HOW TO BRAND A DESTINATION

HOW TO BRAND PENANG WHEN EVERYTHING IS DIFFERENT Essential issues of destination branding April 7, 2009 Nick Wreden, MA, MS

HOW TO BRAND PENANG

OVERVIEW

Branding’s new world

Hong Kong: Case study

Issues to think about

Next steps for Penang

CAN YOU REMEMBER?

BRANDING TODAY?

“It's not what we don't know that hurts, it's what we know that ain't so.”

Will Rogers 1879-1935

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

CASE STUDY: HONG KONG

BACKGROUND: Tourism

Asia‘s most popular tourist destination

Fierce regional competition

1,000+ destination organizations

Tourism = major economic pillar

Visitor arrivals in 2003: 15.5 million

BACKGROUND: Branding HK

Commission on Strategic Development in 2000 concluded:

"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."

BACKGROUND: Branding HK

Other international branding campaigns

Most brand-building initiatives tourism-led

Successful campaigns were all multiyear, featured multimedia with consistent messages

Also under stringent quality control; well managed & coordinated

Government commissioned team of firms to conduct research & develop strategy for Brand Hong Kong

STRATEGY: Key messages

Prime location

Transport hub

Corporate hub

Huge pool of entrepreneurs, professionals with decades of experience in China

Advanced infrastructure

New roads, railways to Mainland

New container terminal

Express air cargo terminal & logistics centre

AsiaWorld-Expo (70,000-s.m. exhibition ctr.)

STRATEGY: Key messages

Lifestyle

Convenient, compact, cosmopolitan city with stunning harbour, skyline & parkland vistas (over 40% of HK is park)

World-class sports (rugby, horse racing, golf, tennis, squash, sailing, table tennis, badminton)

World-class cultural performances, art exhibits, drama & arts festivals, street carnivals

Best restaurants & finest cuisine anywhere

Low crime rate with professional police force

STRATEGY: Other messages

Politically stable

Well-educated and caring society

Low taxes

Technologically advanced

Low level of corruption

Equality of women

Accountable government

STRATEGY: Development & execution

Plan based on 5 key elements

Build additional infrastructure

Improve existing facilities

Enhance service quality

Facilitate of visitor entry

Actively promote Hong Kong

Business & tourism

EXECUTION: Infrastructure

Goal: Medium- to long-range plans for 5 major tourism clusters to broaden range of tourist facilities

Entertainment (Sunny Bay on Lantau Island)

Hong Kong Disneyland

Tung Chung Cable Car

Giant Buddha

Recreation (countryside/harbour at Sai Kung)

Range of active recreational facilities (hiking, water sports) & world-class resorts

Culture belt

Stretch from new integrated arts, culture & entertainment area on W. Kowloon Reclamation to existing museums & performing arts venues in Tsim Sha Tsui

Heritage, entertainment & dining area

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

Eco-tourism

Hong Kong Wetland Park project developed to showcase Hong Kong‘s ecological richness

Cruise

New cruise terminal in SE Kowloon

Other

“ To make HK more visitor-friendly, installation of new signage in all districts”

EXECUTION: Service

To promote quality service in retail & catering sectors, Hong Kong Tourism Board (HKTB) launched Quality Tourism Service (QTS) initiative

3,700+ shops & restaurants now have QTS accreditation

Inbound travel agents regulated

Travel industry introduced training programmes for tour guides

EXECUTION: Promotion

International Chinese New Year Parade

Range of marketing activities worldwide to promote HK

"World city - My city" essay & photo competition

Videos

“ Win a Trip” contests nationally & internationally

Events (HK Rugby Sevens, ITU, Forbes CEO Conference, HK Products Expo, etc.)

EXECUTION: Promotion

Visual identity & tagline created (dragon incorporating letters HK & Chinese characters for HK)

Logo promotion & advertising

Signage; ferries, helicopters, planes

All government Web sites

11 Economic & Trade Offices overseas

EXECUTION: InvestHK

Government department that promotes advantages of HK to businesses; and assists overseas enterprises in growing business. Free services include:

Information on HK business environment & investment, including economic sector profiles, business incorporation advice, business contacts & information on availability & cost of land, factories, offices, housing