Hume Occasional Paper No. 57
ISBN 1-870482-48-5
This seminar benefited form a dual presentation form Hugh Morison of the Scotch Whisky Association and form Russell Griggs of 'Scotland the Brand'. Both of the papers are printed later in this volume.
Morison concentrated on explaining the vital role that marketing played in the modern market economy. Consumers require and, indeed, demand to be educated about products and services. In an environment of rapid change it is no longer appropriate to rely on past loyalties (as Marks and Spencer has recently discovered to its cost).
Perhaps understandably, Morison takes as an example of a successful product, Scotch whisky, which constitutes the UK's fifth largest manufactured output, and Scotland's leading output as measured by value added. Several key elements in the success of Scotch whisky are identified. These include a legally enforceable quality definition, an associated range of powerful images, the characteristic of being an environmentally friendly 'green' product, possessing variety leading to niche markets, and being produced by companies that have vigorously built up the product and met the challenge (and opportunities) of globalisation.
One key area where the Scottish Parliament could play a part in enhancing the success of this and other Scottish products lies in tackling discriminatory trade barriers and discriminatory tax regimes. Certain successful battles have been won in Korea and in Japan against the former, but much remains to be done. And in terms of taxation, even the European Union is seen as exacting discriminatory alcohol taxes. But these measures are, for the main part, related to the reserved powers of the Westminster Parliament.
It is in the area of trade promotion and image building that the Scottish Parliament is likely to be able to exert most beneficial influence of the marketing and selling of Scottish products. Trade missions under Scottish Trade International are seen as being hugely important. The work of Scottish Enterprise and the associated Local Enterprise Companies is also seen as vital in educating the small to medium enterprises that are likely to hold the key to Scotland's future prosperity.
Likewise, powers of the Scottish Parliament over local authority finance (the uniform business rate, etc.) and certain aspect of regulation are seen as key ways of maintaining and encouraging the competitiveness of Scottish enterprises. But in a settlement where most fiscal issues and trade considerations are reserved to Westminster, the most direct way the Scottish Parliament can improve Scotland's recognition and visibility abroad is through its own existence and conduct. A plea is made here for the Parliament to strive for an image of quality and modernity while not forgetting its history or traditions.
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