INTERNATIONAL MARKETING COUNCIL PRESENTATION TO THE PORTFOLIO COMMITTEE

PARLIAMENT

5TH NOVEMBER 2005

This presentation is a quick review of the highlights in the annual report year ending in March 2005, plus an update on work done so far during this fiscal.

More and more of the world’s top media have recanted from their gloomy attitudes towards South Africa and now see a society with solid economic foundations that is transforming in a host of different ways.

In our fourth year we are also getting into the rhythm of our in-bound and outbound missions, and our advertising decisions are based on tested and approved strategy.

Whilst the first two years of the IMC were spent laying the foundations. We defined and refined the strategy for the mammoth task confronting us, evaluating what we do and do not do, what were the quick wins and how we could optimise the use of our budget.

The IMC has gone to great pains to realistically establish present perceptions of our land among different stakeholders. Now we know the reality of those, our challenge is to move these to desired perceptions.

Having undertaken thorough ongoing research of the landscape, we have begun stakeholder engagement to kick start alignment and co-ordination.

MISSIONS

As you will have read in our annual report, last year the IMC took 40 leaders from business and government on an investment mission and literally wowed New York, where the New York Stock Exchange held a South African day and African American businesspeople in Harlem embraced our team and our goals with unbelievable enthusiasm.

We also visited, Chicago and Atlanta with the primary aim of marketing South Africa in the world’s largest economy.

The mission showcased some of the business success stories of South Africa, and encouraged bilateral trade and investment by focusing on the significant socio-economic growth, development and progress achieved by South Africa during its first decade of freedom and democracy.

Overall, the week-long mission engaged close to 2 500 US business decision makers, who gained a better understanding of South Africa and the excellent opportunities the country presents as a place for investments, as a trading partner and as an excellent choice as a holiday destination.

It also put into perspective the transformational path that the country is taking in addressing some of the legacies of our history, and built confidence in the country’s current and future business leadership. We showcased the depth of business talent in this country.

We had breakfast with Oprah Winfrey and the editors of Forbes Magazine.

This years mission was to Germany and London. We took a smaller group of 20 people, and ran more focused seminars encouraging people to do business with South Africa.

My personal highlight was the visit to the Economist – not requesting an editorial response, but more a considered and up to date starting point from which to view our country and our continent. I do not think that I am assuming too much to say that we changed some minds that afternoon.

My other highlight was singing the National Anthem in full voice in the Daimler Chrysler dining room after our host had said that that is what he loves most about South Africa. Herr Kleinert knew all of the words – a humbling and moving experience.

ADVERTISING

The marketing team supported the Europe Mission by creating an outstanding piece of work to be flighted on CNBC Europe. 5,4 million Europeans business leaders were exposed to South Africa as a country that is "Alive With Possibility". In addition, we reached 4 and 5 star hotel rooms all over Europe, as well as banking and financial trading centres. This campaign also included the flighting of our advertising in 10 leading international airlines for the whole month of June.

As a spin-off to the campaign, we secured unpaid for coverage of South Africa during the G8 Summit in July. This focused on profiling South Africa as a gateway to Africa. This five minute report featured interviews with South Africans who were part of the delegation to Europe as well as footage of South Africa compiled by both the IMC and SA Tourism.

Needless to say, ten Years of Freedom presented an excellent opportunity for this country to "make like Hugh Masekela" and blow our trumpet.

We developed a new piece of celebratory communication to avoid embroiling our positioning in the politics of an election. We asked people to "Join the rhythm of this nation." The TV spot featured irresistible foot-tapping African drums and joyous dancing led by Tlotlego Tsegai, a little girl born on Freedom Day, April 27, 1994.

The media rallied around our theme. They partnered with us, spreading our message that each one of us has a role to play in South Africa’s success, growth and marketing.

We engaged global thought leaders by placing surveys and supplements on South Africa in international media. The International Herald Tribune profiled South Africa "Alive with Possibility" on three consecutive days.

We also ran a supplement in The Times of London.

During the Davos World Economic Forum, we collaborated with Time Magazine to cover-wrap 2250 copies for the influential delegates attending the conference.

We also commissioned a survey on South Africa in the Independent’s World Report.


We have just added 10 more taxis to the streets of London which are much more colourful. This will raise awareness of South Africa’s offering to international traders, investors and travellers, with back-up information on our web portal,
www.southafrica.info.

The South Africa Story Chapter 2, is complete, and presented to you here this morning.

From an advertising perspective we continue to build brand presence, visibility and share of voice on the global stage. Over the next few months we will be doing the following:

Additional Television advertising burst on CNBC Europe to increase the frequency of exposure to the South African message amongst European business opinion makers. This is scheduled to run from mid August through to end of January 2006.

Print advertising burst in The Economist (European edition) which started in mid August 2005.

Start of airport advertising at Heathrow in October to act as reminders for travelling opinion makers.

We supported the Formula A1 racing that kicked off at Brands Hatch a few weeks ago. This is a country versus country race that will also be held in Durban in February 2006. Our country logo is on the car and we will have outfitted the pit staff in our Alive with Possibility shirts and apparel. We anticipate global TV coverage for this event.

WEB

Our website, www.southafrica.info, is soaring – it now reaches 1,6 million page views a month, 11 million hits. The website published dedicated web pages on various landmark events in South Africa, highlighting related news, features, information and links. 16 Days of activism against abuse is the latest one, up now.

PUBLIC RELATIONS

There was evidence aplenty during the year of improving sentiment. One could discern a gradual improvement in the streets of our land as housing, water, electricity; telecommunications and broadcasting services reached millions who lacked them before.

On May 24 2005, the London Financial Times was moved to report that South Africa is "swept up in a mood of optimism". Reporting on soaring property prices, low inflation, 23 consecutive quarters of growth and large direct investments by Barclays Bank and General Motors, the Financial Times added that "manic cheer reflects growing confidence in the new South Africa."

Our PR campaign has gone particularly well over the past months. During June we focused on Youth Day and its related activities. We extracted youth-related findings from the FutureFact Survey and incorporated them into a press release, whose overall angle was that South African youth were now more optimistic than ever over the future of South Africa and the direction in which the country is headed. This spurred an unprecedented level of media interest, with coverage in all media platforms. The value of coverage generated amounted to R750 900. This is the highest value of coverage amassed for any one campaign for the IMC.

 

The European Mission was another project which aroused media interest in the International Marketing Council. A press release was drafted to announce the advent of the mission and give out the important details around the undertaking. Interviews were arranged with the IMC CEO and Chairperson, as well as some of the delegates. Media interest continued during the mission and afterwards, with coverage to the value of R367 100 being generated.

OTHER PEOPLES EVENTS

In March 2005, Harley Davidson owners from South Africa and a strong contingent of international riders took to the streets to rally support for Women Against Child Abuse in a rally dubbed 'Harley on Safari'. The International Marketing Council was there in full force, kitting the riders with South African flags, tattoos, "Alive with Possibility" badges and t-shirts. The IMC also supplied the largest South African flag in the country, which hung at the Menlyn Park Shopping Centre, the final registration point for the last leg of the rally. Over 2000 riders from all over the world participated in this event.

PARTNERSHIPS

We have been asked to share our country-branding knowledge and experience with other countries, including Brazil ,India, China, Kenya, Zanzibar and Tanzania. We believe that Brand South Africa is being used as the template for best practice in many countries including Mexico and Poland, as they begin their nation branding initiatives.

One of our key deliverables was to inspire brand alignment. We wished to get all stakeholders singing off one hymn sheet. The SA Tourism brand key has been defined. Their slogan is "Its possible". We are in the final stages of completing the dti Business brand, whose slogan will be "Unlimited Business Opportunities". City of Cape Town is aligned, positioned as a city with "unlimited possibilities, outstanding opportunities", and we have started working with the Gauteng Province, the Eastern Cape and the Northern Cape on their provincial branding.

TATA – We have launched a TV commercial welcoming the Tata group to South Africa, for which they are paying. They have committed over R1 million to the campaign.

VODACOM – We produced 4 Corporate Social Responsibility showcasing the country’s brand values. Vodacom have committed to spending R2 million with us this year.

EL CORTE INGLES a Spanish retail chain ran South Africa month. We partnered DTI and SAA in this massive exercise.

WORLD ECONOMIC FORUM – one of the major discussion issues at this years summit was "re-Branding Africa" – we have driven this agenda item and will be very much part of the development of the theme.

BRAND CHAMPION PROGRAMME

The aim of the Brand South Africa inductions is to mobilise national pride among the people of South Africa. We have done this via the Brand Champion Programme by telling people about the brand which has been developed to promote the country, including the core brand message (Alive with Possibility) and the supporting values shared by all South Africans (ubuntu, perpetual optimism, a can-do attitude, etc). 

 

We have then provided the opportunity for the participants to share inspiring stories drawn from their own lives, which reflect these values. We close by getting the delegates to pledge to be ambassadors for the country in all their interactions with fellow South Africans, tourists, traders and investors.  

The Brand Champion programme is gaining momentum. We have had engagements with SAA at their senior management conferences; we have trained 1000 police staff members from the Johannesburg Metro Police Department, and taken the programme right through Netcare 911 who will shortly display the South African flag on all of their ambulances. The flag will become an integral part of the Police uniforms and the Ambulance personnel uniforms. We are also going to run the programme throughout the SABC radio editorial team, the customs officials at the major airports and throughout ACSA.

COMMUNICATIONS RESOURCE CENTRE

The support structures of the Communication Resource Centre (CRC) and the Information Resource Centre are proving to be an invaluable resource. The CRC produced 323 daily reports, 80 general sectoral reports and 11 special reports on foreign delegations visiting South Africa, the State of the Nation, and 2010 Soccer World Cup.

It is anticipated that one of the implications of the IMC’s new stakeholder relations strategy will be the extension of CRC services to key communicators in the private sector and civil society groupings.

One of the things we are most proud of is that the Department of Foreign Affairs now distributes the CRC’s daily Foreign Coverage report to South African diplomatic missions throughout the world.

The CRC’s monthly focus on international coverage of tourism in and to South Africa is widely used by provincial tourism promotion agencies and tourism businesses as part of their marketing communication plans.

The weekly International Communication Environment report is formally incorporated into the GCIS Secretariat’s weekly report on and discussion of the national and international media environment.

These services are supplemented by support to stakeholders in identifying and capitalising on opportunities to develop communications approaches that would assist the IMC’s mission to build a consistently positive reputation for the country internationally, and to expand South Africans’ own awareness of our achievements and infuse Brand SA messages in communication initiatives.

Country managers Simon Barber and John Battersby routinely advise the CRC of forthcoming opportunities or challenges in the media environment, and variously assist in or drive the formulation of appropriate communication in their respective markets.

In terms of stakeholder contact, the CRC was recently represented at a discussion between senior GCIS officials and SAPS communicators, and two Xinhua correspondents. The discussion ranged over Xinhua’s focused interest on incidents of crime in South Africa involving people of Chinese origin. The CRC provided a media monitoring report on Xinhua coverage and contributed recommendations to the discussion on how Xinhua could be assisted in its coverage of crime, and be invited to develop a broader interest in South African issues.

Subsequently, the CRC had a productive discussion with the Chair of the Justice Crime Prevention and Security Cluster on how the unit CRC could assist SAPS and the broader Cluster in the projection, internationally and domestically, of the successes being recorded in the fight against crime.

Representatives of the Department of Foreign Affairs, which is restructuring its media monitoring operations, recently consulted the CRC, on how existing Rapid Response monitoring and analysis could supplement the DFA’s suggested efforts. The meeting also looked at how existing products from the CRC could be adapted to satisfy DFA requirements. Further discussions are due to follow.

We also participate in the Economic Marketing Forum, the National Communication Partnership for World Cup 2010 and other fora to provide input for continuous strategic guidance to the Unit.

COUNTRY MANAGERS

The US country manager has experienced a busy and productive year, during which sentiment towards South Africa warmed appreciably. Some of the highlights of the Washington office were:

This office assisted the embassy and consulates with messaging and presentations to diverse audiences, including business groups, institutional investors, government officials, congressional staff, academics and NGO's.

IMC drafted and placed rapid responses to negative news articles and columns in major US newspapers, including the Washington Post and the New York Times.

We organized a public diplomacy workshop for mission staff and assembled a group of prominent US practitioners to share insights, experience and "tradecraft".

We delivered a presentation to senior members of all SA missions in the US on the importance and techniques of consistent messaging, resulting in growing IMC collaboration with the New York and Chicago consulates.

The IMC revamped the embassy's web site, pending recommended rationalisation of embassy web sites worldwide.

We consulted on and re-designed the embassy newsletter.

This office helped the presidency to design and implement its communications strategy for the Sea Island G-8 summit, arranged media interviews and helped to prepare and place editorials.

The London office has intervened reactively to a number of negative stories in some of the UK’s most influential publications.

We have liaised closely with journalists on the Economist, the Economist Intelligence Unit, the Financial Times, CNN, Channel 4, Sky and much positive publicity resulted.

Meetings were arranged for presidential spokesman Bheki Khumalo with BBC, Hard Talk and Sky during a short visit in March when we discussed the G8 Media strategy.

The London representative has also tried to foster a more positive image for South Africa through both public speaking and private interventions at meetings of influential groups and people.

The BBC Hard Talk interview with IMC Chair, arranged by UK Country Manager, was an excellent example of how South African thought leaders can hold their own with the world's best. This is the toughest of interview forums and a leading SA business voice added significantly to the SA brand.

Visit of Public Enterprises Minister Alec Erwin and two-day IMC investor programme. The intense two-day program organized by UK Country Manager provided six encounters with carefully-assembled players in the leading banks, existing and potential UK investors and institutional investors. Feedback from investors (detailed in country reports) and impact of Minister's messaging on the economy and SA's wide-ranging infrastructure plans made a major contribution to increasingly positive perceptions of the SA economy in the City of London.

We are starting to build a SA Diaspora Initiative in UK. And we partnered with the Terence Conran shop launch to showcase South African interior design.

This week we have embarked upon our in-bound Science and technology mission with 6 top writers from the US. We will be showcasing a wide range of South African innovation including the SALT telescope, the PBMR and rainmaking techniques.

Research

Coming to research - To assess external perceptions we conducted the second International Perception Audit, a tracking exercise with the investment, trade and tourism industries internationally.

In 2004, the selected target countries were the UK, the USA, Germany, France, China, Japan, and other European and African countries.

We used a web-based questionnaire and in-depth interviews drawn from foreign embassies, trade councils, foreign chambers of commerce, and international companies doing business in South Africa.

There were many aspects on both the positive and negative sides. South Africa was seen to enjoy a favourable risk profile. Its macro-economic policies were viewed positively, its advanced infrastructure made it attractive as a country in which to conduct business and we are seen as a nation that finds solutions to hard problems.

Generally, confidence about prospects for South Africa has increased from a year ago.

A number of negative perceptions were revealed. Crime is seen as an impediment to dealing with South Africa. Regional instability hampers investment decisions. In addition, concern was expressed about labour competence and the inflexibility of labour laws. There were relatively few negatives in regard to labour costs.

The four pre-requisites for a country wishing to attract investment are: democracy and stability, sound macro-economic policies and developed infrastructure.

Important considerations for investors include labour relations, cost and productivity, the reputation of leadership, fluctuations in exchange rates and the technology base.

I have included in your pack the top line results from the research on the communications that we have done in the past few years. The results are exactly as we would have wished

We are currently in field with a domestic mood tracking study, national perceptions audit and stakeholder perceptions survey.

We are ready to go to field with "foreign companies doing business in South Africa insights study" and are putting final touches on Global Brand Tracking Study brief.

 

HOUSEKEEPING

In terms of housekeeping, we are proud that the International Marketing Council received a clean audit report for the second year in a row. We will still have to improve some of our systems and our tax exemption remains a key difficult issue for us. But we are managing the requirements to the best of our ability.

In conclusion:

As the IMC ought to be a public-private partnership, we intend to place more emphasis on bringing the private sector into line with Brand SA’s programmes. We need to find creative and mutually beneficial ways of enlisting support for Brand South Africa by corporate South Africa. We should work vigorously to persuade corporates to reflect Brand SA values in their communications. There has been considerable progress in this regard, but efforts can still be intensified.

Another area of focus will be to secure alignment of government departments with Brand SA values. Ultimately, we envisage everybody involved in marketing activities for South Africa speaking with one voice and reflecting the possibility that is so alive in our essence.

The whole IMC team feels privileged to market our country. We are aware that millions of South Africans also feel proud of their country and envy us our job of spreading the good news. The task is enormous and we need all of the ambassadors that we can mobilise to gain South Africa its rightful place as a leading nation of the world.

Together we can create the vision that we are indeed a country that is Alive With Possibility.

 

PERCEPTIONS ON SOUTH AFRICAN BRANDING COMMUNICATION INITIATIVES BY THE IMC

FINDINGS

Today I woke up

  1. The advert shows how far South Africa has progressed since 1994 and instils a sense of success.
  2. Encourages South Africans to be part of the new South Africa with changes and possibilities.
  3. Makes one feel proud to be part of the South Africa and inspires them.
  4. The part that Baby Jake/Josia Thugwane say "yesterday I was digging the gold but now I’m wearing it" shows that he’s come a long way from the old South Africa to now.
  5. South Africans should stand and work together as one nation and promote a sense of unity and non racial South Africa.
  6. Inspires South Africans to be who they want to be and to recognize possibilities for improving their lives. Encourages South Africans to have a will to do things for themselves and not to underestimate their ability to do things and succeed.
  7. Helps people to trust in themselves like figures in the advert. They as well can succeed in what they want to do as long as they have a will to do something.
  8. It teaches people to work together.
  9. "I woke up to a dream" which means before we were dreaming of such a place to live in and today we wake up in it.

Rhythm of the Nation

  1. There are possibilities in life for one to succeed regardless the odds that one might face in life.
  2. It appeals to all South Africans to get together and build one united nation.
  3. It brings pride to South Africa because it tells you that whoever, even if what colour you are, you can be proud to be South African.

Alive with Possibility Radio Advert

  1. It reminded me that something small can yield big results.
  2. It teaches you that you should never just sit and say I can’t find work; there is something that one can do.
  3. The advert motivates people to improve their lives in a successful manner.
  4. It talks about how sometimes even when you fail in life you should not give up.