Brand Estonia- Marketing Concept of the Business Area

A FRESH AND FORWARDLOOKING NATION Marketing Concept of the Business Area of Brand Estonia

Contents Estonia, Inc.....................................................................................................................................   4 Introduction to the Marketing Concept for the Business Area of Brand Estonia . . .....................   5 What Are We Saying? How Are We Saying It?............................................................................ 15 Communication Levels................................................................................................................... 20 Creating Messages......................................................................................................................... 23 Summary ........................................................................................................................................ 33

Estonia, Inc. The economic indicators of Estonia and the size of the labour force could make one confuse it for a large international corporation, whereas actually, it is a country.

There are other traits that we share with well-organised corporations – thin leadership, contributing to the greater efficiency of processes, quite a lot of clever people and our own distinguishable identity.

Identity is at the core of the marketing concept of the Estonian business area. How to express ourselves, how to present ourselves so that the business sectors of the world had a better look at the advantages Estonia has to offer.

Estonia is home to one of the most ancient nations of mainland Europe, but unlike many other old nations we do not dwell on the past. Instead, we look to the future. Knowing how to adapt and doing it faster than many others has been a part of our character throughout the ages. We are a fresh and forward-looking nation. You might want to be ready for positive surprises when talking to us. Thus, doing business with Estonia is natural and comfortable for international enterprises – we are cut from the same cloth.

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Introduction to the Marketing Concept for the Business Area of Brand Estonia The marketing concept of the Estonian business area helps the state and business community to shape Estonian reputation in harmony. Introducing Estonia is easy when the recommendations provided here are taken into account. Making presentations, compiling booklets and even conducting advertising campaigns all follow a certain pattern, which ensures that: uu

the groups representing Estonia show the same image of Estonia, and

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business communities around the world have a uniform understanding of our main arguments.

We cannot change facts, but we can present them in a way that they would be appealing to entrepreneurs and clearly highlight our strengths.

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What Is Expected From Us? Our recent history has shown that the economic success of Estonia is largely dependent on our ability to cooperate with strong enterprises around the world. From Microsoft to Mitsubishi, from ABB to Ericsson.

When it comes to states and nations, entrepreneurs leave emotions aside. First and foremost, countries are, above all, viewed as a part of a market or a region. Other aspects – from the tax system to resources and cultural background – are secondary.

Entrepreneurs are more likely to look for measurable parameters in the cultural context as well, since they can be compared and inserted into formulas. Formulas, which allow them to calculate commercial success.

This is the main difference between a country as a tourist destination and a country as a business environment – tourists react to arguments that trigger short-lived emotions, but businesses want to see potential profit and a suitable business climate.

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Serious enterprises that can add value to Estonia will only choose to do business with us if: uu

they see it is possible to operate effectively here and that it is useful to do business with local enterprises;

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we can prove that we have great experiences in communicating with international enterprises;

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they do not have to take on too many obligations before the state and/or the people;

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several risks are managed well on the state level, administration is clear and transparent;

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they can reconsider their decisions without much ado;

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there is a good infrastructure and shared services;

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competent labour force is available and labour policies are flexible.

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Why Is Brand Estonia Necessary?

The identity of a country matters despite the pragmatic nature of the business world and on the other hand just because of it. How we present ourselves is the key to understanding us.

The clearer and more consistent the image of Estonia is, the easier it will be to position us and our strengths – both geographically as well as culturally.

It is hardly surprising that the background of a small

The image of our business environment puts us

country is unknown in this vast world. However,

among reliable northern countries, presenting us as a

people are aware of the different work attitudes in

fresh new player looking into the future.

Scandinavian and Mediterranean countries, and they know what German precision means.

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Connection between the Business Environment and Brand Estonia The umbrella concept of Brand Estonia is nothing more than a framework to clarify and visualise our character. It also includes the business environment, which is defined by the combination of two cornerstones: progress (our ability to adapt fast) and Nordic influence (rational thinking caused by climatic conditions).

Estonia is a land of contrasts – the co-influence of seemingly distinct phenomena is seen here every day. The ancient walks hand in hand with the new, the northern untrusting nature with extreme openness, quietness with affection and small size with great ideas.

Selling our emissions allowance is a good example of the encounter of rational thinking and fast adaptability: only Estonia can sell its unused carbon credits and receive a network of electric car charging stations covering the entire country in return. As a result, our air is even cleaner and we are also the first country in the world whose entire territory is covered with a

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fast-recharging infrastructure necessary for electric car users. This makes us an interesting testing site for electric car manufacturers all over the world. This story characterises Estonia’s potential and thus it is worth telling it to others as well.

A country that connects the interests of the state, the nation and the private sector as successfully as this is a worthy partner to the most ambitious endeavours.

Focus Nordic harmony with our environment, freshness and forward-looking practicality are the keywords that carry our identity.

Estonia is not a market for selling things. We are a user-friendly environment where businesses can be created, maintained and developed – on the international level as well. For enterprises we act as a safe and smart harbour surrounded by large markets in all directions.

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Who Are We Talking To – Target Groups Estonia and the local business environment are mainly introduced to people who are unfamiliar with Estonia, be they potential investors or trade partners/intermediaries. In any case, first impressions of us are important to them.

In which region are we located? What are our strengths? What characterises our nature? These questions need uniform answers. Advertisements should give general answers (visual/sensory), while specific answers (verbal/informative) should be included in presentations.

There are three primary target groups: Trade partners or the potential distributors of our

Investors need the same legend to convince them-

goods all over the world. In addition to great prod-

selves and their organisations. Every investment entails

ucts, they also need a legend to resell. The legend,

a risk. Especially a cross-border investment to another

which the brand helps to create, gives that special

country that is not exactly well known. It is natural

Estonian aura to completely ordinary goods. Just like

that the people taking this risk want to comprehend

the legend of precision accompanies Swiss goods

the environment they are putting their money into.

and the legend of a natural approach and durability

We are sure that once investors become interested in

accompanies Swedish products.

Estonia, they will want to understand it through and through. But in order to spark that interest, decisionmakers need to be inspired in the right way.

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The third and growing target group is made up of the buyers of Estonian services all around the world.

For them, the image of our country is a certain quality guarantee that encourages them to try out specific services. No one doubts that Swiss bankers apply utmost sensitivity to their work – similarly, no one should doubt that e.g. the e-health solutions created in Estonia are second to none in modernity and efficiency.

Both the state and the private sector communicate with all three target groups on different levels. The business area marketing concept is intended to give an introductory overview of Estonia to these three target groups.

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What Are We Saying?

How Are We Saying It? The message of our business environment stands on four strong legs or basic arguments: 1. Location

logistical infrastructure that allows us to effectively

Our geopolitical position, compactness, logistic capa-

transport goods, knowledge and people on the east-

bilities and thousands of years of communication with

west axis.

nations to the north, west and east of us.

2. Ease of doing business

We are one of the Nordic countries and an inte-

An investment-friendly tax system with transparent

gral part of one of the most valuable regions in

and well-functioning legislation. We have adopted

Europe, the core of which is Scandinavia. This is obvi-

the approach of a liberal economic policy, where pri-

ous in our sense of aesthetics, our appearance and

vate property is sacred and untouchable and where

temperament.

all entrepreneurs are treated equally. Due to the mod-

Logically thinking, we are not an attractive market.

The actual situation, however, proves that Estonia is a noteworthy development and production platform for international knowledge-based enterprises (e.g. Skype, Ericsson, ABB etc.). As a European Union border state, we also have a highly developed

esty of our market volumes we have no real need to artificially protect our market participants. Thus, all new investors and foreign partners are as welcome as the ones who have been doing business in Estonia for years.

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Economic freedom, the ease of doing business rating,

It is not about the Internet, it is about a way of think-

investments per capita, an exceptionally small pub-

ing. We know how to use (information) technology

lic debt, membership of the Eurozone, low corruption

to create a convenient infrastructure that satisfies our

index – all of that is evidence that Estonia deserves

needs as a slightly introverted nation. Skype is a great

further exploration. We are like the Switzerland of the

alternative to have a chat with your neighbour when

north, except our tax system is considerably fresher

there is a blizzard outside; an ID card allows peo-

and user-friendlier.

ple to use bank and state services even in places that

3. ICT sector Information and communication technology that operates on the grassroots level of the country and connects people to their state.

authority. Broadband Internet access in Estonia is a human right not a privilege. It is no wonder that Estonia is one of the most powerful start-up countries, that both the NATO Cyber Defence Centre and the

We are not a playing ground of mad hackers. We are

EU IT Agency operate here, and more than 90% of

a country meant for the people, where systems act in

the population submits their income tax return over

the best interests of its citizens, making life fast, con-

the Internet.

venient and safe.

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are kilometres away from the closest bank or state

4. People

always keep their promises. These traits have devel-

A communicative and clever nation with an evenly

oped thanks to our continuous culture, which has

high level of education.

been slowly baking during the 10,000 years we have

Higher education has been pursued in Estonia since the 17th century. Considering the average level of education, Estonia is one of the most outstanding countries in Central and Eastern Europe.

We understand what we are told and are able to respond. Estonia is one of the few countries not historically linked to England where the rate of people who understand English is well over 50% of the population.

been living here. It must be noted that Estonia also has one of the largest collections of folk songs in the world.

Such a combination of basic arguments makes us pioneers. Time has shown that we are able to adapt to all changes quickly and efficiently thanks to our forward-looking nature – we hold the world record in adapting. This is what makes doing serious international business in Estonia so easy and gives everyone a good reason to become our long-term strategic

Estonia is one of the most sparsely populated coun-

partner. The world may be a chaos, but we are willing

tries in the world. The locals are balanced, honest

to be the engineers of chaos.

and hard-working people who never speak much, but

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Character Basic arguments of the business environment are just a collection of facts. They only become memorable thanks to a characteristic manner of expression that is typical of Estonia.

The “positively surprising” Estonia wants to be

pected and non-cliché images of ordinary things can

remembered by business communities as:

be shown to highlight facts that make us seem like a

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a fresh and forward-looking and

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user-friendly business environment.

industrial subjects can be connected with suitable images of the nature or people etc.

The first describes us from the point of view of the

Our character must be obvious from the words, visual

nation and the other from the point of view of the

language, background music and attitude.

environment. Both aspects can be stressed; unex-

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fast-reacting and forward-looking society. In addition,

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Communication Levels The state must shape the reputation of the business environment on two levels: 1. The umbrella level, which addresses Estonia in general and where messages are guided by the four basic arguments.

2. The sector level, which in addition to the general level of Estonia also handles one or more economic sectors in depth. Here, the so-called key sectors are in focus.

Key Sectors The state is a universal platform for a multitude of business endeavours. However, different countries have certain key sectors that shape their business reputation. We know Germany is a leading industrial state and Denmark emphasises its creative economy.

This does not mean that either of these countries lacks power in the financial or telecommunications sector. The issue is simply this: it is not practical to put all your eggs in one basket when creating an image.

Over time, a reputation can be reshaped. Take for example England, who has in the past years moved from the image of an industrial giant to the image of a country focussed on smart service economy.

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The key sectors in today’s Estonia are: uu

Machinery and metalworking

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Wood processing and furniture manufacture

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Electronics and components

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Global business services

In addition to the key sectors, we also have two other sectors that are vital to all other sectors in Estonia.

They are: uu

Information and communication technology (ICT)

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Transport and logistics

Special attention is paid to these two sectors since

We have a long and successful history in all four

they are by nature already integrated into Estonia’s

areas, which employ highly educated people. All the

basic arguments. Therefore, the context in which

sectors are also characterised by a high international

Estonia is discussed (either on the umbrella or the

level and a long value chain. The state can see that

sector level) does not matter – logistics and ICT are

the resources invested in these sectors result in high

always represented. The first due to our location and

productivity for both the country and the nation.

the other via the sphere of information.

Therefore, they are well suited to be the first serious message bearers and ice breakers sent from Estonia out into the world. What is more, all sectors can share several success stories and convincing statistics.

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The Point of View of the Entrepreneur Private entrepreneurs mainly give their partners/inves-

sentations or the basic arguments of Estonia. In

tors information that concentrates on themselves

the long run this way of doing things will prove

and their sector. However, it is entirely commonplace

to be more beneficial than building up a message

to provide an overview of Estonia to unknown part-

from scratch or skipping an introduction of Estonia

ners – this helps the listener to understand better the

altogether.

wider background of the enterprise.

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As a brand, Estonia can be just as strong as its peo-

In addition to the state, we see the marketing con-

ple’s faith in it. If we believe that Estonia is a fresh,

cept of the business environment as a tool for

forward-looking country that is very user-friendly

entrepreneurs. Here one can choose the most suita-

for businessmen, then it is. Let us shape that image

ble resources depending on one’s goal – presentation

together on the basis of the principles of Brand

backgrounds, photographs, videos, facts for pre­

Estonia.

Creating Messages Structure of Messages Estonia has four basic arguments and a fresh and forward-looking character. Every basic argument is equipped with a myriad of facts. All of them together

one basic argument must always be clearly identifiable. Be it our location, ease of doing business, ICT or

Character of the business environment

Ease of doing business

basic arguments through facts or visual material but

ICT

Every basic argument can be combined with other

FRESH AND FORWARDLOOKING NATION AND BUSINESS ENVIRONMENT

People

to all other countries in the world.

Sector level

ronment, which outlines our distinctiveness compared

Location

form the umbrella level of the Estonian business envi-

Umbrella level

Estonia’s positioning POSITIVELY SURPRISING

S E C T O R S

Basic arguments Arguments and facts Business activities

the people.

Lk 23 23

Clear communication is based on a well-posed prob-

Example of creating an advertising mes-

lem. The most important task of the person posing

sage on the umbrella level of the business

a problem is to choose a basic argument suitable for

environment:

the target group and to build a message around it.

Task synopsis: it is claimed that a little over a third

For example: if we want to convince heavy industry

of the decisions of large enterprises on whether or

enterprises to consider Estonia, then the most suita-

not to enter a country are determined by the exist-

ble basic arguments for a message are our closeness

ence of competent human resources. It is not the

to major markets and our logistic capabilities that

total number of people that is considered, but their

are supported by our ports, a great road network etc.

work experience, ambitions, language skills, level of

Our closeness enables to save on the costs of trans-

education etc. In developed markets with interna-

porting large machinery and our logistic capabilities

tional enterprises it would thus be more than logical

convince enterprises that this potential can be real-

to emphasise the human quality of Estonia.

ised. Or if we want to advertise business services then our human potential and the education level and language skills of our people are the important factors.

Business services require international communication, language skills and a high level of comprehension.

Solution: if we combine references to the fact that educated people live in Estonia (the basic argument in focus: people 1), the portrait of a young Estonian (the fresh and forward-looking nature of Estonia as a business environment 2) and add the fact that Estonia that has sent the greatest number of viable start-up

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companies to the world (helpful fact from the ICT sector 3), then the result is a strong message that encourages the investors of all areas. Such a blend of elements is fresh, balanced and forward-looking all at

Estonia’s positioning

ing the quality of people’s education 3a) or the fact that 99% of upper secondary school pupils in Estonia learn English (emphasis on being internationally oriented 3b).

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Lk 26

Basic arguments

3b

3

Ea do se o bu ing f sin ess

providing higher education in the region (emphasis-

Character of the business environment

1 3a

ICT

University of Tartu is one of the oldest institutions

FRESH AND FORWARDLOOKING NATION AND BUSINESS ENVIRONMENT

2

cat ion Pe op le

about start-ups was replaced by the fact that the

POSITIVELY SURPRISING

Lo

adjusted to a more humanitarian area if the fact

Sector level

Alternative solution: the same example can be

Umbrella level

once.

S E C T O R S

Arguments and facts Business activities

Example of creating an advertising

business services. This direction is useful to the state

message on the sector level:

of Estonia in two ways: on one hand it livens up

In larger target markets where Estonia is already known it is quite common that the state as well as various other organisations (local governments, associations, unions, clusters etc.) introduce particular

export and on the other hand it brings important people here, people who can enjoy the wonders of our land on the spot and be convinced that our image corresponds to the reality.

sectors. This is also typical of sector-specific fairs or

Solution: if we take the invitation to hold a confer-

seminars.

ence here (sector-specific call 1), show Estonia and

In this case, the message must be based on the strongest argument of the specific sector and include one or several facts rooted in the basic argument.

These facts must then be combined into an attractive whole that carries the character of Estonia.

the local efficient working environment and tie it to the fact that Estonia is close to the most important markets in the region (basic argument: location 2 and 3), we get a message that functions on many levels.

This message “feeds� a fresh idea to the audience, feels hospitable and hints that it is very easy to take

Task synopsis: the service of organising confer-

advantage of the possibilities available in Estonia, as

ences has high export potential in the context of

they are all so conveniently close.

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IN THE MIDDLE OF EVERYTHING Estonia offers great places to hold conferences.

And it’s near to every important market in the region.

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Alternative solution: the same example can be made more technocratic if instead of our closeness we stress the wonders of ICT that need to be expe-

Estonia’s positioning

facts or pictures. We can say that the message is successful if the created advertisement looks fresh and

Character of the business environment

3a

Ea do se o bu ing f sin ess

3b

ICT

le

Basic arguments

op

ion 1

3

2

Pe

It cannot be overshadowed by supporting arguments,

cat

must be identifiable after seeing/reading the message.

FRESH AND FORWARDLOOKING NATION AND BUSINESS ENVIRONMENT

Lo

The basic argument chosen to play the central role

Sector level

skills of our service personnel (3b).

Umbrella level

rienced (3a), or the competence and great language

POSITIVELY SURPRISING

S E C T O R S

Arguments and facts Business activities

forward-looking, corresponds to the main rules of the marketing concept of Brand Estonia and carries the main message of the task.

Lk 29

The brand design principles can be found at: brand.estonia.eu

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Structure of Message in Presentations and Publications Advertisements can only concentrate on one subject or fact at a time, but our business environment can be introduced more broadly and more thoroughly when Estonia is presented in the Internet, via publications or at seminars. To a certain extent, of course.

1. We always start with our location and geo-

2. Doing business here is easy – the fact-illus-

political position – we are a Nordic country and

trated part of various internationally renowned

our position in respect of the most important markets

Estonian economic indicators and the main parame-

around the Baltic Sea is advantageous. Large markets

ters of taxes and regulations. This is the universal part

are merely hours away. Using different emphases, this

that generally interests both trade partners and inves-

aspect can be steered towards either logistics or cul-

tors and provides certainty that the money put here

tural interconnections according to need. If necessary,

directly or indirectly is in a safe place.

we can talk about both the east and the west. We have considerable logistic capabilities and good compatibility in the east. We are tightly connected in the west through investment relationships, our cultural background and the financial world.

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3. ICT – is one of the pillars of our forward-look-

4. People and culture – education, language skills,

ing nature. This is guaranteed to be sci-fi for many

northern temperament, industriousness, keeping

members of the audience, as even highly developed

promises etc. It all matters, as does the fact that our

countries lack widespread e-services. The world does

language is unique and dignified. It is also thought

not have a public ID card and mobile ID system or

that our people have been here for 10,000 years. As

an X-road platform that would allow the cross-use of

we know, this would make us one of the oldest sed-

the population’s data and the identification of citi-

entary cultures in Europe. This chapter contrasts the

zens safely over the Internet. It is important that the

previous one – we have always been a fresh and for-

audience realise – this is not a dream. This is a func-

ward-looking nation, otherwise our solutions would

tioning reality, which in addition to being convenient

not have come this far.

is also safe.

Every presentation is special. Very rarely can a country be discussed universally and in sufficient detail. Most of the time it is not even recommended, since there is too much information to grasp in one go. As a rule, the introduction of a country is a brief opening to a sector-based issue or a specific offer. But even in this case the presentation must adhere to a certain structure rooted in basic arguments. This helps the audience to understand Estonia better and comprehend the whole of the business environment of Estonia exactly how we want it to appear.

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These four subjects are of equal interest to all target groups. It is important to remember that they are bold claims supported by definite facts.

In case of presentations we suggest following the

resolved merely in a sensory manner – e.g. the stand

principle “a picture is worth a thousand words”.

can be designed to look like a pine forest (reference

You can look for new facts yourself or ask for some from the Estonian Investment Agency of Enterprise Estonia. A presentation can also be livened up with comparative tables and graphs that illustrate the location of Estonia among better-known countries.

Pictures can be obtained from the gallery of Brand Estonia’s website at brand.estonia.eu.

ical essence of solutions like these carries an entire basic argument so that the subject needs no further explanation – it is “focussed”. Graphs, maps, sounds, mood pictures, free Wi-Fi, beautiful service personnel in traditional folk costumes with a modern twist, touch-screens, sleek Estonian design – all modern and innovative approaches are welcome. It is important

The focus is important in case of trade fairs and other

that our fresh and forward-looking nature has a clear

environment-based solutions. When it comes to trade

shape and be seen from afar.

fair stands in particular, one basic argument can be

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to location) or a cyber environment (ICT). The phys-

Summary The marketing concept of the Estonian business environment is a part of the entire system of Brand Estonia. These guidelines did not concentrate on design logic or the principles of contrasts. Nor did we talk about the cornerstones or positioning of the brand. We only focussed on the arguments and combinations that are important when it comes to introducing the business environment. All people who have a heightened interest in the brand of our country can see all the related materials on the website of Brand Estonia at brand.estonia.eu.

Thank you for taking the time to leaf through this document. We are convinced that the more people apply these simple principles to introducing Estonia at business meetings or business-oriented marketing activities the clearer does the image of Estonia as the home of a fresh and forward-looking nation become.

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