HOW TO BRAND A DESTINATION

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This presentation looks at the new era of branding and how it affects destination branding. There is a case study of what Hong Kong did to brand itself and an overview of the key issues any destination must face when when seeking to brand.

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  • HOW TO BRAND A DESTINATION

    1. 1. HOW TO BRAND PENANG WHEN EVERYTHING IS DIFFERENT Essential issues of destination branding April 7, 2009 Nick Wreden, MA, MS
    2. 2. HOW TO BRAND PENANG <ul><li>OVERVIEW </li></ul><ul><ul><li>Branding’s new world </li></ul></ul><ul><ul><li>Hong Kong: Case study </li></ul></ul><ul><ul><li>Issues to think about </li></ul></ul><ul><ul><li>Next steps for Penang </li></ul></ul>
    3. 3. CAN YOU REMEMBER?
    4. 4. BRANDING TODAY?
    5. 5. BRANDING TODAY? <ul><li>“It's not what we don't know that hurts, it's what we know that ain't so.” </li></ul><ul><li>Will Rogers 1879-1935 </li></ul>
    6. 6. Marketing Dept. Mass economy branding (1920 - 95) “ Sell what we make ” Customer economy branding (1996 - 2010) “ Sell what customers want to buy” Personalised branding (2011-??) “Provide customer solution” Marketing dept. Organization Supply chain Sales Profits Relationship depth/strength Strategy: We define brand based on “position”, “ messages,” etc Customers define brands based on economic, emotional & experiential value Customers & firms co-create brands based on personalisation capabilities Advertising, PR, etc. + “positioning” + market research 1: AWARENESS Quality/service + processes + customer DB 2: ENGAGEMENT Personalization + immediacy + integration (SC) 3. CO-CREATION Brand strategy: Brand owner: Metrics: 1 2 3 FORMULAS FOR SUCCESS FOR EACH ERA Strategic focus: Competitors Customers Social networks Tactics: Creative-driven Data-driven Customer-driven
    7. 7. CASE STUDY: HONG KONG <ul><li>BACKGROUND: Tourism </li></ul><ul><ul><li>Asia‘s most popular tourist destination </li></ul></ul><ul><ul><li>Fierce regional competition </li></ul></ul><ul><ul><ul><li>1,000+ destination organizations </li></ul></ul></ul><ul><ul><li>Tourism = major economic pillar </li></ul></ul><ul><ul><li>Visitor arrivals in 2003: 15.5 million </li></ul></ul>
    8. 8. CASE STUDY: HONG KONG <ul><li>BACKGROUND: Branding HK </li></ul><ul><ul><li>Commission on Strategic Development in 2000 concluded: </li></ul></ul><ul><ul><ul><li>&quot;Hong Kong needs to promote its unique position as one of the most cosmopolitan & vibrant cities in Asia to a wide range of international audiences. A successful external promotion programme can have a significant positive impact on HK's ability to achieve a number of key economic, social & cultural objectives.&quot; </li></ul></ul></ul>
    9. 9. CASE STUDY: HONG KONG <ul><li>BACKGROUND: Branding HK </li></ul><ul><ul><li>Other international branding campaigns </li></ul></ul><ul><ul><ul><li>Most brand-building initiatives tourism-led </li></ul></ul></ul><ul><ul><ul><li>Successful campaigns were all multiyear, featured multimedia with consistent messages </li></ul></ul></ul><ul><ul><ul><li>Also under stringent quality control; well managed & coordinated </li></ul></ul></ul><ul><ul><li>Government commissioned team of firms to conduct research & develop strategy for Brand Hong Kong </li></ul></ul>
    10. 10. CASE STUDY: HONG KONG <ul><li>STRATEGY: Key messages </li></ul><ul><ul><li>Prime location </li></ul></ul><ul><ul><ul><li>Transport hub </li></ul></ul></ul><ul><ul><ul><li>Corporate hub </li></ul></ul></ul><ul><ul><ul><li>Huge pool of entrepreneurs, professionals with decades of experience in China </li></ul></ul></ul><ul><ul><li>Advanced infrastructure </li></ul></ul><ul><ul><ul><li>New roads, railways to Mainland </li></ul></ul></ul><ul><ul><ul><li>New container terminal </li></ul></ul></ul><ul><ul><ul><li>Express air cargo terminal & logistics centre </li></ul></ul></ul><ul><ul><ul><li>AsiaWorld-Expo (70,000-s.m. exhibition ctr.) </li></ul></ul></ul>
    11. 11. CASE STUDY: HONG KONG <ul><li>STRATEGY: Key messages </li></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><ul><li>Convenient, compact, cosmopolitan city with stunning harbour, skyline & parkland vistas (over 40% of HK is park) </li></ul></ul></ul><ul><ul><ul><li>World-class sports (rugby, horse racing, golf, tennis, squash, sailing, table tennis, badminton) </li></ul></ul></ul><ul><ul><ul><li>World-class cultural performances, art exhibits, drama & arts festivals, street carnivals </li></ul></ul></ul><ul><ul><ul><li>Best restaurants & finest cuisine anywhere </li></ul></ul></ul><ul><ul><ul><li>Low crime rate with professional police force </li></ul></ul></ul>
    12. 12. CASE STUDY: HONG KONG <ul><li>STRATEGY: Other messages </li></ul><ul><ul><li>Politically stable </li></ul></ul><ul><ul><li>Well-educated and caring society </li></ul></ul><ul><ul><li>Low taxes </li></ul></ul><ul><ul><li>Technologically advanced </li></ul></ul><ul><ul><li>Low level of corruption </li></ul></ul><ul><ul><li>Equality of women </li></ul></ul><ul><ul><li>Accountable government </li></ul></ul>
    13. 13. CASE STUDY: HONG KONG <ul><li>STRATEGY: Development & execution </li></ul><ul><ul><li>Plan based on 5 key elements </li></ul></ul><ul><ul><ul><li>Build additional infrastructure </li></ul></ul></ul><ul><ul><ul><li>Improve existing facilities </li></ul></ul></ul><ul><ul><ul><li>Enhance service quality </li></ul></ul></ul><ul><ul><ul><li>Facilitate of visitor entry </li></ul></ul></ul><ul><ul><ul><li>Actively promote Hong Kong </li></ul></ul></ul><ul><ul><ul><ul><li>Business & tourism </li></ul></ul></ul></ul>
    14. 14. CASE STUDY: HONG KONG <ul><li>EXECUTION: Infrastructure </li></ul><ul><li>Goal: Medium- to long-range plans for 5 major tourism clusters to broaden range of tourist facilities </li></ul><ul><ul><li>Entertainment (Sunny Bay on Lantau Island) </li></ul></ul><ul><ul><ul><li>Hong Kong Disneyland </li></ul></ul></ul><ul><ul><ul><li>Tung Chung Cable Car </li></ul></ul></ul><ul><ul><ul><li>Giant Buddha </li></ul></ul></ul><ul><ul><li>Recreation (countryside/harbour at Sai Kung) </li></ul></ul><ul><ul><ul><li>Range of active recreational facilities (hiking, water sports) & world-class resorts </li></ul></ul></ul>
    15. 15. CASE STUDY: HONG KONG <ul><li>EXECUTION: Infrastructure </li></ul><ul><ul><li>Culture belt </li></ul></ul><ul><ul><ul><li>Stretch from new integrated arts, culture & entertainment area on W. Kowloon Reclamation to existing museums & performing arts venues in Tsim Sha Tsui </li></ul></ul></ul><ul><ul><li>Heritage, entertainment & dining area </li></ul></ul><ul><ul><ul><li>To be developed in heart of Central, from Central Police Station & covering attractions like Government House, St John‘s Cathedral, Hollywood Road & Lan Kwai Fong </li></ul></ul></ul>
    16. 16. CASE STUDY: HONG KONG <ul><li>EXECUTION: Infrastructure </li></ul><ul><ul><li>Eco-tourism </li></ul></ul><ul><ul><ul><li>Hong Kong Wetland Park project developed to showcase Hong Kong‘s ecological richness </li></ul></ul></ul><ul><ul><li>Cruise </li></ul></ul><ul><ul><ul><li>New cruise terminal in SE Kowloon </li></ul></ul></ul><ul><ul><li>Other </li></ul></ul><ul><ul><ul><li>“ To make HK more visitor-friendly, installation of new signage in all districts” </li></ul></ul></ul>
    17. 17. CASE STUDY: HONG KONG <ul><li>EXECUTION: Service </li></ul><ul><li>To promote quality service in retail & catering sectors, Hong Kong Tourism Board (HKTB) launched Quality Tourism Service (QTS) initiative </li></ul><ul><ul><li>3,700+ shops & restaurants now have QTS accreditation </li></ul></ul><ul><ul><li>Inbound travel agents regulated </li></ul></ul><ul><ul><li>Travel industry introduced training programmes for tour guides </li></ul></ul>
    18. 18. CASE STUDY: HONG KONG <ul><li>EXECUTION: Promotion </li></ul><ul><ul><li>International Chinese New Year Parade </li></ul></ul><ul><ul><li>Range of marketing activities worldwide to promote HK </li></ul></ul><ul><ul><ul><li>&quot;World city - My city&quot; essay & photo competition </li></ul></ul></ul><ul><ul><ul><li>Videos </li></ul></ul></ul><ul><ul><ul><li>“ Win a Trip” contests nationally & internationally </li></ul></ul></ul><ul><ul><li>Events (HK Rugby Sevens, ITU, Forbes CEO Conference, HK Products Expo, etc.) </li></ul></ul>
    19. 19. CASE STUDY: HONG KONG <ul><li>EXECUTION: Promotion </li></ul><ul><ul><li>Visual identity & tagline created (dragon incorporating letters HK & Chinese characters for HK) </li></ul></ul><ul><ul><li>Logo promotion & advertising </li></ul></ul><ul><ul><ul><li>Signage; ferries, helicopters, planes </li></ul></ul></ul><ul><ul><ul><li>All government Web sites </li></ul></ul></ul><ul><ul><ul><ul><li>11 Economic & Trade Offices overseas </li></ul></ul></ul></ul>
    20. 20. CASE STUDY: HONG KONG <ul><li>EXECUTION: InvestHK </li></ul><ul><ul><li>Government department that promotes advantages of HK to businesses; and assists overseas enterprises in growing business. Free services include: </li></ul></ul><ul><ul><ul><li>Information on HK business environment & investment, including economic sector profiles, business incorporation advice, business contacts & information on availability & cost of land, factories, offices, housing </li></ul></ul></ul><ul><ul><ul><li>Match potential investors w/ business partners </li></ul></ul></ul>
    21. 21. CASE STUDY: HONG KONG <ul><li>BRAND HONG KONG: Results </li></ul><ul><ul><li>Visitor arrivals in 2004 </li></ul></ul><ul><ul><ul><li>Total arrivals increased by 40.4% year-on-year to 21.8 million; highest in history </li></ul></ul></ul><ul><ul><ul><ul><li>12.2 million arrivals from Mainland China </li></ul></ul></ul></ul><ul><ul><ul><li>Hotel occupancy averaged 88% for 2004 </li></ul></ul></ul><ul><ul><li>Economy grew by 8.1% in 2004 </li></ul></ul><ul><ul><ul><li>Highest growth rate in 4 years </li></ul></ul></ul><ul><ul><ul><li>Above 20-year average of 4.8% </li></ul></ul></ul>
    22. 22. CASE STUDY: HONG KONG <ul><li>BRAND HONG KONG: Results </li></ul><ul><ul><li>144 foreign companies set up/expanded operations in Hong Kong in first six months of 2005, investing US$192.3 million </li></ul></ul><ul><ul><ul><li>13.4% increase from same period previous year </li></ul></ul></ul><ul><ul><ul><li>Immediate creation of 1,421 jobs, with plans to to create 3,072 more jobs in next 2 years </li></ul></ul></ul>
    23. 23. KEY ISSUES FOR PENANG OR
    24. 24. KEY ISSUES FOR PENANG or OR
    25. 25. KEY ISSUES FOR PENANG OR
    26. 26. KEY ISSUES FOR PENANG OR
    27. 27. KEY ISSUES FOR PENANG OR
    28. 28. KEY ISSUES FOR PENANG OR
    29. 29. KEY ISSUES FOR PENANG OR
    30. 30. KEY ISSUES FOR PENANG OR
    31. 31. KEY ISSUES FOR PENANG OR
    32. 32. KEY ISSUES FOR PENANG OR
    33. 33. KEY ISSUES FOR PENANG OR
    34. 34. KEY ISSUES FOR PENANG OR
    35. 35. KEY ISSUES FOR PENANG <ul><li>SUMMARY </li></ul><ul><ul><li>Ensure long-term commitment </li></ul></ul><ul><ul><li>Get continuous buy-in from ALL stakeholders </li></ul></ul><ul><ul><li>Research what you have & what is wanted </li></ul></ul><ul><ul><li>Focus on experiences, not places </li></ul></ul><ul><ul><li>Target segments for differentiation </li></ul></ul><ul><ul><li>Develop brand and other plans </li></ul></ul><ul><ul><li>Move toward digital/social/WOM marketing </li></ul></ul><ul><ul><li>Action, not discussion </li></ul></ul><ul><ul><li>Development measurement & accountability </li></ul></ul>
    36. 36. DOUBTS & QUESTIONS [email_address]

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