Summer in Finland 2004-2006 Summer Marketing Communications Strategy and Concept Thought Starter: It is the core strategy that must drive the offering, not the other way round. It is the Finnish Tourist Board´s right and responsibility to direct and guide the tourist offering. Through resourcing, financing and organisation-building. Only then, we can move towards a continious strategy-led development. Index 0. Conceptual framework 1. Objectives and measures 2. Mission 3. Target groups 4. Trends and implications 5. The Hot Spot (3C Analysis) and positioning 6. Brand definition and promise 7. Creative concept 8. Procedures and processes 9 Strategy and tactics 2004-2006 10. Media recommendations 11. Budget and resourcing 0. Conceptual framework Customer interface Core strategy Strategic resources Value chain Knowledge Mission Core competence Partners Implementation Product/Market area Core processes Networks Differentiation Tourist benefits Finnish Tourist Board Partner management Core strategy must have a direct impact on offering development and customer experience. Core strategy Mission 1. Objectives and measures Product/market area Differentiation We recommend a market-driven, goal-orientated approach: from objectives and goals to mission and differentiation criteria. 1.1. Brand-driven objectives To create a distinct Summer in Finland -brand - to help the development of an attractive summer destination - to guide a strategy-led summer offering development - to provide Finnish Tourist Board with a concrete strategy platform for the Finnish Summer -brand, communication and marketing activities - to fulfill given brand attribute objectives (research method defined in slide 6). 1.2. Sales-driven objectives To fulfill given numeric measures in volume growth, revenue growth and input/output ratio. Core strategy Mission 1. Objectives and measures Product/market area Differentiation 1.1.1. Brand-driven measures Awareness, preference and selected brand positive/negative attributes (defined in slide 34) are measured twice a year. Research method: We recommend to use a standard Omnibus study twice a year. It is applicable in all European countries and thus the results are comparable and will provide a broader view of the Finnish Summer’s total image. Omnibus study gives a sample of 1000 answerers per country. The research is based on qualitative personal interviews and can be conducted on specific, predetermined target groups. The study will provide us with a simple enough management tool to follow our marketing activities at branding level. Core strategy Mission 1. Objectives and measures Product/market area Differentiation 1.2. Sales-driven measures 1.2.1. Number of overnight stays registered 1.2.2. Number of total overnight stays 1.2.3. Revenue growth country by country 1.2.4. Input/output ratio Core strategy Mission 2. Mission Product/market area Differentiation For selected target groups, Summer in Finland is a number one summer destination alternative that offers a uniquely refreshing experience. Rather than just offering a physical travel destination, Summer in Finland is a space for a personal refreshment. Elements: Summer destination - Finland is a summer country. Alternative - a conscious choice, always a challenger. Refreshing - sun glittered water, the juxtaposition of pure nature and modern life, and space. Core strategy Mission 3. Target groups Product/market area Differentiation By target groups we mean those critical market segments around which we build our key value proposition. For the European strategy project, the challenge is to identify what is common rather than what is different, ie, to find a common positioning drivers that will adjust itself to different markets and segments. Core strategy Mission 3. Target groups Product/market area Differentiation Current core target groups for each country are defined in slides 12 and 13. These target groups are drawn from existing travel statistics. However, we feel that in order to expand the current tourist base and bring new nuances to Summer in Finland, new socio-demographic groups need to be included. 3.1. From the European perspective i. Existing base: 40+ yrs. couples who travel without children and are well educated, well-to-do seasoned travellers. ii. New base: 30-40 yrs. couples and individuals who travel without children, who are not interested in mass tourist destinations, but always look for the new and the different. iii. Families work on communicating family holidays and packages will be taken up and continued by local offices in co-operation with partners. Helsinki office is responsible for strategy related branding and activities. Local offices are responsible for tactical marketing, taking care of the current tourist base and for uncovering new trends, opportunities and segments. This approach will be rolled out in two pilot countries, Germany and Holland. Core strategy 3.2. Current core target groups by country Mission 3.2.1. Germany Product/market area Differentiation Well educated and higher up in the income bracket. Nordic-minded 40+ couples, who travel without children or are singles. Want to reserve space, time and activities for themselves and their loved ones. 3.2.2. Holland 35+ couples and friends who value togetherness, ie. young professionals and empty nesters. Are interested in nature but don´t want to be excluded from all the modern facilities including infrastructure, activities and social life. 3.2.3. Spain Seasoned grown-up travellers (35+) who travel without children and are attracted by our cool summer. 3.2.4. France Grown-ups (40+) who travel without children and look for individually packaged holidays bringing together unspoiled nature and modern culture. 3.2.5. Italy 25-40 yrs. who travel without children and look for individually package holidays based on diverse destinations and experiences. 3.2.6. Switzerland 40+ couples who look for active, fun and individual holidays in nature. Core strategy 3.2. Current core target groups by country Mission Product/market area 3.2.7. Russia Differentiation Families with children who value togetherness. Also groups consisting of several families. 3.2.8. Norway Nordic nuclear family who looks for the family-orientated fun. 3.2.9. Sweden Everyone who wishes to escape the everyday. Finland´s image, though, needs to be udated and upgraded. Core strategy 3.3. Current core target groups by country / grouping Mission Product/market area Differentiation Differentiating driver for the European strategy project as a whole The juxtaposition of pure nature and modern life Germany, Switzerland, France, Spain, Holland, Italy Finland as a fun, family destination Norway, Russia Finland reinvented Sweden Key markets in blue Core strategy 4. Trends and implications Mission Product/market area Differentiation - There will be a travel industry recovery, but a long and slow one. It means that the industry overall growth will not provide us with any extra leverage or automatic growth. Some will win, some will lose out. - The price-conscious traveller. Obtaining good value for the price, not necessarily the lowest price, is a major objective for travellers. This has lead to a continued interest in all-inclusive packages. - Online travel. An ever increasing use of the Internet for researching and booking holidays. During the last 3 years, the number of travellers using the internet to obtain information or to check prices and schedules, has grown 395%. However, family and friends are still the number one information source for travel. Sources: FCB Info Center and The Interpublic Center for Market Intelligence, FCB global ”Trust” -study Core strategy 4. Trends and implications Mission Product/market area Differentiation - A dramatically shorter booking window. One of the techniques consumers are using to try to get the best value for their euro is waiting until the last minute to plan and book. The following is a typical example of a holiday booking window: less than 2 weeks -10%, 2-4 weeks - 35%, 5-6 weeks -25%, 7-8 weeks -19% and more than 2 months -11%. - Safety. Though not having a major impact on whether or not to travel, safety concerns are affecting the choice of destination and mode of transportation. For instance, cruises are gaining in popularity. In the recent global FCB study ”The Truth about Trust” Finland was ranked along the Nordic countries as ”the most trustworthy region”. - Niche markets. Packages tailored to specific demographic markets, such as seniors (the fastest growing individual group), gays, singles and specific activities such as music, cooking etc. are becoming more popular, ie., travel marketing is becoming lifestyle- instead of destination-driven. Sources: FCB Info Center and The Interpublic Center for Market Intelligence, FCB global ”Trust” -study Core strategy 4. Trends and implications Mission Product/market area Differentiation -”Destress holidays”. Wellness and Spa holidays are particularly popular with Echo Boomers and Gen-Xers. -Of the 2 main groups in the airline industry (low-cost or discount airlines and high-cost or hub-and- spoke carriers), will both continue to battle each other and find new ways to co-exist. In part, this may lead to an overhaul of the current system as major airlines are reassessing the usefulness of hubs. However, charter flights, brand extensions and strong consumer trust will provide opportunities for the established carriers. - With a consumer emphasis on value and service, many hotels are changing their positioning from a status symbol to a comfortable sanctuary, from ultra-luxe to affordable chic. Sources: FCB Info Center and The Interpublic Center for Market Intelligence, FCB global ”Trust” -study Core strategy 4. Trends and implications Mission Product/market area Differentiation - The cruise industry is starting to offer more freedom in dining and entertaintment options. - Shift from long haul to short haul and domestic destinations - Travel marketing budgets were down in 2001 and declined further in 2002 in order to boost the bottom line. Image advertising has been reduced, and in general, the industry is looking for less expensive marketing tactics, such as utilizing their database of e-mail addresses to reach consumers with special offers. Price loyalty instead of brand loyalty is a real threat. Now we have to choose which road to travel. Sources: FCB Info Center and The Interpublic Center for Market Intelligence, FCB global ”Trust” -study Core strategy 4. Trends and implications: topline for Finland Mission Product/market area Differentiation - The message ”more than you think at a substantially lower price you´d expect” must get through at the correct stage of the buying process. - Package holiday offering and its variety must be strengthened. ”Individual package holidays” are a real opportunity. - Consumers often seem to think that Finland is a far-away island. Thus, accessability must be stressed and not taken for granted. - Online services must be developed further from the end-consumer point of view including lifestyle options. The quantity and quality of information must be increased. Core strategy 4. Trends and implications: topline for Finland Mission Product/market area Differentiation - Safety may get Finland on the short-list, yet it does not provide us with a critical competitive edge. Finland is already an established ”safe and secure” destination. Therefore, we do not need to direct any more resources to communicate this given feature. - Seniors are a mass. Are there any identifiable lifestyle trends that can be used to enhance tactical marketing? - Finland is not the obvious or the easiest choice. It´s more of a choice than France, UK or even Sweden. -Finland is unknown. For awareness, strong image building is still the best medium. However, currently we seem to suffer from information anxiety. Strategic brand building is not about including each and every aspect for every possible segment. Rather, it is about distilliation process, where we have to separate the strategic from the tactical. Strategic resources 4. Trends and implications Core competences Core processes Industry / partner messages: Customer Insight Competitive Insight According to trade research, the following are the main industry/partner concerns regarding travel to Finland: 1. Brand-driven awareness building needed. Competitive 2. Lack of highlights. Finland needs its own Statue of Liberty, Eiffel Tower etc. Or it needs to be invented. 3. Service level (hotels etc.) too average. No luxury hotels, not enough small family / budgets hotels or “Hotels de Charme”. 4. Accessibility cannot be taken for granted. 5. Individuality for the masses. Although Finland is accessible for pretty much everyone, at image level we need to retain “the feeling of individuality”. Core strategy 5. Hot Spot (3C Analysis) and positioning Identifies the critical competitive edge (Hot Spot) for Summer in Finland that Mission Product/market area • is relevant to the consumer and different customer groups Differentiation • is the client´s / brand´s strength (the Finnish Summer) • is the competition’s weakness The Hot Spot and brand positioning Customer C Insight Client Com petitive Insight Insight Special Tools Client Audit: Helps the client to define the core business, brands, goals and processes. With the help of revealing face-to-face interviews or group sessions . Mind & Mood: Consumer and customer attitudes, buying patterns, brands and advertising. Focus groups and innovative real-life usage studies. Competitive Space: Identification of competitor´s future behavior. Special workshop formula. (Chess) Core strategy 5.1. Customer insight Mission Product/market area Differentiation The response to spending a holiday, not specifically related to Finland, but rather the emotional drivers behind it (desicions, satisfaction etc.): - Becoming refreshed and gaining strength for the times to come - Freeing oneself from the daily chords - Discovering the new and the different Competitive - Giving time to oneself and the loved ones Insight - Leaving oneself behind in the normal daily life and becoming new, even reborn INSIGHT: RECHARGE YOURSELF. Customer Insight Client Core strategy 5.2. Client Insight Mission Product/market area Differentiation The underdeveloped strength behind Summer in Finland The total offering consists of several layers: - Geography-driven (Water, Lakelands, Helsinki/Turku, West Coast and Lappland) - Activity-driven (Tours, cottages/holiday homes, city breaks, nature activities) - Lifestyle preference-driven (Urban and Nature, Space). Lifestyle...........ei oma tuote Client Competitive Insight However, what is unique is that one single holiday can include all this, i.e. one can enjoy nature without leaving the modern facilities. INSIGHT: THE JUXTAPOSITION OF PURE NATURE AND MODERN LIFE. Customer Insight Client Insight Consumer Relevance Core strategy 5.2. Client Insight In this insight, the traditional meets the new. Mission Unspoiled Nature Product/market area Differentiation The juxtaposition of pure nature and modern western life Client Consumer Action Competitive Insight Modern Urban people Traditional Please note that in specific areas / product offerings consumer activity can be traditional. Core strategy 5.3. Competitive insight 5.3.1. A perceptual map showing the competitive landscape and country drivers. Mission Product/market area Differentiation Fringe Innovator Competitor Future Competitor Key Competitor Summer in Finland #2 Competitor Upstart Core strategy 5.3. Competitive insight 5.3.2. A perceptual map showing the competitive landscape and country drivers. Mission Product/market area Differentiation Scotland, Canada Ireland Russia Sweden Summer in Finland Norway Baltic States, Eastern Europe Core strategy 5.3. Competitive insight 5.3.3. A perceptual map showing the competitive landscape and country drivers. Mission Product/market area History, Differentiation From one extreme landscape and to another tradition Scotland, Vastness and Family > Canada Ireland Slavic culture Space for Minds Russia (Freedom) Sweden Summer in Finland Activities Norway and sceneries Baltic States, Eastern Europe Price and easy access Core strategy 5.3. Competitive insight 5.3.4. Identifying the competition’s weakness - Achilles’ Heel Mission Product/market area Differentiation Turning Customer Insight Competitive Accessibility themselves Insight into museums Distrusted Scotland, Very little Canada Ireland Client weaknesses, Russia Insight Competitive but lacks edge Sweden Summer in Finland Needs Norway “a fit traveller” Baltic States, Eastern Europe Price difference will erode Core strategy 5.3. Competitive insight Mission 5.3.5. Identifying the competition’s weakness - Achilles’ Heel Product/market area Differentiation The Finnish Summer is the unknown kid on the block. All competition has very strong images attached to it ranging from the delightfully positive to the extreme negative. Thus, we have much more freedom in defining and moulding the consumer expectations. Client Competitive INSIGHT: TOO STRONG IMAGE. Customer Insight Competitive Insight Core strategy 5.4. Building the hot spot and brand positioning Mission Product/market area Differentiation Customer Personal energy Insight Nature is known, we need to add Recharge Client a touch of modernity yourself Competitive Room for new thinking as competition fails to renew their image The Too strong juxtaposition of image pure nature and modern life Core strategy 5.4. Building the hot spot and brand positioning Our European strategy positioning statement is: Mission Product/market area Differentiation Customer Insight Summer in Finland. A refreshing Journey. Competitive Insight 1. The Finnish Summer is the perfect opportunity for oneself to get away from the daily routine. One gains energy, strength and vitality. These elements are sunny, warm and light. Competitive 2. The Finnish Summer offers a unique juxtaposition of pure nature and modern life. These two can always be combined and they can be experienced together at the same time. A state of mind and a concrete activity. 3. Like travelling itself, the Finnish Summer is a multifaced journey. From one experience to another, from one emotion to another. In our representation, it is the sun glittered water that acts as a medium for this journey. Sun glittered water refreshes and moves us onwards. 4. The concept of a refreshing journey easily houses travel partner offers and campaigns. The journey into the Finnish Summer always starts with a travel partner. Core strategy 5.4. Building the hot spot and brand positioning Mission From positioning we draw the product offering: Product/market area Differentiation Customer Insight Competitive Insight Refreshing Journey Positioning Competitive Sun glittered water Vehicle for positioning Geography-driven Product-driven Lifestyle-driven Product segmentation Water, Lakelands Tours Urban and Nature Helsinki/Turku Cottages/holiday homes Space West Coast City breaks and the archipelago Nature activities Lappland Core strategy 6. Brand definition and promise Mission Product/market area Brand positioning Differentiation Customer Insight Competitive Summer in Finland. A refreshing Journey. Insight Brand personality (personal qualities and characteristics) Modern, Nordic and accessible. Naturally beautiful. Secure. Competitive Brand attitude (view of the world) Grown-up but not conservative. Individual. Brand Tone & Manner (the way it addresses others) Confident and fresh. Friendly as the Finns themselves. Core strategy 6. Brand definition and promise Mission Product/market area Brand attributes (to be measured twice a year) Differentiation Customer Insight Positive attributes, i.e. brand´s ”must haves” Competitive Insight Refreshing Versatile Modern Warm Naturally beautiful Competitive Negative attributes, i.e. brand´s ”must nots” Cold Distant Expensive Unapproachable Uninteresting In our research, we will follow the development of these attributes: the objective is to strengthen the positive ones and reduce the weight of the negative ones. We aim to measure those attributes that we affect through communication such as advertising (promise). Attributes that are affected by the actual holiday experience (delivery) are measured elsewhere. Core strategy 6. Brand definition and promise Mission Product/market area Brand promise and slogan Differentiation Customer Insight Competitive Insight Summer in Finland. A refreshing Journey. Competitive Finland is a challenger, and often unknown. But for the seasoned travellers and for those who look for the new and the different, there is always one more trip to make. One more place to experience or to relive. For those who have been here before it communicates further reasons for a revisit. Core strategy 7. Creative Concept Mission 7.1. Emotion Product/market area Differentiation Customer Becoming somebody new and refreshed. Experiencing something new and unexpected. Insight Competitive Insight Often sharing that feeling with a loved one. 7.2. Rational The Finnish Summer offers a unique opportunity to enjoy beautiful nature in conjunction with modern urban facilities. Not only as a passive bystander, but as an active Competitive participant. 7.3. Communications concept At branding level both informative and suggestive. The offering includes both the pure nature and modern city life with all its diverse possibilities. We want to involve the consumer with an enchanting story rather than just listing different sights and activities. 7.4. Role of advertising - enhance brand awareness and preference for the Finnish Summer - clearly communicate the offering - support partners to sell the Finnish Summer - share information on the diverse possibilities the Finnish Summer offers - help target groups to receive relevant information at the right time during the buying process Core strategy 7. Creative Concept / Elements Mission Product/market area Differentiation Customer Insight Competitive Insight 1. Sun glittered water Competitive Warm and moving water acts as a story carrier and is always present. As snow is ownable for the Finnish Winter, sun glittered water is for the Finnish Summer. Water refreshes and renews the traveller. Core strategy 7. Creative Concept / Elements Mission Product/market area Differentiation Customer Insight Competitive Insight Competitive 2. The juxtaposition of pure nature and modern life These two should always be combined and experienced together at the same time. Water ties them together. Core strategy 7. Creative Concept / Elements Mission Product/market area Differentiation Customer Insight Competitive Insight 3. Active involvement Water is the carrying element. However, it is Competitive the actively involved human being that directs the events and the world around him. Core strategy 7. Creative Concept / Element summary Mission Product/market area Differentiation Customer Competitive Insight Insight Active human being Nature Sun glittered water Urban Strategic resources 8. Procedures and processes Core competences Core processes 8.1. The Finnish Tourist Board needs to choose its way of adding value, ie. to select a marketing model. Horizontal axis: Choice nr 1. Transactional Building relationships Unbranded Branded Price Added-Value Fragmented Holistic Tactical Strategic / Long-term Strategic resources 8. Procedures and processes Core competences Core processes A more defined portfolio Product depth More integration expected A broader portfolio Product category breadth Less product integration needed Choice nr. 2 Vertical axis: Strategic resources 8. Procedures and processes Core competences Core processes A more defined portfolio Product depth More integration expected Our recommendation The Finnish Summer Building relationships Branded Added-Value Holistic Strategic / Long-term Strategic resources 8. Procedures and processes Core competences Core processes 8.2. The organisation to support and execute the chosen marketing model In order to achieve - a more defined portfolio offering - greater product depth - more integration between products and centrally coordinated, strategy-led mode of operations, we propose a renewed way to organize the Finnish Summer project. Strategic resources 8. Procedures and processes Core competences Core processes 8.2. The organisation to support and execute the chosen marketing model Strategic Steering Group Strategic marketing and Chief Communications strategy-led offering Finnish Tourist Board representative Officer development. Only strategy- Key Market representatives, Area representatives Finland, Summer, W inter driven/drawn projects get Business and Trade representatives, Marketing Partner representative support and approval. Area Group Finnish Tourist Board representative Industry and Trade representation Tactical marketing and offering Municipal and other civic representation implementation Local FTB Offices Tactical marketing and sales, local partner training Strategic resources 8. Procedures and processes Core competences Core processes 8.2. The organisation to support and execute the chosen marketing model Strategic Steering Group Chief Communications Brand guidelines, Finnish Tourist Board representative Officer television, strategic print, Key Market representatives, Area representatives Finland, Summer, W inter general brochure and Business and Trade representatives, Marketing Partner representative internet Area Group Finnish Tourist Board representative Industry and Trade representation Municipal and other civic representation Local FTB Offices CRM, direct marketing and partner/offer marketing Strategic resources 9. Strategy and Tactics 2004 - 2006 Core competences 2004 Core processes Brand guidelines implementation - Visual and copy guidelines for different medias and channels Summer general brochure Brand positioning film (Germany, Holland): Pilot project in two selected and consumer-researched markets. The film is both general and focused: General in the sense that aims to promote Summer in Finland as a whole. Focused in the sense that it concentrates on the specific brand attributes. Has a direct link to sales and creates demand. Internet strategy - Consumer-centric site with easy access to information including lifestyle options Pan-European Internet implementation - User interface and experience (incl. how to communicate the offering) - News letters PR packaging Special projects: Image upgrade in Sweden Local partner/offer marketing We recommend all tactical efforts to be directly offer-based and focused on few selected partners. Look & feel should follow the brand guidelines while preferably only one partner should be selected for each single effort. We feel that general material with multiple sponsors does not deliver either brand promise nor direct sales. Partner training Strategic resources Core competences Core processes 9. Strategy and Tactics 2004 - 2006 2005-2006 Summer general brochure Brand positioning film (selected countries) Strategic print (selected countries) Internet development PR and lifestyle packaging Local partner/offer marketing We recommend all tactical efforts to be directly offer-based and focused on few selected partners. Look & feel should follow the brand guidelines while preferably only one partner should be selected for each single effort. We feel that material with multiple sponsors does not deliver either brand promise nor direct sales. Partner training Strategic resources Core competences Core processes 10. Media recommendations Strategic Television Strategic Print Internet Tactical Direct Marketing Tactical Print (offer/partner marketing) Internet - offer specific We recommend that budget-wise an equal amount of resources is spent on both strategic and tactical print. Thus, while strategic will receive enoug visibility to produce impact, the tactical will be predominant in terms of publication dates. Strategic resources Core competences Core processes 11. Budget and resourcing Fact 1. Total marketing budget for 2004-2006 is approx. 8 000 000 euros Fact 2. For an un-established brand like the Finnish Summer, the recommended media budget for a single television campaign in the German market is approx. 600 000 euros. To achieve any brand awareness or preference development, we should run the campaign at least three times over the given period. Fact 3. Within the given budget limits, no alternative for resource concentration exists. Either we have to concentrate on selected key markets or on selected marketing actions across all the markets. Strategic resources Core competences Core processes 11. Budget and resourcing We recommend directing resources: Strategic marketing in key markets only (Germany, Holland, Russia and Sweden). Tactical and partner/offer marketing in all markets as enabled by partner finance.