Rio de Janeiro Carnival - Tourism Report - Case Study Example

Name: Institution: Title: Rio de Janeiro Carnival Professor: Course: Date of Submission: Table of Content Executive Summary……………………………………………….…………3 Introduction…………………………………………………………...……..4 Supply Side Analyses…………………………………..………..…….…….4 Demand Analysis……………………………………..…………..….………5 Competitor Analysis………………………………………………....……… 7 Brands Marketing Strategy …………………………………..…………..…..8 Demand management ……………………………………..………..……….10 Demand Management………………………………………………………..13 Conclusion………………………………………………………….………..14 Bibliography…………………………………………………………………16 Executive Summary Tourism is one of the income generating activities in most established, tourism destination across the globe. Visitor consumption is among the most comprehensive cumulative illustrating economic relevance on what tourism products can contribute to the location economic and social elements. In our report we focus on Rio de Janeiro Carnival as a tourism product attracting both domestic and international markets. Increasing demands from customer calls for increased measure in to meet their needs, while the businesses remain sustainable both for its own benefit and that of the surrounding society. Realizing a stable performance over the years has generated into pressure that destination marketing managers have a responsibility in promoting their products to win over customer base over their potential rivals. Countries festival events for instance, have created destinations which are highly attraction sites with an aim of being the top earner globally. These destinations may be physical or social. Certain events and festivities have captured the tourist with the need to not only participate in the commonly known sun, beach and wildlife tourism but also engaging in cultural tourism. Rio de Janeiro carnival festivity is among the leading festivity globally that has attracted a huge number of tourists with its unique Brazilian culture portrayed Introduction Rio de Janeiro Carnival is famous in towns and also villages all over Brazil. It normally takes place during summer’s peak. Rio de Janeiro has recently been classified as being the centre for carnival festivals in the whole world. This carnival festival is not only the largest carnival but also a yardstick by which every other carnival festival is being compared with. The carnival is a 4 day quite wild festivity that takes place during Easter. Usually it starts on a Saturday and ends on Tuesday with a start of lent on ash Wednesday followed by abstaining from all worldly pleasures mostly the human body ones. Beginning by crowning of the Fat King known as Crook (2005) he is presented by a giant key made up of silver and gold by the city mayors. The key element to this festivity is the fact that it ensures the provision of entertainment for a large group of people in the whole world also it provides an opportunity for tourists to learn the existing Brazilian culture carnival being part of it. It is said too be a joyful event where the people dance, sing celebrate during the samba night where samba music is played the people dress up in costumes. The ingredients of this festivity include favelas or shantytowns where houses are made up of cardboards with very poor living conditions whereby residents are members of the samba school. Gays and the famous drag queens become part of the festivity. Rio de Janeiro Carnival Marketing challenges Tourism in Brazilian industry benefit from a long term exceptional health until 2001, when it was hit by recurring events in the market location of the Rio de Janeiro Carnival product (Hanna, 2001). For instance the attack of September 11th, the crisis faced by its immediate neighbor Argentina and the uncertainties in particular the political instability triggered by victory of Luis da Silva in the general election held in 2002. In addition, Brazilian citizen lost purchasing power driven by increased recurring cases of financial turmoil creating a slowdown in the country’s economy. This drastically affected domestic market as potential customer witnessed sharp drop in the availability of extra disposal income responsibly derived from economic difficulties. The situation was even worse during the re-known global financial turmoil an event that started mid 2008. Supply Side Analyses The drop in the overall tourism industry, within the Brazilian state as a tourist destination over the last decade pending to the critical circumstance unfolding both internally and externally, created a reduced demand, with the hotel industry being the worst hit, with tourism business in major towns such as Sao Paulo among other cities facing their unwanted state ever. However, Rio de Janeiro Carnival product being a cultural event and with its roots firmly held among the local market it gained face rapidly attracting majorly the domestic consumers as the product marked part of their traditional routine (Milla, 2004). Rio De Janeiro Carnival festival supplies one of the traditional bands parading all along downtown the group is famously known as the Cordao Bola Preta, another band present during this product offer is the Banda de Ipanema, a band that will entertain customers for three identified days in Ipanema, this will provide an experience of a life time as the band will be accompanied by a huge crowd with many gay revelers. These are part of entertaining activities that will be present during the forth coming event among many others. Accommodation This has to be done up front, the Rio De Janeiro Carnival product offers accommodation packages with customers advised to book earlier. These will not only create an easier convenient accommodation arrangement but it also comes with reward as those who book earlier lands a product package at a discount. Rio De Janeiro Carnival planners have made necessary arrangements with hotels securing accommodation for their clients; this is in consideration that during carnival festivals rent and general accommodation fee are high and event that has created prompt measures to effectively handle the accommodation issues with the attention it deserves. Demand Analysis Many cities across the world use events while advancing urban life. Often this is done on affixed periods at identified dates. Rio De Janeiro Carnival products are designed to play a role of transforming the normal routine within the identified city. The event product is established to create an opportunity rather than burden to the local dweller. The product presents a variety of impotence to the economy, culture and urban surroundings. The Rio De Janeiro Carnival product is an important part of local dwellers culture. It is a traditional party known worldwide and has a strong connection with other cultures in particular to those of law income groups (Hanna, 2001). According to Milla (2004), the Rio De Janeiro Carnival product is one element that attracts a huge number of tourists to the city. The research results reflect a bout 3,000,000 non-domestic participants keep in touch to almost 1/ 6 of the grant total tourists per annum. The occupancy rates for hotels have increased tremendously over the years with rates reportedly reached 90%. There are positive indications on improving economy in the city, when it concerns temporary job creation the event creates an estimated 1600 jobs during this even in connection to the Rio De Janeiro Carnival product party. In addition, about $ 200 million in the relevant region market stand to benefit, with a bout half of the grant total spend amount done in the city alone. The hotels accommodating the outsiders are located along the coastal region of the city a way from the event happening area. At least 75% of the foreigners are accommodated in these areas, during the festival they have to commute to the centre to physically witness the parade. Competitor Analysis The likely competitors of the Rio de Janeiro Carnival festival in the world include the mud festivity in Boryeong on Daecheon beach in South Korea that allows the highly grown-up individual to embrace their internal child. The event allows an individual to smear mud all over his body. The mud is believed to contain minerals that it not only prevent wrinkles but also remove excess oils in the human body. There are other competitive product brands that include mud body painting, mud contest as well as mud sculptures. The second potential competitor is the famous Oktoberfest beer festival in Germany which is the greatest fair in world with which over 6 million guests visit the beer tents yearly (Richards, 2007). The Rio de Janeiro Carnival third competitor is the running of the bulls in Pamplona in Spain widely known by the locals as being the festival of San Fermin because of its location. This is globally recognized and it has developed excessively and recently attracts thousands who wants to participate in the bull running. The festivity is widely organized and acts as a tourist attraction activity earning a lot for the country. The fourth potential rival product is the Chinese New Year where millions come out to the street to celebrate. Traditional red clothing is worn intended to scare away evil spirits. During these festival events stunning fireworks displaying lights often done during evening prior to the New Year, these four brands have continually created an increased competition as most of them are set targeting same tourist market share internationally. This calls for necessary measure for the respective managing team across the tourist destinations as tourism destination brands. Brands Marketing Strategy Application of marketing principles in tourism is largely carried out by private investors seeking to communicate and sell out their products and service to the targeted customers during these annual events. Rio de Janeiro Carnival festival for instance, faces other competitors as mentioned above. Often the event programmer creates these brands as amalgam consisting different basics of tourism that are sold out through advertising and promotional events in creating increased awareness. Media advertising Most of this Rio De Janeiro Carnival brand rivals have introduced advertising strategies that target customers across the global market thanks to introduction of globalization of intercontinental trading (Milla, 2004, pg 144). All four potential tourism event planners have developed strategic promotional activities placing media as their main campaigning machine. In almost decade media advertising of these tourism products has grown tremendously with the internet based websites such as Face book and Twitter taking center stage in selling the brands across the continents. This is considered the most effective way both when considering cost cutting measures and achieving the mass numbers targeted in the product offer. Environmentally responsible marketing refers to customer satisfaction needs, desires wants while embracing measures of prevention and conservation of the natural environment. in a typical marketing strategy, Rio De Janeiro Carnival product marketing team has to design an environmentally responsible marketing plan that takes in to account a manipulative measure that incorporates the for elements that are identified in the marketing mix this include product, price, promotion and distribution (Baum, 1999, pg. 27). For instance, the Rio De Janeiro Carnival product marketing managers have to strategically plan on offer the tourism services in a manner that builds superior environmental benefits through reduced waste, improved energy efficiency while reducing release of toxic emissions. The Rio De Janeiro Carnival a frequent annual event stands for significant stimulus and prominent forms within development and marketing strategy of the destination. The role and influence of the destination as a tourism product serves to create awareness, the promotional activity offer the product to capitalize on the opportunities from sale of ecological services that Rio De Janeiro Carnival posses. Positioning of Rio De Janeiro Carnival product in Brazilian capital creates a better attraction that boosts ultimate sales income. The carnival capital is widely known for its location that provides an investor stable and friendly environment. The provision of harsh and tough policies by the Brazilian government has placed the carnival product as being highly competitive hence allowing it to flourish on the global tourism market. Due to the increasing competition between cities as tourism products, and further increased globalization, the idea of marketing Rio De Janeiro Carnival as tourism product creates a general concern. In our report the Rio De Janeiro Carnival marketing team proposes to define Carnival as a place product, and further develop this tourism site to suit the demands of the already identified customers. This product marketing aims to attract tourists, investors among other potential visitors while maximizing on both social and economic efficiency functions of the this region. Often this has to be designed to meet the already established goals (Richards, 2007, pg.78). This is done in considering whether the targeted place ability prove its self and succeed in the increased competition, nevertheless the main concept is to market the destination advantages by use of different strategic and effectual manner. As a strategy to promote environmental sustainability, pricing measure are developed in a manner that encourage pricing decisions which has to remain sensitive as products associated with greater environmental damage should cost higher. This will prove to be sensitive to customers as the will keep comparing quality and value in Rio De Janeiro Carnival products to the immediate location. Demand management Brazil tourism promotion developed in 2003 to fully work on measures of endorsing Brazilian products, services and destinations to other countries by promotional activities, marketing and product-service advertising. EMBRATUR is to promote the country tourism to the international market as a destination for travelers. The initiation of EMBRATUR has worked in realizing the government objectives in promotional plan which calls in creating awareness about the tourism destination and attracting more tourists. For instance, the marketing team initiated promotional target for the US segment winning an increased number of tourism entering the country to a higher figure estimated to be 9 million attracting sales revenue of a bout $ 8 billion by 2010. This was one typical example for that time. There are other EMBRATUR offices on the global market including France and Lisbon (Brebbia, 2010, pg 93-95). Tourism Market in Brazil To start with, the product Rio de Janeiro Carnival is a well established brand within Brazil which is the hosting country and neighboring countries in both north and South America among other countries in the world. Event promotion is not a new concept, since resorts among many other areas that developed large tourism industries in the nineteenth century (Kotabe, 2001, pg. 98). The initial strategy in promoting this event was achieved through use of guide books, posters and brochures describing the event happenings. Currently event management and marketer have adopted new technological models in selling this product, with much credit directed to increased globalization that has generated possibility of inter- country trading an element that has favored tourism particularly the Rio de Janeiro Carnival product is one typical reality that stand to rip increased customer based. More often the festival event has gained an increased fun base, an element that has been created by media advertising. Take for example internet advertising, often potential customers have access to the previous occasions happening done through video recording and picture. This sets an increased supply to those willing to attend in the forth coming events. Media has played a formidable role in creating awareness on the event happenings, giving comprehensive information on the product set up, identifying the possible benefits of the product to the potential customers. Ultimately, this has created customer loyalty a case that has prompted increase customer advocacy an element that is achieved through customer experience (Benn Business Information Services, 2009, pg.19). The product demand has continually increased considering increased advertising and other promotional measures that have been put in place. Often the advertising messages are informative and often will refer to customer’s demands on what they are expecting from the product. For instance, the promotional message clearly outlines all aspects that clients need to know concerning the product such as availability of the packages, product accessibility, a munities, product safety, and ancillary services among many other customer demands (Baum, 1999, pg.67). However, in achieving all this marketing promoters are keen on meeting ecological sustainability measures. Therefore the product offered in most case considers creating an environmental conscious measure to all stakeholders such as customers, product suppliers and the local surrounding. Demand Management Targeting Segmenting and Product Positioning The marketing research that are poorly carried out, they are often limited to date availability and tied with unrealistic expectations levels in low and bear periods. The marketers have responsibility in reading the product trend on the competitive market, understanding the product buyer behavior, in particular these from the foreign markets is critical in strategically planning for promotional measures and development of the Rio de Janeiro Carnival to become a what the potential customer demands on the global market (Kotabe, 2001, pg.144). The product has to be design in a manner that meets requirements of sustainability under the tourism industry. This will see the product passion it self above other her potential rivals on the market. The product has to adopt a resource based rather than market led initiative, this creates elements of sustainability. In this sense, the Rio de Janeiro Carnival product has to retain its natural formation, and not be altered essentially to suit the needs of the buyer without considering needs of other groups involved in the ecological cycle within the product market. Often many business dealers expect international markets to play a leading role as a source of income, our case is no different. For creating an improved market for Rio de Janeiro Carnival as a product. Achieving this the product is able to sell better within the domestic market, while creating a short pull to the regional markets, this will partly be applied to mitigate product’s exposure to the growing trends, but also involve advertising in creating a more cost effective application (French, 2010, pg.129). The figure below indicates a marketing research predicting the product demand for the period end Jun 30th 2012. This is in comparison to other potential rivals in the market. Location or Country of residence % change Product sale in the two quarter ended 31st march 2012 % change by end of June 2012 Canada 5% 5% Mexico -3% 2% Germany -12% -17% South Korea 15% 3% China republic 33% 22% Brazil 28% 53% Conclusion Based on this information Rio de Janeiro is typically an attraction activity that is common worldwide. By which it attracts both domestic as well as international tourists flooding the carnival capital with an interest to participate in the locals’ culture. However the festivity is normally financed by the participants themselves who we have seen majorly come from the Brazilian Favelas who live under extremely poor living condition therefore the Brazilian government should involve itself seeing this festivity as being a national one, to help fund it hence, reducing the total cost. The Favelas being a tourist attraction should be preserved for the purpose of preserving the people’s culture for future use and the citizens living there be located at place where their way of life will be improved. As a way of marketing the festivity the Brazilian government should negotiate with the accommodation providers to ensure that accommodation is availed for the tourists both domestic and international at an affordable price during the event. There is need for thorough research on the product with clear, enough and understandable findings that will help in marketing and improving the product itself. The potential risks faced is the increasing demand for promoting sustainable and eco friendly tourism by which the locals should be educated upon also the issue of security should be boosted to ensure tourist safety during the festivity, for example the previously experienced in 2010 by which a crime and violence reputation was experienced a Dutch tourist and his wife was attacked in the summit of certain hill where Rios Giant Christ the Redeemer statue is found. Technology which changes daily is another challenge that the capital need to embrace fully example by placing videos of the festivity for interested viewers to access at a fee this is an advance way of earning millions both during the event its self or after hence, encouraging more visitors to participate in the forthcoming one. Bibliography Baum, T. H. (1999). Responses to seasonality, The experiences of peripheral destination. International journal of tourism research , 1. 299-312. Benn Business Information Services. (2009). Benn's media, Volume 4. Michigan: the University of Michigan. Brebbia, F. D. (2010). Sustainable Tourism IV. London: WIT Press. Crook, L. (2005). Brazilian music: northeastern traditions and the heartbeat of a modern nation. New York: ABC-CLIO. Milla, C, R .(2004).The Trinidad Experience, Carnival: Culture in Action. London: Routledge. Hanna, N. W. (2001). Consumer Behavior: An Applied Approach. New Jersey: Prentice Hall. French, J. (2010). Social marketing and public health: theory and practice. London: Oxford University Press. Kotabe, M. (2001). Market revolution in Latin America: beyond México. London: Emerald Group Publishing. Richards, G. (2007). Cultural tourism: global and local perspectives. London: Routledge. Read More