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Gwyneth Paltrow's picture of Britain

Britain, as movie star Gwyneth Paltrow will attest, can be somewhat of an acquired taste. The actress has aired some of her grievances about the UK in this month’s US edition of woman’s magazine, Marie Claire.

Dirty streets, cold and damp weather and “rubbish” customer services are her main gripes. Fair enough Gwyneth, it’s my homeland but I can only agree. It’s nice to hear though, that after years of finding Britain "cold and depressing", she says she’s now grown to like it.

I think Britain does take some getting to like. We’re a strange bunch, awash with foibles and full of contradictions. Reserved and understated one moment, brash and bolshie the next. There’s nothing we love more than to moan about our country, but secretly we adore its peculiar qualities. What may not be immediately obvious to outsiders is often what’s most enjoyable about the UK. I imagine that’s true for many countries, but Britain can sometimes be exasperating unassuming!

This can catch even the most Anglophile of transatlantic visitors off-guard. Travel to anywhere else in Europe and its taken as read that things will be different. And, though Americans don’t expect the UK to be the same as back home, our shared tongue lends a false sense of security. (The same goes for we Brits heading the other way.)

The reality is that British culture is as different to American culture as it is to any other in Europe. Even living in another country for a long time can fail to erode one’s intercultural incomprehension. I was in New York for over a year, but never got my head around the average US supermarket. The range of food available in a French store, though impenetrably labelled, somehow makes far more sense to me.

So, within Gwyneth’s experience, there is a lesson for all of us who are involved in transatlantic business: never underestimate the cultural divide between any two nations or how long it will take to cross it.

Frankly, language has nothing to do with it. Almost because communication is made easier, our preparation for change is reduced. The answer, as ever, is to ask a native. What does this mean? Why do you do that? Who are those for? How on earth do live without this?

If your business is contemplating transatlantic expansion, be sure to seek out support from those that can understand where you’re coming from and where you’re going to. As much as you might need multi-lingual assistance elsewhere, a cultural translator is a real advantage between the US and UK.

Goodbye Typhoo and sympathy, hello to the new world order

I’ve never bought Typhoo tea, but as one of the leading tea brands in Britain it didn’t escape my attention when I read it had been purchased by India's Apeejay Surrendra Group (see this report on BBC News Online). This will be the second time SwelledHead has said “I told you so” on this subject, but it’s a point well worth repeating.

When writing a post earlier this year to review Thomas L. Friedman's book, 'The World Is Flat', I struggled to think of major British and American brands that had been snapped up by the ambitious Chinese and Indian conglomerates we keep being warned about. Then within weeks, Nanjing purchased the ailing UK car manufacturer, MG Rover, and American favourites IBM, Maytag and RCA were either newly sold or being bid for. Few would now doubt that the cash rich but brand-equity poor companies from the rapidly developing economies of China and India have realised that the fastest way to gain brand leadership is to buy it.

Launched in 1903, Typhoo is the third-biggest tea brand in Britain, behind PG Tips and Tetley. PG remains part of Anglo-Dutch Unilever, but Tetley was sold to India’s Tata Tea in 2000. Tetley is one of the biggest tea brands in the US as well, and as the same BBC report states, Tata has added to its portfolio there by acquiring Good Earth, a speciality tea brand with a 3.7% share of the US market.

That foreign companies want to buy our brands is not something I regard as surprising. Japan’s Toyota and South Korea’s Hyundai may now be leaders (in the US at least), but it’s taken them many years of sustained effort to get there. It’s only natural, and indeed sensible, to take a short cut if one is more easily available. I haven’t thought of it as something that America or Europe needs to be particularly afraid of either. After all, the exchange of brands is all part of the dynamic tapestry of international business.

Then today I read this article by BBC business reporter, Peter Day. In an interview with Sir Martin Sorrell, chief executive of marcoms giant WPP, he revealed that American short-termism (and I’d lay the same charge on most European economies, though perhaps to a slightly lesser extent) could well leave Western companies unprepared for the emerging new world order.

I think he may be onto something here. To control our own brands is, to a fair extent, to control our own destiny. They represent enormous value to our economy in terms of profits and jobs. This isn’t some protectionist, xenophobic notion; it’s the recognition that to compete effectively in a global economy which counts China and India as business equals we need to reassess our objectives. There’s no doubt that our Eastern competitors have set long terms goals for their success. Now, we need to unshackle ourselves from the single-mindedness of share price and engage in a more comprehensive view of where we want to be ten, twenty and even fifty years.

The savior of the special relationship

Today is Margaret Thatcher's 80th birthday. And whatever you think about the woman's politics, if  the transatlantic links between Britain and America are important to you, you have her to thank. Of course, the so-called special relationship began long before Thatcher’s time. It's a product of shared histories and supported in no small part by a shared language*.

Nevertheless, since the end of World War II the relationship had been dying. Britain was no longer the global power she had been just two decades previously and America's supremacy was beginning to take hold. Politically, the imbalance between the US and UK had completely reversed and this situation was to harden as Britain's fortunes headed into the doldrums. It was Tsar Nicholas I of Russia who reputedly coined the phrase "the sick man of Europe" to describe the moribund Ottoman empire of his day. Since then, many other countries have held the dubious honour of the title and in the 1960s and 1970s, strike-prone and economically retarded Britain was the favourite.

When Thatcher came to power, the special relationship was taken off life support. Though the  economic imbalance remained, politically her government and that of President Reagan were entwined in a way that hadn’t been seen for centuries. Reagan said: "We met before she became prime minister and I became president, and the moment we met, we discovered that we shared quite similar views of government and freedom. Margaret ended our first meeting by telling me that we must stand together, and that is exactly what we have done ever since."

Through the late 1980s and 1990s Britain’s economic position repaired and today it stands as the powerhouse of Europe. Throughout this time successive prime ministers have aimed to maintain the transatlantic unity and, to a greater extent, the political status quo has endured. Though superficially akin in political terms, John Major and George Bush senior never made natural bedfellows. However, Tony Blair enjoyed a healthy relationship with Bill Clinton, and then surprised everyone by building a good rapport with George Bush junior.

America’s pre-eminence on the global stage both politically and economically is undoubted, but the special relationship is as strong today as it ever was. In fact, it may be more balanced than people assume; I met a man from UK Trade & Investment (the UK’s government agency for transatlantic development) at a recent business event. He told me that not only are the US and UK the biggest investors in each other’s economies, but that both countries have created a similar number of jobs – around 1 million in each nation.

In a globalising world, greater economic interdependence is a given and it makes more sense than ever for Britain and America to cement their cooperation. Between the two, and as a bridge for American interests in Europe, the special relationship has really never been more important. So whatever your politics, for that at least, cheers Maggie, and many happy returns!

* There is a popular legend that German almost became the official language of the United States. This notion has been popularised by German authors of travel literature since the 1840s. According to the so-called "Muhlenberg legend," a vote was taken in the Pennsylvania state parliament sometime in the 1790s on whether German should be the official language. Apparently the Speaker of the House, a German-American by the name of Frederick A. Muhlenberg, cast the decisive vote for English and against German. In reality, this presumed proposition was never brought to the floor and a vote was never taken.

The historical origin of this legend might have been a failed attempt in Congress in 1794, based on a petition of German residents of Augusta Co., Virginia, to have "a certain proportion" of the laws of the United States printed in German as well as English. A year later, the petition was denied by Congress by a vote of 42 to 41.

(This footnote taken from the website of the US Embassy in Germany: http://usa.usembassy.de/germanamericans-language.htm)

BABi transatlantic branding breakfast

British American Business Inc., the combined chambers of commerce for the two countries, just keeps getting better.  This summer, it held a great event on transatlantic branding, with panelists representing British Airways, IBM and Range Rover.  Richard Edelman, chairman of Edelman Worldwide, served as an excellent moderator for this event (he is the head of the world’s largest independent PR agency).

Each panelist explained how their brands are exported and tried to put them in context of what we see as American consumers (for the British brands) or globally (in the case of IBM).  What was particularly heartwarming was that we had a panel of firms, that for the most part, are doing a pretty good job of it.

We’ve talked about British Airways here before.  It was fun to hear the woman who spearheads this effort, Elizabeth Weisser, talk about the risks and rewards of its “Go With Those Who Know” campaign.  Elements of the campaign, especially outdoor advertising in NYC, have been very successful.  Its direct mail campaign includes a book of “English to English” translations and postcards reproducing advertising elements that are fun to send to your friends. This is an excellent example of leveraging one’s investment in marketing communications with creative that elevates the brand – and makes the British heritage relevant to the intended audience. We think BA could have taken things a little further though, with a greater amount of supporting content on their website and carefully targeted in-flight collateral.

The IBM exec, Anil Menon, talked about making theoretical branding concepts work in hundreds of local markets – and how IBM is striking a balance between central control of the brand and its promise while remaining locally relevant.  Interestingly, in some local markets, the logo itself was being transformed – including pictorial representations of an eye, a bee and the letter “M”.  Beyond wresting control of the identity, IBM is communicating consistent promises globally to make its top customers comfortable that it can deliver its services – and its core promises – in every market.  The resurgent IBM is carefully managing its brand and perception, spending millions on tracking studies and other market research to make sure its message is getting through.  These guys are good!

The Land Rover exec faces a product perception challenge that will take a few years to overcome.  Quality problems with the now discontinued Discovery continue to dog the brand.  Yet it remains a favorite of the country club set.  Continued improvements in quality and product innovation are the company’s key strategies to fix its perception issues.  Interestingly, this unit of Ford also seems somewhat penned in by corporate aversion to risk. 

During his presentation, Richard Beattie talked about a billboard for a sister brand, Volvo, which is running in the UK.  The creative supports the Volvo C70 convertible, and sports the headline “Safe Sex.”  He asked for a show of hands for who would think this ad should run in the U.S.  Of course, mine was the only hand raised.  Caution and death by committee hampers breakthrough creative – and this is a perfect example of not trusting the U.S. consumer to have a sense of humor and the sophistication to get the pun and believe good things about the company that would run such an advertisement.  Too bad – and an opportunity lost.  In a business as competitive as automotive, breakthrough creative is what it’s going to take to win (in addition to great product).  Especially true for Ford’s import luxury brands which all face reduced marketing outlays in light of corporate belt tightening.

BABi runs more than 40 events in NYC and a similar number in London (as well as events in other cities through its affiliation with BABC).  I heartily recommend you check the organization out – and if you are an active transatlantic marketer – join up! Visit www.babinc.org to learn more.

Smart move, Ma'am

Visitors from the US are vital to Britain's tourism industry, and that of London in particular. Amercians contribute the most in terms of spending, but their numbers dropped severely following 9/11. Although they have risen steadily since that time, levels have still not recovered to the highs of 2000. Time then for the UK to roll out the big guns, and in terms of publicity there's none bigger than Her Majesty The Queen.

Ask an American to name something British and The Royal Family is almost certainly one of the first things they'll think of. It has to be Britain's ultimate international 'brand' and though they're unlikely to glimpse even a corgi, the monarchy and all its trappings is undoubtedly a major pull for those holidaying from the US. Leverging this appeal is witnessed in myriad pieces of marketing of the royal image, from appearances in glossy vacation brochures to the postcards picked up in any tourist dollar trap.

Finding out about what goes on inside this institution fascinates Americans just as much as it does The Queen's own subjects. Pure genius then, to bring the royal household into the households of 5 million American homes. ABC television's Good Morning America was given an unprecedented opportunity to film inside three of the royal residences over two days, reporting from Windsor Castle, Buckingham Palace and Holyroodhouse in Edinburgh. Delivering such intimacy on such a giant scale is a PR coup for those representing the British tourism industry and will surely have a great and positive impact on businesses and visitor attractions UK wide.

Maintaining an air of mystery is fundamental to the appeal of the British royals. The past decade saw a great deal of that allure swept away in the glare of sad or negative publicity following the failure of several royal marriages, the shocking death of Diana Princess of Wales and the death of The Queen Mother and Princess Margaret. However, throughout some very difficult times The Queen has preserved the air of dignity for which she is renowned and in recent years the reputation of her family has healed. Well thought out and carefully managed publicity showcases can only support this restoration and though they should never appear to be a regular occurrence, a similar initiative in a year or two's time could provide another boost to Britain's transatlantic appeal.