One of the main innovations of Destination marketing 3.0 is the development of new product lines which require specific strategies for its creation and sale. The Special Interest experiences have to be developed in cooperation with expert consultants and the Special interest Travel Agents who are to become our Channel Partners at the outset.
They are to target the Special Interest travelers, one of the key targets identified within the profile of Tourists 3.0, characterized by a high educational level and income, high interest and respect for the destination’s culture and environment, as well as a will for contribution to the greater good in many cases. The experiences themselves consist of tourism activities dedicated to specific motivations, such as sports, cultural & educational activities, specific leisure, discovery or adventure activities, etc.
The strategy to decide which experiences to develop in the destination is based on the Mckinsey matrix, to be explained in detail in the Whitepaper “Business Portfolio Strategy”. To explain it briefly, the method consists of the following steps:
- Assess segments & niche attractiveness: demand seasonality, tourist expense, associated marketing costs, necessary investment, etc. (see the complete list in the “External Audit section”) weighing all the factors to elaborate a synthetic index for each segment.
- Assess destination competitiveness for each segment: assess destination compliance with the segment key success factors, evaluate cost and capability of solving competitiveness gaps, and elaborate a synthetic index out of the assessed factors.
- Prioritize segments: draft the McKinsey matrix indicating competitiveness in one axis and attractiveness in the other axis, as a bi-dimensional diagram where the zero point is the minimum value for both. Then place every segment within the diagram according to the values of their synthetic indexes to visualize the segments where the destination may compete successfully and those that are most profitable. Finally, prioritize accordingly.
Would you consider other methods? If so, what method, and why?