Med Cruise Development Course Port Marketing Session Luis de Carvalho February 24, 2015
Agenda Presentation on Port and Destination Marketing Q&A Session with Costa Diadema Management Shorex Manager Alessandro Oddi Hotel Director Alessandro Marossa Exercise: Marketing Plan for: Palamos Heraklion Lisbon Conclusions and Reflections
1 Promotion, Marketing, Sales
Basics Promotion - give good data about a product Marketing - tries to sell it, make way for sales Sales – closes the deal “Promotion is the action of making something well known and well thought of”. "It is the art of offering what will be responded to”. “Assume view point of the buyer - your client”
What is the most effective promotion tool Public Relations Al Ries , author of “ Positioning: The Battle for Your Mind” “ Advertising doesn’t build brands, publicity does. Advertising can only maintain brands that have been created by publicity .” “The truth is, advertising cannot start a fire. It can only fan a fire after it has been started. To get something going from nothing, you need the validity that only third-party endorsements can bring. The first stage of any new campaign ought to be public relations .”
Aalborg, the hot dog destination
2 Key Questions
Key questions What are you selling? Ports, destinations, experiences, services Who are you targeting? Cruise lines, travel agents, end consumer - passengers What is the message and messenger? B2B, B2C How is it being presented? Materials, brochures, PPT’s, vocally What are the channels being used? Media, ads, events, visits, mails, conferences
Types of Cruise Lines and Different Brands
Types of Cruise Lines and Different Brands
Types of Cruise Lines and Different Brands
Types of Passengers and Different Experiences
Types of Passengers and Different Experiences
Senior Marine Management Environment department Dept. Land programs/ Hotel Shorex Operations Marketing & Business Sales development Itinerary Planning Finance control Air department Purchasing Retail
The main reasons why cruise lines visit a destination 1) Consumer demand; 2) Revenue opportunities; 3) Return on investment - costs vs revenue; 4) Passenger satisfaction; 5) Safety and security; and, 6) Fit in the itinerary. Outgoing TUI Cruises CEO Richard Vogel summed up the challenge: "We have to send ships where our passengers want to go but it will now depend on just how much they are willing to pay to go there."
Brand
3 Surveys and Research
The Importance of Knowing your Public You get little or no response from ads or mails You get little or no attention from attending trade shows Your incentives and offers do not result in added business Your business is stagnating or decreasing WHAT TO DO? YOU FIND OUT SURVEY
The Importance of Knowing your Public Possible issues: Your target(s) do not know your port / destination You pick the wrong target Your communication or add is not seen or read Your booth is not attractive or is located in the wrong spot Your sales representative does not inspire confident Your offer does not match the needs of your target Ask the right questions How is your port / destination being perceived? Is your material attractive? Are the contents matching the needs of the target? Is your sales person the right choice? What does your target wants? Can you deliver?
The Importance of Surveying your Public Ask the right questions: 1. Who is your customer? 2. What does he want? 3. What is he interest in? Internal perception exercise 1. Who are you? 2. How are you presenting your self? 3. How are you being perceived?
How can your campaign or efforts be sucessful? Survey / research your target(s) before approach What are the other destinations and regions doing? Learn from your “competition” Find ways to cooperate How do we measure success? Survey the passenger and cruise line
The Importance of Knowing your Public Chose and learn your audience Chose the appropriate approach Check what is the competition doing Find your strengths and weakness Fix and adjust Create “ambassadors” Make lots of friends and allies in the industry
4 Cruise Networks
Port Authorities Region Immigration And Customs Guide Tourism Associations Organizations Travel agents Bus, rest, museums, Airport, taxis, private Airlines sector & investors Port Tour Agents / Operators Ship chandlers DMC ’ s City Hall Chamber of Hotels Commerce
Relationship Destination – Cruise Line DESTINATION CRUISE LINE
Basics of Understanding
Cruise line expectations, Destination challenges Great variety of attractions, programs, products Continuous product development Quality of services – guides, transport, venues, etc Adequate port infrastructures Competitive pricing What makes it different from the other destinations BRAND - Marketability
5 Cruise Marketing Direction
Marketing layers Passenger (Consumer) Ports, Cities Stakeholders (Destination) Provincial, State Tourism Associations (Cruise Copenhagen Network, Barcelona) Regional Marketing (Cruise Europe, Cruise Norway) (Cruise Baltic, Med Cruise) Broad base sales & marketing Cruise lines, Travel Agent Community, (Media, World of CLIA, F-CCA, etc.)
Cruise tourism destination growth challenges 1. Competition - All destinations and regions are working toward the same goal! • Bring more ships and cruise visitors to their region and destinations 2. Creating the right platform for success Local, regional, national • 3. Reaching a wide potential market with a limited budget 4. Identifying the customer • Cruise line decision maker (business to business) • Cruise tourist (business to consumer) 5. Creating the ideal message or brand • Then.. Picking the right vehicles to reach the ideal audience
Marketing approach definitions Business to Business (B2B) Business to Consumer (B2C) (Cruise line decision maker) (Cruise visitor) Product driven Relationship driven Maximize the value of the transaction Maximize the value of the relationship Large target market Small, focused target market Single step buying process Multi-step buying process Brand identity essential Brand created by personal relationship o created by repetition & imagery Educational and awareness building Emotional buying decision Rational buying decision o based on status, desire, or o based on business value price Social Media Marketing by Debra Murphy
Approach Direct: Meetings, visits, intros, fairs, etc Indirect: Media, ads, conferences, news, service providers, cruise associations, other cruise lines, etc
Consumer motivators Pricing Itinerary / Destinations On Board Features Holiday Timing Embarkation Port / Proximity Safety Recommendations Friends and Family Meeting People
Seasonality French Riviera Ports, 2010 - 2013 Winter / Spring 160.000 Fall / Winter 140.000 120.000 100.000 80.000 60.000 40.000 20.000 0 Janv Fev Mars Avril Mai Juin Juil Août Sept Oct Nov Dec 2010 2011 2012 2013 Source: French Riviera Ports
Seasonality Canary Islands, 2011 - 2013 Winter / Spring Fall / Winter 2011 2012 Source: Port Authorities of Canary Islands
New ship introductions , total ships on order 37/111,115 berths (2014-2020) 2018 2019 2020 2015 2016 2017 RSSC 738 RCI 5,400 RCI 4,100 NCL 4,200 AIDA 3,250 Carnival 4,000 AIDA 3,250 Viking 944 Viking 944 HAL 2,660 NCL 4,200 P&O 3,611 Star 3,360 Carn. 4,000 NCL 4,200 TUI 2,500 Viking 944 Celebr. 2900 MSC Cr. 4,500 HAL 2,660 TUI 2,500 MSC TUI 2,500 TUI 2,500 RCI 4,100 MSC 4,140 NCL 4,200 Princess 3,600 Viking 944 RCI 5,400 4,500 Ponant 262 MSC Cr. 4,140 Seabourn 604 Seabourn 604 StarCr. 3,360 Celebri. 2,900 TUI 2,500 7 11 7 6 3 1 18,867 28,500 23,244 26,404 11,200 2,900
Aida Prima – built for all year round sailings from Hamburg
New vessel design
Technology advances
6 Best Practises
Examples and best practises Baltic Port Anne Sophie – French Riviera / Maria Cano – Palamos - Catherine Lafon / Sete Boutique ports
7 Interview
Interview with Costa Diadema Management Shorex Manager Alessandro Oddi Hotel Director Alessandro Marossa
8 Exercise
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