branding penang

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Hammad Kazi | Munib Farid | Amir Touseef | Eduardo Oliveira Graduate School of Business | University Sains MalaysiaAbstractTerritories, such as countries, regions and cities, compete with other geographical areas in order to attract investments, markets, businesses, residents, tourists, talents and entrepreneurs, as well as the hosting of cultural and sporting events. This process is intensified with the growth of internationalization and globalization. These territories need to identify the opportunities and strengths to achieve competitive advantages for efficient access to markets, resources and people. A clear definition of place branding, developed in a consistent, cooperative way with stakeholders and as a product of a cooperative network between local, regional and national stakeholders, can promote the production base, increasing the touristic and human resource flows. Investors, citizens of different nationalities, students and researchers take part of this flow. Place branding is a new trend in marketing and territorial or destination marketing research. Place branding is a powerful tool available to academics and professionals who dedicate their research to promoting geographical units in place management. Place branding is an important concept in today’s competitive world when nations are competing for tourists, consumers, donors, immigrants, the media and governments of other countries.The main goal of this paper is to understand how the Malaysia State of Penang should coordinate the marketing plans and manage the own brand to generate competitiveness within an increasingly international competition.Key-words: Marketing; Destination Marketing; Branding; Place branding; Tourism; Penang.

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Page 1: Branding Penang
Page 2: Branding Penang
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WELCOME TO PENANG:WELCOME TO PENANG:REBRANDING AND REBRANDING AND

MARKETING THE PEARL MARKETING THE PEARL OF THE ORIENTOF THE ORIENT

Amir TouseefAmir Touseef

Eduardo OliveiraEduardo Oliveira

Hammad Abid KaziHammad Abid Kazi

Munib FaridMunib Farid

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Place branding Place branding conceptconcept ““A A place brand strategyplace brand strategy is is

a plan for defining the most a plan for defining the most realisticrealistic, most , most competitivecompetitive and most compelling and most compelling strategic visionstrategic vision for the for the country, region country, region or city”;or city”;

Simon Anholt, 2005Simon Anholt, 2005

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Place branding Place branding concept II:concept II:

Marketing

Brands

Networks

Residents

Tourists

Visitors

Strategic vision

Foreign investment

Communication

Places

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: Simon Anholt, 2005

Strategy

Planning

Multisector

How to brand places?

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: Google imagens

Place Place branding: branding: ExamplesExamples

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Tourism & life Tourism & life stylestyle

:http://www.iamsterdam.com/en:http://www.iloveny.com/

: Google imagens

Place branding -> Examples:

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Place branding Place branding examples: examples:

http://www.edinburgh.org/

The Edinburgh City Region Brand is a public private partnershippartnership.

EdinburghEdinburgh as a world influencer in science, education, the arts and business, whose stunning physical beauty and magical atmosphere always inspiresalways inspires.

Main goals:Enhance the reputation and notoriety among the visitors, investors, looking to the region to live, work and study.

Brand of the city -> Inspiring Capital

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InternationalizaInternationalizationtion

http://www.enterprise-ireland.com/

Enterprise IrelandEnterprise Ireland

Enterprise Ireland is the Enterprise Ireland is the government agency government agency responsible for the responsible for the development and development and promotion of the promotion of the indigenous business indigenous business sectorsector. .

Mission is to Mission is to accelerate the accelerate the developmentdevelopment of world-class of world-class Irish companies to achieve Irish companies to achieve strong positions in strong positions in global global marketsmarkets resulting in resulting in increased national and increased national and regional prosperity.regional prosperity.

Export

Inovation

Competitiveness

Place branding examples:

Globalization

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: Google imagens

Place branding -> Applications:

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:http://www.maribor2012.si/si/

European Capital of CultureEuropean Capital of Culture

Special events

http://www.guimaraes2012.pt/

Maribor -> Slovenia

Guimarães -> Portugal

2012

Place branding -> Applications:

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1515thth Century Century

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II1616thth century, century, adventurer and adventurer and wanderer wanderer Captain James Captain James Lancaster arrivesLancaster arrives

Pulu Pinang – Pulu Pinang – (Betelnut Island)(Betelnut Island)

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Then arrive Then arrive the colonists the colonists

from from Sumatra in Sumatra in

1717thth century century

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Sultan of Kedah Sultan of Kedah signed over signed over Island to East Island to East India India Company in Company in exchange for exchange for military military assistance assistance against Siamagainst Siam

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Captain Francis Captain Francis Light of East Light of East India Company India Company took charge of took charge of Penang in 1861. Penang in 1861. He renamed the He renamed the island to “Prince island to “Prince of Wales Island”of Wales Island”

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Rumor has it Rumor has it that he fired that he fired silver coins from silver coins from his cannons to his cannons to the island jungle the island jungle to accelerate to accelerate settlementsettlement

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The area was called The area was called Georgetown after the name of Georgetown after the name of Prince of Wales who had Prince of Wales who had become King George by thenbecome King George by then

By that time adjacent mainland By that time adjacent mainland was also negotiated from the was also negotiated from the Sultan of Kedah, and whole Sultan of Kedah, and whole area was called Province area was called Province WellesleyWellesley

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Light permitted new Light permitted new arrivals to claim as arrivals to claim as much as they could much as they could clear, and this clear, and this together with a together with a duty-free port and duty-free port and an atmosphere of an atmosphere of liberal tolerance, liberal tolerance, quickly attracted quickly attracted settlers from all settlers from all over Asiaover Asia

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Most of the initial Most of the initial settlers planted spice settlers planted spice plantations. This plantations. This resulted in a slow resulted in a slow development of development of economy of the island economy of the island since these crops are since these crops are slow to grow and require slow to grow and require high initial resources.high initial resources.

Later they switched to Later they switched to coconut and sugarcoconut and sugar

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In 1805, Penang was given the status In 1805, Penang was given the status of a presidency government, which of a presidency government, which was equivalent to cities of Madras and was equivalent to cities of Madras and Bombay in India, and so gained a Bombay in India, and so gained a much more refined administrative much more refined administrative structurestructure

Penang briefly became the capital of Penang briefly became the capital of Straits Settlements in 1826 (including Straits Settlements in 1826 (including Melaka and Singapore) until it was Melaka and Singapore) until it was outmoded by the more thriving outmoded by the more thriving SingaporeSingapore

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By the middle of By the middle of 1919thth century, century, Penang had Penang had become a major become a major player in player in Chinese opium Chinese opium trade, which trade, which provided more provided more than half of than half of colony’s colony’s revenuerevenue

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In 1867, the increasing violence came to In 1867, the increasing violence came to a head when large-scale rioting broke a head when large-scale rioting broke out between two rival Chinese secret out between two rival Chinese secret societies, which had each allied societies, which had each allied themselves with similar Malay groupsthemselves with similar Malay groups

Once the fighting had been brought Once the fighting had been brought under control, the British authorities under control, the British authorities fined each group the than huge sum of fined each group the than huge sum of $10,000, the proceeds going to $10,000, the proceeds going to establish a permanent police force in establish a permanent police force in the colony.the colony.

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A royal charter awarded city A royal charter awarded city status to Georgetown in January status to Georgetown in January 1957, just seven months before 1957, just seven months before Malaysian Independence, and in Malaysian Independence, and in 1960, Penang became a free-1960, Penang became a free-port.port.

The island enjoyed a rapid The island enjoyed a rapid economic growth in the following economic growth in the following decades, but lost its duty-free decades, but lost its duty-free status to Langkwai in 1980sstatus to Langkwai in 1980s

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PENANG: THE BRANDPENANG: THE BRAND

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““All of our decisions, whether they are All of our decisions, whether they are as trivial as buying an everyday as trivial as buying an everyday product or as important as relocating product or as important as relocating a company, are partly rational and a company, are partly rational and partly emotional. No human activity partly emotional. No human activity is exempt from this rule.”is exempt from this rule.”

-Simon Anholt-Simon Anholt

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How important is How important is Tourism?Tourism? 880 Million tourist arrivals in 2009880 Million tourist arrivals in 2009

Malaysia ranks 9Malaysia ranks 9thth, with 23.6 million , with 23.6 million arrivalsarrivals

In 2008, international tourism In 2008, international tourism reciepts were USD 1.1 TRILLION!reciepts were USD 1.1 TRILLION!

KL 4KL 4thth most visited city in 2009! most visited city in 2009!

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Branding CitiesBranding Cities Build an association through Build an association through

experienceexperience

The emotional significance attracts The emotional significance attracts people back – historical, people back – historical, geographical, aesthetic, etcgeographical, aesthetic, etc

MilanMilan Paris Paris New YorkNew York

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SWOT AnalysisSWOT Analysis

StrengthsStrengths Historical backgroundHistorical background Combination of culturesCombination of cultures FTZ / manufacturing hubFTZ / manufacturing hub Natural beautyNatural beauty EducationEducation

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WeaknessesWeaknesses Transport systemTransport system Pollution / effluent from manufacturing Pollution / effluent from manufacturing

zonezone

OpportunitiesOpportunities Potential to be the perfect mix of modern Potential to be the perfect mix of modern

city life with heritage and natural beautycity life with heritage and natural beauty

ThreatsThreats High population densityHigh population density Compromise on FTZ activitiesCompromise on FTZ activities

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PEST AnalysisPEST Analysis PoliticalPolitical Malay and Chinese populations almost Malay and Chinese populations almost

equalequal State government vs Federal governmentState government vs Federal government EconomicEconomic Manufacturing, tourism, bankingManufacturing, tourism, banking SocialSocial PopulationPopulation Proportion of Malay, Chinese, IndiansProportion of Malay, Chinese, Indians TechnologicalTechnological Silicon IslandSilicon Island

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Current Branding and Current Branding and PositioningPositioning

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New York

Historical / Cultural Heritage

Historical / Cultural Heritage

Modern LandmarksModern Landmarks

Natural Beauty / scenic locations

Natural Beauty / scenic locations

Urban LifeUrban Life

Penang

London

Kuala Lumpur

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Tourism in PenangTourism in Penang

In 1970’s when focus was put on In 1970’s when focus was put on tourism tourism

Second most important economic sector Second most important economic sector in Penang after manufacturingin Penang after manufacturing

Georgetown named a world heritage Georgetown named a world heritage site by UNESCO in 2008site by UNESCO in 2008

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Cultural HeritageCultural Heritage

Diverse CultureDiverse Culture TraditionsTraditions ArchitectureArchitecture RecommendationsRecommendations

– Invest in restoring old Invest in restoring old buildingsbuildings

– Ensure cleanlinessEnsure cleanliness– Don’t build high rises Don’t build high rises

around the area around the area

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Historical HeritageHistorical Heritage

Great historical significance Great historical significance World War II etc.World War II etc.

Historical buildings Historical buildings – Fort CornwallisFort Cornwallis– City HallCity Hall

RecommendationsRecommendations– Maintenance of buildingsMaintenance of buildings– Development of museumDevelopment of museum

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FoodFood

Wide variety of foods Wide variety of foods – MalayMalay– ChineseChinese– IndianIndian

Street foodStreet food RecommendationsRecommendations

– More focus on promoting street food More focus on promoting street food as part of the culture and tradition as part of the culture and tradition

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BeachesBeaches

Not as beautiful as in other Not as beautiful as in other parts of Malaysia but still parts of Malaysia but still attracts a lot of visitorsattracts a lot of visitors

Batu FerringhiBatu Ferringhi– Water sports facilitiesWater sports facilities– ShoppingShopping– Wide variety of food – from Wide variety of food – from

fine dining to street foodfine dining to street food– International hotelsInternational hotels

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Nature walk and Nature walk and Penang HillPenang Hill

Beautiful trails for trekking Beautiful trails for trekking Penang hillPenang hill

– Provides a picturesque Provides a picturesque birds eye view of the birds eye view of the islandisland

– Historic funicular railway Historic funicular railway RecommendationRecommendation

– Regular maintenance of Regular maintenance of the funicular railway so the funicular railway so that the hill is accessible that the hill is accessible throughout the yearthroughout the year

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Medical TourismMedical Tourism

Projecting Penang as a regional Projecting Penang as a regional medical tourism hubmedical tourism hub

Wide variety of choicesWide variety of choices– Traditional therapies Traditional therapies – Contemporary medicineContemporary medicine

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Strategies for Re-Strategies for Re-brandingbranding

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Niche MarketsNiche Markets

Docking StationDocking Station

Sports EventsSports Events

MICEMICE

Exchange EducationExchange Education

Cross-marketing

Primary Attraction Attributes

Primary Attraction Attributes

Marketing Strategy

Marketing EssentialsMarketing Essentials

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Thank youThank you