Branding and strategic communication in regional clusters

Transcription

1 Branding and strategic communication in regional clusters Per Stensland. V2 apr. 2009

2 Background Most regional cluster initiatives (CI s) in Scandinavia see communication - and to some extent branding - as important. In Norway, we see that all clusters within the two, national programmes focus on it. Both as a result of the CI s own initiative and by the fact that the programmes enforce this focus. In Sweden, the national programme of Vinnova, Vinnväxt, has developed their own support service towards the cluster initiatives- performed by Gullers Grupp on communication. In Denmark and the Oresund-region in particular, we see that several of the clusters see brand building as a success factor, and especially Medicon Valley is recognized as having succeeded in building a distinct cluster brand. Further, in Norway, we have also gone through a branding process for one of the national programmes Norwegian Centres of Expertise (NCE) - including all the clusters. The objective was to establish a brand and a brand strategy for all the nine clusters within the programme. Through that process, we were fronted with many of the challenges and dilemmas that one faces on cluster level as well. However, what are the underlying concepts and definitions? Why should cluster initiatives put weight on this topic? What are the challenges and dilemmas? And, what are the necessary processes within a cluster for making a strategic position and a brand? The objective of this paper is to collect and present a knowledge foundation on cluster branding and strategic cluster communication, by putting light on the issues mentioned above. The method has at this stage been desk-research, however supplemented by dialogue with the Norwegian clusters and with partners both in Sweden and Denmark. Perhaps we also should state a sentence about what this paper is not about: It is not a paper on communication theory and/or with examples of different communication actions that clusters can carry out. This paper is, however, about dilemmas and challenges you are faced with, before you actually go ahead with your activities. Definitions and concepts There are as many definitions of brand and brand building as there are of clusters As a result of this, one must be able to establish some common grounds before it is possible to have a fruitful discussion. Not the idea that one definition necessarily is better than others, however for the sake of having the same starting point. We have experienced many angles and perspectives; some talk about profiling and marketing, others of webpages and brochures. Some focus on internal

3 communication, others on strategic communication. Some use brand and brand building, others use reputation and image as terms. In this paper, by brand we mean the position the cluster has in the minds of the most important target groups. Hence, a strong cluster brand carries a set of clear, relevant and attractive characteristics with high importance for the selected target groups. For a cluster that could be customers, investors, students, professionals etc. Brand building, then, is the process where the cluster defines the wanted strategic position and the actions derived from it. However, how does strategic communication fit in? Among the Norwegian cluster initiatives, the term brand is more commonly used than communication. Among the Swedish CI s, communication or strategic communication is more common. The Swedish communication company Gullers Grupp has been hired by Vinnova to carry out support and training on cluster communication. One of the experiences was that it was difficult to differentiate between the two terms (Gullers Grupp, 2008). To be able to communicate, you must have something to communicate; hence the most important issue for the cluster was to establish a strategic position which again is similar to a wanted reputation or brand. The same questions, whether a brand process or a communication process must be asked; Who are we. What do we offer, Who do we want to be something for? Thus, Gullers Grupp (2008), in their report, says that brand discussions were a central part of the cluster communication training that they carried out. In other words, there is good support for the idea that in this context and report, it is fruitful to include both strategic communication and branding without making to much effort in making a difference. On the other hand, we have spoken to cluster facilitators that focus very much on strategic communication, but not branding. The main reason is that the companies within the cluster have an opinion that these terms are very different, and that they endorse communication as a tool to get customers, new employees etc, however would not like to see cluster efforts that could compete with their own company brands. This is a topic we will go more in depth on later in this paper. In fact, this issue is one of the major dilemmas within cluster branding. Clusters and cluster initiatives are two other terms that need to be defined in this context. Porter (1998) defines a cluster as

4 Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate. Cluster Initiatives, on the other hand, can be defined as organised efforts to increase the growth and competitiveness of clusters within a region, involving cluster firms, government and/or the research community. (Sölvell et al. 2003). In this paper, clusters and clusters initiatives (CI s) are used more or less similar. Our experiences are mostly from the national cluster programmes in Norway and Sweden, and thus- seen from the governmental side we talk about cluster initiatives. On the other hand, the cluster initiatives themselves use the term clusters. The reason might be simple; some are already well within a definition of a cluster although they are supported from an official body to get further. They are both a cluster and a CI. Others are stimulated by CI s to develop into full-scale clusters. But again, for practical purposes, this paper includes both terms. The cluster concept as a brand Before we dig further into why clusters see branding and communication as important, let s dwell a bit on the cluster-concept. The reason is that the term or word cluster in itself might have become a brand. Martin and Sunley (2001), says Again, just as branded products are ultimately image based so that consumers come to associate them with rewarding lifestyle experiences, the cluster brand at its core is based on an image of a high productivity, knowledge rich, decentralised, entrepreneurial and socially progressive economy within the reach of local policy-makers In other words, it does not only explain why clusters seem to be increasingly popular within Europe. The term is also a driving force itself. To initiate a cluster or to be categorized as one, will, if Martin and Sunley (2001) are correct, already be a step in the branding process. The use of the word valley, seems to be the ultimate sign that you strive for- or are- a cluster. Colyer (2006), writes the following in his article on brand channel, Figure: Silicon Valley, hardly a valley at all

5 and then there is Silicon Valley. Hardly a valley at all, really, yet most people know this is the home of the high-tech industry This metaphysical valley has worked wonders for the region around San Jose. And, further; Some people believe the impact of biotechnology will be on the same scale as that of computers, so it seems appropriate that biotech clusters should also choose to create valley communities In the same article, a German cluster manager responds The valley concept works. We are often asked where our valleys are. Our highest point here is about 200 meters. But thanks to Silicon Valley, people immediately realize that we are talking about a regional industrial cluster (Colyer, 2006) In Scandinavia, we see for example that Medicon Valley has used the valley term in their on branding. It does not only draw on the positive associations that people have to the Silicon Valley. It also draws on the valley term, which increasingly seems to be connected with the positive content of a cluster, described by Martin and Sunley (2001). In Norway, however, Oslo Cancer Cluster, which has a vision to transform world class cancer research into new cancer diagnostics and treatment and thereby improve the lives of cancer patients, has not chosen to include valley in their branding. In stead, they link their identity to the city of Oslo. Clusters as brands I have already touched upon this issue in the previous chapter. However, where we earlier focused on the cluster term, we here want to establish our position: Regional clusters can be brands. In Norway, most people would point to the city of Stavanger when talking about the oil industry. Stavanger is seen as the oil capital of Europe, and in a sense the region is one big industry cluster related to oil and gas. Further, in Norway, most people would agree that the furniture industry of Sunnmøre (a region within the county of Møre and Romsdal) is a brand as well. An article on Brand Channel could further endorse the idea that regional clusters could be brands We actively promote Medicon Valley, Larssen continues. It is not just a term we use, it is definitely a brand... and when companies from here are talking, and 2 Scandinavian clusters that have chosen different ways of branding strategy, despite beeing in the valley (biotech) industry

6 they are asked where are they from, some may say Denmark or Sweden, but I reckon most would now say Medicon Valley. It is probably better known than Denmark or Sweden in biotech circles. (Colyer, 2006). On the other hand, as Colyer (2006) points out in the same article; some are brands but do not actively promote the cluster as such Most of the best biotech clusters in the world, such as Boston and San Diego in the US, and Cambridge in the UK, do not have umbrella brands. They merely have a reputation and a long-standing heritage of excellence in biotech research and development Why clusters build brands objectives We have so far established a hypothesis that clusters and cluster initiatives could be brands. There is, however, one important question to ask: Why do cluster initiatives put much effort into brand building? Let s start with a statement from the Cluster Initiative Greenbook (Sølvell, Ø., Lindqvist G., Ketels, C., 2003): The objective most strongly related to disappointing CIs (Cluster initiatives) is brand building. CIs who fail to have this as an objective are more likely to fail. This agrees well with the earlier observation that brand building is an objective with a strong influence on both competitiveness and growth performance. In other words, and interpreted, cluster initiatives that focus on brand building are more likely to have success than those who do not. NCE Subsea, Norwegian Centres of Expertise Subsea, is a cluster established in order to contribute to the further development of one of the world s most complete subsea environments the subsea industry in the county of Hordaland (and city of Bergen). This cluster has gone through a brand strategy process, and has set the following objectives (Ronæss, 2007): Build internal pride Increase awareness of the companies within the cluster on the international market. Create both national and international awareness Strengthen recruitment Get new companies to the region Be a differentiator related to the competitors. The Swedish experiences, summarized in a report from Gullers Grupp (2008), underline much of the bullet points above. The main objective is to build attractiveness. Figure: Branding cluster, city and county

7 The project report states that the CI s saw a need to be seen in order to attract companies, competence and financing. The CI s had to tell the world who they were, what they stand for and therefore had to work with their brand to be recognized. However, the view above is very much related to the cluster initiative and especially the cluster administration. But, what about the individual company; what can it gain from an umbrella brand? The most common function for an umbrella brand (cluster brand) is to guarantee the quality of the individual brands (companies). The cluster brand can create added value to the existing brands. If the cluster is able to create attractive and unique Figure: NCE Subsea as an umbrella brand associations, these could be inherited by the companies. (Ronæss, 2007). There might be, however, a hypothesis that this is more valid for small companies than for big. This topic is treated more thoroughly later in this paper. Attracting skilled people is another area to mention. The perhaps most important factor for cluster brand focus for the past couple of years has been the need to attract skilled people. Almost all industries have experienced the same, and for the clusters this has typically been high-priority task. Branding of the cluster has been the tool for success in this area. And, it probably works According to a survey from Gambit Hill & Knowlton, the most common answer when companies are asked what they can gain from having a good brand, they say; Ability to recruit and retain employees. Figure: Recruitment brochure from NCE Maritime In other words, clusters want to build a cluster brand of external- however also internal- matters. The brand, and the brand building, is the tool for attracting new business, capital and people- however also the tool for gluing the cluster together. This is very much in line with the statement from the Cluster Initiative Greenbook, referred to above. We will later in this paper investigate the process of making a brand strategy, but at this stage we should also mention one other important topic, and that is the more strategic consequence of brand building. To work out a strategic position, or a wanted brand, must of course have some implications. It is more than just a marketing tool.

8 It will or could have an impact on the actors within the cluster, both in terms on possible restraints on own branding and behaviour and on strategy. NCE Micro- and Nanotechnology could be mentioned as an example of the consequences of having a cluster brand. This cluster initiative is the result of a long-term commitment to micro- and nanotechnology in the region (county) of Vestfold. The companies in the cluster comprise the most important commercial arena for microsystems technology in Norway, and play a leading role in the Norwegian electronics and ICT fields. One of the cluster facilitators, Sissel Haugseth, says: The brand is our ground wall it is the fundament on which we shall build our business. It describes what we stand for, what we provide and the direction we want to pursue. Our brand foundation is a frame for everything we do in NCE Micro and Nanotechnology. All decisions we take should be checked against the brand. It is therefore important that all who work within our cluster bear the brand strategy in mind and know what it implies in daily work. (translation of a presentation held by Sissel Haugseth) Again, the Swedish experiences support the same view. The process of making a strategic communication plan, or a brand strategy, will imply that the existing business strategy and vision are challenged. The use of communication methodology contributed significantly to the sharpening of the clusters purpose, objectives and the structuring of the relations within the triple-helix. (Gullers Grupp, 2008). Perhaps is this one of the explanations of the correlation between success and brand building, stated in the Cluster Initiative Greenbook (Sølvell, et. Al., 2003). To communicate, you have to know what to communicate. And, to know the latter, you must actually go through similar steps as if you were making a business plan. So, in the end, business planning and communication planning has the same point of departure, and if that point is unclear, it is not very surprising that the cluster initiative fails. Challenges in cluster branding Based on experiences both in Norway and Sweden, we see that many of the same challenges are valid for most cluster initiatives. One is the relation between the cluster brands and the individual brands in the cluster. Another is the relation between the cluster initiative and the region (and the innovation system). A third one is the relation between internal and external communication. A fourth being how to actually go about to create a common, strategic position for so many stakeholders.

9 And, to complete the list; how should a cluster brand be administrated? Who owns it, and are there any sanctions if it is violated as there would be if talking about a company brand? These are some of the issues we will treat in the following chapter. Branded house vs. house of brands All cluster initiatives that start a branding process must discuss and reflect on the following; to what purposes do we use the cluster brand, and how could we create a brand architecture where individual brands and the cluster brand do Figure: Partner map of NCE Subsea not compete? This dilemma is often referred to as branded house versus house of brands. While the former focuses on the house (cluster), the latter focuses on the brands within the cluster. In the figure on this page, you will see the partner chart of the NCE Subsea cluster in Hordaland, Norway. It includes many individual company brands and also brands from the rest of the triple helix like the municipality of Bergen, the county administration and the regional college. Although this is a dilemma and something to discuss, it is necessarily not unsolvable. The small and medium-sized company point of view will be opportunistic; how could we add value to our own brand by using the cluster brand? However, what about a real big company within a cluster initiative? In Norway, a typical example will be the fact that StatoilHydro- a giant also internationally, will be part of several cluster initiatives. To what extent would this company be willing to be associated with the cluster brand, and by doing so, help the SME s in the cluster? Again, the most probable solution is to be opportunistic. On what occasions is it helpful for all, and on what occasions is it not ok In the Subsea case above, the practical solution is that the cluster brand could be used as a sub-brand and a pay-off to strengthen the company or organisation brand. Clusters versus region; What to focus on? This paper is about regional clusters. The region or another geographical unit- is a frame that the industrial cluster works within. Further, the Scandinavian cluster initiatives are based on the triple-helix model as well. This implies a close cooperation between the industry, research and education, and public authorities on regional level. The regional authorities on both municipality- and county level and the industry share common interests especially linked to the need for attracting skilled labour.

10 Many- if not most- Norwegian municipalities carry out branding processes as to attract new- and the right inhabitants. Since the industry cluster is dependent on being situated in a municipality or region that seems attractive not only to the professional, but to a whole family, one should think that a focus on branding a region or linking the industry to a region, would create a win-win situation. However, this is by far not the case. Among the 9 Norwegian Centres of Expertise, only 3 link their name to the region or municipality. The rest have chosen a name that says something about the market, technology or industry that the companies have in common. The same goes for the app. 20 cluster initiatives within the Arenaprogramme. (less mature clusters). Only 3 of them as well are linked to the region or another geographical unit. A reason for this can be that for many cluster initiatives, the main purpose of creating a brand has been to increase awareness of the companies within the cluster on the international market. Linking the cluster to a place in Norway that nobody has heard of, could confuse the message. Further, many of the clusters have companies that are owned abroad, with just a subsidiary in the cluster. For them, the location might not be the most important thing when creating an identity. In the figure above, we have shown two different approaches. The first, NCE Raufoss (Raufoss is a small town in Norway) consists of more than 40 companies with more than 3000 employees. The companies have an annual turnover of approximately NOK 4.5 billion. The export share is nearly 85 percent. The industry at Raufoss has existed for more than 100 years. With ammunition production as a basis, innovations have led to world class producers of components to the automotive and defence industries. Still, the identity is built upon the history of Raufoss. And, of course, not by coincidence. The industry at Raufoss has an over 100 year long tradition, and the cluster is now carrying the values and culture further. All the companies in the cluster are situated within the same fences at the industrial park. The cluster brand does not boost the internationalisation of the companies, however the brand is very effective in being the glue. The brand has first and foremost an internal purpose. The other example, on the other hand, is a cluster initiative within the same national programme (NCE), but with a focus on the industry in its logo. The cluster is situated in Northern Norway, mostly around the Bodø and Lofoten area. NCE Aquaculture focuses on value creation and innovation associated with commercial production of farmed fish and seafood for the global market. The cluster consists of companies involved in the production of fry and edible fish, processing, feed production, technology, health and environment, finance, research and training. As the name explains, their industry is fish farming. The companies are much more widespread

11 than the other CI. However, the main signal of the logo is of course that this cluster is the chosen one among several geographical concentrations of the Norwegian fish-farming industry. The industry is quite new as well, and do not carry any 100 years of tradition. A third case we would like to mention here is NCE Systems Engineering, Kongsberg. The core competence for the companies within the Kongsberg cluster is SYSTEMS ENGINEERING. Systems engineering is an interdisciplinary approach and aims to enable the successful realization of complex systems. It focuses on defining customer needs and required functionality early in the development cycle, documenting requirements, subsequently proceeding with design synthesis and system validation while considering the complete problem for the system s entire lifetime. This is a cluster that combines the technology focus and the relation to its region/municipality. The cluster has cooperated with the municipality in making a brand strategy, starting up with a comprehensive survey asking over 1000 of the inhabitants of the municipality. The main topic in the survey was to find out the qualities of today, and what has to be done to make the city/municipality even more attractive to live and work in. The results showed, amongst other things, that the people were proud of their industry. In fact, about 64% of the respondents knew that the high-tech industry in the city had achieved the NCE-status! And, about 87% said that the Kongsberg industry had a good reputation! (The survey was carried out by Godt Sagt, the communication agency used by the cluster) NCE Systems Engineering Kongsberg, has chosen to brand both the core competence and the regional identity. To summarize this chapter, we would like to pinpoint that the logo is not the brand. A cluster can brand itself as part of a geographical unit, although it is not visible in the logo. What we say, however, is that the relation must be discussed as to have a clear picture. When you communicate, you must be clear about the sender. Is it the cluster, the region or both? Internal vs. external communication Gullers Grupp (2008) states in the report from the work with the Swedish CI s that both internal communication and international attractiveness were parts of the communication plans, however that the internal focus was more emphasized.

12 As they say, the cluster initiatives had ambitions of being known outside Sweden, but the short term ambitions of communication with the most important regional stakeholders got the highest priority. The two different perspectives are also a valid discussion within the Norwegian cluster initiatives. Given limited resources; should you prioritize internal communication within the triple helix or should you emphasize brand building outside the region and even internationally? The most probable hypothesis would of course be that the less mature you are, the more you should focus on the internal communication. Cluster initiatives that are started will usually start from scratch. They are little known, they need to attract new companies as well as keeping the core companies warm. Even bigger clusters with several years of running operation, will as we experience it- still put very much weight on the internal communication. Main target groups in the communication plans will often be: - the companies within the cluster - the other players in the triple-helix (authorities, R and D ) - people living in the community (to create awareness and to secure long term recruitment) - regional politicians - students and new labour Several of the clusters within the Norwegian NCEprogramme do, however, also have concrete plans for external communication; in international markets. NCE Maritime is an interesting example. The maritime industry on the west coast of Norway is a world s leader in designing, building, supplying and operating the largest and most advanced vessels for the oil industry. The cluster is comprehensive and comprises companies specialised in ship design, equipment supply, ship building, ship owners, training, research and finance. The cluster comprises 170 businesses, has a turnover of approximately NOK 40 billion and directly employs about 18,000 workers in the region. Core competence in NCE Maritime. Foto: Ulstein Group NCE Maritime has decided to brand the cluster and industry on both regional- and national level. Further, they use the cluster brand in interaction with players within the international research and development environment. On the other hand, they put little effort on branding the cluster in the international market. This is still the domain of the companies. As the facilitator, Per Erik Dalen, says Until the NCEstatus/brand is widely known, we will not use the cluster brand actively in market relations.

13 The process of making a communication strategy or a brand strategy One thing is to agree that branding and communication is important. All cluster initiatives carry out activities in this field. However, not that many have the will and resources to go through a process to actually define a strategic position or a brand. There are several reasons for this; - The cluster initiative do not have the resources - It is to early in the life-cycle - The cluster initiative do not prioritize it as the partners do not want any interference with the individual company brands - There is a lack of competence on how to attack such a challenge As for the last bullet point; we have spoken to several communication agencies that have been hired by a cluster to either lead the brand strategy process and/or to carry out communication activities. One we spoke with said; We did not know where to begin. We did not even know what a cluster was. It took us a long time to understand the complexity of the task Others we have spoken to have asked some very relevant questions; Is cluster communication or branding a branch of is own? Can theory on company branding (and communication) be applied in clusters? We think the answers to the 2 last questions are No and Yes. The main reason for reflecting on this is the fact that clusters/cluster initiatives are difficult to grip. For many communicators, coming from outside, it is a challenge to understand what the cluster actually provide, who the members are and the boundaries, and what the benefits of the cluster really are. Cluster communication and branding is, if you dig into it, really not that special. If you are familiar with site branding/city branding/place branding, you will see more or less the same challenge and complexity. And, if you consider challenges in large corporations with many brands and units, you will understand that cluster branding can draw upon such experiences as well. Innovation Norway uses the following map/structure of phases, whether it is a company, cluster or a whole industry:

14 Mobilising To mobilise the actors within the cluster must be seen as the most important success factor whether to make a brand strategy or a communication plan. The cluster administration cannot do this alone. How the process will be, depends on the maturity and size of the cluster. In some cases, the most important task might be to analyze whether the companies and other actors support the brand idea at all, and secondly to check out the frames and boundaries for a brand or strategic position. NCE Subsea can be an example. The first step in their brand strategy was to do a pre study to map those issues. Is there a foundation within the cluster to go ahead with a brand strategy? The following areas were mapped: - Establish knowledge about the companies positioning in their markets - Map the companies ambitions related to a possible cluster brand - Map the attitudes towards a common cluster brand - Understand what role a cluster brand could play and what elements it could consist of. The mobilising phase gave as result, support to go further with a cluster brand.

15 Another way of mobilising can be to use an event to trigger the issue. This is more of a chock therapy. The Norwegian cluster Arena Beredskap/Arctic Protection used the large oil- and gas fair ONS in Stavanger as an event to mobilise the actors. Arena Beredskap is established on the following background: Increased activity within the oil and gas industry as well as massive naval transport along the Arctic coast of Norway require attention to environmental consideration and update methods in preparedness against acute pollution. Arctic Protection is the answer to this challenge. The cluster facilitator Kari Nystad- says, however Figure: cluster branding of Arctic Protection It is a real challenge to communicate on behalf of a group. In the process, things happen. It is important with a flexible work group. However, a process is not enough. The facilitator must put in the proposals Involving and analyzing When the cluster is mobilised, and/or there is a commitment to go ahead, the usual way of structuring the process is to establish a group of actors from the cluster. People from the companies must be participants. As Sissel Haugseth in NCE Microand Nanotechnology puts it: The most important issue was to involve the companies and other partners. 2 companies, a marketing director, a graphic designer, a person from Innovation Norway and 4 NCE s with different angles and views made the group. It was very important for us to be able to see the cluster from the outside, with the help of the companies. In addition, our experience is that most clusters establish a reference group as well. In small clusters, it could be all actors. In bigger clusters, it would be a representative group with the majority coming from the companies. Usually, most of the Norwegian clusters have used external competence/consultants. In some cases the whole process has been lead by an external consultant. In other cases the consultant has provided the work group with advices and surveys, but has not leaded the process.

16 When it comes to analyzing, the scope of the project decides. For clusters that prioritize both internal and external communication, both internal- and external surveys will be carried out. NCE Maritime can be used as an example of a cluster that has carried out an analysis in the international market. In 2008, the cluster carried out a big survey in 16 countries, covering 15 target groups, to find out their reputation (and the Norwegian maritime industry) in the most important countries. The survey was coordinated by Burson-Marsteller, who again used the network of Innovation Norway s offices abroad to collect data in the selected countries. The goals of the survey were to: Source Burson-Marsteller: NCE Maritime reputation. Red: Wanted. White: Status - Get feedback on the reputation abroad, why the cluster has this reputation and what the cluster should do to improve. - Get an overview of the image/position the cluster had in different target groups. - Find out the target groups knowledge and experience on several key variables. - And, based on these answers, establish a foundation for the cluster to go further. But, as stated earlier, the analysis will first and foremost be used by the cluster to give input to the positioning of the companies within the cluster, and not as a foundation for the whole cluster to go international. We will not present the results of the survey here. (except for the figure above). In this context, this case is interesting as it is an example of a cluster that carries out a survey on behalf of the whole industry.

17 Position and reputation strategy The result of the brand process will usually be finalised in a statements about: - Vision - Purpose - Strategic position - Core values - Wanted reputation/image - Qualities - Proof NCE Micro- and Nanotechnology has agreed to be used as an example of a cluster brand strategy:

18 Branding of clusters- where can it get you? How far the branding can get you, depends on what ambitions you have in your branding strategy. These ambitions are mapped in the mobilising- and analysis phase, and of course also by the maturity of the cluster initiative. Figure: What to achieve by branding. Source: Gambit Hill & Knowlton In the figure, (source Gambit Hill & Knowlton), the ambitions are showed by using a ladder with different steps. Step 1 indicates that the main ambition is that people say I have heard about it The second step implies that We know what they are doing In the third step, people in the target group know what is unique or special- they have more in-depth understanding than in the previous step. Step 4 indicates that the cluster is preferred. We are in the market, and will certainly speak with them For newly started cluster initiatives, step 1 and 2 can be ambitious enough. For more mature clusters, where the cluster brand is to be used for getting new customers to the cluster companies, step 4 is necessary. Statements in the project report from phase 1 (mobilize- analyze) in NCE Subsea (Ronæss, 2008) illustrates The branding must be done stepwise. First work on the inside then build knowledge to the name and then again attractivity

19 Strategic issues in communication We have in this paper used strategic communication and branding as they were similar. Our point of departure is that they could be. On the other hand, some clusters do not go through what they consider a brand strategy process, however through a process of planning their communication. More or less equal questions have to be asked, though. We have gone through some communication plans for clusters in Norway, and compared with the Swedish experiences (Gullers Grupp, 2008). What we see is that the same issues and questions are dealt with. Here are some of them: The connection to the cluster purpose and vision If the cluster has a strategic foundation, the communication strategy is derived from this foundation. If there is none, or if it is vague, the communication planning helps in sharpening the purpose, vision or business/cluster strategy. Target groups Who are the main target groups of the cluster? We have earlier in this paper given several examples of target groups; internal and external. Further, not only mention, however also prioritize. According to Gullers Grupp (2008), the Swedish Cluster initiatives prioritized target groups within the initiative and industry, academia and public sector in the region. Objectives What do we want to achieve with our communication in the target group? Is it awareness or preference? How do we make goals that support the overall purpose? Should the goals be quantitative? Who is the sender? We have previously in this report discussed this issue. Is it the cluster initiative, the companies, the cluster, the region and/or the innovation system? To be able to have a clear message, you have to know who is actually communicating it. What do we offer? Again, to have a message means that the cluster has a clear opinion of what it actually produces and offers the different target groups. What can companies gain by being part of the cluster? What can investors or professionals gain. And, what do we actually produce that the regional community will embrace?

20 References Written articles: Burson and Marsteller (2008). Seen from outside: The maritime cluster at Møre. Report from the global image survey. Colyer (2006). Biotech companies experiment with clusters. (article at BrandChannel.com) Martin and Sunley (2001). Deconstructing Clusters: Chaotic Concept or Policy Panacea? Godt Sagt reklamebyrå (2007). Kongsbergundersøkelsen. Gullers Grupp (2008). Process support on communication. In Vinnovas Vinnväxt programme. Nordviken Management (2008) Report to Innovation Norway. Clusters and internationalisation. Porter, Michael E. (1998). On competition. Ronæss, O (2007). Report from phase 1 of the branding process of NCE Subsea. Sølvell, Ø., Lindqvist G., Ketels, C., The Cluster Initiative Greenbook. Cases and presentations: Arena Beredskap/Arctic Protection NCE Aquaculture NCE Maritime NCE Micro- and Nanotechnology NCE Raufoss NCE Subsea NCE Systems Engineering, Kongsberg Oslo Cancer Cluster (NCE)