia will continue to pursue an active and constructive line in international affairs. Its
weight and influence in the world will increase. [...] The basic principles of Russian foreign
policy remain the same. [...] That means, above all, openness, predictability, pragmatism, and the
pursuit of national interests without any confrontations in accordance with the role of the United
Nations and the rule of international law. [...] The concept focuses on modern foreign policy
tools, including economic diplomacy, elements of so-called soft power, and careful integration
into the global informational space.” (Simmons)
This new policy was meant to focus more on the realistic and pragmatic considerations of
foreign policy, rather than relying on powerful and controversial ideology, as was common
during the Soviet era. The new plan was to ensure Russia was more involved in the world, used
soft power forces in pursuit of national interest, promoted transparency and stability, and became
a helpful force in the international community (Simmons).
These goals represent an early step in the process to become a strong nation brand.
However, it is important to contextualize the state of Russia’s nation brand. People around the
world are unlikely to forget the negative things they associate with Russia. The instability of the
Yeltsin years, combined with dramatic pop culture depictions of soviet leaders, has made Russia
synonymous with corruption. An analysis of the Russian economy revealed commercial brands
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with negative brands themselves, especially in Russia’s gas industry and the infamous gas
disputes with neighboring countries. In order to rebrand, Russia must overcome decades of
negative brand associations.
One way Russia worked to offset its negative reputation has been by joining international
organizations. This represents an attempt to be more involved in world issues and break down
barriers to working with Russia. The country has been a member in the BRIC countries, World
Trade Organization, the Asia Pacific Economic Cooperation, the ASEAN Regional Forum, and
more (state department). The country has been rebuilding connections and trust through
cooperation with the NATO-Russia Council (Relations with Russia). These organizations
represent ways for Russia to participate in world events and work to reshare its reputation.
The country has also worked to build soft power to advance foreign policy objectives and
be seen as a more friendly force in geopolitics. In a 2013 speech, Putin stated, “The correct use
of soft force mechanisms is a priority, such as a stronger position for the Russian language,
promotion of Russia’s positive image abroad and the ability of organic integration into global
information flows” (Simmons). Each of these factors, if addressed well, would allow Russia to
better integrate into the world arena and help to shift the perceptions of global citizens.
All of these complications make Russia a hot topic in nation branding studies. Anholt’s
assessment of Russia can be summarized with the following statement: “So Russia’s task over
the next decades is identical to the task facing most other countries. It doesn’t need to find ways
of making people around the world feel in awe of Russia, impressed by Russia, or even envious
of Russia: quite simply, it needs to find ways of making people feel glad that Russia exists.”
(Simmons). Anholt’s statement represents the core need for Russia to be considered a positive
force in the world, not negative or simply neutral. President Putin has often attempted to prove
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Russia’s positive impact on the world through direct examples. He mentions agreements and
projects that Russia has participated in that have been good for the world.
Speeches from high-ranking leaders and powerful policy changes are helpful in preparing
the framework for a nation brand but do not extend far enough to impact individuals’ perceptions
of a country. People tend to form closer brand associations if they connect with the individuals
who live in the country. For countries like Russia, with an extremely limited tourism industry,
this can become a big challenge. With fewer visitors coming in than many European neighbors,
Russia has fewer opportunities to prove itself to outsiders.
Despite Russia’s rocky start to establishing a new brand, there are some examples of
successful rebranding happening in Russia. One example goes back to 1703, when Peter the
Great established St. Peterburg (History of St. Petersburg Russia). The czar wanted to prove
Russia was more progressive and could connect with Europe, using the city as a “Window to the
West.” The development of the city was part of Peter the Great’s plan to modernize Russia and
came alongside social reforms and mandated changes in people’s appearance (The
Modernization of Russia). Today, the city continues to serve as a source of soft power and
cultural diffusion, welcoming five million foreign tourists in 2019 (Tourist Count).
Another example is the Skolkovo Innovation Center. Developed to be the “Silicon Valley
of Russia,” the program represents “an attempt to tangibly brand the policy of modernization”
(Simmons). A key aspect of the success of this kind of innovation comes from transparency.
Because most of the science done in the Soviet era was kept controlled and secretive, providing
transparency and public information helps to rebuild trust. The whole project is run by a
nonprofit, the Skolkovo Foundation, which is meant to “create a sustainable ecosystem of
entrepreneurship and innovation, engendering a startup culture and encouraging venture
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capitalism (About Skolkovo).” If successful, Skolkovo would bring multifaceted benefits
including a more diverse economy and an international reputation for producing attractive
investment opportunities for foreigners. It is difficult to assess the success of this project. FDI
peaked in 2013, a few years after Skolkovo first opened and in the same year that the foundation
was chosen for the “economic development and innovation economy program (About
Skolkovo).”
Skolkovo projects have been successful, with foundation startups three times more likely
to attract investors compared to non-Skolkovo projects. Additionally, Skolkovo sponsored,
projects, such as VIST Robots, 3D Smile Lab, and TRY.FIT have attracted attention for their
innovation and become successful around the world (Zubacheva). Providing up and coming
products and services around the world helps Russia to build a more modern and technologically
advanced reputation and attract business opportunities.
Russia provides a case study of the impact that a negative brand can have on economic
and diplomatic development. Despite new programs and developments, it is hard for the country
to truly rebrand without changing the perceptions of individuals.
Russia also provides an example of how quickly a nation brand can be damaged. By
declaring war on Ukraine, Russia has quickly become a focus of international news and the
subject of protests around the world. Any progress made by previous nation branding actions is
lost among the masses of information coming from Ukraine.
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China
Perhaps no country in the world is pursuing soft power and nation branding as
intentionally as China. Current president Xi Jingping stated; “We should increase China’s soft
power, give a good Chinese narrative, and better communicate China’s message to the world”
(Albert). Chinese policies and government communications draw a clear connection between
culture and foreign perspectives and international influence. The importance of a soft power
strategy was discussed at length during the 17th National Congress of the Chinese Communist
Party. Hu Jintao, president at the time of the 2007 meeting stated; “The great rejuvenation of the
Chinese nation will definitely be accompanied by the thriving of Chinese culture. We will give
full scope to the principal position of the people in cultural development, arouse the enthusiasm
of cultural workers, promote vigorous development and prosperity of culture more
conscientiously and actively, and create cultural works in the great practice of socialism with
Chinese characteristics, so that the people will share in the benefits of cultural development.”
(Hu Jintao’s)
This focus on development and culture are not new to China. Culture has always played
an important role in China’s rapid rise in power. Much of China’s development can be attributed
to the “Peaceful Rise” policy. This policy pursued growth and development with the promise to
other countries that China’s rise would not create a threat to the international community (Bijan).
This policy addresses other countries’ concerns and attempts to create supporters of China
around the world. Following the developmental success of this plan, China was positioned to be
a strong global force with an established nation brand.
China has deployed a number of tools to market the country to the rest of the world.
Unlike other countries who may pursue soft power as a side project or small sector of policy,
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China has built a well-rounded collection of soft power and nation branding tools, able to
influence large groups and build strong relationships.
One of the most relevant examples today comes from China’s Belt and Road Initiative
(BRI). The BRI gives China a tangible method of spreading soft power by promoting economic
collaboration by building infrastructure networks connecting China to countries in Asia, the
Middle East, Africa, and Europe. Not only does China gain access to new markets, the process of
implementing infrastructure provides an opportunity for Chinese officials to enter a country,
make connections, and show off Chinese products, methods, and efficiency (Albert).
Another important aspect of China’s international relations strategy comes in the form of
education. China aims to encourage cross cultural diplomacy through educational programs. The
Chinese Ministry of Education flexes its influence through a network of more than 500
Confucius Institutes. These organizations operate in countries around the world, often in
partnership with universities, to provide classes on Mandarin, calligraphy, Chinese holidays,
cooking, and other Chinese culture topics. In addition, China has become a hot spot for
international students, ranked as the third most popular study abroad locations in 2017, despite
questions of educational quality (Albert). Scholarships, sponsored trips, international
organizations and more provide China with a direct channel of communication to its
“customers,” emerging world leaders in countries around the world.
While other countries utilize similar programs for education abroad, the case of
Confucius Institutes is unique because of the widespread popularity in the Untied States despite
the lack of a strong alliance. For years, Americans could choose to take classes directly from
Chinese sponsored educators. The centers enjoyed minimal pushback from the United States
until 2009, when the 2019 National Defense Act mandated that American universities choose
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between having a Confucius Institute or receiving language program funding from the
Department of Defense (Legerwood). Institutes around the country were closed due to fears that
the centers were enforcing censorship, surveilling students, and pushing Chinese political
agendas.
One of the country’s closest links to a marketing style strategy is seen in the state’s
aggressive media initiatives. Chinese leaders have created a number of foreign language news
outlets in order to maintain control over media coverage of China and promote the country’s
national interests. Xinhua, the country's primary news agency, operates through 200 foreign
bureaus while the China Daily and Global Times focus on English speakers around the world
(Albert). While this approach is not unique to China, it provides a blatant example of ways that
the Chinese government is working to control media perceptions of China around the world.
Like companies, countries often have objects that serve as brand symbols. When these
symbols are considered to be rare or exclusive to that country or company, they become valuable
or desirable to outsiders. In China, the panda functions as one of these symbols. The panda’s
scarcity around the world creates great demand and a point of leverage for China. Thus, the
concept of “panda diplomacy” was created (Panda Diplomacy and Business). In 2005, China and
Taiwan were in long standing economic negotiations. Eventually, the Taiwanese government
accepted China’s offer to provide a pair of pandas. The event was very exciting, well
documented, and served as a concrete example of countries using brand symbols to gain leverage
in negotiations.
Throughout the COVID-19 pandemic, China has leveraged its marketing and
international relations skills in order to mitigate the negative associations the country faced as the
original source of the virus. The country was quick to export medical supplies and doctors
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around the world, each emblazoned with symbols of Chinese culture. Medical supplies arrived in
boxes covered in Chinese poetry while news outlets showed Chinese doctors exiting planes in
large quantities (Sylvers). This situation represents an often-overlooked aspect of soft power,
countries who are well versed in soft power and nation branding can leverage the skills in the
event of a negative event or bad press.
As previously mentioned, it is difficult to quantify the results of public diplomacy style
efforts. China’s lack of transparency prevents financial or economic analysis of the strategies.
The main goals of these policies are to build relationships and strengthen the brand, both
concepts that are difficult to measure. To try and understand the extent and results of this kind of
strategy, we can look to one of China’s greatest places of influence: Africa.
In the last two decades, the Chinese Communist Party, under the Belt and Road Initiative,
has invested billions of dollars into infrastructure development projects across Africa. While
world leaders have focused their attention on the impact of Chinese development and economic
influence in the region, China’s focus is equally applied to social and human capital-based
developments (Benabdallah). The state has taken steps to build on existing diplomatic
relationships across Africa, working to spread Chinese development principles and form
connections with political leaders.
China regularly hosts leaders, sponsors training, and funds projects to help African
countries begin to implement Chinese style policies. Often these meetings occur as trips to
China, where African leaders are shown all of China’s recent growth and accomplishments.
These trips allow the Chinese government to strategically advertise all of their recent wins and
build relationships and trust with leaders.
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Despite the challenges to quantifying results, some examples of Chinese influence in
Africa suggest that this strategy has had a powerful impact. In a 2021 study done by Foreign
Affairs, 63% of Africans surveyed responded that China’s influence in Africa was either
“somewhat positive” or “very positive” (Benabdallah). The Chinese Communist Party’s
development model has become a popular development tool for African countries, with Benin,
Botswana, Burkina Faso, and Mali all making the Chinese model their preferred model
(Behabdallah). African students who study in China regularly return with a desire to help
strengthen their home countries' relationships with China.
China provides an example of a country that has prioritized nation branding as a part of
its international relations strategy. Despite the success of this strategy around the world, it is also
important to consider places where China’s nation brand is not as favorable. American
perceptions of China have suffered in recent years, with scholars citing Beijing’s increase in
assertiveness and authoritarian policy in 2018 as a turning point in US-China relations (Kim).
Negative associations, political skepticism, and mistrust have all cumulated into a tense and
competitive relationship.
The COVID-19 pandemic only heightened this tension. A research study in 2020
reported that American negative perceptions of China had hit a record high with 73% of
respondents reporting an unfavorable view of China (Silver). This came as a huge increase from
the 2018 report of 47%. This reflects the acceleration of mistrust and disapproval that results
from the COVID-19 pandemic. These tensions were further heightened by fears that the Chinese
government was not transparent in the investigations of the virus origin and disagreements over
how to contain the virus.
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Despite China’s effort to strengthen its brand around the world, the policies cannot
overcome intense tension and competition emerging from the changing world order. If
successful, China’s purposeful and structured approach to brand management could accelerate
the worldwide adoption of nation branding strategies.
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Discussion
Each of the previous case studies were chosen with the intent of showcasing the wide range
of applications of nation branding seen in the world today. Each example implements policies
with the goal of strengthening its nation brand. This upholds Anholt’s argument that nation
branding must be conducted through legitimate policies. They each focus on their own country’s
strengths, finding ways to share their skills and culture with others in exchange for reputational
gains.
While each strategy is connected through shared goals and nation branding theories, each
case is different to show the range of applications. One major difference comes in the reasoning
for pursuing a nation brand strategy. Both Russia and Japan are choosing to improve their brand
to combat a shortcoming. In the case of Russia, the historical associations leftover from the
Soviet Union limits the country’s ability to integrate with the rest of the world. Japan uses a
nation brand strategy to combat economic failures and to build international business credibility.
On the other hand, China’s pursuit of these strategies comes from wanting to gain power in the
geopolitical sphere.
Each case study differs in the way it approaches nation branding and the results. First, Japan
takes a culture-centric approach. Japan’s strategy is dependent on cultural diffusion, sometimes
called “pop culture diplomacy,” and it relies heavily on the attractiveness of Japanese culture
abroad. (Ang) Using culture as an export, Japan can combat the lack of natural resources and
make an economic comeback. Japan is also an example of a country using well-known brands
from the country to build its own reputation as a technologically advanced society.
Second, Russia provides an example of how the strategies described in this thesis may be
applied to a country with a nation brand that is often viewed negatively by other countries.
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Rather than trying to attract attention, the country must apply rebranding strategies to change the
minds of foreign citizens and organizations. The Russian case started with a careful study of
existing brand identities and associations, allowing them to address the ideas that Russia was not
an active participant in world affairs and to demonstrate a more progressive side.
The case of Russia also provides an example of a country who chooses hard power displays
over soft power strategies, undoing years of progress for the nation brand. Throughout the
timeline of this thesis, Russia has declared war on Ukraine, losing any sense of credibility the
country had been building in the eyes of the West. Russia shows that nation branding, and soft
power are dependent on the assumption of peace and can quickly be lost in the face of war or
aggression. The recent events in Ukraine prove that policies implemented to support a nation
brand cannot stand on their own and must be accompanied by policies seen as favorable to
citizens of other countries.
Going forward, the case of Russia will offer an interesting perspective on how much
reputational damage a country can withstand and how that negative brand will impact Russia.
The state’s poor nation brand had previously limited growth potential and prevented
collaboration among other countries. As footage of bombs hitting Kiev covers news stations
everywhere, it is worth considering that Russia has given up on rebranding and reintegrating into
world organizations.
The third case, China, is a valuable example in the study of nation branding and soft power
because of how straightforward the policies related to this strategy are. Speeches from Chinese
Communist Party members contain calls for cultural diffusion and leveraging soft power. The
party’s directed investments into projects such as the Belt and Road Initiative make it clear to
project stakeholders as well as outsiders that the country is making soft power investments and
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working to build a strong nation brand. Like Japan, China has found value in cultural diffusion.
While Japan’s approach to cultural diffusion has focused on the private sector and pop culture,
China has taken a hands-on approach, deploying trained Chinese educators to spread information
and cultural ties around the world.
The Belt and Road Initiative draws a connection between economic policy and soft power
initiatives. The BRI is first and foremost and economic strategy, meant to improve economic
relations and promote trade within Asia and Africa. At the same time, the project allows China to
expand its soft power influence and nation brand. People around the world see China working to
improve infrastructure in less developed countries. Citizens of the partner countries receive
tangible sources of influence, opening a direct line of communication between China and
countries of significance.
China has also leveraged soft power to gain influence in the development of other countries.
The CCP leaders have built strategic relationships in countries of importance, using
infrastructure development to open the door and maintain close contact. This represents the
evolving nature of international relations strategies and has the potential to become extremely
valuable to China.
Following the examination of each of these examples of nation branding, it is important to
draw the distinction of what is and isn’t nation branding. Recent marketing buzzwords like
‘place branding’ and ‘corporate social responsibility’ may have similar connotations to nation
branding jargon. While these concepts may have similar strategies and objectives, both terms
differ from nation branding as they are exclusive to the private sector. While favorable social
policies are likely to benefit a country’s reputation, it would not be an example of CSR.
Countries, unlike corporations, have an indisputable right to take a social stance. Regardless of
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opinions on CSR, social policies are created at the government level and cannot be separated
from the political parties that act on them.
Place branding refers to the practice of promoting some location to make it more appealing to
visitors. While this may sound like nation branding, place branding is rooted in travel and
tourism, working to brand a place as a destination or gaining attention for other business
ventures. A desirable travel destination can certainly support a positive nation brand, so long as
people think more positively of the country because of their knowledge or experience. Despite
the potential overlap in the minds of travelers, place branding is focused on business and not on
geopolitical influence. Place branding can help to encourage tourism and create “fans” of a
country, but the focus is not on strengthening relationships or building influence at the global
level.
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Conclusion
Throughout this thesis, I have explained the academic origins and political applications of
nation branding, soft power, and public diplomacy to draw connections between marketing
strategies applied to a company and the international relations policies used by governments.
These policies represent a new way of interaction between countries that will have major
implications for world power and politics.
Marketing and international relations are not often thought of as a team. Traditional
foreign policy for dominant countries has focused on hard power and building strength through
money, weapons, and political dominance. Today this strategy feels archaic and irrelevant.
Thanks to technology and communication advancements, people are more aware of government
actions than ever before, creating demands for a focus on other factors. Increased access to
media platforms means that people around the world are forming individual opinions about the
actions of other countries. Social activism and human rights issues demand greater attention and
people are willing to denounce governments that are acting in ways they deem unethical.
This new world system opens the doors for a new way of competition and influence.
Governments can now benefit from being likable or impressive. Culture becomes a valuable
export for companies looking to build relationships and encourage admirers. Government
officials learn from more powerful countries and implement policies accordingly.
Today’s governments will benefit from taking the lead of corporate marketers. By
developing a strong brand, countries can build better diplomatic relationships, enjoy favorable
economic agreements, and encourage appreciation and respect for their culture around the world.
