Nation-building - Research Paper Example

?Nation-building CONTENTS Intro-A Sleeping Tourism Giant 3 Philippines Profile 4 Geography 4 History 4 Economy 4 The Filipino Culture 6 Rebranding Proposal 8 Consumer Segments to Target 9 Marketing Strategies 10 Marketing Challenges 13 Conclusion & Recommendations 14 References 15 Intro-A Sleeping Tourism Giant Located in the south east of Asia with Manila as its capital city, Philippines comprises of as many as 7107 islands in the Pacific Ocean. This is a nation comprising of myriad of cultures and influences. Apart from the influence of its neighbouring Asian countries it is largely influenced by the western world as well. These influences have been majorly derived out of previous colonization and are mainly impacted by the cultures of Spain, United States and minor influences from Latin America who were under the colonization of Spain during the same period of time as Philippines was. The tourism sector has been identified as having the maximum potential in the country. Flourishing since 1970 till the beginning of 1980, tourism has seen a decline thereafter since the middle of 1980, with a dramatic fall in the number of tourist visits to the place and a declining length of stay of these tourists too. However, the industry has shown a strong growth since 1990, with the rise in level of incomes in the country and its adjoining regions (Roe, Ashley, Page & Meyer, 2004, p.10). The project seeks to rebuild the image of this place such as to attract foreign direct investment in the sector and consequently increase revenue from the sector too. This is done by making a thorough analysis of the history and background of the place followed by studying the cultural dynamics making up the people of the nation. The project identifies the customer segments which it wants to target such as the foreign investors, tourists and businesses with description of the demographics and psychographics of the market. Depending on the target market it develops a branding campaign along with the marketing and communication strategies which can be adopted. In this regard, external analysis of the social and political activities around the world is studied which could pose serious challenges to the rebranding campaigns of the place too. Philippines Profile Geography The Republic of Philippines (13 00 N, 122 00 E) is located in South Eastern Asia between the South China Sea and the Philippines Sea, in the east of Vietnam. The country has tropical marine climate with mostly mountainous terrain and coastal lowlands. The country is an agglomeration of more than 7100 islands. However, only 11 of them are populated. The capital is Manila. History The Republic of Philippines was a Spanish colony during the 16th Century and was conquered by US in the 20th century. In 1935, following the Spanish-American war, Philippines became a self governed commonwealth. During World War 2, the islands fell under the Japanese. From 1944-45 US and Filipinos joint forces fought collectively; and in 1946 as the Republic of Philippines. The Republic of Philippines (locally known as Pilipinas) is made up of 80 provinces and 120 chartered cities. Since the month of June 2010, Benigno Aquino is the president. Economy The Republic of Philippines was once one of the best economies in the Asia Pacific region. However, currently the country’s economy is suffering from high poverty rate which is a result of lack of population control and family planning measures. The republic of Philippines has a total population of 93.6 million as per UN data in the year 2010. The official language is called Filipino and English. Majority of the population are Christians. In Asia, The Republic of Philippines has the highest birth rate leading to a high population growth rate. At this rate, the forecast is that the population will be doubled within just three decades. The economy is also crumbling under government deficits and is heavily dependent on the remittances sent by the Filipinos working abroad. The country’s Gross Domestic Product or GDP grew by 7.3 percent in the year 2010. The main reasons for such growth was an upward trend in consumer demand, election related expenditures and a spur in export investments. The main export commodities are electrical equipments, clothes, live animals, food items, chemicals and timber products. The effect of the recessional pressures was less drastic in case of Philippines due to minimal exposure to the securities market, less dependence on export demands, remittances from around four to five million Filipinos working abroad, relatively stable domestic consumption pattern and the robustness of growth in the business process outsourcing industry. The average economic growth of Philippines was 4.5 percent during the Macapagal-Arroyo administration. However, poverty still remains a problem due to increasing rate of population growth unequal income distribution. Currently, the target of the AQUINO administration is to reduce government deficit (which is currently 3.9 percent) to 2percent by the end of 2013. The first budget by the Aquino administration concentrated mainly on health and education sectors. It also included cash transfers for the poor (this process had certain conditional terms) and other expenditures related to social welfare. For infrastructural financing, the government at present is relying on private sector funding. As per the estimates in the year 2010 the Gross Domestic Product (Purchasing Power Parity) was $351.4 billion US dollars, whereas it was $327.4 billion US dollars in 2009 and $323.9 billion US dollars in 2008. The per capita Gross Domestic Product was $3,500 in the year 2010. The three main sectors contributing to the Gross Domestic Product in 2010 are: agricultural sector, industrial sector and services sector. The services sector contributed 55.1 percent, industrial sector 32.6 percent and agricultural sector 12.3 percent. The Gross Investments in 2010 formed 20.2 percent of the Gross Domestic Product, although in terms of investments Philippines is internationally ranked 115. In terms of Gross Domestic Product growth rate, the Republic of Philippines ranks 31 in the world. However, in terms of Gross Domestic Product per capita it ranks 163 in the world. Poverty is the currently the main challenge for Philippines. As per the estimates of 2006, as much as 32.9 percent of the Filipino population is below the poverty line. The main reason can be attributed to the unequal distribution of wealth. As per the estimates of the year 2006, the minimum income or consumption rate of households was 2.4 percent, whereas the maximum was as high as 31.2%. The country has a total labour force of 38.9 million and ranks 15 in terms of labour force availability internationally. The Filipino Culture Reflecting a multicultural region, Philippines are dominated by Mexican, Spanish, Bornean and Asian cultures. People living in the region are mainly originated of Malayo-Polynesian cultures. However, there is no dearth of Spanish, Mexican, Chinese and Austro-Melanesian people as well. This is primarily because of its geographic location in the southeast parts of Asia. However, it cannot be said that Philippines is a reflection of the Asian culture. It bears glaring similarity with the cultures existing in the pacific islands as well. This is mainly in regards to its religion ethnicity, languages, traditions and food. The above aspects speak volume of the wide variety of culture that prevails in the region. This is one factor which can be used for promoting tourism in the region. The fact that it provides the taste of different cultures across the globe can be made the reason for tourist attraction from different places of the world. The Philippines culture is one which separates them from the rest of the world. The lively and colourful culture is unique of the place and makes it stand out among all nations. The artistic and traditional values of the place are found in its museums, galleries, churches and amidst the streets of the nation. Most of the provinces of the place have their own folk dances which are a reflection of the ways they demonstrate their beauty, elegance and the way they do things. Their paintings are true depictions of the events and incidents which have taken place in the history of the country. Known for its celebrations, festivities and fiestas, the country of Philippines celebrates each day and that is what attracts travellers and tourists from across the globe (PINAS, 2002). It can be said that the Filipino culture is a mix of all different cultures. Divided geographically and culturally across regions, each of the nations’s religions bear recognizable and distinct traits and dialects. Despite the differences, hospitality is a trait which is displayed by all. Very seldom can such degree of hospitality show itself in other nations. The people particularly appreciate and invite the company of the western people visiting their place. They are also highly emotional and passionate about the way they live or exist. This is primarily because of the place’s long term association with Spain that they depict a way of living which seems more Latin in nature than Asian. The people’ glaring display of affection and hospitality are some of the aspects which have taken the tourism sector far above most places of the world. The cultural diversity has also gone a long way in developing the tourism industry of the nation. Moreover this is also one area which could be developed even further to flourish. Tourism could be the main driver of the country’s growth and development and determinant of future success (Tourism Promotions Board, n.d.). Rebranding Proposal The Republic of Philippines has rich cultural and natural assets. However, the marketing and positioning of Philippines has not been handled efficiently. The recent rebranding attempt ‘Pilipinas Kay Ganda’ lacked a strategic approach. Particlurly the communication strategies used lacked appeal and a key limitation was not enough use of social media. The rebranding strategy requires a focus and reorganisation of the communication strategies used. Word of mouth marketing is the best vehicle for the promotion of tourism. In today’s world social media is the main catalyst for word of mouth marketing. The advertising agency of the Department of Tourism of Philippines, did not integrate the social strategies which lessened the appeal of brand Philippines. Branding is a necessary part of marketing any product, service or idea. Without branding, the emotional relationship building is not done. Customers don’t get associated with the brand, therefore brand retention decreases. This is more important in case of tourism industry, since, here the appeal is to foreign consumers; and the marketing efforts should not be restricted to informing the tourists, but also should attempt to give a feel of brand Philippines. A major glitch in ‘Pilipinas Kay Ganda’ campaign was that the public involvement aspect was completely overlooked by the ad agency. It left out the wisdom of the general population, which could have been the most important resource of the ad campaign. The rebranding of Philippines should be done keeping the previous tourism campaign failures in mind. Firstly, consultation with private tourism stakeholders should be done before shaping the brand. Secondly, public opinion should be gathered via social tools like online surveys, blogs and websites and the recommendations should be critically analysed to shape up the marketing tactics. Thirdly, the campaign should not only highlight the destinations of tourism, but also the infrastructure, hospitality and people. The Department of Tourism has set a target of 10 million international tourists by the end of 2016. The secretary of the Department of Tourism Mr Ramon Jimenez feels that The Republic of Philippines has immense potential to attract international tourist; therefore this target is realistic and achievable. The rebranding strategy should be highlighting the experience of the journey, instead of the details. The behavioural and psychographic variables of the target consumers are of prime importance to successfully implement the rebranding plan. The opinions of domestic tourist are important in this case. Research should be conducted so that the dimensions that are of major attraction are highlighted in the tourism campaign. The target should be to position the Republic of Philippines as one of the leading destinations of the world. Highlights of the country’s culture, customs, practises, hospitality, warmth combined with the natural treasures should be the main aim of the campaign. The tourism industry mainly thrives on the momentum and energy of the people involved. Optimally channelizing this energy should be the main strategy of the campaign. Also the social conditions may pose a challenge regarding the tourism industry to flourish. And there can be issues with foreign investments. The government should undertake excessive marketing campaigns for promoting amongst the locals the benefits of positioning Philippines as a tourism destination and promoting the conducts and hospitalities that a tourist destination should have. Consumer Segments to Target The Department of Tourism has established a target of 10 million international tourists by the end of 2016. To achieve this figure realistically the marketing campaigns should be preceded by proper segmentation and targeting of international tourists. The segmentation variables are as follows. : Retirees from industrialized nations- Retirees are forming a significant part of the international tourism groups. The leisure travel campaigns should be targeted towards the retirees. Ordinary tourists and backpackers- This is ordinary tourists forming a considerable part of the total tourism population. Mass Tourism programmes are the best strategy to target this segment. Students who wish to learn English- The official languages of The Republic of Philippines is Filipino and English. A considerable number of students who wish to learn English may arrive in Philippines. They should also be considered under the target market. Trekking- The Republic of Philippines also has a mountainous terrain. Therefore a considerable number of the tourism population can be trekkers. Mountain trekking programmes should be highlighted in the campaigns. Marketing Strategies An essential aspect of development of Philippines as a tourist destination involves an ideal marketing strategy that can help rebrand the tourism in the nation. Rebranding assumes significance considering the fact that the last branding exercise of the nation with the program “Pilipinas Kay Ganda” was considered to be a total failure in the market and was stated as highly confusing. In this regard a rebranding strategy can help the nation to revive interest in the target market segment about Philippines as a destination for tourism (Galarpe, 2010). A rebranding exercise would essentially help in reviving the tourism industry in the nation which is approaching a decline level in the product life cycle to its growth phase (Winer, 2007, p.188-192). A rebranding strategy for tourism in Philippines would essentially involve changing the positioning of the nation as a tourist destination among the members of the target market audience. In the regard the role of integrated marketing communications plays a vital part in the development of tourism in the nation. The rebranding exercise would involve creating a new program that would be named ‘Amazing Philippines’. The program would essentially try to rebrand and reposition Philippines as a destination of rich cultural diversity and natural scenic beauty. Specific focus would be made towards projecting Central Philippines as a tourist destination. The first step towards rebranding would be to set up proper infrastructure and ensure polices that help project the nation as a safe for foreign tourists. Infrastructural developments include promoting theme parks, cultural festivals and other festivities as major attracting elements to the nation. The country would essentially strive towards projecting it as a cultural tourism destination rather than with artificial man made tourism aspects. The tourism department would essentially try to attract foreign companies having business in the field of tourism. This would not only help generate employment but would also contribute towards greater promotion of Philippines as a tourism hotspot. Another essential step in the rebranding exercise is to formulate a promotional strategy for communicating the destination. An integrated marketing communications strategy would be used while using marketing communication channels like electronic and print media to reach out to the target market audience. Advertisements showcasing the rich cultural heritage and natural diversity of the region would be innovatively highlighted in order to showcase the destination as a paradise for tourists from across the globe. The advertisements would also have clippings of the various destinations that would help in showcasing the natural diversity and potential of the region. In addition to advertisements on television, the promotional strategy would also include putting up exhibitions in the target market nations, participating in tourism fairs across the globe and showcasing the new face of the tourism in the nation. The tourism department would also organize functions and festivals that would help generate awareness among the target market audience. The tourism department would also look towards having strategic partners that include tour and travel companies, airlines that could be used as partners to reach out in an effective manner to the target market audience. A monthly edition of a special magazine would also be launched in order to communicate the latest developments and new programs and festivals to be held in the country. In addition to the traditional channels of communication, the rebranding exercise would also be extensively promoted through the online channel. This would include creation of a new web page with the theme of Incredible Philippines. This site would have all the information for tourists as well as links for online booking of hotels as well as flights so as to offer a complete source of information for the tourists planning to come to the country. The tourism department would also search engine optimisation and other web analytics programs to improve the page rank and visibility. Banner and spot advertisements would also be posted various web pages so as to have a better visibility in the web. In addition to this social networking sites like Facebook and Twitter would also be used to reach out to a large section of the target market audience. This assume significance considering the fact that internet has evolved as a good medium for communication and the considering networking sites are extensively popular among the members of the target market audience. All these strategies would not only help improve the positioning of the nation as a tourist destination but would also help in making Philippines a preferred choice for tourists across the globe. Marketing Challenges The rebranding campaign of the Republic of Philippines is posed for certain challenges. Before launching the campaigns a strategic analysis should be done. This may include and analysis of the opportunities and threats of the marketing campaign. The main challenge that the government would face would be in terms of infrastructure. The recent government budget has approved various grants, social welfare projects, but the infrastructural projects are mainly dependant on private sector funds. However, well developed infrastructure is the generic technical requirement for any country to flourish as a tourism destination. Also it should be noted that while the marketing campaign is carried out, the infrastructural facilities and promises should not be unrealistic. If they are unrealistic, then this will lead to disappointment amongst the tourists, a phenomenon that is equivalent to post purchase dissonance. Finally the political stability, especially in the South is also an issue for the country. Also the lack of awareness regarding what tourism industry development can achieve for the economy has led to some serious perception problems. Tourists are still viewed as a target for earning money, not an opportunity for business. Thus, tourists sometimes go through some nasty experiences with the locals which malign the country’s image. The country needs a bit of modernisation in terms of infrastructure. There are still some struggling internet cafes and no significant development since 1984. There is a lack of overall co-ordination amongst the various stakeholders involved with the country. Without the active participation and assistance of all the parties and players, else it won’t be possible to sustainable promote Philippines as a tourism haven to foreigners. Conclusion & Recommendations The Republic of Philippines has immense potential in terms of being a tourism giant internationally. Island tourism is increasing at a fast rate and the position of the Philippines islands is also strategically advantageous. Topping it is the language advantage- English being one of the official languages. Besides the unique treasures of the Filipino culture as well as the natural assets of both mountain and sea beach is a key strategic point for marketing the country as an attractive tourist destination. However, for successfully marketing The Republic of Philippines, the advertising agency and the Department of Tourism needs to capture the vibes of tourism marketing. It should concentrate at the fact that only natural resources or geographic diversity is not enough for the country to be positioned as a tourism giant. The essential part is forming an emotional relationship with the target audience, so that they keep coming back. Asia has seen a number of successful tourism campaigns like Malaysia- Truly Asia, Seoul- Infinitely Yours and The Incredible India campaign. The department of tourism should take cues from such marketing campaigns and try to create an original brand that is strengthened with its unique brand salience and sense of association. Also in the wake of the global financial crisis, the leading tourism industries have suffered. This global slowdown is also a challenge that the Department of Tourism will encounter. Also the outbreak of influenza virus and H1N1 flu led to further negative trends. These necessitate a strong and strategically planned rebranding activity. References Galarpe, K. (2010). 'Pilipinas Kay Ganda' logo lifted from Poland logo? | ABS-CBN News | Latest Philippine Headlines, Breaking News, Video, Analysis, Features. Retrieved December 10, 2011 from http://www.abs-cbnnews.com/lifestyle/11/18/10/pilipinas-kay-ganda-logo-lifted-poland-logo. Winer, R.S. (2007). Marketing Management, 3/E. Pearson Education India. Roe, D., Ashley, C., Page, S. & Meyer, D. (2004). Tourism and the Poor: Analysing and Interpreting Tourism Statistics from a Poverty Perspective. Retrieved on December 10, 2011 from http://www.propoortourism.org.uk/16_stats.pdf. PINAS. (2002). Philippine Culture. Retrieved on December 10, 2011 from http://pinas.dlsu.edu.ph/culture/culture.html. Tourism Promotions Board. (No Date). The People. Retrieved on December 10, 2011 from http://www.dotpcvc.gov.ph/Visitor%20Information/people.html. Dhar, P.N. (2006) International tourism : emerging challenges and future prospects, Kanishka Publishers. Frangialli, F. and Organization., W.T. (2004) International tourism : the great turning point, World Tourism Organization. Gee, C.Y., Sola?, E.F., Organization., W.T. and Network., W.E. (1999) International tourism : a global perspective, World Tourism Organization. Godfrey Harris, K.M.K. (2010) Promoting International Tourism, Atlantic Publishers. Lanfant, M.-F. (1995) International tourism : identity and change, Sage. Reisinger, Y. (2009) International tourism : cultures and behavior, Butterworth-Heinemann. Vellas, F. and Be?cherel, L. (1995) International tourism : an economic perspective, St. Martin's Press New York. Read More