THE ROLE OF PR IN ATTRACTING FOREIGN INVESTMENT

CONTENTS
I. Overview: PR and FDI I. Why PR? II. Why London? III. The role of the Embassy IV. Colombia: example of successful PR campaign Building a communications campaign I. Preparatory work: Defining your message II. Implementation: Diffusing your message

Why PR?
Provides a structure around existing promotional activities Ensures consistent messaging Ability to target niche audiences Allows rapid reaction to specific issues Cheaper than advertising and marketing Higher return on investment

Why London?
European business capital Gateway to the European Union Leading global financial centre Hub for global brands Wealthiest area in Europe International political and diplomatic hub World media centre

How the Embassy can help

Nordic firm hit by Arab boycott You are often on the front line Monitor the media for potentially damaging issues and take action Develop relationships with potential investors Develop relationships with key journalists Support your investment agency or promote your country directly Keep commercial interests front-of-mind at all times
BBC News Website - 31 January 2006

Overview: PR and FDI

A roaring success

PR helps you get your message across

Bogot's Bolsa de Valoreshas surged nearly fourteen fold since its October 2001 low, riding the restoration of peace and security after decades of narco-guerillaparamilitary violence. Performance 1 year: 14%: 5 year: 796% I'm struck by how many twenty- and thirtysomethings in Bogot are at the leading edge of business and civic life: chief executives, money managers, restaurateurs, even cabinet ministers.Roben Farzad, Author
May 2007

And gets other outlets to take notice

Colombia has been fighting to prove that it is a safe and worthwhile investment destination and has now put itself firmly back onto the investment map. Courtney Fingar , January 2007

And then investors begin to tell the story

Colombia: A Golden Opportunity for Investors

Sue Clark, Director of Corporate Affairs SABMiller
22 October 2007

Building a communications campaign

Defining your message

What do you need to know?

Know yourself

Research will help define your strengths and weaknesses A strategy will provide focus and direction Assess your current investment reputation Different stakeholders will want to know different things Knowing your competitors strengths and weaknesses allows you to better position your relative strong points Define some simple, compelling key messages Research and strategy will help shape your unique selling points A solid communications strategy will ensure the consistent diffusion of your messages to all stakeholders and investors

Know the audience

Know your competitors

Know your message

Know how to use it

Assess your strengths and weaknesses

INVESTMENT REPUTATION

Developed transport infrastructure

Strong, apolitical administration

Skilled and affordable workforce

Clear, stable yet flexible legislation

Government support for R&D

Sophisticated Lifestyle

Economic growth prospects

Tax Incentives

Research also makes clear which stakeholders can help you influence your reputation

Research your investment reputation

MEDIA GOVTS / POLITICIANS REGULATORS

TRADE UNIONS

INFLUENCE PERCEPTIONS
OPINION LEADERS

NGOs

TOURISTS ANALYSTS

BUSINESS COMMUNITY

Identify your friends

Developed transport infrastructure
Tourists / Tourism Agency Governments / Politicians Transport Business Community

Strong, apolitical administration

Governments / Politicians NGOs Trade Unions and Regulators Media and Opinion Leaders Analysts

Skilled and affordable workforce

Trade Unions Media and Opinion Leaders Analysts

Attractive Quality of Life

Tourists / Tourism agency Media

Government support for R&D

National Investment Agencies Govts/Politicians NGOs

Economic growth prospects

Business Community Opinion Leaders Analysts

Clear, stable yet flexible legislation

Politicians Media Analysts

Tax Incentives
Business community Analysts Governments / Politicians

Differentiate from peers

The audience needs to understand your locations uniqueness Which values can people immediately identify to set your location apart from its competitors in the region and the world?

Develop a simple message

= Cutting-edge Technology

= High-end Manufacturing

= High fashion and couture

= Financial services

Buttheres no message if it doesnt resonate

You say BUT They write

Buttheres no message if it doesnt resonate

You say They write
Borut Grgic, May 10, 2008 Serbia has regressed economically in the last decade more than all its neighbours.

BUT

Serbia attracted less foreign direct investment (FDI) in comparative terms in the last year than all its neighbours. FDI has also been less diverse in Serbia than in neighbouring countries.

Building a communications campaign

Diffusing your message

Planning your campaign

Elements of a communications campaign

Contact Programme with current and potential investors and other opinion formers Newsletters

Direct Communication:

Forums, Seminars, Conferences Local business community and international relationships

COMMUNICATIONS PLAN

Most direct route Should not be your only strategy

Opinion leaders, including those involved in business strategy, outsourcing and existing foreign businesspeople in situ Influential nationals ( in the media, entertainment, sports etc.) Advertising Sponsorship Awards Think Tanks, Academics & NGOs THE MEDIA

Indirect Communication:
Targets hard to reach audiences Ability to alter perceptions

Print Media: Foreign (News, Features, Business, Political); Magazines; Regional; Trade/ Specialist Broadcast Media: Radio and television New Media: Websites, video streaming, blogs, etc.

Use national media to your advantage

Get your most important stakeholders on message: your countrymen Reinforce domestically the values your country wants to transmit on an international scale Engage home field with the same language and culture Encourage people to transmit the message independently Show consistency

Get regional agencies on message

And define how they work together

Often many agencies exist to serve the same market Good internal communications and harmonized external communications are key London is a prime example because of how many agencies are responsible for selling its story All locations have multiple angles to sell but how do different agencies engage different stakeholders?
Part of Foreign Office Out-of-London focus National tourism agency Worldwide reach Directs inv. opps. To UKTI City government branch Civic development focus Complements other agencies Focuses solely on Olympicsrelated investment Event driver for future growth

London and SE England Focus Private-Public Partnership International Presence Works with London alone Federal government agency

Adapt your message

International Press
Mainly English-speaking Respected and read by investors in all territories

North America
Influential regional press Broadcast an important financial news outlet US media not globally focused

Europe
Extremely fragmented & culturally diverse UK: consumerist driven; importance of Sunday press France: low circulation; influential weekly glossies Germany: financial media highly developed but fragmented

Asia
Relationships essential China: Tight political control but relaxed attitude to business press; limited understanding of financial markets Japan: highly fragmented and surge of new media

Middle East
Relationships very important UAE: Tighter control of press, but business usually has freer reign

Africa
Generally very parochial and nationalistic Limited news sources and business knowledge outside SA

Latin America
Regional investment readership Active media markets

New Media
A rising force overlapping geographies and cultures Reporting generated both by traditional outlets and new players Difficult to track: reputational risk due to fast spread of rumours

How to handle the international media

How to handle the international media

Build long-term relationships it will help better understanding and secure more favourable coverage Understand how journalists work Make your information stand out Organise country visits and events on location Offer meetings with agency management, diplomats and other friendly stakeholders Build and leverage your international network

How NOT to handle the international media

Assume that a journalist is going to have a profound knowledge of a country or investment situation Lie, embellish or hide information Overwhelm journalists with information that is promotional or advertising-based Refuse to engage in times of crisis Ignore your press office Dont stick to your commitments

Contact: Rurik Ingram Email: ringram@brunswickgroup.com