Destination Branding: Differentiation and Synchronisation Professor David Litteljohn Cultural Business Group, Caledonian Business School, Glasgow Caledonian University, Cowcaddens Road, Glasgow G4 0BA, Scotland, UK Tel: +44 (0) 141 331 8470 Email: dli@gcal.ac.uk Abstract Place branding is an important marketing tool and can have a major role for drawing stakeholders together, providing a core set of values for the destination whilst highlighting the need for market orientation. City – and by extension region - brands face a number of challenges. One of their largest challenges is differentiation. Through and examination of three different cities in the UK – London, Glasgow and Edinburgh – development and positioning issues are studied to provide an overview of the branding process. Biography David Litteljohn is Professor of Tourism and Hospitality at Glasgow Caledonian University. His past career includes working for a regional economic agency, where he was involved in tourism development. He researches in internationalisation, market change and destination development in tourism from a strategic perspective. September 2006 1 Destination Branding: Differentiation and Synchronisation Some hold branding as perhaps the most powerful marketing weapon available to contemporary destination marketers confronted by increased competition (Morgan and Pritchard, 2004: P60). The purpose of this paper is to understand some theoretical and practical issues in the branding of city destinations. Three U.K examples are taken: London Edinburgh and Glasgow. Branding’s appeal A brand is ‘an identifiable product, service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Success results from being able to sustain these added values in the face of competition’ (Chernatony and McDonald, 2003, P25). Added values may be functional and non-functional and take on meanings where consumer awareness is triggered consciously or intuitively (McRae et al, 1995). As Western societies become more affluent so branding becomes more complex. While the basic brand proposition is important, communication is key to create consumer awareness of brand values. Sustainability comes from stressing attributes that closely match target markets’ needs and that create a product image consistent with the perceived self-image of their buyers (Shiffman and Kanuk, 2000) superior to competition. Major branders traditionally launch their messages through extensive advertising and promotional campaigns. Procter and Gamble, reputably the largest global advertiser, spent US$5.8 billion in 2002 circa euro 4.5 billion (Sorrell, 2004) on promoting its diverse brand portfolio which includes Lacoste (fashion clothing), Pampers (baby goods) and Lenor (cleaning products). Successful brands persist in spite of consumer setbacks: consider Coca-Cola’s unsuccessful introduction of ‘New Coke’ in 1985 and their Dasani (bottled water) flop in Europe during 2004. This does not mean that large promotional spends bring success: what is important is positive interaction between brands and their target markets. Places, images and branding Interest in branding tourism destinations emerged from the mid-1990s. Previously attention had mostly concentrated on destination image but, as mature destinations experienced greater levels competition, marketers searched for new approaches. Place branding arose to position abstract notions of image formation within a tighter framework which offered more guidance to destination managers. While different destinations make generalisation impossible, it is fair to say that many places (visited or not) generate an identity in the public’s mind. These may be positive, negative or neutral, exciting, romantic, violent, fuzzy, etc. They arise from many sources: e.g. arts, history and educational sources and contemporary events and media coverage, as well as word-of-mouth. Promotions from tourism suppliers also plays a part: however, impact may be low through the high volume of other sources and because it may arrive late in decision-making processes. Branding destinations styles itself as ‘strategic place marketing’ (Kotler and Gertner, 2004: P 46). It emphasises proactive management of image in relation to enhancing a destination’s position by: 2 Understanding environmental forces that affect its marketability Monitoring the external environment in relation to opportunities and threats Involving all relevant stakeholders including government, citizens and businesses to develop a shared image Setting and delivering incentives and managing the factors that may affect buying decisions including image, attractions, infrastructure and people (Kotler and Gertner, 2004) Thus branding takes into account (i) factors that influence consumers decision-making and (ii) effects on differences in consumers’ perceptions of destinations and their satisfaction ratings. However, destination branding must incorporate the fixity of tourism products provided by their location (destination size and composition of tourism supply) and the images and perceptions currently held about it (Cai, 2002). Table 1, whilst not comprehensive, extends this application of product branding to places. Table 1: Product branding and place branding: a comparison Factor Supply characteristics Product branding Destination branding Focused around a few variables May involve a narrow OR varied set of variables dependent on resources at destination Follow a narrow offering Relatively targeted – may be mass or niche May be many and varied May be broad including mass AND niche Under control of one organisation Requires stakeholder buy-in: co-operation and joint budgeting/co-ordination amongst various suppliers Spend related to corporate strategy Spend related to general indicators such as perception of destination in key markets Offering Quality variables Demand/Markets Brand building and maintenance Allocation/ responsibility Allocation/monitoring /targets Place branding is consumer-orientated: it should build lifestyle statements associated with emotional relationships (Sheth, Mittal and Newman, 1999) as well as highlighting tourist attractions. However, brand formation must also account for all stakeholders who deliver brand values – either actively (e.g. tourism suppliers) or passively (e.g. local communities who provide the bedrock economic and social life). The re-branding Nottingham in the U.K. (near Sherwood Forest, home of the legendary Robin Hood) shows a case of public dissatisfaction when traditional associations are replaced with more direct positioning strategies (see http://www.robinhood.ltd.uk/tourism/nottingham_n.htm). 3 Tourism place brands may need to relate to associated brands: for example, supracountry brands where government decides to pursue a broad brand strategy. Other tourism place brands differ by level and by type. There may be market segment or event brands also. These are shown in Table 2. Table 2: Tourism brands by level and type Supra national brand Supra national tourism brands Location/Community/Destination Niche tourism* Special interest Region Tradition & Culture based City Activity-based Event Tourism Cultural/Artistic Political Professional & Scientific Leisure participant Sporting spectator * Derived from Novelli, 2005 Building a destination brand Based on the theoretical perspectives above it is useful to consider tourism destination brand development under four headings. (1) Antecedents: To what extent must a new image reflect existing images/perceptions: countries evolve over centuries and reflect many social, cultural, economic, religious, aspects as well as contemporary features? The pull of tradition over more radical change must be weighed. This stresses the core values and the underlying nature of offer (physical opportunities and emotional benefits on offer). (2) Tourism Dynamic: Offers must be related to consumer’s desires and the stage of market development. Thus Morgan and Pritchard (2004, P 69) propose a destination ‘brand fashion curve’ (adapting the product life cycle and Butler’s Tourist Area Life Cycle, 1980) to suggest four stages: (i) fashion and high growth in demand; (ii) a famous destination experiencing a slower, peaking growth; (iii) consumer familiarity as the destination matures (iv) fatigue as demand declines to a minimum level. This accentuates a role for planning and market research to ensure high market orientation and to ensure that brands meet specific long and short-term requirements. (3) Brand leadership and synchronisation: Leadership emphasises the need for direction in the development and co-ordination of brands, very important in a fragmented industry. Synchronisation relates to the need for brands to add value – particularly if a place is encompassed in several brands, operating at different levels: differences in brands must add value to target markets. Synchronisation with markets is particularly important as brands evolve. (4) Integration of branding with other activities: branding is one of many marketing and promotional activities undertaken by tourism organisations. These include: research, representation abroad; organization of workshops/trade shows; familiarization trips; travel manual; supporting production and distribution of materials; participation in joint marketing schemes; information and reservation systems; support for innovation etc. (Middleton and Clarke, 2001: P342-346). Destination management organisations have limited resources to finance and must ensure that resources are used effectively. 4 City Brands in the UK City and regional brands face particular issues of differentiation: whilst many countries are closely associated to icons (e.g. an innovators, explorers) many tourism markets (particularly foreign) are less likely to identify these to specific cities and regions (Anholt City Brands, 2005, P2). There are many examples of city branding from Europe (e.g. Rome, Amsterdam, Copenhagen) - this analysis spotlights three different cities in the U.K. The UK ranks sixth (24.7 million arrivals in 2004) for international tourism (World Tourism Organization, 2005). It has a mature domestic market in leisure and business tourism. It is not a cheap destination and has to compete in other ways to provide value. One branding exercise saw the U.K as an ‘island of traditional heritage and the unconventional’ where emotional benefits included enriching experiences and relaxation in a friendly, open culture which, while it initially appears to have a cold personality, is ‘deeply friendly’ and ‘ordered yet quirky’ (Morgan, Pritchard and Pride 2002: P34-25). 5 Table 3: Three city Brands in the UK: a guide to antecedents; tourism dynamics and leadership City Antecedent factors Tourism Dynamics 2003 3 Brand leadership London Population: 7,429,000*: UK royal and government capital: a cosmopolitan, world centre for arts, entertainment and education and commerce. 4 major airports dealt with 111.692 million passengers in 20011 and 124 million in 20042. Also served by London City Airport. National centre for other transport networks Total tourism spending £9.1 billion (65% from international visitors). High standard and varied tourism infrastructure including arts, entertainment and major sporting events. Tourism activity concentrated in central districts. Annual hotel occupancy varies by standard of facility: often + 75% Edinburgh City Population: 430,082*: Scottish capital, royal, legislative and administrative heritage. Financial centre. Location of the Scottish Parliament (from1998 after suspension in 1707). Airport handled 3.3 million passengers (2001). Major transport hub for UK east coast services. Glasgow City Population: 629,501*: trading, artistic and industrial heritage. Major retail centre in UK after London. Development of services industries. Served by 2 airports. Main airport handled 3.9 million passengers (2001). Major transport hub for UK west coast services. Earned £985 million from tourism (33% from international visitors). Tourism strategy centred around festivals: including annual Arts Festival with others covering a spectrum of art, scientific and community events. Some peaking of demand in summer months. Average hotel occupancy c. 73%. Earned £707 million from tourism (21% from international visitors). Tourism strategy launched in mid1980s change industrial image, develop new infrastructure including large conference and exhibition facilities. Demand relatively evenly spread throughout year, average annual hotel occupancy c. 62%. City brand developed by a local publicprivate partnership City brand developed by a local publicprivate partnership Since 1970s strong commitment to industrial regeneration by the Regional/City council. Branding located within the tourism function of local government Sources: Population: Office for National Statistics from, Census 2001 at http://www.statistics.gov.uk/census2001/census2001.asp accessed 5 September 2006 1 Civil Aviation Authority, 2001, UK Airport Report - Passengers at Gatwick, Heathrow, Luton, Stansted, Manchester, Aberdeen, Belfast City, Belfast International, Edinburgh, 6 Glasgow and Inverness Airports in 2001 available at http://www.caa.co.uk/docs/81/Report2001.pdf (accessed 5 September 2006) 2 3 Civil Aviation Authority, 2004, Economic Regulation Group - CAA Passenger Survey Report 2004 Survey of passengers at Gatwick, Heathrow, Luton, Manchester & Stansted Airports available http://www.caa.co.uk/docs/81/2004%20Report.pdf (accessed 5 September 2006) Figures for 2003: Edinburgh City available at http://www.scotexchange.net/edinburgh_and_lothians_-_edinburghlothian_-_index and Glasgow City available at http://www.scotexchange.net/glasgow_clydevalley_-_index, both accessed 5 September 2006 and London from Visit London: Prospects for 2006/07 available at http://www.visitlondon.com/ems/images/1prospects2006.07.pdf (accessed 6 September 2006) London – a holistic approach London has a very strong international image: e.g. Anholt’s (2005) City Brand Index placed it as the world’s favourite city. However, for nearly 20 years from the early 1980s public sector efforts in London tourism were largely led by its local/district area councils: no city-wide government body existed, through there was a city tourist board. On the election of a London assembly with a Mayor in 1998 citywide initiatives emerged, including a London branding initiative. The original push to develop the brand was channelled through the London Development Agency (LDA) which has a wide economic development remit. A holistic city brand was built through consultation with many local stakeholders. The strategic priorities of ‘Brand London’ are to position it as: 1. The world’s leading financial centre and Europe’s business capital 2. Europe’s number one city for culture 3. The host city to host major, globally recognised, events 4. A leading centre of research, science and technology 5. The place to study for students – foreign and domestic Given the importance of tourism to its economy it is interesting that it is implied in the priorities (especially 2 and 3 and, for business tourism, in 1), rather than being stated separately. This does not mean that tourism is forgotten: the brand played a part in the successful bid for the Olympics in 2012. The brand is also evolving in order to meet environmental turbulence and negative effects of events: e.g. it has been used helped minimise a downturn in domestic trips to London caused by the 7 July 2005 bombings. The brand is currently being managed by Visit London, the city’s tourism arm, in close consultation with Mayor’s office. Edinburgh – getting buy-in Tourism is embedded in Edinburgh’s economy. It is the top city destination for overseas visitors to the U.K after London. It is an affluent city and possesses Europe’s sixth largest financial centre. It hosts many special events throughout the year ranging from the established arts festival – the International Edinburgh Festival - which anchors a number of complementary art events into a mega-event. Another well known event is its annual New Year’s celebration (Edinburgh’s Hogmanay). The city’s local government have supported tourism strongly and have helped finance a city/regional marketing bureau. There is also a separate regional economic development body. In recent years, one of the main ways the City has addressed issues of repositioning largely through 7 developing a co-ordinated policy for its festivals and events (see documents at http://www.edinburgh.gov.uk/internet/Leisure/Arts_and_entertainment/Arts_Development /CEC_cultural_policy_and_art_strategies ). Edinburgh City Region brand was established in 1998. It is a public/private partnership with representation from across major sectors that work with branding specialists. Branding is holistic, focusing on economic, education, community and tourism. The brand positions Edinburgh as an attractive location for industry and talent for world-class research and education, high quality tourism and, for its local population, a high quality of life as a contemporary city region with a remarkable heritage (see http://www.edinburghbrand.com/ ). The building process pays particular attention to producing brand specifications so that all major stakeholders can buy-in and participate in the brand through a dedicated website and regular communications. Glasgow - styling a city, restyling a brand Glasgow has a rich trading and industrial heritage, though a recent strategic involvement in tourism. The city closely addressed its image since its transformation to a services economy from the early 1980s: ‘Glasgow’s Miles Better’ slogan (1983); National Garden Festival (1988) and European City of Culture (1990) all had major tourism components. Changes were often made on a tripartite basis - City Council, its tourism arm and the local development body - but were inevitably associated with the local tourist board which was well networked and under charismatic leadership. Tourism branding for Glasgow has to take into account that the duality of excellent attractions and some of the poorest neighbourhoods in the U.K. Tourism markets particularly promoted are large-scale business/association conferences and congresses through the development of infrastructure and a Convention Bureau as part of the city’s tourism investment. The city also hosted Glasgow: European City of Architecture (1999) and the European Capital of Sport (2003). Its most recent re-branding (2004) was the launch of the ‘Glasgow: Scotland with Style’ campaign (http://www.seeglasgow.com/glasgow-the-brand ) launched at a cost of £1.5 million (Mooney, 2004) by the City’s Marketing/Tourism Bureau. Drawing inspiration from Glasgow architecture and design style movement of the early 1900s and capturing a contemporary appeal of its cultural and retail strengths. The brand both acknowledges its national affiliation while highlighting the city’s strengths. It was developed and is currently managed by the city’s tourism bureau. There are moves to capitalise on the tourism brand by evolving it into a holistic city brand as part of a new economic strategy for Glasgow. This, it is intended, will be achieved by adapting the brand to new, international audiences through a step-change programme that widen brand reach. Thus, Glasgow, which has used tourism as a major strategy in developing its service-base is planning to restyle its tourism branding into a broader strategy. Conclusion This brief analysis has introduced and briefly discussed place branding. It is now an important marketing tool and can have a major role for drawing stakeholders together, providing a core set of values for the destination whilst highlighting the need for market orientation. It is also clear, from the examples analysed, that branding may help change 8 perceptions and, as London exemplifies, how it may focus marketing responses in times of crises. City – and by extension region - brands face a number of challenges. One of their largest challenges is differentiation: how does one place distinguish itself in areas of culture, arts and economic opportunities, for example, when the target markets may identify these issues more with the country? While a resort destination may feel more at ease than a city in this respect, hard work is needed for it to gain attention if it lacks differentiation from other destinations: this is where niche sub-brands may figure. Although not a component of this paper, they nevertheless merit greater study. Their use also brings up a second major challenge of place branding: synchronisation – how do brand relate to each other in ways that will add value to the visitor experience? Related to the general point of synchronisation are subjects of impact and resources. Place brands are often supported by limited funding and it is necessary to be realistic as to its role and important to ensure integration into the wider promotional effort. The analysis has identified the fact that city brands may be holistic rather than aimed solely at tourism. This is not necessarily negative, but adds to the weight of more case studies and research into the building, evolution and impact of place branding. References Anhold City Brands, 2005, How the World Views Its Cities: Anhold City Brands (December), Seattle: accessed http://www.citybrandsindex.com/ 8 September 2006 Butler R. 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