Marketing Regions & Marketing Regions & CitiesCities

Nicholas WaltersNicholas Walters

February 2007February 2007

IntroductionIntroduction

Senior Consultant for 25 yearsSenior Consultant for 25 years Advisor to London First (now Think Advisor to London First (now Think

London), Invest Hong Kong, UNIDO, London), Invest Hong Kong, UNIDO, London City Airport and The Government London City Airport and The Government of the British Virgin Islandsof the British Virgin Islands

Lived and worked in Asia, USA and Lived and worked in Asia, USA and EuropeEurope

Key Challenge is clutterKey Challenge is clutter

More than 1,500 development agencies active in More than 1,500 development agencies active in Western EuropeWestern Europe

National, regional, provinces, county, city, land National, regional, provinces, county, city, land organisations, special development zonesorganisations, special development zones

Over 1000 in AsiaOver 1000 in Asia Over 200 of these have a permanent office in Over 200 of these have a permanent office in

the USAthe USA A business might be contacted 200/300 times in A business might be contacted 200/300 times in

a year by inward investment bodiesa year by inward investment bodies

MarketingMarketing

Must not confuse with branding, public relations, Must not confuse with branding, public relations, promotion, advertising etcpromotion, advertising etc

A marketing strategy defines the attributes of a product A marketing strategy defines the attributes of a product and service for a particular target audienceand service for a particular target audience

For a City or region this requires a 5/10 year economic For a City or region this requires a 5/10 year economic plan. A clear vision of the future look and structure - plan. A clear vision of the future look and structure - researchresearch

This can be turned into a brand character – truthful, This can be turned into a brand character – truthful, distinctive, attractivedistinctive, attractive

Which in turn can then be intelligently presented to the Which in turn can then be intelligently presented to the potential buyer potential buyer

Reputation stepping stoneReputation stepping stone

Awareness

Interest

Warmth

Confidence

Trust

Action

Support

Assessing imageAssessing image

Familiarity

Favourability

Best Fit

Analyse perceptionsAnalyse perceptions

Key Audiences Think Now Should Think

Customers “…………” “…………”

Media “…………” “…………”

Workforce “…………” “…………”

Investors “…………” “…………”

Legislators “…………” “…………”

Business Community “…………” “…………”

Cushman & Wakefield 2006 StudyCushman & Wakefield 2006 Study

2006 European Cities Monitor2006 European Cities Monitor Carried out every year since 1990Carried out every year since 1990 Interviews with CEO/CFO or person most Interviews with CEO/CFO or person most

likely to make relocation decisionlikely to make relocation decision Top five cities have remained fairly Top five cities have remained fairly

consistent – London, Paris, Frankfurt, consistent – London, Paris, Frankfurt, Barcelona, BrusselsBarcelona, Brussels

Cushman & Wakefield Study 2006Cushman & Wakefield Study 2006

19% had relocated or outsourced operations in 19% had relocated or outsourced operations in the last 12 monthsthe last 12 months

21% currently plan to relocate or outsource in 21% currently plan to relocate or outsource in the next 2 yearsthe next 2 years

In order of priority – production, assembly, In order of priority – production, assembly, distribution and logisticsdistribution and logistics

Big drop in relocation to Western European Big drop in relocation to Western European cities – big increase in interest in looking Eastcities – big increase in interest in looking East

Warsaw, Moscow, Budapest, Prague and Warsaw, Moscow, Budapest, Prague and Bucharest showing biggest interestBucharest showing biggest interest

Cushman Wakefield 2006 StudyCushman Wakefield 2006 Study

Easy access to markets, customers or clients – Easy access to markets, customers or clients – 63%63%

Availability of qualified staff – 59%Availability of qualified staff – 59% Transport links - 55%Transport links - 55% Quality of telecommunications – 50%Quality of telecommunications – 50% Cost of staff – 36%Cost of staff – 36% Government created climate for business Government created climate for business

including tax and incentives – 31%including tax and incentives – 31% NB quality of life and environmental issues have NB quality of life and environmental issues have

crept into the top ten at 19% & 15% respectivelycrept into the top ten at 19% & 15% respectively

Launching LondonLaunching London

Think London (then known as London Think London (then known as London First) is London’s inward investment body First) is London’s inward investment body set up to promote The City worldwideset up to promote The City worldwide

Appointed the Henley Centre for Business Appointed the Henley Centre for Business Studies to conduct qualitative CEO Studies to conduct qualitative CEO research programmeresearch programme

50 Euro, 50 US, 50 Asia50 Euro, 50 US, 50 Asia Criteria for relocation and attributes of Criteria for relocation and attributes of

LondonLondon

What they wanted to know the What they wanted to know the answers tooanswers too

1)ease of access to markets & customers1)ease of access to markets & customers 2)availability and cost of trained/qualified people2)availability and cost of trained/qualified people 3)quality and availability of technology/telecoms/TV3)quality and availability of technology/telecoms/TV 4)value for money and availability of prime space4)value for money and availability of prime space 5)business climate –legislation, tax, & incentives5)business climate –legislation, tax, & incentives 6)languages and multiculturism of the community6)languages and multiculturism of the community 7)quality of life7)quality of life 8)environment/pollution issues8)environment/pollution issues 9)ease of movement within the City9)ease of movement within the City 10)safety10)safety

What they then thought of LondonWhat they then thought of London

30 years of tourism marketing highly 30 years of tourism marketing highly successfulsuccessful

London buses, Buckingham Palace, London buses, Buckingham Palace, Changing of the Guard, The Royal FamilyChanging of the Guard, The Royal Family

No relationship or spin off for businessNo relationship or spin off for business London a “must” to visit but not a “must” to London a “must” to visit but not a “must” to

consider for relocation on grounds of cost, consider for relocation on grounds of cost, modernity, incentives, staffing, business modernity, incentives, staffing, business culture etcculture etc

Power & InfluencePower & InfluenceThe World’s BoardroomThe World’s Boardroom

Selling London to LondonersSelling London to Londoners

QE 2QE 2 Prime MinisterPrime Minister 700 London’s most senior businessmen700 London’s most senior businessmen Foreign companies in London alreadyForeign companies in London already Ambassador programme - taxisAmbassador programme - taxis Takeaway packTakeaway pack The filmThe film

Roll outRoll out

Film and pack in every embassy around Film and pack in every embassy around the worldthe world

Presentations in over 30 countries on Presentations in over 30 countries on community programmecommunity programme

18 Business briefings launched in London18 Business briefings launched in London Cushman & Wakefield (Healey & Baker) Cushman & Wakefield (Healey & Baker)

Study was born from this activityStudy was born from this activity

Lessons learntLessons learnt

Talk to the customerTalk to the customer Regional and City economic development Regional and City economic development

is all about team and focusis all about team and focus Stand out and relevanceStand out and relevance Long term commitmentLong term commitment