amb209 - tourism marketing strategy · 2018. 9. 5. · amb209 tourism marketing assessment item 3...

AMB209TourismMarketing AssessmentItem3 Semester2,2016

DavidReid 1 n9177485



EXECUTIVESUMMARYThis report was conducted in order to improve Bundaberg North Burnett’s marketing

strategy for the Brisbane short stay market. Research conducted by Tourism and

Events Queensland (2014) found that the region would best be suited to targeting its

marketing efforts to two segments of the market; older couples in or near retirement

and families with children.

A STEP analysis, VIRO Model and SWOT analysis identified that the region should

be marketed as a place to escape city life and explore the natural beauty that the region has to offer.

Three objectives and tactics have been developed and involve offering unique

pricing and packaging options, developing higher star accommodation and eco-

friendly attractions, and partnering with local schools to help further hospitality

options in the region. This will help Bundaberg North Burnett remain a competitive option for Brisbane residents in the short stay holiday market.



TABLEOFCONTENTSEXECUTIVESUMMARY 2

INTRODUCTION 4

TARGETMARKET 5

SITUATIONALANALYSIS 6

STEPANALYSISOFMACROENVIRONMENT 6COMPETITIVEENVIRONMENT 8DESTINATIONRESOURCES-VRIOMODEL 8SWOTMATRIX 9

POSITIONINGSTRATEGY 12

OBJECTIVESANDPERFORMANCEINDICATORS 13

MARKETINGANDCOMMUNICATIONTATCTICS 14

OBJECTIVE1 14OBJECTIVE2 14OBJECTIVE3 14

BUDGETANDACTIONPLAN 16

REFRENCES 17



INTRODUCTION

Located just five hours north of Brisbane, the Bundaberg North Burnett Region offers

visitors an ideal introduction to the Southern Great Barrier Reef. The region is

famous for its produce and world class drinks, most notably Bundaberg Rum. The

Bundaberg North Burnett Region is perfect for a family beach holiday with

temperatures just under 30°C on average during summer. This trend of divine

weather continues into winter with an average temperature of just under 23°C (Bundaberg North Burnett Tourism, 2016) (Tourism and Events Queensland, 2016).

The regional tourism organisation (RTO) is ‘responsible for implementing marketing

strategies to promote the… region as a travel destination’ (Tourism and Events

Queensland, 2016) and is responsible for an area that spans as far north as Agnes

Water, as far east as Auburn River National Park.

The region offers a number of attractions for tourists no matter their age. Visitors to

the region can explore over 25 national parks such as Cania Gorge National Park,

take a tour of the iconic Bundaberg Rum Distillery or relax at one of the many

beautiful beaches the region has to offer. The Bundaberg North Burnett region has a

vast variety of family orientated activities in the great outdoors, from taking a ride on

the sugar train railway through the Bundaberg botanical gardens to the big orange in Gayndah. (Bundaberg North Burnett Tourism, 2016).

This report will provide the Bundaberg North Burnett RTO with a new marketing

strategy to effectively target the Brisbane short stay holiday market. This report will

encompass a thorough situational analysis, a synced positioning strategy before

providing objectives and performance indicators, marketing communication tactics as well as a budget and action plan.



TARGETMARKET

Short break holidays are becoming increasingly popular around the world thanks

partly to an increase in disposable income and leisure time (Pike, 2016a). Although

short break holidays fail to have a universal definition (Edgar, 2001, as cited in Pike,

2004 p. 557 & Pike, 2004) according to Pike (2016a p. 250) ‘a short break holiday is

a non-business trip of between one and four nights away from home.’ Day trips are

not included in this definition and only included domestic destinations travelled to by

car (Pike, 2004). Further research by Pike and Mason (2011) indicates that the short

break holiday is popular in Australia, with people taking on average at least three short holidays each year.

Due to the large area of the Bundaberg North Burnett RTO, the area can target two

segments of the short break holiday market. All segments motivational factors and

needs for taking a short holiday varies and provides an excellent opportunity for the RTO to capitalise on.

The first target segment is dual income earners with no children whose combined

income is over $100,000. The main motivation for this demographic to take a short

break is the ‘need to get away from it all’ or ‘change of scene’. This segment is often

older couples nearing or in retirement or older childless professionals (Murphy,

Niininen, & Sanders, 2010). This segment accounted for 27% of visitation to the Bundaberg area between 2009 and 2012 (Tourism and Events Queensland, 2014).

The second segmentation target is families with children under the age of 15. This

segment is broad and depends on family structure (single parent). Income ranges

from $50,000 to $104,000 and the main motivation for this demographic to take a

holiday is the ‘need to get away from it all’ (Murphy, Niininen, & Sanders, 2010).

Family groups accounted for 28% of visitors to the Bundaberg region in a four-year period from 2009 (Tourism and Events Queensland, 2014).



SITUATIONALANALYSIS

STEPANALYSISOFMACROENVIRONMENT

The tourism industry operates in a dynamic macro environment meaning they are

exposed to a number of opportunities and threats of which the RTO does have

control over such as large social forces and external forces that effect the

microenvironment (Pike, 2016a & Pike, 2016b). The following table contains a STEP

Analysis that provides an overview of the macro environment for the Bundaberg North Burnett Region.

Socio-cultural Technology Environment Economy Political

• Region is statistically safer and perceived safer compared to other regions (Pike & Gentle, 2016 and (Queensland Police Service, 2016)

• Accommodation and attractions is cheaper compared to other regions

• Low amount of high star accommodation

• Social media has the potential to have both a positive and negative effect on operators

• A positive or negative experience can be shared to thousands instantly

• Consumers

expect operators to have an online presence to research, book and purchase experiences while connecting with operators (State of Queensland, 2014)

• Poor Internet

• Natural wonders and low commercial development are a large advantage for tourism in the area compared to other regions

• Climate change threatens the region and its natural attraction

• Pollution and other human damage continues to effect the Great Barrier Reef and this will have a negative impact on RTO as much of its tourism offerings are focused on the reef (Commonwe

• Bundaberg is experiencing an upturn in economy after recent natural disasters (Warhurst, 2015)

• High levels of un-employment

• Petrol prices are lower in Brisbane enabling people to drive further for less (Hyam, 2016)

• Interest rates have remained relatively stable providing some certainty in the market (Irvine, 2016)

• Brisbane residents

• Political environment is stable in the Bundaberg region but is facing local job losses (Buchanan, 2016)

• Large amounts of resident in Bundaberg want more tourists to visit and grow the industry (Tourism and Events Queensland, 2013)

• Low investment in roads in the area



and phone coverage in the area

alth of Australia, 2016)

have higher disposable incomes and an increased leisure time (Pike, 2016)



COMPETITIVEENVIRONMENT

Brisbane residents are very fortunate to be living in a city that is serviced by a

number of short break holiday destinations, all within a short drive (Pike, 2006).

Areas include the Gold Coast, the Tweed, Sunshine Coast and Toowoomba. Due to

the competitive nature of the industry it is appropriate to develop the RTO’s competitive advantages using Barneys VRIO model.

DESTINATIONRESOURCES-VRIOMODEL

Resource Valuable Rare Un-Imitable Organisation Competitive Status

Natural: Beaches ✔ ✖ ✖ CA

Developed: Bundaberg Rum Distillery

✔ ✔ ✖ CP

Natural: Great Barrier Reef

✔ ✔ ✔ ✔ CA



SWOTMATRIX

Strengths

• Most accessible turtle hatchery in Australia

• Great access to coral cay islands located in the Great Barrier Reef Marine Park

• High quality tourist attractions – natural, man made and cultural

• Climate is good year round

• Rage of accommodation offerings available

• 3 airports in the region

• Family friendly

• Very tourist friendly (The State of Queensland, 2009)

Weaknesses

• Region lacks high star accommodation

• Poor telecommunication coverage

• Limited dinning experiences, range and opening hours

• Road infrastructure poor – number of unsealed roads and poor singe

• Location from Brisbane – a number of destinations in consumers mind sets are located closer to Brisbane

(The State of Queensland, 2009)

Opportunities

• The continued growth of South East Queensland

• Benefit form unemployment rate in the area to train or retrain locals in the hospitality sector to provide a wider range of restaurant options and operating hours

• Capitalise on the regions crime statistics compared to other short break destinations

• Low cost of fuel

• Many beautiful untouched beaches that maintain their charm and identity and are mot ruined by over development

Offensive Tactics

• Partner with local wildlife protection agencies to create sustainable ecotourism attractions that capitalise on the areas natural wonders such as the reef to raise awareness and generate positive social media content



• The Great Barrier Reef and

the many eco-activities and attractions the natural wonder has to offer (The State of Queensland, 2009)

Threats

• Lack of accommodation investment in Bundaberg

• Area avoided due to poor road infrastructure whilst other regions continue to invest

• Lack of private funding for tourist attractions

• Global warming and environmental damage caused by humans

• Natural disasters

• Downturn in the economy

• Ability to meet demand for high star accommodation

• Negative experiences shared online via social media

• Global warming and human damage to the Great Barrier Reef (The State of Queensland, 2009)

Defensive Tactics

• Invest and promote inland destinations to maximise the economic impact fir sustainable attractions and accommodation



The Bundaberg North Burnett region has many strengths, weakness, opportunities

and threats which all help to shape its tourist offerings. The most significant aspects

for the region would be the growth of South East Queensland, the low fuel prices,

Bundaberg North Burnett’s many beaches and entry point to the Great Barrier Reef.

The region should be marketed to older couples and families in the Brisbane market

looking for the perfect beach escape and coral adventure whilst educating tourist of

the need to preserve the reef.



POSITIONINGSTRATEGY

The Bundaberg North Burnett RTO should position the area as a unique place for

families to escape city life and explore the beautiful natural wonders the area as to

offer. By positioning the region has an ecotourism, sustainability hotspot mixed in

with the rustic charm of big country town will help to differentiate the region from

others in reach of the Brisbane short stay market.

BigCountryTown

EcoTourism

NaturalWonders

CityEscape FamiliesandOlderCouples



OBJECTIVESANDPERFORMANCEINDICATORS

Bundaberg North Burnett objectives will include:

1. Increase awareness and the number of short stay visitor numbers from

Brisbane by a further 15% by 2018 by generating interest through advertising

campaigns.

2. Secure private funding to increase 4 and 5 star accommodation options by

20% before the end of 2020 and develop at least four new ecotourism

attractions to protect natural environments and to help differentiate region

from competitors by the summer of 2020/21.

3. Implement a training program to encourage local students and unemployed

local residents to enter the hospitality industry to increase dining options and

operational hours of restaurants by 2020.

These objectives will be measured against performance indicators such as visitor

numbers during defined periods, increase in accommodation offerings and impact on

local economy to determine if objectives have been meet.



MARKETINGANDCOMMUNICATIONTATCTICS

The marketing communication tactics for Bundaberg North Burnett reflect the areas

objectives and positioning strategy of promoting the area as a unique place for

families to escape city life and explore the beautiful natural wonders the area has to offer on a short break holiday.

OBJECTIVE1

To increase visitor numbers and awareness of the region from the Brisbane market,

a partnership with a major travel company such as Flight Centre could help increase

visitor numbers by 15%. Deals and all-inclusive packages could be provided

significantly less then those on offer from competing RTO’s. This will require

contribution from providers such as accommodation services and tour operators

partnered with a traditional and social media campaign into the target market as well

as dedicated website for Brisbane residents. A partnership with Flight Centre could leverage of existing deals that promote Queensland to global tourist (Carty, 2014).

OBJECTIVE2

To help increase private funding to provide high star accommodation and

development of ecotourism attractions in the region private funding will be sought

from both domestic and international investors. ‘Destinations require…

investment(s)… including new developments, redevelopment and refreshment of

tourism products… to ensure the destination can maintain and enhance market

appeal…’ (Sustainable Tourism Online, 2010). The region should work closely with

Austrade using the Tourism 2020 scheme (Australian Trade and Investment

Commission, 2016). When the development is completed competitions for free short

stay holidays will be offered to Brisbane residents whilst heavily discounted room

rates will be available for Brisbane residents through a subscription newsletter. This will also allow the region to provide regular updates and deal direct to consumers.

OBJECTIVE3

To help increase hospitality hours in the region a partnership should be formed with

the Queensland State Education Department, TAFE Queensland and other local

education institutions to help promote the career to local students. The RTO could



sponsor or provide grants to local school’s hospitality courses and help provide work

experience with restarts within the tourism area. A third party sponsorship or

partnership will be sought. A large amount of free publicity is expected to be

generated throughout this program.



BUDGETANDACTIONPLAN

To achieve objective 1, $50,000 will be allocated. This will include $25,000 for

television, $10,000 for radio, $10,000 for online advertisements and Search Engine

Optimisation whilst a further $5,000 for social media. The media campaign will heavily focus on Brisbane long weekends and Queensland school holidays.

Objective 2 funding will vary depending on the scale of investment but $30,000 will

be provided by Bundaberg North Burnett. This process should commence has soon

has possible to meet the objective timeline of 2020.

$20,000 will be provided to objective 3, with local schools able to apply for grants of

up to $800. Consultation should begin immediately with local establishments to

source work experience for local students and third parties to enable future funding.

Grants of $500 provided to remote students to complete the program. The initial

program will run for a year commencing in 2017 with hope of extending with private

funding.



REFRENCES

AustralianTradeandInvestmentCommission.(2016).InfrastructureandInvestment.RetrievedOctober18,2016fromAustrade:https://www.austrade.gov.au/Australian/Tourism/policy-and-strategy/infrastructure-and-investment

Buchanan,K.(2016,October10).Aviationmanufacturerclosureasignofthetimes,industryinsidersays.RetrievedOctober16,2016fromABCNews:http://www.abc.net.au/news/2016-10-10/aviation-manufacturer-camit-closes/7918952

BundabergNorthBurnettTourism.(2016).PlayNorthBurnett.RetrievedOctober10,2016fromBundabergRegion:http://www.bundabergregion.org/play/north-burnett

Carty,K.(2014,September1).ThesunisshiningonQueenslandtourism.RetrievedOctober18,2016fromFlightCentre:http://www.flightcentre.com.au/travel-news/travel-news/sun-shining-queensland-tourism/

CommonwealthofAustralia.(2016,March16).GreatBarrierReef.RetrievedOctober16,2016fromAustraliaGovernment:http://www.australia.gov.au/about-australia/australian-story/great-barrier-reef

Hyam,R.(2016,June6).Petrolpricesfalltolowestlevelin17years,ACCCsays.RetrievedOctober16,2016fromABCNews:http://www.abc.net.au/news/2016-06-06/petrol-prices-fall-to-lowest-level-in-17-years-accc-says/7481110

Irvine,J.(2016,October15).Don'tworry,lowinterestratesareworking:here'show.RetrievedOctober16,2016fromTheSydneyMorningHearald:http://www.smh.com.au/business/the-economy/dont-worry-low-interest-rates-are-working-heres-how-20161014-gs28uy.html

Murphy,P.,Niininen,O.,&Sanders,D.(2010).Short-breakholidays:acompetitivedestinationstrategy.GoldCoast,Queensland,Australia.

Pike,S.(2004).Spoiltforchoice:shortbreakholidaypreferencesintheBrisbanemarket.AnnualConferenceoftheCouncilforAustralianUniversityTourismandHospitalityEducation(p.577).Brisbane:UniversityofQueensland.

Pike,S.(2006).Destinationdecisionsets:Alongitudinalcomparisonofstateddestinationpreferencesandactualtravel.JournalofVacationMarketing12(4):pp.319-328.

Pike,S.(2016a).DestinationMarketing(2ndEditioned.).NewYork:Routledge.

Pike,S.(2016b).AMB209TourismMarketing:Lecture4[LectureNotes].Retrievedfromhttps://blackboard.qut.edu.au/bbcswebdav/pid-6411044-dt-content-rid-6687781_1/courses/AMB209_16se2/AMB209%20-%20Identifying%20market%20oppotunities.pdf

Pike,S.,&Mason,R.(2011).Destinationcompetitivenessthroughthelensofbrandpositioning.CurrentIssuesinTourism.,13(2),196-182.

QueenslandPoliceService.(2016).QueenslandCrimeStatistics.RetrievedOctober16,2016fromMyPolice:http://mypolice.qld.gov.au/bundaberg/queensland-crime-statistics/

SustainableTourismOnline.(2010).PrivateInfrastructureandInvestment.RetrievedOctober18,2016fromSustainableTourismOnline:http://www.sustainabletourismonline.com/destinations-and-communities/implementation/destination-development/private-infrastructure-and-investment



TheStateofQueensland.(2009).Bundaberg-FraserCoastTourismOpportunityPlan.TourismandEventsQueensland.

TheStateofQueensland.(2014).DestinationSuccsess-The20yearplanforQueenslandtourism.DepartmentofTourism,MajorEvents,SmallBusinessandtheCommonwealthGames.StateofQueensland.

TourismandEventsQueensland.(2013).BundabergSocialIndicators2013.RetrievedOctober16,2016fromTourismandEventqueensland:https://cdn-teq.queensland.com/~/media/ddca693b0f6f4940b303a0763d6d5386.ashx?vs=1&d=20140515T080036

TourismandEventsQueensland.(2014).BundabergTourismProfile.

TourismandEventsQueensland.(2016).RegionalTourismOrganisations.RetrievedOctober8,2016fromTourismandEventsQueensland:http://teq.queensland.com/about-teq-new/contacts/rtos

Warhurst,C.(2015,December2).Bundabergregionsetforaneconomicupturn.RetrievedOctober16,2016fromNewsMail:http://www.news-mail.com.au/news/the-future-looks-bright/2859669/

amb209 - tourism marketing strategy · 2018. 9. 5. · amb209 tourism marketing assessment item 3...

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