{"id":2412,"date":"2020-06-17T15:15:47","date_gmt":"2020-06-17T15:15:47","guid":{"rendered":"https:\/\/www.bloom-consulting.com\/journal\/?p=2412"},"modified":"2024-12-10T10:33:03","modified_gmt":"2024-12-10T10:33:03","slug":"what-nation-brands-must-do-to-tackle-covid-19","status":"publish","type":"post","link":"https:\/\/www.bloom-consulting.com\/journal\/what-nation-brands-must-do-to-tackle-covid-19\/","title":{"rendered":"What Nation Brands must do to tackle Covid-19"},"content":{"rendered":"\n<p><strong><a rel=\"noreferrer noopener\" aria-label=\"Bloom Consulting (opens in a new tab)\" href=\"https:\/\/www.bloom-consulting.com\/\" target=\"_blank\">Bloom Consulting<\/a><\/strong> carried out two global and independent studies on the impact of the Covid-19 pandemic on Nation Brands together with sister company <strong><a rel=\"noreferrer noopener\" aria-label=\"D2-Analytics (opens in a new tab)\" href=\"https:\/\/www.d2digitaldemand.com\/\" target=\"_blank\">D2-Analytics<\/a><\/strong>.<\/p>\n\n\n\n<p>This article covers the highlights from the first report which was presented by Bloom Consulting&#8217;s CEO, Jose Filipe Torres, during the <a rel=\"noreferrer noopener\" aria-label=\"City Nation Place webinar (opens in a new tab)\" href=\"https:\/\/www.citynationplace.com\/crisis-management-covid-19-pandemic-impact-on-nation-brands\" target=\"_blank\"><strong>City Nation Place webinar<\/strong><\/a> on May 27, 2020. The webinar was also attended by Rebecca Smith, Director of <em>New Zealand Story<\/em>, and by Niall Gibbons, CEO of <em>Tourism Ireland<\/em>. This study aims to better understand <strong><a rel=\"noreferrer noopener\" aria-label=\"the impact of Covid-19 on Nation Brands (opens in a new tab)\" href=\"https:\/\/www.bloom-consulting.com\/journal\/the-covid-19-study-the-impact-on-nation-brands\/\" target=\"_blank\">the impact of Covid-19 on Nation Brands<\/a><\/strong> and on all the dimensions of the <em>Bloom Consulting Brand Wheel\u00a9, <\/em>as well as understanding how crisis management by governments has affected perceptions and brands themselves.<\/p>\n\n\n\n<p>The second report focuses on <strong><a rel=\"noreferrer noopener\" aria-label=\"the impact of the coronavirus on tourist behaviours (opens in a new tab)\" href=\"https:\/\/www.bloom-consulting.com\/journal\/the-covid-19-study-the-impact-on-tourist-behaviours\/\" target=\"_blank\">the impact of the coronavirus on tourist behaviours<\/a><\/strong>, as tourism was one of the most affected dimensions. The objective of this study is to understand the changes in the perceptions of tourists, the new trends in the sector and how the brands can recover through research and the collection of data and information. You can also check its highlights <strong><a href=\"https:\/\/www.bloom-consulting.com\/journal\/how-destination-brands-should-prepare-for-the-post-covid-19\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"here (opens in a new tab)\">here<\/a><\/strong>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Conclusions of the\nstudy on the impact on Nation Brands<\/strong><strong><\/strong><\/h4>\n\n\n\n<p>The pandemic has had a profound effect on institutions, from\nthe World Health Organisation itself, to national and regional governments and\neven the private sector. In the past few months, the international press has\ncompared the ways in which Countries have been managing the Covid-19 pandemic.\nFrom the progression of the disease to the public response, or even the\nbehaviour of citizens, this crisis has put Countries to the test with them\nbeing at the centre of the attentive and vigilant world public opinion.<\/p>\n\n\n\n<p>In general, public and private entities are meeting the expectations of citizens who were positive about the way they have been facing the crisis. However, the study found that 68% of participants said that the crisis is shaping their perceptions of Countries, for better or for worse.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"990\" data-src=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-1024x990.jpg\" alt=\"\" class=\"wp-image-2524 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/990;width:548px;height:529px\" data-srcset=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-1024x990.jpg 1024w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-300x290.jpg 300w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-768x742.jpg 768w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-1536x1485.jpg 1536w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-696x673.jpg 696w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-1068x1032.jpg 1068w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4-434x420.jpg 434w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/1-4.jpg 1864w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<p>When we talk of Nation Brands, we must take into\nconsideration the various perceptions that make up a Countries\u2019 image in people\u2019s\nminds: the way in which governments manage the Country, the Identity and Culture\nof the Country as well as its History and Territory. Over time the combination\nof these perceptions builds an image related to the Nation Brand which results\nin an emotion. This emotion will, in turn, have an impact on the citizen\u2019s\nwillingness to live, study, work, visit, invest, and buy in that Country.<\/p>\n\n\n\n<p>As can be seen in the image, citizens tend to view the crisis\nthrough two lenses: Public Governance (95%) and Identity and Culture (5%). In\nother words, the change in perceptions is related to the response time and the\neffectiveness of government actions: 55% of global citizens say that the crisis\nmanagement has negatively affected the Country\u2019s image, against 13% who believe\nthat the way the Country managed the crisis has improved its reputation. One\nthird of participants (32%) believe that their perception has not changed.&nbsp; <\/p>\n\n\n\n<p>However, this is only temporary as, generally, Nation Brands\nare only affected by crises when they are intense and prolonged and have an\nimpact on the Identity and Culture of the Country.<\/p>\n\n\n\n<p>In order to understand how global citizens view national responses to the crisis we asked respondents to indicate which Countries they considered to be coping better and worse with the Covid-19 outbreak. In general terms, there was a marked difference in perceptions regarding crisis management with Asia having more positive responses and the West with more negative responses.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"924\" data-src=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-1024x924.jpg\" alt=\"\" class=\"wp-image-2530 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/924;width:720px;height:650px\" data-srcset=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-1024x924.jpg 1024w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-300x271.jpg 300w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-768x693.jpg 768w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-1536x1386.jpg 1536w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-2048x1848.jpg 2048w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-696x628.jpg 696w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-1068x964.jpg 1068w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-465x420.jpg 465w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/2-5-1920x1732.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure>\n\n\n\n<p>In order to analyse the ratio of positive to negative\nmentions of the brands, a matrix with two axes was created: the X axis refers\nto the perceptions and the Y axis to the volume of the same. When crossing\nthese variables, the positioning of more than 140 Countries that were mentioned\nin the study were identified. The further to the right the Nation Brand is\nplaced in the matrix the more positive the perceptions are and the further to\nthe left the worse they are.<\/p>\n\n\n\n<p>According to the chart above, New Zealand and Macao had the best\nrates of crisis management despite the low volume of mentions. South Korea had\none of the highest volumes of net positive mentions with a 20:1 ratio to\nnegative opinions. On the other hand, the United States and Italy recorded a\nnegative crisis management rate with a high level of mentions (1:10). It should\nbe noted that most Countries are close to the intersection of the X-Y axis with\nthe example of China showing a polarised opinion regarding its performance.<\/p>\n\n\n\n<p>However, these indicators are inaccurate when it is intended\nto understand the extent to which a positive or negative perception can affect\nthe brand since a neutral proportion (1: 1) is insufficient to analyse the Country&#8217;s\nimage. Thus, Bloom Consulting created the concept of <em>Brand-Nought<\/em> &#8211; the\ncorrect proportion of negative perceptions versus positive perceptions.\nOriginating in the logic of <em>R-Nought<\/em>, the mathematical term that\ncalculates how contagious a disease is, <em>Brand-Nought<\/em> quantifies the\nimpact of Covid-19 or another crisis on the brands.<\/p>\n\n\n\n<p>Although each Nation Brand has its own <em>Brand-Nought<\/em>, the global average of the Covid-19 crisis through the actions of governments in responding to the crisis is -1.8. That is, to neutralise 1 negative perception 1.8 positive perceptions are needed. Only when a Country exceeds its <em>Brand-Nought<\/em> will the crisis have a positive impact on its brand.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"528\" height=\"498\" data-src=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/3.jpg\" alt=\"\" class=\"wp-image-2417 lazyload\" data-srcset=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/3.jpg 528w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/3-300x283.jpg 300w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/3-445x420.jpg 445w\" data-sizes=\"(max-width: 528px) 100vw, 528px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 528px; --smush-placeholder-aspect-ratio: 528\/498;\" \/><\/figure>\n\n\n\n<p>Thus, it was necessary to reformulate the analysis of the\ncrisis to combine the ratio of perceptions with <em>Brand-Nought<\/em>. As the\nimpact of <em>Brand-Nought<\/em> on the crisis will shift the axis by 1.8 units\nalong the axis of the positive crisis ratio (X axis). According to the table\nbelow, South Korea recorded a crisis management ratio (20: 1) higher than <em>B0<\/em>\n(0.9: 1), which results in a positive impact. On the other hand, the USA has a\nnegative crisis ratio (1:10) and a high volume of mentions, needing 2.5\npositive mentions to neutralise a negative mention.<\/p>\n\n\n\n<p>In the specific case of China, the <em>B0<\/em> of 2.9 is higher\nthan the index of positive mentions which makes the results have a negative\nimpact on the Country&#8217;s image despite having more positive than negative\nopinions.<\/p>\n\n\n\n<p>The study revealed that the Countries with the worst performance received more attention than the Countries with better crisis management. This means that negative perceptions have a greater impact than positive ones. Thus, South Korea, Germany and Singapore were the Countries that reinforced their positive reputation thanks to good crisis management, while the USA, Italy and Spain had a greater negative impact on their brand, being considered as the worst managers of the pandemic. Furthermore, the US has a negative impact four times greater than the positive impact of South Korea.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"544\" height=\"502\" data-src=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/4.jpg\" alt=\"\" class=\"wp-image-2419 lazyload\" data-srcset=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/4.jpg 544w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/4-300x277.jpg 300w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/4-455x420.jpg 455w\" data-sizes=\"(max-width: 544px) 100vw, 544px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 544px; --smush-placeholder-aspect-ratio: 544\/502;\" \/><\/figure>\n\n\n\n<p>When crisis management perceptions are affecting a Country&#8217;s\nimage, emotions will generate results or they will impact the dimensions of the\nNation Brand, as stated in <em>Bloom Consulting Nation Brand Wheel<\/em> \u00a9: Tourism, Investment, Talent, Exports and General\nReputation.<\/p>\n\n\n\n<p>However, <em>Brand-Nought<\/em> does not affect all dimensions of a Nation&#8217;s Brand in the same way. The study shows that the most &#8220;sensitive&#8221; or affected aspects are Study and Work (Talent). On the other hand, Visiting (Tourism) and Buying (Exports) are much more resistant to the Covid-19 crisis than the other dimensions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"484\" height=\"464\" data-src=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/5.jpg\" alt=\"\" class=\"wp-image-2421 lazyload\" data-srcset=\"https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/5.jpg 484w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/5-300x288.jpg 300w, https:\/\/www.bloom-consulting.com\/journal\/wp-content\/uploads\/2020\/06\/5-438x420.jpg 438w\" data-sizes=\"(max-width: 484px) 100vw, 484px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 484px; --smush-placeholder-aspect-ratio: 484\/464;\" \/><\/figure>\n\n\n\n<p>The key question is whether the new perceptions that arise\nduring crises will migrate to the image of a Country or will disappear with the\nresolution of the crisis. As mentioned earlier, they are more likely to be\ndiluted over time. However, Countries are losing time and transaction value. If\nthe Identity and Culture of the Country are affected, the <em>B0<\/em> will behave\nwith an intensity 1.3 times greater than if it were affected only by Public Governance.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Takeaways to Nation\nBrands\u2019 structures<\/strong><strong><\/strong><\/h4>\n\n\n\n<p>As we know, the current crisis will not be short-term, and it will have devastating consequences on several sectors. Therefore, Nation Brands must prepare themselves as best as possible for the overall impact of the pandemic in order to guarantee a more solid and cautious structure in the event of a future crisis.<\/p>\n\n\n\n<p>It is necessary to emphasise the importance of the Nation Brands strategy. Everything that is done as a Country, Region or City must be aligned with the answers given by its brand strategy. The Nation Brand strategy should provide answers about what the Central Idea is and how to act accordingly during these extremely difficult and challenging times. Countries, Regions or Cities that own and use a brand strategy prove to be more resilient.<\/p>\n\n\n\n<p>The study into the impact of Covid-19 on Nation Brand\nperceptions leaves the following takeaways that all nations should retain and\nincorporate in their management:<\/p>\n\n\n\n<p><strong>1 &#8211; Calculate the <em>Brand-Nought<\/em><\/strong><strong><\/strong><\/p>\n\n\n\n<p><em>B0<\/em> is necessary to\nunderstand, in a very direct way, how any type of crisis is affecting\nperceptions. Each Country, Region or City must be familiar with the <em>B0<\/em>\nto monitor and assess the impact on the perception of their brand over time.\nThe <em>B0<\/em> is not only applicable to crises like Covid-19, but also to any Nation\nBrand activation project (i.e. campaigns, policies, events, projects &#8230;). It\nis used to assess all dimensions of the <em>Bloom Consulting Brand Wheel<\/em> <em>\u00a9<\/em>\n(Tourism, Investment, Export, Talent and\nReputation).<\/p>\n\n\n\n<p><strong>2 &#8211; The Covid-19\ncrisis has a high <em>B0<\/em><\/strong><strong><\/strong><\/p>\n\n\n\n<p>Although <em>B0<\/em> changes from Country to Country and can be\nused as a reference among competitors, global <em>B0<\/em> is equal to -1.8 which\nis very high and with a &#8220;toxic&#8221; proportion. No one is indifferent:\n68% of global citizens have changed their perceptions of Countries based on\nCovid-19&#8217;s crisis management. All nations were affected, with more than 140\ndifferent Countries being mentioned in the research.<\/p>\n\n\n\n<p><strong>3 &#8211; All brand\ndimensions are negatively affected but with different levels of intensity<\/strong><strong><\/strong><\/p>\n\n\n\n<p>All Nation Brand\u2019s dimensions are negatively affected by\nCovid-19. There is a correlation between the way the government manages the\ncrisis and the transaction value, as well as the willingness to visit, live,\nstudy, do business and buy products. Talent (studying, living and working) is\nthe most affected brand dimension, while tourism and buy from are the most\nresilient.<\/p>\n\n\n\n<p><strong>4 &#8211; It is important\nto understand the kind of perception that the crisis is affecting<\/strong><strong><\/strong><\/p>\n\n\n\n<p>Analysis of the types of perceptions allows us to better\nunderstand the crisis we are dealing with. A crisis of &#8220;Public Governance&#8221;\n(for example, Chilean protests) can have a different impact than a crisis of\n&#8220;Identity and Culture&#8221; (Brexit, for example) and a crisis of\n&#8220;History and Territory&#8221; (as with the forest fires in Australia). The\nperceptions generated by the different crises will definitely impact its\nability to affect the image and the brand.<\/p>\n\n\n\n<p class=\"has-text-align-right\">Published on 11.09.2020.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bloom Consulting carried out two global and independent studies on the impact of the Covid-19 pandemic on Nation Brands together with sister company D2-Analytics. This article covers the highlights from the first report which was presented by Bloom Consulting&#8217;s CEO, Jose Filipe Torres, during the City Nation Place webinar on May 27, 2020. The webinar [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":6045,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[146,82,78],"tags":[173,306,144,278,139,275],"class_list":{"0":"post-2412","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-highlights","8":"category-keynotes","9":"category-our_work","10":"tag-bloom-consulting-2","11":"tag-covid-19-study","12":"tag-nation-branding","13":"tag-nation-brands","14":"tag-place-branding-2","15":"tag-research"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Nation Brands must do to tackle Covid-19 - Bloom Consulting<\/title>\n<meta name=\"description\" content=\"Highlights about the Bloom Consulting and D2-Analytics study on the impact of Covid-19 on Nation 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