"Branding Canada"
For Investment Promotion
Boston and Dallas Pilots
March 2001
On behalf of Investment Partnerships Canada (IPC), Earnscliffe Research & Communications, working with Wirthlin Research in the United States, was asked to conduct an intensive qualitative assessment of American executives to explore their attitudes toward investment in Canada.
In keeping with the focus established by IPC, the research program was tailored to pilot testing in the identified markets of Boston, Massachusetts, and Dallas, Texas. Also, in keeping with the pilot methodology, the study only targeted two business sectors – biotechnology/life sciences and information and communications technology (ICT).
This survey was undertaken to learn how investors' decisions are made, to inform the Government of Canada on some American perceptions of Canada and to establish a basis of knowledge to guide Canada's future investment marketing and branding efforts.
The main challenge for the Government of Canada is to focus on visibility and to correct misconceptions. Our efforts will help to ensure that perceptions of foreign investors "catch up" to the reality of Canada's performance.
The success of any nation that is serious about competing internationally depends largely on attracting outside investment that brings in both capital and expertise. One out of every ten jobs in Canada depends directly on foreign investment.
IPC works to improve Canada's investment climate, to eliminate investment barriers and to promote Canada's image abroad as an investment location of choice.
Summary of Key Findings
The research conducted yielded a number of highly valuable insights into the targeted markets and sectors.
These findings are of direct value in terms of evaluating Canada's current standing among potential investors in the targeted sectors, developing compelling narratives, establishing strategic positioning imperatives and fashioning tools and tactics to penetrate target audiences.
The most notable of these findings are outlined below:
- Canada's credentials are well regarded and reasonably well known. Respondents had a generally positive reaction to Canada's prospects as an investment destination. There was particular appreciation for the abundance of skilled labour, marketplace credentials and proximity to the U.S. Negative impressions included concerns about taxation and a low population. Overall, 74 percent of impressions are positive.
- Canada's visibility and 'mind share' emerge as the primary challenge. Respondents tend to hold Canada in high regard but clearly do not hold it 'top-of-mind' as a potential investment destination. Virtually half of respondents (49 percent) indicated that Canada received either no consideration or only initial consideration as a potential investment destination. This suggests that much more can be done to push Canada to 'top-of-mind' placement among target investors through creative and targeted tactics.
- Basics for attracting investment include good macro-image, strong credentials and visibility. Analysis of respondents' input indicated that these three factors emerge as the 'basics' of any investment promotion story. A good macro-image is required to foster initial consideration, strong credentials are needed to fulfill the firms' objectives, and visibility is necessary to maintain profile and thereby regularly gain consideration as investment decisions are taken.
- Sectors, not market, are key in targeting. One of the key findings revealed by the research was that variations between sectors were more significant than marketplace. ICT respondents in Dallas and Boston shared perspective on key attributes, growth strategies and other factors. Conversely, where distinctions were found – for example, in the evaluation of what was meant by skilled labour – they related more to sector than city. This suggests that messages, strategies and tactics developed by sector can be transplanted to a variety of locations with a minimum of tailoring and change.
- Most persuasive storylines will translate strong attributes into fulfillment of key value-based objectives. Ultimately, it is the fact that key credentials (i.e. skilled labour) will result in lower costs, higher productivity and therefore greater fulfillment of personal wealth and/or corporate objectives that matters to these business leaders. Selling credentials therefore, is clearly not adequate to secure maximum positive results. Selling outcomes and results must be a critical part of the investment 'pitch'. This requires a structured understanding of the thinking and linkages made by these investors, and the establishment of a clear narrative that links Canada's strong credentials with business leaders' ambitions for personal and corporate success.
- A distinct Canadian investment proposition is apparent. Synthesis of respondents' views of Canada with those factors that they valued most highly in terms of the investment-making decision process revealed a three-part brand proposition that Canada can claim:
- A thriving marketplace – Investors can find all the infrastructure and support required to succeed and be profitable.
- A talented labour pool – Canada enjoys the most basic ingredient to success in the target sectors: high-quality, well-educated and talented people. An abundance of qualified individuals with the skills to help a company achieve its objectives can be found.
- A environment almost like home – Canada offers a business environment that is both close to the U.S. home market and similar in terms of culture and approach to business. In examining potential investment options, Canada offers a unique advantage – posing lower risks and offering higher returns.
- Highly targeted messaging tactics are needed. Respondents indicated that they rely upon a very precise number of information sources: business media, trade media, studies and consulting reports. The implication is that strategies must be developed to penetrate the relatively closed loops within which these business leaders find their information.
- Overall, U.S. investors express interest in Canada. Of U.S. executives polled, 79 percent are said to be very likely or somewhat likely to invest in Canada in the next few years and 74 percent said that the benefits of investing in Canada outweighed the disadvantages.
- Success stories and third party reports are effective. Respondents indicated that the experiences of other business leaders – particularly their success stories – and information-intensive communications from the government were deemed persuasive.
Date Created: 2002-07-30
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