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Integrated Marketing Communication Strategy for California Beach Tourism

Explore how an IMC strategy can attract tourists to California's beach cities, focusing on surf, sun, and luxury experiences. Learn about customer valuation and behavioral analysis to maximize brand value and ROI. Discover the impact of strategic marketing partnerships and hotel capacity on driving growth in high-end travel.

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Integrated Marketing Communication Strategy for California Beach Tourism

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  1. Integrated Marketing CommunicationWeek 3 VIRTUAL Do Not Come To Classroom(07/09/12 – 07/12/12)

  2. This Week’s Agenda • Review for your Brand or Cause • W3A2: IMC Step One – Identify customers/prospects • Write about your customers/prospects on the Discussion Board • Discussion Board • W3A3: IMC Step Two – Estimating the value of customers and prospects • Using either Don’s Complicated Method or Joe’s Simplified Valuation Chart, write about your customer/prospect evaluation on the Discussion Board • W3DQ3: Participate in Discussion Question #3

  3. Great Integration #3: Major League Baseball • A life is not important, except for the impact it has on other lives. • Jackie Robinson

  4. Branch Rickey, Dodger GM • Envisioned 2 beneficiaries of integration: • An Evolutionary Benefit to Society • Bringing the races together on one playing field • A Financial Benefit to the Dodgers & MLB • Marketing to a new audience of Dodger fans • Bringing new fans into ballparks around the league

  5. 2. Valuation of Customers A Process of Behavioral Analysis Customer Migration $ Customer Retention $ Lapsed Customer $ Emerging Customer $ Prospect $ Customer Growth $ Marketing Organization

  6. Consumer Value in Practice: Tourism Case Study: Surf City USA

  7. Share of Purchases (%) Total Customers Annual Demand per Customer Units/ Revenue/ Gross Margin Brand X Our Brand Consumers X X X Brand Y Penetration Buying Rate Share Margin Determining Customer Financial Value Contribution to Brand $ C-BV = P x BR x SOP x M

  8. 1. Customer Identification From Behavioral Data 5. Budgeting, Allocation, Evaluation & Recycling 2. Valuation of Customers/ Prospects IMC 4. Estimating Return- on-Customer-Investment 3. Creating & Delivering Messages & Incentives The 5-Step Integrated Marketing Communication Process

  9. What is an IMC Strategy?…and how do I get one? • An IMC Strategy is aligned with business objectives: • It includes specific, achievable and measurable IMC Objectives • It forecasts Return On Customer Investment (ROCI) • It requires sacrifice – the essence of strategy is sacrifice! • Without sacrifice there is no strategy. • Without strategy an organization becomes weak.

  10. What is an IMC Strategy?…and how do I get one? • I’ve decided to prepare my own Oral Presentation. • My “cause” is the United States of America • My IMC objective is to increase tourist visits to the U.S.A. • So, here’s my “IMC Strategy for the U.S.A!”

  11. Situation Analysis • I’ve decided to try to build U.S. tourism…particularly by attracting nearby older customers and prospecting for younger, international, inbound visitors… • Based on specific population statistics and travel trends: • About 46% of the total Asia Pacific population, or 1.8 billion are young people under 25 years of age • They are consuming designer clothes, technology and travel (spurred by the rise of low fare airlines)

  12. Situation Analysis • But, I can’t really afford to speak to, or reach all of the people I’d like to… • And I certainly can’t manage to offer every possible type of vacation everywhere in the U.S.A. • So, strategically, I must sacrifice…which requires focus… • Therefore, I’ve decided to select California as the destination…specifically a “Sun and Sand” vacation spot…known around the world…….

  13. The Ultimate California Beach Experience

  14. The “Coastal Market,” particularly California Beach Cities, has become the name for a new national and international destination. • PKC Consulting, California Lodging Forecast

  15. Fast Growing CA Beach Communities: • Huntington Beach – Surf City USA • Del Mar • Pelican Hill • Rancho Malibu • Rolling Hills

  16. California beach towns exude • “Vacation Attitude!” • Huntington Beach – Surf City USA • Home of World Surfing Championships • Experience the laidback lifestyle • World famous pier • Miles of beautiful sandy beaches • Youthful personality • Warm weather and waves year round

  17. Partners • Explore America Tours • http://www.explore-america.com • Adventure Tours for International Students • Destination Partner – Surf City U.S.A. • Huntington Beach, California • Other Partners: • Golf • Disneyland • Surf Lessons • Kayaking

  18. Hotel Capacity • Hilton Waterfront Beach Resort • Hyatt Regency Huntington Beach Resort & Spa • Hotel Huntington Beach • New Hotel Capacity Recently Added • The Shorebreak, a Joie d’ Vivre Boutique Hotel • 5,000+ Hotel Rooms • New Downtown Shopping & Entertainment

  19. High-End Travel – Industry Growth Trend • California Tourism industry data – fastest growing income segment is $75,000+ (up 41 percent) • Represents more than 37.6 percent of overall travel revenue • Affluent, older households: • Take more trips • Spend more and fly more • Are a growing segment • Boomers and multi-income households Randall Travel Marketing research

  20. Under 25 Asian Pacific • About 46% of the total Asia Pacific population, or 1.8 billion young people • Affluence: consuming designer clothes, technology and travel (spurred by the rise of low fare airlines) • A previous young, emerging market (the Boomers) helped create a worldwide travel business after WWII • This audience is “addressable” i.e. online and international digital media • Anecdotal evidence shows these consumers admire the “surf lifestyle”

  21. Total Customers: 790,000 (we can reach) • Drive Markets (Shoulder Seasons) • LA – 500,000 • Phoenix –150,000 • Las Vegas – 90,000 • Fly Markets • Midwest and Eastern U.S. 50,000 • Off and Shoulder Seasons (Fall & Winter) • Total Prospects: 150,000 (we can reach) • International • Asia Pacific upscale youth market

  22. Customer Valuation: • Drive Markets • LA – 4,000 PAX • Phoenix – 3,500 PAX • Las Vegas – 2,500 PAX • Fly Markets • Midwest and Eastern U.S. – 1,500 PAX Total Customers: 11,500 Penetration: 0.0145 (1.4%)

  23. Prospect Valuation • International • Asia Pacific youth market • 2,500 PAX Total Prospects: 2,500 Penetration: 0.0166 (1.6%)

  24. Product Development • 5 Day/4 Night Drive Package • Hotel Shorebreak (4 nights) • $209 deluxe per night, incl. Breakfast = $836 • $50 x 2 (massages) = $100 • $50 x 2 (surfing museum; car show) = $100 • Misc. = $164 • Total = $1,200 ($600 PER PAX) • Margin = $120 ($60 PER PAX)

  25. Product Development • 5 Day/4 Night Domestic Fly Package • Domestic Air = $500 PER PAX x 2 = $1,000 • Airport Transfer = $35 PER PAX x 2 = $70 • Hotel Shorebreak (4 nights) • $209 deluxe per night, incl. Breakfast = $836 • $50 x 2 (massages) = $100 • $50 x 2 (surf museum; car show) = $100 • Misc. = $94 • Total = $2,200 ($1,100 PER PAX) • Margin = $2200 ($110 PER PAX)

  26. Product Development • 9 Day/8 Night International Fly Package • R/T Intl. Air = $941 PER PAX x 2 = $1,882 • Airport Transfer = $35 PER PAX x 2 = $70 • Hotel Shorebreak (5 nights) • $209 deluxe per night, incl. Breakfast = $1,045 • $50 x 2 (surfing lessons) = $100 • $50 x 2 (parasail or kayak) = $100 • Misc. = $103 • R/T Ferry to Catalina = $45 x 2 = $90 • Hotel Zane Grey (Catalina (3 nights) • $189 deluxe per night, incl. Breakfast = $567 • Total = $3,957 ($1,978.50 PER PAX) • Margin = $395 ($197.50 PER PAX)

  27. Share of Purchases (%) Total Customers Annual Demand per Customer Units/ Revenue/ Gross Margin Brand X Our Brand Consumers X X X Brand Y Penetration Buying Rate Share Margin Determining Customer Financial Value Contribution to Brand Remember this chart? $ C-BV = P x BR x SOP x M

  28. Surf City USA Customer Financial ValueJoe Hartnett Simple Chart

  29. Creating Customer & Marketplace Value When the Marketer Loses Control of Message

  30. The Customer in Control • Value is in the eye of the beholder – what value does the consumer see in the product or service? • Networked, interactive and dialogue-driven marketplace behavior is now the norm – how do we now structure IMC to participate? • Enhanced value – e.g. personalize mass-produced products – • Lee Jeans (customer measurements lead to custom jeans) • Dell (customer orders specific components needed/desired) • Personalized mobile phone rings

  31. Eight Guiding Principles of IMC • Become a customer-centric organization • Use outside-in planning – a marketing organization • Focus on the total customer experience, not just on marketing • Align consumer goals with corporate objectives – customer #1 • Set customer behavior objectives – Retention, Migration, Conversion • Treat customers as assets – Lifetime value • Streamline functional activities – Around messages + incentives • Converge marcom activities – and achieve integration!

  32. The “Five Rs” of IMC • Relevance • Receptivity • Response • Recognition • Relationship

  33. Three Key Questions • Who are the Brand’s best customers, and why? • Who are the Brand’s best prospects, and why? • What information does the marketer need to be more relevant to customers and prospects?

  34. Thank you! See you next week, 07/19/12 Guest Speaker!

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