HOW TO BRAND PENANG WHEN EVERYTHING IS DIFFERENT

HOW TO BRAND
PENANG WHEN
EVERYTHING IS
DIFFERENT
Essential issues of destination branding
April 9, 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?
BRANDING TODAY?
“It's not what we don't
know that hurts, it's
what we know that
ain't so.”
Will Rogers
18791935
Mass economy
branding
(1920 - 95)
“Sell what we
make”
1
2
Customer economy
branding
(1996 - 2010)
“Sell what customers
want to buy”
Personalised
branding
(2011-??)
“Provide customer
solution”
3
FORMULAS FOR SUCCESS FOR EACH ERA
Advertising, PR, etc.
Strategy:
+ “positioning”
+ market research
1: AWARENESS
Brand
strategy:
Brand
owner:
Strategic
focus:
Metrics:
Tactics:
We define brand
based on “position”,
“messages,” etc
Quality/service
+ processes
+ customer DB
Personalization
2: ENGAGEMENT
3. CO-CREATION
Customers define brands
based on economic,
emotional & experiential value
Marketing dept.
Organization
Competitors
Customers
Marketing Dept.
Sales
Creative-driven
Profits
Data-driven
+ immediacy
+ integration (SC)
Customers & firms cocreate brands based on
personalisation capabilities
Supply chain
Social networks
Relationship depth/strength
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
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."
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
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.)
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
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
CASE STUDY: HONG KONG
STRATEGY: Development & execution
Plan based on 5 key elements
Build additional infrastructure
Improve existing facilities
Enhance service quality
Facilitate visitor entry
Actively promote Hong Kong
Business & tourism
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
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
CASE STUDY: HONG KONG
EXECUTION: Infrastructure
Eco-tourism
Cruise
Hong Kong Wetland Park project developed to
showcase Hong Kong‘s ecological richness
New cruise terminal in SE Kowloon
Other
“To make HK more
visitor-friendly,
installation of new
signage in all districts”
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
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.)
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
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
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%
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
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
SHOW COPY:
www.slideshare.net/aspennow/how-to-brand-a-destination
DOUBTS & QUESTIONS
[email protected]
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