Download - 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
1
2
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.
3
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.
5
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
6
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.
7
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
8
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
9
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
10
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
11
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,
12
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
13
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
14
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
Marketing and Eventi, 2010).
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.
15
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
Marketing and Eventi, 2010).
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.
16
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
17
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
(Accessed: 15 November 2010)
Mintel Reports (2007) China Outbound – November 2007. Available at:
http://academic.mintel.com/sinatra/oxygen_academic//display/&id=237208
(Accessed: 15 November 2010)
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)
18
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)
19