I was in Istanbul earlier this week to present at a Wednesday morning meeting of the CEO Club. Unfortunately my visit to Europe’s 2010 “Capital of Culture” was too brief to allow me to properly explore the city, but it was just long enough to remind me that you can never be too careful about what you say to the press. An email interview with Haber Türk newspaper was published on Wednesday with the title “Turkish companies have a long way to go to become global brands.”  That may not have been the most politic statement to have publicized the morning I was due to present to 200 Turkish CEO’s but I do believe it is true.

 My comment was made in response to the question “Are Turkish brands making progress on the way to globalization? Are we moving ahead or standing still?” To which I answered:

Several Turkish companies have started down the path to establishing a global footprint, but many of them have done so simply by expanding distribution or through acquisition. But simply having a presence in a new country or owning an existing brand is not enough. A brand exists in the minds of its consumers. To create a strong global brand—one that people in many countries want to buy—these companies now need to develop an appealing and differentiated brand positioning that will transcend local culture. So I would say there is still a long way to go before we see a strong global Turkish brand.

I should have realized that the last sentence was going to get the most attention! But then, just because a company has a big business and a well-known name at home does not mean it will be able to recreate that success elsewhere. As I commented in response to another question, the Turkish brands Efes Pilsen, Koton, Mavi Jeans, and Ulker are all in the process of extending their presence outside of Turkey. But how many people really know what these brands stand for? And how many find them more appealing than their existing brand choices?

A related question asked by the journalist was, “Is the ‘Turkey’ name strong enough to pull its brands towards becoming global? Or will the brands highlight Turkey?” I answered that I thought it more likely that successful businesses and brands would reflect well on Turkey. This question was fully explored later in the day at a session organized by Millward Brown Turkey on the challenges facing Turkish companies with global aspirations. The discussion was moderated by Dr. Ipek Altinbasak, a member of the Faculty of Economics and Administrative Sciences at Bahcesehir University. Since Dr. Altinbasak conducts research on country image, it was natural that she should raise this topic. The following points were highlighted in the ensuing discussions:

• Lack of knowledge is a big factor in why the name “Turkey” may not be seen as an immediate endorsement of quality. For instance, few people In North America or Western Europe realize the strength of Turkey’s agricultural, white goods, automotive, or apparel industries.
• The value of Turkish provenance differs by country. The connotations may be a less positive in a country like Germany and more positive in Spain, where some aspects of the culture might be considered somewhat similar. Consumers in Eastern European countries and Russia might also be more accepting of Turkish brands as a sign of quality. And, of course, as the “bridge between Europe and Asia,” Turkey has strong potential with Middle Eastern and Asian countries. As a result, Turkish brands such as Koton, Beko, and Vestel list Azerbyzhan, Syria, and Saudi Arabia among the countries in which they aim to develop their brands.
• Confusion exists over the origins of many brands. In Russia, the Turkish apparel brand Collins is thought to be American. Similarly, in Turkey, the Spanish brand Zara is often thought to be Italian. A survey conducted by Millward Brown Turkey confirms this observation. Considerable confusion existed over which brands are Turkish in origin, although being seen as part of Turkish culture is a positive asset for many brands.
• Last but not least, it was observed that the image of a country does take time to establish itself. Today many people around the world regard German cars as high quality and attribute that quality to the country of origin. But is that really so? Is it not more a matter of Porsche, Audi, and Mercedes helping to build that reputation by consistently producing quality cars? It is a process that takes decades not years.

To my mind, if Turkey is to establish a strong, positive reputation within the next few years, then it needs to find something that will disrupt people’s existing perceptions of the country. How might that be done? Well, how about the launch of a world-beating sports car? The Etox Zafer was supposedly created because the founder of the Turkish automotive company Etox was not allowed to drive a Maserati on display at a car show. The Zafer  (which means Victory) is meant to be launched at the end of 2010. Few people in our meeting had heard of the car but if the Etox Zafer can live up to its publicity, then maybe it has the potential to make people outside the country think twice about what Turkey stands for.

So what are your thoughts? Do any Turkish brands have a strong presence in your country? Which ones? And what about the role of provenance in branding? What does it take to create a strong country-of-origin image? Please share your ideas.

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