Bsc TTM_Sem-3_Tourism Marketing_Unit 6- Packaging of Tourism Product

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BTT 2MARKETING MANAGEMENT All right are reserved with CU-IDOL Tourism Marketing Course Code: BTT112 Semester: Third Unit: 6 www.cuidol.in

Tourism Marketing 33 COURSE OBJECTIVES COURSE OUTCOMES • The course aims to provide basic knowledge of different tourism products of India. • To Equip the student with the understanding of domestic destinations. • To enrich student with knowledge of diversified tourism resources and products www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL

Packaging of Tourism Product 43 UNIT OBJECTIVES UNIT INTRODUCTION • After learning this unit, the student will be able to •. • Identify the concept of packaging and branding. • Explain the Types of packages • Recognizes the concept of new product development. • Classifies the difference between branding and packaging www.cuidol.in Q 101) INSTITUTE OF DAISllTAriNgChEt aArNeDreOsNeLrvINeEdLwEiAthRNCIUN-GIDOL

Introduction 5 • The company produces an appealing package, cover, wrapper, or jar during the packaging process to enclose the product for distribution and sale to consumers. • Proper packaging serves two purposes: it creates an enticing package for the product and it keeps the product secure and in its original condition. • Since it is the first thing consumers see about a product, packaging is one of the most critical aspects of marketing. As a result, it aids in product marketing at the point of sale. • Packaging offers brand information and aids in the simple presentation of a brand. • As a result, the primary goals of packaging are: • identification of a brand acting as a way of communicating product details, including both descriptive and convincing information distributing the commodity and making sure it doesn't get harmed acting as a form of product promotion at the point of sale. • Various tasks related to designing, testing, and developing the wrapper, jar, envelope, or other means of enclosing a product are used in packaging. www.cuidol.in All right are reserved with CU-IDOL

6 • Branding • Branding is a marketing technique that involves creating a distinct name, image, or logo for a product in order to attract consumers' attention. Its aim is to give a product a distinct identity that distinguishes it from other companies' products. It also aims to cultivate consumer trust and loyalty for the product. It not only creates a positive image of the product in the minds of buyers, but it also creates expectations for the brand. Companies use branding as a marketing strategy to raise awareness of their products among their consumers. • The branding process is ongoing, and the marketer uses it to build a long-term relationship with consumers by identifying their evolving needs and delivering goods that meet those needs. Because of branding, a product can be easily recognized. A brand-conscious person can only choose a brand in which he or she has full confidence and will not consider trying other brands. www.cuidol.in All right are reserved with CU-IDOL

7 BRANDING-VS-PACKAGING Meaning Creating a unique product/service, that is different The process of designing, assessing and creating the from those of competitors so to attract customers packet, wrapper, container, etc. for wrapping the and develop trust. product. Purpose Its purpose is to make the products unique and Its purpose is to promote the product and keep it distinct from other competing products in the secure from any kind of damage so that it market. reaches customers in its original form. Elements It includes name, color, logo, sign, etc. It includes color, font, logos, description, etc. Advantages It helps in establishing trust and long-term It helps in gaining the attention of customers and associations with customers. It seeks to retain drawing them towards the product existing customers by increasing loyalty. www.cuidol.in All right are reserved with CU-IDOL

ADVANTAGES OF DEVELOPING A PACKAGE 8 • Packaging’s intent is to create user-friendly products. It is intended to make carrying out business more convenient for both the business and the customer. • Advantages For The Customer • It increases convenience for the clients by combining services that would otherwise have to be purchased individually, often with some difficulty. • It makes vacations more affordable and less time consuming to plan. • It allows customers to budget and more closely predict the cost of their vacations. It can provide some security of product quality www.cuidol.in All right are reserved with CU-IDOL

ADVANTAGES OF DEVELOPING A PACKAGE 9 • Advantages For The Business • It increases the number of sellable features, allowing the business to appeal to wider markets • It creates unique products, because elements are usually different than the packages of other tours. • It provides newer businesses the opportunity to partner with well-established, high- quality products. • It facilitates tourism and regional economic development by increasing demand for some components of packages • It encourages participation in tourism development. • It may maximize revenue for the package partners by decreasing marketing costs. • It increases marketing effectiveness through a well-organized effort. • It enables operators to provide control over the visitor’s experience through the selection of appropriate partners. www.cuidol.in All right are reserved with CU-IDOL

DISADVANTAGES OF DEVELOPING A PACKAGE 10 • Disadvantages of developing a package • Partners have not got as much control over the quality of the total product. • Package may increase the logistics required to handle a client. • Packages may increase the potential for things to go wrong, as more players are involved in the package. • Packages may create client volume that a partner does not have the capacity to handle. • Package may create the feeling of inflexibility among customers, since most packages have predetermined components and often have pre-determined dates. www.cuidol.in All right are reserved with CU-IDOL

PACKAGED TOURS 11 • A pre-planned, organized travel experience consisting of several and separate elements operated over a fixed itinerary and time frame. • These programs may encompass a wide spectrum of interests, events and activities but must, by regulatory requirement,contain at least one night's confirmed accommodation any two of the following components: • Air transportation • Surface transportation • Local transfers • Car or recreation vehicle rental • Sightseeing or guide services • Meals and/or entertainment www.cuidol.in All right are reserved with CU-IDOL

PACKAGED TOURS 12 • Realistically, from an external sales and marketing point of view, The basic requirements for qualifications are: • Accommodation • Transfers • Sightseeing • These are accepted by regulatory authorities to constitute a packaged offering and qualify for a variety of promotional air fares and tariffs which provide competitive pricing of the product. Packaged tour sales are especially attractive to travel agents as they derive increased commission rates on the air transportation segments of the program. Packages take many forms. • For example: • A local canoe-guiding business and the hotel down the road get together to market a day long canoe trip with overnight accommodations to residents of a nearby city. • A bus-tour company buys accommodation and meals at a community lodge to include in the bus-tour company's own package. • A guest farm and a foreign-language school organize a farm stay for the language school's students. • European travel wholesaler combines air travel, bus transport, hotel accommodation, meal vouchers, city tours, and outdoor activities, such as rafting and horseback riding, for Europeans who want to come to Canada www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGES 13 • The most significant difference between package forms is between party and individual travel packages. . • Packages for groups • A Group Inclusive Tour (GIT) is a pre-paid tour for a set number of people who will ride together. • GITs are typically travel-escorted on chartered transportation and generally include all baggage handling, entrance fees, taxes, and some meals in the N.W.T. Most group tours in the N.W.T. are composed of 10 to 35 people (standard coach size is 47 passengers). • GITs are usually travel-escorted on chartered transportation and generally include all baggage handling, entrance fees, taxes, and some meals. As the name implies, this is a special operation designed to accommodate a group of people who have common interests. • This tour product is often used to serve long itineraries that include a combination of facilities, transportation, lodging, and attractions,guides, scientists, aboriginal guides, non-government staff, etc. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 14 • They are divided into three groups based on their length and areas of operation: • Escorted • Hosted • Unaccompanied • Packages for individual travellers • A Fully Inclusive Tour (FIT) is a pre-paid tour for one to ten people who are not escorted or accompanied by a tour guide. The booking is usually initiated by an airline. • Customers usually use public transit or take a U-drive. Accommodation, lodging, and sightseeing are usually included in FITs. • Each part of the package is provided to the traveller as a \"voucher.\" Individual travellers are normally responsible for taxes and baggage handling. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 15 • T: SPECIAL INTEREST TOUR • This group of tour designations caters to an increasingly growing segment of the tourist market. • The main implementation areas are well-known outdoor activities that encourage client involvement, such as: • Fishing • Hunting • Canoeing and River Rafting • Trail Riding Furthermore, no consumptive pursuits have seen the greatest increase in market growth, notably: • Environmental research teams • Historic and educational activities • Wildlife observation • Safaris for Photographers • There has been an increasing demand among affluent travellers to experience and add unpredictable and often strenuous vacations to their itinerary. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 16 • WHAT SHOULD BE INCLUDED IN A PACKAGE? • Packages can contain a broad range of components and can be tailored to a specific theme or key feature. Transportation to or inside the destination area may be one of the components (flights, vehicle or bicycle rental; van, boat or bus transport). • Lodging on the way to or at the destination (hotel, motel, bed and breakfast, cottage, camp ground). • Meals at the destination or on the way there (bed and breakfast plan, all meals included, meal vouchers at a variety of restaurants). • Events or entertainment, which may or may not be the primary reason for the package, depending on the tour (adventure, recreational or educational activities; workshops or conventions; visits to museums or galleries; evening slide presentations; sightseeing). • Souvenirs or mementos (T-shirts, photos of the client participating in an activity, gifts of local arts or crafts). • Programs that are related (interpreters, translators, guides, instructors, equipment rental or sale, equipment service, welcome reception, baggage handling). • Added and/or artistic features (photo service and film delivery, self-help coffee, discount coupons from local gift stores). www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 17 • Ways To Make A Package Successful • As a package maker, you should: • prepare ahead of time to ensure that no essential details are overlooked; • build the package around a key activity or attraction that is appealing to the target market. • preserve consistency • pay attention to specifics and impress your customers with your professionalism • interact clearly with your customers to prevent surprises when they arrive • make an acceptable profit! www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 18 • In order to create a box, there are six steps to follow. First and foremost, you must have an idea of how you want your package to appear. Then, by following the six measures, you can see if it's feasible. • Step 1: Determining Your Goals and Objectives Your goals and objectives will vary from package to package, depending on target market, region, and availability of services. It is helpful to clearly articulate the goals for your proposed package to maximize its potential. These may be: • to bring new visitors to your region, • to develop new markets and diversify your products, • to increase income during low or off-peak seasons, • to partner with an upcoming event or festival, or • to diversify economic development in your community www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 19 • Step 2: Identifying Strengths and Opportunities • Identifying the strengths and opportunities within your community, region, or your business, and those of neighboring businesses will help you decide who and what to include in your package. • It would be helpful to create an inventory of the existing tourism services, attractions and strengths in your region as a way to identify new opportunities. • A community asset inventory would be a great start in identifying the strengths and opportunities in your community. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 20 • Step-3 • Depending on where you live, your community leaders or economic development officers (EDO) may already have an asset inventory completed. Reaching out to you community EDO would be a great first step • An inventory of the existing services and attractions in your region may include an analysis of: • Your product and services, • Transportation availability, • physical attractions, • natural history and wildlife, • cultural and heritage attractions, • entertainment, • special events and their dates, • guides, naturalists and interpreters, • accommodations, and • restaurants. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 21 • Step-4 • When designing a tourism product or package, it is critical to identify your target market. • It will decide the package's form, size, activities, and price. • Need to convey the availability of your package through marketing and/or ads once you've found a target market. Tourism and Parks, which is part of Industry, Tourism, and Investment, has training tools dedicated to tourism product creation and marketing. www.cuidol.in All right are reserved with CU-IDOL

TYPES OF PACKAGE 22 • STEP 5: Obtaining partners services and suppliers • Traditional competitive business means being self-sufficient, trying to control all of the operational services, employees, infrastructure and marketing as a single company. • A new, emerging trend is to shift to partnerships by focusing on your basic products and services and then by collaborating with others to help reduce your costs while making your business more appealing to target markets. • This allows you to share expertise and offer a better experience to clients. It also allows you to concentrate on what you do best. Obtaining suppliers, services and partners occurs in the areas of, for example: • Entertainment, e.g. music, storytelling, cultural performers, artisans • Accommodations • Travel transportation/charters • Meal suppliers, e.g. restaurants, caterers, community organizations • Rental services, e.g. skis, bicycles • Local businesses, e.g. retail • Guides, e.g. tour www.cuidol.in All right are reserved with CU-IDOL

Branding 23 • There are several components to branding, including the selection of a product's name, emblem, picture, colour, and design in order to differentiate it from similar products produced by competitors. • Branding enables a business to claim control and give its product a distinct brand identity in order to differentiate it from the products of rivals. • Tourism advertisers have recently made an effort to \"brand\" their destinations. Although the strategy has considerable potential, adapting it from conventional goods and services to the tourism setting presents some challenges. • According to one especially useful transference of branding from goods to tourism destinations, \"location branding\" serves four primary functions. • To begin, destination brands act as \"communicators,\" as they serve as a signifier of ownership and a method of destination differentiation through legally protected names, logos, and trademarks. • Second, they create an image for the destinations, which is described by a set of associations or attributes to which consumers ascribe personal significance. www.cuidol.in All right are reserved with CU-IDOL

Branding 24 • Thirdly, brands function as \"value enhancers,\" generating brand loyalty for the destination through increased potential revenue streams. • Finally, a destination brand can be considered to have a personality that enables it to establish rapport with the tourist. www.cuidol.in All right are reserved with CU-IDOL

Branding 25 • Branding strategy in tourism: • Tourist brands have begun to be seen as assets within the national tourist offer that must be preserved and invested in in the modern era. • This is an ideal setting for the creation of the concept of brand equity. Branding strategy, as shown by the \"BPD\" model, can also be viewed as a financial asset. • Brand equity is a marketing term that refers to the ability of a brand to predict potential tourist revenue through brand loyalty, distribution, and recognition. Such perspectives have necessitated the continuation of the brand's growth through brand management. • Brand management is the process by which a tourist trademark, specifically its identity, is managed. The tourism industry's brands contribute to the development of added value for visitors. • For them, the brand acts as a risk mitigater when it comes to vacation quality, standards, and other aspects. www.cuidol.in All right are reserved with CU-IDOL

Branding 26 • Tourists' confidence in the brand mitigates business risk. • Tourists in this case are well aware of what they are purchasing from a brand. • Well-known tourist brands enjoy loyal visitors, high rates, and year-round tourist traffic, both of which have a direct impact on total tourist revenue. • The success of all brand management tasks is largely determined by the degree of consumer success achieved by the brand. The ultimate goal should be to establish a leading tourist brand. This path is difficult and usually requires constant capital investment. Their growth period is prolonged, as is their lifespan. • Appropriate brand management is critical for the brand's potential success today. • To summarise the activities involved in the creation of the tourism branding strategy, it is critical to note the following: • To gather and analyse consumer data on rivals and guest perceptions; • To develop new strategies and tactical programmes that are consistent with the brand's target future guests' demand; • To support the brand's sales forces; www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 27 • A new product is something that is novel to the business introducing it, even though it has been manufactured in a similar form by others. • In the field of toilet soaps, the various brands launched by each company are new products in their own right. • New products are those that significantly alter the consumer experience to the point that marketing campaigns must be designed or redesigned. • Product production follows product planning. Product production is the method of determining whether a product can be manufactured. • It entails determining whether or not it is possible to manufacture the commodity and whether or not it is profitable for the company to do so. • According to W.J. Stanton, M.J. Elzel, and B.J. Walker, a 'modern product' is \"one that is truly revolutionary and distinguishes itself greatly from current and imitative products that are new to the business.\" www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 28 • The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product − Primary Inputs Intermediate Inputs Intermediate Output Final Output(Tourist (Resources) (Tourism Facilities) (Tourism Services) experiences) Human Accommodations Vehicle parking Social contacts resourc service e Material Transport terminals Tour guide service Business contacts Equipment Vehicles/Ships/ Hospitality at serviced Satisfaction/Memories Boats/Airbuses accommodations/ / Ferries. hotels/ restaurants. Fuel/Energy Restaurants/Foo Cultural performances Recreation d Joints Agricultural Convention/ Festivals/Events Education product Shopping Centers. Capital Museums Relaxation www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 29 • The following general steps are taken for tourism product development − • Research the Market • At this step, the tourism marketing force conducts research on the current market to identify the opportunities. In includes economy, study of various market segments and their varied requirements, past market data, and current market and tourism trends. • Match the Product with Market • By assessing the market segments and conditions for tourism, different packages are created for various market segments such that they can satisfy the requirement of each segment of individuals. www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 30 • Assess the Destination • Since destinations form the basis of product development, the product development force visits the prospective tourism destination to assess its tourism potential and its ability to accommodate and serve the tourists, features of the destination, and its shortcomings. • It is assessed to judge if the destination is fulfilling the requirement of Accommodation, Attractions, Activities, or Amenities. It is also checked for the ease of Accessibility. • Understand the Stakeholder Role • The creation of tourism products is the outcome of concerted efforts by a variety of stakeholders. • It entails identifying all stakeholders in the private and public sectors, as well as DMOs, tourism and related companies, and their respective roles in developing or producing a tourism product. • Stakeholder meetings are held to develop a project plan. • The project's objectives are defined to ensure the realisation of a long-term vision, medium-term action plans, and short-term progress reviews. www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 31 • Product Building • At this step, the product is actually built using required resources and consultations of the expertise to create intermediate inputs (facilities and amenities) and intermediate outputs (services). • It encompasses not only development of destination infrastructure but also support for special activities and experiences. • Marketing & Promotion • The functional and emotional benefits of the tourism at the tourist destination are communicated to the market. • The marketing people create brochures, place advertisements on the business portals, and contact media to promote the destination and the product on the television and radio. • They also use various other marketing techniques to increase the product visibility. www.cuidol.in All right are reserved with CU-IDOL

CONCEPT OF NEW PRODUCT DEVELOPMENT 32 • Providing Human and Technical Resource • It includes providing skilled staff and contemporary technology to cater the needs of tourists efficiently, to handle all tourism related operations at the destination effectively, and to communicate with the staff easily. www.cuidol.in All right are reserved with CU-IDOL

Summary 33 • Tourist brands are created as a consequence of growing competitiveness on the global tourist market. • Specialized tourist products are good platform for the right branding strategy. • Branding strategy and brand management Advances In Management • Packaging provides information about the brand. • Packaging is the most important element of Marketing. • Product development is the process of finding out the possibility of producing a product. www.cuidol.in All right are reserved with CU-IDOL

Reference 34 • Reference books • Kotler, Philip : Marketing Management & Hospitality and Tourism Marketing. • Sinha, P.C : Tourism marketing. • Vearne, Morrisson Alison: Hospitality marketing • Kotler, Philip and Armstrong Philip, Principle of Marketing, 1999, Prentice-Hall India, 1999 • www.cuidol.in All right are reserved with CU-IDOL

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