Branding Penang


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Hammad Kazi | Munib Farid | Amir Touseef | Eduardo Oliveira
Graduate School of Business | University Sains Malaysia

Territories, such as countries, regions and cities, compete with other geographical areas in order to attract investments, markets, businesses, residents, tourists, talents and entrepreneurs, as well as the hosting of cultural and sporting events.
This process is intensified with the growth of internationalization and globalization. These territories need to identify the opportunities and strengths to achieve competitive advantages for efficient access to markets, resources and people. A clear definition of place branding, developed in a consistent, cooperative way with stakeholders and as a product of a cooperative network between local, regional and national stakeholders, can promote the production base, increasing the touristic and human resource flows. Investors, citizens of different nationalities, students and researchers take part of this flow. Place branding is a new trend in marketing and territorial or destination marketing research. Place branding is a powerful tool available to academics and professionals who dedicate their research to promoting geographical units in place management. Place branding is an important concept in today’s competitive world when nations are competing for tourists, consumers, donors, immigrants, the media and governments of other countries.
The main goal of this paper is to understand how the Malaysia State of Penang should coordinate the marketing plans and manage the own brand to generate competitiveness within an increasingly international competition.

Key-words: Marketing; Destination Marketing; Branding; Place branding; Tourism; Penang.

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Branding Penang

  1. 7. WELCOME TO PENANG: REBRANDING AND MARKETING THE PEARL OF THE ORIENT <ul><li>Amir Touseef </li></ul><ul><li>Eduardo Oliveira </li></ul><ul><li>Hammad Abid Kazi </li></ul><ul><li>Munib Farid </li></ul>
  2. 8. Place branding concept <ul><li>“ A place brand strategy is a plan for defining the most realistic , most competitive and most compelling strategic vision for the country, region or city”; </li></ul><ul><ul><ul><ul><ul><li>Simon Anholt, 2005 </li></ul></ul></ul></ul></ul>
  3. 9. Place branding concept II: Marketing Brands Networks Residents Tourists Visitors Strategic vision Foreign investment Communication Places
  4. 10. : Simon Anholt, 2005 How to brand places? Strategy Planning Multisector
  5. 11. : Google imagens Place branding: Examples
  6. 12. Tourism & life style : : : Google imagens Place branding -> Examples:
  7. 13. Place branding examples: The Edinburgh City Region Brand is a public private partnership . Edinburgh as a world influencer in science, education, the arts and business, whose stunning physical beauty and magical atmosphere always inspires . Main goals: Enhance the reputation and notoriety among the visitors, investors, looking to the region to live, work and study. Brand of the city -> Inspiring Capital
  8. 14. Internationalization Enterprise Ireland Enterprise Ireland is the government agency responsible for the development and promotion of the indigenous business sector . Mission is to accelerate the development of world-class Irish companies to achieve strong positions in global markets resulting in increased national and regional prosperity. Place branding examples: Export Inovation Competitiveness Globalization
  9. 15. : Google imagens Place branding -> Applications:
  10. 16. : European Capital of Culture Place branding -> Applications: Special events Maribor -> Slovenia Guimarães -> Portugal 2012
  11. 17. 15 th Century
  12. 18. <ul><li>I 16 th century, adventurer and wanderer Captain James Lancaster arrives </li></ul><ul><li>Pulu Pinang – (Betelnut Island) </li></ul>
  13. 19. <ul><li>Then arrive the colonists from Sumatra in 17 th century </li></ul>
  14. 20. <ul><li>Sultan of Kedah signed over Island to East India Company in exchange for military assistance against Siam </li></ul>
  15. 21. <ul><li>Captain Francis Light of East India Company took charge of Penang in 1861. He renamed the island to “Prince of Wales Island” </li></ul>
  16. 22. <ul><li>Rumor has it that he fired silver coins from his cannons to the island jungle to accelerate settlement </li></ul>
  17. 23. <ul><li>The area was called Georgetown after the name of Prince of Wales who had become King George by then </li></ul><ul><li>By that time adjacent mainland was also negotiated from the Sultan of Kedah, and whole area was called Province Wellesley </li></ul>
  18. 24. <ul><li>Light permitted new arrivals to claim as much as they could clear, and this together with a duty-free port and an atmosphere of liberal tolerance, quickly attracted settlers from all over Asia </li></ul>
  19. 25. <ul><li>Most of the initial settlers planted spice plantations. This resulted in a slow development of economy of the island since these crops are slow to grow and require high initial resources. </li></ul><ul><li>Later they switched to coconut and sugar </li></ul>
  20. 26. <ul><li>In 1805, Penang was given the status of a presidency government, which was equivalent to cities of Madras and Bombay in India, and so gained a much more refined administrative structure </li></ul><ul><li>Penang briefly became the capital of Straits Settlements in 1826 (including Melaka and Singapore) until it was outmoded by the more thriving Singapore </li></ul>
  21. 27. <ul><li>By the middle of 19 th century, Penang had become a major player in Chinese opium trade, which provided more than half of colony’s revenue </li></ul>
  22. 28. <ul><li>In 1867, the increasing violence came to a head when large-scale rioting broke out between two rival Chinese secret societies, which had each allied themselves with similar Malay groups </li></ul><ul><li>Once the fighting had been brought under control, the British authorities fined each group the than huge sum of $10,000, the proceeds going to establish a permanent police force in the colony. </li></ul>
  23. 29. <ul><li>A royal charter awarded city status to Georgetown in January 1957, just seven months before Malaysian Independence, and in 1960, Penang became a free-port. </li></ul><ul><li>The island enjoyed a rapid economic growth in the following decades, but lost its duty-free status to Langkwai in 1980s </li></ul>
  25. 32. <ul><li>“ All of our decisions, whether they are as trivial as buying an everyday product or as important as relocating a company, are partly rational and partly emotional. No human activity is exempt from this rule.” </li></ul><ul><li>-Simon Anholt </li></ul>
  26. 33. How important is Tourism? <ul><li>880 Million tourist arrivals in 2009 </li></ul><ul><li>Malaysia ranks 9 th , with 23.6 million arrivals </li></ul><ul><li>In 2008, international tourism reciepts were USD 1.1 TRILLION! </li></ul><ul><li>KL 4 th most visited city in 2009! </li></ul>
  27. 34. Branding Cities <ul><li>Build an association through experience </li></ul><ul><li>The emotional significance attracts people back – historical, geographical, aesthetic, etc </li></ul><ul><li>Milan Paris New York </li></ul>
  28. 35. SWOT Analysis <ul><li>Strengths </li></ul><ul><li>Historical background </li></ul><ul><li>Combination of cultures </li></ul><ul><li>FTZ / manufacturing hub </li></ul><ul><li>Natural beauty </li></ul><ul><li>Education </li></ul>
  29. 36. <ul><li>Weaknesses </li></ul><ul><li>Transport system </li></ul><ul><li>Pollution / effluent from manufacturing zone </li></ul><ul><li>Opportunities </li></ul><ul><li>Potential to be the perfect mix of modern city life with heritage and natural beauty </li></ul><ul><li>Threats </li></ul><ul><li>High population density </li></ul><ul><li>Compromise on FTZ activities </li></ul>
  30. 37. PEST Analysis <ul><li>Political </li></ul><ul><li>Malay and Chinese populations almost equal </li></ul><ul><li>State government vs Federal government </li></ul><ul><li>Economic </li></ul><ul><li>Manufacturing, tourism, banking </li></ul><ul><li>Social </li></ul><ul><li>Population </li></ul><ul><li>Proportion of Malay, Chinese, Indians </li></ul><ul><li>Technological </li></ul><ul><li>Silicon Island </li></ul>
  31. 38. Current Branding and Positioning
  32. 39. New York Historical / Cultural Heritage Modern Landmarks Natural Beauty / scenic locations Urban Life Penang London Kuala Lumpur
  33. 40. Tourism in Penang <ul><li>In 1970’s when focus was put on tourism </li></ul><ul><li>Second most important economic sector in Penang after manufacturing </li></ul><ul><li>Georgetown named a world heritage site by UNESCO in 2008 </li></ul>
  34. 41. Cultural Heritage <ul><li>Diverse Culture </li></ul><ul><li>Traditions </li></ul><ul><li>Architecture </li></ul><ul><li>Recommendations </li></ul><ul><ul><li>Invest in restoring old buildings </li></ul></ul><ul><ul><li>Ensure cleanliness </li></ul></ul><ul><ul><li>Don’t build high rises around the area </li></ul></ul>
  35. 42. Historical Heritage <ul><li>Great historical significance World War II etc. </li></ul><ul><li>Historical buildings </li></ul><ul><ul><li>Fort Cornwallis </li></ul></ul><ul><ul><li>City Hall </li></ul></ul><ul><li>Recommendations </li></ul><ul><ul><li>Maintenance of buildings </li></ul></ul><ul><ul><li>Development of museum </li></ul></ul>
  36. 43. Food <ul><li>Wide variety of foods </li></ul><ul><ul><li>Malay </li></ul></ul><ul><ul><li>Chinese </li></ul></ul><ul><ul><li>Indian </li></ul></ul><ul><li>Street food </li></ul><ul><li>Recommendations </li></ul><ul><ul><li>More focus on promoting street food as part of the culture and tradition </li></ul></ul>
  37. 44. Beaches <ul><li>Not as beautiful as in other parts of Malaysia but still attracts a lot of visitors </li></ul><ul><li>Batu Ferringhi </li></ul><ul><ul><li>Water sports facilities </li></ul></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Wide variety of food – from fine dining to street food </li></ul></ul><ul><ul><li>International hotels </li></ul></ul>
  38. 45. Nature walk and Penang Hill <ul><li>Beautiful trails for trekking </li></ul><ul><li>Penang hill </li></ul><ul><ul><li>Provides a picturesque birds eye view of the island </li></ul></ul><ul><ul><li>Historic funicular railway </li></ul></ul><ul><li>Recommendation </li></ul><ul><ul><li>Regular maintenance of the funicular railway so that the hill is accessible throughout the year </li></ul></ul>
  39. 46. Medical Tourism <ul><li>Projecting Penang as a regional medical tourism hub </li></ul><ul><li>Wide variety of choices </li></ul><ul><ul><li>Traditional therapies </li></ul></ul><ul><ul><li>Contemporary medicine </li></ul></ul>
  40. 47. Strategies for Re-branding
  41. 48. Primary Attraction Attributes Marketing Strategy Marketing Essentials Niche Markets Docking Station Sports Events MICE Exchange Education Cross-marketing
  42. 49. Thank you
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