A Report on Tasmania
The report aims to highlight the small island state of Tasmania. Although the state is small in size, it has adequate potential to support its own economy.
The report focuses on the market overview of Tasmania, with special highlights on the tourism industry.
It also provides detailed information about market segmentation, target markets and strategies to innovate, and the concept of market positioning.
Tasmania: Market Overview
Tasmania is a small island state that forms a part of the Commonwealth of Australia. It is situated towards the south of the country. Although small in size, the state contributes immensely since it is considered to be a natural state owing to its vast natural environment.
Around 45% of the state is in reserves, world heritage zones, and national parks. The major industries of the Tasmanian economy are mining, forestry, agriculture, and tourism. The state also has some effective exporting sectors, including seafood (Andersen, 2008).
Lately, agricultural products like cherries, saffron, wine, and pyrethrum have been cultivated. Over the past few years, the Tasmanian economy has significantly improved with Australian help and support.
An industry that has been booming recently and contributes immensely towards its economic development is the tourism industry.
A tremendous boom in the national housing market thus made housing prices rise dramatically in Tasmania. This has increased the level of interstate and overseas immigration.
The place’s strong traditions of small-scale production, rich soils, organic farming, pure air, and clean water have inspired the local growers of the state to produce authentic food and drink.
The fine products of the state can be found in varied regions from local farmers markets to high-end supermarkets. The unique wilderness of the region has been included in the world heritage list. The state is well-protected by reserves as well as national parks.
Market Segmentation:
Tasmania is a small but adequately potential state that imparts numerous opportunities internally and externally to benefit the local demography, economy, and marketers.
Hence, for any marketer to successfully establish a foothold in the Tasmanian market, it is important to have a fair knowledge of the market conditions and positioning.
The process of sub-dividing the entire market for the successful placement of any product or service into specific groups or segments is termed the target market (Aspris, Finch, Foley & Meyer, 2013).
Each segment depicts a specific target market to be entered and explored with a proper marketing mix. A market segment involves a particular group of customers who share similar needs and demands.
Thus, segmentation enables a marketer to assess the relative potential of a specific market and incorporate successful market strategies to increase revenues and profits.
Since tourism has been the most successful industry in Tasmania for a few decades, marketers find it exceedingly lucrative, as every individual is fond of travel and holidays.
Methods of Segmentation: Some of the factors of segmentation are demographics, geographic, psychographic, and behavioural factors (Biggs, 2010).
- Demographics (age, gender, income, life cycle, religion. Occupation. Nationality, race, education)
- Geographic (regional, location, density, urban, climate)
- Psychographic (life style, societal class, personality)
- Behavioural (attitude, beliefs, occasions, status of loyalty, user stage)
Decisions of savings, expense, borrowing or investing relate to matters like cycle stage, economic conditions, and income. It is also related to the perceptions as well as expectations of consumers about the economic situation, including their own objectives and aspirations.
Hence, some factors are deeply rooted in an individual’s value system, which makes one unique and distinct. Individuals may be identical in social contexts but necessarily not in psychographic or behavioural contexts.
Differences in beliefs, attitudes, tastes, and opinions may exist (Budinich, n.d.). Understanding these factors increases marketers’ chances of success.
The local community forms an integral part of the tourism industry. Local residents are good sources of local, regional information, and they are fundamental to innovative visitor experiences. Since Communities best discover their own heritage, they communicate this to visitors better and with passion.
Reliable sources have researched that the local demography of Tasmania comprises real, simple, and innocent people. The majority of these belong to the middle class and depend upon tourists for their livelihood. The local community has immense affection for tourists and visitors.
The geographic conditions seem to be favourable for the growth of the tourism industry (Fallon & Kriwoken, 2003). Numerous reserves, national parks, and hilly sites make it an ideal location for a tourist destination. This also renders the state immense protection.
The psychological factors are much more favourable since the local communities value their natural as well as cultural heritage. They better appreciate the value that tourists place upon the Tasmanian environment. They are likely more enthusiastic regarding ensuring that the visitors receive the best possible experience of the environment.
The behavioral aspects suggest that the local people possess positive beliefs and attitudes about the industry, which contributes to its overall growth and development.
Targeting strategy:
The marketers can utilize some of the effective market strategies to target the potential market in Tasmania.
It is important to determine a set of actions to assist the economic growth of the state for local residents, employees, and, at large, the Tasmanian community (Frost, 2004). The strategy must focus on the following prioritized areas –
- Development plan for the inner city
- Facilitate office-based activities
- Expanding system of higher education
- Effective research for industry sectors to flourish
To mention with, the City of Hobart is known to operate as a regional service hub along with high employment structure in the following industries:
- Health care & social assistance (7500 employees approx.)
- Public safety & administration (9000 employees approx.)
- Retail Trade (4000 employees approx.) (Litvin, 2000)
- Education & Training (4500 employees approx.)
- Scientific, Professional & Technical service (4000 employees approx.)
Developing Markets for Innovative Products:
The attributes of the state has allowed it for incorporating product differentiation as well as strong advances into market awareness. Some of the products that will continue with the Tasmanian trend are wines, cherries, ocean trout, and salmon gain that receive huge market recognition.
The food products of Tasmania are being appreciated by visitors and consumers because of their high quality, premium taste, potential environmental credentials, clean water and air, and also superior taste (Matysek & Kriwoken, 2003).
The strong environment credentials of Tasmania are aided in the food sector by prohibition of using hormone-growth catalyst in eatables, free from pests, and commercial use of genetically modified crops through moratorium.
Branding concept is integral to differentiating the products of Tasmania in target markets as well as creating market demand.
This, in turn, creates huge wealth and also captures true value in Tasmania. The produce of the agriculture and aquaculture sectors has undergone many innovations to satisfy the increasing demands of consumers.
Several Tasmanian corporate firms in the agriculture, food, beverage, and fisheries industries utilize Tasmanian branding to promote their products, thereby having access to the place of origin brand along with related marketing resources with the Brand Tasmania Council.
New Strategic Direction:
Tasmania has built in its innovative strategic direction for recognition of its changed world across the globe. The innovative actions show how the industry uses all opportunities and focuses on current and future strategies to assist in the development of the state’s economy.
The state aims at striking an effective balance between its supply and demand (Mayall & Whatman, n.d.). It also plans to consider the recommendations of the National Long-term Tourism Strategy for framing thoughts and also ensure continuation of stable position in the race of tourism at the international level.
Tasmania has recently incorporated digital and distribution strategy through the Tas-e-Conect program. The tourism industry is currently capitalizing upon the effects of technology upon how the customers are being served and benefited all throughout the day with the availability of key Tasmanian products and their expected experiences.
The various tools of the Tas e-Connect assist the industry in understanding how to maximize the benefits for their business owing to increased technological advancements (Rothschild & Sethi, n.d.). These changes have transformed how tourists consider and book holidays and even how wholesalers respond to varied business needs.
A recent initiative of Tas e-Connect is the Digital Coach program, which is specific for Tasmania. The tourism industry is dominated by regionally dispersed small and medium businesses that have less capacity for undertaking personal research and development.
This program is helpful in supporting core hospitality and tourism businesses and allied areas. These involve food and beverage production, the arts, etc., to strengthen digital consumer connections that lead to much stronger sales (Schwartz, 2005).
Given the excessively competitive travel marketing arena, Tasmania must be capable of building its capabilities and improving market penetration for global audiences in the most cost-effective manner.
Brand Development:
Tasmania has created its own brand in the tourism industry with its exotic holiday destinations and exciting adventures. Short travel time and various booking options have rendered Tasmania as the ideal tourist destination.
Recent state funding allocated to the tourist industry in Tasmania is directed towards successful marketing and communication, which can drive demand for travel to Tasmania and accelerate the implementation of innovative brand communications for the state (Strauss, n.d.).
Competitive Advantage:
Tasmania is an archipelago or around 330 islands located in the temperate zone at the southern hemisphere of the globe. It is referred to as the land of drastic coastlines, spectacular wilderness, rugged mountains, and sparkling lakes.
The state gets to breathe one of the cleanest airs of the world and drink one of the purest water as well. Rich, unpolluted and fertile coastal soils produce the finest foods. It is a different island in fact. The local people are resourceful; using creativity which arises from the geographical separation towards the business activities, artistic endeavors, and scientific research (Litvin, 2000).
The state is known to produce some of the finest wines and beers in the world, complementing its superb food varieties. The naturally built environment also motivates writers and artists. The state is a world leader in many areas of specialization, such as high-speed catamarans, high-performance radio antennae, marine evacuation gear, and aquaculture equipment.
Some of the sectors where the state has its impacts are agriculture, arts, energy, fisheries, forestry and timber, food and beverage, infrastructure, information and communication technology, minerals and mining, marine manufacturing, services, tourism, and textile industries.
Among all these sectors, the most effective industry that has been growing at an accelerated rate is tourism industry (Matysek & Kriwoken, 2003).
Positioning Statement:
Positioning means perception. The concept of positioning refers to the strategy of making the industry immensely popular with consumers and tourists worldwide. It refers to the perceptions of the tourists and visitors so that they are driven to the state to experience the place.
Positioning means the job of ensuring that the industry offers exclusive services to the target markets in the most competitive environment (Matysek & Kriwoken, 2003). The various innovative strategies in promoting tourism industry have been quite successful in positioning the tourism industry.
Conclusion:
The tourism industry has been booming recently and contributes immensely to its economic development. Thus, a tremendous boom in the national housing market has made housing prices rise dramatically in Tasmania.
The local community forms an integral part of the tourism industry. Local residents are the god sources of local regional information, and they are fundamental to innovative visitor experiences. Since Communities best discover their own heritage, they communicate this to visitors better and with passion.
Tasmania has recently incorporated digital and distribution strategy through the Tas-e-Conect program. The tourism industry is currently capitalizing upon the effects of technology upon how the customers are being served and benefited all throughout the day with the availability of key Tasmanian products and their expected experiences.
Thus the various innovative strategies in promoting tourism industry have been quite successful in positioning the tourism industry.
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