SRI LANKA TOURISM BUILDING OUR FUTURE

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SRI LANKA TOURIST BOARD
COUNTRY SPECIFIC MARKETING STRATEGIES
ITALY Prepared by Dilshad, Tashinda and Fabiana
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ITALIAN MARKET It is very important for the S
LTB and the SLT to understand one thing
about the italian market although the whole
world (including Sri Lanka) is
going to invest a lot of money in the promotion
of their SUN,SAND and SEA Concept, and although
Italians are number 1 tourist to such
destinations, it is very important to understand
that since Sri Lanka does NOT
represent the ideal SUN,SAND and SEA destination
for Italians, I MUST NOT promote Sri Lanka
purely as a Sun , Sand and Sea destination.
For this reason , I am a bit worried about the
ISLAND concept for the intended
advertising campaign. MALDIVES is the incentiv
e to come to Sri Lanka. It is in the Maldives
that they find the perfect Sun, Sand and Sea
combination In order for me to promote Sri l
anka in Italy, I MUST concentrate on Ancient Cit
ies, Culture, Ayurveda, Nature etc. And propose
extention of a few days by the Sri Lankan
shores.
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• HOW DO ITALIANS SEE SRI LANKA
• Sri Lankan nationals (about 70 000 living in
  Italy) are highly regarded they are good
  ambassadors for their country.
  
• Far away place
• Totally unknown
• Poor country
• Poor infrastructure
• Desctruction after Tsunami still there
• Security problems

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A. COUNTRY OVERVIEW
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B. AVIATION SITUATION

• ACCESS TO SRI LANKA - VERY BAD
• NATIONAL CARRIER (AL ITALIA) DOES NOT HAVE ANY
• DIRECT FLIGHTS

• NO DIRECT FLIGHTS FROM SRI LANKAN AIRLINES

• POOR CONNECTION FLIGHT (EMIRATES/ QATAR)
• THROUGH DOHA DUBAI

• CHARTER FLIGHTS (LAUDA AIR/ AIR EUROPE) FLIES
• DURING PEAK PERIODS (Milan/CMB/Male,
  Rome/CMB/Male)

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C. HOW CONSUMERS PURCHASE THEIR TRAVEL

• INTERNET ENVIRONMENT
• CURRENT
• 30 OF ALL ITALIAN TRAVELERS PURCHASE TRAVEL
  PRODUCTS
  
• THROUGHT THE INTERNET.
• USE INTERNET TO ACCESS INFORMATION

• FORECASTED
• TO INCREASE

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C. HOW CONSUMERS PURCHASE THEIR TRAVEL

• RETAIL ENVIRONMENT
• NO. BY KEY GEOGRAPHICAL AREA
• NORTH (3,000), CENTRAL (2,000), SOTH IS LESS
  DEVELOPED

• NO. SELLING SRI LANKA PRODUCT BY GEOGRAPHIC AREA
• ALL RETAILERS HAVE POTENTIAL

• NO. WHO HAVE VISITED SRI LANKA
• INFO NOT AVAILABLE (HOWEVER ONLY A FEW HAVE
  VISITED)

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C. HOW CONSUMERS PURCHASE THEIR TRAVEL

• WHOLESALERS
• NO. BY KEY GEOGRAPHICAL AREA
• 300 TOUR OPERATORS IN TOTAL

• NO. LISTING SRI LANKA
• 40 TOUR OPERATORS IN TOTAL

• NO. TRAINED IN SRI LANKAN PRODUCT
• 20 TOUR OPERATORS IN TOTAL

• NO. WHO HAVE VISITED SRI LANKA
• ALL 40 TOUR OPERATORS HAVE VISITED.
• (HOWEVER STAFF REQUIRE FURTHER TRAINING
  KNOWLEDGE)

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C. HOW CONSUMERS PURCHASE THEIR TRAVEL

• SRI LANKA INBOUND TOUR OPERATOR SERVING MARKET
• HOTELPLAN - WALKERS TOURS
• (Biggest Italina Out bound to Sri Lanka
  mainly scheduled flights.
  
• KUONI WHITTAL BOUSTEAD (Schehuled and Charter)
• FRANCOROSSO AITKEN SPENSES (Only Charter)
• BEST TOURS HERITAGE (Only Scheduled)

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D. OUTBOUND PICTURE WITHIN MARKET

• CAUSES OF DECLINE
• TSUNAMI SARS
• GENERAL TREND to ASIAN COUNTRIES INCREASE

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E. VISITOR PERCEPTION
SRI LANKA IS PERCEIVED AS A VALUE FOR MONEY DE
STINATION

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F. BRAND POSITIONING Perceptual Map
A Touch of class/ Distinctive Proud to go
Maldives
Australia
Thailand
Singapore
Malaysia
Appeals to the young, active/ Fun/ Diverse Act
ivities
Conservative/ Relaxing/ Appeals to mid to olde
r People
India
Affordable/ Economical
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G. VISITOR DEMOGRAPHICS

• EMERGING TRENDS
• Travelling (20-60 years) This is in line with
  the travelling age group out Italy.
  
• The honeymoon and the group travel segments are
  key segments

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H. OCCUPATIONAL CATEGORY

• EMERGING TRENDS
• Educated travellers (upper middle class) travel
  to Sri Lanka

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I. PURPOSE OF VISIT

• Note
• Purpose of Travel - Pleasure
• (This includes Honeymooners and those who
  enjoy visiting Archeological Sites and Places of
  Interest in Sri Lanka

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J. DURATION OF STAY/ AVERAGE SPENT

• EMERGING TRENDS
• Lack of scheduled flights
• Lack of interest outside the Cultural Triangle
  e.g. Sea
  

• EMERGING TRENDS
• Italians do not mind spending money on value
  added products services

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K. OTHER SEGMENTATIONS USING PSYCHOGRAPHIC FACTORS

• Highly Personalized Services (Highly intimate)
• Up market
• Health Wellness

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L . GROUP CONSENSUS ON KEY NEEDS SATISFACTION
DESIRED
Italians would prefer visiting ancient cities,
local culture sites coupled with an up-market
beach resort. Maldives provides a premium bea
ch destination which enhance tourism to Sri Lanka.
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M . MOST POPULAR LEISURE ACTIVITIES UNDERTAKEN

• Jeep Safaris and Wild Life Parks
• Ayurvedic Wellness Experiences
• Extra Cultural/Sporting/Adventure Activities
• Extra City Tours

• EMERGING TRENDS
• Italians would analyze possibility to increase
  leisure acttivities as listed above.

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COUNTRY MARKETING STRATEGY RECOMMENDATIONS
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A . MARKETING OBJECTIVES
Scenario I Current climate to continue
Scenario II Positive climate in to 2007
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A . MARKETING OBJECTIVES
Scenario I Current climate to continue
Scenario II Positive climate in to 2007
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B . TARGET GROUP PROFILE / PRIMARY
Upper Middle Class Segment
Sub Class I Age Group, 20 - 39 years (Honeymo
oners,Up market) - 70
Sub Class II Age Group, 40-60 (Educated up ma
rket) - 30
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B . TARGET GROUP PROFILE / SECONDARY
Middle Class Segment
Sub Class I Age Group, Over 60 (Retired, Disp
osable Income - 50
Sub Class II Age Group, 30-59 (Group Travel/
Incentives) - 50
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B . TARGET MARKET- GEOGRAPHIC
Primary Market North of Italy Milan, Torino, B
ologna,Padova, Rome
Secondary Market Central Italy Florence, Sardi
nia etc.
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C . Specially selected niche market strategies

• ACTIVITY BASED TOURS
• NATURE BASED TOURS
• MICE MARKET (INCENTIVES) DIRECT FLIGHTS

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D . BRAND POSITIONING STATEMENT

• Sri Lanka should be positioned as a
• value for money destination
• with a range of products (nature and beach
  resorts)
  
• with a unique combination of varied activites.

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E. PRODUCT PSTRATEGY

• INCREASE AWARENESS
• MEDIA PRESENCE CONSUMER AND TRADE
• ROADSHOWS AND WORKSHOPS FOR TRADE
• TRADE AND CONSUMER ADVERTISING CAMPAIGN

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F. INTEGRATED COMMUNICATION STRATEGY
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G. DISTRIBUTION STRATEGY

• Tour Operators and Airlines
• Workshops, Roadshows and Seminars (Retail Agents)

• Trade and Consumer shows (Retail Agents and
  Consumers)

• Internet - Web Marketing

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H. AIR ACCESS STRATEGY

• Sri Lankan Airlines Need for a direct flight at
  least 3 X a week

• Or at least to increase seat capacity during the
  peak seasons (JULY/SEPT AND DEC/FEB)

• Emirates and Qatar better connections in Dubai
  and Doha

• More Airlines to fly to Colombo (LH)

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I Recommended Monthly Action Plan - 2007
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I . Recommended Monthly Action Plan - 2007
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Local Tourism Segments and their Key Value Att
ributes as perceived
by the Italian Market
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SEGMENT - SUN SEA
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SEGMENT - CULTURE ANCIENT CITIES
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SEGMENT - SPA AYURVEDA
Note Could be a high potential market for Ital
y because we target the high end
Market and high revenue producer
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SEGMENT NATURE WILD LIFE
Note The african elephant is bigger, has bigge
r tusks, and is more dangerous.
Therefore more appealing. In Sri Lanka wild an
imals are rare. Therefore need to repopulate the
parks
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SEGMENT SPORTS ADVENTURE
Note Only a small portion of the market would
require this type of info and maybe they get int
erested only once they are in the country.
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Thank you