This document discusses branding strategies and provides a case study of how Hong Kong successfully branded itself as a tourist destination. Hong Kong developed a clear branding strategy focused on key messages about its infrastructure, lifestyle, and political stability. It executed this strategy through investments in new attractions, improving existing facilities and services, and promoting Hong Kong internationally through various marketing campaigns. As a result, Hong Kong saw large increases in tourism and economic growth. The document suggests Penang can learn from this case study in developing its own branding strategy and execution plan.

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

2. HOW TO BRAND PENANG OVERVIEW Branding’s new world Hong Kong: Case study Issues to think about Next steps for Penang

3. CAN YOU REMEMBER?

4. BRANDING TODAY?

5. 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

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. 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

8. CASE STUDY: HONG KONG 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."

9. CASE STUDY: HONG KONG 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

10. CASE STUDY: 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.)

11. CASE STUDY: HONG KONG 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

12. CASE STUDY: HONG KONG STRATEGY: Other messages Politically stable Well-educated and caring society Low taxes Technologically advanced Low level of corruption Equality of women Accountable government

13. CASE STUDY: HONG KONG 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

14. CASE STUDY: HONG KONG 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

15. CASE STUDY: HONG KONG EXECUTION: Infrastructure 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

16. CASE STUDY: HONG KONG EXECUTION: Infrastructure 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”

17. CASE STUDY: HONG KONG 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

18. CASE STUDY: HONG KONG 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.)

19. CASE STUDY: HONG KONG 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

20. CASE STUDY: HONG KONG 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 Match potential investors w/ business partners

21. CASE STUDY: HONG KONG BRAND HONG KONG: Results Visitor arrivals in 2004 Total arrivals increased by 40.4% year-on-year to 21.8 million; highest in history 12.2 million arrivals from Mainland China Hotel occupancy averaged 88% for 2004 Economy grew by 8.1% in 2004 Highest growth rate in 4 years Above 20-year average of 4.8%

22. CASE STUDY: HONG KONG BRAND HONG KONG: Results 144 foreign companies set up/expanded operations in Hong Kong in first six months of 2005, investing US$192.3 million 13.4% increase from same period previous year Immediate creation of 1,421 jobs, with plans to to create 3,072 more jobs in next 2 years

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35. KEY ISSUES FOR PENANG SUMMARY Ensure long-term commitment Get continuous buy-in from ALL stakeholders Research what you have & what is wanted Focus on experiences, not places Target segments for differentiation Develop brand and other plans Move toward digital/social/WOM marketing Action, not discussion Development measurement & accountability

36. DOUBTS & QUESTIONS [email_address]