carnival of venice market segmentation

ASSESSMENT COVER SHEET

Module: Events Services Marketing

Individual assignment (Report/ Portfolio – 60%)

Student URN 6152106 Date Due Monday, 22th of November, 12pm

Student Name (optional)

Alexiadis Nikolaos

No of Words

3018

Topic ChosenMarket segmentation.

The carnival of Venice

Word Limit:3000

Assignment Brief

Choose a specific example from the Events sector and apply ONE of the specialist marketing topics listed below.

Please indicate the marketing topic you have chosen to apply to the chosen example in the title of your work and on the front cover of your assignment.

Marketing specialist topics for your consideration:

Product Life Cycle (PLC)Market SegmentationPromotionService Quality Customer Satisfaction

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FEEDBACK FORM:

Module: Events Services Marketing

Individual assignment (Report – 60%)

Area 5Very Good

4 3 2 1Very Poor

Use of Literature and Theories Analysis and Integration of IdeasOrganisation and StructureCritical, Constructive and InnovativePresentation

CommentsWhat did you do well?

What did you do less well?

How could you improve?

What will you do now?Your response

*Total Mark

*This mark is subject to moderation and second marking. All marks are provisional marks until after the Examination Board.

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4

Alexiadis Nikolaos

6152106

22/11/2010

Event Services Marketing (MANM240)

The Carnival of Venice: Market Segmentation

EXECUTIVE SUMMARY

The following report was conducted to present the theory of market

segmentation applied to the case of the carnival of Venice, an alluring event in

various aspects. Analysis is focused on the different ways of segmenting a market,

targeting the segments and positioning the event.

A market can be segmented by a wide spectrum of variables. Segments based

on geographic, demographic, psychographic and behavioural criteria are analysed in

this report. Grouping by variables as age, gender, income, beliefs and rate of use is

mentioned. After that, profiles of segments are constructed and classified in targetable

groups.

Furthermore, the fact that each segment has different needs and characteristics

is identified and several ways are proposed in which to choose and target the

classified groups, particularly in the case of the carnival. Local and regional visitors

are pointed as a crucial segment along with the elderly and cultural tourists.

Moreover, the notion of positioning, the idea that a customer or a target market

has about the product, is studied. The organisers should consider the competitive

advantage that the event may have compared to the competitors and build a

differentiated position appealing to specific segments.

The organisers of the carnival of Venice have built a general position addressing

some generic benefits to a broad spectrum of visitors, while creating specific

positioning to attract promising segments, like women.

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TABLE OF CONTENTS

1. Introduction............................................................................................................................6

2. Segmenting the Markets .......................................................................................................7

2.1. Geographic ..................................................................................................................7-8

2.2. Demographic..................................................................................................................8

2.2.1. Age.......................................................................................................................8-9

2.2.2. Life Cycle ...............................................................................................................9

2.2.3. Gender ..................................................................................................................10

2.2.4. Socioeconomic Status...........................................................................................10

2.3. Psychographic..........................................................................................................10-11

2.4. Behavioural..............................................................................................................11-12

3. Targeting the Segments .................................................................................................12-13

4. Positioning......................................................................................................................13-14

5. Conclusion............................................................................................................................15

6. References......................................................................................................................16-17

7. Appendices...........................................................................................................................18

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1. INTRODUCTION

The carnival of Venice is a rather interesting case of a Hallmark event. With

more than a thousand years of history, it adequately satisfies a wide spectrum of needs

of the local community both explicitly and implicitly, while at the same time it

preserves the unique Venetian culture. Venice constitutes a city that can only rely on

tourism in order to keep its population (Zannini et al., 2008), with no other significant

means of income; the carnival plays a significant role in this case, drawing masses of

tourists every year, and generating significant revenue for the community, not only

during the event, but throughout the year.

Marketing holds a significant role in this case, helping in the direction of

attracting the most appealing and promising groups of tourists. Few events can satisfy

all customers in a market. Different offerings must be made to the diverse groups that

comprise the market (Jobber, 2010; Bowdin, 2011).

In the following report, the marketing strategy of market segmentation will be

analysed and the way it is used by the carnival organisers will be presented, in terms

of targeting the most appropriate segments and positioning the event in the desirable

way to the mind of the potential customers.

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2. SEGMENTING THE MARKETS

The approach used by marketers to understand the diverse constitution of the

market is called market segmentation. Individuals or organisations with similar

characteristics are identified, to be later grouped for marketing use (Jobber, 2010).

Market segmentation is a crucial long-term strategy that organisers create, thus it is

imperative to thoroughly explore the market characteristics and produce the most

promising segments in terms of quality and possibility to match their needs (Dolnicar,

2004). Preferences and needs vary between different groups of customers, but also

within them (Masterman and Wood, 2005). There isn’t one single universal way of

segmenting a market (Kotler et al., 2010; Jobber, 2010).

The common way of segmentation is by geographic, demographic,

geodemographic, psychographic and behaviour variables (Brassington and Pettitt,

2007; Kotler et al., 2010). Flexibility and creativity are of outmost importance for an

effective segmentation analysis (Jobber, 2010).

The group that is identified as a segment has to meet some criteria, so that it is

useful. First of all, it has to be homogenous, sharing enough of the same

characteristics. In addition, it needs to be measurable and of size and attributes to be

worth targeting. Furthermore, effective and affordable communication with the

segment has to be possible for the organiser (Getz, 2005; Bowdin, 2011).

2.1 Geographic

Geographic segments are easily identified and measured. Customers here are

defined according to their location. Most visitors of the events will originate from the

local or regional market (Getz, 2005).

The Carnival of Venice in particular, since it is an off-peak event, is mainly

looking at regional and national visitors. Therefore, these are the main segments that

the organisers should primarily focus on targeting.

The Chinese outbound market is growing in size and sophistication (Hsu et al.,

2009). Italy is a favourite for single destination trips. According to a study by the

Vienna Tourist Board in 2005, Venice comes third as a city that attracts the most

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interest and has the most prestige among Chinese travelers, after Paris and Rome

(Mintel reports, 2007) (Appendix 1). As a result, it is a very promising segment; it is

substantial in size, measurable and worth targeting.

Local residents

Day visitors from the region

Domestic tourists

International inbound visitors

2.2 Demographic

Demographic segmentation is focusing in customers’ age, gender, life cycle,

race, socioeconomic status (which includes: income, occupation and education) and

family structure (Brassington and Pettitt, 2007; Getz, 2005; Bowdin, 2011). It is the

most common base used for segmentation, because these variables are easy to

measure. Even when segments are defined using other variables, demographic

characteristics need to be used to assess market size, and to be able to reach it (Kotler

et al., 2010; Jobber, 2010). Nevertheless, they are purely descriptive; it can’t be

assumed that all the members of a demographic group share the same characteristics

and needs. So they should not be viewed alone, but in relation with other variables

(Brassington and Pettitt, 2007).

2.2.1 Age

The carnival of Venice does not exclude any age groups from enjoying its

offerings. Nevertheless, there are some age groups, which are more promising in

terms of economic benefit that can be gained.

A crucial population segment is the third-age group. This segment includes

WWII babies and early boomers. This is a group that is expanding, with interest in

cultural events and that is generally easier to attract during the off season and

especially in spring when the carnival takes place. They are also retiring massively

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near 2010 (Bowdin, 2011; Getz, 2005). Seniors from China now account for more

than a fifth of outbound tourists (Mintel reports, 2007).

Furthermore, “late boomers” tend to travel with children, make winter trips but

also weekend excursions and city destinations, all of which serve well events like

carnivals (Getz, 2005).

In addition, the youth of generation Y should not be overlooked, so that their

immediate spending and loyalty is captured. They are keen event goers and also are

socially conscious, so it’s likely that they become volunteers. It should be taken into

account though, that it is a very diverse and highly segmented market (Getz, 2005).

Elders and older “early boomers”

Late boomers

Young crowd identified as “Generation Y” or “Echo boomers”.

2.2.2 Life cycle

Segmentation by this criterion is based on the notion that a person’s choices and

needs, depend highly on his position in the life cycle. A person can be in different life

stages, which are: young single, young couple with or without kids, middle-aged

families, empty nesters, retired couples or old singles. The use of this variable can

give more representative information about a group than age can, because family

responsibilities bear great impact on what customers buy (Jobber, 2010).

Childless couples usually travel more for recreation and tend to have higher

income and more choices deriving from fewer responsibilities. Empty nesters are

noticed to most likely attend cultural events and festivals and also have greater

disposable income (Getz, 2005). Both these segments can be considered interesting

for the Venice’s carnival. Additionally, families with children can be included here,

since younger children would find the concept of the carnival alluring, while

entertainment for the whole family can be offered.

Childless couples of any age

Empty nesters

Families with children

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2.2.3 Gender

Men and women sometimes differentiate their tastes and needs in some events.

There are events which cover better men’s needs like sports events; on the other hand,

arts and cultural events seem to be more interesting for women. Overgenaralisations

though have to be avoided (Bowdin, 2011). The Venetian carnival, being a cultural

event, should be segmented depending on the gender of the customers, since women

can be easier attracted by some specific attributes.

Women

2.2.4 Socioeconomic status

This is a segmentation method which includes the variables of social class,

income, occupation and education; it can be used to predict the buying behaviour.

Social class is the main variable used which is measured most of the times based on

occupation. Notwithstanding, it should be considered that many people with similar

occupations don’t share the same needs or characteristics (Jobber, 2010).

The carnival in particular, with its street parties but also private galas, is an

interesting mix of high and popular culture; it therefore can stimulate the interest of

segments ranging from lower middle class to upper middle class, but also lower social

classes with interest in cultural events.

2.3 Psychographic

Psychographic or Lifestyle segmentation is a more vague way of separating

groups of people, and needs to be associated with demographic variables to gain

accessibility and value (Getz, 2005; Brassington and Pettitt, 2007). People are

grouped according to their activities, interests and opinions. However, Brassington

and Pettitt (2006), as cited by Bowdin (2011) support that this kind of segmentation

bears great limitations for the event marketer.

The event organisers, out of the psychographic dimension of segments, hope to

find values, beliefs, attitudes, personality traits or certain lifestyle that can be

associated with the carnival (Getz, 2005); then the offerings can be tailored to match

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the specific needs and the event can gain competitive advantage. Specifically,

authenticity and uniqueness seekers can be an interesting group which the carnival

can lure through its uncommon package. Keen carnival goers could also be a possible

group of customers to approach.

Authenticity seekers

Carnival goers

2.4 Behavioural

This type of segmentation exists to provide information about the way that the

customer relates to the event, characteristics that further differentiate each person

from its demographic and psychographic profile (Brassington and Pettitt, 2007).

Attributes found by this grouping though, have to be correlated with other factors,

mainly demographic.

Segmentation in terms of the benefits sought out of an event, can be useful for

the organisers. A person might seek to learn about the local culture, or participate in a

unique centuries old tradition. Cultural tourists are classified as high-yield, spending

more days in the destination they visit. Their visit is triggered by 30% from a cultural

event (Getz, 2005). The majority in this segment are women, older (especially baby

boomers), educated and sophisticated.

Seasonality is also another factor that has to be considered. Off season visitors

follow different patterns than others. Some groups are easier to be attracted during

this period (Getz, 2005).

The rate at which visitors will attend a specific event is also of great importance.

Repeat visitors, including area residents, area common in the carnival; a group with

strong “brand loyalty” should also be added. All these separate crowds need to be

analysed so that their needs can be better met (Jobber, 2010; Getz, 2005).

The attitude concerning the event should also be considered (Brassington and

Pettitt, 2007). In the Venice carnival in particular, there exists a segment of people,

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mainly within the local community, which is hostile towards the event. It is

understandable that this group will need a different kind of approach than an

enthusiastic one.

Cultural tourists

Off season tourists

Repeat visitors

Hostiles

3. TARGETING THE SEGMENTS

The next step in the market segmentation process is to evaluate the derived

segments and choose the most promising ones to target. Since same characteristics are

shared in the segment, one single, tailored marketing mix can be developed to match

its needs; therefore communication is likely to be more successful (Jobber, 2010). The

cost of the additional separate campaigns is outweighed by the efficiency and

effectiveness that is gained (Masterman and Wood, 2005).

The marketing strategy that the carnival of Venice organisers have chosen to

adopt is “Differentiated marketing”. Specific marketing mixes are addressed to

different segments’ needs. At the same time, essential services are provided to a broad

spectrum of visitors, generating generic benefits (Getz, 2005).

In the case of the carnival, the point isn’t so much to attract the greater masses

of customers possible, but mainly to target quality visitors (Carnevale di Venezia,

2010).

As mentioned before, the majority of visitors to the carnival come from the region

near Venice and the local community. Most of them are repeat visitors. It is relatively

easy for the marketer to communicate with them (Getz, 2005). It is crucial first of all

to keep them aware of the event all year long. Also, a development of a sense of

community involvement is desirable; this can be done by encouraging the locals to

participate in the organisation of the event. The fact that entrance and participation to

the main carnival is free is a key issue for local and regional visitors. The organisers

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believe that the success of the carnival will depend on the involvement of Venetian

citisens (Venetia marketing & eventi, 2010).

Another segment that deserves significant attention is that of cultural tourists. As

previously analysed, they are high-yield, longer stay visitors. The carnival’s

organisers have stated their target to reduce the amounts of day visitors in favour of

longer stay residential tourists (Quinn, 2005). Towards this direction, apart from the

somewhat commercialised main event, private galas are organised, giving a more

authentic and exclusive experience to high-yield visitors.

Moreover, being an off season event, the carnival targets specifically the elderly; an

expanding segment, at the peak of their earning potential, with not many

commitments, they have more time for leisure (Mintel reports, 2008). Therefore they

can easily be lured by events during this period (Getz, 2005). Based on their generic

behaviour, they are targeted through organised cruises. Nevertheless, the younger

segments are not left aside.

Likewise, the organisers recently seem to have expanded their focus to other markets

too, based on geographic segmentation. Most significant is the presence in the “World

Expo Shanghai 2010”.

4. POSITIONING

Positioning is defined by Bowdin (2011) as the way the event is perceived by

the consumers. An event should strive to build a strong and unique image in the minds

of the target segments, and the population in general (Jobber, 2010; McDonald and

Dunbar, 2004). The first step in this process is to identify the possible competitive

advantages of the event. After that, the right differentiating advantages should be

selected based on what the target customers consider crucial. Finally, the chosen

position should be effectively communicated to the targeted segments of the market

(Kotler et al., 2010; Jobber, 2010; Brassington and Pettitt, 2007).

However, each separate positioning strategy needs to fit within the overall

image of the event and its brand. Therefore, a predominant positioning statement

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needs to be adopted or else the public will receive mixed, confusing or conflicting

messages (Masterman and Wood, 2005). In addition, the product and the targeted

segments should be continuously matched, since they can differ over time (Getz,

2005). Jobber (2010) lists four factors for successful positioning: clarity, consistency,

credibility and competitiveness.

The carnival of Venice is generally positioned as an authentic and fun cultural event

of distinctive style. Its brands, as symbols, are the exquisite Venetian masks and

costumes which add to its identification as a unique event (Getz, 2005).

Meanwhile, the private galas present the carnival as exclusive, targeting the needs of

high-yield segments; at the same time the main event is targeting at families with

children, with many children specific acts available. Elders’ needs are also addressed

with specific positioning, demonstrating the carnival as safe and high-cultural.

Additionally, the theme of the event, elegant masks and dresses appeal to women. In

the same direction, the 2011 carnival will have a tribute to women (Venezia

Marketing and Eventi, 2010).

Finally, in the 2011 programming, the wish was stated to give a strong cultural

meaning to the event, and develop its Venetian feel, building a clearer positioning for

the cultural tourists and further differentiating from the competitors (Venezia


In 2008 the marketing company organizing the carnival understood the strength

of sensations and emotions given by one’s senses; The Carnival was therefore

repositioned and called “Sensation: 6 senses for 6 districts” and one sense was given

to each (smell, sight, taste, mind, touch, hearing) (Appendix 2). Cultural events have

to be able to attract, fascinate and vary. Venice’s heritage could be limiting it from

moving on. The new layout, could trigger a regeneration process, based on general

strategic planning (Rizzi and Dioli, 2008).

Once the positioning strategy is chosen, organisers must communicate their

position to targeted segments. All the marketing mix efforts should follow the

positioning strategy. In services in particular, because of the direct contact of the

organisation firm and the visitor, there are 7-Ps that have to be adapted: product,

promotion, price, place, people, physical evidence and process (Jobber, 2010). They

can’t be analysed though in the limited context of this report.

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5. CONCLUSION

The Venice carnival is a wide range event, covering the needs of many different

segments. It differentiates itself from the competition offering a deep, centuries’ old,

cultural experience, with extraordinary style, addressing all ages, from young kids to

elders.

Organisers seem to recently follow contradicting strategies, on the one hand

trying to modernise the carnival through the “6 Senses” concept, while on the other

hand, plan to return back to the Venetian traditions of 19 th century (Venezia


Venice has a great cultural heritage which can be considered endangered by the

commercialisation of the carnival. Organisers should try to protect the traditions of

the carnival by selecting to target the most appropriate segments, who seek

authenticity and true cultural experience. It remains to be seen if the planned route

that the carnival seems to follow will aid in this direction.

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6. REFERENCES

Bowdin, G., Allen, J., O’Toole, W., Harris, R. and McDonnell, I. (2011). Events

Management, 3rd ed. Oxford, Butterworth Heinemann.

Brassington, F. and Pettitt, S. (2007) Essentials of Marketing. 2nd edition. Harlow,

Pearson Education Limited.

Carnevale di Venezia (2010) Carnival of Venice – Some data about Sensation 2010.

Available at: http://www.carnevale.venezia.it/en/news/carnevale-di-venezia-i-numeri-

di-sensation-2010-1.html (Accessed: 20 October, 2010)

Carnevale di Venezia (2010) il Doge in corteo tra i padiglioni di Shanghai. Available

at: http://www.carnevale.venezia.it/en/news/il-carnevale-di-venezia-sbarca-all-expo-

2010-il-doge-in-corteo-tra-i-padiglioni-di-shanghai-1.html (Accessed: 20 October,

2010)

Donlicar, S. (2004) “Beyond “Commonsense Segmentaion”: A Systematics of

Segmentation Approaches in Tourism” Journal of Travel Research, 42: 244. SAGE

[Online]. Available at: http://jtr.sagepub.com/content/42/3/244.full.pdf+html

(Accessed: 10 November 2010)

Getz, D. (2005) Event Management and event tourism. New York, Cognizant

Communications.

Hsu, C., Cai, L., and Li, M. (2009) “Expectation, Motivation, and Attitude: A Tourist

Behavioral Model” Journal of Travel Research, 49: 282. SAGE [Online]. Available

at: http://jtr.sagepub.com/content/49/3/282.full.pdf+html (Accessed: 10 November

2010)

Jobber, D. (2010) Principles and Practice of Marketing, 6th edition. UK, McGraw-

Hill.

Kotler, P., Bowen, J., Markens, J. (2010) Marketing for hospitality and tourism, 5th

edition. London, Pearson

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McDonald, M. and Dunbar, I. (2004) Market Segmentation: How to do it, How to

profit from it. Oxford, Elsevier/Butterworth-Heinemann.

Masterman, G., Wood, E. (2005) Innovative Marketing Communications, strategies

for the events industry. Oxford, Elsevier/Butterworth-Heinemann.

Mintel Reports (2008) Heritage Tourism – UK – October 2008. Available at:

http://academic.mintel.com/sinatra/oxygen_academic//display/&id=280422


Mintel Reports (2007) China Outbound – November 2007. Available at:

http://academic.mintel.com/sinatra/oxygen_academic//display/&id=237208


Quinn, B. (2005) “Arts Festivals and the City” Urban Studies, 42(5-6), pp. 927-943.

Aroow@DIT [Online]. Available at: http://arrow.dit.ie/cgi/viewcontent.cgi ?

article=1002&context=tfschhmtart (Accessed: 16 October 2010).

Rizzi, P. and Dioli, I. (2010) “From Strategic Planning to City Branding in Italy:

Some Empirical Evidence”, Pasos, 8(3), pp. 39-49. Pasos Online [Online]. Available

at: http://www.pasosonline.org/ (Accessed: 15 October 2010).

Venezia Marketing & Eventi (2010) The broad outline of the Carnival of Venice 2011

has been presented: a tribute to Unification of Italy and to women. Available at:

http://www.veneziamarketingeventi.it/en/page/newsPag (Accessed: 15 October 2010)

Zannini, F., Lando, F. and Bellio, M. (2008) “Effects of Tourism on Venice:

Commercial Changes Over 30 Years” University Ca' Foscari of Venice, Dept. of

Economics, Research Paper Series No. 33/WP/2007. Social Science Research

Network [online]. Available at SSRN: http://ssrn.com/abstract=1292198 (Accessed:

20 October 2010)

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7. APPENDICES

Appe ndix 1:

Type of trip taken by Chinese outbound travelers in Asian and non-Asian

destinations, November 2005

Outside Asia Within Asia

% %

One or more big cities 37 29VFR 13 7General sightseeing 20 25Enjoy nature and the outdoors 11 21Special event/exhibition 7 4Cultural/historical 6 1Beach/resort 2 3Shopping 2 5Winter activities 1 1Summer sports 1 1(Source: CTC, adapted by mintel reports, 2007)

Appe ndix 2: “Sensation”: 6 senses for 6 sestieri

(source: carnevale.venezia, 2010)

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carnival of venice market segmentation

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