Strategic Plan for 2009/10 – 2011/12Approved by the Board, 6 May 2009

International Marketing Council of South Africa

STRATEGIC PLAN

2009/10 – 2011/12

Approved by the IMC Board on 6 May 2009

INTRODUCTION

The 2009/10 – 2011/12 strategic plan and budget framework of the International Marketing Council of South Africa (IMC) was approved by the IMC Board in July 2008, and submitted to the Executive Authority via GCIS on 1 April 2009, as required by the PFMA. However, that was before the strategic Review of the IMC was complete, and many significant changes to the external environment. This revised strategic plan proposes a departure in a number of key areas from previous plans and budget allocations. These shifts are elaborated on later in this document, and were necessitated by, amongst other things, four major occurrences which took place in 2008/9. These were:

  1. A strategic review of the IMC
  2. A strategic review of the Government Communication and Information System (GCIS), the IMC’s shareholder
  3. A best-practice study of various other countries’ approaches to government communications and country marketing / nation-branding.
  4. A study of South Africa’s Global Competitiveness

The outcomes of the two Reviews, which are elaborated on below, had major implications for the IMC in terms of its Strategy, Structure, and Processes. A consequence of this demands a relook at the IMC Board structure, the organisation’s legal form, as well as the question of the IMC as a Public Private Partnership.

The objectives and strategies proposed in this plan were formed with input from GCIS, respond to the Review recommendations, and are cognisant of the electoral mandate of the new Government Administration.

The upcoming 2010 FIFA World Cup also has an important bearing on the strategy. The various national and provincial agencies tasked with marketing and mobilising South Africa ahead of the World Cup have now defined their respective roles, and the IMC’s function of inspiring South Africans to host the best World Cup ever is reflected in this plan. Part of this will be defining what it means to be South African, creating excitement and camaraderie prior to 2010, and maintaining this into the next decade.

  1. IMC Review

From May to November 2008, the IMC was subject to a strategic Review initiated by the Executive Authority (Minister in the Presidency). The Review was undertaken by an external consultancy, Monitor Company, and was overseen by a reference group comprising of members of the IMC Board, SA Tourism Board, and the IMC shareholder (GCIS). A broad number of external stakeholders (e.g. DTI, DFA) were consulted during the process. The outcomes of the Review are contained in a comprehensive report that was finalised in November 2008 and presented to the IMC Board and GCIS. A summary of these outcomes are presented in Annexure A and B below, to provide the context for this plan.

The outcomes of the Review suggested certain material changes to the Mandate, Role, Performance Measures, Structure and Operations of the IMC. This Strategic Plan responds to these recommendations, and there are certain shifts from previous plans in terms of objectives, strategies and budget allocations. A process to revise the organisational structure is being undertaken to enable the IMC to deliver its strategy in the most effective manner.

This strategy has been developed in consultation with GCIS, and has taken into consideration direct inputs from key stakeholders, namely the Department of Trade & Industry (DTI), the Department of Foreign Affairs (DFA), and South African Tourism (SAT), all of whom attended the IMC’s planning workshop in March 2009. Inputs from other role players were brought in informally.

  1. GCIS Review

At the same time that the IMC Review was underway in 2008, a separate independent review of GCIS took place. This resulted in a number of changes to the way GCIS aims to manage its relationship with the IMC in future. This is largely based on the premise that custodianship of the national brand rests with the Presidency, with the President as the ultimate leader of the Brand.

(Note: The points below are extracts from GCIS’s presentation to the IMC’s planning workshop held in March 2009, and to the Executive Committee of the Board on 16 April 2009)

  1. A process will be led by the GCIS CEO to ensure alignment of Brand SA with the country’s founding principles and to the current national agenda and Government mandate. Aim is increased synergy between the international marketing plan & Government communication strategy
  2. IMC has autonomy for brand management of Brand South Africa but the custodianship lies with the Presidency (therefore GCIS)
  • All major brand architecture, new campaign directions & decisions to be checked with GCIS/informed so that it can account to all of government (pre-planning of the IMC Comstrat & product messages)
  1. There are 4 imperatives for the IMC:
  • Understand direction of Government, following the guidance of GCIS
  • Building partnerships.
  • Reposition IMC through excellence in international marketing expertise
  • Function at a higher strategic level
  1. 2010 World Cup is a communication opportunity of a lifetime for SA:
  • Concern that SA is not leveraging this opportunity to market SA or build pride & unity domestically – these are key areas of the IMC’s work & IMC to reassess its programmes for 2010 World Cup & re-prioritise to heighten efforts in this area
  • Need for the IMC and GCIS to affirm their respective roles and take advantage of the findings: will be important to think on how best to address the negative attributes that seem to coexist with the positive
  1. Government is the biggest communicator of national brand domestically. Departments, e.g. Arts & Culture engage internationally; the review finding that brand is not leveraging its people, sports, arts and culture may be indicative of this gap
  2. There is concern that SA’s brand has depended too strongly on historical peaceful transition to democracy – is a vital part of our identity, but it is important to define and express our uniqueness in other key areas of life.
  1. Key communication issues that require a strategy:
  • There has been progress made in building cohesion in a society divided over centuries – but major divisions remain & indicators are South Africans are experiencing uncertainty (political & social contestation; economic challenges). Government programmes depend on a cohesive society in which people work together
  • Contributing to the articulation of a national identity & vision of the future based on values of the constitution and unity in diversity - must foster a nation working together in partnership. It is important that we strive towards a country to which all feel they belong
  1. Need to tighten management & relationships between the IMC & GCIS, including better collaborative use of resources:
  • Some of this is longer term & relate to capacity building in GCIS and the reconstitution of the board in the IMC
  • Of immediate importance is ensuring that strategic issues are approved by GCIS before presentation to the IMC board
  1. GCIS to approve long term development of the national brand, but also:
  • Approval as oversight authority (conceptualising/PR & advertising/marketing)
  • Continuous consultation and collective work in reputation management
  1. International Best-Practice Review

In October 2008, a study tour was undertaken by GCIS, SA Tourism and the IMC to the USA, UK, Tunisia and Brazil to observe these counties approaches to marketing their country globally and domestically, and the role government communications in this. In addition, as part of Monitor Company’s strategic review of the IMC, a detailed analysis of the reputation management and marketing activities of 11 competitor countries was undertaken. The countries reviewed were India, Malaysia, Chile, Australia, Canada, Brazil, Singapore, Kenya, UAE, China, and Egypt.

Many valuable lessons were learned from these two studies, and those ideas that impact directly on the IMC have been included in this plan as either projects or activities. The findings of the Monitor study are contained in the detailed IMC review report, and the observer tour findings are contained in a separate tour exit report.

  1. South Africa’s Global Competitiveness

Also in 2008, a comprehensive study was commissioned by the IMC to plot South Africa’s ranking on a range of international competitiveness measures. The intention was to determine which global competitiveness studies could be used as South Africa’s benchmark for reputational management, and identify key success factors of winning nations and how these are communicated. This was with a view to informing policy and defining South Africa’s value proposition.

The lessons were applied as part of the critical analysis of Brand South Africa to inform its communication and reputation management strategies, provide both guidance and inspiration to the key SA stakeholders to develop appropriate corrective strategies and action plans, identify key opportunities to be leveraged by communication (e.g. 2010), and identify key risks and challenges to be addressed / mitigated through communication.

KEY STRATEGIC SHIFTS

In responding to the Review outcomes, the following adjustments to the strategic plan are proposed:

  1. New Mandate. As the IMC’s shareholder, the CEO of GCIS will be leading a process, in consultation with the IMC Board, to reformulate the IMC’s Mandate. At the time of writing, this process was in its initial stage, and hence this strategic plan is based on the first thoughts around the new mandate that were discussed at the IMC Board meeting in May 2009. The final mandate is still to be fully developed and then approved by Cabinet.
  2. The IMC aims to be more strategic than operational, which may mean doing more brand consultancy and less direct activation. This will be a phased approach where existing campaigns are critically analysed and then either maintained or discontinued, depending on the new mandate and where there are gaps in the global and/or local markets.
  3. Many of the activities proposed in this plan are about setting up systems and processes to enable better engagement and co-ordination between stakeholder groups. The IMC aims to provide various platforms to facilitate synergy, cohesion and alignment between those bodies and agencies that impact on the country’s brand and reputation.
  4. As per Anholt’s nation brand hexagonTM, the factors that impact a country brand are broader than trade, investment and tourism. With a focus on leveraging all the country’s brand assets in areas that drive South Africa’s reputation, the IMC needs to broaden its scope of those through whom it will work. Of specific importance are the areas of Sports and Arts & Culture, both government and non-government. These two areas provide major touch points for the brand, contain many potential brand champions, and can be leveraged to grow the brand.
  5. The 2010 FIFA World Cup provides key opportunities for growing the brand. Domestically it allows us to focus the brand internally, and efforts will centre on building national pride and patriotism, and defining a national identity and creating ownership thereof. Internationally, 2010 will be leveraged to springboard SA to the next level in terms of its global profile. The aim is to create Brand Champions of the hundreds of thousands of people who visit the country, and the millions who watch the event on television. In the short-term the World Cup will underpin our activities, and post-2010 attention will be directed back to the master narrative i.e. the overarching and ongoing value proposition of South Africa and fulfilment of the country’s National Vision.
  6. The IMC will operate in a more collaborative way, working with and through others to build and maintain SA’s reputation.
  7. Better intelligence will be used to inform plans and activities across the Brand value chain. There will be more scientific research and segmentation, and closer linking with SA’s key diplomatic, economic and tourism target markets. This will be done without sacrificing short-term flexibility and the ability to do tactical interventions and/or campaigns should the need arise.
  8. Resources to be invested in improving internal systems and efficiencies within the IMC organisation to make it a cutting edge organisation of excellence and expertise.

NEW MANDATE

As mentioned above, the new Mandate is currently under development. The process to finalise the mandate still needs to run its course. At this stage, the proposed mandate shift is as follows:

FROM (PREVIOUS) /  TO (RECOMMENDED)
To develop and implement a pro-active and co-ordinated international marketing and communication strategy for South Africa. / What: To develop and articulate the value proposition and positioning that will drive the long-term reputation of Brand South Africa
How: Through Brand and Reputational Management informed by both a National and Brand Vision whilst remaining true to the South African brand DNA
The ultimate aim is to make a contribution towards job-creation by encouraging local and foreign investment, tourism and trade through the promotion of “Brand South Africa”. / What: The ultimate aim is to increase South Africa’s global competitiveness by developing symbiotic partnerships with all stakeholders (government, business, labour and civil society) who deliver on (and are able to leverage) the nation brand and aligning them to enhance SA’s reputation.
How: Through the development and provision of tools, frameworks, reputational guidance and strategic input in terms of execution and messaging – delivered in an inspirational and empowering manner.
Domestically, the objective is to build local support for the Brand, and pride and patriotism amongst South Africans. / What: To build pride and patriotism amongst South Africans with the aim of uniting the nation by encouraging all South Africans to “live” the Nation Brand, and in so doing define South Africanness.
How: Through the promotion of a wide range of symbolic nation-building and patriotic activities championed by the President.

SOUTH AFRICA BRAND JOURNEY 1994 – 2014 AND BEYOND

Pre 1994 / 1994 / 1999 / 2001 - 2008 / 2008 - 2009 / 2009 / 2010 / post-2010 / 2014
“DARK
AGES” / RAINBOW NATION / FADING RAINBOW / “ALIVE WITH POSSIBILITY” / BRAND REVIEW / PREPARE TO DELIVER / FIFA
WORLD CUP / REPOSITION SA as “NEXT BIG THING” / VISION 2025 DRIVEN
Isolation
Sanctions
Apartheid
Minority Rule
/ Peaceful Democratic Transition
Nelson Mandela
Rugby World Cup (1995)
African Cup of Nations (1996)
Truth & Reconciliation Commission
Global Reinvestment in SA
Strong evidence of national Pride and Patriotism / Crime
Social Issues
HIV/AIDS / Brand SA redefined
Brand Key Developed
Intervention through Communication
End ‘user’ and opinion leader focus
WSSD (2002)
Cricket World Cup (2003)
FIFA WC
2010 Bid Approved (2005)
10 years of Democracy (2004)
Peak levels of national Pride (2004)
Economic
Growth / IMC Mandate Review
Global Economic Environment
Global Competitiveness Study
Best Practice Review
Lack of Social Cohesion
Diminishing Pride levels / Increased Uncertainty
New Administration

- Refine IMC Mandate
- IMC Strategy Shift / Domestic Mobilisation
Prepare the nation to deliver
Build Pride and Patriotism
Stakeholder alignment for post-2010 SA Repositioning
Media management to shift narrative
Explore Positioning territories
National Vision for SA established
Inspired Leadership
Increased Africa engagement / Delivery of WC symbolises realisation of potential of SA and Africa
Springboard to SA Vision 2025
(top 20 Nation Brand, Top 30 in WEF GCI)
Window to the World
Brand SA presence at
WEF Davos (Jan 2010) / Inspiring New Different Ways
Refine and Leverage Brand DNA
SA’s Value-Proposition Refined (beyond Tourism)
Stakeholders
- Aligned
- Inspired
- Intrinsics
Positioning possibilities:
- Balance (3x bottom line)
- Innovation
Entrench National
Icons
(“Rebound” Strategy -
Contingency
Plan) / 20 years of Democracy
SA moving up global rankings
(top 20 Nation Brand, Top 30 in WEF GCI)
Attracting increased Investment, Trade, Tourists, Events, etc
GDP, Growth, Job Creation, Social Cohesion
Growing National
Icons
NB: Be aware of Competitive Environment

OVERVIEW OF 2009/10 – 2012/13 STRATEGY

* The IMC does not control the intrinsics that determine SA’s WEF GCI ranking, but it contributes to SA’s ranking through reputation management

TARGETS [1]

OBJECTIVE / HISTORY / TARGET
2007/8 / 2008/9 / 2009/10 / 2010/11 / 2011/12
Obj. 1: ANNUAL REPUTATION INDEX RATING
Measure: MSA Reputation Index [2] / 49,61% / 44,76% / 50% / 51% / 53 %
Obj. 2: ANNUAL NATION-BRAND RANKINGS
Measure 1: Anholt Nation Brand Index / 32
out of 40 / 37
out of 50 / 35 / 30 [3] / 28
Obj. 2: ANNUAL COMPETITIVENESS RANKINGS
Measure 2: WEF Global Competitiveness Index / 36
out of 122 / 44
out of 131 / 43 / 42 / 41
Obj. 3: CUTTING EDGE ORGANISATION
Measure: To Be Confirmed [4]
(possibly Anholt Corporate Reputation Survey) / n/a / n/a / TBC / TBC / TBC

TARGET MARKETS

The definition of target markets is a work in progress that requires further and ongoing collaboration with key stakeholders. We are aiming for a segmentation model which will assist in bringing together a view of the world that will inform resource allocations and messaging in different markets. Detailed segmentation will allow markets to be differentiated into various categories, such as Growth/Invest in; Expand; Maintain.

The categorisation is driven by imperatives such as investment, exports, tourism, diplomacy, etc. Certain markets also become relevant for fixed periods of time, such as football nations around the time of the Confederations Cup and World Cup.

From their inputs given at the IMC strategic planning workshop in March, the core target markets of the IMC’s key stakeholders are the following: