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COMMENTARY Strategic
branding of
Strategic branding of destinations: destinations
a framework
611
Melodena Stephens Balakrishnan
University of Wollongong in Dubai, Dubai, United Arab Emirates
Abstract
Purpose – Travel and tourism is the second largest global industry with daily international
revenues of approximately US$2 billion, and investments of 12 percent of world GDP. Though this
is a highly competitive industry, there is a paucity of academic research on destination branding.
This paper aims to present a branding framework for designing successful destination strategies.
This exploratory study seeks to determine key factors that affect the strategic branding of
destinations.
Design/methodology/approach – Similar fields like place marketing, destination marketing,
services, product and corporate branding were reviewed along with destination case studies. Based on
this review and its extrapolation to the “destination context”, a framework for strategic branding of
destinations was formulated.
Findings – Successful strategic branding of destinations is dependent on several inter-related
components, which are discussed. The paper highlights key issues in destination branding and
provides a platform for future research.
Originality/value – The value of the paper is high as it provides a practical framework for
governing bodies to consider when investing time, money and effort when creating a global
destination.
Keywords Tourism, Services marketing, Brand image, Travel
Paper type Conceptual paper
The research objective of this paper was to develop a branding strategy framework for
destinations. Since destination branding is complex and existing literature is largely
limited to image and logo design (Blain et al., 2005), there was a need to re-approach this
topic. The conceptualization of the model was done by first looking at existing literature
on services, product, product portfolio and corporate branding strategies. Similarities
between existing branding theories and the destination context were found using a wide
variety of published case studies on destination branding to identify key components.
These topics were further researched to find relationships between components.
An examination of various destination case studies and academic articles shows vision
to be motivated by six key drivers, which can be inter-related (see Table II):
(1) Economic considerations. This ranges from economic prosperity of individual
citizens, to businesses or the overall destination prosperity itself (Wong et al.,
2006; Rangan et al., 2006; Hankinson, 2005).
(2) Services. The T&T industry has a strong dependency on services which can be
personal, consumer, business and government (Wong et al., 2006; McDougall
and Levesque, 2000).
(3) Transit Hub. Infrastructure investments are required to become a transit hub
(Hankinson, 2004), but it results in greater visibility, revenues and investment
opportunities through the transiting of goods, information and people
(Balakrishnan, 2008).
(4) Retail. Retail focuses on both domestic and international tourists (Wong et al.,
2006; Rangan et al., 2006). Shopping is becoming the number 1 leisure activity
(Euromonitor, 2007) with T&T accounting for 12 percent of global exports as
expenditure by visitors on goods and services (WTTC, 2007). A 2006 Travel
Industry Association study shows that leisure travelers prefer shopping (53
percent) to sightseeing (48 percent) (Vora, 2007).
EJM
Vision drivers Subsets Author
43,5/6
Economic GDP/revenues Balakrishnan, 2008; Wong et al., 2006; IMD,
2005; Rangan et al., 2006; Hankinson, 2004
Business/FDI Balakrishnan, 2008; Hankinson, 2005; IMD,
2005; Trueman et al., 2004
616 Infrastructure investments; Balakrishnan, 2008; Hankinson, 2005; IMD,
globalization and networking 2005; Taylor, 2005; Trueman et al., 2004;
Chen and Gursoy, 2001
Welfare, security, human capital, Balakrishnan, 2008; Wong et al., 2006;
employment Rangan et al., 2006; Trueman et al., 2004;
WTTC, 2003; Chen and Gursoy, 2001
Services Government – policies; operation WTTC, 2007; Rangan et al., 2006; IMD, 2005;
Trueman et al., 2004; McDougall and
Levesque, 2000
Business opportunities Future Brands, 2006; Rangan et al., 2006;
IMD, 2005; McDougall and Levesque, 2000
Consumer/personal – intellectual, Rangan et al., 2006; IMD, 2005; McDougall
social etc. and Levesque, 2000
Transit Hub Passengers and cargo Hankinson, 2004; Chan, 2000; Siddiqi, 1999
Immigration Shikoh, 2006; Bontis, 2004
Retail Tourists (domestic, international) Wong et al., 2006; Rangan et al., 2006; Davis,
2006; Woodside and Dubelaar, 2002
Expatriate King, 1999
Locals/national citizens Balakrishnan, 2008; Davis, 2006
Real estate Zahid, 2006
Trade Logistics Hankinson, 2005; Siddiqi, 1999
Transportation Balakrishnan, 2008
Table II. Tourism Destination promotion Balakrishnan, 2008; Eraqi, 2006; Rangan
Drivers of strategic vision (internal/external) et al., 2006; WTTC, 2003; González and
for destination branding Bello, 2002; Gamage and King, 1999
(5) Trade. Trade is linked to economic growth (Johansson and Nilsson, 1997). Over
1/5th of world GDP in 2006 (US$12 trillion) is derived from trade. (World Bank,
2007a, b). This has led to government investments in logistics (Hankinson, 2005),
transportation and global policies (Balakrishnan, 2008) and free trade zones,
which globally number more than 600 (Papadopoulos and Malhotra, 2007).
(6) Tourism. This is the second largest global industry after agriculture,
contributing 10.3 percent to global GDP and as much as 80 percent of some
nation’s economy (WTTC, 2007; Eraqi, 2006).
Product Author
History heritage Anholt, 2006; Hankinson, 2004; 2005; Law et al., 2004;
Leisen, 2001
Culture, ambience and experience, entertainment, Anholt, 2006; Hankinson, 2004; 2005; Law et al., 2004;
dining González and Bello, 2002; Leisen, 2001
Business tourism Anholt, 2006; Hankinson, 2004; 2005; IMD, 2005
Main economic activity, economic development and Hankinson, 2004; 2005; IMD, 2005
industrial environment
External profile Anholt, 2006; Hankinson, 2004, 2005; Rangan et al.,
2006
Accessibility Hankinson, 2004, 2005
Affordability; pricing Future Brands, 2006; Anholt, 2006
People characteristics Anholt, 2006; Hankinson, 2004, 2005
Social/quality of life/welfare IMD, 2005; Trueman et al., 2004
International reputation Anholt, 2006; Hankinson, 2004, 2005; Spithoven,
2000
Health Tan, 2007; González and Bello, 2002; WTTC, 2003
Education Marklein, 2006; Anholt, 2006
Visiting family and friends Law et al., 2004; King, 1999
Retail, local handicrafts Law et al., 2004; González and Bello, 2002; Leisen,
2001; Warnaby and Davies, 1997
Rest and recreation González and Bello, 2002; Leisen, 2001
Sports Fan, 2006; Hankinson, 2004; Woodside et al., 2002;
González and Bello, 2002
Special occasions; events Hunter, 2006
Religious tourism Deloitte HB, 2006 Table III.
Experience, and exploration, natural wonders, Future Brands, 2006; Hankinson, 2004; González and Destination product
climate Bello, 2002; Leisen, 2001; Law et al., 2004 taxonomy
EJM offer). Products require strategic location (Siddiqi, 1999); investments in infrastructure
43,5/6 (airlines, ports, roads, technology); exploitation of natural resources (like safe port,
access to oil) and adaptation of ideas like open skies policies and other economic
policies (tax free, economic free zones and credit facilities) (Balakrishnan, 2008).
Destinations that diversify their portfolio reduce their risk; increase their target base
and encourage loyalty (see Rangan et al., 2006). More destinations are looking at
618 combinations of business based or vacation based portfolios (Hankinson, 2005, 2004).
Places are re-inventing themselves by moving away from historical branding. Some
successful re-branding strategies for destinations are recreational, sports, culture and
eco-tourism (Ibrahim and Gill, 2005).
A brand portfolio strategy is one where “the goals are to create synergy, leverage
and clarity within the portfolio and relevant, differentiated, and energized brands . . .
[and this] includes brands external to the organization whose link to internal brands
are actively managed” (Aaker, 2004, pp. 13, 16). The value, competitive position, and
ability to increase purchase intension of a brand can be leveraged by using any
ingredient brand of greater value through the halo effect and external validation
(McCarthy and Norris, 1999; Javalgi and Moberg, 1997). Since brand equity is linked to
association with global consumer culture (Aaker, 2004), a destination’s association
with global brands can increase comfort level and reduce dissonance for a tourist.
Destinations are perceived differently by different segments (Leisen, 2001).
Positioning improves when the destination image is matched with the customer
psychographic profile (Yankelovich and Meer, 2006; Ronkainen and Woodside, 1978).
It can also be matched with lifestyle variables (González and Bello, 2002); activities and
experiences (Woodside and Dubelaar, 2002) and usage occasions (Grace and O’Cass,
2003; de Chernatony and Segal-Horn, 2003). There must be consistency of brand image
and attitude with the customer perception of themselves and the other users (Grace and
O’Cass, 2003; de Chernatony and Segal-Horn, 2003). Focused marketing for specific
segments increases the chances of success in a crowded marketplace; for example the
“Nawart Masr – You Light Up Egypt” campaign focused on Arabs (Deloitte HB, 2006).
By matching product portfolios to a few dominant target segments (Woodside and
Dubelaar, 2002), reach, effective spend and loyalty can be increased.
Figure 1.
Destination band
components
EJM
Authors
43,5/6
Tangible; visual; functional elements
Name, logo, trade mark, graphics Rowley, 2004; de Chernatony and Riley, 1998
Symbols Moorthi, 2002
Slogan, adjectives Pawitra and Tan, 2003; Moorthi, 2002
620 Colors White, 2005
Service delivery process/servicescape Robledo, 2001; Warnaby and Davies, 1997
Postcards, pictures, movies, ads – images; Trueman et al., 2004; O’Cass and Grace, 2003;
information Woodside et al., 2002; Human, 1999
Buildings architecture, facilities, places of interest, Correira et al., 2007; Hankinson, 2004; 2005;
scenery; attributes O’Cass and Grace, 2003; Pawitra and Tan, 2003;
Leisen, 2001; Warnaby and Davies, 1997
Souvenirs, shopping items Leisen, 2001; Warnaby and Davies, 1997; Gordon,
1986
Heroes and heroines Reichheld, 2001
Functionality, Hankinson, 2005; Warnaby and Davies, 1997;
Pearce, 1991
Ingredient/associated brands, sponsorships, Pawitra and Tan, 2003; Moorthi, 2002; Woodside
events et al., 2002.
Intangible and symbolic elements
Perceptions of image Hosany et al., 2007; Runyan and Huddleston, 2006;
Hankinson, 2004; 2005; Knox, 2004; Pawitra and
Tan, 2003; Palumbo and Herbig, 2000
Service satisfaction McDougall and Levesque, 2000; Warnaby and
Davies, 1997
Personality of place, culture, heritage, ambience Hosany et al., 2007; Runyan and Huddleston, 2006;
Hankinson, 2004; Pawitra and Tan, 2003; Moorthi,
2002; Leisen, 2001; Chen and Gursoy, 2001
Relationship, bond, familiarity, interaction and Kayaman and Arasli, 2007; Bang et al., 2005;
empathy Moorthi, 2002
Relevance, representational; self-image Jamal and Goode, 2001; Sirgy et al., 1997
congruence
Personal and social values, self-personality; González and Bello, 2002; Jamal and Goode, 2001;
lifestyle, self-expression Davis, 2002
Needs (physiological; safety; relationship; Chen and Gursoy, 2001; Pearce, 1991 – see travel
self-esteem and fulfillment needs) career ladder
Emotions/mood/senses Wood, 2007; Roberts, 2005; O’Cass and Grace,
2003; Davis, 2002; Jamal and Goode, 2001;
Pritchard and Morgan, 1998
Legends Reichheld, 2001
Image/roles of people associated with service Ball et al., 2006; Hankinson, 2005; Grace and
delivery or destination O’Cass, 2003; Katzenbach, 2003; Moorthi, 2002;
O’Cass and Grace, 2003; Pawitra and Tan, 2003;
Warnaby and Davies, 1997
Occasion association, experiences, ambience Hankinson, 2005; O’Cass and Grace, 2004; 2003;
Chen and Gursoy, 2001; Schreuer, 2000; de
Chernatony and Riley, 1998
Perception of others perception (WOM, public Hankinson, 2004; Wangenheim and Bayón, 2004;
relations, publicity) O’Cass and Grace, 2003; Bansal and Voyer, 2000
Value/expense perceptions Cunningham et al., 2006; Hankinson, 2005;
Table IV. Pawitra and Tan, 2003
Branding components Association with other brands Rangan et al., 2006
Strategic
Initial destination selection Post-destination selection (activity
(information, selection) planning, experience generation) Trust (loyalty) branding of
Family and friend
destinations
recommendations – 29% Web – 66% Recommendations (78%)
Web – 19% Travel agents – 13% Newspapers (63%)
TV/movie – 13% Family/friend recommendations – 9% Online opinions (61%) 621
Newspaper/magazine – 10% Brand web sites (60%)
Special deals – 9% TV, magazines (56%)
Travel agents – 6% Radio (54%)
Brand sponsorship, e-mails
Advertisements – 4% signed up for (49%)
Ads before movies (38%)
Search engine ads (34%)
Online banner ads (26%)
Text ads on mobiles (18%)
Other forms of communication PR, Education, Movies, Documentaries, Travelogues, Corporate and
Brand sponsorships and associations, Event Sponsorships, Books;
Architecture, Art and Landscaping (street furniture, objects,
equipment, feasibilities), infrastructure development; virtual
communities
Table V.
Source: Balakrishnan (2008); AC Neilson (2007); Correira et al. (2007); Cova and Pace (2006); Future Communication mix for
Brands (2006); Rangan et al. (2006); Hankinson (2004); Woodside et al. (2002) destination objectives
word of mouth (Wangenheim and Bayón, 2004; Grace and O’Cass, 2002; Ennew et al.,
2000; Gremler and Brown, 1999). Traveling for social reasons is impacted by WOM
because normative influences/peers have a greater perceived reliability and this is also
the case for business travel where customers are looking for expert sources with
similarities to them (Wangenheim and Bayón, 2004). An AC Neilson survey on internet
users from 47 markets found 78 percent of consumers felt recommendations from other
consumers were most trustworthy (Nielsen Media, 2007). Another response
management strategy is using souvenirs, which are conversations starters.
Destinations must manage their licensing strategy to maintain standardization and
correct representation of the brand (Rangan et al., 2006).
Figure 2.
Branding strategy for a
destination
Another area of research is to find the ideal composition of brand components Strategic
necessary for different stages of the consumer decision making process and to find the branding of
effect of various types of media for various consumer decision making stages.
This paper provides a constructive guideline in the development of destination destinations
branding. As T&T economy continues to grow, the distinction between one destination
and another blurs. Governments are investing over US$ 1480 billion on attracting
tourism (WTTC, 2007) and hence a more strategic approach to branding would 623
increase investment returns. Destinations must start focusing on the service experience
and all customer touch points; especially the people as they help deliver the experience.
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