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HomeMy WebLinkAbout03.1 Strategic Marketing & Research Inc. Study Example State Office of Tourism 2013 Image & Positioning Research May 2013 Strategic Marketing & Research, Inc. Page 1 Table of Contents Executive Summary ................................................................................................ 2 Background & Objectives ....................................................................................... 3 Methodology .......................................................................................................... 4 Competitive Travel Situation ................................................................................. 5 State Image ............................................................................................................ 6 Image Opportunities ............................................................................................ 11 State Personality .................................................................................................. 13 Picture Opportunities........................................................................................... 17 Activity Opportunities .......................................................................................... 19 Market Differences .............................................................................................. 21 Appendix: Familiarity with States by Market ....................................................... 23 Appendix: Travel/Likely Travel by Market ........................................................... 24 Appendix: Overall State Ratings by Market ......................................................... 25 Appendix: STATE Rating & Likelihood by Familiarity ........................................... 26 Appendix: Top of Mind STATE Image ................................................................... 27 Appendix: Attribute Importance vs. STATE Performance .................................... 28 Appendix: Activity Prevalence vs. STATE Performance ....................................... 29 Appendix: State Travel Party ................................................................................ 30 Appendix: Demographics ..................................................................................... 31 Strategic Marketing & Research, Inc. Page 2 Executive Summary The research findings indicate that State faces a number of challenges in attracting additional visitors to the state. State is not currently viewed as a top tier destination, and it faces a competitive disadvantage compared to the leading states. Instead, State is viewed as “one of a pack” of Western destinations that all share the fact that they have beautiful scenery, but are seen as rugged, less developed, non-urban states to visit. The key challenge for State is to develop a brand position that can differentiate it from the other similar competitors (Utah, New Mexico, Colorado and Texas) and generate additional interest in visiting. This will require building on current perceived strengths, but also positioning the state in a new and somewhat different way. In terms of tourism product, the current image of the state is fairly fixed – and whether people are likely to visit or not likely to visit, they see the state in the same way. The defining strength is the scenery, but this is not unique to State. In terms of the product focus, State should: • Focus more as an adult destination. The other competitors are better positioned for the family market, and State can differentiate with the adult focus. • Promote the melding of cultures in the state that supplements the beautiful scenery and many outdoor activities. State is viewed more strongly as the state where people can enjoy Old West culture and Native American culture. While focusing on these activities is not as important, it makes sense to present the beauty and activities of the state infused with these distinct and interesting cultures. • Begin to promote more of the developed/urbanized culture and activities, which State does not currently get credit for. For instance, unique local dining represents a good opportunity to promote to increase interest. • In terms of scenery, it is important to show the breadth of the scenery available and focus on the “green” aspects of the state as well as the desert beauty. State also needs to create a more appealing personality. It is currently not seen as particularly welcoming or fun. The brand should communicate this personality. In addition, the brand and the advertising should position State as a place that is authentic and inspiring. This can be somewhat challenging in terms of differentiation – as the other competitors also try to own this space (Utah with Life Elevated, Colorado with Come to Life etc.). Therefore, the personality needs to be coupled with the product and the feel of the state to create a motivating and meaningful brand. Strategic Marketing & Research, Inc. Page 3 Background & Objectives The State Office of Tourism (SOT) is committed to building a brand architecture that defines the Grand Canyon State as a world-class travel destination. The ultimate goal of this branding strategy is to influence leisure trips to State that would have not occurred without the marketing efforts. Key to these efforts is developing advertising and branding that create interest in visiting the state and position State in a way that differentiates it from the competition. This information will help refine and develop the state's tourism brand and develop new advertising creative. The State Office of Tourism has contracted with Strategic Marketing & Research, Inc., (SMARI) to provide insight into these issues through market research. The specific goals of this research are:  Assess the overall image of State from the perspective of current and potential visitors;  Identify key attitudes/perceptions about State as a destination, including perceptions of its key strengths and weaknesses;  Define the prevailing market position, or positioning profile, of the area in the context of consumer perceptions vis-à-vis those of key competitors, which are driven by imagery and selection criteria;  Investigate the competitive landscape and identify ways in which State can differentiate and position itself as the preferred destination;  Identify key motivators – both rational (product) and emotional – to visitation of the area and its key competitors and how the state can prompt additional consideration and visitation;  Explore differences in markets that may exist and how they relate to State 's brand; and  Recommend a sustainable brand and image strategy that will position State as a desirable destination and differentiate it from key competitors. Strategic Marketing & Research, Inc. Page 4 Methodology To address these questions, SMARI utilized an online survey among the targeted audience. A total of 1,035 surveys were completed among this audience, with the geographic distribution shown below. To qualify for the survey respondents had to: • Be involved in making decisions regarding travel destinations • Have taken an overnight leisure trip in the past year • Have household income of at least $50K Data collection was completed between April 16 and April 26, 2013. A copy of the survey instrument is included in the Appendix of this report. Upon completion of the data-collection process, an SPSS dataset was compiled for analysis. A number of statistical techniques were used in the analysis, including perceptual mapping, driver analysis, gap analysis, correlation and regression. The following report details the key findings from this research. •323 interviews •Southern CaliforniaGroup1 •304 interviews •Midwestern states (MI, MN, IL)Group 2 •408 interviews •Remaining nationalGroup 3 Strategic Marketing & Research, Inc. Page 5 Competitive Travel Situation Competitive perceptions have been reviewed in detail, which led to a better understanding of how the target audience perceives State relative to other states and how that image could be built upon to create a stronger image that will generate interest in State travel. Evaluating rates of past and likely travel to the competitor states provides a deeper understanding of where State stands relative to the competition. Just under three-quarters of the target audience has some level of familiarity with State in terms of what it has to offer as a destination for a leisure trip. This puts State right in the middle of the competitive pack – below California, Florida, Nevada, and Hawaii, but above Colorado, Texas, Utah and New Mexico. Rates of past and future likely travel expectedly tell a very similar story – State is in the middle of the competitive pack. The overall state ratings also indicate that State is a “middle of the competitive pack” state. Interestingly, State has the highest percentage of “good” ratings of any state tested. The opportunity is to use the findings from this image and positioning study to refine the branding strategy and change the perception of State from “good” to an “excellent” destination that people want to visit. 58%51%41%35%28%24%21%15%15% 30%37% 38%40%44%43%41% 34%35% 88%88% 79%75%72%68%62% 50%49% Competitive Familiarity Very Familiar Somewhat Familiar 70%68% 59% 48% 38%38%38% 23%22% 45% 37%35% 26%29% 21%21% 15%15% Competitive Travel/Likely Travel Ever Visited Likely to Visit in Next 2 Years 67%60%51% 33%39%27%21%18%19% 24%29%34% 45%39% 47% 43%43%40% 91%89% 85%78%77%74%64% 60%59% Competitive Overall Rating Excellent Good Strategic Marketing & Research, Inc. Page 6 State Image This research effort is designed to help SOT and its advertising agency understand the current competitive situation and how the state is viewed by past and potential visitors. Much of the analysis is based on how consumers currently view the state, how that compares to their image of competitors, and how these images and perceptions drive their overall evaluation of the state, as well as interest and likelihood to visit. A key element of the research was to have respondents rate State and its competitors in relation to 37 different attributes that could relate to their image of the state as a travel destination. The ratings utilized a 5-point scale, where the higher the rating, the stronger the perceived performance. With this type of scale, generally a score of 4.0 or higher denotes a key strength, while ratings of 3.8 and 3.9 are strong. Ratings below this level generally are less likely to be areas of strength, although this can depend upon the competitive set. In terms of its overall ratings, State gets especially strong reviews in three areas: • Has beautiful scenery • Great for visiting state/national parks • Easy to fly to The state also is viewed as a good place to experience both Native American and Old West culture, as well as the great outdoors. It is viewed as having lots of unique things to see and do, with many historical and cultural heritage sites. There are also many other potential strengths, including first class resorts and being a good value. In terms of lower ratings, the state does not seem to be viewed as a good place for urban experiences, and this includes attributes relating to nightlife, arts and spas. Dining does not seem to be a perceived strength, and even golfing receives a relatively weak rating. 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.9 3.9 3.9 3.9 3.9 3.9 3.9 4.0 4.0 4.2 Is a good value for the money Offers a wide variety of cultural activities Warm, friendly people Great vacation for couples Offers activities that allow me to customize my… Is a good place to go to relax by the pool First class resorts & hotels Has enjoyable weather Is welcoming to everyone Is a fun place to visit Offers something for the whole family Is a good place to go for a relaxing vacation Has many historical and cultural heritage sites Has many unique things to see and do Great for outdoor adventure Great for experiencing the culture of the Old West Great for Native American culture Easy to fly to Great for visiting state/national parks Has beautiful scenery State Attribute Ratings (5-point scale) Strategic Marketing & Research, Inc. Page 7 Of course, as mentioned earlier, to some degree the absolute ratings are less meaningful, and the key is how State is viewed compared to its competitive set. For this research eight other states were considered as competitors: California, Colorado, Florida, Hawaii, Nevada, New Mexico, Texas and Utah. The best way to compare across states is to use an index. The index compares the rating for each state to the average rating across all competitors. With an index a score of 100 represents being average, while 115 would be 15% above the average of the other states, while 85 would be 15% below the average. Indexes show that State does not rate the highest on any image attributes – there is not one of these categories where State is viewed to be the best within this competitive set. In fact, in terms of the highest ratings for beautiful scenery, State is considered average; Hawaii, Colorado, California and Utah all rate better. Image Attribute State Comp Comp2 Comp3 Comp4 Comp5 Comp6 Comp7 Comp8 Great for Native American culture 116 97 104 79 83 91 119 107 103 Great for experiencing the culture of the Old West 116 100 108 65 73 99 110 119 110 Great for Hispanic culture 107 114 97 94 74 88 116 117 91 Great for visiting state/national parks 106 108 110 90 99 88 98 97 105 Has many historical and cultural heritage sites 103 104 101 89 103 88 102 109 100 Is a good value for the money 103 96 102 99 93 103 100 101 103 Great for outdoor adventure, like mountain climbing/bicycling, hiking/backpacking, hunting and fishing 102 106 111 86 103 87 102 96 107 Great for camping 102 106 114 83 90 86 103 101 113 Great for golfing 101 110 91 109 105 101 93 93 98 Has beautiful scenery 101 105 106 94 111 90 98 93 102 Easy to fly to 100 105 100 103 92 105 95 102 96 Great for wildlife/bird viewing 100 101 108 95 107 85 98 99 106 Offers a wide variety of cultural activities 100 110 101 95 106 90 101 102 96 2.9 3.3 3.3 3.4 3.4 3.5 3.5 3.5 3.6 3.6 3.6 3.6 3.6 3.6 3.7 3.7 3.7 Exciting Casinos Is a good place to enjoy the urban experience Great for attending a pro or college sporting event Great nightlife entertainment Offers lots of water sports activities Great for Hispanic culture Excellent museums/art galleries/performing arts Great world-class spas or spa treatments Great for attending festivals/fairs/events Is a good place to go to pamper yourself Great for camping Great for wildlife/bird viewing Offers a wide variety of shopping opportunities Great for golfing Offers fine dining options Offers unique dining options Is an exciting place to visit State Attribute Ratings (5-point scale) Scenery, parks, and easy flight access are perceived strengths. State receives relatively low ratings for urban experiences, and this includes attributes relating to nightlife, arts and spas. Strategic Marketing & Research, Inc. Page 8 In fact, State rates below average in the majority of categories. While in most, State is only slightly below average, this suggests that the state has not established meaningful points of differentiation within this competitive set. Image Attribute State Comp Comp2 Comp3 Comp4 Comp5 Comp6 Comp7 Comp8 Great for attending a professional or college sporting event 99 116 106 99 84 90 92 111 102 Is a good place to go for a relaxing vacation 99 104 101 104 112 94 93 93 100 Is a good place to go to relax by the pool 99 108 88 112 112 106 91 94 90 Excellent museums/art galleries/performing arts 97 114 103 93 98 94 100 102 99 Great for attending festivals/fairs/events 97 108 101 97 99 92 102 102 102 Has many unique things to see and do 97 108 99 100 109 98 95 97 96 Great world-class spas or spa treatments 97 111 94 100 111 110 90 93 95 Offers something for the whole family 97 107 100 107 108 90 94 98 98 Offers activities that allow me to customize my experience 97 108 99 102 107 101 91 99 96 Warm, friendly people 97 97 104 98 111 96 98 101 98 Is welcoming to everyone 97 103 99 100 109 100 98 97 97 Exciting casinos 97 102 93 90 89 148 100 90 92 Great vacation for couples 97 107 99 100 114 105 90 93 95 Is a good place to enjoy the urban experience 96 116 101 98 92 100 96 106 96 Has enjoyable weather 96 112 95 104 115 96 92 96 95 First class resorts & hotels 95 109 96 103 110 111 90 95 90 Is a fun place to visit 95 106 101 103 109 103 92 96 95 Offers unique dining options 95 110 97 100 108 106 94 98 92 Is a good place to go to pamper yourself 95 109 95 101 115 106 92 94 93 Offers fine dining options 95 110 99 103 107 108 90 99 90 Offers a wide variety of shopping opportunities 94 112 98 104 103 107 91 100 92 Is an exciting place to visit 94 109 102 99 112 105 91 97 92 Offers lots of water sports activities, like boating and river rafting 93 108 102 111 115 87 91 93 100 Great nightlife entertainment 91 114 95 103 108 119 88 96 86 The findings highlight that Hawaii and California are generally viewed as much more appealing than the other competitors. In addition, Colorado leads as the outdoor adventure state, Nevada provides nightlife and luxury, and Texas has history and Hispanic and Old West culture. Of course, consumers don’t routinely consider destinations in terms of a list of attributes. Their image of a destination is more holistic and includes a combination of perceptions of strengths and weaknesses. To better mirror how consumers view a destination, a procedure called perceptual mapping is used. It statistically analyzes consumers’ ratings of all the destinations to create a map that locates each of the attributes and the state relative to one another. A review of this process and findings will further illuminate the current competitive landscape and begin to pinpoint how State can begin to position the state more effectively. State has not established meaningful points of differentiation within its competitive set. Strategic Marketing & Research, Inc. Page 9 Perceptual Image Map The challenge with all the data reviewed up to this point is that in reality, in the minds of potential travelers, all this imagery and the competitive context need to be considered together. We need to view strengths and weaknesses and motivational drivers along with image differentiators. The key to branding is not merely a function of promoting a destination’s assets, but viewing them in a holistic way that defines the appeal and what makes it special. Unfortunately, no list of attributes and their comparative ratings can fully capture these issues. It is for this reason that perceptual mapping is often employed. A perceptual map provides a visual interpretation of how the target audience perceives the competitor states relative to one another. The map shows how the various image attributes group together, providing a framework for understanding how the target audience differentiates the states. The axes are labeled for ease of interpretation. Attributes near each other are seen as similar on the relevant dimensions by the traveler. The competitive landscape or space is defined by all the interrelationships of attributes, personality and destinations. This map suggests that destinations are viewed as either more appropriate for adults, or more appropriate for families. In addition, destinations tend to excel in having nice weather and lots of water, or in terms of providing more of authentic culture. Parks Wildlife viewing Camping Sporting events Golf Museums/galleries Native American culture Hispanic culture Old West culture Casinos Nightlife Resorts Something for whole family Great for couples Easy to fly to Friendly people SceneryEnjoyable weather Exciting Value Historical sites Relaxing Cultural activities Water sports activities Relax by pool Statecompetitor competitor competitor competitor competitorcompetitor competitor Adult Family Weather/Water Culture Adult Family Strategic Marketing & Research, Inc. Page 10 This provides the opportunity to consider the overall positioning of the competitive states:  Nevada is clearly defined by Las Vegas and is viewed as the adult destination.  California and Hawaii are defined by the weather and generally the ocean.  The rest of the states – Texas, Colorado, Utah, New Mexico and State – are viewed as more family-oriented destinations, that offer more culture compared to weather/water.  Interestingly, none of the states is viewed as a more adult/cultural. One way that the perceptual map is often used is to identify how those who are likely to visit the state place it on the map compared to those unlikely to visit. The "gap" can identify opportunities. But, for State, the positioning of these two groups is very similar. This indicates that whether people are likely to visit the state or not - they view it in a similar manner. This is often not the case, and can suggest that additional education about a destination will change perceptions. But for State the current perceptions are fairly entrenched. Therefore, State must look at options for creating more differentiation and for emphasizing positive perceptions, while overcoming barriers to interest. Next we will look at “gap analysis” to identify the image attributes that identify State’s differentiators, imperatives and opportunities. likely to visit not likely to visit StateWeather/Water Culture Adult Family State’s image does not differ between those who are likely to visit and those who are not likely to visit. Strategic Marketing & Research, Inc. Page 11 Image Opportunities The exercises to this point have confirmed State’s image relative to the competitive states, but have not necessarily provided direction for future marketing communication. One way to identify messaging opportunities is to compare the importance of various destination image attributes to State’s current rating, or “performance” on these attributes. This type of gap analysis identifies both key drivers of the image as well as opportunities to change the current positioning. The analysis looks at how important the attributes are to consumers versus how State performs. It should be noted that some attributes are less important simply because they have more of a niche appeal. Therefore, these should not necessarily be dismissed, but rather approached as important to smaller target audiences. The analysis creates four groups of attributes:  Imperatives – These are attributes that are important to consumers and where State performs fairly well. These are attributes that should continue to be reinforced, although they don't necessarily need to be front and center in the marketing message.  Differentiators – These are attributes that are less important to consumers but where State performs well. These tend to be good points of differentiation.  Opportunities – These include attributes that are important to consumers, but where State is not viewed as having strength. If the perceptions of performance are wrong, and the product is strong in these areas, they provide opportunities to increase the state’s overall image as well as interest in visiting  Indifferences – These are attributes that are of little interest to consumers and where State is not perceived to have strength. These should not be a focus in advertising, although they can still be promoted in specific targeted efforts, if that makes sense. The graphic below shows the quadrants resulting from this comparative exercise, and there are several noteworthy findings:  The differentiators include Native American culture and Old West culture. Focusing on these attributes, especially as they appeal to adults, could be a good option for differentiating State from the other competitive states that were clustered nearby.  State must continue to communicate about some of its key strengths, including scenery, national parks and weather.  The opportunities seem to cluster in two categories – first, making the state seem more welcoming, exciting and fun; and second, promoting some of the more urban and luxury options. Trip activities in the upper quadrants and the lower right quadrant represent opportunities for advertising d l t Strategic Marketing & Research, Inc. Page 12 Performance Importance DIFFERENTIATORS IMPERATIVES OPPORTUNITIESINDIFFERENCES These attributes represent current strengths which help to differentiate the destination from other competitors and should be promoted. These attributes represent characteristics that people expect to find in a destination and which are existing strengths which should be preserved. This quadrant represents areas of weakest influence in that they are not motivators or differentiators but rather characteristics that are, at best niche motivators and at worst barriers to be avoided. These attributes also represent characteristics that people look for in a destination which represent competitive weaknesses and need improvement. NARROW TRAVEL APPEAL BROAD TRAVEL APPEAL • Native American culture • Old West culture • Outdoor adventure • Scenery • Parks • Easy to fly to • Historical sites • Relax by pool • Family destination • First class resorts • Value • Great for couples • Customized experience • Unique things to see & do • Relaxing • Enjoyable weather • Casinos • Hispanic culture • Sporting events • Urban experience • Nightlife • Water sports • Golf • Wildlife • Shopping • Festivals • Exciting • Welcoming • Fun • Friendly • Cultural activities • Unique dining • Fine dining • Museums • Place to pamper There is an opportunity to use marketing to promote images such as exciting, welcoming, fun, and friendly. Tables showing top 2 box importance and top 2 box State performance can be found in the Appendix. Strategic Marketing & Research, Inc. Page 13 State Personality The importance vs. performance analysis identified destination attributes that offer potential for marketing communications. For instance, interest in State travel is likely to increase if SOT is able to make the target audience feel that State is more welcoming, exciting and fun and offers urban and luxury options. But destination attributes and activities are just one piece of the puzzle. Destinations also need to have a “personality” to frame their image. This personality needs to fit the current perceptions of the destination, while also appealing to the target audience. This research explored state personality by having respondents rate how well a set of personalities describe State and competitive states. State received its highest ratings for rugged, adventurous and authentic. The state is less likely to be thought of as luxurious, sophisticated, hip or elegant. Indexing the personality ratings reveals that State and New Mexico rate the highest of any state for rugged. This is the only personality attribute for which State rated the highest. Personality State Comp Comp2 Comp3 Comp4 Comp5 Comp6 Comp7 Comp8 Rugged 110 89 115 74 95 89 110 108 109 Old-fashioned 105 87 105 83 93 85 110 115 119 Down to earth 103 94 105 93 105 84 103 105 107 Authentic 101 97 102 94 109 92 101 103 101 Laid-back 101 98 104 97 112 85 100 102 102 3.1 3.2 3.2 3.3 3.3 3.3 3.4 3.5 3.5 3.5 3.6 3.6 3.6 3.7 3.7 3.8 3.8 3.8 3.8 3.8 3.8 3.9 3.9 3.9 Elegant Hip Sophisticated Luxurious Old-fashioned Progressive Unexpected Vibrant Lively Inspirational Rejuvenating Exciting Diverse Unforgettable Laid-back Comfortable Relaxing Fun Friendly Down to earth Welcoming Authentic Adventurous Rugged State Personality Ratings (5-point scale) State is seen as a “rugged” destination relative to the other states in the competitive set. Strategic Marketing & Research, Inc. Page 14 The personality attributes on which State indexes below average are owned by Hawaii and California. These two states have numerous leisure travel attractions and activities that appeal to a wide swath of people and are thus able to take on several different personalities. But this should not be a concern for this research. The critical task lies in identifying the personality attributes that will help to differentiate State from the other western U.S. states while also driving interest in travel. Personality State Comp Comp2 Comp3 Comp4 Comp5 Comp6 Comp7 Comp8 Adventurous 99 102 107 95 106 96 98 96 100 Inspirational 99 102 105 92 112 90 100 96 103 Relaxing 99 101 102 103 115 93 95 93 100 Comfortable 98 102 100 100 112 97 96 96 99 Friendly 97 96 101 97 111 97 100 98 102 Welcoming 97 98 101 98 111 100 98 98 100 Rejuvenating 96 104 100 100 117 94 96 95 98 Diverse 95 113 98 101 106 102 97 96 92 Unexpected 95 103 99 93 109 102 100 97 102 Unforgettable 95 104 103 96 113 101 96 93 98 Fun 94 106 100 102 109 105 92 94 97 Exciting 93 107 101 100 109 108 94 94 93 Sophisticated 92 114 101 96 106 106 94 95 97 Progressive 92 115 103 100 108 104 95 91 92 Vibrant 92 108 101 99 110 109 94 95 93 Lively 91 111 99 102 107 113 92 98 87 Luxurious 90 113 96 100 118 113 91 88 90 Elegant 90 113 97 98 114 108 93 93 93 Hip 90 118 98 102 106 111 91 93 90 Strategic Marketing & Research, Inc. Page 15 Perceptual Personality Map Perceptual mapping, which previously helped to reveal State’s competitive image, can also be used to show the states’ relative personality types. Similar to the image map, State resides near the other western states of Texas, Colorado, New Mexico and Utah, which are seen as rugged and somewhere in between engaging and laid-back. The personality map shows that there is a clear difference between the way likely State visitors and those unlikely to visit the state perceive State’s personality. The likely visitors place State in the inspirational/laid- back quadrant. This space is currently unoccupied by competitor states, which presents an opportunity for State to own a personality that is linked to interest in visiting the state. Friendly Fun Lively Luxurious Exciting Adventurous Vibrant Comfortable Progressive Hip Down to earth Relaxing Laid-back Old-fashioned Sophisticated Elegant Inspirational Rejuvinating Diverse WelcomingUnexpected Rugged Unforgettable Authentic State Competitor Competitor Competitor Competitor Competitor Competitor Competitor Engaging Laid-back Refined Inspirational likely to visit not likely to visit State Engaging Laid-back Refined Inspirational There is an opportunity to achieve a differentiated and motivating state personality. Competitor Strategic Marketing & Research, Inc. Page 16 But how can State achieve this personality shift? Improving State’s ratings to 4.0 on inspirational and authentic would result in the desired personality shift. These attainable improvements would put State in a stronger and differentiated position relative to competitor states. These attributes and this personality could fit well with a state that offers a taste of various cultures (Old West & Native American), in a setting of beautiful scenery. Personality Attribute Current Rating Improved Rating Change Inspirational 3.5 4.0 0.5 Authentic 3.9 4.0 0.1 Thus far we have identified destination image attributes and trip activities that offer potential for creative development and marketing communications in general. The importance vs. performance analysis identified which attributes and activities offer opportunities for differentiation, existing strength reinforcement, and improving competitive weaknesses. We have also recognized that the destination “personality” that will help to differentiate State and generate interest in visiting can be achieved by promoting the state as “inspirational” and “authentic.” Next we will review specific imagery and trip activities that could be featured in future advertising creative. likely to visit not likely to visit State improved position Engaging Laid-back Refined Inspirational Promoting State as an inspirational and authentic destination will help to differentiate the state and generate interest in visiting. Strategic Marketing & Research, Inc. Page 17 Picture Opportunities Appealing images are one of the most important elements of effective tourism advertising. Images capture attention, showcase the product and generate interest in visiting. A case in point is the 2012 State print advertising. These ads showcased full-page images of beautiful, dramatic and iconic State scenery – and they received some of the highest evaluative ad ratings that SMARI has ever observed. 2012 STATE Print Advertising… Rating (5-point scale) Offers beautiful landscapes & scenery 4.5 Makes you want to visit the state 4.0 This image and positioning research tested a group of State images in a couple of ways. First, respondents were asked which state comes to mind when they see the image. Second, respondents were told that all of the images were of State and asked to indicate which would make them more interested in visiting the state. The pictures that are most likely to bring State to mind are golf, Grand Canyon, the Jeep on rocks, the rock tower with climber, and Antelope Canyon. Very few consumers said that the other images brought State to mind. So what does this mean in terms of marketing strategy? We can again employ an “importance vs. performance” exercise that identifies images that are differentiators, imperatives, opportunities and indifferences. In this case the “importance” refers to the percentage of people who said that an image would make them more interested in visiting State. “Performance” refers to the percentage who indicated that State came to mind when they saw the picture. *The golf picture includes a saguaro cactus, which could be driving its connection with State. 3% 6% 6% 8% 10% 10% 10% 12% 13% 32% 36% 41% 54% 59% Reflecting Lake Havasu Falls Green Canyon with Train Fine Dining Hotel Pool Poppies and Lupines San Xavier Baseball Autograph Vineyard Couple Antelope Canyon Rock Tower with Climber Jeep on Rocks Grand Canyon Family *Golf % who said STATE comes to mind when they saw the picture of... Strategic Marketing & Research, Inc. Page 18 The “opportunity” lies in the images that are not currently strongly associated with State but are likely to increase interest in visiting the state. These are in the bottom-right quadrant and include the poolside, the lake, the poppy field, the fine dining table, Havasu Falls, Verde, and San Xavier. The images that are currently associated with State and generate interest in visiting are the Grand Canyon, the rock tower and Antelope Canyon. These are iconic images that should be preserved. These are round in the upper-right quadrant. The golf/saguaro and Jeep images are in the upper-left quadrant, which indicates that they are currently associated with State but are less likely to motivate travel. Images like these could be used as differentiators. The baseball and vineyard pictures are not strongly associated with State and do not have broad motivational appeal. These images are not strong candidates for inclusion in advertising. However, these could be used in niche promotions, especially if an iconic link such as a saguaro is added. This iconic cactus helped the golf ad to have a strong association with the state. The bottom line is that advertising should include a mix of iconic and new/ideal images. The images must represent the state but also pique new interest in visiting. Association with AZ Motivational Power DIFFERENTIATORS IMPERATIVES OPPORTUNITIESINDIFFERENCES These images are currently associated with Arizona and help to differentiate the destination from other competitors and should be considered for advertising. These images represent things that people expect to find in Arizona and which are existing strengths that should be preserved. This quadrant represents images that are not likely to be associated with Arizona and would not increase interest in visiting the state. These images represent things that people do not associate with Arizona, but would increase interest in travel and thus are areas for improvement. NARROW TRAVEL APPEAL BROAD TRAVEL APPEAL State Strategic Marketing & Research, Inc. Page 19 Activity Opportunities Effective tourism advertising will also showcase the destination’s activities that are appealing and generate interest in visiting the area. This research assessed activities in two ways: participation rates and identification of the best state in which to do the activity. The chart shows the percentage of the target audience that participates in each activity always or often while on a leisure trip. It also shows the percentage that selected State as the best state to participate in the activity. It seems that several activities represent opportunities based on high activity participation and low percentage who chose State as the best place to experience the activity. With the exceptions of experiencing the culture of the Old West and taking in Native American culture, the gap between participation and State selection is quite large. But this result is not unexpected. The fact that there are eight other states in the competitive set drives the low State selection rates. For more guidance on which activities represent opportunities for State advertising, we again turn to quadrant exercise. The activities with relatively high participation rates and relatively low identification with State represent opportunities for 5% 10% 13% 13% 7% 9% 29% 7% 28% 4% 4% 4% 4% 8% 9% 3% 8% 4% 11% 16% 13% 12% 5% 13% 7% 6% 9% 22% 26% 27% 31% 31% 32% 38% 39% 42% 44% 45% 45% 46% 47% 48% 49% 58% 62% 64% 65% 67% 71% 72% 72% 77% 78% 79% Skiing/cnowboarding Taking in Hispanic culture Playing golf Visiting a spa Attending a professional or college sporting event Going camping Taking in Native American culture Participating in water sports activities, like boating and… Experiencing the culture of the Old West Visit a vineyard or brewery Visiting a casino Participating in activities that are fun for children Attending a concert, theater or performing arts Viewing wildlife/birds Experiencing outdoor adventure, like mountain… Experiencing nightlife entertainment Visiting a museum or art gallery Experiencing fine dining Relaxing by the pool Visiting state/national parks Visiting small towns and rural areas Experiencing the unique culture of the area Shopping Visiting historical sites Driving on scenic byways or roads Experiencing unique local dining Touring/sightseeing Trip Activities % who always or often participate % who picked AZ as best place for activity Strategic Marketing & Research, Inc. Page 20 improvement and can be found in the bottom-right quadrant. Current strengths are defined by relatively high activity prevalence and relatively high selection of State as the best state for the activity. Advertising should work to reinforce these activities, which are found in the upper-right quadrant. The activities in the upper-left quadrant are those with lower participation rates that are associated with State. These activities differentiate the state and can be included in advertising, although they are not likely to spur new interest in visiting the state. Association with AZ Activity Prevalence DIFFERENTIATORS IMPERATIVES OPPORTUNITIESINDIFFERENCES These activities are relatively strongly associated with Arizona and help to differentiate the destination from other competitors and should be considered for advertising. These activities represent things that people expect to do in Arizona and which are existing strengths that should be preserved. This quadrant represents activities that are not likely to be associated with Arizona and have relatively low participation rates. These activities represent things that people do not associate with Arizona, but are done often on leisure trips and thus are areas for improvement. NARROW TRAVEL APPEAL BROAD TRAVEL APPEAL • Playing golf • Taking in Hispanic culture • Visiting a spa • Taking in Native American Culture • Experiencing the culture of the old west • Visiting state or national parks • Visiting small towns and rural areas • Visiting historical sites • Experience unique culture of area • Relax by the pool • Camping • Attending sporting events • Skiing/snowboarding • Visit a vineyard or brewery • Nightlife • Attend a concert or theater • Activities that are fun for children • Casino • Water sports • Touring/sightseeing • Scenic drives • Unique local dining • Fine dining • Shopping • Museum/gallery • Outdoor adventure activities • Viewing wildlife/birds Effective tourism advertising showcases the destination’s activities that generate interest in travel and differentiate the destination. State Strategic Marketing & Research, Inc. Page 21 Market Differences There were very slight differences across target markets relating to state image/personality ratings, destination selection criteria, and trip activities. The differences were so slight that advertising and branding strategies can be very similar across markets. In fact, the only notable differences between markets are in terms of familiarity and past travel/future travel intent. And these differences are what would be expected given the three target markets and their geography/access to State. The Southern California market has the highest rates of past State travel, but future likely travel is similar to the other markets. When it comes to rating State overall as a leisure destination, there is basically no difference between the Southern California and Midwestern audiences – and the remaining national audience rates State only slightly lower. This rating parity transfers into the previously reviewed specific imagery assessments, making it unnecessary to have different branding strategies for each market. This is not to say that some targeted messages could make sense – such as weekend getaways for the nearby Southern California market or flight deals for the more distant national markets. Additionally, past research has shown that State can be a tough sell to the Southern California audience due to a “been there, done that” mentality. It is important to give this audience new reasons to consider State for a leisure trip. 38%28%22% 46% 41%45% 83% 69%66% Southern California MW States (MI, MN, IL) Remaining National Familiarity with State by Target Market Somewhat familiar Very familiar 65% 43%38%31%26%21% Southern California MW States (MI, MN, IL) Remaining National State Travel by Target Market Ever Visited AZ Likely to Visit AZ in Next 2 Years There is no need to have completely different State branding strategies across target markets. But it will be important to show unexpected or new attractions to the California audience, which we know can have a “been there done that” attitude toward State. 28%31%25% 48%45%47% 76%76%72% Southern California MW States (MI, MN, IL) Remaining National State Rating by Target Market Good Excellent Strategic Marketing & Research, Inc. Page 22 That said, there are a couple of differences in the way the Southern California audience perceives the relative importance of destination attributes in the context of how well they feel that State delivers on these attributes. When using only the Southern California audience to perform the importance vs. performance analysis that results in the four marketing potential quadrants, we get almost the exact same result as when the entire target audience was included. The only differences are than enjoyable weather moved from the “imperative” quadrant to the “opportunity” quadrant and museums moved from the “opportunity” quadrant to the “indifferences” quadrant. Southern Californians have good weather themselves, so they rate State lower for having enjoyable weather. However, to say that it is an opportunity to improve the perception of State weather to Southern Californians is a bit misleading. Generally when attributes fall into this quadrant they do represent opportunities, but in this case weather should probably simply be ignored when marketing State to the Southern California audience. The fact that museums moved to the “indifference” quadrant is simply the result of Southern Californians putting slightly less importance on visiting museums during leisure travel. Performance Importance DIFFERENTIATORS IMPERATIVES OPPORTUNITIESINDIFFERENCES These attributes represent current strengths which help to differentiate the destination from other competitors and should be promoted. These attributes represent characteristics that people expect to find in a destination and which are existing strengths which should be preserved. This quadrant represents areas of weakest influence in that they are not motivators or differentiators but rather characteristics that are, at best niche motivators and at worst barriers to be avoided. These attributes also represent characteristics that people look for in a destination which represent competitive weaknesses and need improvement. NARROW TRAVEL APPEAL BROAD TRAVEL APPEAL • Native American culture • Old West culture • Outdoor adventure • Scenery • Parks • Easy to fly to • Historical sites • Relax by pool • Family destination • First class resorts • Value • Great for couples • Customized experience • Unique things to see & do • Relaxing • Casinos • Hispanic culture • Sporting events • Urban experience • Nightlife • Water sports • Golf • Wildlife • Shopping • Festivals • Museums • Exciting • Welcoming • Fun • Friendly • Cultural activities • Unique dining • Fine dining • Place to pamper • Enjoyable Weather Museums do not represent an opportunity for the Southern California audience. Enjoyable State weather would be a tough sell to the Southern California audience. Strategic Marketing & Research, Inc. Page 23 Appendix: Familiarity with States by Market State Remaining National Southern California Midwestern States Very familiar 22% 38% 28% Somewhat familiar 45% 46% 41% Not familiar 34% 17% 31% 100% 100% 100% California Remaining National Southern California Midwestern States Very familiar 46% 91% 41% Somewhat familiar 39% 8% 41% Not familiar 15% 1% 18% 100% 100% 100% Colorado Remaining National Southern California Midwestern States Very familiar 25% 21% 27% Somewhat familiar 41% 44% 44% Not familiar 33% 34% 29% 100% 100% 100% Florida Remaining National Southern California Midwestern States Very familiar 58% 30% 63% Somewhat familiar 32% 49% 32% Not familiar 10% 21% 5% 100% 100% 100% Hawaii Remaining National Southern California Midwestern States Very familiar 29% 43% 36% Somewhat familiar 43% 39% 37% Not familiar 27% 18% 28% 100% 100% 100% Nevada Remaining National Southern California Midwestern States Very familiar 35% 56% 34% Somewhat familiar 38% 35% 40% Not familiar 27% 9% 26% 100% 100% 100% New Mexico Remaining National Southern California Midwestern States Very familiar 14% 16% 14% Somewhat familiar 36% 35% 32% Not familiar 50% 49% 54% 100% 100% 100% Texas Remaining National Southern California Midwestern States Very familiar 25% 17% 19% Somewhat familiar 42% 39% 42% Not familiar 33% 44% 38% 100% 100% 100% Utah Remaining National Southern California Midwestern States Very familiar 14% 21% 11% Somewhat familiar 33% 42% 29% Not familiar 53% 37% 60% 100% 100% 100% Strategic Marketing & Research, Inc. Page 24 Appendix: Travel/Likely Travel by Market State Ever Visited Remaining National Southern California Midwestern States State 38% 65% 43% 61% 89% 63% 37% 35% 41% 75% 45% 83% 32% 51% 32% 50% 78% 50% 23% 25% 20% 42% 32% 38% 21% 32% 13% States Likely to Visit in Next 2 Years Remaining National Southern California Midwestern States State 21% 31% 26% 36% 70% 29% 21% 21% 21% 44% 24% 41% 26% 35% 27% 30% 48% 28% 14% 15% 16% 23% 17% 22% 14% 17% 13% Strategic Marketing & Research, Inc. Page 25 Appendix: Overall State Ratings by Market State Remaining National Southern California Midwestern States Excellent 25% 28% 31% Good 47% 48% 45% Fair 24% 21% 20% Poor 5% 3% 5% California Remaining National Southern California Midwestern States Excellent 54% 78% 49% Good 30% 19% 38% Fair 13% 2% 9% Poor 3% 1% 4% Colorado Remaining National Southern California Midwestern States Excellent 32% 30% 38% Good 46% 44% 43% Fair 19% 21% 17% Poor 3% 4% 2% Florida Remaining National Southern California Midwestern States Excellent 56% 36% 60% Good 32% 39% 30% Fair 9% 18% 7% Poor 3% 7% 2% Hawaii Remaining National Southern California Midwestern States Excellent 63% 70% 68% Good 27% 24% 21% Fair 8% 4% 10% Poor 2% 2% 1% Nevada Remaining National Southern California Midwestern States Excellent 38% 45% 35% Good 37% 37% 43% Fair 21% 15% 21% Poor 4% 3% 2% New Mexico Remaining National Southern California Midwestern States Excellent 20% 16% 17% Good 41% 42% 45% Fair 34% 37% 31% Poor 5% 5% 7% Texas Remaining National Southern California Midwestern States Excellent 24% 18% 21% Good 45% 39% 45% Fair 25% 31% 29% Poor 6% 13% 4% Utah Remaining National Southern California Midwestern States Excellent 18% 22% 16% Good 39% 41% 41% Fair 36% 30% 35% Poor 8% 7% 8% Strategic Marketing & Research, Inc. Page 26 Appendix: STATE Rating & Likelihood by Familiarity Overall State Rating Not familiar Somewhat familiar Very familiar Excellent 8% 21% 56% Good 41% 57% 36% Fair 41% 18% 7% Poor 10% 3% 0% Likelihood to Visit State Not familiar Somewhat familiar Very familiar Not at all likely 38% 14% 2% Not very likely 40% 30% 15% Somewhat likely 18% 36% 30% Very likely 5% 19% 52% Strategic Marketing & Research, Inc. Page 27 Appendix: Top of Mind STATE Image 9% 5% 0.1% 1% 2% 2% 5% 7% 11% 24% 28% 29% Other Miscellaneous (rivers,stream,variety,allergy free) Theme parks. Casinos (gambling) Fun (amazing, perfection, awesome, nice, entertaining, wonderful) Activities (swimming, dancing, hiking, zoo) Sports (baseball, basketball, skiing, golf…) Cities (Tuscon, Phoenix, etc.) Scenery (mountains, Arch Rock, flowers, plants, landscapes) Grand Canyon (canyons) Desert (desert state, desert/mountains, cactus, desert&hills…) Climate (sun, hot, humid, dry, warm weather) What comes to mind when you think of State? Strategic Marketing & Research, Inc. Page 28 Appendix: Attribute Importance vs. STATE Performance Image Attribute Overall Leisure Travel Importance (Top 2 Box %) Overall State Perceived Performance (Top 2 Box %) Recent Visitors (Past 5 years) STATE Perceived Performance (Top 2 Box %) Familiar But Non-Visitors STATE Perceived Performance (Top 2 Box %) Has enjoyable weather 84% 64% 67% 62% Is a fun place to visit 83% 65% 70% 61% Is a good value for the money 82% 61% 68% 55% Has beautiful scenery 80% 78% 81% 76% Is a good place to go for a relaxing vacation 79% 67% 72% 63% Has many unique things to see and do 76% 69% 73% 66% Is welcoming to everyone 75% 66% 69% 62% Warm, friendly people 75% 62% 67% 57% Is an exciting place to visit 75% 60% 65% 56% Offers activities that allow me to customize my experience 65% 62% 68% 57% Great vacation for couples 60% 62% 66% 58% Easy to fly to 60% 72% 76% 68% Offers something for the whole family 60% 65% 70% 61% Has many historical and cultural heritage sites 59% 68% 72% 65% Offers unique dining options 58% 57% 65% 50% Great for visiting state/national parks 57% 72% 74% 71% Is a good place to go to relax by the pool 55% 65% 69% 62% Excellent museums/art galleries/performing arts 54% 52% 59% 46% Offers a wide variety of cultural activities 54% 61% 65% 57% Offers fine dining options 53% 56% 61% 51% First class resorts & hotels 53% 63% 66% 60% Is a good place to go to pamper yourself 50% 53% 57% 49% Great for attending festivals/fairs/events 47% 50% 52% 48% Offers a wide variety of shopping opportunities 46% 54% 61% 48% Great for outdoor adventure, like mountain climbing/bicycling, hiking/backpacking, hunting and fishing 43% 70% 70% 69% Is a good place to enjoy the urban experience 42% 43% 47% 39% Great nightlife entertainment 40% 44% 45% 44% Great for experiencing the culture of the Old West 37% 71% 75% 68% Great for wildlife/bird viewing 37% 55% 56% 54% Exciting casinos 36% 30% 35% 26% Offers lots of water sports activities, like boating and river rafting 33% 50% 54% 46% Great for camping 29% 53% 50% 56% Great for Native American culture 29% 68% 72% 64% Great for attending a professional or college sporting event 29% 44% 50% 38% Great world-class spas or spa treatments 29% 53% 57% 49% Great for golfing 23% 57% 63% 52% Great for Hispanic culture 19% 49% 54% 46% Strategic Marketing & Research, Inc. Page 29 Appendix: Activity Prevalence vs. STATE Performance Leisure Trip Activity Overall % of travelers who always or often do these activities Overall % who said that STATE is the best place for activity Recent Visitors (Past 5 years) % who said that STATE is the best place for activity Familiar But Non-Visitors % who said that STATE is the best place for activity Not Familiar % who said that STATE is the best place for activity Touring/sightseeing 79% 9% 12% 9% 4% Experiencing unique local dining 78% 6% 9% 6% 3% Driving on scenic byways or roads 77% 7% 12% 5% 3% Shopping 72% 5% 8% 3% 2% Visiting historical sites 72% 13% 18% 11% 7% Experiencing the unique culture of the area 71% 12% 15% 11% 7% Visiting small towns and rural areas 67% 13% 20% 10% 7% Visiting state/national parks 65% 16% 23% 16% 7% Relaxing by the pool 64% 11% 18% 10% 3% Experiencing fine dining 62% 4% 8% 2% 1% Visiting a museum or art gallery 58% 8% 12% 6% 5% Experiencing nightlife entertainment 49% 3% 4% 2% 1% Experiencing outdoor adventure, like mountain climbing/bicycling, hiking/backpacking, hunting and fishing 48% 9% 13% 7% 5% Viewing wildlife/birds 47% 8% 12% 8% 4% Attending a concert, theater or performing arts 46% 4% 5% 3% 1% Participating in activities that are fun for children 45% 4% 7% 4% 1% Visiting a casino 45% 4% 5% 4% 1% Visit a vineyard or brewery 44% 4% 5% 4% 1% Experiencing the culture of the Old West 42% 28% 33% 27% 14% Participating in water sports activities, like boating and river rafting 39% 7% 11% 7% 1% Taking in Native American culture 38% 29% 40% 22% 17% Going camping 32% 9% 10% 9% 8% Attending a professional or college sporting event 31% 7% 10% 5% 5% Visiting a spa 31% 13% 16% 13% 9% Playing golf 27% 13% 16% 12% 7% Taking in Hispanic culture 26% 10% 13% 9% 7% Skiing/snowboarding 22% 5% 6% 5% 2% Strategic Marketing & Research, Inc. Page 30 Appendix: State Travel Party Who was in travel party for most recent overnight State leisure trip? % Spouse/partner 69% Children 24% Other family members 19% Friends 17% No one 8% Grandchildren 1% Other 1% Friends only trip 90% Other trips 10% 12%8% 88%92% 100%100% Male Female Friends Only Trips by Gender Other trips Friends only trip Strategic Marketing & Research, Inc. Page 31 Appendix: Demographics Demographics Total Recent State Visitors (past 5 years) Familiar Non- Visitors Not Familiar HH Income $50,000 to $74,999 45% 37% 47% 50% $75,000 to $99,999 28% 29% 28% 26% $100,000 to $124,999 10% 11% 10% 10% $125,000 to $149,999 7% 9% 8% 4% $150,000 to $199,999 6% 7% 4% 5% $200,000 or more 4% 6% 2% 6% Marital status Married 65% 67% 61% 67% Living with partner 7% 7% 7% 5% Single (never married) 20% 17% 23% 19% Divorced 6% 5% 6% 8% Widowed 2% 3% 3% 1% People in your household One 13% 13% 15% 8% Two 38% 39% 37% 39% Three 20% 23% 19% 19% Four 18% 14% 18% 22% Five 7% 5% 7% 8% Six or more 4% 5% 4% 4% Prefer not to answer 0% 0% 0% 1% Children under the age of 18 One 18% 15% 18% 20% Two 14% 13% 16% 11% Three 5% 4% 4% 6% Four 2% 2% 2% 1% Five or more 1% 2% 1% 1% None 61% 64% 59% 61% Last grade of school High school graduate or less 11% 8% 13% 13% Some College or Technical school 32% 29% 34% 32% College graduate 37% 40% 36% 36% Graduate work / advanced degree 20% 23% 18% 18% Ethnic heritage African American 6% 6% 6% 5% Asian-American 7% 8% 7% 7% Caucasian 80% 78% 80% 83% Hispanic/Latin American 6% 7% 6% 4% Native American 1% 1% 1% 1% Pacific Islander 0% 0% 1% 0% Gender Male 52% 56% 51% 49% Female 48% 44% 49% 51% Age 18 to 24 9% 8% 11% 9% 25 to 34 11% 12% 11% 9% 35 to 44 21% 16% 24% 23% 45 to 54 23% 23% 20% 25% 55 to 64 26% 29% 23% 24% 65 or over 11% 12% 10% 9%