INTERNATIONAL MARKETING COUNCIL

PRESENTATION TO THE PORTFOLIO COMMITTEE

PARLIAMENT

24^th October 2006

This presentation is a quick review of the highlights in the annual report year, ending in March 2006. We hope that you have all seen and hopefully admired our annual report! We will also provide a brief update on work done so far during this fiscal and an outline of our future plans.

Suddenly 2010 is a reality. The eyes of the world are upon us and we have a monumental task to deliver. What is the IMC role in that delivery? Simply put, it is the biggest marketing opportunity that we will see in any of our lifetimes. It is our next April 27^th 2004, it is our one off opportunity to change perceptions of the world forever. This is our golden opportunity to showcase a successful country and maybe even a successful continent. With each of the projects we embark upon over the next 189 weeks – for that is how long we have till the opening whistle is blown – we also have to ask ourselves, and what about Africa? This has to be an African World Cup, and that is a challenge as all of the matches are to be played here. But in many ways through communication, this can be achieved.

So, as a country, we need to raise our game substantially and move into a truly global environment. The good news is that from a branding perspective, we are way ahead of where Germany was four years before their World Cup. In fact, they only woke up to the need for a nation brand some 16 months before the tournament – so we have a seven year head start. As part of the 2010 National Communication Partnership, we have just hosted a most successful conference that looked at communication and marketing issues in the build up to 2010. We invited some of the world’s leading marketing minds to share insights with over 400 top communicators and marketers on the communication obligations leading up to the mega event.

Ultimately the gathering was aimed at aligning the messaging behind the nation brand so that every organisation that is going to be communicating in the lead up to 2010 will speak with one voice, and communicate and demonstrate that the country is alive with possibility.

The partnership needs to educate communicators and the broader South African public in terms of Brand South Africa and get them to buy into the big picture that if we all pull together we can change the perceptions of South Africa and Africa. Ordinary South Africans who interface with people from overseas, be they tourists or business people, also have to be sensitised to their obligations to communicating responsible messages that will contribute to a successful world cup and the resulting legacy beyond 2010.

The IMC has now been in existence for 5 years – this month the Marketing Director and myself celebrate that anniversary. When we started five years ago I do not think that anyone could really define exactly what success would look like. Five years later I believe that the small team at the IMC have put flesh onto the original mandate, and have made it a vital part of the South African landscape – we would like to think that our work has made a difference to the mood of our country and that we have started the long journey to changing global perceptions.

The task has evolved over those five years to become more encompassing that we ever imagined. Now, we are beginning to see Provincial brand alignment, with Gauteng, the Eastern Cape almost complete, and with North West and Mpumalanga beginning their process. This task now becomes urgent as uniformity of message, of look and feel is essential before 2010. Essential in terms of looking professional but also essential in terms of leveraging budgets from Treasury – all contributors to the perceptions of South Africa should be able to leverage off each other’s spends and should be able to support each others’ media exposure.

The highlights from the annual report demonstrate the strategic intent of the work of the IMC – there is less tactical and new work, and more entrenching of work already begun. Consistency is the most important element in building a brand, and no matter the odd dissenting voice or difference of opinion, we must continue to build a nation Alive With Possibility – to bring that to life, to demonstrate it, to inspire our people to deliver on that notion – for indeed it is our differentiating factor.

We are beginning to build on the theme that it is indeed our people that make us different. They were the central force of our Alive With Possibility Video completed last year and they are the mechanism we intent to use to tell the South African Story. Through the telling of the stories of the remarkable people of our nation, we will demonstrate that we are a sound investment destination, that business opportunities abound, that the constitution is world class, that our infrastructure can support development and that the talent of our people will allow us to achieve more than most other nations can ever hope to dream of.

(Show heroes video)

MISSIONS

After some informed research conducted amongst various Government departments who all embark on outbound missions for various reasons, we have decided that to achieve a consistent high standard of presentation, a formula for successful missions and a sharing of resources, human and financial is more beneficial than the IMC embarking on our own missions, although this strategy may not prevent us from doing so in the future. But for now, we are working very closely with Dti and DFA to ensure that a formulaic approach is taken to these missions, that clashes of various SA teams leaving the country does not occur and that the content is packaged with a consistent look and feel.

We are also in discussions with both of these departments to share the resource of a senior brand manager who will be dedicated to that department, and will reside within the IMC. The brand manager will take content direction from the Department and will take packaging guidance from the IMC – so slowly all DFA and Dti collateral will start to carry the Brand SA stamp, and will be of a consistent high quality.

Our first out bound mission will be to the USA in February of next year accompanying the Dti in a high level engagement with foreign investors.

In fact, this has, on reflection , been the year for establishing partnerships. The knowledge sharing and sharing of information and collateral is becoming entrenched.

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 now trained all of the African language stations of the SABC, we are working our way through the entire Mikes Kitchen franchise network, we are working with ACSA staff at OR Thambo International and shortly we begin a full scale intervention throughout the Edcon Group – a project that will take three years to complete and will engage 30,000 staff.

COMMUNICATIONS RESOURCE CENTRE (CRC)

Over the past three years, the services of our Communication Resource Centre and Information Resource Centre have been extensively marketed and made available to Government communicators as part of implementing one of the founding strategies of the unit.

The CRC 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.

The CRC has worked closely with the Chair of the Justice, Crime Prevention and Security Cluster on how we can assist SAPS and the broader Cluster in the projection, internationally and domestically, of the successes being recorded in the fight against crime.

As a result, the CRC recently produced a package of factsheets containing positive indicators and illustrations of the progress being made from the SAPS Annual Report. This information has been packaged for use by SA Tourism, Business Against Crime, The Homecoming Revolution and the Department of Foreign Affairs, which has distributed the factsheets to diplomatic missions.

Please find an updatable copy of Talking Points on the IMC web site – this is a short document to provide all members in our leadership with short concise talking points, with the supportive facts on all issues about the country.

The CRC recently partnered the Department of Foreign Affairs in the development of a communication strategy and detailed media plan for South Africa’s recently-announced assumption of a Seat on the United Nations Security Council.

Similar attendance of, and participation in, other cluster meetings further consolidated relationships with government departments represented in these clusters. These included the Social, Justice Crime Prevention and Security, as well as the IRPS Cluster. The CRC was able to advise on the importanceofo including international media representatives in their media plans and to develop dedicated strategies aimed at international media.

Additional activities included interaction with GCIS that resulted in the CRC completely taking over the monitoring of international media coverage and the supply of full-text versions of the coverage to GCIS on a daily basis. We also provided comprehensive international media monitoring for our missions abroad that do not have adequate infrastructure for this purpose.

During March 2006, the CRC participated in a successful mission to China, organised by SA Tourism. The visit originated from a concern relating to reporting on crime perpetrated against Chinese citizens. It was felt that this was having a negative effect on SA Tourism’s ambition to grow Chinese arrivals in South Africa beyond the current, approximately 52 000 a year. Delegates had a series of meetings with news, travel and trade media as well as other senior officials during the visit.

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. The role of IMC’s Washington office is identify to challenges to the brand and opportunities for enhancing it; help develop brand-supportive strategies and messaging that resonates with key US audiences; and work with stakeholders to ensure the messaging is as widely and effectively disseminated as possible.

Today, South Africa is increasingly portrayed in popular US media as a highly desirable place to visit. There is growing recognition of South African wines and other products. Awareness of South Africa’s technological edge in fields from astronomy to nuclear energy is rising. The strength of South Africa’s economic management is increasingly appreciated by investors, thought-leaders and policymakers. In all of this, IMC is playing a role.

Less positively, the majority of South Africans continue to be seen as victims in need of outside assistance. While media coverage is becoming more positive and reflective of the countries transformation, it still focuses heavily on HIV-AIDS. The implementation of BEE, corruption, and crime continue to be concerns among corporate decision makers.

In summary, the US jury is still out on whether the “miracle” is sustainable. For that reason, IMC Washington loses no opportunity to stress that what the South Africa has achieved over the past decade and a half is no miracle but an expression of the extraordinary strengths and capacities of South Africa’s people.

Operationally, our Washington office’s functions over the past year can be broken down into three broad areas:

1. Empowering stakeholders in support of the brand.

The country manager continued to research and draft speeches and presentations for the Ambassador, consuls-general and other mission staff.

2. Identifying and mobilizing partners

IMC Washington provided advice, contacts and collateral to South African Chamber of Commerce in America (SACCA), a new organisation launched in New York to promote investment in SA and help South Africans enter the US market.

3. Interaction with media, think-tanks and other thought-leaders

IMC Washington conceived and helped organise the SA Solutions tour which brought a delegation of respected US science writers to South Africa last November to meet top South African scientists and engineers. As hoped, the tour resulted in positive, brand affirming articles in prestigious publications such as the Washington Post and Scientific American.

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.

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.

We are starting to build a SA Diaspora Initiative in UK.

Our focus for the United Kingdom in the year under review has been on building strategic partnerships with SA stakeholders as well as UK organizations which provide opportunities for leveraging support for South Africa and its role as a leading African nation..

Media interventions have been most effective at the strategic level – a good example being the interaction between the IMC delegation and the Economist last June, followed by relationship-building with the new Africa Editor and collaboration on the five-yearly Economist survey on SA published on April 8, 2006.

The UK Country Manager serves as committee member on the SA Business Forum a UK-driven pro-investment SADC lobby group .The Forum has proved to be a very useful forum for promoting SA and SADC issues and getting messaging across.

Seen from the UK, the view of South Africa is still an overwhelmingly positive one on balance and there is growing acknowledgement of the country’s crucial role in Africa as well as its obvious position as a gateway to investment in Africa.

I am pleased to announce that our new Country Manager for India, Mr Govin Reddy, assumed his duties in Mumbai at the beginning of September this year. We are grateful to the Tata Group for having graciously allowed us to set up office at their headquarters in Mumbai.

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.

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

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 a major impediment to business and investment. 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.

The domestic perception research recently concluded reports that 85% of respondents say that our logo and slogan give them a sense of national pride and almost 80% say that Alive With Possibility gives them a sense of confidence in the future.

Our next major study will be to investigate “foreign companies doing business in South Africa insights study” and we are putting final touches on Global Brand Tracking Study brief.

Future

2010 gives the IMC a wonderful opportunity to finally become the PPP that was imagined years ago. We are forming partnership relationships with major SA companies who want to build the nation brand up to and beyond 2010. These companies will invest money in a domestic mobilisation campaign that will add substantially to the current work of the IMC, allow us to start all sorts of exciting projects that would otherwise be out of our reach from a budget perspective, and allow us to re-direct Treasury funds to International mobilisation. The first announcement of the founding partner will be made in the coming weeks.

HOUSEKEEPING

In terms of housekeeping, we are proud to report that the International Marketing Council has received a clean audit report for the third year in a row. This year we can go even further to announce that the audit report was without any Emphasis of Matter.

We had four board meetings and the same number of Exco meetings. Our Audit Committee sat four times in the year under review. This does not include the annual Internal Audit, which is outsourced from GCIS.

A risk management workshop was held to develop a Risk Management Strategy that would deliver a systematic and disciplined process of identifying, analysing and mitigating risks that may adversely affect our ability to realise our corporate goals and objectives.

On the staffing front, as at year end, we now have 31 staff members, 81% of which are PDI. Females made up 61.3% of the staff complement.

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. For example, we are doing branding work to align the SA Post Office in the early days of December. The Post Office will reflect Brand SA in all of its communication. We are finding creative and mutually beneficial ways of enlisting support for Brand South Africa by corporate South Africa. We are working vigorously to persuade corporates to reflect Brand SA values in their communications. There has been considerable progress in this regard and we see a major opportunity in the coming year to develop this work.

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.