SimplySwiss

Keeping The Swiss Army Knife Swiss

As reported earlier this summer through Bloomberg by Paul Verschuur, “a retired Swiss Army colonel is petitioning the Defense Ministry to keep the famous pocket knife issued to the Alpine nation's soldiers Swiss following reports that the next batch of 65,000 could be made in China.

Alois Kessler, a lawyer who served as a reserve officer until 2004, began his campaign after hearing that World Trade Organization rules may mean the government has to consider bids from anywhere in the world for its new batch of Army knives.

“A Swiss Army knife with a Swiss cross on it, and ‘Made in China' on the back, won't be accepted at all well,'' Kessler said today in an interview from his Schwyz, Switzerland, office. “I have real doubts that China would manage the same standards of quality'' as the Swiss product, he said.

Based in nearby Ibach, Victorinox AG has provided pocket knives since 1909 for the Swiss Army, as well as Pope Benedict XVI and 5.5 million others annually…

“There is a need for a new army knife,'' said Peter Lyoth, a spokesman for Armasuisse, the Defense Ministry's procurement agency. When asked if the knife could be ordered from China, he declined to comment.

Kessler said he is trying to convince the Army that the knife would qualify for an exemption to the WTO rule banning discrimination against foreign bidders. Alternatively, he argued the government is free to set quality and environmental criteria that non-Swiss bidders are unlikely to meet.

“It's an emotional thing, too,'' Kessler said.” (Primary Source: www.bloomberg.com)

Swiss Products Made By Non-Swiss Companies Spur Fight For National Brand

Here is an extract from a July 3rd, article by Paul Verschuur which addresses the value of the Swiss brand in companies’ marketing practices.

"ZURICH: Thomas Minder's family-owned company has marketed mouthwash using the white cross and red background of Switzerland's flag for three generations, relying on the country's reputation for quality, purity and reliability.

" 'Swissness' in marketing consumer goods is absolutely essential," said Minder, chief executive officer of the company, Trybol. "It's worth more than Coca-Cola."

Minder is at the forefront of a campaign to outlaw "Swiss" yogurt made from U.S. milk and "Swiss" cosmetics produced in Germany. Watchmakers, including Swatch Group, proposed last week the tightening of rules for "Swiss-made" timepieces as part of efforts to preserve the national brand and protect Switzerland's 240 billion francs, or $197 billion, worth of exports…

About 6,400 registered trademarks contain the Swiss cross, the country's name or another reference to Swissness, according to the Meyer Lustenberger law firm in Zurich, which researched the issue for the government. But 220 of the trademarks are owned by foreign businesses, and there is also a growing tendency among companies boasting Swiss roots to make their products abroad to cut costs, said Simon Holzer, a lawyer for the firm.

Commercial use of the Swiss cross is illegal, even for products made in the country, but the government recognizes that the law, which permits use of the emblem for decorative purposes, is ambiguous and difficult to enforce, and it has proposed clarifying the rules.

The Federation of the Swiss Watch Industry has urged the government to insist that at least 80 percent of a mechanical watch, or 60 percent of an electronic one, must come from Switzerland for it to qualify as Swiss-made. Under current rules, only the mechanics have to be at least half Swiss. About 40 million fake Swiss watches are made worldwide each year, compared with 25 million authentic timepieces, according to figures provided by Jacques Duchene, president of the exhibitors committee at the Baselworld watch fair.

Minder said the problem extended beyond watches. In May, he took out a full-page advertisement in a local newspaper urging Emmi, the largest dairy company in the country, to stop using the Swiss cross on yogurt made and sold in the United States. Emmi said it has to use American milk because of U.S. health regulations. The yogurt packaging does not say that the milk that made the yogurt is Swiss, but it does use the Emmi logo containing the cross.

"It's hard to understand why Swiss companies shouldn't use the Swiss cross," said Ruth Stadelmann, a spokeswoman for Emmi, who added that "there's got to be a clear, single rule" governing all uses of the national emblem.

The government has acknowledged that enforcing the ban on use of the cross is not feasible and has said that it will propose changing the law to allow both the emblem and "Made in Switzerland" to be used for any product or service that is legitimately Swiss…" (Primary Source: www.iht.com)

Presence Switzerland: Branding A Nation

Founded in 2000 by the Swiss Federal Council and parliament, Presence Switzerland is an organization that has been charged with the strengthening of Switzerland's image abroad. As it is explained on their web site, branding a nation is important for many reasons: "In today's global society countries vie with each other for the world's attention, for people, for foreign investment and capital. Where people go for their holidays, where companies invest, where universities select scientists for their research activities, or where major conferences are held - all these decisions affect the prosperity of a country. And they are made by people. Their decisions are influenced to a greater or lesser extent by the image created in their minds by the country concerned. The way a country is perceived abroad is central in such decisions. A country therefore cannot allow itself to be indifferent to its image abroad. This is not only true for the political scene but especially for foreign opinion-makers, the opinion 'multipliers' of society. This is where the concept of nation branding comes in. Nation branding is a process by which a country creates a fair and balanced image of itself for a particular purpose. It is intended to ensure that its image is not dominated by events from the past, but corresponds with current reality and is oriented to the future. Nation branding is successful if a country has a clear identity and is heard in this age of information overkill. If this can be achieved the country will stand out above others, and the images it generates in peoples' minds become sharper and closer to reality." (Primary Source: www.presence.ch)

The Swiss Passport

The most obvious visual shorthand for any one country is its flag and yet, when it comes to the design of passports, very few countries leverage this asset opting instead to emblazon their monochrome passport covers with a much more elaborate gold or silver design. The Swiss however have taken a different approach. Staying true to the country’s brand identity, the Swiss passport leverages the design of the Swiss flag. The white equilateral cross on a red background is telegraphic in communicating at a glance the origin of the document and its owner. As is evidenced by the numerous brands showcased on this blog, the Swiss as a whole are extremely savvy integrated marketers. It is not surprising therefore that their passport would also be treated as a vehicle to showcase their meticulous image and brand management know-how to the world.

"Switzerland: A Brand Name That Sells" - Part III

"Any brand or company name which uses the concept of Switzerland or the word “Swiss” is exploiting the image that is associated with these. The central register of Swiss companies lists around 2000 active firms whose names include the words “Schweiz” (German), “Suisse” (French), “Svizzera” (Italian), “Switzerland” or “Swiss”. It is likely that many more play on the “Switzerland” brand by using the initial letters “Sw…” (Swatch being an obvious example). The name of the new national airline “Swiss” makes no compromise in this respect. Yet brands, company names and labels announcing the country of origin are not the only methods used to tell potential buyers where a product comes from (or give a sometimes less than wholly accurate indication of the provenance of items manufactured in a number of stages). Often, the product itself and the packaging in which it is presented exploit familiar symbols or depictions of flags to create a link to the positive image of a country." (Primary Source: “Switzerland: A Brand Name That Sells” by Rudolf Pauli for UBS OUTLOOK, 2002)

"Switzerland: A Brand Name That Sells" - Part II

A survey of citizens from the European Union has shown that "the conventional stereotype of Switzerland as a country of mountains, banks, watches and chocolate continues to enjoy widespread currency. In addition, the "Made in" image of Switerland has long been associated with premium inernational quality, exclusiveness, above-average levels of environment friendliness and precision. A recent survey carried out by Wirthlin Worldwide asked interviewees what qualities they associated with Swiss companies. The responses: conservative, closed, discreet and efficient." (Primary Source: “Switzerland: A Brand Name That Sells” by Rudolf Pauli for UBS OUTLOOK, 2002)

Switzerland: A Brand Name That Sells - Part I

In a 2002 article titled "Switzerland: A Brand Name That Sells" Rudolf Pauli outlines for the readers of UBS OUTLOOK, the importance of the Swiss brand. The next few postings will provide excerpts from this insightful article.

"For potential buyers, subjective assessment plays a crucial role in deciding which product or service to choose. But how does a customer form a personal judgment of the quality or value of a tie on display in an airport duty-free shop? Apart from surroundings, mood, the need for a particular item and a variety of other factors, brand, corporate and country image have an important role to play. Customers who have only limited information about one of the three aspects of the image will rely more on other ingrained perceptions. They may be familiar with the brand but not with the company, and may know very little about the country the tie comes from. As a result, they may be obliged to rely largely on the basis of the brand image they already have in their minds. This is where the “Made in” label comes in, helping customers who may know little or nothing about the brand and the company that produces it. This in turn gives rise to the so called halo effect, where the customer’s assessment of various factors – chief amongst them product quality – is colored and influenced by the values linked to the country image. Thus the image purchasers have in their minds of a country affects the marketability of a brand.” (Primary Source: “Switzerland: A Brand Name That Sells” by Rudolf Pauli for UBS OUTLOOK, 2002)

Branding Swissness

For anyone who may have an interest in the Swiss brand, a working knowledge of German and will be in Zurich on June 13, HTP St. Gallen will be hosting a day-long seminar about “Branding Swissness”. Speakers will include lawyers and various business professionals (including senior management from Kambly Cookies and La Prairie) who have expertly leveraged the equity of the Swiss brand to their marketing advantage. (Primary Source: www.htp-sg.ch/swissness)

Examining Swiss-Labeled Products

The Swiss Federal Council is showing renewed interest in regulating the use of the Swiss flag in the interest of safeguarding its image and its economy. The interest comes from the ever increasing number of brands and products manufactured outside of Switzerland which are making use of the flag. Not only does this detract from the caché of those products which are genuinely made in Switzerland, it also makes it more difficult for consumers to identify authentic products without reading the finer print. A recent cartoon in the Coop grocery store publication is captioned: “The Swiss Federal Council intends to better control the commercial usage of the Swiss label.” (Primary Source: Coop grocery store and general news)

White On Red – United Colors of Switzerland

In 2004, the Museum of Communication located in Bern, Switzerland’s capital, hosted a temporary exhibit called “White On Red – United Colors of Switzerland” which featured a variety of products, designs and graphics that somehow leveraged the visual of the Swiss Flag. According to the museum’s online archive: “At every turn, you encounter the Swiss cross, at counters, in display windows, in shops and at sales booths: as the national emblem represented in a variety of different ways, as a logo on yoghurt containers and pots and pans, as a design on mugs and handbags or worn proudly on the T-shirt of a sports fan. As you walk through the exhibition, you are continuously confronted with the question of why the Swiss cross is currently experiencing a surge in popularity: has it been infused with new symbolic meaning or has it lost its significance?” (Primary Source: www.mfk.ch/weissrot.html?&L=2)