Marketing Strategy Plan for Macau Brandy Yuqi WANG (1155031779)

HTMG4524 Destination Marketing

Professor Y.T. Li

9 November 2014

Index

Part One – Status Quo

1.1 Fast facts

1.2 Historical Development

1.3 PEST Analysis

1.4 Marketing efforts

1.5 Destination Branding

1.5.1 Logo and Slogan

1.5.2 Positioning

1.5.3 Differentiating

1.5.4 Target customers

1.5.5 Top 10 Attractions

1.5.6 Popular Activities

1.6 SWOT analysis

1.7 Current stage and Issues

1.7.1 Destination Life cycle and the stage of Development

1.7.2 Ethical issue: Gambling for entertainment

1.7.3 Legislative issue: Gambling Go-Online?

1.8 Competitive Benchmark

1.8.1 Las Vegas

1.8.2 Hong Kong

Part Two - Tourism Marketing Strategy Planning

2.1 Multi-destination tourism

2.2 MICE

2.3 International Trade and Retails

2.4 Leisure tourism

2.4.1 Family focused

2.4.2 Mainland Market

2.5 BIG DATA / SMART Marketing

2.6 Political Perspectives

2.7 Market-based Overseas Marketing Campaigns

2.8 Diversification

2.9 Sustainable Tourism

References

Veriguide Page

Part One – Status Quo

Macau Fast Facts

Country: China

Politics: SAR under the principle of “One Country Two Systems”

Climate: Sub-Tropical

Languages: Chinese (Cantonese), English, Portuguese

Setting: Seaside

Size: 29.9 km2

Population: 520,400

Currency: Macanese Pataca (MOP)

Key Attraction: Gambling, Blend of Portuguese and Chinese cultures

Historical Development

Macau was managed by Portugal in 1631. After Macau returned to China, many tourists travel to

Macau and the tourism started to emerge. At first the majority of the tourists were from Hong

Kong. But after the Chinese Central government had published the liberalizing of travel policies, a

large number of tourists came from mainland, since when the number of tourists had then

started to rise. There is also a remained reputation in international market as a world gambling

city. Recently Macau is trying to diversify its tourism portfolio by enhancing historical heritage

promoting and cultural resources development.

Typically Macau has done well in major Sporting, Consumer and Cultural Events:

PEST Analysis ( Mainland Market Focused )

Political: As an SAR in China, maintaining a good relationship with the central government, Macau

is politically stable and provides a sense of familiar to mainland tourists.

Economical: With the rapid growth in Economic and broadened gap between the rich and poor in

mainland China, the up-scaled hospitality service in Macau is welcomed by the new rich stratum

in Mainland China.

Social: Similar language and cultural tradition binds Macau and Mainland together, making

Macau a world city in Asia.

Technology & Service: The hospitality industry is well developed in Macau, and devices in

Gambling Industry are mostly up to date in case of technology.

Marketing efforts

Events hosting

Macau Government Tourist Office Website: macautourism.gov.mo

Overseas Campaigns

Infrastructure Construction

Education

Legislation

Facilities Investment like public transportation

Destination Branding

Logo and Slogan

2009 Slogan: A world of Difference, The Difference is MACAU.

This slogan emphasizes the word of “Difference”, aiming to differentiate the destination brand of

Macau to the left-hand side towards the polar of uniqueness.

2014 ‘Touching Moments Experience Macau!”

Compared to the 2009 slogan for Macau, the destination marketing emphasis has been obviously

transferred from the product to experience. It goes with the trends of rising demand from

cultural explorers and experience seekers from all around the world.

So Macao defines its charm in the contrast between old and new, antiques and fashion, It is a

dream city that mixed with traditional and modern life. Through the logo and slog an, Macau is

waving hello to all the guests from all nations, with splendid historical and cultural heritages,

vibrant and sincere atmosphere, professional hospitality service and continuous efforts in

legislation, education and capacity developments.

Positioning

1. World destination of gambling;

2. Witness of Modern history of China, meeting point of East and West (Chinese and

Portuguese), Macau was part of the Silk Road with ships loading here with silk bound

for Rome. Today, Macao is a major intermediate port for trade between China,

Japan, India and Europe.

Differentiating

Macau differentiates itself with irreplaceable historical heritage and biggest and most

completed gambling facilities and systems.

Target customers

Gamblers,

Family leisure tourists,

Business tourists from MICE sector

Other tourists from event sectors

Top 10 Attractions

- Ruins of St. Paul's

- The Venetian Macao

- Senado Square

- Macao Tower

- Macao Jockey Club

- Fortaleza do Monte

- Macao Fisherman's Wharf

- Grand Lisboa

- A-Ma Temple

- Museum of Macao

Popular Activities

1. Casino Hopping

Known as the “Las Vegas of the Far East”, Macau has thirty-three casinos in it, of which “The

Venetian Macao” is the biggest casino in the world! Listed is the key casinos:

Cotai:

– The Venetian Macao

– Four Seasons

– City of Dreams (Hard Rock Hotel, Crown Towers, Grand Hyatt)

– Sands Cotai Central (Conrad, Sheraton, Holiday Inn)

– Galaxy Macau

Macau Peninsula

– Casino Lisboa

– Wynn Macau

– MGM Macau

2. Food Hunting

From Portuguese egg tarts to almond cookies to durian ice-cream to Pork Chop buns to dim sum

to Crab Congee, food in Macau is typical with a vibrant mixture of Dutch, Portuguese and

Cantonese taste.

3. Visit Taipa Village and other attractions

From the Top 10 attractions and Popular Activities above, we can tell the destination image of

Macau as a city with legal gambling, merging Chinese and Western cultural experience.

Current stage and Issues

Through the Destination Lifecycle Model, we can tell that Macau is at the stage of Development.

1.82 Ethical issue: Gambling for entertainment

Note-worthy is the news related to Macau were mostly negative like money-laundering or other

criminal issues. It makes a bad image for Macau as a city for the super-riches and criminals.

1.83 Legislative issue: Gambling Go-Online?

With the rapid change in Mainland economy, the demand for gambling online rises and there are

similar products like Online Lotteries already available on app market. It is a potential risk and

competition for Macau’s gambling industry, while may also being an opportunity if it can launch

online gambling legally.

SWOT analysis

Strength

1. stable political status. Compared to the multiple events of Occupying Central in Hong Kong,

Macau is relatively stable in relationship with Chinese central government, which gives big

confidence and a sense of affiliation to mainland tourists.

2. Strength also lies at the completed physical infrastructure. The hospitality industry is well

developed and has a good capacity of serving large number of guests.

3. Privileged geographical location. Axis among Mainland China, Taiwan, Hong Kong, and other

south-east Asia countries and regions.

Weakness lies on highly dependence of gambling industries, lack of diversification in case of

destination image.

Opportunity goes to the fast development of MICE industry and high profit margin in it. Also the

rising of Chinese economy brings in huge number of mainland tourists. A strengthened

orientation to MICE industry is also an opportunity for Macau’s further tourism development.

Threat may be the severe competition from world destination, the aging of population and labor

outflow due to linear economic structure dominated by gambling industry. The trend of

E-gambling may affect the way people’s way of gambling as simple entertainment.

Competitive Benchmark

Las Vegas

Hong Kong is the main competitor and partner to Macau, which will be covered throughout the

Part Two - Tourism Marketing Strategy Planning.

Part Two - Tourism Marketing Strategy Planning

2.1 Multi-destination tourism

Macau is a small city with limited tourism resources and capacity. Therefore it is practical for

Macau to cooperate with nearby destinations like Hong Kong, Zhuhai and other mainland cities

to enhance multi-destination tourism.

To execute this, government may consider marketing Macau as destination through visa applying

process, like providing Hong Kong and Macau travel visa package or making suggestions in

custom. If international guests applying for Hong Kong or mainland visa get options in the

application form that apply for Macau visa as well, they tend to not “waste” the visa and take the

trip to Macau also.

Government can also promote multi-destination tourism through partners of local and

international travel agencies, tourist website and searching engines.

2.2 MICE

With the Cotai Strip Macao hosting the largest Tupperware conference ever in Asia-Pacific with

flair, Macau has demonstrate itself with a big capacity for the coming world-class MICE events.

With the high profit margin of business traveler from MICE factor, Macau should be more MiCE

oriented in future tourism development.

2.3 International Trade and Retails

Due to limited population and therefore inadequate domestic consumption, the international

trade and retail industry in Macau is not as competitive as Hong Kong. Alternatively Macau can

produce more localized tourism products, develop local luxury brands in high value-added

products and maybe sell it to Hong Kong market as well due to the similarity of the both SARs.

2.4 Leisure tourism

2.4.1 Family focused Marketing

A) Cooperate with overseas tourism board

Movie or promotion video

B) Social media:

Facebook page, Twitter, YouTube

C) Internet, including OTA and travel website

Lonely Planet, TripAdvisor…

D) Search engine- Pay Per Click

- Bid keywords, like Macau Travel

2.4.2 Mainland Market

Mainland is the current advantageous market for Macau and still contains significant potential.

Marketing can be done through direct advertising or indirect methods through public relation

management.

2.5 BIG DATA / SMART Marketing

SMART Marketing – Social, Mobile, Analytical, Relationship Marketing and Technology

Macau should embrace the trend of BIG DATA marketing that establish a big data base with

tourist portfolios and doing direct marketing through big data analysis and targeted marketing

efforts.

Innovative idea is that the government can cooperate with Online Travel Agency (OTA) to let

them make destination suggestions for Macau.

New technologies are also highly suggested like upgrade the quality of city WIFI provided by

Macau Tourist Office, establish an Online Virtual Travel Programme through the official website,

optimize the travel guide mobile app in Macau, etc.

2.6 Political and Social Perspectives

Same with Hong Kong, Macau is an SAR of People’s Republic of China under the principle of “One

Country Two Systems”. But unlike Hong Kong SAR, the political relationship between Macau and

the PRC central government is satisfying, which enables Macau to concentrate upon economic

development and infrastructure re-development, for example cultural heritage preservation and

development. Macau really benefits from the political status by providing a sense of safety to

tourists especially mainland tourists.

Therefore Macau Tourist Office ought to consider maintaining harmonious relationship with

central government to earn a steady political environment. It can also strength this advantage

over Hong Kong to celebrate Macau SAR 15th Anniversary and being friendly and welcome to

mainland tourists, making use of political significance of the SAR.

There is also a must to enhance Macau’s infrastructure development in two ways: physical and

social. The public transportation system, safety and hygiene standards, city WIFI services are well

developed

2.7 Market-based Overseas Marketing Campaigns

Macau Tourist Office can launch different marketing campaigns according to different markets.

For short-haul market like south-east Asia, long-haul market like USA and Europe, new market

like India, Russia and South America, advantageous market like mainland China and cooperative

market like Hong Kong and the Zhu Jiang River Region, there ought to be different marketing

campaigns.

In case of resources allocation, investment should focus more on mainland market which

contains most potential in tourist numbers, average expenditure, amplifying effect / word of

mouth.

2.8 Diversification

In order to expand the market share, Macau has come to the turning point of transferring the

destination image of a purely gambling center, “Las Vegas for the Far East”, to an integrated

tourism destination with historical and cultural experience, gambling and entertainment,

It is for the long-turn development to encourage the development of movie industry. The

government can subsidize more local filmmakers to make movie in Macau and attract the youth

and visitors from different region to visit the world-renowned sites like the Macau Tower that

shown in the movies.

Street life can be another selling point in case of exploring new possibilities of cultural experience.

Macau’s street is relatively closed to tourists and it can become more open and diversified by

reserving local open market, pedestrian shopping streets.

2.9 Sustainable Tourism

In order to maintain a sustainable development of tourism in Macau, the government ought to

conduct detailed city planning on solid liter and sewage treatment, application of eco-friendly

materials and renewable energy, population control and air pollution monitoring.

References

Official Website of Macau Government Tourism Office, Retrieved from:

http://en.macautourism.gov.mo/index.php

Visitor Profile Study 2013- Las Vegas Convention and Visitors Authority

Statistics and Census Service- Government of Macao Special Administrative Region

Top 10 Attractions in Macau

http://www.china.org.cn/top10/2011-07/20/content_23031180.htm

Popular Activities in Macau

http://www.eatandtravelwithus.com/2014/02/10-things-to-do-in-macau/

Pictures derived from:

http://english.ics-inc.co.jp/macau

http://www.city-data.com/forum/asia/1883561-bridge-connecting-macau-hong-kong.html