how to brand a destination

HOW TO BRAND PENANG WHEN EVERYTHING IS

DIFFERENT

Essential issues of destination brandingApril 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?

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BRANDING TODAY?

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 brandbased 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 3FORMULAS 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: InfrastructureGoal: 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


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


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”


EXECUTION: ServiceTo 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

Match potential investors w/ business partners


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%


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

KEY ISSUES FOR PENANG

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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

DOUBTS & QUESTIONS

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