Azerbaijan as a Tourism Destination - Term Paper Example

? Azerbaijan as a tourism destination Segmentation of Tourism Market Target Market From a tourism perspective all the market segments would be important. Hence it is believed that the company should adopt differentiated segmentation approach by which the company would be able to provide different marketing mix to the customers. For example, the life style and spending capacity of a domestic tourist belonging to a middle income group would be different from that of a foreign tourist belonging to the high income group; who might have come to the country for business purposes. Hence the foreign tourist could be a status seeker where as the domestic tourist could be an outdoor enthusiast. Hence, the foreign tourist may decide to stay in a five star hotel; whereas the domestic tourist may decide to stay in a hotel which is relatively less luxurious in nature. From the perspective of economics though, it has to be mentioned that a foreign tourist may decide to come to certain cities of a country on frequent basis and hence should given proper attention. On the other hand the domestic tourists are also of equal importance as the local population of a country also acts like brand ambassador of the nation. Overall the Azerbaijan must make sure that the products or services offered are as per the nature and the need of the target market segment. For foreign customers, including the people who would visit the country for business purposes there should be availability of five star and equivalent luxury hotels. However, the needs of the domestic customers should be kept in mind. The domestic customers may not have the same purchasing power or may not want to spend so much of money while travelling. Hence, hotels that are not so luxurious in nature should also be a part of the overall product mix. But, quality of the products offered in the both the cases hold not be compromised. Market Segmentation Ever before segmenting the market it must be mentioned that the segmentation has been done based on the criteria of actionable market segments such as discrete, measurable, viable, appropriateness. Discrete means that the segment must be separately identifiable by the marketer based on specific variables of segmentation. Measurable means that the main features of the segments must be measurable through appropriate market research data. Viable means that the segments must be viable enough to generate revenue in the long run. Appropriateness refers to the fact that the segments must be mutually contribute to the positioning of the service or producer offered by the producer. Azerbaijan is the largest nation in the Caucasus region. It is on the cross roads of Western Asia and Europe. It is the one of the largest population in the southern Caucasus. However, more importantly the country is the wealthiest population mainly due to the oil and gas reserves. Total GDP per capita of the country is $10, 340. The travel industry of the country started with various international travel agencies like AMEX or HRG. But now the country has other home grown leisure operators. The main travel season starts from June to August and New Year. Average time span of stay for foreign customers is seven to fifteen days. When it comes to foreign tourists Russia and Georgia are the two major sources of inbound arrivals due to the high level of business and neighboring locations (Czinzota, Ronkainen, Moffett, Marinova & Marinov, 2009). Domestic travelers (Azeri) travel in small groups which include children, parents and grandparents. The foreign tourists mainly include young professionals mainly from neighboring countries as well as people belonging to the upper middle class. The Geographic target market segments include both native and foreign citizens. Ideally the native citizens would most likely belong to the urban cities of the country and the foreign tourists would be most likely from countries like Russia, Turkey, and Georgia. Such tourists may visit the city for business and (or) vacation. For Demographic Segmentation people belonging to the age group of twenty five to fifty four should be targeted. Income wise for domestic tourists’ people belonging to the income range of $4,036 to $12,475 should be targeted. For foreign tourists, from developed countries like Russia or turkey the same income group i.e. people belonging to the $4,036 to $12,475 range should be targeted. For a country like Georgia, which is not as developed as the others mentioned before the target groups should be $4,035. This is the average income group for the people belonging to the higher income group. While psycho graphic segmentation it is quite unlikely that economy minded people or couch potatoes would be the target market segment. Mainly the outdoor enthusiast and the status seekers need to be targeted. (Figure: 1) From the above analysis it can be understood that segmentation carried out based on the basis of segmentation is Discrete, Measurable, Viable and Appropriate as both the market segment can be distinguished; can be measured based on specific market data; contributes to the positioning of the tourism industry of Azerbaijan and helps the marketer to generate revenue from each of the market segment through customized marketing strategy. Competitive Analysis Comparative Analysis As mentioned before Azerbaijan is on the cross roads of Europe and Asia. Hence various countries such as Russia, Israel, Dubai, Greece, Turkey, etc, are quite close to Azerbaijan. But as per the requirement of the study the three key competitors of Azerbaijan in the context of tourism has been chosen as Russia, Turkey and Greece and Georgia. The distance between Azerbaijan and the other countries is respectively 1197.82, 1,063.9 and 2,200.1 and 427.3. The factors that have in taken into consideration while conducting the competitor analysis happens to be ease of attaining visa, cultural tourism, infrastructure, diversity in tourist spots, resorts and hotels, involvements of governments, economic factors and potentiality as a business destination. In order to analyze the position of the competitors five point rating scale or likert scale as been used. Where 1 means very poor; 2 means poor; 3 means average; 4 means good; and 5 means very good. Detailed description has been provided later in the section (Henry, 2008). Turkey Greece Russia Georgia Ease of attaining Visa 5 5 5 5 Cultural Tourism 5 5 5 5 Infrastructure 5 5 5 5 Diversity 2 2 2 5 Resorts and Hotels 5 5 5 4 Government Involvement 5 5 5 5 Economic Factors 4 2 4 5 Business Destination 4 3 5 5 Just like Azerbaijan, Georgia is also a state in the Caucasus area. Studies have suggested that Georgia has been involved in the business transaction with various empires since the ancient age. The country has sizable resources of hydropower. Due to improved infrastructure and transportation Georgia has seen a boom in tourism and as a matter of fact the tourism of the country has been principal to the economic sector. Also the government of Georgia is actively involved in tourism as Department of Tourism and Resorts of Georgia actively engages and encourages the tourism in the country. In 2011 the number of people visited Georgia was 3 million. The figure went up to 4 million which shows the steady growth of tourism in the country. Another factor which needs to be considered is with the rise in tourists the government has increased the initiative in developing appropriate hotels and resorts as per the needs of the tourists. The country attracts both business and other kind of tourists. Also just like Azerbaijan the country has strong diversity in the sense that more than 20% of the territory of the nation is actually protected national parks. The ancient cultural heritage, artifacts and the overall culture of the nation is quite closely related to Azerbaijan. All these factors make it the biggest competitor of Azerbaijan. Just like Georgia Turkey, Greece, Russia is also competitors of Azerbaijan. Turkey has become a popular tourist destination for spa, health care tourism and off course culture. Last year the country had attracted 31.5 million foreign tourists. The country is also getting reasonable traffic from Spain also. The rise in the tourism industry is likely to continue as Istanbul is all set to host the 2020 Olympics. The contribution of the tourism to the GDP of the country is almost 20%. Almost six million people visited the country during the last year. The country has terrific tourism infrastructure; as it has over one sixty five star hotels. (Table: 2). Greece has often been tagged as the tourist magnet of the Europe. The contribution of the tourism to the GDP of the country is almost 20%. (Table: 2). However, presently the country has seen a dip in tourism mainly due to the dip in the economy. After the end of the Soviet rule the country has seen steady growth in the tourism and the growth is expected to continue as the country all set to host the 2014 winter Olympics. (Kolb, 2008). Although there is very little doubt over the fact all the four countries are competitors of Azerbaijan. But Georgia has to be the stand out one; simply because of the same cultural heritage, size of the nations and the diversity in the tourism industry. Also Georgia is the closest to Azerbaijan. SWOT Analysis Strengths Strong Economic Growth of the country is major strength. Also the government of the country is actively involved in the overall improvement and tourism. The geographical position of the country can help it get tourists from both Europe and Asia. The country has long and rich history and cultural implications. The country has the potential become a hub for the business activities in the area in the domain of oil and gas. Also unlike the competitors the country has diverse tourist destinations which have urban cultural spots along with some national parks (Brow, 2009) Weaknesses One of the major weaknesses of the tourism of the country is the complexities in getting visa. Also during the Nagorno-Karabakh War the tourism reputation of the country came under fire. Add to this the country does not have liberalizing tourist space business. Also the country does not have enough digital presence as compared to other competitors including the major one-Georgia. Opportunities There is ample opportunity for the company for Recreation tourism, Ecological tourism, Intellectual tourism, Active nature tourism. The country has various national parks just like Georgia. Georgia has already started putting in a lot of effort to improve and promote the concept of eco –tourism. As the world is also looking to combat the wrath of global warming promoting eco-tourism would help the nation from a tourism and destination branding perspective also. Also it would provide competitive advantage over Georgia. Threats Presence of countries like Turkey, Greece, and Russia is the major threat along with the disputed situation. Turkey is most definitely the biggest threat as it is all set to host the 2020 Olympics. But there is very little doubt over the fact that major threat comes from Georgia. Georgia is very near to Azerbaijan. Also both the countries have similar cultural and geographical heritage, Just like Azerbaijan, Georgia has diverse tourism resources. But unlike Azerbaijan Georgia has concentrated a lot more on developing and promoting the concept of eco tourism. Also the strong presence of Georgia on digital platform is major threat for Azerbaijan and in order to compete with Georgia, Azerbaijan has to improve the digital presence (which is quite weak) and increase involvement of the government in development and promotion of eco-tourism. Media Presence The rise in the use of online medium that includes web and social presence has meant that the tourism of the countries should have strong digital. When it comes to the main competitor of Azerbaijan, i.e. Georgia; the country has strong presence in digital medium. Georgia has a beautifully designed website which reflects key tourist spot and the cultural heritage of the nation. Also it lets customers to but Georgian apparels online. Apart from this the country has strong presence on social media platform which includes Facebook, Twitter, Pinterest, You Tube, instagram, Tumblr. Also the tourism department use blogging to express the latest tourism related developments in the nation. Turkey Tourism has profound presence on Twitter, Facebook and Pintereset. Just like Turkey Greece has a well designed website. The social media presence of Greece Tourism is a lot more profound as it has presence on Facebook, Twitter, Google Plus, YouTube, Four Square, Tumblr. Russia Tourism also has web presence. However the social media presence is not as profound as some of the others. Here it needs to be mentioned that the reason digital presence has been given emphasis is due to the fact that it is most likely that due to the rise in the digital medium the target market segment would go online to look for info or even to book hotels. Hence profound digital presence is of utmost importance. Destination Branding Branding of a tourist place is all about the perception of consumers about the destination. Destination branding is not just about developing slogan or a logo. It is all about covering the distinct elements of the specific destination in communicating these elements with the help of components, essence, personality and image of brand. Cultural Historical Places of Azerbaijan There are several cultural and historical places situated in Azerbaijan. Several interesting stories and facts have been associated with these places. First of all, Caravansarai Monument is a symbol of Azeri culture and history. Moreover, it is a significant part of Azeri heritage. This monument was constructed as the relaxation and resting place for the people of Caravans. This was build in order to provide a rest place for the people who used to pass through the Silk Road of Azerbaijan. Gelersen-Gorensen is an attractive historical ancient of Azerbaijan. Khansari, Silk Factory and Juma masjidi are the other historical aspects of Azerbaijan. Khansari is one of the popular tourist spot in the country. The place is famous for its superior infrastructure around the globe. Last but not the least; Shah Abbas Mosque, Light House, Old Prison and Nizami’s mausoleum are other interesting historical places of Azerbaijan. Brand Identity Tourism has become one of the major profitable industries around the globe. Azerbaijan is the official and geographical name of a country. In terms of uniqueness and resources, the country is enriched with its rich natural resources, ancient culture, unique lifestyle of people, and combination of ceremonies and traditions of different civilizations and culture. The country is popular for its scenic and natural beauty that attracts several outside people to visit this country. Though the country is one of the leading oil centers in the world, the tourism industry has played a significant role in the country’s GDP growth. Azerbaijan is one of the major ancient cite of culture. The open door policy by the government of Azerbaijan has helped the country to reform socially and economically. The local population of Azerbaijan has considered fire as their all mighty. The name of the country has originated from a Turkic name Azer that stands for fire. This name was used to describe this particular territory for century (Goltz, 1999). Depending upon the resources, uniqueness and cultural tradition and several competitive strengths the above logo can be developed as the brand identity of Azerbaijan. This logo will help to attract the tour loving individuals around the globe. Moreover, this logo has addressed the cultural belief and tradition that, it is the land of fire. Therefore, according to the objective of the study, a logo has been developed. The slogan of this brand logo would be Land of Fire. In terms of tradition and culture of Azeri people, it is known that Moon and Star are the symbol of God. People of Azerbaijan think that, it is very much identical from the above logo that, the symbol of fire and Star and Moon is addressing the culture and tradition of Azerbaijan. In an addition, Ancient Greek Mythology used to address that, the Prometeus had to bind with the Caucasus mountain chain according to the order of Zeus as he had taken fire from the all mighty. Moreover, he had brought this fire in order to develop the civilization of mankind. Brand Essence, Personality and Image Brand essence is a phrase that used to communicate with people depending upon the basic nature of a trade name linked with the products of an organization. The above brand logo will create effective brand identity in the mind of customers as the brand identity has been developed basis on the resources, competitive advantages and uniqueness of the territory. This brand identity will help the country to attract huge number of domestic and international travelers by developing huge brand essence. Brand personality of a destination territory can be defined as the perception of a group of human being about the suitability and effectiveness of that destination. The country already has created huge brand awareness in terms of tourism around the globe (Timothy, 2011). Moreover, it can be developed for the brand identity that the attributes and characteristics of the brand can easily increase the brand personality of Azerbaijan tourism. Moreover, traditional and resources that has been associated with the brand identity will effectively increase the brand personality in the mind of global customers. Brand image of a destination place can be defined as the attitudinal concept that used to consist in the mind of target consumers. Azerbaijan is a popular tourist spot. The tourism industry used to play a major role in the GDP growth of the country. The above discussed brand identity will effectively increase the brand image. According to the brand identity, the cultural factor has reflected from the logo of the tourism brand. It will act as a great catalyst in terms of global tourism. Depending on the attributes of the brand identity, it can be said that, the brand image of the territory can be increased effectively. Destination Trait and Potential Target Market The country is enriched several popular tourist spots, such as national parks, museums, galleries and many more historical spots. Zangezur National Park, Ag-Gol National Park and Hirkan National Park are the popular parks among the tourists. Walled city of Baku is another important tourist spot to visit. Gobustan Rocks is the example of traditional art and cultural landscape. Moreover, several museums and art galleries are the significant attraction for the several domestic and international tourists. The potential target market for the Azerbaijan is the middle class and upper-middle class people within the country who loved to tour. Several foreign tour groups and foreigners of upper income level with high standard educational background are also the potential target customers of the Azerbaijan tourist industry. Brand Recall Brand recall is very much essential for a particular product of an organization. Depending upon the brand identity, brand image and the resources of this tourist territory, the brand should be strong enough to recall within customer’s mind. Therefore, it is essential for the brand management of this industry to monitor and control all the aspects of brand. Any negative aspect would hamper the brand image. Therefore it is necessary, to take care of all brand aspects. According to world tourism survey, it is feasible that, the tourism department of Azerbaijan has made the tourism so effective in terms of cost (Timothy & Teye, 2009). This strategy has helped the industry to attract many visitors. Moreover, effective branding and positioning strategy and using the traditional social & cultural aspects in promoting the brand, has increased the brand recall in the mind of the target customers. Every single traditional cultural thing of the country is exist in the logo and the slogan of the brand. Therefore, this strategy and high brand value and brand image has increased the brand loyalty. Justification The existing brand identity and logo has been used in terms of brand development because the logo and the slogan of the brand can effectively attract the visitors for local territories and overseas. Moreover, a brand of a tourism industry can be successful when all the traditional and cultural aspects can reflect from that brand. The rand management of the tourism industry has effectively developed all the aspects that could be associated with the brand. Therefore, it can be said with sufficient justification that, the tourism industry has successful in terms of branding. The high number of domestic and overseas visitors can address that the industry has successfully achieved the branding objectives. In terms of positioning, the industry has implemented price and quality based positioning strategy. They have implemented reasonable pricing strategy for the purpose of tourism of every historical and traditional tourist territory. Implementation It has been discussed earlier that, branding of a tourist place is all about the perception of consumers about the destination. Destination branding is not just about developing slogan or a logo. It is all about covering the distinct elements of the specific destination in communicating these elements with the help of components, essence, personality and image of brand. Citizens Development Corps Three Stories to attract Target Segment According to the objective of the study, this part of the research will link people, culture and heritage with the stories that will be discussed in order to reveal the aspect of tourism industry of Azerbaijan. The Azeri culture is one of the oldest and traditional cultures around the globe. The local population of Azerbaijan has considered fire as their all mighty. The name of the country has originated from a Turkic name Azer that stands for fire. This name was used to describe this particular territory for century. The country is one of the most antique locations of human civilization. The Azeri people have experienced each and every stage of their historical social and cultural development. Time has preserved a bunch of architectural and ancient archeological monuments for the present generation. These things have helped the country to expose the story of Azeri culture and civilization in front of whole world. Azerbaijan is known for its fascinating culture and history. The story about interesting historical incidents about every aspects of country can be heard from each and every Azeri people, as they believe that their history, tradition and culture is unique from any other place. Surakhani is a traditional tourist spot in Azerbaijan. From the ancient time to present modern time it has been heard that, there is a site of eternal flame which is the sign of existence of their god. The Hookah is the symbol of traditional Azeri culture. The concept of Hookah is coming up from the ancient time period. There is a story that, the kings of Azerbaijan used to take Hookah to show off their standard and personality. Therefore, from that point of time, the Hookah pipe and stick is being treated as the symbol of traditional culture. In terms of historical heritage, it is feasible that, there are more than 6,000 architectural historical monuments in Azerbaijan. Moreover, the condition of natural climate is so unique that, has take an effective part in the Azeri tourism industry. The country is endowed with several monuments, natural landscapes ancient culture and modern tourist resort. Variety of wonderful ethnography, local craftsman’s astonishing skills and unforgettable impression is the example of effective historical impact. These things and several historical stories associated with the territory have increased the brand value and brand image of the tourism industry. Artifacts It is discussed earlier that, Azerbaijan is enriched with more than 6,000 architectural historical monuments (Suny, 1996). The open door policy o Azeri government has helped the country to reveal its antic historical developments in front of the whole world. Azerbaijan is rich of historical ancient architectural pieces of folk art along with the fine art works since the ancient times. Shrivanshahs Palace and Maiden Tower in Baku, Mimona Xatun mausoleums, developed by architect in Nakhichevan, Shaki Khan Place’s pictures on the wall and Natavan’s home are the example of anciebt historical artifacts of Azerbaijan. The above part was all about the artifacts of Azerbaijan. It is feasible that, the country is enriched with the several natural historical resources like ancient museum, galleries and monuments. There are several attributes that are being associated with the Azerbaijan tourist industry. The territory is famous for its developed oil and tourism industry. Visitors’ interaction with each other and the ancient attributes of the tourist point is the key brand touch point of the tourism industry (Kaeter, 2004). There are several key resource attributes of each and every destination of Azerbaijan. Several ancient traditional social and cultural attributes has increased the frequency of visitor’s influence to the brand touch points. Therefore, it is feasible that, being a large oil center on the globe, through the historical and cultural ingredients, the country has able to increase the popularity of tourism industry in front of global market place. Destination Characteristics In terms of uniqueness and resources, the country is enriched with its rich natural resources, ancient culture, unique lifestyle of people, and combination of ceremonies and traditions of different civilizations and culture. The country is popular for its scenic and natural beauty that attracts several outside people to visit this country. The Azeri culture is one of the oldest and traditional cultures around the globe. The local population of Azerbaijan has considered fire as their all mighty. The name of the country has originated from a Turkic name Azer that stands for fire. Azerbaijan is enriched with more than 6,000 architectural historical monuments. The open door policy o Azeri government has helped the country to reveal its antic historical developments in front of the whole world. Azerbaijan is rich of historical ancient architectural pieces of folk art along with the fine art works since the ancient times. In terms of quality and authenticity the country is popular for its huge natural resources. For an example, Azerbaijan is famous around the globe for its authentic wines, superior quality silks, quban carpets, several souvenirs and gold wares. Azerbaijan is the largest nation in the Caucasus region. It is on the cross roads of Western Asia and Europe. It is the one of the largest population in the southern Caucasus. Therefore, it is feasible that, the unique and quality historical and several natural resources have enriched the country. For this reason, the tourists around the globe try to visit Azerbaijan in order to make their journey memorable. Depending upon these destination characteristics, it is feasible that, the tourism industry of Azerbaijan has created huge brand appeal among the both domestic and international tourists. The effective brand positioning strategy has increased the brand value and brand image (Hudman & Jackson, 2003). Numerous cultural ancient artifacts have helped the industry to increase the brand recall in the target customer’s mind. Quality based positioning strategy depending upon the cultural and ancient resources of the country has effectively created huge brand appeal and brand value among the target audience. References Brown, L. (2009). Marketing and Distribution Research. London: Ronald Press Company. Czinzota, M., Ronkainen, I., Moffett, M., Marinova, S. & Marinov, M. (2009). International business (European edition).Chichester: John Wiley Goltz, T. (1999). Azerbaijan Diary: A Rogue Reporter’s Adventures in an oil-Rich, War-Torn, Post-Soviet Republic. New York: M.E. Sharpe. Henry, A. (2008). Understanding Strategic Management. Oxford: Oxford University Press Hudman, L., & Jackson, R. (2003). Geography of Travel and Tourism. Stamford: Cengage Learning. Kaeter, M. (2004). Caucasian Republics. New York: Infobase Publishing. Kolb, B. (2008). Marketing Research: A Practical Approach. London: Sage Suny, R. (1996). Amenia, Azerbaijan, and Georgia: A Country Study. London: DIANE Publishing. Timothy, D. (2011). Cultural Heritage and Tourism: An Introduction. Bristol: Channel View Publications. Timothy, D., & Teye, V. (2009). Tourism and the Lodging Sector. London: Routledge Appendices . Figure 1: Bases of Segmentation Figure 2: Greece Tourism Infrastructure Star rating Number Beds 5 star 176 64,913 4 star 994 176,631 3 star 1,804 163,077 2 star 4,460 231,333 1 star 1,677 57,298 Total 9,111 693,252 Read More