Karlovac University of Applied Sciences

Silvija Vitner Marković, M.Sc.

Karlovac University of Applied Sciences

Trg J. J. Strossmayera 9, 47 000 Karlovac

e-mail:

phone: 047/843-540

fax.: 047/843-549

Neven Šerić, Ph.D.

Faculty of Economics

University of Split

Matice hrvatske 31, 21 000 Split

e-mail:

phone: 021/430-659

fax: 021/430-601

Managing brand of cross-border tourist destinations:

case study cross-border

cooperation Karlovac County (CRO) – Southeast Slovenia (SLO)

Silvija Vitner Marković

Karlovac University of Applied Sciences, Karlovac, Croatia

Neven Šerić

University of Split, Faculty of Economics, Split, Croatia

MANAGING BRAND OF CROSS-BORDER

TOURIST DESTINATIONS:

CASE STUDY CROSS-BORDER COOPERATION KARLOVAC COUNTY (CRO) – SOUTHEAST SLOVENIA (SLO)

ABSTRACT

Evaluation of strengthening interregional cooperation of the countries in the area of the European Union shows the potential of forming joint tourist brands of two, or more cross-border areas. Tourist resources on parts of Croatian-Slovenian border represent a research challenge. Economic contribution in this case is seen in potentially efficient tourism branding of the continental part of Croatia. Future perspective of the development of bordering area of the Karlovac County (CRO) and Southeast Slovenia (SLO) is in mutual branding of evaluated tourist resources with the aim of creating a recognizable cross-border tourist product. Thus it creates a model, which encourages faster and more efficient social-economic integration. The creation of joint tourist brand of the bordering areas helps to create competitiveness and higher differentiation of comprehensive tourist product in the global tourist market. The vision which is based on long-term aims of managing a recognizable tourist brand helps the overall economical development of the area. The branding of bordering areas introduces a cluster concept, which is a useful platform in creating an efficient marketing strategy of bordering areas by presenting themselves together in the global market.

Key words: cross-border, cooperation, tourism, brand, development

JEL classification: M31/Q56

1. INTRODUCTION

Tourist brand is a special product considered in relation to its name, identity and reputation. It may also be defined as a name that makes it unique among similar destinations. "Brands have become the main communicators in the global market." (Kuhn and Alpert, 2009) A strong tourist brand simplifies a tourist’s behaviour and decision-making, it even reduces the risk of incoherent choosing. It establishes quality and high expectations. Strong tourist brands create strong thoughts and emotions in the tourist's awareness. The main premise of brand management in tourism is creating added value for the tourist. For that reason the right marketing strategy for the brand management in tourism has become the biggest intangible asset of the tourist brand. The identity of a tourist brand is the main concept of a valorisation. Brand image is the perception of a tourist brand in the tourist's consciousness or the reputation of a tourist destination in the tourist's perception. The right marketing strategy in tourism interacts with the tourist brand identity. It is suggested to carry out the evaluation of the brand management from the platform of the marketing strategy, which is the key to right brand management nowadays. People evaluate products and services, choose them, like or dislike them based on stereotypes. It is very difficult for a tourist brand to convince its customer what to think about it. At the moment, adopting an adequate marketing strategy for the tourist brand is the most logical reaction to the prevalent difficulties in the tourist market in recession. This can be defined by the income increase, the retention and growth of tourist market share, as well as the future development of the branded tourist destination. An efficient marketing strategy for brand management in tourism is primarily influenced by the brand perception on the part of tourist demand.

Commercialisation of tourist resources in the bordering area through a model of cross-border cooperation contributes to the competitiveness and recognition of the brand of the tourist area. Due to this fact, cross-border cooperation can be used as a platform for branding. The paper presents a proposal of possible cross-border cooperation in the tourism of the Karlovac County (CRO) and Southeast Slovenia (SLO). For this purpose, the field research was conducted and an inventory of existing tourism resources in these bordering areas was carried out. Based on the data collected, tourist resources which represent the potential for the formation of specific partial brands and a potential umbrella brand were selected. The aim is to point out the possibility of branding in the bordering areas through cross-border cooperation in tourism and create an umbrella brand of the region. These are the prerequisites of an efficient management of bordering tourism destination. The following hypotheses are tested in this research: H1 – bordering areas of the Karlovac County and Southeast Slovenia (Bela Krajina) have relevant resources for forming recognizable brands of partial tourist products, H2 – bordering areas of the Karlovac County and Southeast Slovenia (Bela Krajina) have sufficient resources to create a recognizable umbrella brand of the wider region. The practical contribution is reflected in the evaluation of resources for potential branding in the specific bordering area of the Karlovac County (CRO) and Southeast Slovenia (SLO). Scientific contribution is reflected in the creation of a methodological approach of the evaluation of tourist resources. Exploratory research, benchmark analysis of the bordering area of the Karlovac County (CRO) and Southeast Slovenia (SLO) and the comparative method of analysis of secondary data was carried out.

2. DESTINATION AS A TOURIST MARKET BRAND

Destinations as tourist brands are created as a consequence of growing competitiveness and globalisation. Marketing strategy in tourist brand management represents and comprises all brand assets. In today’s tourism marked by crammed markets, fast marketing, and deluge of information, brand management has become the principal and the most important distinguishing feature of a particular destination. Marketing strategy in brand management refers to a managerial process that endows any given brand with a unique identity and image, presents brand with a possibility of being clearly and positively identified and thus different and recognizable from other destinations. Compared to classical branding, marketing strategy in tourism brand management is a process whereby a brand actively creates its identity with the objective of as quality as possible positioning in the global tourist market as a desirable item for tourists. A tourist always chooses with emotions and the mind. The marketing strategy in brand management indicates a direct connection of particular parts (brand mix of the destination) and their possible influence in the future period either as fall or increase depending on the success of the branding process.

2.1. The brand mix of the destination

From the aspect of communication the tourist destination could be a tourist brand, tourist name, used to differentiate it from others. As subjects of perception, tourist brands actually affect the tourist's feelings, their emotions and requests. For this reason, the image of a tourist destination is defined as a set of images, notions or feelings the tourist has acquired or keeps acquiring about a destination. The tourist brand is, among other things, subordinated to the destination itself. One of the important differences between ordinary branding and brand management in tourism nowadays through the marketing strategy is that the tourist brand is strongly recommend to be reduced to only one or two segments on the market. Sometimes it is complicated in the case of an ordinary marketing strategy for the brand management. Brand management in tourism through a marketing strategy is more complex, there are more influences and more possibility for success. The process of branding a tourist destination is not simple, and it is quite long, but brand management in tourism through a marketing strategy is the result of the need to establish a strong image of a destination and creating sights - recognizable features of a destination. Marketing strategy in brand management in tourism is not a promotional campaign. Results become visible in future, in the course of years.

From the aspect of marketing strategy in tourist brand management, the role of tourist brand as communicator is the process or the manner of managing the destination at the construction of one's own brand identity based on recognizable features chosen for their competitiveness, uniqueness and desired identity. Brand management in tourism through marketing strategy is an addition to the process. It has to secure loyalty of tourists, and recognition of branded destinations through years. Branding and creating a tourist brand is a prolonged part of business strategy. A tourist brand has a certain truth. The truth is actually the core that accumulates all marketing and branding efforts. All such efforts need to be the prerequisite for the right marketing strategy for brand management in tourism. Marketing strategy in such a process has to teach us how to listen to market information, how to recognize tourists’ wishes and needs, and how to behave in the global tourist market. Basic functions of a destination branding is communicating, creating the perception of the destination, creating the relations and creating the destination value. Brand identity actually means communicating a desired image and vision of the destination to tourists. The right marketing strategy will make the overall destination identity measurable, tangible and communicating. The identity of the tourist brand through the marketing strategy is something we would want tourists to think about a branded destination. Identity and brand image are quite different. From the perspective of branding perception considerations of perception are focused on the tourist brand. From the perspective of marketing strategy for the brand management, perception and considerations of perception are focused on the added value of the destination. Tourist brands attempt to construct character and uniqueness. In such a way, they create and enter into a mutual relation with tourists. Such relations are particularly related to tourists' attempts to construct their own image through a particular destination image. The tourist and the tourist brand realize a certain interdependent relationship. Marketing strategy for brand management in tourism requires interaction with the elements of the branding mix along with the interaction and the creation of relations with tourists. Among them brand evaluation is very important.

2.2. Branding strategies of the tourist destination

Branding strategy in tourism needs to assume a new role in the management of a destination. Brand management has to proactively cooperate with tourist resources that could help in preventing even the crisis of arrivals. The branding strategy therefore collects information on the tourist market, systematically adapts it to the model of brand management and launches corrective activities based on actual tourist perceptions. This definition places the branding strategy inside a destination. It is a crucial link that connects the destination and a guest through added value. The central concern of the marketing strategy in brand management in tourism is a well branded destination. The success of all the tasks done by brand management can ultimately be judged by the level of market success the branded destination makes. There are some branded destinations that are more likely to succeed even during global crises. These destinations, leading tourism destinations in a region are usually supported by some special tourism resources. But in such cases there were some interesting branding strategies in the past. So, the benchmarking could be very helpful. Especially because the development of such a branded destination is very long.

The interaction between brand management and marketing strategy in tourism is an absolute prerequisite for securing a market share in the future. Regardless of the expected quality of a branded destination, each subject in the destination has to get the same standard. The loss of tourism market share, coupled with a lack of destination competitiveness, can most certainly ruin a built brand. Also there are different crises in the tourism market. Each one is quite unique, and could be long-term, or short-term. Because of these reasons it is an absolute necessity for brand management to use a certain strategy to have concrete measures at its disposal. During the recession in tourism the potential guests of a destination are fully aware of their significance, so they expect the tourist offer to recognize their specific wishes and demands. After all, the tourists are loyal only to the branded destination that fulfils their needs. The branding strategy is essentially a platform that directly transfers clear information concerning the tourist market demand to the branded destination, which needs such information to make relevant decisions for holidays. Nowadays, in these times of strong competition in the global tourist market, characterised by a constant price pressure, managers continuously need to reduce the costs of the tourist service cycles. Also, the offer has to be continuously modified in order to meet the expectations of the tourist demand. An efficient branding strategy is absolutely necessary for the economic success of a branded tourist destination. Summing up the activities for the development of a branding strategy it is important to collect and analyse tourist market information about tourists’ perception of the destination. It is important to develop exact tactics that are in congruence with the tourist demand of the targeted guests. Branding strategy is a supporting platform of the destination, and the starting point for adequate positioning of the branded destination in the global tourist market.

The effectiveness of a branding strategy suggests the use of a project method in order to up grade brand communication. Project method is a programme of reorganization of the brand tactics. The reorganization implies a stabilization of basic operating tactics. Other suggestions are formation of the tactics group, analysis of conditions of a destination’s tourist resources, a strategic marketing analysis, and the making of a project that deals with the reorganization and revitalization of the branded destination. Important changes should be based on the destination-tourist market-profitability analysis. The final modification is the actual concrete re-branding in guest perception. The exact model encompasses different activities that lead to the revival of the branded destination:

- the formation of the new brand management structure of the destination;

- identification of strategic brand activities (touristic resources) of the destination;

- formulation of a new vision of the destination;