[II] Exemplary Example Marketing Plan Tourism Macedon Ranges Executive Summary The Macedon Ranges is a tourism region one hour’s drive, north west of Melbourne. This marketing plan will discuss how to enhance the visitation numbers to this region and promote awareness of the culture in the region. This focuses on providing visitors with a unique experience to the local food and wine culture as it is regarded as the main attraction to the region. The marketing strategy will be aimed towards young couples within the demographic age group of 25-45 years. This is a challenge due to the lack of awareness that young couples have when planning a holiday domestically. If this challenge can be overcome it will lead to increasing interest in the demographic segment. As there is fierce competition within the wine industry, this strategy aims to enhance the awareness which will lead to the region being able to compete equally with competitors. Furthermore, this region is small in comparison to similar regions within Victoria however it has an advantage in which it holds rich historical and heritage values. The objectivities set out for this marketing plan are aimed to be obtained within a year of implementing the plan. Therefore, the plan looks at increasing the domestic market of visitor, gaining a higher market penetration with the local accommodation facilities and increasing the economic value for tourism to the region. [II] In order to achieve these goals and promote the region effectively, this plan will detail the four factors relating to the marketing strategy being product, price, place and promotion which will be managed within the budget allocation of $100,000. Finally, this marketing plan will detail the marketing metrics and market research undertaken to establish the objectives set out in the time provided. Table of Contents 1. Business Overview .......................................................................................... 2 2. Market & Product Overview ......................................................................... 3 2.1. Customer Information ............................................................................ 5 3. Objectives ....................................................................................................... 5 4. Marketing Strategy ........................................................................................ 8 4.1. Product .................................................................................................. 9 4.2. Price .................................................................................................... 10 4.3. Place .................................................................................................... 11 4.4. Promotion ............................................................................................ 11 5. Budget and Controls .................................................................................... 13 6. Controls and Conclusion .............................................................................. 13 7. Reference List ............................................................................................... 14 1. Business Overview The Macedon Ranges is a wine region located north west of Melbourne, Victoria. The main town, Macedon, was first established in 1851 due to the gold rush in Bendigo. The area soon became a holiday retreat for the rich and famous when personal transport was readily available for owners to commute between the city and their holiday homes in the region (Macedon Ranges Tourism 2008). The 9 villages that make up the Macedon Ranges region are Gisborne, Kyneton, Lancefield, Macedon, Malmsbury, Mount Macedon, Riddells Creek, Romsey and Woodend. Due to the region having consistent rainfall, distinct growing seasons and fertile soil, ‘one of the signatures of the Macedon Ranges region is its emphasis on fine food and wine’ (Macedon Ranges Tourism 2008). The wine regions within the Macedon Ranges consist of up to 40 vineyards ranging from wineries producing drier, robust varieties in the northern area to the southern wineries which usually hold earlier ripening varieties for table wine. (Macedon Ranges Tourism 2008). ‘The region produces some of Australia’s best sparkling wines, and the ranges high altitude and cool climate provide perfect conditions for elegant chardonnay, pinot noir and shiraz’ (Tourism Victoria n.d.). While the Macedon Ranges wine selection is limited in quantity it is high in quality. The restaurants in the region produce a creative flare that attracts Victorians all over the state with their fresh, local produce and is well on the way to ‘becoming a foodie haven’ (Macedon Ranges Tourism 2008) for visitors. Compared to other wine regions within Victoria, the food and wine culture of the Macedon Ranges provides a unique environment with fertile volcanic plains and clear mineral springs for the backdrop to the region where visitors can enjoy fresh product that ‘goes straight from the paddock to your plate’ (Tourism Victoria n.d.). This environment will attract couples all over Victoria wanting to relax or just looking for a quick weekend getaway as the region has a reputation for boutique cellar doors, romantic cottages and innovative chefs producing creative food (Macedon Ranges Tourism 2008). 2. Market & Product Overview Tourism in regional Victoria is a major industry which generated $10.9 billion to the economy in 2011-2012 and employed over 109,000 people. Regional Victoria tourism contributes 13.9% of the total gross regional product and 12.8% employment compared to Melbourne’s 3.2% and 4.5%. (State Government of Victoria 2015). The Macedon Ranges region generates $275 million to the tourism industry annually towards the regions strengths for food, wine and culture. Victoria’s wine industry has an economic value of more than $1 billion per year (Wine Victoria 2012). The Macedon Ranges region has 58 wineries which contributes 7% of Victoria’s total wineries (Macedon Ranges Shire Council 2015). While this may not look like much, the Macedon Ranges is placed in the top 5 wine regions in Victoria, however there has been a decline of domestic visitor nights at an average annual rate of 4.3% (Macedon Ranges Shire Council 2015). Since 2008, domestic visitors to the Macedon Ranges from within Victoria have declined at an average of 4.3% per annum. The latest figures, in 2013, show 86% of the domestic market visited overnight while visitor nights where at 76% with an average length of stay of 2.2 nights. This has decreased since 2012 from 2.4 nights. The accommodation for hotels, motels or serviced apartments was only 17% in 2013 compared to 37% of visitors staying with friends or relatives. The average annual room occupancy rate was 40% in the year ending June 2013, for the 12 hotels, motels or serviced apartments with 15 or more rooms in the region (State Government of Victoria 2015). At least 30% of the domestic overnight leisure visitors belong to the ‘food and wine lifestyle’ compared to the ‘enriched wellbeing’ segment (16%) and ‘inspired by nature’ segment (27%) (State Government of Victoria 2015). Furthermore, the highest activity segment of domestic overnight visitors in 2013 was eating out at restaurants at 49% compare to sightseeing (32%) or outdoor activities (21%) (State Government of Victoria 2015). The region is currently being advertised through websites such as tourismvictoria.com.au and visitmacedonranges.com.au as well as television episodes about the benefits of the region in destination programs such as Postcards (Tourism Victoria n.d.). A YouTube video clip is displayed on the ‘visit Melbourne’ website that is titled ‘A tour of the Macedon Ranges’ (Melbourne Australia n.d.) as well as it being linked to the YouTube website directly which has been promoted towards viewers citing: ‘Stay overnight in luxury accommodation and uncover the flavours of the region at cellar doors, local bakeries and renowned restaurants’ (YouTube 2011). The wines and food from the Macedon Ranges is also currently being promoted through Melbourne’s Food and Wine Festival where a regional world’s longest lunch is being held in Daylesford and Kilmore during March (Melbourne Food and Wine 2015). There is also a Budburst Food and Wine Festival every November that is held by the Macedon Ranges Shire in partnership with Macedon Ranges Vignerons Association (Macedon Ranges Shire Council 2015). Due to current promotion and decreasing statistics to the region competition is one of the biggest risks of losing the market share for the Macedon Ranges. As there are 21 wine regions within Victoria, three of these regions are bordering the Macedon Ranges which include Sunbury, Ballarat and Heathcote. These regions could potentially take visiting numbers away from the Macedon Ranges region due to their similar topography. Furthermore, in comparison to the distance from Melbourne City there is potential risk of decline in visitor numbers to the Mornington Peninsula, Yarra Valley and Geelong wine regions. The tourism market for Victoria and in turn, the Macedon Ranges tourism, will increase when a future $1 million investment plan from the labour government will go into effect over the next two years to boost the Victorian wine tourism industry. This plan will include the funding to develop a Victorian wine tourism strategy that will provide Wine Victoria the ability to partner with the government on key policy issues that can reverse profitability issues, increase cellar door visitation, biosecurity and regional job creation (Wine Victoria 2012). 2.1. Customer Information In 2013, the age group of 25-44 years for domestic visitors to the region was at 37% being the second highest after the age group of 45-64 years which was 41% (State Government of Victoria 2015). This plan aims to increase that figure by reaching the demographic segmentation of adult couples aged 25-45 who live within Victoria. His plan is also aiming for the target market that falls into the psychographic segment of the lifestyle preference for holiday or leisure. The plan also aims to increase the target market for couples wanting a weekend getaway to enjoy the food and wine culture of the region during the winter months (June, July & August) as the figure in 2013 was as the lowest seasonal trip, being 21% (State Government of Victoria 2015). 3. Objectives • Increase domestic market of visitor nights to the region by 80% by end of 2016. • To gain 20% of the accommodation market for hotels, motels, serviced apartments in the region by end of 2016. • Develop interest for couples aged 25-45 to holiday domestically to the region by increasing the overnight visitation from 37% to 45%. • Increase the economic tourism in the region from $275 million to $280 million by end of 2016. The below SWOT analysis identifies the internal strengths and weaknesses to this marketing plan as well as the external weaknesses and threats possible. Strengths • Existing high market penetration in domestic market • Good partnership with local companies • Established region Opportunities • Growing demand for local produce in restaurants • Maximise tourism potential for region • Develop more infrastructure to local towns in the region • Create greater awareness of the restaurants fresh produce Weaknesses • Small wine region with small quantity of products • Size and number of accommodation facilities in the region • Age requirement for alcoholic consumption Threats • Competition with other domestic wine regions • Climate change • Possible health risks due to excessive wine consumption The below PEST analysis provides a comprehensive list the tourism industry for the Macedon Ranges business entails in this marketing plan. Political • Government regulations regarding employee numbers, food regulations and standards, alcohol consumption • Government policies regarding licenses, restaurant industry inspections • Local government restrictions in regards to maximum number of patrons • Pressure groups in regards to anti-alcohol consumption Economical • Interest rate changes • Unemployment rate • Household income • Economic growth in relation to wine • Gross domestic product in relation to wine Sociocultural • Eating out & drinking habits • Cultural beliefs in relation to alcohol • Ecological environment in relation to the fresh products used in the restaurants Technological • Use of social media platforms for advertising communication • Changes in technology advancements in regards to possible changes to distribution 4. Marketing Strategy As our key objectives are to increase year round visitation by 20% within the Macedon Ranges, we are more likely to build a richer Victoria region experience for visitors through the development of existing products and services that makes the most out of key regional strengths. This plan will develop the region as a best practice tourism industry that enhances the visitor experience and support the creation of a sustainable and engaged regional tourism industry. This will also enable growth and encourage young couples from Victoria to the region. The task is also simply make our products available, affordable and acceptable to our customers and increasing yield, customer satisfaction and interest, developing further synergies between food and wine product. This will strengthen alliances between operators and producers, and facilitating investment in winery tourism. In order to achieve our aims, we believe that we could work with the public and work closely with the media to help us get our messages across. Furthermore, closely work with Tourism Victoria and Tourism Australia to ensure our region is featured in their public relations. The marketing mix below details the product that will be aimed at the customer as well as communication and costs that are associated with the plan. 4.1. Product Food and Wine action plan for 2004-2007 (State Government of Victoria n.d.) highlighted that there was low consumer awareness of the food and wine experiences on offer in the Macedon Ranges area despite the existence of high quality and iconic products. For example, the farmers market and the famous Piper Street exclusivity within Kyneton (Macedon Ranges Tourism 2008). The plan will include partnership with the Daylesford Macedon Produce Group who represents the interests of the region’s producers and growers in the region (State Government of Victoria n.d.). In this case, the aim is to improve and deliver with the best service and to serve our customers with high quality fresh produce and relaxation by promoting he Kyneton town as it is a regional food and wine hub that would appeal to ‘foodies’ and wine-lovers (Macedon Ranges Tourism 2008). The features and benefits that we could offer in the food and wine tourism industry of the region would be the award-winning chefs that provide locally owned produce in acclaimed restaurants as well as cool climate wineries where people can enjoy wine straight from the vineyards. We will be providing our customers with vibrant activities such as annual food and wine festivals and events where it will be held within the towns of the region throughout the year. Wineries, vineyards, and public buildings throughout the region will be included to promote the flavours of their produce and allow visitors to experience the atmosphere of the region. 4.2. Price As competition for attracting young couples to the food and wine culture is high in Victoria, the pricing strategy for this marketing plan to the Macedon Ranges region will be market-based pricing (Sharp 2013). Furthermore, the region needs to consider the price of production and distribution for the products. The price of the products cannot fall too drastically, as competitors may do the same which may become negative inflation to the economy and therefore the pricing strategy will also include cost-based pricing (Sharp 2013). The wine being sold throughout the state to attract the target market needs to be affordable but also in relevant pricing to the competition. While this wine region, and therefore the wine being produced, may be small in quantity it holds a luxury appeal to the target market, as well as the appeal to visit the award winning restaurants to that region. 40% of the budget will be assigned to the pricing strategy, while 60% will be placed towards promoting. The pricing strategy involves: • Discount vouchers for existing customer to stay an extra night. This can be specific to a mid-week special which will help recurring visits and promote word of mouth marketing. • Discount towards restaurants in the region when visiting with large group. • Customers staying in the region longer than 3 nights will receive a voucher for the combination of two restaurants and taste lunch and dinner at different restaurants as an option. This attempt can encourage restaurants and wineries to be acknowledged and increase sales. • Distribution of wine products from wineries to retailers throughout the state. • Production and distribution of advertising labels on wine products to the retailer. • Specials on wine products in retailer • A package deal that includes a wine tour with wine tastings at 5 wineries and lunch at one of the restaurants in the region for a discounted price. As this pricing strategy includes customers visiting more than once and bringing larger groups of the market to the region the market penetration will increase. 4.3. Place The plan will focus on a small supply chain. The channels of distribution being used for the wine products will be through intermediaries such as retailers, which will enable cooperative relationships through business-to-business marketing (Sharp 2013). This will be distributed from the manufacturer (vineyards), through the intermediary (retailer) such as alcohol shops which will be sold to the consumer. Retailers will be distributed widely across the state to incorporate effect physical availability for the consumer. This also includes retailers that seel online, for example, Banks Fine Wine (Banks Fines Wine 2013). Selecting and keeping those retailers can save money for the Region and build close relationship. A decision on which retailer to distribute to will be undertaken using quantitative data such as repeat purchasing pattern (Sharp 2013). However this distribution channel is not necessary where the products are directly purchased from the wineries. The vineyard owners produce and sell their product themselves through cellar doors, therefore the distribution will be from the manufacturer direct to the consumer (Sharp 2013). 4.4. Promotion 60% of the budget will be aimed at promoting the food and wine culture of the Macedon Ranges through different techniques. This will not only encourage new customer but also encourage brand recognition through mental availability to existing customers (Sharp 2013). This will also achieve the key objectives to raise the region’s profile even higher and encourage visitors to make this region their destination of choice. A partnership will be required with Tourism Victoria and Macedon Ranges Shire to ensure the advertising of the region is featured in their public relations as well as working closely with the media. The following is a detailed list of the advertising campaign for this plan: • Explore social media and IT enabled marketing opportunities such as Facebook or Google+ pages and smartphone apps. This could include interactive advertising through surveys (Sharp 2013). • Search engine advertising such as Macedon Ranges websites appearing after certain words have been searched. E.g. ‘holiday Victoria’ ‘food and wine festival’ ‘romantic accommodation’ and online pop up advertising (Sharp 2013). • Television advertising through destination programs such as Postcards or Getaway. • Radio advertising. • Try to promote events calendar and encourage coordinated scheduling of events to minimise overlaps and maximise visitation across the year. Melbourne food and wine festival. • Pylon or wall advertising near high foot traffic areas such as pop-up stalls at key entry exit points in Southern Cross station. • Publication of articles and pictures in travel magazines for Victoria. • Wine tastings in big alcohol chains such as Dan Murphy’s r First Choice where a detailed description could be given to the customer about the region to. This would bring more awareness and interest to the Region. • Pamphlet handouts in the Macedon Ranges Shire office. • Direct mailing to existing customers with gift based promotions such as ‘Macedon Ranges region fridge magnets’ to indorse mental availability as well as potential word of mouth marketing (Sharp 2013). • Product placement for both the food being grown from the region and the wine with the Melbourne cooking show Masterchef (Sharp 2013). As the above list details various advertising methods over a long period of time and at different time of the year, the campaign will be able to reach a high number of people. 5. Budget and Controls The total budget for this marketing plan is $100,000. 60% of that budget will be placed towards the advertisement campaign while the rest, being 40 %, will be assigned to the pricing strategy. 6. Controls and Conclusion This marketing plan for the Macedon Ranges region includes marketing metrics such as behavioural metrics and physical availability metrics. This is measured using market research such as qualitative and quantitative data (Sharp 2013). The market share and market penetration cannot be measured until quantitative data is provided. This is done through internet and mail surveys which can also include open-ended questions. Focus groups and in depth interviews are also completed using the qualitative data approach (Sharp 2013). These market research approaches could be used as indexes which will measure the effects of this marketing activity. Consumers' awareness, attitude and satisfaction can be also measured by these surveys which will help the plan to concentrate on awareness to customers. Quantitative data will also be used specifically to decide which retailer to place the products in that will enable repeat purchasing pattern (Sharp 2013). The pricing strategy will be measured using behavioural metrics such as market penetration to understand the existing customer base. This includes word of mouth, while the promotion strategy will measure reach (Sharp 2013). Physical availability metrics will include shelving space in the retailer’s store which will increase the opportunity that customers will buy the product. This marketing strategy plan will also focus on customer-based metrics, in particular, targeting to young couples. However, if other types of consumers are increased, the plan can also aim to add some options for them. In conclusion, the objectives outlines in this marketing plan will be achievable within the given time as the region already has a high market penetration. Furthermore, the increase to the economic value of the tourism to the region will be met due to the future funding from the federal government to the wine industry as well as the product awareness set out in this plan. 7. Reference List • Banks Fines Wine 2013, About Us, Banks Fine Wine, viewed 14 May 2015, . • Macedon Ranges Tourism 2008, Drink, Visit Macedon Ranges, viewed 12 May 2015, . • Macedon Ranges Tourism 2008, Food & Wine, Visit Macedon Ranges, viewed 12 May 2015, . • Macedon Ranges Tourism 2008, Kyneton, Visit Macedon Ranges, viewed 12 May 2015, . • Macedon Ranges Tourism 2008, Macedon, Visit Macedon Ranges, viewed 12 May 2015, . • Macedon Ranges Shire Council 2015, Economic Profile, Macedon Ranges Shire, viewed 12 May 2015, . • Macedon Ranges Shire Council 2015, Industries and Strategies, Macedon Ranges Shire, viewed 12 May 2015, . • Macedon Ranges Shire Council 2015, Wineries, Macedon Ranges Shire, viewed 14 May 2015, • Melbourne Australia n.d., Videos, visit Melbourne, viewed 11 May 2015, . • Melbourne Food and Wine 2015, Daylesford and Macedon Ranges - News, Melbourne Food and Wine Festival, viewed 13 May 2015, . • Sharp, B 2013, Marketing: theory, evidence, practice, Oxford University Press, Victoria. • State Government of Victoria 2015, Regional Plans, visit Victoria, viewed 13 May 2015, . • State Government of Victoria 2015, Regional Visitation, Tourism Victoria, viewed 11 May 2015, . • State Government of Victoria n.d., Victoria’s Food and Wine Tourism Plan 2004-2007, Tourism Victoria, 14 May 2015, . • Tourism Victoria n.d., Food and Wine, visit Victoria, viewed 12 May 2015, . • Tourism Victoria n.d., Macedon Ranges Wine Region, visit Victoria, viewed 12 May 2015, . • Tourism Victoria n.d., Postcards, visit Victoria, viewed 11 May 2015, . • Wine Victoria 2012, Government Programs, Wine Victoria Australia, viewed 12 May 2015, . • Wine Victoria 2012, Wine Victoria News, Wine Victoria Australia, viewed 12 May 2014, . • YouTube 2011, Macedon Ranges, visit Melbourne, viewed 11 May 2015, .