BRAND ISRAEL:

AN ANALYSIS OF NATION BRANDING CONCEPTS

AS THEY RELATE TO THE STATE OF ISRAEL

by
Neuriel Shore

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A Thesis Presented to the

FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
MASTER OF ARTS
(STRATEGIC PUBLIC RELATIONS)
May 2010

Copyright 2010

Neuriel Shore

UMI Number: 1476192

All rights reserved

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Acknowledgements
I would like to thank the following individuals for helping me with this project: Ari
Applebaum, Ido Aharoni, Jerry Swerling, Jian (Jay) Wang, Keith Dinnie, Ken Spiro, Rebecca
Weintraub, Shahar Azani, Yarden Fanta-Vagenshtein, and Yosef Kanefsky. They provided
me with knowledge, wisdom and perspective that ultimately enriched the entire research and
writing process. I am and will always be deeply grateful. Furthermore, I would like to thank
my parents for teaching me the importance of following my passions. This project is a direct

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result of their loving support.


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Table of Contents
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Chapter 1: Introduction
1.1: Nation Branding: Definitions and Components
1.2: Nation Branding and Israel
1.3: Project Overview

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4
6

Chapter 2: Brand Israel: A Brief History

2.1: The Early Years
2.2: 1967-9/11
2.3: Post 9/11

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8
11
12

Acknowledgements
List of Figures
Abstract

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18
22
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Chapter 4: Brand Israel Engagement

4.1: Innate Assets
4.2: Nurtured Assets
4.3: Vicarious Assets
4.4: Disseminated Assets
4.4.1: Branded Exports
4.4.2: Internal Buy-In
4.4.3: Brand Ambassadors
4.4.4: The Diaspora
4.5: Focus on Israeli Politics vs. Israeli Culture

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34
35
36
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42
46

Chapter 5: Brand Israel Management

5.1: Brand Structures
5.2: Country-Of-Origin Effect

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55

Chapter 6: Implications and Conclusions

6.1: Recommendations
6.1.1: Identity
6.1.2: Engagement
6.1.3: Management
6.2: Concluding Remarks

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63

Bibliography

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Appendix 1: Cases In Point

Appendix 2: Sample Brand Israel Project

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Chapter 3: Brand Israel Identity

3.1: Brand Israel Mission and Purpose
3.2: Brand Israel Identity: Inclusive or Exclusive?
3.3: Brand Israel Identity Formation


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List of Figures
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Figure 2: The NBAR (nation brand architecture) model

48

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Figure 1: Model of asset-based nation-brand equity

Abstract
Current perceptions of the State of Israel among many global audiences have been
shaped by a combination of factors that have lead to the State being viewed solely through a
conflict prism. The question is then begged of whether or not action can be taken to
fundamentally change these perceptions. The emergence of the field of nation branding has
produced research, lessons and insights into how nations can effectively utilize resources to
shape audience perceptions in accordance with state interests and goals. I argue that this data

can be incorporated into strategic planning in order to successfully influence Israels target
audiences perceptions of the State for the ultimate goal of establishing national security and

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well-being. The purpose of this paper is two-fold: (1) to provide the reader with a basic
understanding of nation branding concepts and how these apply to Brand Israel and (2) to

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offer research-based insights and recommendations for how Brand Israel can be utilized to
establish economic, social and political security and well-being for the State. The data
presented in the project were collected from a variety of sources, which include interviews,
nation branding reports and publications, a comprehensive media scan, articles and reports
provided by Ido Aharani, the Israeli Ministry of Foreign Affairs official charged with
spearheading the Brand Israel initiative, and the text book Nation Branding: Concepts, Issues,
Practice for an in-depth understanding of nation branding. Key findings include and explore
the necessity for Israel to form a brand identity with strong internal buy-in and the social
divisions that threaten, not only a successful branding initiative, but also the States very
existence.

Chapter 1: Introduction
Current perceptions of the State of Israel among many global audiences have been
shaped by a combination of factors that have lead to the State being viewed solely through a
conflict prism. The question is then begged of whether or not action can be taken to
fundamentally change these perceptions. The emergence of the field of nation branding has
produced research, lessons and insights into how nations can effectively utilize resources to
shape audience perceptions in accordance with state interests and goals. I argue that this data

can be incorporated into strategic planning in order to successfully influence Israels target
audiences perceptions of the State for the ultimate goal of establishing national security and

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well-being. The purpose of this paper is two-fold: (1) to provide the reader with a basic
understanding of nation branding concepts and how they apply to Brand Israel and (2) to offer

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research-based insights and recommendations for how Brand Israel can be utilized to
establish economic, social and political security and wellbeing for the State.

1.1: Nation Branding: Definitions and Components

The formal subject of nation branding can be argued to have its origins, starting in

the early 1990s, with the book Marketing Places: Attracting Investment, Industry, and
Tourism to Cities, States and Nations. A nation brand can be defined as the unique, multidimensional blend of elements that provide the nation with culturally grounded differentiation
and relevance for all of its target audiences.1 Keith Dinnie, the author of Nation Branding:
Concepts, Issues, Practice, argues that ...nation branding remains an encapsulation and
expression of a nations true essence, rather than a mere PR exercise.2 Thus, a nations
unique culture can be a core component of its brand identity. French professor Jean-Marc

1Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,

2007. Pg. 15.
2Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,


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Lehu states that brand identity is comprised of 12 components, all of which need to be
addressed when planning branding activities.3 These components include the ...name of the
brand without which no clear and unambiguous...identification is possible; heritage every
brand has a past, a narration of former events; codes of expression graphical characteristics
such as logo, font size and type, colours, etc.; positioning the space occupied by the product
in the minds of its target market; status the necessity of making a clear statement of status,
e.g. market leader, challenger brand; personality the brands character, creativity,
dynamism, independence, etc.; everyday behaviour brands are much more in the public eye

now than in previous times; beliefs the emotional, descriptive and qualitative components
an individual will associate with the brand; values the increasing importance of social

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awareness credentials; projected image the image that the brand desires and that it presents
to consumers; attitudes of the brands consumers towards to it the relationship between

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brand and consumer is now an interactive one; and finally, attitude of the brand toward
consumers the need for brands to study, include and respect their consumers.4
In addition to brand identity, brand engagement and brand management are essential

to understanding what makes a brand successful, relative to its goals. Brand engagement can
be defined as the process by which a brand interacts with audiences to form a relationship.
Brand engagement, as it relates to nation branding, can take the form of proactive efforts such
as press tours, E-marketing campaigns, formal cultural interactions and transnational
organizational partnerships. Engagement can also take the form of more subtle, organic and
personal interactions such as engagement with the nations citizens, experiencing a nations
products, attending a nations educational institution and visiting as a tourist. The manner in
which a nation engages its audiences will have a direct effect on the alignment between the

2007. Pg. 63.

3Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,
2007. Pg. 43.
4Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,
2007. Pg. 43.


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way in which a nation desires to be perceived and the reality of how audiences actually
perceive it.
In brand management, organizations need to not only determine an effective and
efficient mix of products and brands in their portfolio and the relationship structure among the
brands (Aaker 1996, 2004), but also put in place the structure, process and resources for brand
protection, promotion and growth. In other words, brand management is about focus and
coordination among the various brands of an organization.5 From industry sectors to
physical geography, a nation has seemingly limitless potential for how audiences are able to

interact with it. Dinnie explains, at a macro level, a nations customer portfolio might
include its own citizens, nation-trading partners, foreign customers of the nations goods and

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services, international organizations, political allies, political opponents, tourists and inward
investors.6 The complex makeup of a nation requires it to establish structures and processes

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for the purposes of managing its sub-brands. Although it is impossible for a nation to have
complete control over every action in which a sub-brand engages, it is possible for consensus
to be reached through dialogue and collaboration among and between public and private
sectors regarding mutual interests and methods for addressing those interests.
By aligning nation brand identity, engagement and management, an array of national

objectives can be reached. These objectives can include attracting tourists, stimulating inward
investment, boosting exports, increasing currency stability, establishing investor confidence,
increasing international political influence, stimulating stronger international partnerships and
enhancing nation building.7 Although specific objectives may be reached within a relatively
short period of time, it is important to understand that the complexities involved in nation

Wang, Jian. "The power and limits of branding in national image communication in global
society." The Journal of International Communication 14.2 (2008): 12.
6
Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,
2007. Pg. 66.
7
Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,
2007. Pg. 17.


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branding require nation brand strategists to focus on long-term thinking. A country like Israel,
for example, with a history of conflict associated with it, will be challenged when trying to
shift focus to other aspects of the country.

1.2: Nation Branding and Israel

Many nations, especially Israel, experience an identity-image gap. This gap exists
when a nations identity (i.e. its self-perceived true essence) is not aligned with its image (i.e.

how it is perceived by external audiences).8 Israels government and many of its residents are
well aware of how the values that they consider integral to Brand Israel are not shared by

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many of its audiences. In general, different components of a nations identity come into focus
on the international stage at different times, driven by current political events and even by the

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latest movie or news bulletin.9 In contrast, it seems that global audiences constantly and
consistently focus on only one aspect of Israel: conflict.
With media extensively reporting on the Israeli-Palestinian conflict, peoples that do

not have the opportunity to directly engage with Brand Israel receive messaging that portrays
Israel in a critical light. And regions such as Europe, which have opportunities to directly
engage with Brand Israel through business partnerships, cultural exchanges, etc., are also
exposed to elements of tension such as boycotts of Israeli products, political pressures, and
anti-Israel sentiments held by local populations that create barriers for Brand Israel to
successfully reach and influence target audiences. Furthermore, not only is conflict the
primary association linked to Brand Israel, but some audiences have also even established it
as a part of the States core identity. Focus groups recently conducted in the Unites States
have shown that the participants, who represented a range of races, ethnicities, sexes and

Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,

2007. Pg. 42.
9
OShaughnessy, J., and N. Jackson. "Treating the nation as a brand: Some neglected issues."
Journal of Macromarketing 20.1 (2000): 56-64.


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religious beliefs, when asked to describe an Israeli house and its residents that best represent
the countrys characteristics, described a cold, concrete house wrapped in barbed wire and
housing male, bearded religious Jews who were judgmental and unwelcoming.10
With a history of conflict that stretches back to the countrys founding in 1948,
security is one of the Israeli governments highest priorities. Traditionally, national security
refers to physical threats, such as terrorism, warfare and espionage, which can jeopardize a
countrys stability. However, with the acknowledgement that Brand Israel has largely been
shaped by external parties proactively defining it, as apposed to the countrys own

influencers, the Israeli government has recently come to the realization that successfully
utilizing Brand Israel is one facet of its national security. Keith Dinnie argues that brand

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management should be treated as a component of national policy, never as a campaign that

is separate from planning, governance or economic development.11 With a relatively

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significant amount of government personnel and funds directed towards to researching how to
best manage Brand Israel, Israel seems to be on the right track of how it values brand
management and nation branding in general.

There are numerous hurdles that the Israeli government must overcome in order to

successfully utilize Brand Israel. One of the major challenges that Brand Israel has faced and
will continue to face is the perception held by external parties that any attempt to shift focus
away from the Israeli-Palestinian conflict is part of a government-sponsored propaganda
campaign aimed at masking humanitarian crimes committed by the State. Many examples of
governments implementing image campaigns for the purposes of coercing audiences can be
found in modern world history, specifically in the 20th century. The Nazis, for example,
utilized propaganda for the purposes of implementing policies that would ultimately lead to
the murder of millions of people. Thus, Israel, a country that for more than 30 years has been

10
11

Klein, Larissa. "Branding Israel." The Daily Targum [New Brunswick] 23 Jan. 2008.
Dinnie, Keith. Nation Branding: Concepts, Issues, Practice. Chicago: Butterworth-Heinemann,
2007. Pg. 23.


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thought of as being a victimizer of the Palestinian people, needs to be extremely sensitive to
the strategies it uses when engaging in nation branding practices.

1.3: Project Overview

Keeping in mind the goals of this paper, I have structured the remaining content in
the following order: Chapter 2: A condensed history of the State of Israels world image since
1948, as well as a survey of official, proactive efforts taken to gauge perceptions of and

strategically utilize Brand Israel; Chapter 3: An exploration of Brand Israels identity and
implications of that identity; Chapter 4: An analysis of how Brand Israel has engaged

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audiences and the potential that exists to build upon and/or change strategies; Chapter 5: The
application of brand management concepts to Brand Israels unique state, specifically

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focusing on brand structures and the country of origin (COO) effect; Chapter 6: A summary
of research-based recommendations for how to effectively utilize Brand Israel in accordance
with the States interests, as well as recommendations of what parties interested in the subject
matter should further research. Following the recommendations are concluding remarks.
Lastly, the appendix profiles two examples in Brand Israel cultural engagement as well as a
sample project for how to utilize one aspect of Brand Israel.
The data presented in the project were collected from a variety of sources, which

include interviews, nation branding reports and publications, a comprehensive media scan,
articles and reports provided by Ido Aharani, the Israeli Ministry of Foreign Affairs official
charged with spearheading the Brand Israel initiative, and the text book Nation Branding:
Concepts, Issues, Practice for an in-depth understanding of nation branding. Although I
managed to communicate with a few Israeli government officials about the topic of Israeli
nation branding, I was allowed access only to a very limited amount of information regarding
recent and upcoming branding efforts. The reason given for this limited access was that the


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Israeli government is currently in the process of completing primary research relating to
global perceptions of Israel and incorporating insights into branding strategies, and that public

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access to this information at this point in time might pose a security risk.

Chapter 2: Brand Israel: A Brief History

Before exploring how brand identity, engagement and management relate to Brand
Israel, it is worth reviewing how the State has been perceived, especially focusing on the U.S.
Israel relationship, in order to garner a better understanding of the various contexts at work.
Through this review, the reader should be able to recognize historical elements that helped to
shape Brand Israel and how that impression has changed over time. Additionally, a survey of
formal, proactive efforts taken to gauge perceptions of and strategically utilize Brand Israel

will be presented.

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2.1: The Early Years

The State of Israel was officially recognized by the United Nations in 1948three

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years after the end of World War II and the Holocaust. Although Jews emigrated from Europe
to Israel in large waves since the late 19th century in order to escape local persecution, the
mass extermination of six million Jews sent a strong message to the world that
institutionalized discrimination and persecution of Jews was alive and well. Never was the
case so strong for the need for the Jewish people to have a homeland of their own.
Furthermore, it seemed that the very beginnings of the States creation and survival was
somewhat of a modern-day miracle. Five counties, Egypt, Iraq, Jordan, Lebanon and Syria,
attacked the resource-lacking Israel and, yet, only roughly 1% of the Jewish population was
killedcommunicating that the land of Israel was, indeed, destined to be the Jews homeland.
Mandy Katz, author of the article, The Re-Branding of Israel. From war planes to
women: Why at 60 Israels image is taking off in new direction, explains how Israels public
diplomacy was relatively simple in its early years. She states that lobbyingfor arms, aid, for
diplomatic recognitionwas the states official diplomatic behavior. There was little need for
internal concern about its image as the young Israel had gained the worlds sympathy and


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admiration from its David vs. Goliath battle for existence against the assembled Arab nations
in 1948. Diaspora Jews, in particular, were excited by the idea of Jewish sovereignty, claims
Robert Rifkind, whose father, Federal District Court Judge Simon Rifkind, was a prominent
Zionist who received the Presidential Medal of Freedom for work on behalf of Holocaust
survivors. Rifkind explains how many European Jews had just experience WWII and here
were people who seemed healthy and vigorous and they were clearing swamps and building
beautiful cities.12
From 1948 to roughly 1973 Israel was perceived by much of the world as a young,

strong country with a promising future. Mandy Katz explains how the 1960 release of the
movie Exodus starring Paul Newman marked a positive moment for Israels international

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image. The movie was fabulous public relations, wrote Dan Raviv and Yossi Melman in
their 1994 U.S. Israel history, Friends In Deed. The world saw the Newman character, Ari

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Ben-Canaan, as the embodiment of Israel: a tough fighter, farmer and patriot, but also a
sentimental lover.13

These types of perceptions were especially true within the U.S., where a large

percentage of Diaspora Jews lived, and are worth probing into for the purposes of
understanding the roots of the current U.S. Israel relationship. An excerpt from Mandy
Katzs article about a joint event between the two countries captures the essence of the
beginnings of this relationship:
Only Yankee Stadium was big enough to hold the 1956 America Salutes
Israel Pageant celebrating Israels eighth birthday. It is your sacred duty
to attend, intoned one Zionist groups flyerand attend people did:
Tickets started at $1.50 for general admission and 42,455 were sold. The
program kicked off at eight in the morning when an Israeli athlete stepped
off an El Al plane at Idlewild (now Kennedy) Airport and set off running
through city streets, with an official police escort, to deliver a torch of
freedom to New York Mayor Robert Wagner. At the stadium that

12

Katz, Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels image
is taking off in new direction." Moment Magazine May & june 2008.
13
Katz, Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels image
is taking off in new direction." Moment Magazine May & june 2008.


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afternoon, police and fire department marching bands played, the Jewishowned Harlem Globetrotters cavorted and Israels Olympic soccer squad
squared off against and American all-star team. Eleanor Roosevelt and
Miss America ascended the infield dais, as did Miss Israel. Even Marilyn
Monroe came to pay homage, arriving in an open car beside Massachusetts
Senator John F. Kennedy. With them rode the erect and dignified Eban,
Israels ambassador to both Washington and the United Nations. Tall and
always formal in dark suit and tie, the 41-year-old former British army
officer was wildly admired by American Jewsand reluctantly respected
by his diplomatic adversariesfor his forceful oratory on behalf of the
Jewish state. Using skills honed in the storied Cambridge Union debating
society, Ebans adroit politicking had helped persuade Kennedy as well as
another guest, New York Governor Averell Harriman, to call that day for
an end to the U.S. arms embargo against Israel. We are the oldest republic
on earth and the youngest people, Kennedy told the crowd. The Israelis
have the youngest republic and the oldest people. More telling, even, than
the speeches was Monroes presence, which let the world know that Israel,
like the actress, was fresh, sexy and admired by American public figures.14

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Mandy Katz continues to explain how, during this time period, there were plenty of
Israel brands that served as touchpoints for audiences to engage with the State:

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Rifkind, 12 years old when statehood was declared, remembers running

with his older brother from their East Side apartment down to Rockefeller
Center to see the new countrys flag flying among those of the other
nations...El Al itself was a potent symbol. It was reviewed as the vehicle
by which the ingathering of the exiles would take place, says Marvin
Goldman, author of El Al: Star in the Sky. The airlines ferrying of 45,000
impoverished Yemenite Jews to Israel in 1949 was one of several dramatic
airlifts that inspired admiration for the new state among Jews and non-Jew
alike. When Israeli oranges were shown at a trade fair, Rifkind
reminisces, people would go and touch an orange and say, Ah, a Jewish
orange!...Young people flocked to Israel to pick fruit on kibbutzes and
Israel acquired a reputation as a youth mecca. Largely because of all the
good press Israel was getting worldwide after the Six-Day War, tens of
thousands of non-Jews came on long visits from dozens of countries,
according to Raviv and Melman. Sun, sea, sex and often hashish combined
to make Israel a magnet for the curious and adventurous. A tiny
country...was suddenly the place to be.15

14

Katz, Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels image
is taking off in new direction." Moment Magazine May & june 2008.
15
Katz, Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels image
is taking off in new direction." Moment Magazine May & june 2008.


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2.2: 1967 9/11

Mandy Katz argues that between the time period of Israels military victory in the
1967 Six Day War and the 1973 Yom Kippur War, a fundamental shift with how the world
would view Israel started to take form and that Israels world image would only become
increasingly tainted as the years progressed. She explains that the 1967 war was a doubleedged sword from a public relations standpoint. Israels unexpected victory inspired new
waves of euphoria and respect from global audiences but, with the State now a dominant

force in the Middle East, Third World nations soon coalesced around the Arab cause. Katz
continues to explain that hubris may have played a role in Israels near defeat in the 1973

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Yom Kippur War and that, coupled with the States increasingly political clout in
Washington, caused its romanticized image to fade. The honeymoon between Israel and the

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non-Jewish world has come to an end,16 warned World Jewish Congress President Nahum
Goldmann to a 1975 audience of some 600 representatives of Jewish organizations from 62
countries. The Sabra and Shatila massacres in 1982, during Israels occupation of south
Lebanon, positioned the plight of the Palestinian refugees in the international media spotlight.
Also, the term occupied territories gradually replaced the use of Judea and Samaria to
refer to disputed lands. Katz concludes, explaining how, by 1987, when the first Intifada
began, few were pondering the wonder of the Jewish oranges. The slingshot had changed
hands, and Israel was the new Goliath. Where once Israelis had been pictured industriously
reclaiming the desert, they were now scouring downtown streets for body parts after terrorist
attacks. It didnt take long for the second Intifada, which began in 2000, to drown out almost
all non-martial images of Israel.17

16Katz,

Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels
image is taking off in new direction." Moment Magazine May & june 2008.
17
Katz, Mandy. "The Re-Branding of Israel. From war planes to women: Why at 60 Israels image
is taking off in new direction." Moment Magazine May & june 2008.


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From the previous paragraphs, the reader is able to see how Israels world image has
radically changed since its inception in 1948. Consistent with the argument that conflict is
currently the primary, worldwide association with Brand Israel, earlier associations with
Israel consisted of other elements such as its agricultural industry, rapid infrastructural
accomplishments and with being a youth mecca. And even when earlier associations did
include conflict, the conflict was presented in a manner in which Israel was positioned as the
underdog. Additionally, regarding Israels involvement in warfare, not only did the world
court rarely question the States ethics, but it was also validated due in large part to the States

underdog positioning. Since the first Intifada, however, with continual media coverage of
the suffering on the part of, both, the Israelis and Palestinians, the romanticized image of

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2.3: Post 9/11

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Brand Israel had completely transformed to one of the harsh realities of urban warfare.

The attacks by al-Qaeda upon the United States on September 11, 2001, exposed the

American public firsthand to the horrors of terrorism. This experiences with death and
destruction, caused by radical, militant Muslims, helped to create an opportunity for
Americans to indentify with the hardships that Israeli civilians were experiencing on a regular
basis. Furthermore, due to the United States ability to influence global policy, opportunity
also existed to globally position Israel as a victim of terror, rather than a victimizer. These
opportunities, combined with the general realization that Israels positioning in the world is
vital to its survival, various individuals and organizations committed to Israels security and
welfare have taken proactive efforts to gauge perceptions of and strategically utilize Brand
Israel. Below is a condensed timeline of some of the milestones of Brand Israel-related
efforts: