International Marketing Case Analysis (Tourism New Zealand)
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International Marketing Case Analysis (Tourism New Zealand)
Executive Summary
Since 2010, the New Zealand’s tourism sector value has increased immensely according to Tourism Satellite Account of 2018. The Account report indicated that by late 2010, the sector had grown from $25.7 billion to around $39.3 per year. The highest growth was experience between the year 2014 and 2018 after the international visitors expenditure arguably increased by over 17 percent. This was perhaps due to the estimated increase in the arrival number of these visitors to the country by 37.8% over this period. By the year 2018, the tourism sector is alleged to have contributed 20.7% or approximately $16.1 billion on total goods and services exported. In addition to this, about 13.6% of the New Zealand’s total work force gets it employment opportunity through this sector. It is estimated that about 365, 416 New Zealanders are either directly working in tourism industry or indirectly linked to it. It is therefore, obvious that this country’s economy is boosted immensely by the tourism sector.
Furthermore, the broad economic value that the tourism sector brings across all the New Zealand regionsis aligning with the country’s strong regional development and economic aspirations. In the international scope, New Zealand is seen as the friendliest, safest and beautiful country that worth a visit. The ever prevailing peace and rich cultural practices often gives it the advantage. Maori rich culture is also viewed as a point of distinguishing the Republic of New Zealand’s tourism scheme and is continuously reported as among the highest tourist attraction in the republic of New Zealand. However due to geographical isolation, one of the major factors that affects the country’s ability to increase the arrival of the international visitors is air connectivity. Such ‘headwinds’must weather over the coming days as the country looks forward to maintain this global trend.
Table of Contents
Executive Summary 2
Table of Contents 3
Introduction 4
Evaluation of secondary research and online survey use 5
Issues researchers face across various key markets 7
The challenge of choosing the Right Topic 7
The choice of the Right Methodology challenge 8
The Challenge of assembling research team 8
PESTLE Analysis 9
Political factors 9
Economical Factors 10
Social factors 10
Technological factors 11
Campaign recommendations 11
Conclusions 12
References 14
Introduction
The tourism industry in New Zealand makes a key contribution to the country’s overall economy. According to the 2017 financial year, the Tourism New Zealand’s effort is alleged to have strengthened the economic growth of the international visitors. The continuous arrival of these visitors in early 2018 is increased by 5.6 %. Consequently, the holiday arrivals also increased by a significant percentage of around 6.6 percent. According the country’s Tourism New Zealand chief executive, England Hall, the alleged increase in the number of international visitors has benefited the country by approximately $498 million (Stats, N. Z. 2018).
Tourism is also viewed as the key constituent in many countries’ regional growth across the globe, as it elevates the economic activities. Conversely, the sustainable growth in any country is only possible if proper balancing is maintained between various rudiments of sustainability (Insch, A. K. 2020). Over the years, a larger percentage of Tourism New Zealand has been acknowledged as the World’s and largest running destination brand since late 1990s. The industry has elevated the clean image of New Zealand as well as marketing it as the greatest tourists’ destination brand to the entire globe. The reputable campaign is based on the uncertain merits of the natural environment considered green and cleans (Hayes & Lovelock, 2017). Such campaigns tend to offer a wide range of experiences which incorporate adventurers, people as well as scenic landscapes. The country has for years been promoting its tourism business through destination marketing. Prior to this, the New Zealand was perceived by the outside world as a place full of sheep and green hills or as just a boring place (Hayes & Lovelock, 2017). To the locals, this is opposite and this has been given proper attention through brand representation in a unique way to change this perception.
For this reason, New Zealand started marketing its tourism sector as a brand with emphasis on its landscape, people, and culture as well. The major aim of destined branding is to position the Country as a place formed over time by its inhabitants. The theme of International Marketing Case Analysis will therefore be reflected in the New Zealand culture, scenery, and people’s experiences as recognized as tourism destination and unaffected by the outside world.The study therefore analyses the image of Tourism New Zealand as international marketing strategy within the country and promotes the contribution of tourism industry to the economy the entire New Zealand.
Evaluation of secondary research and online survey use
In line with the research concerning the Active Considers, this International Marketing analysis aims to adequately narrow people who prefer the New Zealand as their first travelling destination priority. The main reason for the analysis is converting Active Considers into real visitors. Therefore, Tourism New Zealand uses market analysis to achieve is marketing strategies to attract more Tourists across the global.
First, this research uses some sufficient major demographic differences amid Active Considerers in major markets. This can significantly outlines the potential travelers who prefer to move to New Zealand. For instance, the TNZ classifies the age group amid gender as well as emotional needs for individuals from various countries around the world. According to this effectual way, New Zealand realizes specific needs and the environmental actives, hence conducting specific instructions to meet the visitors’ needs (Ministry for the Environment 2019).
The second reason is the brand awareness that has influence in the marketing strategies employed by Tourism New Zealand. Through online survey and secondary research, the TNZ finds specific position amongst the competitive destinations. According to Tourism satellite account of 2018, the competitive travelling destination is compared to those of others countries such as Australia and Canada due to the similarities in features among them in terms of environmental natural aspects and spectacular landscapes. By so doing, the Tourism New Zealand through it local government places its destination in a very competitive position, thereafter increases the awareness of their brand to gain a better acknowledgement amongst the popular destination (Wengel, McIntosh, & Cockburn 2018).Besides, the research analysis also focuses on collecting responses through online survey as the major ways fot TNZ to target the global tourists. Based on the secondary research, it is alleged that about 81% – 91% at least consults an online source and many travelers are believed to prefer the recommendations of other tourist which often takes place through blogging. Therefore, the social media and digital channels play vital roles in respect of target markets in the travelling profile of the New Zealand.
Contrary to this, the online survey and secondary research conducted by TNZ decision still have a number of weaknesses. The TNZ tend to over relay on the online surveys or recommendations from other tourists. This leads to misguided verdict to locate the target markets. Although there a lot of essential travelling information that bloggers present, the information invalidity is still full of public or website media. In order to gain reputation and promote visitors scanning volume, some online sources often creates false information to attract spots hence leading to unsatisfactory response after tourism experience (Zealand, S. N. 2015). Similarly, the image of the public as well as its reputation also gets damaged to an extent. Therefore, TNZ needs to solve some essential online information and sources as its research tools.
Lastly, in line with the demographic section in the major market analysis, the decision of grouping of gender is a way limited making it hard to target when actual the country is facing off different countries. Tourism New Zealand should therefore, classify groups base on specific sectors not gender basis to efficiently seize the key market. For example, the tourist groups needs to be divided into business travel to predominate more travelling sectors. This will therefore have more influence on the decision making process.
Issues researchers face across various key markets
Both current students and doctorate graduates conducting any kind of research are integral part of becoming a practitioner with credibility and skills to effect social change. However, a number of research challenges faced by researchers; ranging from topicalchoice, to finding participants of the study. Below are some of such issues and how they are overcome;
The challenge of choosing the Right Topic
The research topic is the basis o which everything rests. It is thus essential to be chosen carefully (Insch, A. 2020).Figuring the basic focus of a given topic is the step towards doing something. However, many researchers often get stuck while in the process of choosing their topic of discussion. Below are some of the proposed steps that should be put into consideration while choosing a research topic:
Developing a doable topic – This involves the available time, people, money needed to carry out the research. It is advisable to choose a justifiable topic not just replicating another study that will make everything resource intensive
Finding a theoretical basis to support the chosen topic is equally important. Overarching the theoretical context for individual research is very important but finding a suitable theory or theories that fits the chosen topic is festive.
Ensuring that the topic chosen holds the researcher’s interest is another important culture. Since research is often a long term project, it is important for the topic to be compiling enough to take the researcher long that distance.
Others input is key in fine tuning the chosen topic. Taking every opportunity that comes; ranging from experts’ thoughts to important ideas of the existing brain work can make a big difference.
The choice of the Right Methodology challenge
The methodology choice is also another nightmare to many researchers. However, it shouldcome automatically from the question of discussion or, the research question. Normally, this becomes a challenge to many as their personal preferences come first for a specific design or another. According to Dr. Susan Getsch, a psychology PhD holder from Walden, the choice of either quantitative or qualitative methodology should depend on the following;
Determining what kind of methodology and design can best answer individual’s research question. The inclusivity of words like explore, generate or understand automatically indicates that the chosen topic of discussion needs qualitative analysis. On the other hand, the presence of such words like compare, correlate, or relate shows the need for employing quantitative study. Therefore, the design comes by itself out of the study, but not being imposed on the study.
Sharpening an individual study design is also a quick solution to methodology choice challenge. After settling on either qualitative or quantitative, the questions of whom the researcher is going to collect the data and how to collect will answer themselves.
The Challenge of assembling research team
No research has ever been done in a vacuum. After choosing the topic and methodology approach, a research team must be put in place to support the researcher and study participants as well. Many researchers are face with the problem of assembling such participants but according Dr. Savage L., a PhD holder in Applied Management, assembling of team of advisors before commencing the study should be based on;
Solicit essential response which should involves bonding with people who are likely to help in critical thinking to generate ideas from different perspectives
Vetting of committee is also an essential. The choice of team leaders also matters a lot. According to Savage, interviewing the potential team to make sure they match and holding a discussion on the members’ capability eases the process.
PESTLE Analysis
The PESTEL analysis is useful in analyzing the industries the engage in both export and relay on international markets. Tourism sectors find itself as one of such industry and might use the approach in analyzing to global behavior its demand. Such analysis includes political, environmental, socio-cultural, technological, economical, and legal impacts. The expansion of the TNZ Active Considerers that will include Middle East has potential PESTEL impacts on the research process illustrated;
Political factors
Tourism business development in New Zealand getsits boots predominantly from Asian countries with Chinese, India and Japan topping the list as Active Considerers. However, the dynamism in the tourism industry and the marketing need tend to force the TNZ to divert toward the Middle East states. For the past few years, it is evident that Arabian countries such as Qatar, Saudi and the rest have slowly started considering New Zealand as one of the their best preferred holiday destination, hence there is a need to bring them on board. Because many Arabian countries are politically stable, and have negative image when it comes to terrorism, the region turn out to be one of the best tourism development.
The local government of the New Zealand has also maintained good relationship with the Middle East countries, and has supported various international events as well as political conferences to build a good image and market the destination brand. Tourism Ministry being a government agency with a role of developing tourism strategies, the inclusion of tourism sector in the national budget provides the TNZ with support approval to market itself (NZTS 2018). Also, the creation of New Zealand Tourism Industry Association is another marketing strategy that could be used to get into the Middle East market. The association represents about 2200 stakeholders, and it seems to be the voice of tourism (Zealand, N. 2014).Another governmental agency is TNZ. Created as marketing strategy in Country, the agency also is Author of 100% Pure New Zealand brand which also markets Tourism among the active Considerers such the Middle East (100% Pure 2018).
Economical Factors
Being a higher income earner with a GDP of $168 billion, there is a clear evolution in tourism industry in New Zealand (Stats, N. Z. 2018). The local government invest more on tourism and a lot of seems to be diverted to international marketing that incorporate countries from the Middle East. Over the last decade, the visitor exports have increased immensely and part of is from potential major Active Considerers; the Arabians. In the year 2013, New Zealand is believed to havegenerated NZD 7.1 billionfrom tourism. This is approximately 3.4% of total GDP. With entry of the Middle East, the total contribution expected to increase to around NZD 29.8 billion, (13.8% of GDP). Since the country is leaving in a globalised world, it understands the global economy and potential affects. Basically, a tough economy in the visitor’s origin countries shows more tourists will definitely have economic power to visit the country.
Social factors
The total population of the Middle East countries is high. From this population 86% of this population lives in towns areas. The New Zealand’s Fourth last populationis made up of Middle East group which is approximately 7.3%. Due to peaceful coexistence that this minor groups enjoys as maintained by the government of New Zealand, the locals tend to lure the fellow Arabs particulars from home countries (Statistics New Zealand 2015). The government missionis making tourism the first of income source in its economy. By encouraging the marginalized population such as those with Arabic origin, it is slowly but sourly achieving this and it is evident in the impact the tourism industry has on the country’s local population. The 2013 108, 000 jobs provided by the tourism industry through the government agency incorporate many small groups especially from Latin America, African and Middle East individuals and was expected to be increasing yearly. This is a marketing tool to encourage the people from their native country to consider New Zealand and first destination for vocation and holidays.
Technological factors
The number of registered airline in New Zealand was at by 2012 reached 2011 (Statistics New Zealand 2015).Increasing the direct flights to major targeted market is a key strategy and according to the tourism ministry, the plans are underway. Similarly, a total of 66% of goods roads connecting the shoreline to the mainland is a growing project since 2011. This has eased the movement of tourist who choose to use water transport. The condition of the ever busy Auckland international airport is maintained and security kept intact. Somehowapproximately 71% of international visitors are taken through Auckland and because of its role in the government and tourism sector at large. The Digital Strategy of New Zealand has been the government long term plan t to improve the digital situation of country and to promote tourism by diffusing the internet use in all over country. The 2015Tourism Strategyisdetermined to protect the environmental condition and tourism sector to various agencies like TNZ in collaboration with the government finding lasting solutions to decrease the emissions of Co2.
Campaign recommendations
The 100% marketing campaign in New Zealand seems to be the most appropriate since it focuses on both environmental and social issues across the New Zealand. The general increase in global sustainability of tourism has become a catalyst practice for destined tourism management. The 100% safe and fun marketing strategy has put emphasis on tagline of Active Considers and motivates the locals towards comparing the marketing message amid the 48 realities of tourism status. According to 100 percent pure marketing strategy (2018), promoting destined branding is essential for marketing campaign to control the branding efforts. It is more efficient to put in place 100% marketing and destination management to avoid affecting the integrity of such campaigns.
Similarly, such approaches maintain consistency in reminding the Active Considers the continued services and building the image of the national product. It will then promote all aspects of the Tourism New Zealand branding goals other than jus specific image. To identify the effectiveness of this strategy, comparison and relation the previous visitors’ number with the current will be necessary. To implement this, quantitative research will be useful especially in comparing the numerical figure to prove this effectiveness (Zealand, N. 2014). Although the finding indicates that the locals and the medial are essential players in this, the campaign still has a lot to take from such statistics. Since the 100% strategy will challenge the local New Zealand government and the Tourism New Zealand to build more efficient key marketing tools, it will truly elaborate fun, and safety message cross the country’s borders.
Conclusions
The continued innovation and investment in the tourism sector in New Zealand seem to be the center of destined marketing and economic prowess. The Tourism New Zealand body (TNZ) also seems to play a vital role in giving out a systematic support in collaboration with local government to plan, manage, and provide a good marketing environment to gain customers insights. It is important therefore, to maintain the collection, analysis as well as sharing of insights that are related to both international and local visitors to enhance the sector’s participants to put up a picture of, and give response to, the potential customers or visitors’ preferences. Promoting regional dispersal which focuses on customers’ experiences and improves productivity of the tourism sector on the aggregate value-add is also important.
Besides, the focused support for the dispersal regionally will have a realistic vision of becoming successful considering the potential matching of the visitors’preferences to strengthen tourists’ potentiality. Similarly, mitigating the tourism social license risk by both private sectors as well as the local government agencies will be of great help to the industry as the sector’s system stewardship will focus more on the development to integrate the country’s highest revenue generator for sustainable goals as well as supporting service delivery and diversity.
References
100% Pure a ‘marketing strategy … not an environmental standard’. (2018). Radio New Zealand. Retrieved May 8, 2019 from https://www.rnz.co.nz/news/political/357017/100-percent-pure-a-marketing-strategy-not-an-environmental-standard
Auckland Tourism Events Economic Development Agency. (2019). Tourism. Retrieved March 28, 2019, from https://www.aucklandnz.com/about-ateed/about-us/what-we-do/tourism
Hayes, S., & Lovelock, B. (2017). ‘Demystifying’worldmaking: exploring New Zealand’s clean and green imaginary through the lens of angling tourists. Tourism Recreation Research, 42(3), 380-391.
Insch, A. (2020). The challenges of over-tourism facing New Zealand: Risks and responses. Journal of Destination Marketing & Management, 15, 100378.
Ministry for the Environment. (2019, April 18). New report signals nine top environmental issues facing New Zealand. Retrieved April 30, 2019, from https://www.mfe.govt.nz/news-events/new-report-signals-nine-top-environmental-issues-facing-new-zealand
Statistics New Zealand (2015) ‘International Visitor Arrivals to New Zealand, September 2015’, .
Stats, N. Z. (2018). Tourism satellite account: 2018.Statistics New Zealand.
Wengel, Y., McIntosh, A., & Cockburn-Wootten, C. (2018). Tourism and ‘dirt’: A case study of WWOOF farms in New Zealand. Journal of Hospitality and Tourism Management, 35, 46-55.
Zealand, N. (2014). Ministry of Business, Innovation, and Employment.(2013). RTI Detailed Data: Domestic RTI.
Zealand, S. N. (2015). New Zealand in Profile 2015: An overview of New Zealand’s people, economy, and environment. Wellington: Statistics New Zealand.
