Port Marketing Session Luis de Carvalho February 24, 2015 Agenda - - PowerPoint PPT Presentation

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

 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

Key questions

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

Itinerary Planning Retail Air department Finance control Hotel Operations Environment Dept. Business development Land programs/ Shorex Marine department Senior Management Marketing & Sales Purchasing

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 How do we measure success? Survey the passenger and cruise line What are the other destinations and regions doing? Learn from your “competition” Find ways to cooperate

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

City Hall Chamber of Commerce Tour Operators DMC’s Port Agents / Ship chandlers Bus, rest, museums, taxis, private sector & investors Guide Associations Region Hotels Tourism Organizations Travel agents Port Authorities Immigration And Customs Airport, Airlines

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

Broad base sales & marketing Cruise lines, Travel Agent Community, (Media, World of CLIA, F-CCA, etc.) Regional Marketing (Cruise Europe, Cruise Norway) (Cruise Baltic, Med Cruise) Provincial, State Tourism Associations (Cruise Copenhagen Network, Barcelona) Ports, Cities Stakeholders (Destination) Passenger (Consumer)

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) (Cruise line decision maker) Business to Consumer (B2C) (Cruise visitor)  Relationship driven  Maximize the value of the relationship  Small, focused target market  Multi-step buying process  Brand created by personal relationship  Educational and awareness building  Rational buying decision

• based on business value

 Product driven  Maximize the value of the transaction  Large target market  Single step buying process  Brand identity essential

• created by repetition & imagery

 Emotional buying decision

• based on status, desire, or

price

Social Media Marketing by Debra Murphy

Approach

 Indirect:

 Media, ads, conferences, news, service providers, cruise associations, other cruise lines, etc

 Direct:

 Meetings, visits, intros, fairs, 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

20.000 40.000 60.000 80.000 100.000 120.000 140.000 160.000 Janv Fev Mars Avril Mai Juin Juil Août Sept Oct Nov Dec 2010 2011 2012 2013

Winter / Spring Fall / Winter

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)

NCL 4,200 Viking 944 Star 3,360 MSC Cr. 4,500 TUI 2,500 Princess 3,600 MSC Cr. 4,140 RSSC 738 RCI 5,400 AIDA 3,250 Viking 944

• Carn. 4,000

HAL 2,660 RCI 4,100 Viking 944 Seabourn 604

• StarCr. 3,360

TUI 2,500

2015 2016 2017 7

18,867

11

28,500

7

23,244

Carnival 4,000 HAL 2,660 NCL 4,200 TUI 2,500 MSC 4,140 RCI 5,400 Seabourn 604

• Celebri. 2,900

2018 6

26,404

RCI 4,100 AIDA 3,250 P&O 3,611 Viking 944 TUI 2,500 NCL 4,200 Ponant 262

2019

NCL 4,200 TUI 2,500 MSC 4,500

3

11,200

• Celebr. 2900

2020 1

2,900

Aida Prima – built for all year round sailings from Hamburg

New vessel design

Technology advances

6

Best Practises

 Baltic Port  Anne Sophie – French Riviera / Maria Cano – Palamos - Catherine Lafon / Sete  Boutique ports

Examples and best practises

7

Interview

 Shorex Manager Alessandro Oddi  Hotel Director Alessandro Marossa

Interview with Costa Diadema Management

8

Exercise

Introduction of the exercise

Task: do a marketing plan for the ports of Palamos, Lisbon and Heraklion  30 minutes  Members divided in groups of 5 (6 groups in total)  One port to be assigned to 2 groups. 3 ports to 6 groups  To consider:

 The material received from the ports  The presentations so far  The interview with the Costa team  Position of each port in the “marketing” scale  Your 5 priorities

Exercise execution

 To take in consideration:

 What is your current value as port and destination?  What is your port capacity?  Who is your main client(s)?  Who do you want to attract?

 Main requisites when presenting the marketing plan:

1. Your goal – long term aim 2. Your objective(s) – specific and concrete 3. What is (are) your priority(ies) 4. What are the plan elements 5. What is the expected outcome

Exercise Delivery

 Presentation of the results

 Each group describes its strategy (5 minutes)  Followed by discussion and Q&A from the other members

 Conclusions:

 Identify the 5 or more top priorities that are common to all the promotion strategies and should be used as guidelines in the future

 Reflection:

 Each member looks at what he/she wrote as top priorities before joining the ship and self-examines its own conclusions  The floor is open for members to share their wins

Conclusion

 What members rated most highly when preparing a marketing plan:

 Know your customer  Know your limitations  Define your product  Use your “stars” to your advantage  Have realistic goals  Use your internal and external network in the process  The importance of benchmarking

Med Cruise Development Course Port Marketing Session THANK YOU