marketing strategy for tasmania

The Tasmanian ExperienceThe Tasmanian Experience

Presented by: Presented by:

Louise PerkinsLouise Perkins

Simon JochimSimon Jochim

Ali AbbasAli Abbas

Session OverviewSession Overview

�� Case Background Case Background –– LouiseLouise

�� Major Case Issue Major Case Issue –– SimonSimon

�� Situation Analysis Situation Analysis –– Ali, Louise, SimonAli, Louise, Simon�� Situation Analysis Situation Analysis –– Ali, Louise, SimonAli, Louise, Simon

�� Alternative Strategies Alternative Strategies –– AliAli

�� Recommendation Recommendation –– SimonSimon

�� Implementation Plan Implementation Plan –– SimonSimon

�� Conclusion Conclusion –– LouiseLouise

Case BackgroundCase Background

�� Situation based on 1994Situation based on 1994

�� Marketing a tourism destination Marketing a tourism destination

�� Discover TasmaniaDiscover Tasmania

The Tasmanian Experience

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�� Discover TasmaniaDiscover Tasmania

�� Tourism will be a main area of growth in the Tourism will be a main area of growth in the next decade for Tasmanianext decade for Tasmania

�� Concerns that tourism will damage the Concerns that tourism will damage the environmentenvironment

Case Background cont . . .Case Background cont . . .

�� Visitors: 86% domestic, 14% internationalVisitors: 86% domestic, 14% international

�� Market segmented by Market segmented by Roy Morgan Research Roy Morgan Research Centre Centre


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Centre Centre

�� Current target markets: Current target markets:

Socially AwareSocially Aware

Visible AchieversVisible Achievers

Traditional Family LifeTraditional Family Life

Case Background cont . . .Case Background cont . . .

�� Other groups offer potential if targetedOther groups offer potential if targeted

�� Advertising awareness: Advertising awareness: 12%12%


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�� Advertising awareness: Advertising awareness: 12%12%

�� Preferred holiday destination: 23%Preferred holiday destination: 23%

�� ‘intention’ for holiday: ‘intention’ for holiday: 3%3%

Nature of the ServiceNature of the Service

�� Consumer service Consumer service

�� Dichotomy between marketing and service Dichotomy between marketing and service deliverydelivery

�� HighHigh--contact AND lowcontact AND low--contact service contact service


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�� HighHigh--contact AND lowcontact AND low--contact service contact service

�� Wide fluctuations in demand and peak Wide fluctuations in demand and peak demand regularly exceeds capacitydemand regularly exceeds capacity

�� Highly intangibleHighly intangible

�� High in experience qualityHigh in experience quality

�� Difficult to evaluate Difficult to evaluate

Major Case IssueMajor Case Issue

How does Tasmania How does Tasmania find a way to find a way to

maximize its profit maximize its profit


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maximize its profit maximize its profit from tourism without from tourism without impacting adversely impacting adversely

on the environment ?on the environment ?

JustificationJustification of Case Issueof Case Issue

�� Tourism brings growth Tourism brings growth & profit to Tasmania& profit to Tasmania


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�� However, environment However, environment will be damaged if will be damaged if tourist numbers are too tourist numbers are too largelarge

OverviewOverview ofof situation situation

analysisanalysis

�� Internal analysisInternal analysis

-- strengthsstrengths

-- weaknessesweaknesses

-- service marketing mixservice marketing mix


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-- service marketing mixservice marketing mix

-- market analysismarket analysis

�� External AnalysisExternal Analysis

-- opportunitiesopportunities

-- threatsthreats

-- competitor analysiscompetitor analysis

�� Summarising the analysisSummarising the analysis

StrengthsStrengths

�� Physical resourcesPhysical resources

-- Clean, natural and diverse Clean, natural and diverse environment (high)environment (high)


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environment (high)environment (high)

-- Fresh produce and gourmet food Fresh produce and gourmet food (high)(high)

-- Attractive island lifestyle (high)Attractive island lifestyle (high)

-- Colonial history and heritage Colonial history and heritage (high(high))

StrengthsStrengths cont . . .cont . . .

�� Physical resourcesPhysical resources-- Offers something different to Offers something different to

visitors from warmer, visitors from warmer, tropical climates (high)tropical climates (high)


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tropical climates (high)tropical climates (high)

-- ‘off the beaten track’ ‘off the beaten track’ experiences (high)experiences (high)

-- summer summer && winter attractions winter attractions (medium)(medium)

WeaknessesWeaknesses

�� PositioningPositioning-- No strong marketing theme (high)No strong marketing theme (high)

�� no strong position in tourists’ minds (not a ‘must see’)no strong position in tourists’ minds (not a ‘must see’)

�� low awarenesslow awareness


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�� low awarenesslow awareness

�� Physical resourcesPhysical resources-- Cost & inconvenience of access is high (high)Cost & inconvenience of access is high (high)

-- Not many activities for children (medium)Not many activities for children (medium)

Service Marketing MixService Marketing Mix


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AdvertisingAdvertising�� ProductProduct--price advert. price advert. �� destinational advert.destinational advert.

�� CoCo--operative advertising in Australian pressoperative advertising in Australian press

�� TV features (TV features (Getaway, Great OutdoorsGetaway, Great Outdoors))

�� Common thread: Department’s logo and slogan Common thread: Department’s logo and slogan


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�� Common thread: Department’s logo and slogan Common thread: Department’s logo and slogan

‘Australia’s Best Holiday’ ‘Australia’s Best Holiday’

�� Success: Converted preferences to actual behaviourSuccess: Converted preferences to actual behaviour

Product ‘pull’ Product ‘pull’

�� But:But: -- Not desired ‘must see’ Not desired ‘must see’ –– image perceptionimage perception

-- Special promotions risk to devalue imageSpecial promotions risk to devalue image

PublicityPublicity

�� Yearly coYearly co--operative familiarisation operative familiarisation tour programtour program

�� Valuable support from independent Valuable support from independent sourcessources


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sourcessources

�� reviews in: national & reviews in: national & international mediasinternational medias

�� maintain profile in media, maintain profile in media, visitors and intermediariesvisitors and intermediaries

�� Beneficially augmentedBeneficially augmented

Market AnalysisMarket Analysis


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Market AnalysisMarket Analysis

Market segments:Market segments:

Visible Achievers 30%Others 32%


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Socially Aware 20% Traditional Family

Life 18%

DomesticDomestic MarketMarket AnalysisAnalysis

NSW 25%QLD 10%

SA

8%

WA 5%


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Victoria 45%

Others 7%

InternationalInternational MarketMarket AnalysisAnalysis

Europe

22%North America

26%


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22%26%

UK 20%Asia 5%

N.Z

12%Others 15%

Market analysis cont . . .Market analysis cont . . .

�� Visitors Characteristics:Visitors Characteristics:

-- Average Average –– stay: stay: 9.5 nights9.5 nights

-- Domestic & international visitors: 11 nightsDomestic & international visitors: 11 nights


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-- JapanJapan & Victoria:& Victoria: 66--7 nights7 nights

-- UK, EU, West Australia:UK, EU, West Australia: 14 nights14 nights

-- Average Average –– expenditure:expenditure: $1.000$1.000

-- International visitors:International visitors: $ 950$ 950

-- Japanese & Victorians:Japanese & Victorians: $ 800$ 800

-- UK, EU, West Australia:UK, EU, West Australia: $ 1.400$ 1.400

Market analysis cont . . .Market analysis cont . . .

�� Growth Rates:Growth Rates:-- Interstate visitors growth 4.5% vs. national 1.7%Interstate visitors growth 4.5% vs. national 1.7%

-- Growth for UK, EU and USA: Growth for UK, EU and USA: 8%8%

-- Highest growth in international visitors: 10%Highest growth in international visitors: 10%


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-- Highest growth in international visitors: 10%Highest growth in international visitors: 10%

-- Rapid growth for Asian tourists: 17%Rapid growth for Asian tourists: 17%

-- EspeciallyEspecially: charter passenger traffic from Singapore: charter passenger traffic from Singapore

-- 2005: 40% international visitor2005: 40% international visitor

�� Current market segments contradictory to Australia’s Current market segments contradictory to Australia’s

population population

Potential MarketsPotential Markets

Fishing, wildlife & Fishing, wildlife & bushwalking groupsbushwalking groups

�� Families, couplesFamilies, couples


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�� Families, couplesFamilies, couples

�� Likes: National parks, animals, Likes: National parks, animals, adventure, outdoors activitiesadventure, outdoors activities

�� Active in groups or aloneActive in groups or alone

�� Growing interest from USA & EUGrowing interest from USA & EU

Potential Markets cont . . .Potential Markets cont . . .

‘Gourmet traveler’‘Gourmet traveler’

�� Popular trend in EUPopular trend in EU

�� Young professionals, Young professionals,


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�� Young professionals, Young professionals,

HighHigh--potentialspotentials

�� Likes: gourmet food/wine, Likes: gourmet food/wine, luxury accommodation, an luxury accommodation, an experience that is ‘off the experience that is ‘off the beaten track’beaten track’

Potential Markets cont . . .Potential Markets cont . . .

Today’s BackpackersToday’s Backpackers

�� Typical students & young workersTypical students & young workers

�� Cashed up & hungry for a wild timeCashed up & hungry for a wild time


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�� Cashed up & hungry for a wild timeCashed up & hungry for a wild time

�� AverageAverage--stay: stay: 12 months12 months

�� AverageAverage--expenditure: $5300expenditure: $5300

�� Save on accommodation to experience tripsSave on accommodation to experience trips

�� Use tourism threats as chanceUse tourism threats as chance

OpportunitiesOpportunities

�� Market forecastsMarket forecasts-- Growth in tourism, specially international visitors (high)Growth in tourism, specially international visitors (high)

�� SocioSocio--cultural factorscultural factors-- Growing interest from bushwalking, wildlife and fishing groups Growing interest from bushwalking, wildlife and fishing groups


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-- Growing interest from bushwalking, wildlife and fishing groups Growing interest from bushwalking, wildlife and fishing groups (high) (high)

-- Increase use of internet (high)Increase use of internet (high)

�� Perception in marketPerception in market-- Tasmania’s image inextricably linked to its media presence Tasmania’s image inextricably linked to its media presence

(high)(high)-- Considered as good value for money (medium)Considered as good value for money (medium)-- Visitors highly motivated to return to Tasmania (medium)Visitors highly motivated to return to Tasmania (medium)

Threats:Threats:

�� Potential environmental damage Potential environmental damage (high)(high)

�� ‘Catch 22’ situation (high)‘Catch 22’ situation (high) !


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�� Regulatory factors:Regulatory factors:

-- Television ads receives less funding Television ads receives less funding than other states (medium)than other states (medium)

�� Tourism threats (diseases, war, Tourism threats (diseases, war, terrorism, economic downturn) (high)terrorism, economic downturn) (high)

!

Competitor AnalysisCompetitor Analysis

�� Indirect:Indirect: Spend money in a different waySpend money in a different way

�� Direct:Direct: Spend money anywhere elseSpend money anywhere else

-- global: other destinations global: other destinations


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-- global: other destinations global: other destinations

-- region: region: -- mainlandmainland

-- New ZealandNew Zealand

Group activity !Group activity !


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Group activity !Group activity !

Summary of situation analysisSummary of situation analysis

�� Major strengthMajor strength-- Tasmania’s environmentTasmania’s environment

�� Major weaknessMajor weakness


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�� Major weaknessMajor weakness-- No strong marketing themeNo strong marketing theme

�� OpportunityOpportunity-- Growth among international tourists Growth among international tourists

�� ThreatsThreats-- Competition and environmental damageCompetition and environmental damage

5 minutes break5 minutes break


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5 minutes break5 minutes break

Major Case IssueMajor Case Issue

How does Tasmania How does Tasmania find a way to find a way to

maximize its profit maximize its profit


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maximize its profit maximize its profit from tourism without from tourism without impacting adversely impacting adversely

on the environment ?on the environment ?

Alternative strategiesAlternative strategies

��Do nothingDo nothing

��Use communications to establish a Use communications to establish a global brand for Tasmaniaglobal brand for Tasmania


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global brand for Tasmaniaglobal brand for Tasmania

��Manage supply and demandManage supply and demand

Evaluation criteriaEvaluation criteria

�� Image and reputationImage and reputation

�� Market shareMarket share

EnvironmentEnvironment


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�� EnvironmentEnvironment

�� RevenuesRevenues

�� CostCost

Recommended strategyRecommended strategy

Use Communications to Use Communications to Establish a Global Establish a Global


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Establish a Global Establish a Global Brand for TasmaniaBrand for Tasmania

Marketing Communications MixMarketing Communications Mix

Customer Customer ServiceService

AdvertisingAdvertisingPersonal Personal SellingSelling

SalesSalesPromotionPromotion

PR & PR & PublicityPublicity

Corporate Corporate CommunicationsCommunications

WOMWOM The ServicescopeThe Servicescope


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DirectDirect

��MailMail

��TelecommuniTelecommunicationscations

��Fax/emailFax/email

CinemaCinema

Outdoor & Outdoor & RetailRetail

��Billboard, Billboard, postersposters

��Electronic Electronic displaysdisplays

��Transit displaysTransit displays

PrintPrint

��NewspaperNewspaper

��MagazinesMagazines

BroadcastBroadcast

��TVTV

��RadioRadio

��InternetInternet

Recommended StrategyRecommended Strategy

��Use communications to establish a global Use communications to establish a global brand for Tasmaniabrand for Tasmania

-- Destinational advertising (new logo and Destinational advertising (new logo and


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-- Destinational advertising (new logo and Destinational advertising (new logo and slogan)slogan)

-- Target most valuable segments with special Target most valuable segments with special promotions (Tastepromotions (Taste--/Value/Value--/Adventure/Adventure--holiday)holiday)

-- Develop multilingual homepage and databaseDevelop multilingual homepage and database

Justification of Justification of recommended strategyrecommended strategy

�� This wellThis well--planned communication strategy planned communication strategy will attract more visitors by tailoring will attract more visitors by tailoring Tasmania’s offers to their needsTasmania’s offers to their needs


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Tasmania’s offers to their needsTasmania’s offers to their needs

�� Its success is assured by the growth rates of Its success is assured by the growth rates of international visitorsinternational visitors

�� This global approach will ensure a This global approach will ensure a competitive edge for Tasmaniacompetitive edge for Tasmania

ConclusionConclusion

�� How does Tasmania find a way to How does Tasmania find a way to maximize its profit from tourism without maximize its profit from tourism without impacting adversely on the environment ?impacting adversely on the environment ?


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impacting adversely on the environment ?impacting adversely on the environment ?

�� This strategy will ensure profits and longThis strategy will ensure profits and long--term term growth for Tasmaniagrowth for Tasmania

�� AND protect Tasmania’s environment by using AND protect Tasmania’s environment by using promotions to manage demandpromotions to manage demand

Questions ?Questions ?

??


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Questions ?Questions ?

?

SourcesSources

�� Case 12: Dynamics of marketing a Case 12: Dynamics of marketing a tourism destination: The Tasmanian tourism destination: The Tasmanian experience, p. 513 experience, p. 513 –– 516.516.


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experience, p. 513 experience, p. 513 –– 516.516.

�� Theory: Module 6 and Module 12Theory: Module 6 and Module 12

�� Textbook: Lovelock et. al., Chapter 11Textbook: Lovelock et. al., Chapter 11

�� The Weekend Australian Magazine,The Weekend Australian Magazine,

October 25, 2003, pp. 12October 25, 2003, pp. 12--16.16.

Thanks for your Thanks for your


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Thanks for your Thanks for your participation and time!participation and time!

Good luck for the exam ! Good luck for the exam !


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Good luck for the exam ! Good luck for the exam !

You’ll need it ! ! !You’ll need it ! ! !

Now it’s your turn, Now it’s your turn,


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Now it’s your turn, Now it’s your turn, Jason . . .Jason . . .

marketing strategy for tasmania

Business

tasmania tourism

case background situation

tourism destination

tasmania concerns

main area of growth