David Cameron, Global Brand Manager

It appears economic growth and confidence has returned (and it is clearly wasn’t linked to August weather). In late July my Economist tells me that national output had “sprinted” ahead by 1.1% in the second quarter.

At the same time the GfK/NOP Consumer Confidence index increased four points to -18, breaking the steady downward trend since February. Now, it is clearly nice that we have bucked a trend of 5 months, but consumers remain somewhat entrenched in negative sentiment. As is often the case, the graph above speaks volumes.

What I found more interesting was the quote from Nick Moon, head of GfK NOP Social Research that accompanies the press release for the latest month’s confidence index, in which he comments:

“Consumer confidence has been in constant decline for the past five months and a further fall would have made a double-dip recession seem a very real prospect. The Government will undoubtedly read these figures with a great deal of relief.”

I don’t doubt this observation is true or the inference that a positive view on the prospects of the UK amongst that nation’s consumers is a vital component for sustained recovery.  The problem, however, is that UK consumer confidence can no longer be heavily relied upon. In fact,  growth largely fuelled by UK consumers risks a return to the conditions that have got us to this uncertain place.

Part of Cameron’s role is undoubtedly that of a brand manager and his UK brand building plans will need to different to that of Blair and Brown. They necessitate much more emphasis on the views of those outside the UK. In fact, never before has the attraction of foreign investment and purchasing power been so important. In recent months our net trade as been neutral – despite the competitive advantage of a relatively weak sterling – so there is much work to do. The second graph above may therefore be as big a concern as that trending UK consumer confidence.

Like all good brand managers he has had a serious think about his target consumers and not surprisingly business leaders in general and particularly those from emerging powers such as India and China feature even more prominently. Consider the recent trip to India, described (by Cameron) as the largest UK trade delegation in living memory. The scale of this initiative and Cameron’s apparent willingness to risk upsetting Pakistan can both be explained as a by-product of a sharper commercial focus and clarity on target consumer. Defending BP (stressing that “thousands of jobs on both sides of the Atlantic depend on it”) in the US was similarly important.

In the spirit of a new brand manager, Cameron needs to shift brand perceptions and hopes to reposition UK from an insular, seemingly self-sufficient country (more visible for its involvement in overseas conflicts) to a nation that is “open to business”  – actively seeking new customers. His promise to emerging powers is that of a business partner of choice.

The desire to rapidly tackle the UK deficit is arguably a significant part this brand building exercise – reassuring the likes of the IMF and global investors that the UK economy is robust and creditworthy. Reputation risk management, if you like.

It also appears that the brand team have been briefed on the new promise. Cameron informed reporters in recent a trade visit that he wanted to refashion British foreign policy to make sure “that whenever any British minister, however junior, is meeting any counterpart, however junior or senior and for however short a time, they have always got a very clear list of the commercial priorities we are trying to achieve, whether that is pushing forward British orders, attracting inward investment or promoting bilateral or unilateral trade talks”.

Unfortunately for Cameron, his ability to control messages and shape service/product delivery is extremely limited – less than even the most budget constrained brand manager. His emotional promise would clearly benefit from business leaders, unions, media, etc, projecting a UK eager, externally focused and willing to compete for business. The absence of tricky world events that force a polarizing decision or two would be helpful as well.

So like most new brand managers, Cameron needs to role model/champion his promise vigorously, enforce the brand guidelines/ethos where he is able and recognise that perceptions will only change with sustained effort and consistent delivery.

The importance of embracing any news, no matter how small, as evidence of the ‘UK brand strategy’ working goes without saying. Another overlap between government and brand management, I guess.

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