Monday, May 28, 2012

Money & Business

America's Image Problem

But dislike of U.S. policy may not hurt products

By James M. Pethokoukis
Posted 9/17/06
Page 2 of 2

Not that the business world hasn't been worried about a sustained outbreak of hostilities toward American brands. "It's been something we have been closely tracking since the invasion of Iraq," says Lt. Gen. Daniel Christman (Ret.), head of international affairs at the U.S. Chamber of Commerce. "But we haven't picked up a significant effect on American business at all."

"The finger." U.S. company execs have on occasion been highly critical of how some Americans behave overseas. In a 2005 commencement address at Columbia University's business school, PepsiCo Chief Financial Officer Indra Nooyi called America the "long, middle finger" of the world, reflecting its outsize military and economic power, and said it's important that U.S. business people "give the world a hand ... not the finger." Nooyi, who recently was named Pepsi's CEO, counseled the graduates to be more mindful of how their actions are perceived by foreign business partners.

A national identity can be a great asset for an individual brand. A country of origin becomes a sort of symbolic shorthand in the minds of consumers. Italy means cutting-edge fashion, Japan means premier quality. In the '90s, GM's Prizm and Toyota's Corolla came off the same California assembly line. Same chassis, same features, different names. Yet the Corolla sold more, and at higher prices, because of the Japanese reputation for quality.

The Cool Britannia campaign may have been doomed, in part, by the lack of any appeal to business. "The powers that be want Britain to be known as a good place to do business, home to productive and innovative citizens," says Wreden. "They don't want Britain to be associated with dope-smoking musicians, outlandish fashionistas, or brooding artists. Leave that to Berlin."

Some global firms do reject national connections altogether. A U.S.-based company that derives most of its sales from overseas might not give a hoot about Brand America. It's an attitude that Keith Reinhard has come across. Reinhard is president of Business for Diplomatic Action and chairman emeritus of advertising agency DDB Worldwide. His organization is attempting to use corporate America to help reverse the tide of anti-Americanism. But many CEOs of companies with global operations "have told us they don't see themselves as American companies," Reinhard says.

Business for Diplomatic Action has produced guides for business travelers so they can better act as ambassadors for America. The group is also trying to lobby American officials to make U.S. airports more visitor-friendly and to dramatically increase government spending on tourism promotion. Studies show that foreigners become more pro-American after a visit.

The Bush administration may be paying more attention to America's image. Earlier this month, a group of 14 CEOs who advise Commerce Secretary Carlos Gutierrez recommended making it easier for tourists to visit the United States. Among its recommendations is to streamline the visa process through better technology and staffing. The panel's report says that citizens of more countries should be able to enter the United States without visas at all. Another recommendation: create a nationally coordinated marketing campaign. How's this for a possible American slogan-with apologies to David Letterman-"America, Land of a Million Starbucks"? It's certainly no worse than Australia's tourism slogan: "So Where the Bloody Hell Are You?"

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