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TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
26.12.2014, Belgrade
Prepared by:
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Disclaimer:
This publication has been produced with the assistance of the
European Union. The contents are the sole responsibility of
Danube Competence Center and Horwath HTL Belgrade and can
in no way be taken to reflect the views of the European Union and
the Austrian Development Agency.
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
3
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Table of Contents
I INTRODUCTION................................................................................................................. 6
II ECONOMIC DEVELOPMENT AND INVESTMENT TRENDS................................ 10
Global and national trends of foreign direct investments ..........................................10
III DEVELOPMENT CONTEXT – SECTOR BASED TRENDS AND POLICIES ...... 16
3.1. AGRICULTURE AND RURAL DEVELOPMENT ............................................................16
SWOT ANALYSIS OF THE ARD IN DANUBE SERBIA ............................................................ 18
CONCLUSIONS ...................................................................................................................................... 19
3.2. TRANSPORT .........................................................................................................................21
Inland waterways................................................................................................................................ 22
Rail transport ........................................................................................................................................ 22
Road transport ..................................................................................................................................... 23
Intermodal transport......................................................................................................................... 23
SWOT ANALYSIS OF THE SECTOR OF TRANSPORT IN DANUBE SERBIA................... 24
CONCLUSIONS ...................................................................................................................................... 26
3.3. SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ...........................................27
SWOT ANALYSIS OF THE FDI / SME SECTORS IN THE DANUBE SERBIA REGION. 31
CONCLUSIONS ...................................................................................................................................... 33
3.4. ENVIRONMENT ...................................................................................................................35
SWOT ANALYSIS OF THE SECTOR OF ENVIRONMENT IN DANUBE SERBIA ............ 36
CONCLUSIONS ...................................................................................................................................... 39
3.5. CULTURE ...............................................................................................................................40
SWOT ANALYSIS OF THE SECTOR OF CULTURE IN DANUBE SERBIA ......................... 42
CONCLUSIONS ...................................................................................................................................... 43
IV KEY ASSETS AND VALUES OF THE IDENTIFIED SECTORS ............................. 45
4.1. AGRICULTURE AND RURAL DEVELOPMENT ............................................................45
4.2. TRANSPORT .........................................................................................................................46
Road .......................................................................................................................................................... 46
Rail............................................................................................................................................................. 46
Inland waterways................................................................................................................................ 47
Air .............................................................................................................................................................. 47
Intermodal transport......................................................................................................................... 48
4.3. SME DEVELOPMENT .........................................................................................................49
Value propositions for the purpose of territorial marketing ............................................... 50
4.4. ENVIRONMENT ...................................................................................................................52
4.5. CULTURE ...............................................................................................................................54
V UNDERSTANDING TERRITORIAL MARKETING STRATEGY ........................... 57
PROPOSED VISION OF THE DANUBE SERBIA REGION ..................................................60
PROPOSED MARKET POSITIONING OF THE DANUBE SERBIA REGION...................60
VI STRATEGIC MARKETING GOALS ............................................................................ 61
6.1. TO CREATE AWARENESS OF THE DANUBE SERBIA REGION AND ITS
POTENTIALS ................................................................................................................................61
6.2. TO ENSURE THE QUALITY IN THE MIX OF OFFERED PRODUCTS AND
SERVICES .......................................................................................................................................62
6.3. TO FOCUS ON MARKETS / SEGMENTS WITH THE HIGHEST POTENTIAL ......63
VII PRODUCT STRATEGY ............................................................................................... 65
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
PRODUCT CLUBS / CLUSTERS................................................................................................65
DANUBE SERBIA AS AN INVESTMENT DESTINATION ...................................................67
DANUBE SERBIA QUALITY PROGRAMME ..........................................................................68
VIII STRATEGY OF TARGET GEO MARKETS AND SEGMENTS ............................ 70
8.1. TARGET GEO MARKETS ...................................................................................................70
8.2. TARGET SEGMENTS / AUDIENCES OF THE TERRITORIAL MARKETING
STRATEGY.....................................................................................................................................72
Residents of the Danube Serbia – raising awareness / building commitment of
residents ................................................................................................................................................. 72
Local communities – mobilizing local communities ............................................................. 72
Tourists – attracting visitors / tourists...................................................................................... 73
Export markets - consumers of the goods produced in the region ................................ 73
Investors – encouraging small business development ........................................................ 73
Investors – accessing "local" multinationals............................................................................ 73
Potential partners – utilizing links with Danube Serbia neighboring areas ............... 74
Sponsors – ensuring further support from EU and bilateral donors ............................. 74
IX BRANDING STRATEGY .............................................................................................. 75
POSITIONING IS ABOUT STORYTELLING ...................................................................................... 80
STORYTELLING IS ABOUT EFFECTIVNESS ................................................................................... 80
EFFECTIVENESS IS ABOUT RELEVANCE ....................................................................................... 81
RELEVANCE IS ABOUT BENEFITS..................................................................................................... 81
X COMMUNICATION AND DISTRIBUTION STRATEGY ......................................... 82
10.1. Internal communication strategy .............................................................................83
10.2. External communication strategy.............................................................................84
PR strategy ............................................................................................................................................. 85
10.3. Sales and distribution strategy ..................................................................................87
Investment promotion ...................................................................................................................... 89
Public diplomacy .......................................................................................................................91
XI MARKETING INFRASTRUCTURE ............................................................................ 92
XII MANAGEMENT AND ACTION PLAN ..................................................................... 97
ACTION PLAN............................................................................................................................ 100
Action set 1 - Ensure requirements / prerequisites for achieving quality................ 100
Action set 2 – Building Administrative Capacity .................................................................. 103
Action set 3 – Building Community Capacity......................................................................... 105
Action set 4 – Targeting Strategic Sectors and Relevant Markets ................................ 107
CROSS CUTTING ISSUES ........................................................................................................ 109
Environmental sustainability ....................................................................................................... 109
Minorities inclusion ......................................................................................................................... 109
Gender equality .................................................................................................................................. 110
COMPETITIVENESS PROGRAMMES .................................................................................. 111
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TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
I INTRODUCTION
Austrian Development Agency (ADA) has been implementing the programme
"Socio – Economic Development of the Danube Serbia Region ", which is the first
programme in the context of implementation of actions and measures of the EU
Strategy for the Danube Region in Serbia. The programme aims to advance the
comprehensive and sustainable socio-economic development opportunities for
the Danube Serbia Region and Serbia as a whole, by maximizing investments of
the private sector, developing accompanying job creation potentials and
increasing atractiveness of the Danube Serbia Region to foreign investors
through infrastructure development.
During the previous phase of the programme, the study "Danube – Serbia:
Building a European Gateway" was developed and presented. The purpose of the
study is to put the EU Strategy for the Danube Region (EUSDR) into operation in
Serbia. The study has focused on the challenges facing Serbia in achieving
sustainable export-led growth and new employment generation, especially in
Government's priority industries, how EUSDR measures can be connected to the
planning of national, provincial and local budgets and EU/ donor support, and
raising the visibility of Danube Serbia, as a river-based growth region of
international standing.
One of the measures foreseen with the study and is integral part of the
Component 2 of the programme, designed to improve visibility of the Danube
Serbia Region and to sensitize and actively engage Danube Serbia Region
stakeholders in socio-economic development initiatives, is Territorial marketing
of Danube Serbia within Danube Europe.
The aim of the territorial marketing is to convey the spirit of the region ("sense
of place") as somewhere that is attractive to invest, do business, visit, work or
live in and to buy products from the region.
The challenge is to position Danube Serbia so that it attracts investment and
trade, to achieve the vision of a "global trading region" and the goal of increasing
exports and jobs, and not as a source of cheap raw materials and labour.
Territorial marketing strategy will provide framework for enhancing socioeconomic development in the Danube Serbia region, to attract investors and
promote the attractiveness of the region.
An essential element in territorial marketing is the fact that it is not just the
marketing of an administrative jurisdiction. Nor is territorial marketing merely
the institutional communication undertaken by territorial authorities. Rather it
is an effort to match the expectations of potential clients with a defined
geographical area. Territorial marketing is, in fact, a gathering together of an
aggregate of assets and opportunities, directed at an audience whose needs have
been identified and understood. It is a way to build competitive identity of the
region.
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TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Starting point in preparing the analysis and for understanding the needs, wants
and expectations of the target audience (investors, buyers and the media) were
the results of the previous phases of the SEDDSR programme, especially findings,
conclusions and recommendations from the study "Danube – Serbia: Building a
European Gateway". According to the agreement with ADA, special attention
was made to analysis of the current status and foreign direct investment trends
for the identified key five sectors (agriculture, transport, environment,
development of small and medium-size enterprises and culture) in order to
indicate perspectives of the sectors to build prosperity within Danube Serbia.
Since the elaboration of territorial marketing strategy is a participative process,
relevant stakeholders were included in the process of defining the framework of
the strategy through intervieweing target audiences and organization of
workshops / focus groups that discussed the current status, current projects and
programmes, new programmes / initiatives and perspectives of intra and inter
sectoral cooperation of the key identified sectors.
In the context of the strategy, it is important to bear in mind that the Danube
Serbia region is more than budget(s) and businesses. It encompasses people,
culture, historical heritage, physical assets and opportunities. The real challenge
that remains is to find a way to become a place to start and locate a business, or
plan a retirement; to be the place for raising the family, or to come to a vacation,
hold a convention and, generally, to live in. It is about quality of life – the quest
for livable, investible and visitable region.
In that respect, Strategic Destination Marketing Plan for the Danube Serbia
Region has been developed as the part of the same package with this strategy,
but has been prepared as a separate document, comprising of tourism marketing
strategy and general operational marketing plan (marketing toolbox).
Tourism marketing is of paramount importance in the context of territorial
marketing, since its aim is to attract and sell a more or less tangible product – a
holiday, or a visit – to a consumer who is in the market for such a product. A
good experience of visiting a place has the power to change the image of the
region – quickly and forever in the mind of the visitor. People frequently change
their minds or confirm their preconceptions about countries / regions once they
visit them. This is, actually, a very strong instrument in building a regions
reputation and its competitive identity.
It is important to say that Serbia has not yet undergone through the process of
country branding and tourism branding. In that respect, development of the
territorial marketing for the Danube Serbia can be perceived as development of
"sub-regional" marketing strategy. Nevertheless, the assumptions and
recommendations of Territorial Marketing Strategy are applicable to the Danube
Serbia region, but can be used for the wider area as well. The emphasis is on the
immediate hinterland of the River Danube in Serbia, that includes 11 districts:
Belgrade, Bor, Braničevo, Central Banat, Mačva, Podunavlje, South Bačka, South
Banat, Srem, West Bačka, and Zaječar (please see the map below).
7
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
MAP 1
The key goal of Territorial Marketing Strategy for the Danube Region is to
strengthen the capacity of communities and clusters along the Danube to adapt
to the changing marketplace, seize opportunities and sustain their vitality. In
that respect, communities should be oriented towards satisfying the needs of
their key constituencies – citizens, workers, businesses, visitors, new businesses
and investors. Thus, the marketing strategy for the Danube Serbia region
recommends following activities1:
1. Designing the right mix of community features and services;
2. Setting attractive incentives for the current and potential buyers and users of its
goods and services;
1
Marketing Places, Kotler P., Haider D., Rein I.; The Free Press, New York, 1993
8
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
3. Delivering a place's products and services in an efficient, accessible way
4. Promoting the region's values and image so that potential users are fully aware of
the Danube Serbia region's distinctive competences.
9
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
II ECONOMIC DEVELOPMENT AND INVESTMENT TRENDS
Global and national trends of foreign direct investments
The general definition of FDI, based on OECD, Detailed Benchmark Definition of
Foreign Direct investment, third edition (OECD, 1996) and International
Monetary Fund, Balance of Payments Manual, fifth edition (IMF, 1993), describes
Foreign Direct Investments (FDI) as an investment involving a long-term
relationship and reflecting a lasting interest and control by a resident entity in
one economy (foreign direct investor or parent enterprise) in an enterprise
resident in an economy other than that of the foreign direct investor (FDI
enterprise or affiliate enterprise or foreign affiliate).
Empirical evidence suggest that most of countries are competing to attract as
much as possible FDI`s in order to boost their economic growth, where countries
with less developed financial markets and economies in general, tend to use
different systems of subsidies and related public policies to attract FDI`s in order
to counter costs generated by their own inefficiencies in economic, legal or
political systems like corruption, ineffective public administration, rule of law,
etc.
GRAPH 1
Source of data: OECD, Foreign Direct Investment (FDI) Statistics - OECD Data, Analysis and Forecasts
The Graph 1 clearly indicates that paste of growth of FDI inward stock was
increasing worldwide, in OECD and EU countries throughout the period, with
only one exception – the crises period (2008). Also, the graph suggests that
crises period has equally affected all target markets for FDI, irrelevant of their
geographical or economic area.
However, although we can observe similar trends of growth before the crises
period, it is obvious that paste of growth of FDI inward stocks is starting to differ
pending of the regions and economic areas, resulting that EU is facing substantial
slowdown compared to total world and OCED countries. It may be further
expected that, due to recent developments in Eastern Europe, particularly the
conflict in Ukraine, EU will continue to slow down in paste of growth of FDI
inward stock, further affecting its economic growth rates. Similar patterns of
10
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
slowdown both in FDI and economic growth could be expected in Russian
Federation, with overall stronger negative effects.
Having in mind that more than 85% of all foreign trade of Serbia and almost 90%
of all FDI to Serbia come from Europe, be it EU, the region or other European
countries (Russia, Norway) it is expected that slowdown in these markets (FDI
and economic growth) will directly reflect on Serbia and the Danube Serbia
region.
GRAPH 2
Source of data: OECD, Foreign Direct Investment (FDI) Statistics - OECD Data, Analysis and Forecasts
Graph 2 reflects the volatility of FDI in certain years, with two sharp declines,
after the 2000 and after 2008. The trend lines clearly show the difference in
paste of growth of the received FDI between total world, OECD countries and EU
countries in the observed period, with EU countries having the slowest growth
rate. Although none of the observed groups of countries, reached pre crises
levels of FDI inflow, it is clearly visible that both OECD and EU countries are
lagging behind if compared to trend of the total world.
GRAPH 3
Source of data: The World Bank
Danube countries have experienced severe decline in net FDI inflow measured in
per capita terms after 2008. Most of countries, except Germany, belong to more
or less developed “developing countries”, as defined by the World Bank, of which
Germany is and “old” EU member, Slovakia and Hungary (2004), Romania and
Bulgaria (2007) and Croatia (2013) are new EU members, while Serbia is a
candidate country.
11
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Graph 4 indicates strong volatility in FDI net income per capita in case of
Hungary and to some extent in Germany, with both countries have positive and
negative net inflows of FDI per capita.
Graph 5 suggests that only Hungary had significantly above average net FDI per
capita inflow in the observed period, and Bulgaria to a certain extent, while all
other observed countries had bellow average net FDI per capita inflow compared
to the Danube countries.
GRAPH 4
GRAPH 5
Source of data: The World Bank
Most of countries of southeast Europe have developed significant policies
mechanism to attract investments and push their economic growth.
In Serbia particularly, the pattern of promotion and subsidizing FDI was
followed by almost all Governments after the democratic changes from October
2000, irrelevant of their political background. Special Government agency –
Serbian Exports and Investment Promotion Agency (SIEPA) was founded to
facilitate Government efforts to attract investments, while several regional and
local agencies were also established. According to SIEPA web site,” Serbia
Investment and Export Promotion Agency (SIEPA) is a government organization
dedicated to effectively helping foreign investors and buyers, while raising
Serbia's profile in the minds of international business decision-makers. Created
in 2001 by the Government of the Republic of Serbia, our mission is to support
foreign companies seeking to set up or expand in Serbia and Serbian companies
when doing business worldwide.“
GRAPH 6
Source of data: National Bank of Serbia
12
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
It can be noticed from graph 6 that Serbia still has not recovered from the 2008
crisis in terms of total FDI net inflow. Not only that it didn’t reach the pre-crises
levels, but also it is still far below the average of the observed period.
Thus, it can clearly be observed that external factors have heavily influenced the
net level of FDI in all of the observed countries. However, it is also clear that
within the overall trend that shaped the net FDI inflow, some countries have
managed to perform better than others. Thus, it remains to be investigated in
further analysis how to enhance the competitiveness set of Serbia and in more
particular, Danube Serbia to attract more FDI and generate economic growth and
new jobs.
GRAPH 7
Source of data: National Bank of Serbia/SIEPA
The inflow of FDI to Serbia in 2005-2013 primarily came from European
countries, mostly EU members. However, according to SIEPA, the actual amount
of U.S. investment is significantly higher than the official figure due to their
companies investing primarily through European affiliates. This also holds for
Belgium, Denmark, Israel, and a number of other countries. It should be noted
that almost 34% of all FDI`s, as per available data, came to Serbia from the
Danube countries.
TABLE 1
Investment value (EUR mil.)
(2004-2013)
% of total
Financial intermediation
Manufacturing
Wholesale, retail and repairs
Real-estate activities
Transport, storage and repairs
Construction
Mining and quarrying
Agriculture, forestry and fishing
Other utility, social and personal services
Professional, scientific and technical services
Accommodation and food service activities
Public administration and social insurance
Electricity, gas and water
Administrative and support service activities
Education
4,968
4,766
3,167
2,459
2,456
586
544
194
136
119
97
83
73
26
4
25
24
16
12
12
3
3
1
1
1
0.49
0.42
0.37
0.13
0.02
Total
19,678
Industry
Source of data: National Bank of Serbia / SIEPA
Almost two thirds (66%) of all FDI`s in Serbia, in period 2004-2013, went into
financial intermediation sector, manufacturing and wholesale, retail and repairs
13
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
sectors, while transport attracted around 12% and agriculture attracted roughly
1% of all FDI`s.
TABLE 2
City/municipality
Belgrade
Novi Sad
Zrenjanin
Inđija
Stara Pazova
Vršac
Bačka Palanka
Pećinci
Sremska Mitrovica
Ruma
Novi Bečej
Bečej
Koceljevo
Loznica
Pančevo
Smederevo
Zaječar
Apatin
Kovin
Nova Crnja
Odžaci
Šabac
Sečanj
Sombor
Alibunar
Bač
Bački Petrovac
Bela Crkva
Beočin
Knjaževac
Kovačica
Šid
Smederevska Palanka
Titel
Vrbas
Žitište
Total
Number of projects
76
22
13
10
9
9
7
7
7
6
4
3
3
3
3
3
3
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
359
Percentage
21.30%
6.10%
3.60%
2.80%
2.50%
2.50%
1.90%
1.90%
1.90%
1.70%
1.10%
0.80%
0.80%
0.80%
0.80%
0.80%
0.80%
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
Value (eur million)
5743.2
2196
890.7
693.1
251.1
248.4
180
174.5
169.6
163.8
135
77.2
70
62.5
60
60
52.8
52.4
40.7
34
31
30.5
28
27.5
22.3
21.2
21
18
17
9.9
8
3.2
3
1.5
0.2
0
20858.4
Percentage
27.50%
10.50%
4.30%
3.30%
1.20%
1.20%
0.90%
0.80%
0.80%
0.80%
0.60%
0.40%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
0.20%
0.20%
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Jobs
40657
17804
4969
4737
3441
3054
2885
2424
2283
1838
1307
939
900
890
727
708
635
618
510
480
450
400
376
340
300
300
226
177
150
120
82
38
25
0
0
0
156636
Percentage
25.90%
11.40%
3.20%
3.00%
2.20%
1.90%
1.80%
1.50%
1.50%
1.20%
0.80%
0.60%
0.60%
0.60%
0.50%
0.50%
0.40%
0.40%
0.30%
0.30%
0.30%
0.30%
0.20%
0.20%
0.20%
0.20%
0.10%
0.10%
0.10%
0.10%
0.10%
0.00%
0.00%
0.00%
0.00%
0.00%
Sou
rce: Horwath HTL
The data in the table 2 suggest strong correlation of FDI with major population
and economic centers in Serbia. Thus, looking at the Danube Serbia region,
measured by number of projects, value of FDI or number of jobs created,
Belgrade and Novi Sad have attracted most significant number of FDI`s.
Furthermore, two reltively smaller municipalities in population terms, Indjija
and Stara Pazova, have heavily utilized the fact that are geographically located in
close vicinity of Belgrade, while enjoying relatively good transport connection to
both northern and western part of Corridor X (Belgrade-Zagreb and BelgradeNovi Sad-Budapest highway). In general, we can presume that potential demand
or vicinity to biggest markets in country (including goods, services and labor
markets), as well as existing production capacities (privatization of existing
companies) have strongly influenced targeted cities / municipalities for FDI
inflow.
However, direct access to Danube seem not to have influenced significantly the
decisions where to invest, although it is noticeable that municipalities / cities north
or west from Belgrade, have been more successful in attracting FDIs, compared to
cities / municipalities to the east and south from Belgrade, which can partially be
14
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
explained with proximity of EU markets, access to national markets, especially
labor market and access to general infrastructure.
It can be further noted that within Serbia, different regions have substantially
different capacity and ability to attract FDIs. According to Vojvodina Government
web site: “At the prestigious Financial Times’ competition, ranking “European
Cities and Regions of the Future”, Vojvodina was proclaimed the first among 54
mid-sized regions in effectiveness of foreign investments, competing with the
Italian, Spanish and Slovenian regions. In addition, Vojvodina was, based on the
same criterion, ranked fourth among all European regions and cities, and was
ranked fourth in the South Europe for its strategy for the attraction of foreign
investments.” In general, some of the basic factors influencing FDIs-whereabouts
decision, like geographical position, natural resources, size of local markets,
access to other markets etc. are beyond influence of national or local
governments.
In Serbia, particularly, most of FDI subsidies and related public policies are
formulated at national level, of which some directly stimulate FDI inflow to
certain underdeveloped municipalities or regions. According to SIEPA, following
national policies are in place to attract FDIs (http://siepa.gov.rs/en/indexen/invest-in-serbia/investment-incentives/ - Local):
State Grants
The National Employment Service Grants
Corporate Profit Tax Holiday
Corporate Profit Tax Credits
Carrying Forward of Losses
Avoiding Double Taxation
Salary Tax and Social Insurance Charges Exemptions
Annual Income Tax Deductions
Value Added Tax Exemptions in Free Zones
Customs-Free Imports
Local governments/municipalities in Serbia have very limited options, including
policy options, to attract FDIs. Most important, according to SIEPA, are:
City construction land lease fee exemptions or deductions, including the option of
paying in installments, with the prior consent of the Serbian Government;
City construction land development fee relief such as fee exemptions or discounts
for one-off payments;
Other local fees exemptions or deductions (e.g. the fee for displaying the company's
name).
However, it should be kept in mind, that these specifically targeted
municipalities / regions, have the support of the national government, as
they alone would not be able to attract FDI`s due to extremely bad
infrastructure and geographic location, low human capacity or other
deterring factors.
At the same time, we have witnessed that certain municipalities have managed
to use local policies to stimulate strong inflow of FDI`s, among which, Indjija
Municipality could be a good example.
15
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
III DEVELOPMENT CONTEXT – SECTOR BASED TRENDS AND
POLICIES
3.1. AGRICULTURE AND RURAL DEVELOPMENT
The importance of agriculture for the Serbian national economy is high, which is
confirmed by data on the sector's share in GDP, employment and exports.2 This is
the result of two basic factors: firstly the rate of restructuring in other sectors
has been slow, resulting in low investment activity and consequently low
employment opportunities in non-agricultural sectors; secondly, the high
availability of rich natural resources for agricultural production in Serbia3.
Less than 1% of all FDI inflow to Serbia was absorbed by agriculture sector.
Having in mind that agriculture represents one of the pillars for Serbian future
economic development, the recorded FDI levels in the sector remains low and
inadequate to substantially modernize the sector and boost the growth, because
of the following4:
low profitability of the sector
unstable economic and climatic conditions for the agricultural production
unfavorable agrarian structure
the absence of quality standards and government subsidies necessary for the
placement of agro- food products in foreign markets
The following are the main characteristics of the agriculture and rural
development in Serbia:
According to the Census in Agriculture 2012 there were 631.552 agricultural
holdings and 108.230 households with 45.002 ha of agricultural land and
livestock registered. Of the total number, 0.5% are holdings of legal entities
and unincorporated enterprises.
farms above 20 ha represent less than 1% of the holdings and use 7% of the
total agricultural area. Serbia's farms are fragmented, with a large part of the
farm holdings being (semi-) subsistence. There are also substantial regional
differences, where Vojvodina, especially north, has large farms, with modern
equipment and management structures.
Of the total utilized agricultural area, 30% is rented land
the average utilized agricultural area per holding extends over 5.4 ha
agricultural holdings raise 908.102 heads of cattle, 3.407.318 pigs, 1.736.440
sheep and 26.711.220 hens;
“National priorities for international assistance (nad) 2014-2017 with 2020 projections agriculture and rural
development”, Internet, http://www.evropa.gov.rs/Documents/Home/DACU/12/74/NAD%2020142017%20with%20projections%20until%202020%20(English).pdf
3 Berkum Siemen Van and Natalija Bogdanov (2012): Serbia on the Road to EU Accession: Consequences for Agricultural
Policy and the Agri-food Chain, CABI, Oxfordshire, UK
4 prof. dr Danilo Tomić, Visoka poslovna škola strukovnih studija, Novi Sad and prof. dr Miladin M. Ševarlić, Institut za
agroekonomiju, Poljoprivredni fakultet Univerziteta u Beogradu
2
16
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
the number of own tractor is 597.816,;
the average age of holders of family agricultural holdings is 59 years
The agriculture production is extensive, with cereals as the main value.
Affection of weather conditions is high, but there is a growing trend of
modern irrigation and anti-hail systems in the last 2 years.
Floods in 2014, made serious damage to agriculture, and raised awareness
and urge to address these issues in more structured manner.
Livestock production is declining
Agri-food supply chain suffers a lot of limitations in Serbia. Direct sales of
food is highly significant, and with growing trend.
growing trend in organic farming, but organic farming sector cannot
overcome obstacles of inefficient production, processing and marketing,
until interwoven processes are resolved, such as national agriculture budget
for organic production, poor supply chain organization.
There is an increased interest in raising plantations with high quality and
authentic regional varieties (Prokupac, Muscadine, Skadarka and others) and
locally created varieties (Probus, Sila, Morava and others)
One of the main tools available to regional agriculture comes from available EU
funds, and primarily Instrument for Pre-accession Assistance for Rural
Development priority area d) agriculture and rural development –IPARD-. The
main objective of the IPARD Program is to contribute to solving of the problems
of structural adjustment in agricultural sector and rural areas in order to
strengthen competitiveness in relation to European Union market.
Rural areas, directly linked to agriculture production and processing, suffer
from two important negative trends in Serbia: declining population and in
parallel, decline of women in rural areas.
Level of education, formal/informal, additional skills/knowledge is low.
Rural infrastructure needs investments, which cannot be done by local selfgovernments without additional support. The fact that local infrastructure is not
included in IPARD Program 2014-2020 for Serbia, strikes as worrying.
LEADER (Liaison Entre Actions de Développement de l'Économie Rurale) is a
powerful tool for linking and activating public, private and civil sector
sectors. Local Action Groups, which follow EU 25 years old and well proven
methodology for local development – LEADER http://enrd.ec.europa.eu/enrdstatic/leader/leader/en/leader-guide_en.html,
integrated
and
inclusive
approach to local development can be achieved, and support mechanism for
marketing created. LAGs make development processes visible and accessible
to stakeholders, and can build the capacity of stakeholders to grasp
opportunities for development and it's marketing. In Serbia there are 26
potential Local Action Groups (LAG), established by the EU rules for LEADER.
More on LAGs in Serbia: http://www.leader.org.rs/next/en/ipard202
In general, agriculture sector in Serbia had achieved some progress, but still
is experiencing systemic challenges that need to be addressed. In order to
achieve significantly higher competitiveness in relation to EU and the region,
17
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
the reforms and more innovative approach need to be. Ability to use EU funds
may be a key success factor in the future.
SWOT ANALYSIS OF THE ARD IN DANUBE SERBIA
Strengths
Rich land resources, favorable ratio of available land per capita and per an
employee in agriculture;
Richness in biodiversity;
Good quality and structure of the agricultural land;
Favorable climate conditions for agricultural production;
The potential for the production of high value products, including
growing organic production
Well positioning and competitiveness on the regional market and to
Russia and CEFTA countries
Export of corn shows strong growth
Potential for direct marketing and creation of value added products in
farm households
Progress made with Leader implementation in Serbia: 26 potential Local
Action Groups (LAGs), including 605 rural stakeholders, and covering
15% of the national territory
Progress with regard to alignment with the CMOs, rural development
policy, as well as food safety, veterinary and phytosanitary policy
Diversification of rural economy: rural tourism
Significantly improved technology in some sub-sectors (mill industry, oil
production companies, meat and milk processing facilities, freezing and
processing facilities for fruit, grapes and vegetables);
Accessibility of the raw materials produced in the country;
Significant areas of High natural value fields;
Significant biomass production, possibility of production of energy crops
and usage of renewable energy sources;
Multi-ethnicity and multi-culturality in Serbian rural areas/villages
Danube and Sava waterways
Increased interest in raising plantations with high quality and authentic
regional varieties (Prokupac, Muscadine, Skadarka and others) and locally
created varieties (Probus, Sila, Morava and others).
Weaknesses
Unfavorable agrarian structure
The absence of quality standards and government subsidies necessary for
the placement of agro- food products in foreign markets
Out-dated mechanisation and technology, insufficient storage facilities
Inefficient system of agricultural knowledge transfer
Low quality of seeds and fertilizers
Insufficient number of cattle;
Low awareness on environmental issues and food safety standards
Lack of educated, trained and skilled labour force in sector
Large part of the agricultural sector is not integrated in the agri-food
supply chain
18
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Lack of interest in cooperation among local entrepreneurs
Unused natural resources and cultural heritage of rural areas
Low administrative capacity (number and quality)
Weak monitoring of effects of policy implementation
A lot of EU framework legislation to be transposed
Weak national administration and decision makers’ capacities for
innovative and up-to-date RD policy planning and implementation
Insufficient cooperation between state and CSO
Inexistence of producers’ groups and, as cause for that, lack of national
policy to support their establishing and development
Lack of timely information towards nonstate actors
Quality of life in villages is low (absence of basic institutions such as
ambulance, pharmacy, school, cultural institutions)
Agriculture and rural development policy frequent discontinuity
Monopoly or near-monopoly situations
continuing outmigration of young people
Opportunities
Possibility of export growth, especially of products of higher added value
The possibility of attracting FDIs
Increasing market of existing upstream and downstream industries
Ability to generate new jobs and growth of employment through diversification
of goods and services provided by farms
Availability of financing from EU and bilateral funds
IPARD Programme 2014-2020
Strong CSOs willing to support the sector with skills, knowledge and time
Demand for high quality top segment products
Threats
The absence of an adequate response to the challenges of climate change
and global warming
Increased competition on the domestic and regional markets
Continuation of the intensive depopulation of villages and its
consequences
Lack of stability and often changing sector’s policy and administration
responsible for its implementation
CONCLUSIONS
Agriculture and rural development in Serbia has significant resources, both in
terms of their scope and diversification, providing significant potential for
production growth, products and services diversification and creation of the new
and innovative products and practices. On the other hand, it is necessary to
invest significant efforts in structural reforms, in terms of strengthening their
economic efficiency and competitiveness. Special emphasis should be given to
education and trainings for relevant actors in ARD sector.
Strategy for Agriculture and Rural Development 2014-2020 points out the
directions of future reforms of agricultural policy and institutional framework:
19
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
1. “Agricultural policy reform to enable a dynamic restructuring of the
sector, the efficient EU accession through gradual adjustment of the policy
with CAP and a modern role of the state in agricultural development
management in rural areas;
2. Adoption and full implementation of the legal framework which provides
the legal basis for both implementation of the Strategy itself and for
adjustment of the national laws with EU legislation;
3. Institutional reforms that would enable meeting the strategic goals,
efficient implementation of the selected policy and adjusting the
administrative structures with EU requirements”.5
Danube Serbia Region should focus its efforts on the following three levels:
1. Keep up the good job:
a. Corn export
b. Orchards (especially apples and cherry tomatoes) with new
modern technologies
c. Introducing vineyard geographic origin system, wines with
geographical indications
d. LEADER methodology for rural development: Local Action Groups
(LAG) to be fully supported by national budget, and from 2017 to
become fully operational under IPARD Program
e. Foster rural tourism
2. Significantly improve most promising aspects:
a. Foster produce of higher processing phase
b. Clarity on the role of different levels of governance
c. Professionalization of promotion and marketing of agro products
d. Increase high value added products
e. Increase support for biomass production, and energy from crops
waste and usage of renewable energy sources
f. Develop domestic market for organic products
g. Beekeeping and honey production: growth in the number of
households and number of hives. Quality honey in Danube Serbia
Region (for instance Deliblatska Pescara acacia honey, etc.)
3. Mitigate the risks as much as possible
Risks stated in SWOT should be mitigated by carefully designed measures. Civil
Society Organizations will be important actors, representing the interests of the
society and monitoring the public administration work.
The additional tasks in front of the main actors of Serbian ARD sector is highly
demanding process of Serbia and EU negotiations on agriculture and rural
development. Official Bilateral screening Results Report of European
Commission for Chapters 11, 12 and 13, will show the gaps to be bridged.
Strategy for Agriculture and Rural Development 2014-2020, Official Gazette of the Republic of Serbia, no. 85/14, August
12th, 2014
5
20
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
3.2. TRANSPORT
The Danube region in Serbia cannot be observed in monolithic terms in relation
to access to efficient transportation. Measured by its transportation connectivity
and accessibility to main transport arteries, it can clearly be divided in two major
parts:
1.
The region north-west from Belgrade and municipalities south-east of Belgrade with
direct access to Corridor X and
2. The region south-east of Belgrade, without direct access to Corridor X
Northern and western parts of the Danube region in Serbia are intersected by
highways (To Budapest - HU and Zagreb – CRO) and railway Corridor X as well as
by Danube - the Corridor VII. Furthermore, these parts of Danube region in
Serbia host most of Serbia`s population, and are relatively easily accessed from
both rest of Serbia and abroad.
On the other side, mostly mountainous regions east and south-east from
Belgrade, apart from municipalities with access to highway (corridor X), have
challenging transport connection both to Serbia and rest of the region. Even
though most of these municipalities have access to Danube, it is still heavily
underutilized as transport potential in these municipalities.
For example, the shortest distance by road from the municipality of Kladovo is
via Golubac - Veliko Gradište - Požarevac - Corridor X (E-75), a journey that takes
on average just over 3 hours.6
The MAP 2, given bellow, clearly shows the difference in land transportation
infrastructure availability in different regions of Serbia, with obviously dense
and relatively more developed infrastructure in region north and west from
Belgrade, compared to the region south-east from Belgrade.
Overall, we can conclude that transportation infrastructure and access to main
corridors and airport (Nikola Tesla), does not hamper the attractiveness of
regions north and west from Belgrade nor for municipalities south-east from
Belgrade with direct access to Corridor X.
On the other hand, we can assume that for the rest of the Danube region,
especially the municipalities south-east from Belgrade without direct access to
Corridor X, limited access to efficient transportation system, be it highways,
railways or air transport, significantly hampers the attractiveness.
6Danube-Serbia:
Building a European Gateway, Challenges and Opportunities
21
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
MAP 2
Source: Danube-Serbia: Building a European Gateway, Challenges and Opportunities
Inland waterways
Organization of the customs, the police, and the port authorities and inspection
services is, comparatively, still at the low level. There is still a practice of waiting
for days for completion of the procedures required for customs clearance and
control of goods.
Rail transport
The law regulating railway transport provides for the separation of railway
infrastructure management of the transport, i.e. operations. However, there is
still a lack of bylaws and weak implementation of existing laws, which prevents
effective involvement of private railway operators in transport operations.
Several small domestic private companies, as well as “daughter” companies of
larger systems, have a license for the performance of rail transport in Serbia, but
22
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
due to the lack of regulations that define the use of national railways, their
activity is limited to maneuver the internal tracks within larger economic
systems or are at service to "Railways Serbia "where there is a lack of capacity.
The railway infrastructure is in a poor condition and still far from European
standards. With the construction and reconstruction of railway infrastructure,
measures to improve organization in the system should be introduced,
particularly in the area of border crossings. If the raise of the average speed on
the lines is not accompanied with shortening time delays at border crossings,
investing in infrastructure is, practically, not meaningful. Organization of
customs, police and inspection services must be coordinated, as an international
border co-operation on both sides of the borders.
Road transport
The construction of the road network improves the accessibility to the places
and regions along the Danube and reduces travel time; however, current
organization can be significantly improved, primarily at border crossings, and at
tollbooths where in the summer season waiting time is for several hours.
A measure that can greatly contribute to the reduction of lost time on the
highways is modification of toll collection system, where the existing toll booths
and manual toll collection slows down the traffic. Furthermore, the loss in the
percentage of toll, especially on the branch of Corridor Xb from Novi Sad to
Hungary border should be solved.
Intermodal transport
Intermodal transport is still underdeveloped - the main limitations in that
respect are following:
Lack of a critical quantity of goods that can be containerized and mass-transported
by inland waterways
The trade deficit, which causes a large number of empty containers that are pulled
into the depots in Europe
Relatively poor connectivity of river ports with road and railway Corridor X
Low efficiency of rail and river transport
The unreliability of rail and river transport (the poor condition of the railways and
waterways, the impact of water levels in rivers)
Intentedness and the fragmentation of industrial production
Lack of equipment at ports that would ensure the collection and consolidation of
cargo (e.g., hubs or aggregation stations)
Lack of "environmental taxes" for transport modes that are biggest polluters, and
therefore no possibility of subsidizing intermodal transport
23
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
SWOT ANALYSIS OF THE SECTOR OF TRANSPORT IN DANUBE SERBIA
Strengths
The favorable geographic position (apart from the traditional approach of
linking the east and west, Serbia is located in the territory that belongs to
the Danube and the Adriatic-Ionian macro-regions of Europe and officially
participate in both strategies) MAP 3
The level of development of the transport network (branching and
density)
There are infrastructural resources
Large resource potential of inland waterways (Danube - Corridor VII,
Sava, Tisa and Duct DTD)
The defined frameworks of regional cooperation (SEE, the Danube and
the Adriatic-Ionian Strategy) in accordance with the new European
transport policy
The existence of professional and technical resources in the Republic of
Serbia
MAP 3
Source: European Commission – Macro-regional strategies
Weaknesses
The political situation of the country and its instability
Transport infrastructure on corridors through the region of the DanubeSerbia is not fully developed and is not equipped with modern technical
and technological systems
24
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
Lack of trust due to a series of political and economic discontinuities in
the past (war, sanctions, NATO bombing, unresolved relations with
Kosovo *)
Modes of transportation systems are not integrated (lack of mutual
connections and interchanges - intermodality)
Lack of capacity of institutions and lack of mutual coordination
Lack of motivation of experienced managers, administrative and technical
staff
Inertia changes in administrative procedures (even when the rules
changed, they are usually difficult to implement)
Lack of stable funding sources
Lack of supporting action plans along with strategies
Opportunities
Defining the region as a "hub" - at junctions of primary corridors
(Corridor X, Corridor VII, Route 4 which connects Corridor IV of the
foregoing and the Adriatic Highway)
Corridor VII (Danube river) is one of the priority axis TEN-T network of
the EU
The interests of countries in the region for the development of basic
regional transportation network and the ability to influence the
development plans of the European Networks for Serbian Development
Goals (SEE, European macro-regions)
Shorter travel distances Corridor X in comparison to the TEN-T priority
axes southeast (Corridor IV), in a better, more comfortable and more
pleasant environment
New models of investment in the transportation sector (concession, PPP,
use of European funds)
The development of a multimodal transportation system that is costeffective and "greener"
Preservation of the environment, potentials of the tourism offer and
intensification of tourist flows
Threats
Fragmentation of interests within the state
Resistance to change and lack of institutional reorganization in the
previous period
Ineffective implementation of strategic and development projects
Pan-European Corridors IV, IVa and Vc in the immediate vicinity, that
with the entry of Turkey into the NCTS (New EU Transit System) threaten
to distract transit traffic if Serbia not rapidly enters the NCTS and not
tempt bilateral cooperation in the field of VAT refund on fuel to foreign
carriers
Possible development strategies of neighboring countries which are not
complementary to the Transport Strategy of the Republic of Serbia
Unresolved problems of financial accountability, debt repayment,
sustainable financing and guarantees for loans
Unstable and inadequate funding for the development and maintenance
of the transportation system
25
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
The non-harmonized education system with the needs of the transport
industry and emigration of professionals
CONCLUSIONS
The overall current situation in terms of infrastructure is poor due to long
periods without maintenance. On the other hand, there is an infrastructure
network, well branched with an average density of EU-27.
Traditional transport flows across the Danube region are still active, especially in
transit by road and railway transport.
Certain areas and municipalities have problem to access to transportation
network and there is a need to build local and regional road network aiming to
increase the attractiveness of these areas. This is especially visible in the south east parts of Danube region in Serbia, although it is hard to justify new
investments, due to the small number of inhabitants and the very low level of
current traffic.
The main transport network is in a fairly good condition. Construction works on
major transportation routes are intensive in order to achieve better cohesion of
the Danube region and Serbia in general, as well as to increase connectivity with
the surrounding regions in accordance with the plan documents for development
of infrastructure of South East Europe.
There are great potentials for increasing accessibility and opeining the space for
investments in south-east part of Danube Serbia, especially with completion of
Corridor X and its branch to Bulgaria, as well as with completion of Belgrade
bypass.
An especially interesting are rail, river and intermodal transport, given that
require urgent investment in basic infrastructure, where intermodal transport is
potential of all modes of transport aggregating functions and advantages of each
of the modes in unique transport system.
In the forthcoming period, in addition to investments in infrastructure,
particularly railways, water and intermodal transport - which would reduce
transportation costs, special attention should be paid to the so-called “Soft
measures” and deregulation of transport markets, in order to simultaneously,
improve the efficiency of the transportation system, while investing in
infrastructure. In that way with minimal investments much bigger effects and
savings in transportation will be achieved, comparing to sole construction.
26
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
3.3. SMALL AND MEDIUM ENTERPRISES DEVELOPMENT
SME sector represents one of the most important pillars of the EU economy,
where micro-enterprises in 2012 employed approximately 86.8 million people.
This represents 66.5% of all European jobs for that year. Micro-enterprises
provide just under a third of that total employment figure. The SME sector as a
whole delivered 57.6% of the gross value added generated by the private, nonfinancial economy in Europe during 2012 according to European Commission
Annual Report on EU SMEs 2012/2013.
Although national Governments in South-East Europe see SME sector as an
important part of national economies, they have so far mostly failed to develop
systematic support and boost its economic performance. Most of subsidies
offered to investors target large investments, brining large number of employees.
This is particularly case in Serbia, where Regulation on terms and conditions of
attracting direct investments7, specifically targets large investors.
However, this leaves regional governments a lot of free space to find the ways to
support the development of local SME potential and enhance the local economic
growth, but also to directly approach SME sector of more developed economies
like Germany and Austria and market their local investment opportunities.
In terms of total number of companies in Serbia, micro, small and medium
enterprises represent absolute majority, with more than 99%.
GRAPH 8
GRAPH 9
Source of data: Statistical yearbook of the Republic of Serbia, 2013
SME sector is Serbia creates roughly 60% of total labor demand in Serbia, and it
is suspected to be the most disbursed sector of economy, operating in both large
industrial and population centers, but also reaching the most rural areas of
Serbia.
7
http://www.siepa.gov.rs/files/pdf2010/Uredba_o_uslovima_i_nacinu_privlacenja_direktnih_investicija_2012.pdf
27
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
TABLE 3
Data for 2011
Micro (0-9)
%
Small (10-49)
%
Medium (50-249)
%
Large (250+)
%
total
241
0
39
0
17
1
9
2
307.5711
13482
18
2634
29
866
41
217
45
17287.88
Electricity, gas, steam and air conditioning supply
Water supply; sewerage, waste management and
remediation activities
344
0
42
0
26
1
15
3
429.1729
490
1
151
2
124
6
30
6
803.2406
Construction
Wholesale and retail trade; repair of
motor vehicles and motorcycles
6118
8
887
10
223
11
52
11
7308.829
30034
41
2758
31
407
19
71
15
33361.1
Transportation and storage
4179
6
580
6
111
5
31
6
4918.441
Accommodation and food service activities
2077
3
317
4
80
4
6
1
2490.168
Information and communication
3411
5
422
5
73
3
18
4
3936.828
Real estate activities
730
1
41
0
9
0
0
0
781.8821
Professional, scientific and technical activities
9554
13
869
10
110
5
8
2
10568.96
Administrative and support service activities
2448
3
250
3
59
3
30
6
2795.932
Mining and quarrying
Mnufacturing
Source of data: Statistical yearbook of the Republic of Serbia, 2013
The data show that majority of the SME companies were working in wholesale
and retail trade and repair of motor vehicles and motorcycles sector, 41% in
micro, 31% in small and 19% in medium enterprises. It should be noted that
medium enterprises represent 41% of manufacturing companies in Serbia.
TABLE 4
Serbia - Basic Figures - 2013
Value added
Number of
enterprises
Number of
employees
Micro
72,995
210,101
(Billion €)
2
Small
8,984
181,033
3
2,103
223,367
3
84,082
614,501
7
Medium-sized
TOTAL SMEs
Source of data: European Commission "SME Performance Review"
Within the SME sector in Serbia, micro segment represent most of registered
businesses in Serbia. However, the share of labor demand and value added is
almost equally distributed between the three segments of SME sector, with
medium size businesses being the strongest segmenting both indicators.
According to EC The European Commission Annual Report on European SMEs,
Serbia has implemented 12 new policy measures addressing seven out of the ten
policy areas under the Small Business Act.
European Commission generally follows ten policy areas in order to understand
dynamics in the SME sector of Serbia. As giving in the cobweb diagram bellow,
Serbia significantly fails to meet EU average in almost all of the observed policy
areas.
28
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
GRAPH 10
Source: European Commission "SBA Fact Sheet 2013, Serbia"
GRAPH 11
Source of data: European Commission, "SBA Fact Sheet 2013, Serbia"
Serbian society seems to be more entrepreneurial compared to EU average, with
higher percent of adults intending to start a business within three years, as
recorded in 2009, and seem to be happier with media attention for the sector.
However, Serbian society provides relatively lower status to successful
entrepreneurship. Furthermore, SME sector in Serbia feels relatively more
burden of Government regulation compared to EU average.
29
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
According to European Commission European Commission Annual Report on EU
SMEs 2012/2013, “Serbian SMEs grew steadily in number during the period
2008 – 2011. Nonetheless, the job losses by Serbian SMEs were more
pronounced than for SMEs in the European Union. In 2010, Serbian SME value
added was over 18% lower compared to 2008. The following year Serbian SMEs
experienced an increase of 8.6% in value added. The reasons behind Serbian
SME performance can be attributed to the volatile business environment
characterised by an unstable financial sector - the credit market for SMEs is
heavily subsidised - and low demand. Although the pre-election expansive fiscal
and industrial policies breathed some life into the economy, key sectors still
performed poorly, with the exception of the information and communication
service sectors that demonstrated a large increase of +10% since 2011, which
continued into 2012.”
GRAPH 12
Source of data: European Commission, "SBA Fact Sheet 2013, Serbia"
SMEs in Serbia seem to be significantly lagging behind EU average when
innovations are in question, either in terms of product/process or marketing and
organizational innovations. Furthermore, we can assume that due to relatively
uneasy access to financing and relatively inadequate capital levels, Serbian SMEs
tend to relay more on “in-house” innovations. The figures clearly show the gaps
of Serbian SMEs and should be used as a guideline for policy makers in Serbia
how to help the SME sector.
When compared in on-line sales and purchasing, Serbian SMEs sector does not
significantly lag behind EU average.
Serbian SME`s lack significantly in participation in EU funded research, if
compared with EU average in 2010.8
It can be concluded from the available data that Serbia SMEs are lagging behind
EU average in terms of offering green products and benefiting from public
support measures targeting green products and services.
8
For more details, please see annex
30
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
SWOT ANALYSIS OF THE FDI / SME SECTORS IN THE DANUBE SERBIA REGION
SME / FDI sectors in the Danube region are not significantly different to the rest
of the country.
Strengths
Infrastructure integration with the EU as a key market - rail, road, river
corridors
The existence and use of agreements on free trade - primarily the CEFTA
agreement, depending on the industry contracts with Russia and Turkey
in focus
Cost competitive workforce in relation to the quality that provides
The availability of quality manpower in the areas of services, which can
provide great added value
Weaknesses
The current state of the overall infrastructure
River and railway infrastructure is in a very poor condition
Infrastructure incoherence - river infrastructure, regulation of river
banks, connections to other means of transport into intermodal transport,
which potential is far below optimal exploitation
Weak institutional system
Inconsistencies in the implementation of legislation at both the national,
regional and local governments level
Efforts of local governments are not sufficient to take advantage of law to
the level of competence that are received during the process of
decentralization
Business environment - regulation and support enterprises, taxation and
bureaucracy, tax incentives are not particularly prone to the development
of SMEs
High administrative barriers
The inefficiency of the judiciary - the slowness in the implementation (law
enforcement) process
The problems of collecting overdue debts (receivables), as a result of
ineffective judiciary system (legal protection)
The unpredictability of the market
Height of bank interest rates, rigid banking business policies
Unregulated assets and property relations
Political (in) stability
Threats
The lack of coordination of representatives of different institutions
31
TERRITORIAL MARKETING STRATEGY
DANUBE SERBIA REGION
The adoption of shortsighted decisions at the local level that are
inconsistent with the marketing plan. Some decisions at the city level
(local governments) to significantly alter the business
environment. Example - irresponsibly rising of local taxes or
compensation to companies, with the aim of filling the budget gap in
short-term. In the long run, such decisions have completely opposite
effects.
The limited capacity of marketing plan implementation at local level
Discontinuity in the context of public policy or political environment
Incompetence in the process realization of accreditation, standardization
and implementation of projects
The tendency of representatives of the state administration and local selfgovernment to follow legal procedures, which failure may harm
reputation of institutions
The inefficiency of the administration
Stopping the process of EU integration and adverse consequences for the
economy and society as a whole
Abandonment of organized national approach in attracting large foreign
investment at a time when the entire world is fighting for them
Abandoning the reform of state administration, which includes the
elimination of complicated bureaucratic procedures and the fight against
corruption at any level
Opportunities
Improving all types of infrastructure
Agriculture can be a chance if the government seriously addresses the
implementation, i.e. application of the law on food safety, and in a broader
sense of quality infrastructure (development of an institutionalized
system for quality control)
The existing network of institutions - chamber system, regional and local
development agencies, associations and similar
The possibility of further development of intermodal transport
The strategic position of the region Danube Serbia
The process of European integration, with the idea to use it in order to
accept a higher value system and make government administration more
efficient
A different approach to SME&FDI marketing - both institutional and at the
level of the relevant associations, established pursuant to the examples of
international associations
Development of franchising in order to secure faster transfer of
knowledge and technology onto domestic SMEs
Danube Strategy as the basis for project preparation and withdrawal of
funds from European and regional funds
Lowering the jurisdiction of the local government - the full
implementation of all the laws in the process of decentralization to local
government, particularly law on public property
Political stability
Implementation of planned reforms to improve the business environment
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TERRITORIAL MARKETING STRATEGY
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Vast spaces and resources privatized and debt-ridden to the state and the
public sector can be freed after the completion of privatization,
i.e. insolvency proceedings. Example - unused office space in major cities
in the context of the development of ICT (incubators, start-up's etc.)
CONCLUSIONS
GCI Global Competitiveness Index rightly puts Serbia in a very bad place –
ranked 95 out of 144 listed countries for the period 2012/2013.
While there are areas in which Serbia ahead of the countries in the region, an
area in which it is necessary to make a serious effort, in which Serbia is at the
very bottom of the list are legal certainty, the overall quality of infrastructure,
training of the labor force, availability of new technology.
In the context of SMEs and innovation and ICT, the poor economic situation
influenced the attitude of SMEs towards innovation. It is evident that the
communication between SMEs and research institutions is rather poor.
Furthermore it is noted that Serbian SMEs have relatively low capacity to access
EU funds, which has resulted in relatively low level of innovations, which, as a
consequence, resulted in low presence of Serbian SMEs in innovation intensive
sectors of economy. The majority of SMEs is characterized by indifference to
innovations. Partly this might be a rational choice of SMEs themselves, because
in times of crisis their focus is on investments in those tasks and activities that
provide instant effects. They do not have the financial capacity for long-term
planning and investment, and especially not for innovation.
ICT industry, without any tradition, but with strong scientific and educational
centers, includes 2,500 companies and recorded more than 15,000 jobs in 2011.
Although the majority represents micro businesses (under 10 employees), with a
growth rate of 10% per annum, it is part of the Serbian economy with the
greatest potential and stable growth.
Bearing in mind that each year more than 5,000 students at different levels begin
studies directed towards information technology, and that the industry itself is
already a net exporter - there is great potential in further promoting Serbia as a
destination suitable for outsourcing, which is a global trend in which Serbia must
find its place.
Some of the success stories are companies on the global market are Nordeus
Belgrade, Novi Sad HINTTECH.
Organization of SME in clusters or business associations is at a very low
level. The main reason for this is the lack of motivation among SMEs themselves.
The entire SME sector in average when one looks, has a fear of losing competitive
advantage on domestic market and is afraid of sharing their own work and
experience among similar companies. From the perspective of the average
companies in Serbia, the association also represents a fairly risky business,
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TERRITORIAL MARKETING STRATEGY
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because in the event of a dispute there is no adequate legal support. Litigations
are too long and complex, and require significant financial costs that the average
company cannot sustain.
All this affects negatively on the relationship between international associations,
companies and individuals themselves, which is at a relatively low level,
providing long-term negative impact on the perception of Serbian Danube region
and the whole country as an investment destination. Taxes that SME sector pays
should be re-invested through the national program of support to promotion and
sales of their products. One possibility can be to support organizing and joining
professional associations and their links with international associations, which
would contribute to the realization and strengthening business relationships in
order to create favourable business and learning environment.
Territorial marketing is not just branding, but also sale of products and
services. Therefore, in this segment is very hard to come up with a precise
answer. The SME sector in Serbia has a very low capacity, a step down
compared to developed countries. Data show that 300,000 registered businesses
(enterprises and entrepreneurs) only 500 are big companies. Even 90% of those
500 in the developed countries would belong to the category of small and
medium enterprises.
Examples of good practice (successful investment and generally successful
companies) should be promoted, and on the other side of a territorial marketing
strategy integrated into the company's plans.
Successful investments can easily influence the formation of brand
perception. For example, large multinational companies can engage in the supply
chain a large number of SMEs and thus promote the region as a destination for
investment. Such activities, through a vertical chain of energy production in a
very short time give excellent results. On the other hand similar channels (the
multinationals) open up a whole new space for SMEs – manufacturing of private
label for known buyer. Used in this field of business it can be a multiple of
domicile SME – apart from secure sale, it is possible to integrate into larger and
stronger market, supply chains, transfer of new technologies and for new
products etc.
Current reputation of Serbia and Danube Serbian region is contradictory.
On the one hand, it becomes stronger, because investment community feels the
concentration of power through consolidation and enlargement of ruling parties
on the political scene, which provides them with optimistic outlook in terms of
predictability and political stability. On the other hand, the economic situation is
difficult, and implemented reforms do not produce the expected results in terms
of a significant improvement of the business climate, and companies over the
years are facing falling business activity as a result of the fall in aggregate
demand.
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3.4. ENVIRONMENT
Protection and improvement of working and living environment, rational and
ecologically acceptable exploitation of resources, preservation of non-renewable
natural resources, improvement of environment protection systems, reduction of
pollution (air, water, soil, wastes, noise, etc.) and pressure on environment as a
whole represent the priorities of the Strategy of Sustainable Development of
Serbia. The strategy has eight parts from which part five are dedicated to the
environmental protection issue and to the sustainability of natural resources in
the Republic of Serbia together with the impact of economical development on
the environment.
Economic potential of the environment sector in Serbia is increasingly
recognized both by domestic and foreign investors. Investments into clean
technologies, energy efficiency, development of new and ecologically acceptable
and innovative products and investments in recycle plants for products that after
use become special wastes will enable increased employment, business
competitiveness and improved quality of life of the citizens.
Green economy and investments into environment can become one of the
strategic directions for the development of the Danube Serbia region economy in
future. It is a big opportunity for new employment and drawing of financial
resources from pre accession funds of the EU with the aim to build the
sustainable system of environment protection.
The environmental sector is highly complex, being comprised of a diverse set of
activities. These activities range from segments such as carbon emissions
reductions, waste management and natural resources, with high influence on
economic development and investment trends. Within each domain of the
environmental sector, there are sub-sectors.
The environmental protection domain includes protection of ambient air and
climate, water protection, treatment, supply and conservation, waste
management, remediation, protection of biodiversity and landscape, noise
abatement, and other environmental protection segments. I
The resource management domain is divided into management of natural
resources, management of energy resources, and other environmental resource
management activities.
In addition, there are some segments existing across both domains. These
include environmental education and training, environmental policy and
legislation, environmental research and development, eco-innovation,
environmental health and safety, environmental communications and public
awareness, and other environmental segments.
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Environmental development is local, but at the same time it has important
regional dimension and influence. Therefore, environment becomes one of the
strategic directions for the development of the Danube region economy in future,
where Danube Serbia has an important role in implementation of environmental
priorities.
SWOT ANALYSIS OF THE SECTOR OF ENVIRONMENT IN DANUBE SERBIA
Strengths
Environmental protection recognized among national priorities;
Presence of sound EU policy in environmental protection actions;
Increased awareness of the need for development of the environment
sector;
Actual reform and strategic planning processes in environment sector;
Human resources - a stable size of the total population and its educational
structure;
Improved water quality in the Danube flow through Serbia;
Reserved quality of the environment in areas that are not industrial
develop;
Preserved and good valued status of protected areas and nature
resources;
International importance of the protected nature and of the planned areas
for protection;
Nature resources, particularly in protected areas;
High level of biodiversity;
Diversified natural resources
Weaknesses
Strong differences in regional and local development;
Lack of planning and projects approach to the sustainable use of natural
resources;
A low share of GDP invested in environment protection;
Low level of citizens participation;
Excessive pollution of the water, air and soil;
Inadequate waste management practice;
Lack of incentive measures to reduce pollution.
Opportunities
Further development and strengthening of institutions for the increased
responsibility in the sector of environment;
Integration in the EU;
Utilization of EU funds;
Cooperation with the Danube region countries;
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TERRITORIAL MARKETING STRATEGY
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Introducing EU standards and norms to provide quality of the
environment;
Establishing a system of sustainable nature protection management in
order to improve the current situation;
Multifunctional protected areas of nature and culture heritage, whose
resources support the public interest in science, education and culture
and at the same time provide the basis for sustainable development;
Introducing and acceptance the concept of cleaner production;
Increasing energy efficiency and rational use of nature resources;
Inter-regional and cross-border cooperation and implementation of joint
projects through partnerships and European funds;
Joint environment investment of the Danube countries.
Threats
Industry with obsolete technology and its influence as the big polluters;
Increased unemployment, poverty and slower economic growth;
Unstable economic situation;
Lagging behind the region due to unresolved legal, strategic and planning
issues;
Vulnerability of water resources from pollution;
Uneven spatial distribution of the population and its strong concentration
in regional centres;
Insufficient protection, conservation and development of nature;
Insufficient presentations and undeveloped interpretation of nature
heritage;
Possible lack of stakeholders willing to implement environment legal
reforms;
Possible lack of institutional support for acquisition of latest
environmental technologies;
Insufficient public information and insufficient public awareness;
Lack of investments for environment;
Starting industrial production with obsolete technologies.
For economic potentials in Serbia, as well as for affirmation of environmental
protection and sustainable development of Danube Serbia region, it is important
to reach quality parameters of the environment concerning its resources and
potentials: maintaining and improving the water quality of the Danube;
improvement of the air quality; the possibility of funding the projects from preaccession EU funds for the establishment of integrated air quality monitoring in
all municipalities of the Danube Serbia region, particularly in the area of
industrial zones, energy facilities, shipyards and harbours; conditionally
favourable environmental quality in most urban and industrial part of the
region; quality of the environment in the nature protected areas; increasing
environmental awareness of citizens; active CSOs in the field of environment; the
possibility of establishing an integrated management of ecological status of the
Danube to achieve higher degree of cooperation of all Danube Serbia
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communities in the implementation of national and international legislation,
conventions, strategies and plans.
Identification of environmental objectives for Danube Serbia region is based on
general and operational strategy priorities.
The general priorities of environmental development in the Danube Serbia
region are: monitoring and managing the impacts on the environment;
implementing the measures for the protection and improvement of the
environment, in particular for the prevention of water pollution (from industry,
households and agriculture), soil, air, noise impacts (industrial plants, ports and
harbors), collection and disposal of solid municipal and industrial wastes;
prevention against accidents and pollution by hazardous substances; providing
conditions for environmentally sustainable socio-economic development
through the rational use of land, energy, water and resources implementing
proposed measures for environmental protection and nature conservation.
According the general priorities of environmental development in the Danube
Serbia region, the operational environmental priorities are:
Achieving a "good ecological potential" of the Danube Serbia region;
Limiting and controlling impact of the activities without conflict with
Danube environmental protection;
Reducing emissions of harmful substances into the air from industry,
energy, heating system and transport;
Development of plant systems for primary and secondary treatment of
wastewater;
Implementation of the Waste Management Strategy (2010-2019);
Reducing emissions of noise from ports, harbors, industrial facilities
and traffic;
Reducing the use of agro technical treatment which adversely affect
the environment;
Increasing investment for environmental protection, through
investment funds;
Improving information and environmental protection education for
the population;
Increasing a public participation in decision making about a quality of
life and environment.
In addition, identification of objectives of nature values for Danube Serbia region
are based on general and operational priorities.
The general priorities of nature protection are: protection and development of
nature values, biological diversity, beauty and diversity of landscapes, objects
and phenomena of geological heritage at national, regional and local level;
implementing a measures to protect nature values, based on adopted
international regulations by the Republic of Serbia relating to the nature
protection; sustainable use of nature resources with minimizing adverse
impacts.
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According the general priorities of nature protection in the Danube Serbia
region, the operational nature values protection priorities are:
Activation a potential of nature heritage as a development factor;
Protection and development of nature reserve areas;
Preservation and valorization of the diversity of Danube wild life: flora
and fauna and its increase by reintroduction of missing indigenous
species of animals and plants;
Identification and protection of ecological important areas or habitats,
wild flora and fauna through the program Natura 2000;
Conservation of nature protected areas in conditions to protect and
present its phenomenon;
Integrally preserving the authenticity of nature heritage and its
environment;
Presentation and interpretation of nature heritage, creating the
conditions for the regional and international integration of Danube
nature heritage identity.
CONCLUSIONS
The environment is an under-pinning element of all human activities. As such it
is taken into account in many sectors, either voluntarily or, when that is not the
case, through legislative requirements, strategies and investments.
The general priorities of environmental development in the Danube Serbia refer
to rational and ecologically acceptable exploitation of resources, preservation of
non-renewable natural resources, development of environment protection
systems, reduction of pollution (air, water, soil, wastes, noise, etc.), protection
and valorization of the biodiversity of Danube wild life.
Also, the natural heritage of the Danube Serbia region is of wider - European
importance. The region contains a large share of remaining great wilderness
areas, as well as rich nature heritage sites. The Danube Serbia region with
Danube river and its tributaries are vital to the wildlife ecosystems and indeed
provide ecological connections that are essential for environmental health.
The environmental situation in the Danube Serbia region enjoys a relatively
clean natural environment, however certain environmental issues, such as
pollution of river by industry sites are areas of concern. Air pollution is relatively
low, but with regard to pollution of waterways, environmental protection and
collaboration in region is a priority.
The priorities of environmental development of the Danube Serbia region have
to be considered with other policy fields and sectors and require an integrated
approach. For example: improving transport infrastructure has a positive impact
on the business environment, on the attractiveness of cities and regions or on the
mobility of citizens, but it can also have negative impacts on landscapes,
biodiversity, quality of air, soil and water. All these matters require integrated
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approach, viewing all relevant sectors together, with imperative to find the most
sustainable solution as joint investment for the future.
3.5. CULTURE
Serbia has been accelerating its EU accession as a full-fledged member, thus
there are many priorities to consider as well as to support the implementation of
foreseen EU standards, policies and programmes. The focus is certainly on the
fields where the existing assets and resources gain comparative advantages. Yet,
as battling with negative international image and poor perception for many
years, mostly as consequences of the conflicts and transitional (political)
instabilities, the supporting fields that shift perceptions, and more essential
facilitate the new (positive) image, adding value on living and working ambience
are untapped potential.
Culture represents one of those untapped potential which with coordinated and
strategic approach successfully response on polycentric urban and sustainable
rural development, encourage entrepreneurship, especially in the frame of
creative industries, allows meaningful work on communication corridors and
enhance marketing of destinations and regions, including the Danube region in
Serbia.
Therefore, taking cultural context into account and including recognition of
diverse local values, conditions, resources, skills and limitations should lead to
transformative and sustainable change in the Danube Serbia region too. A
people-centred and place-based approach integrated into development
programmes and strategies which contribute to empowerment of communities,
enabling them to take ownership of the development processes, contribute to
growth of the creative economy in general and the creative and cultural
industries in particular, increase the production of new creative ideas or
technologies, and the creation of a non-monetized social benefits are crucial
according to the opinion of stakeholders interviewed in the frame of the project
on “Socio-economic development of the Danube region in Serbia” run by the
Danube Competence Center and Horwath HTL.
The findings of our researches guided us toward the perspective that centers on
the interplay between following FCS (Framework for Cultural Statistics) 9
categories:
A. Cultural and Natural Heritage;
B. Performance and Celebration;
F. Design and Creative Services.
Those categories are important because since they encompass the broader ways
of understanding of the role and potential of culture in the Danube Serbia region
and revealing how identities and lifestyles are intertwined with the production,
distribution and consumption of cultural goods and services.
9
Please refer to the analysis of Cultural context presented in Annex
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The contribution of creative services/creative industries to the Serbian
economy and job creation can be seen as an inevitable part of priorities in
process of future Danube Serbia region development and sustainable growth. In
Serbia in 2009, the direct economic impact (primary and secondary economic
impact) as well as induced economic impact of the creative industries were 7.2%
of total employment and 9.89% of total Gross Value Added (GVA). Depending on
sub-sectors in the creative industries, the average growth rate of employment
was between 1% to 6.4%, while the GVA growth rate was between 0.2% and
10.8%.
Table 5: Preliminary results on economic impacts of Creative industries in
Serbia, in ERU, 2009
Total
economic
Primary
Secondary
Economic indicator
impact of creative
impact
impact
industries
Turnover
2.1 billion
7.72 billion 9.82 billion (16.8%)
Formal employment full time 76.035
73.724
149.759 (7.28%)
Contribution to Gross Value
2.94%
6.95%
9.89%
Added (GVA), real price 2002
Induced economic impact of creative industries
-Private consumption
634 million 385 million 1.019 million
-Public consumption
172 million 248 million 420 million
-Tax revenues
22.4 million 138.9 million 161.3 million
Source: Mikić, H. (2011) Expert report on economic analysis of creative sector in Serbia, SFBC-Creative Economy Group,
Belgrade.
In 2009, the creative industries (core, partially and independent) accounted for
9.8 billion EUR of turnover, while the average annual turnover growth between
2004 and 2009 was 25%. The average productivity of the creative industries was
12 000 EUR and it was 35% higher than the economy average. Each job in the
core creative industries created 1 job in the partially and independent creative
industries, while 1 job in the supporting sectors is created per each 5 jobs in the
creative industries. Each enterprise in the creative industries engaged about 70100 freelancers, which is about 570,500 freelance contracts per year. The export
potential of the creative industries is also evident: the emerging export
industries-export of creative services was 2.5 times higher than the export of
creative goods, with a value of 493 million USD (4.5% of total export in 2008).
Cultural and natural heritage is one of the basic elements of a community
identity; it provides people with the cultural memories, knowledge and skills
vital for the forging of sustainable relationships with natural resources and
ecosystems. Safeguarding that heritage at the same times means safeguarding
the differences that are common to specific communities. Those cultural
differences are very often and easily promoted through tourism activities when
larger markets are allowed to learn about specific heritage, enjoy in it but also
gain competitive advantages at the markets. In the immediate surroundings of
the Danube, there are 1,186 material remains and sites that are confirmed as or
are presumed to be cultural attraction of general importance. So far, only a
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relatively small amount of cultural heritage has been registered, about 43% (140
categorized and 374 registered immovable cultural goods), having in mind that
the categorized cultural goods are only 11%. In line with this, the part of
registered goods, that is – goods that have previous protection is 58%.
The degree of endangerment and damage of cultural heritage and other material
goods on the whole area has not been systematically researched so far.
Maintenance of cultural goods is a particular problem, due to lack of
management planning which would specify the conditions of their use and
presentation, so after the research and conservation work, the cultural goods are
usually quickly forgotten and neglected. In addition, the cultural institutions in
charge of maintenance of heritage sites have no specialized marketing and PR
services, animators and professional cultural managers nor legislative support to
involve for example the public-private partnership when it comes to valorization
and marketing of heritage sites. That is another reason why the broader public
remains insufficiently aware of the values and significance of their heritage.
Performance and celebration – the organization of events and festivals can
meet a number of objectives such as offset seasonal imbalance, improving
international perception and image (as it is in the case of EXIT Festival, for
instance), and attracting visitors segments to whom the territories other
attractions do not appeal – for example open air music events at Roman
heritages sites such as Viminacium and Felix Romuliana. It is clear that such
events can reflect the spirit and sense of particular place within Danube Serbia.
SWOT ANALYSIS OF THE SECTOR OF CULTURE IN DANUBE SERBIA
Strengths
•
•
•
•
Number of cultural heritage sites interlinked with large number of natural
heritage sites with diversified natural endowments;
Solid contemporary production, knowledge and awareness of cultural
sector potentials and strength;
Building up on multiculturalism, common heritage and dynamic cultural
exchange;
Urban zones with extensive influencing zones.
Weaknesses
•
•
No integration of culture aspect into preparation and adoption of the
(territorial) strategies. Understanding of the concept of territorial
development via cultural / creative industries should be visible on several
levels: from local government, professional cultural associations, cultural
creators to key stakeholders for development and promotion of
territories;
Cultural identity of the Danube region is not (yet) clearly designed
therefore the actions are fragmented, disperse and usually linked to a
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•
•
•
very few assets mostly to different forms of cultural tradition and ethno
products, while the other assets are not utilized;
Very few or no investments at all, in the systematic production of
contemporary (local) cultural / creative products nor in the promotion
and export of the existing cultural products;
Unfavorable demographic and educational conditions in rural areas;
Lack of intra-, inter- and cross-sectorial cooperation in planning,
protection, management and promotion of cultural assets along the
Danube in Serbia.
Opportunities
•
•
•
•
•
Interest for sustainable management methods to be developed
and implemented both in terms of preservation and exploitation of the
cultural and natural heritage;
Possibility to interlink natural habitats and wildlife corridors with
cultural heritage of the Danube region;
Promotion of sustainable development of the Danube in Serbia with
special regard to the people-centred and place-oriented cultural
approach;
Base a touristic offers on complementary cultural and natural heritage;
Potential in the joint development of multi-locations / thematic routes.
Threats
•
•
•
•
•
•
•
•
•
Culture is treated in a static way while the concept of "industry" linked to
culture is almost totally rejected;
Lack of institutional and infrastructural framework and cross-sectorial
policy instruments;
Lack of effective information sharing, mutual learning, dialogue and
integrated approaches of risk management and management modules;
Administrative boundaries act as barriers for potential collaborations;
Prioritization of monocentric initiatives due to the lack of political
commitment to development of effective cooperation between cities and
regions;
Inadequate or non-sustainable use of landscape as part of cultural and
natural heritage;
Lack of sustainable offers mix and developed financial scheme able to
support those mix offers;
Initiatives not expanding development impulses to their surrounding
influencing zones – competition instead of innovation and co-operation;
Lack of respective and strict legislation able to put the sustainability
principle into practice and carry out systematic reforms.
CONCLUSIONS
In the past years, numerous projects on national, regional and local level have
been focused on the culture and cultural-historic heritage in Danube Serbia
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region, covering two development aspects. First is infrastructural development
and include various “hard” elements (in the field of construction, reconstruction
and building). Second are activities, focused on the market valorization of the
cultural heritage, through tourism. In addition, several development and
investment teasers along the Danube Serbia region have been developed under
the auspices of Ministry of Tourism, Trade and Communication (former Ministry
of Economy and Regional Development), but rare or only some of them have
been implemented. The reasons for that should be searched in absence of almost
any co-ordination and co-operation between various decision-making levels and
inter-sectorial approach. The inter-ministerial co-operation on the level of the
Serbian government has never been institutionalized. On many occasions, that
has been underlined, especially regarding the links between culture, education
and science. Not less important is the common ties between tourism and culture,
also between the cultural industries and the economic sector, have not yet been
sufficiently recognized. Therefore, the necessity of creation of the interministerial working groups and even inter-ministerial funds is of utmost
importance.
Likewise, the existing cultural potential along the Danube in Serbia, is a lacking
(political) recognition and understanding as well as professional determination
to be able to organize and contribute to sustainable development of products
based on cultural assets and creative industries. in this region. .
To achieve a higher degree of territorial integration culture should be a
catalyzator for development and practical implementation of policy frameworks,
tools and services and specific pilot investments. Yet, cultural products need to
be extracted from the environment of the cultural sector and matched with the
industry sector. Secondly, the product will not be recognized nationwide or even
internationally if not properly marketed. Openness to the private sector’s views
and opinions, knowledge and experience, both in product and market
development strategies and initiatives, also a practical assistance and support to
public-private partnership need to be continuously ensured.
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IV KEY ASSETS AND VALUES OF THE IDENTIFIED SECTORS
4.1. AGRICULTURE AND RURAL DEVELOPMENT
Looking at the national level, Serbia is a net exporter of agricultural and food
products, and agriculture sector contributes significantly to the balancing of the
foreign-trade balance. The share of agriculture in total value of exports of the
Serbian economy is about 22% and it is higher than the share of agricultural
imports in some years, in some years even triple. The total volume of trade in
agricultural and food products has been constantly increasing. However, in
terms of the value of the trade balance in relation to the volume of available
agricultural land, Serbia is placed at the bottom of the list among European
countries with positive trade balance of agricultural and food sector. This group
of countries also includes Poland, Lithuania and Bulgaria.
The cause of such low value of balance in relation to the available land area is in
the structure of export, where raw materials, grains (21% of exports) and fruit
(17 %) are highly represented. The share of commodities that include expensive
products and produce of higher processing phase is much smaller, which
practically positioned Serbian agriculture as a supplier of raw materials.
Agriculture and Rural Development key values/assets identified through
analysis and during the work with the focus group are the following:
Corn export and export of grains, fruits and nuts, sugar, fats and oils,
beverages
Richness of cultural heritage and biodiversity
Potential for direct marketing and creation of value added products in
farm households
Quality of fresh fruits
26 potential Local Action Groups (LAGs), including 605 rural
stakeholders, and covering 15% of the national territory
Diversification of rural economy - rural tourism
High potential and natural resources for creating energy from biomass
Soya and sunflower oils, as major export products of Serbia to EU
Accessibility of the raw materials produced in the country;
Significant areas of High natural value fields.
Value propositions for the purpose of territorial marketing
Agriculture and Rural Development key value propositions:
Danube Serbia Region has arable land with favorable climate
Fresh fruits and vegetables,
o Processed fruit– made in the Danube Serbia region
From waste to taste – using bioenergy from biomass for food production
Multicultural and multinational Local Action Groups of Danube Serbia
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4.2. TRANSPORT
Key assets of transport industry of the Danube region in Serbia are geographic
position and natural resources, but also existing infrastructure, means of
transportation and educated workforce.
Big potential in means of geographic position is that Danube region in Serbia is
point of connection of Danube Macro-region and Adriatic-Ionian Macro-region
and its hinterland. Those two Macro-regions provide solid basis for future
programs in the framework of new EU transport policy.
The key assets, ongoing efforts and value propositions are presented separately:
Road
Road freight transport is most developed and well distributed in average. Main
routes are with good connections, linking Danube region with other areas. The
only part of it where road infrastructure is lacking is east or south-east of
Danube-Serbia where fast links to main Corridors are missing.
Main road routes of Danube region in Serbia are Corridor X with its branches and
Route 4, crossing the region and linking it with neighboring areas.
Total value of state road network in Serbia, without local roads, is estimated at
4,2 billion euro. Total value of maintenance cost is estimated at 40 million euro
every year. According to relations of density and surface covered by
municipalities belonging Danube region, value of road network without local
roads is between one third and one half of total value.
Construction works are undergoing on Corridor X (Projects East and South –
from city of Niš to Bulgarian and Macedonian border, as well as Belgrade bypass.
Furthermore works are undergoing at construction of Route 4 on the south side
from Belgrade to Montenegro.
At some parts of main routes and on the local level, particular efforts have been
made in the renewal and development of the transportation infrastructure in
areas affected by floods in the late spring of 2014.
To complete the bypass around Belgrade cca 95 million euro are needed, and for
the construction of Route 4 from Belgrade to Požega cca 400 million euro.
Rail
Rail transport has the same main routes as road network, but condition of
infrastructure and density are far below the desired level. Total needs of
maintenance in past are covered with only 11 % on average, resulting with
maximum speed below 60 km/h on 50 % of rail network.
Basic characteristic of rail transport is still closed market without real
possibilities for running operations beside „Serbian railways“.
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Urgent investments in railway infrastructure of Serbia are estimated at around
one billion Euros, and for bringing the railway infrastructure on the level of
satisfactory standards in the future, some 4 billion Euros are needed.
In addition to investing in the tracks, the necessary investments are in signage
and rail transport management systems, station buildings, equipment for cargo
handling and equipment for intermodal transport.
Although a few years ago, the company "Serbia-kombi", was founded as a
subsidiary of Serbian Railways, activities aimed establishing “Ro-La”
technologies in Serbia is practically non-existent and the company has no
employees. Investing in Ro-La technology besides economic, also brings
significant environmental benefits, where trucks over Serbia could transiting by
rail rather than by road.
Inland waterways
As already mentioned, priority projects on a system of inland waterways in
Serbia are:
Arrangement of the Danube waterway upstream from Belgrade
Removing sunken remains of the German fleet from World War II in Prahovo
Removing unexploded bombs from NATO bombing
Construction of Zezelj Bridge in Novi Sad
Reconstruction of the locks on the Danube River (Djerdap)
In addition to Corridor VII (Danube river), important parts of network are river
Sava, River Tisza and fairway system DTD. To bring the inland waterways to
satisfactory level for safe and reliable navigation, total investments are estimated
at 2 billion euro in next 15 to 20 years, but maintenance has to be on regular
basis, including dredging, cleaning and signaling of waterways.
River information System is implemented fully at the river of Danube, ensuring
by the tracking and positioning of vessels, traffic safety, directing and managing
of traffic, optimizing the use of waterways, enabling quick response in urgent
situations, distribution of information and compliance with the International
Border Management Strategy and other existing RIS in the region.
Inland waterways are biggest potential of development together with intermodal
transportation where is a lot of unused resources. The main constraint is limited
quantity of goods and old fleet which mostly is not fulfills standards for
navigation in EU.
There is another possible area of development connected with IWW transport –
modernization of shipyards aiming to ensure maintenance of vessels but not
only for the ship’s hulls, but also for upgrades and modern equipment of vessels.
Air
Air transport is fastest growing sector of transportation. Number of passengers
is almost doubled in last decade. Main assets of these mode of transport are
airport „Nikola Tesla“- Belgrade, followed by national airline company „Air
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Serbia“ managed by „Etihad“ group and several small agriculture and military
airports that can be converted for civil purposes.
The airport “Nikola Tesla” will reach its full capacity if current trends continue,
before planned period. In the near future it will be necessary to invest in
construction of additional runway and increasing the number of floors of the
airport building.
On the other hand, the airport is accessible only by road public transport - there
is no connection by rail or light-rail to the city of Belgrade. The airport is 18 km
far from city Centre and in the period of rush-hour it takes almost one hour to
reach the city centre by bus.
Intermodal transport
At the moment, there are no activities on construction of intermodal transport
infrastructure, except few strategic projects on enabling the intermodal
transport. In last 10 years there were 5 projects particularly dedicated to
intermodal transport development, funded by EU programmes and some
governments of west Europe countries.
The only operational development exists at the level of procurement of private
vehicles for the transport of containers by road, but on very low level.
For construction of Intermodal Centre in Batajnica, near Belgrade, investment
needed is 15,5 million euro. Other investments in intermodal infrastructure in
Danube region in Serbia were not considered in short term, because of lack of
quantity of goods and undeveloped IWW and rail transport.
Possible small investments in intermodal equipment and processes could be
interesting at river ports locations - Novi Sad, Belgrade and Pancevo, where
Ports of Belgrade and Pancevo are private owned.
It was already mentioned that development of Ro-La technology (Trucks on
Wagons) brings cheaper but also environmental friendly way of transport of
goods. This can become important and valuable asset, but only if neighboring
countries develop the similar compatible system enabling loading / unloading of
trucks from dedicated railway wagons.
Model of PPP (public-private-partnership) in development of intermodal
transport could be the solution for construction and operating of intermodal
centers or new technologies implementation. This is because the start and
sustainable work of intermodal transport needs critical minimal quantity of
goods and intermodal units with acceptable prices of operations.
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4.3. SME DEVELOPMENT
Human Resources
If we want the economy to evolve into a knowledge economy, the current
education system needs to be significantly improved, so that the acquired
technical knowledge and "talent" is enriched with entrepreneurial skills. To do
this, we need to have entrepreneurial education in technical colleges. The
current technical "talent" should promote and enhance the entrepreneurial skills
and knowledge. The only successful examples are those who have been
indoctrinated with the idea that you are trying to ultimate success, and that
failure is just one step along the way.
The Global Competitiveness Index in this regard clearly shows that Serbia is
relatively highly ranked on the number of enrolled students, but it lags in the
segment of applied knowledge.
Therefore, though we rank relatively high, the education system does not
provide adequate personnel, as also confirmed by a survey carried out by foreign
investors in Serbia. With the necessary improvements, i.e. additional training or
specialization in specific areas of interest markets can provide the required level.
At the same time, in addition to educational profiles that require correction,
there is the question of motivation of students for training in specific
occupations. An example is the textile industry, where despite the innovation in
teaching in secondary vocational education, there is no required number of
employees for fulfilling capacity.
Despite the perceived and presented the problem, according to the actual AHK /
DIHK poll in Serbia, 95% of German investors would re-invest in Serbia.
The basis for such an opinion in the field of human resources is recognized and
acknowledged their quality, which in the affirmative environment (company)
with appropriate training provided in the short term would raise the required
level and standards applicable to the parent companies.
If such a quality workforce is coupled with a high degree of loyalty, the result is a
fairly low staff turnover, as measured by all sectors of the economy, which is an
important factor in the operations of every company.
Free Trade Agreements
Free trade agreements with other countries are a very important factor in
making investment decisions. Specifically, primarily CEFTA agreement, which
relates to the regional market, but also the agreements with Russia and Turkey,
as well as with the EU, are a very important basis which defines the position of
Serbia as the most desirable destination for investment projects. In addition to
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having largely open access to all these markets, viewed in the context of
relatively low labor costs, it allows foreign investors significant price
competitiveness compared to other countries in the region.
Infrastructure and intermodal transport
For some industries, the possibility of intermodal transports and related lower
costs of transport are the essential question of the business model.
Although it was noted that the entire infrastructure in the Danube through
Serbia is far below the level of infrastructure in the river valleys in developed
countries (industrialized regions in the EU), the existence of even the current
level is sufficient for providing a perspective in relation to other parts of the
country. Specifically, it is clear that the process of EU convergence will increase
availability of funds for infrastructure development, which directly depend on
the ability of a candidate country to create infrastructure projects and
successfully implement them. Setting such a goal as one of the priorities infrastructure development along the Danube and intermodal transport in each
of its segments, will allow attention to be focused on concrete and visible results,
which have a direct impact on the economy. An example is a recent initiative of
Austria on the exploitation of river transport along the Danube as an alternative
route for the delivery of LPG (liquid petrol gas) from the port of Costanzia to
Vienna, which would then partially mitigate the dependence of the Danubian
countries on the availability of any pipeline.
As in the context of carrier promotion and development should focus attention
on the free zone along the Danube, which are highly specialized. Free zones
should position themselves in the value chain through the contact carrier and
attempt to reach investors. A good example is municipality Apatin or company
Knauf in Batajnica - a factor that influenced the decision on the location is
primarily the possibility of favorable costs of transport.
Municipalities in the Danube have great advantages because it allows large cost
savings by combining the various possibilities of intermodal transport. Large
companies investors are willing for this reason to invest in a river dock!
Finally, it is necessary to invest in continuous and organized training of local
stakeholders (empowerment through decentralization), to develop the local
communities, which primarily rely on their own capacity to develop and
implement ideas, initiatives, projects…
Value propositions for the purpose of territorial marketing
There is a great need for internal marketing, so that all involved stakeholders
at all levels understand the necessity of coordinating their activities in the
context of improving the business environment in Serbia Danube region (and
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TERRITORIAL MARKETING STRATEGY
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beyond), and then a systematic approach in promoting the region as the best
location for a potential investment.
In the target market, i.e. among potential investors, there are several courses of
action that are considered to be complementary to existing channels (the
efforts of existing agencies and programs – SIEPA, VIP, Chamber of Commerce,
regional and local agencies for development):
Direct marketing, custom made – the most efficient way is through direct
(organic marketing), with mediation of existing companies (investors) in
Serbia or through their group companies or through a network of
suppliers, directly in communication with potential investors!
Cooperation with associations abroad, through personalized
communications for specific projects
Through twinning projects to initiate Cities and Local Governments, in
cooperation with other cities in Europe and all over the world.
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4.4. ENVIRONMENT
The environment sector in Danube Serbia region is important for community
cooperation with joint interest in identification and capitalizing the Danube river
resources and its heritage potential as a factor for reaching better quality of
living in the region.
The first coordinate, to strengthen cooperation in the area of resources and
heritage is aimed not only at implementing actions of research, conservation,
protection, restoration and capitalization of the resources and heritage, but also
in implementing of inter-connect environment objectives.
From this perspective, it is necessary to integrate the environment values and
dimension in the framework of other policies and sectors that contribute to the
sustainable development.
The assets and values of the Environment sector of the Danube area in Serbia
characterize a relatively clean natural environment and diverse nature values of
nature heritage.
According to the national legislation of the environmental and nature protection,
international conventions and programs, and other documents, the nature values
of the Danube areas in Serbia acquired the status of protected natural areas, as
protected areas and protected species of wild flora and fauna, and or status of
areas and species of international importance for nature conservation: 17
protected areas, 2 national parks, 5 special nature reserve, 7 natural monuments
included an additional 18 natural monuments (mostly individual trees or groups
of trees). The total area of the Danube protected areas in Serbia is 1,072 km2, of
which 77.4 km2 includes a watercourse of the Danube. Protected areas are on
the length of 230 km of the Danube banks. In addition, rich and diverse wild flora
and fauna of Danube Serbia region, geological sites representing a various
paleontological sites and phenomena of fluvial land forms and karsts are a real
treasure, not only for the Danube Serbia, but for the Danube Europe as well.
Along the Danube there are many diverse, colourful and attractive landscapes
mirroring in the water of the Danube. This is the most attractive individual
landscape element and highlights the Danube going smoothly through Serbia.
Environment sector key values/assets identified through analysis and by focus
group are as follows:
Relatively clean natural environment,
Improved water quality in the Danube flow through Serbia,
Richness of natural heritage and biodiversity,
Significant areas of high nature value,
Increased awareness of the need for environment development,
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Potential for funding and support in environment priorities,
High potential of alternative energy sources.
Value propositions for the the purpose of territorial marketing
Environment protection, risk prevention, management, valorisation and
protection of the natural heritage through sustainable activities are essential
value propositions of the Danube Serbia region.
The protection of the water resources and air quality are not only essential
requirements to ensure the environment protection, but they are also very
important value propositions to improve life quality and to increase the
attractiveness of the rural areas. The improvement and expansion of the water
distribution, sewage and wastewater cleaning networks, as well as of various
other traditional activities may contribute to the joint efforts to ensure the
sustainable growth of the Danube Serbia region communities. The construction
of an appropriate rural infrastructure essentially contributes to the development
of business activities in the rural area, to the increase in the share of services,
and in the number of jobs.
Other propositions refer to the rehabilitation and expansion of the
environment infrastructure for all urban settlements; industrial pollution
prevention and control; industrial risk prevention; decrease in the surface and
underground water pollution with nitrates from farming sources in all
vulnerable areas; integrated waste management implementation; closure of
landfills which are not in line with the current standards and the setting up of
ecologic landfills to cater for all settlements; reduction in the soil and coastal
area erosion; protecting and capitalizing on the natural heritage; maintenance of
the current protected areas and their promotion for scientific and tourist
purposes.
The national and international value of the nature heritage of Danube Serbia
region (nature areas protection, nature habitats observation, valorisation of the
nature resources potential, traditions, health, security and safety of citizens and
tourists) refer to the community and public enterprises cooperation in
integration processes for common Danube sustainable development.
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4.5. CULTURE
Detailed list of tangible cultural assets is presented in the previous chapter. The
cultural asset mapping was done in close collaboration and involvement of
relevant stakeholders from public and civil sector from the Danube Serbia
region. The activities included the concentrated workshop and in-depth
interviews with selected key players.
The mapped assets include individuals, local – regional – national associations
and institutions, existing practices, heritage sites, traditions, environmental
qualities, business and physical infrastructure.
The list of individuals and institutions co-operating with us in various phases is
available in appendix.
The cultural resources that are available in the Danube Serbia region are in
essence comprised of the human and cultural capital whose services provide a
range of benefits over time.
Essential, according to stakeholders involved in the process is the human capital
e.g. the artists and other creative workers who live and work in the area. Equally
important is seen the infrastructure that support cultural activities and cultural
and natural heritage of the region.
The resources could be classified in five groups as follows:
1. Creative workforce
2. Cultural institutions
Museums, galleries, libraries, archives, cultural centres, etc.
Theatres, cinemas, performing arts venues
3. Heritage buildings and sites
Number of buildings/sites accessible/not accessible to public
Significant heritage clusters
Number and type of visitors to publicly accessible buildings/sites
Condition of heritage buildings/sites: proportions in good condition, needing
restoration, etc.
4. Intangible cultural heritage
Traditional creative skills
Rituals, fairs, festivals
Traditional knowledge of indigenous inhabitants:
– stories, images, music, etc.
– land management
– biological resources and their use
5. Creative businesses
Small and medium-sized enterprises (SMEs) in the creative sector
Domestic businesses producing cultural goods and services, e.g. publishing
houses
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Yet, a critical success factors include providing participatory approach of target
groups and new pathways for development. Ability to deliver economic, social
and cultural benefits of the Danube Serbia region emerge both from resources
listed above as well as the principles defined by stakeholders as follows:
Creation of a system of core and optional indicators for sustainable development
and utilization of cultural resources
People – centered development where the expressive and emotive dimensions is
highly ranked as generator of authenticity and in-site experience
Pro-active communities approach where networks and topological flows of people,
ideas, resources and products are encouraged and supported
Advancing professional skills and local capacities
Sustainable development of knowledge and awareness of its own potentials and
strength, and building trusts and promoting community cohesion and well-being
In-depth mapping of territory specific cultural assets and potentials.
Value propositions for the the purpose of territorial marketing
The stakeholders proposed the concept of terrafilia for the Danube Serbia
region, which combines people's attachment to a particular space that encourages
action and development.
This starts from the premise of active control over knowledge generation by
communities, which pursue conversations around assets that could be used or
built upon, together with evidence of the strengths and capacities of the
community. Collaborative and consultative activities (involving local citizens,
municipal officials, private, public and civil sector representatives) are needed to
makes these goods and capacities visible, and to determine their volume as well
as their vulnerability. They are no longer just statistics or beneficiaries, but
individuals and/or groups whose rich cultural and social lives define them far
more than their narrow economic roles.
Another benefit is in creating opportunities to generate a community debate on
the value and purpose of culture for development.
Culture with its products and services might be a catalytic force within local and
regional economies, not so much as a discrete sector but as a form of “glue” that
binds together existing cultural, service, transport, tourism and supply
industries. Its depend on individuals, groups but also intermediary people for
their success and sustainability, therefore the adequate „opinion makers“ in local
communities and „shakers – leaders“ should be involved from the very begging
of any process.
Equally necessary is the ability to get people to work together across the
bandwidth of different cultural sector streams and form durable associations
and collective interests in the process.
The following initiatives and programmes were highlighted as some examples
reflecting on above proposed concept:
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Roman Emperors Route // Cultural Routes in the Middle and Lower Danube//
Danube Wine Route
Fortresses on the Danube project // with emphasis on programme Revitalization of
Golubac Fortress, as an example of good practice
Dunav fest
Cinema City concept, and the Danube Festivals Network project
EDEN - European Destinations of Excellence
Memory Based Living History concept
The CULTEMA project – Cultural Value for Sustainable Territorial Governance and
Marketing
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V UNDERSTANDING TERRITORIAL MARKETING STRATEGY
Global economic crisis and recession heavily influenced the competition to
become fierce among the regions, competing for investments, knowledge and
people, with the aim to restore sustainable growth. The level of integration in the
world economy is increasing and all the regions and places are affected with
changes in the regional and even economies of distant countries. In addition,
rapid technological advances unleash the most potent changes in the way that
people work, live, travel and communicate10. As a result, global competition
combined with improvements in communication, transportation and scarcity in
available finance, significantly complicate and intensify the scope and nature of
the competition among countries, regions and cities (places in general).
Places are more and more often perceived as products, which need to have their
identities and values and those are to be well designed and marketed. Places
which are lagging behind in this global race, are in the risk of stagnation and
decline.
In that respect, some of the answers to this global pressure that places provide
can be following:
1. Attracting investments and businesses – chambers of commerce and economic
development agencies / offices offer a variety of inducements (tax reductions,
subventions, etc.) to hunt down new and expand existing business possibilities;
2. Attracting tourists – this is the activity of paramount importance, since the tourists
are very important "sellers" of the destination, especially in the era of social
networks. Perception of a place can be dramatically changed with a well planned
and delivered experiences to tourists and visitors. This is why a separate Strategic
and Operational Tourism Marketing Plan for Danube Serbia is developed together
with this Territorial Marketing Strategy;
3. Preventing existing businesses from exiting in search of lower-cost labor or taxes or
higher inducements;
4. Financing construction of expensive infrastructure projects and attractions that can
drive additional businesses and tourists to the region;
5. Intensifying communication and image making – airing positive stories and
advertisements about the destination and preventing negative stories, which
describe troubles affecting the place.
In general terms, a “marketing strategy” is the particular vision or expression of
strategic direction that serves to underpin a firm or an organization’s efforts to
maintain and expand market share.
10
Marketing Places, Kotler P., Haider D., Rein I.; The Free Press, New York, 1993
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In the economic development context, it is usually applied to the notion of
external communications, advertising and promotion focused on increasing a
community or region’s “market share” of new investment. However, these basic
understandings do not adequately address the significant variation in theory and
approach that characterize a range of significantly different tools that all fall
under the “marketing strategy” label.
It is obvious that places need a comprehensive, problem solving approach, that
will provide a solid framework for building a reputation of a place and its
competitive identity. This framework is provided with strategic planning and
Territorial Marketing Strategy for the Danube Serbia region.
The Danube is a name that is globally recognized. In addition, the wider Danube
macro-region is being perceived as a source for a sustainable growth of the
European economy. On the other hand, Danube Serbia does not have visibility as
the region, nor there is a conceptual framework at the national level that would
provide instructions for a proper positioning of the region as a place that is to
become a global hub for investments, trade, jobs, education and living.
In the previous sections current status and trends, key strengths, assets and
values in the identified 5 sectors (agriculture, transport, environment, SME
development and culture) of the Danube Serbia region were analyzed. This will
serve as a basis for further elaboration of strategic alternatives.
Speaking in general, but having in mind the nature and the scope of future
territorial marketing efforts for the Danube Serbia region, marketing strategies
can be focused in one of three possible directions:
1. Cost leadership strategy (defined as a “broad” strategy) – building market share by
creating the lowest cost option in the marketplace. In economic development terms,
this approach emphasizes attraction factors such as low taxation, low land costs, low
regulatory hurdles, etc.
2. Differentiation Strategy (defined as a “broad” strategy) – building market share by
de-emphasizing cost factors, and instead suggesting that potential customers /
investors cannot access what they need from other sources or in other jurisdictions.
In economic development terms, this approach emphasizes unique or near-unique
resources and assets (access to required raw materials, for example) within a
community that will dictate an investor’s location decision in a global context.
3. Segmentation Strategy (defined as a “narrow” strategy) – building market share by
recognizing that the value proposition is neither lowest cost nor most unique, this
approach emphasizes the targeting of specialized industry niches, and works
through the development and maintenance of relationships, specialized knowledge
and customized support structures.
In the case of Danube Serbia marketing efforts, the latter approach is most
appropriate from a marketing strategy perspective. The Danube Serbia region is
not the lowest cost area seeking investments in the target sectors, but have
certain distinctive advantages that can be used to attract investments. Similarly,
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while the Danube Serbia region has assets to anchor investments and improve
overall climate in the context of the "sense of a place", it is not sufficiently
differentiated from a range of other places / regions in the nearest proximity to
suggest that businesses and people must locate in the region. Segmentation
suggests a "narrow" and targeted focus, which should provide effectiveness and
tangible and practical results.
In essence, a segmentation approach aligns with the opportunities identification
process across the identified sectors that are outlined in this report. While all
investments, businesses and people are welcome in the Danube Serbia region,
economic development perspective indicates a set of target products / areas that
should be well positioned to support and attract new investments and iduce
overall economic growth. To pursue these opportunities, Danube Serbia must
intensively focus its efforts on these segmented targets, creating relationships,
expertise, capacity, networks, support structures, academic linkages and a range
of other specialized segments – serving instruments and programs.
Each of the identified sectors should be addressed through a separate, but
similar streams of activity, having in mind three pillars:
Linking local assets in the sector to support marketing efforts – assets of the target
sectors were presented in the previous chapter, but key players are still to be
gathered in the advisory structures that should direct and support efforts on an
ongoing basis;
Building and communicating specialized knowledge of each of the sectors – Danube
Serbia must develop specialized marketing materials speaking to needs and
opportunities within each of the key target sectors, and make these available
through dedicated (possibly standalone) aspects of its web presence, with summary
materials in print form for supporting direct contact in the market;
Relationship building within the segment – to underline the direct interest and
connection to the segment, Danube Serbia must develop direct links and contacts to
the industry in its own space and in its own events, and maintain that contact over
time.
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PROPOSED VISION OF THE DANUBE SERBIA REGION
Danube Serbia is an internationally recognized region, known for its quality
products, dynamic and prosperous environment that fosters creativity,
knowledge and sound business development; it creates welfare for its
communities through the mechanisms of sustainable growth. With its
diverse, vibrant , safe and connected communities, Danube Serbia has it all –
rich national and cultural diversity of its people, unique areas of natural
heritage and biodiversity and strong outlook for a sustainable economic
growth. Truly European – it is Europe in a nutshell.
PROPOSED MARKET POSITIONING OF THE DANUBE SERBIA REGION
Danube Serbia is positioned as a prosperous European region on the Danube – a
global trading region, utilizing its favorable geo-strategic position as a transport
hub of the South-East Europe, offering quality products, services and
experiences.
With the unique combination of resources – water / river, protected natural
areas, biodiversity, cultural heritage and tradition, fertile lands, blend of urban
and rural areas, infrastructure and public service, it is the region with an outlook
of a stable and sustainable economic growth, which opens its gates and provides
a chance to everyone – buyers, tourists, prospective investors, entrepreneurs business developers, workers, students, retirees and other entities seeking safe
and prosperous environment.
Considering previously said, two positioning statements emerged that can be
used in further marketing efforts:
Danube Serbia – Where the Danube meets the Balkans (in accordance with
proposed positioning for tourism marketing / synergies can be achieved)
Danube Serbia – Reflecting Danube, Connecting Europe
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VI STRATEGIC MARKETING GOALS
6.1. TO CREATE AWARENESS OF THE DANUBE SERBIA REGION AND ITS
POTENTIALS
1.
Develop the Danube Serbia umbrella brand
1.1.
In the process of building the marketing system of the Danube Serbia region,
starting point will be an effort to operationalize proposed strategy for branding of
the region. This will create unique umbrella brand, with recognizable visual identity
and set of instructions how to use the brand in the most effective way – it is the first
activity in the operationalization of the territorial marketing strategy.
Branding of the Danube Serbia region should start immediately after defining
precise and thorough operational marketing plan.
Special focus should be on image-making for various target audiences – through the
measures of internal and external marketing – this should be previously elaborated
within operational marketing plan.
1.2.
1.3.
2.
Develop (interactive) online communication platform
2.1.
Since the Internet is the place for all target audiences to discover the Danube Serbia
region, it is THE primary source of information, advice, transactions and exchange of
experiences. All other means of communication should direct interested parties to
the appropriate Internet page – depending on the target audience.
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2.2.
Special attention should be paid to pages created by Internet users themselves,
especially those that, in the meantime, can become influental in the virtual world,
when decisions about doing business, investing, travelling, learning, working, or
living are commented. Appropriate approach to opinion makers should be taken to
win them as advocates for the Danube Serbia region.
3.
Communicate emotional benefits of the region (unique selling
propositions - USPs)
3.1.
Using the chosen unique elements, that define the overall nature and distinctiveness
of the region in all communication channels and instruments towards the relevant
markets should generate positive emotional reactions with target audiences. This is
being done with usual image-building activities (to be described within
communication and distribution strategy).
6.2. TO ENSURE THE QUALITY IN THE MIX OF OFFERED PRODUCTS AND
SERVICES
1.
Develop recognizable quality labels for products / service providers
1.1.
1.2.
Introduction of quality labeling should encourage standardization and
improvements in quality of services delivered. In addition, this will enable
differentiation among existing service providers (entity offering authentic service or
product should definitely be clearly differentiated from ordinary resellers). For this
to happen, it is important to set quality criteria for each of the segment that
appropriate label is to be applied within.
Some of the potential quality labels could be – for products that satisfy criteria:
produced in Danube Serbia (or Danube Serbia – the best of the Danube), authentic/
traditional food, place/ village with the most beautiful scenery, wine cellar with
authentic wines, etc. Each label should clearly communicate the message - should
be understandable to everyone. The promise standing behind the label must not be
betrayed under any circumstances - control of entities bearing quality labels has to
be strict and defined standards have to be fully respected.
2.
Increase skills of the workforce in target sectors
2.1.
As it is the case in every sector / industry, knowledge, skills and capabilities of the
workforce in sectors targeted with this strategy are essential. This is even more
important considering that marketing of the segments actually depend on direct
communication / relationship between a producer / service provider and a
customer. In that respect, constant professional education and training should be
performed, to maintain the level of services delivered and to use existing human
capital in the Danube Serbia region as a strategic advantage comparing to
competitors.
In this respect, cooperation with relevant schools / universities / institutes is a key
for increasing the quality of products and services and is a must for all target sectors.
This should be in special focus of the future marketing management of the region –
to provide connections and cooperation of the sectors with relevant education
2.2.
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TERRITORIAL MARKETING STRATEGY
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providers, both for maintaining the level of quality and as a means of keeping the
capable workforce in the sector / region.
3.
Encourage development of product / marketing alliances in the
region
3.1.
Today's consumers are looking for a quality products / services that will satisfy their
needs, but also require certain standards in public service. In that respect,
prospective development of the sectors targeted with this strategy need to bear in
mind this simple rule and to adapt to the reality if they seek for a market success. In
addition, this is the way to achieve satisfying level of competitiveness of the overall
Danube Serbia region as well as sustainable economic growth.
The best way to deliver quality products / services is joining forces through product
clubs and clusters that will work on quality standards, quality assurance, quality
labeling and market research in order to be in line with relevant market trends and
requirements. In addition, competitiveness clubs and marketing alliances for joint
efforts in increasing competitiveness and marketing the Danube Serbia region can
be a strong driver of sustainable growth, but require strong leadership.
3.2.
6.3. TO FOCUS ON MARKETS / SEGMENTS WITH THE HIGHEST POTENTIAL
1.
Target segments as a priority / focus on prospective new businesses
and investors
1.1.
It is important to determine precise market segments that will be targeted - how
much of which segment will be in marketing focus should underline strategic
directions of the development of the region. Current model, according to “give me
what you can” principle is not sustainable in the medium run, and will ultimately
lead to confusion in marketing efforts and among the identified segments. One of
the requirements of territorial marketing of the Danube Serbia region was to put
emphasis on the prospective new businesses and investors, that will bring new
technology, know-how and access to foreign markets in order to reach the vision of
the Danube Serbia as "a global trading region".
A professional, coordinated approach to attract new businesses and investors is
needed, recognizing achievements of the investment promotion agencies (SIEPA and
VIP), but including entities that should work as enablers of competitive and healthy
business environment (such as Serbian Chamber of Commerce, Regional
Development Agencies and local economic development offices).
1.2.
2.
Professional marketing approach to specific geo markets
2.1.
Contemporary electronic and other marketing tools, in combination with careful
people – to – people contacts, provide efficient approach to target geo markets and
to target audiences, fulfilling the ultimate goal - bringing the target segment to the
region – to buy products, visit, invest, develop business, work, or provide support to
further sustainable economic development of the Danube Serbia region.
Focused marketing activities at selected source markets, in their biggest cities /
regions, should provide aiming at groups that should have the greatest interest for
the Danube Serbia region.
2.2.
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TERRITORIAL MARKETING STRATEGY
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2.3.
Starting from the current conditions at the source markets (considering buyers of
products from the region, prospective travellers, prospective investors), the most
important step for focused geo marketing effort should be a systematic approach
toward selected foreign markets (including regional markets!), for which, based on
secondary market research, targeted online marketing performance is introduced.
This effort follows raising awareness / image building activities and is a purposeful,
direct communication with selected audiences.
3.
Support mechanisms
innovation clusters
3.1.
Online tools for sales and customer management need to be introduced – ecommerce tools, as well as B2B (business to business) and B2C (business to
customer) tools should encourage and stimulate marketing experts to use them as
often as conventional marketing channels.
Customer – care / investor – care mechanisms should be developed; both using
online support and appropriate on-site (personal) support when needed – this is
particularly important in cases of infrastructure development (public-private
partnerships) and big industries, generating jobs and prosperity. It is extremely
powerful marketing tool, extending safety of the business environment and building
trust among various stakeholders in complicated multi-phased ventures. Examples
of good practice from SIEPA and VIP can serve as a guideline for this (see Investment
promotion chapter for further information).
3.2.
to
buyers,
investors,
new
businesses,
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VII PRODUCT STRATEGY
Considering that the "narrow" segmentation strategy is proposed for the
purpose of this territorial marketing strategy, and that one of the key strategic
marketing goals is to ensure the quality in the mix of products and services
offered by the Danube Serbia region, it is important to ensure that the right
portfolio of products and services ultimately get the Danube Serbia brand –
quality label.
All the key challenges, assets and values, as well as relevant products and
intervention areas, for the identified five sectors under this strategy are
described in previous chapters; however, it is important to create a platform for
cooperation of the key stakeholders in each of the identified sectors to establish
rules and procedures for assigning the Danube Serbia brand to specific products,
services and actions / events to take place in the future.
For the existing base of products, services and actions that can be used to build
competitive identity of the Danube Serbia region in the future, following strategy
is proposed:
1. To make a selection of top products, services and actions / events with high-level of
quality and high recognizability that can be marketed immediately to identified
target audiences – this action should be coordinated with tourism marketing efforts;
2. To make a selection of top opportunities to be further developed, which will serve
as a base for future growth and upon which the future competitive identity and
reputation of the Danube Serbia region will be built;
3. To clearly identify overarching / cross-sectoral resources that have to be managed /
improved in order to make the region an attractive place to visit, work, do business,
invest, learn and live (infrastructure, nature protection, accessibility to amenities
and public services, etc., and to select and prioritize measures and responsibilities
for improvement).
Implementation of the tasks mentioned above will be done with operational
product marketing plans. As a part of this strategy, it is important to recommend
establishment of product clubs / clusters in order to facilitate elaboration and
implementation of operational product marketing plans.
PRODUCT CLUBS / CLUSTERS
Product clubs / clusters are recommended to be established with aim to provide
support for development of existing and new products, services, activities and
markets for outputs of the Danube Serbia region. This action is most needed in
agricultural sector, but can be applied to other sectors, especially small and
medium enterprises. In addition, environmental and cultural clusters can bring
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TERRITORIAL MARKETING STRATEGY
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significant value to the overall perception of the Danube Serbia region and
strengthen the efforts in building its sustainable competitive identity.
In further stages, product clubs could be transformed in other organizational
forms (cooperatives or clusters), according favourable legal framework – it has
been assumed that this will be possible after adjusting legal framework
according to rural development needs, examples of good practice and European
Union regulations. A good example in agricultural sector can be Italy, where
cooperatives are very successful and supply the market with agricultural and
foodstuff products.
One of the most important tasks of a product club is improvement and
standardization of quality, as well as optimization of quantity of local /
regional products and services.
Lack of standard quality and (often) low quantities of local products come as a
consequence of lack of knowledge and skills, as well as lack of communication
among main actors in supply chain. As it will be shown within the framework of
the branding strategy, coopetition is a main pillar for building successful
territorial umbrella brand. Tasks of product clubs, in cooperation with key
stakeholders and according to the needs of supply chain actors, are following:
•
•
•
•
•
•
•
•
•
To organize trainings and educations for the improvement of conditions
for production and quality of products and services (engagement of
domestic and foreign experts, presentation of the best practice examples
within the country and abroad, study tours etc.); To provide quality assurance mechanisms – for example, in agricultural
production it would be essential to ensure free-of charge sanitary and
veterinary controls of final products before they are placed on the
market;
Encourage the establishment of entrepreneurs associations, professional
associations (for example chefs), as well as local action groups (LAGs territorial) in order to strengthen intra-regional cooperation; Organize meetings of value chain actors – panel discussions or informal
meetings of producers, tourism sector, regional development agencies,
chambers of commerce in order to synchronize the efforts;
Develop synergy and coordination in marketing efforts among various
producers and service providers – for example, food production, tourism,
events, old handicrafts and other service providers through improvement
of the existing and creation of new events and introduction of old
handicrafts in tourism offer;
Connect local products with health and other motives for visit;
Initiate distribution of local products in different packages, carrying the
common Danube Serbia quality label;
Create and advocate proposals for improvement of legal regulations
according to the needs of a specific club / cluster (taxes, subsidies,
inspection controls, procurements etc.);
Initiate improvement of the region's overall offer through cross-sectoral
teams.
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It would be the most logical choice for Serbian Chamber of Commerce to become
a facilitator of establishment of product clubs for the Danube Serbia region,
considering its network of affiliates and internal structure that is suitable to
support this kind of action. In that respect, Serbian Chamber of Commerce will
play the role of an agent of transformation process, increasing competitiveness
of the region through better structuring of businesses, imposing standards of
quality and coordinated marketing efforts. Each club / cluster will have its
manager, who will be, in the same time, in charge of the territorial brand
attribution to specific products and services of the club / cluster.
Establishment of the clubs / clusters can be supported through technical
assistance programs and initiatives, while their long-term sustainability should
be ensured through collection of membership fees, providing specific services to
members and income gained from better commercialization of the club's
products / services. Development initiatives should be financed through
separate projects and programs.
DANUBE SERBIA AS AN INVESTMENT DESTINATION
Economic development of the Danube Serbia region, based on export oriented
investments represent a credible strategic choice, especially in times of scarcity
in financial resources avaliable to public sector and cautious investors.
Danube Serbia as an investment destination, can be perceived as a product that
is sold at the relevant investors' markets. It can be noted that Danube Serbia is
not recognized as an investment destination, so it does not have any reputation
in that respect, apart of that Serbia as a country has. However, although there
were significant movements in order to make a stronger position for Serbia
towards international investors markets, there is still a long way to shape this
product and make it more appealing to target markets.
Depending on the phase of shaping the investment destination, a following
relationship in comparing perception (visibility) and credibility of an investment
destination can be presented:
Visibility (perception)
Credibility
High
Low
Low
Undiscovered
Unknown
High
Unparalleled
Undesirable
Source: Thomas J. Kosnik, "Corporate Positioning: How to Assess and Build a Company's Reputation", working paper,
Harvard Business School, 1988
It is clear that Danube Serbia should avoid a scenario to be an investment
destination with low credibility and high visibility, and, as such, undesirable.
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Extensive research has shown that Serbia's starting position is with low
credibility and low visibility. The two are interconnected.
Low credibility is a consequence of negative perception of international business
community, which is reflected in related corruption perception index, which is
still rather low and places Serbia among countries with widespread corruption.
In addition, Serbia has experienced a significant setback in terms of overall
ranking - has worsened its relative rank position from being 77th to 91st among
the compared economies, according to 2015 "Doing Business Report"11.
We have found the evidence of low visibility of Serbia among the investors by
comparing the dynamics of total levels of FDIs. Not only that Serbia shares
challenges that Europe faces as a whole, but is also increasingly failing to attract
FDIs. Europe falls behind both OECD countries and total world in attracting FDIs,
while Serbia falls behind its regional peers, as it can be clearly visible on Graphs
4 and 512. Furthermore, relatively high concentration of FDI inflow into two
sectors (financial services and manufacturing) also indicates relatively low
visibility for Serbia as multi-opportunities investment destination, as shown in
the table 1.
The only possible strategic choice is to move from unknown to
undiscovered investment destination, based on increasing the credibility of
Danube Serbia. Once the credibility is established, image building efforts
should be intensified, using proposed means of communication, to move
further Danube Serbia as an investment destination to the unparalleled
position.
Main prereqisites for tackling the above mentioned obstacles, with the aim to
navigate Serbia as an investment destination from unknown to unparalleled is to
successfully implement significant reforms in public sector. In that respect, a
serious commitment to prevention, active prosecution and accountable judiciary
is needed. One of the actions within the framework of this strategy is to
contribute to improving the business climate and better position regarding
perception of corruption within target investment communities by bringing
relevant questions to the agenda and building preassure to address them.
Looking at the other components of the investment environment, the region can
become favorable location for expanding / starting a business, utilizing a good
geo-strategic position, providing accessibility to a relatively favorable workforce,
tax policies and available incentives.
DANUBE SERBIA QUALITY PROGRAMME
Following strategic marketing goals, it is important to introduce one of the
product related tactics within the framework of the strategy – i.e. Danube Serbia
quality programme.
11
12
For more information, please see Annex of the Strategy
See Section II – Economic Development and Investment Trends
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It was already mentioned that reaching and maintaining quality in mix of
product, services and activities is of paramount importance for building the
competitive identity of the Danube Serbia region and that focus on quality will
provide a good reputation of the region in the long run.
Looking at the analysis of the key identified sectors, it is clear there are various
quality gaps and variations in delivery of products, services and actions in the
Danube Serbia region. Since quality improvements require long – term
perspective, quick actions need to be done instantly. In that context, Danube
Serbia should show which entities have alredy reached satisfactory level of
quality in their performance and, therefore, build its strenghth and competence
upon the examples of good practice.
The main idea is to introduce quality label that will bear Danube Serbia brand
(Danube Serbia – the best of the Danube). This process presupposes structuring
and implementing a quality label scheme, which is based on the international
standards, and will be specially designed for each of the sectors separately.
Quality labels should be addressed at all components of respective sectors value
chains.
The ultimate goal of quality labeling is to bring more transparency,
competitiveness, trust in a product, new marketing opportunities and more
customer protection.
Under the scope of quality programme a network of centres / professionals is
proposed to be established inside existing associations / organizations – Serbian
Chamber of Commerce and a network of regional chambers of commerce;
regional development agencies and local economic development offices
(depending on region / muinicipality). Since the quality of products / services
and activities is proclaimed as the ultimate goal of territorial marketing,
technical assistance in that respect would be very improtant in order to setup all
prerequisites for achieving quality in targeted sectors – this is particularly
important in domains of safety standards, technologies applied and long-term
quality assurance.
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VIII STRATEGY OF TARGET GEO MARKETS AND SEGMENTS
8.1. TARGET GEO MARKETS
With the objective of rationalizing the marketing efforts it is necessary to
prioritize source investment markets. According to different variables with
respect to identified prirority sectors – agriculture, transport, SME development,
environment and culture, specific geographical markets have been identified. It
is important to note, though, that a strong coordination with geo marketing
strategy for tourism is needed, since it is more likely that the investments will
come from the source markets from which tourists (visitors) come from
regularly, because they already visited and know the image of the Danube Serbia
region (presuming that the visit produced a strong and positive image).
Beyond simple country targeting, approach to relevant target audiences is
extremely important when planning the promotion and commercialization /
building the reputation of the Danube Serbia region. For example, it is much
easier to gain a good reputation in the geo market from which there is a
company running good business in the Danube Serbia region. Most likely, those
are the markets where SIEPA and VIP have taken considerable investment
promotion efforts. Only by choosing rationally the source markets will the
promotional investment maximize its effectiveness.
Considering the priority sectors (excluding financial services), having in mind
the structure and countries of origin of the foreign direct investments in the
period from 2005 – 2013 (see chapter "Global and national trends of FDI")
following countries have been identified as relevant foreign markets for the
purpose of this strategy:
Neighboring countries including all countries of Former Yugoslavia
Austria
Germany
The Netherlands
Italy
Switzerland
USA
For the purpose of Territorial Marketing Strategy, considering Danube Serbia
international opportunities, Serbian diaspora provides a broad opportunity for
opening doors and leveraging existing connections, combined with current
business community efforts. At the investment level, it appears that Danube
Serbia is "disconnected" from the people who originate from the region and
Serbia in general. More than 2,6 million people of Serbian diaspora live in
following 10 countries (figures are in thousands)13:
"Strategija očuvanja i jačanja odnosa matične države i dijaspore i matične države i Srba u regionu" (Strategy for
preserving and strengthening of the relationships between Serbia and its diaspora and between Serbia and Serbs living in
13
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It is obvious that Serbian diaspora is a huge, but still underutilized economic
potential and that there is a huge space for intensive cooperation. In the context
of geo marketing, relevant representatives of Serbian diaspora can be the
channel for opening doors for the identified opportunities in the relevant sectors.
In general, in order to go one step beyond and establish priorities by cities and
specific geographical areas, all the direct air connections should be considered.
Considering top investor countries, combined with the number of Serbian
citizens living in diaspora, the following markets have been prioritized, although
not completely neglecting the other markets which could have some impact on
the further development of the Danube Serbia region in identified sectors.
A
Domestic market and
neighboring countries /
Former Yugoslavia
EEA and Switzerland
(Germany, Austria,
France, The Netherlands,
Sweden, Italy, UK and
Norway)
Russian Federation
B
C
Peoples Republic of
China
Canada
United States of America
Australia
Middle East (UAE, Qatar,
Azerbaijan)
Other countries
the region) – Ministry of Religion and Diaspora, 2011 – (http://dijaspora.gov.rs/wpcontent/uploads/2012/12/strategija_mvd2011.pdf, accessed on October 15th, 2014)
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A category – key markets for the Danube Serbia region for further enhancement
of its visibility and reputation, out of total marketing budget for promotion and
other activities, up to 80% should be invested in this category (and out of this at
least 60% in priority EU countries).
B category – markets that need to be developed and to which a significant
marketing efforts should be invested in the period of 5 – 10 years. The important
factor is accessibility - within the areas where there are flights connecting these
countries with the Danube Serbia (Belgrade). For the next 3-5 years, out of total
marketing budget up to 15% should be invested into marketing activities at
these markets.
C category – markets for which there are not many activities, they are to be
followed-up and if, in the longer run, one or some of markets show significant
growth, total amount of marketing budget limited to 5%, should be reconsidered
and redistributed. These markets might become important, considering the
number of Serbian diaspora living in these countries (Canada and Australia).
8.2. TARGET SEGMENTS / AUDIENCES OF THE TERRITORIAL MARKETING
STRATEGY
For the purpose of this project, the target segments / audiences include a variety
of stakeholders, since the nature of territorial marketing is to sensitize and
induce their active engagement. All these stakeholders can and should contribute
to building of competitive identity of the Danube Serbia region and its good
regional and international image and reputation.
Residents of the Danube Serbia – raising awareness / building commitment of
residents
In the first line, the most important audience are the residents of the Danube
Serbia region. These include current and prospective residents – families,
retirees. It is important to communicate the message of assets, values and bright
perspective of the Danube Serbia to residents. In that way, they become active
element in "waving the flag" - understanding this region as a place which is
attractive to work, get education, invest, do business and, generally, live. In
essence, when considering international opportunities, Danube Serbia's local
population provides a solid opportunity for opening doors and leveraging
existing connections, which should be used with existing efforts of public sector
(Chamber of Commerce, SIEPA, VIP, etc.). Many of the people still living here
have inextricable connections with their friends and relatives in diaspora, but
lack business orientation and drive to start working – rather, they enjoy benefits
of direct money transfers which go directly to consumption.
Local communities – mobilizing local communities
The outcome of a territorial marketing is a strong "sense of place", sense of
belonging to a prosperous region with a good reputation. Thus, it is of great
importance to mobilize local communities – municipalities, (sub)regions and
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civil society organizations to recognize the opportunity of a joint marketing of
the Danube Serbia region in supporting their businesses, exports and actions, as
well as further sustainable development. They should be involved on continuous
basis through offices for local economic development and regional development
agencies, in cooperation with relevant provincial and national bodies and
associations. In that way, they can receive proper assistance and be active in
building more competitive environment for doing business and improving living
conditions for their people.
Tourists – attracting visitors / tourists
A separate document thoroughly elaborates marketing strategy of the Danube
Serbia as a tourism destination. However, it is important to recognize visitors /
tourists as one of the most important target segments / audiences of territorial
marketing, since understanding of the region and the first step in building its
reputation starts with visits of tourists. They might become prospective
investors, business developers, or can simply repeat their visits to Danube
Serbia. However, they can become active advocates of the region, using word of
mouth as a very powerful and effective marketing communication instrument.
Export markets - consumers of the goods produced in the region
This segment reflects the ability of Danube Serbia to produce goods and services
that other places, people and businesses are willing to buy. In this context, it is of
paramount importance to base the communication efforts to this audience on the
quality and uniqueness of the goods / services that are produced and delivered
by Danube Serbia. If certain places have poor reputations for the quality of their
goods, this will certainly inhibit exports from those places. In that respect, it is
important to communicate and deliver only the goods with a quality seal (label)
that will contribute to the affirmation of the future Danube Serbia brand.
Investors – encouraging small business development
This applies both to current and prospective businesses. It is very important to
find a way to join forces of the public and private sector in strengthening
competitiveness and building credibility of the Danube Serbia region. Existing
small businesess often need help in accessing foreign markets and broadening
their capacities. Small businesses (production, service, retail) provide a variety
of opportunities, especially utilizing "people" connections. In that respect, it is
important to attract and provide technical assistance to interested people
starting (a new) business in the prosperous Danube Serbia, helping them to
shape and communicate their enterpreneurial ventures.
Investors – accessing "local" multinationals
Serbia is increasingly becoming a destination of interests to multinationals Molson Coors, Carlsberg, Pepsico, Rauch, Nestle, Siemens, Gorenje, NCR, IBM,
Microsoft – to name some of them. By operating in Danube Serbia, each of these
companies has an understanding of the positive developing in local business
climate and related success factors that come with locating a business unit or
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division in Danube Serbia. This raises the possibility that they may become allies
or champions in efforts to identify, target and recruit other divisions in their
corporate structures to also locate to Danube Serbia. The "domestic" market of
multinational companies is a logical action area for territorial marketing.
Marketing acitivites should involve building strong relationships with the local
management team of these multinationals, with the intention of outlining the
advantages associated with locating further business units and activities in
Danube Serbia.
Potential partners – utilizing links with Danube Serbia neighboring areas
Links, communication and cooperation of the communities in Danube Serbia
with local communities in neighboring countries has become very strong, with a
fairly good perspective. Some of the most important issues affecting overall
competitiveness of the places along the Danube have been resolved in close
cooperation with neighboring communities – joint infrastructure development,
enhancing people to people contacts, cultural exchange, environmental
protection projects, education projects, etc. Cross-border cooperation and
communication should be further enhanced, building a good reputation of
Danube Serbia and the Danube in general.
Sponsors – ensuring further support from EU and bilateral donors
Transformation of the profile and image of the Danube Serbia region has been
significantly influenced with support coming from EU funds and from bilateral
donors. Programs to support infrastructure development, environment
protection, cultural exchange, tourism development, administrative reform,
capacity building and overall socio – economic development will be important
factor of further enhancement of the profile and image of Danube Serbia in the
future as well. In that way, the region and Serbia in general will be integrated in
the overall profile of the EU Danube region and become its important part.
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IX BRANDING STRATEGY
The real challenge of this strategy is the fact that it preceeds definition and
development of a country brand. This is important because usually, the most
basic place recognition is through the identification of country of origin (COO).
Thus, it significantly defines perception of the target audiences about a product
or a service – where the product is designed, where it is made, where it is
assembled, what is perception of delivery of service, etc. – it all have a huge
impact on perception of a place and its people.
On the other hand, regional or local brands are based in one area, and as such are
associations to a territorial brand. Region of origin can particularly become
important as a cue for high added-value products. However, it is important to
bear in mind that associations with a specific region might bring negative
impressions, especially if some previous events that took place in the region
have such a connotation. For example, there is still much to do to improve the
reputation of Serbia in the minds of foreign audiences – this can be done with
affirmation of particular regions as places of exellence in specific fields / sectors.
In addition, the use of regional branding must consider a number of stakeholders
(which have their brands as well) within a region (as they act on their own), but
still influence consumers' perceptions of the region in question. Finally,
consumers cognitively associate a region with a brand, but this does not mean
that the brand cannot be moved anywhere – in this context, regional name does
not define all regional brands, and these don't need to originate from that
particular region (for example, some food products and wines bear names of the
regions / places, but are produced all over the world).
For the purpose of the Danube Serbia Territorial Marketing Strategy, we propose
the following characteristics to be recognized as important:
1. Utilization of the most obvious natural links to the Danube Serbia region – in that
way uniqueness of the place can become essential component of a product / a
service (differentiation);
2. Danube Serbia brand should be overarching – it should encompass all the
proprietary brands within the territory – should become recognizable, common
label for products and services that originate from Danube Serbia (establishing
relevance).
The use of Danube Serbia brand should be directly related to the place of origin;
in that way the indigenous product can be recognized as a quality that originates
from the Danube region within Serbia. Hence, territorial brands often seek legal
protection or recognition in order to distinguish from other similar products
without a specific link to a region / place. This is a relevant course of action for
such products within the Danube Serbia region as well.
However, it is important to bear in mind that when using Danube Serbia as an
umbrella brand, no proprietary brand should be dominant, since there is a
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danger for the proprietary brand to usurp the position of the brand of the
Danube Serbia region. Instead of that, careful co-branding should be
implemented to strengthen the position of the umbrella brand. In that way, a
vast number of products and services can enjoy benefits of having the label. In
that context, territorial brand is most often a result of organic development,
evolution of recognizable products / services over the time. Of course, this can be
a result of a deliberate strategy and determined leadership, but still it is
important to note that the effort needs time to give the results (in the case of
Istria - a region in Croatia - for example, it took almost 20 years of combined
efforts in territorial and tourism branding).
Since the Danube Serbia region is at the very beginning of building of its
reputation and that there is still no clear perception on what would be the
unique picture of the region in the minds of target audiences, the most important
job ahead of the region is to establish the power of the Danube Serbia brand.
The power of a brand is built through 4 main pillars:
THE POWER OF A BRAND
DIFFERENTIATION
RELEVANCE
RESPECT
FAMILIARITY
It is an essence of a
brand, providing yield
to the product/ place
of the supply side;
what is the market
share and sales
performance
of the consumers,
status and image; it is
related to the promise
Internal
understanding of a
brand; it is related to
experiences of the
consumers
STRENGTH
REPUTATION
Adapted according to the model of the Young & Rubicam Group
This means the following:
1. Differentiation – what makes a brand unique, what is the essence of a brand – what
is the margin created?
2. Relevance – what spontaneous associations and wants have already been fulfilled
(existing proprietary brands within the Danube Serbia region), what kind of value
and market share has been created with the elements of differentiation?
3. Respect – what is the possible level of absorption of products / services that
originate from the region, what is the perception of popularity and quality?
4. Familiarity – what is a personal understanding of the brand, what kind of experience
buyers / consumers have, is the communication strategy successful?
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As with all brands, in order to be strong, each territorial brand of the Danube
Serbia region needs a consistent position, a clear identity and a defined
personality. Looking at this requirement from the regional level, it seems
especially important for an effective umbrella territorial brand to understand the
split nature of the territorial and the proprietary brands, and the need for
cohesion between them.
This requires a course of action comprising from following components:
1.
2.
3.
4.
An effective and sensitive brand manager for each of the key categories / sectors;
A willingness amongst rivals to co-operate to maintain the territorial brand;
A common story which offers a collective focus for the individual enterprises and;
Local engagement.
An effective brand manager. The functions of a territorial brand manager are
similar to those as it was the case with particular (proprietary) brand, and focus
particularly on the volume of supply, the quality assurance, protecting the
brand's reputation, general promotion of the product(s) / services and engaging
in research and development. Considering the number of products and services
being delivered in the Danube Serbia region, appropriate number of brand
managers for specific segments are to be appointed, following dynamics and
priorities identified within sectors.
Territorial brand manager must oversee and improve product quality for all
producers in the region. The brand manager has the job of defending the name of
the overarching territorial brand. By doing this it prevents counterfeits from
inundating the market and diluting the value of the brand. The manager may
have a role in the general promotion of the territorial product. In particular, for
origin-based goods maintaining an external awareness of product quality is
important in order to solidify the value of the origin. Finally, as a part of building
the overall credibility of the region, it is important to introduce research and
development function in coordination with academia and relevant institutes – all
producers should share some technical advances in order to ensure the quality
of the overall offer.
Encourage cooperation. It was already mentioned that one of the main
problems in the Danube Serbia region is a lack of cooperation among producers
and service providers in the same sector. Strength of a territorial brand depends
on the willingness of the individual brand owners to link their products to the
umbrella brand, and accept to express the same values to the consumers as other
producers / service providers in the region do. In that respect, Danube Serbia, as
a strong territorial brand will exists only if businesses and other entities
associate their individual products / services / efforts with the quality and the
label of Danube Serbia. The most common way to encourage cooperation is
through clustering and coopetition. For example, this kind of clusters /
cooperatives gave important and visible results in Istria, both in establishing /
building credibility of the region, as well as its visibility and reputation (i.e.
cluster of wine makers). This can be applied to almost every relevant sector and
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TERRITORIAL MARKETING STRATEGY
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field, but require a strong leadership.
Have a story to tell. Reputation of a brand is highly dependent on cohesive
measures to be initiated by a brand manager – balanced inter-business
cooperation is necessary to maintain the Danube Serbia brand's reputation. In
this respect, it is important to collect and communicate a series of stories from
the region, which emphasize the individual brand's integration into the
territorial whole – this is to achieve the evolutionary success of the brand. From
regional and brand histories, texts and symbols can become important markers
for consumers, allowing them to perceive value. As the brand management
encourages a rigorous quality offer and ensures the promotion of the territorial
brand, stories and myths pave the way for specific, integrative rituals related to
the territorial products.
Local engagement. Stakeholders within the territorial brand must create value
for consumers via unique, invariable features stemming from the local context.
In order to create this value, they must work together. Because territorial brands
are inseparable from their place of origin, the individual brand owners are
situated in a social and community context, rather than a merely economic one.
Territorial brands extend the idea of mutual economic dependence, into a form
of mutual social dependence. This action is to be executed through product clubs
/ clusters, previously described as a part of the product strategy of this
territorial marketing strategy.
For the purpose of the Territorial Marketing Strategy, following elements of the
Danube Serbia region brand were proposed:
Primary'
brand'
a+ ributes'
•!Good!geo'
strategic!
posi/ on!
•!True!European!
iden/ ty!
•!Rich!natural!
heritage!and!
biodiversity!
•!Combina/ on!of!
urban!and!rural!
areas!
•!Rich!cultural!
heritage!and!
tradi/ on!
•!Unique!travel!
experiences!
Ra1onal'
benefits'
Emo1onal'
benefits'
•!Danube!Serbia!
as!a!transport!
hub!
“Unique!
combina/ on!of:!
urban!and!rural;!
natural!
landscapes!and!
rich!biodiversity;!
fer/ le!lands!and!
industry!
poten/ als;!
astonishing!
heritage!of!
civiliza/ ons!that!
lived!and!died!in!
the!region,!
combined!with!
rich!tradi/ on!
and!a!way!of!
life,!make!
Danube!Serbia!a!
perfect!place!to!
visit,!invest,!
work,!do!
business,!study!
and!live!in.”!
•!Clear!European!
perspec/ ve!
•!Untapped!
resources!
•!Fer/ le!lands!
•!Competent!
and!credible!
workforce!
•!Sa/ sfactory!
infrastructure!
•!Constantly!
improving!
public!service!
!
!!
Personality'
•!Different!
•!Crea/ ve!!
•!Innova/ ve!
•!Revealing!
•!Mys/ cal!
•!Dynamic!
Values'of'the'
brand'
The'essence'
of'the'brand'
•Uncompro'
mising!quality!
•!Prosperous!
•!Discovering!
•!Involving!
•!Authen/ c!
•!Highly!
valuable!
“Danube!Serbia!!
'!where!the!
Danube!meets!
the!Balkans”!
!
“Danube!Serbia!
–!Reflec/ ng!
Danube,!
Connec/ ng!
Europe”!
Source: Horwath HTL, 2014
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TERRITORIAL MARKETING STRATEGY
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Brand development and branding strateg(ies) for Danube Serbia must become a
separate supporting project, targeting relevant sectors and relevant groups.
However, considering the umbrella brand for Danube Serbia, as well as
components of the brand that are shown above, the following can be concluded:
1. Brand represents an unique collection of experiences;
2. These experiences enable a mix of rational, emotional, social and cultural
advantages and benefits for potential consumers;
3. Consumers choose brands because of emotional values that brands promise.
Following this pattern, territories become brands, having their strongholds in
the economy, communities and heritage.
The key message that should be elaborated in the process of a brand
development need to focus on the Danube as a key ingredient in the connection
of Danube Serbia with relevant markets and target audiences. We strongly
believe that valorization of "the Danube" and its riches, as well as additional
afirmation of Belgrade and Novi Sad as urban centes of Danube Serbia can be a
"quick win" for future branding efforts. From the branding point of view, this can
be observed as a sort of "hub and spoke" model, where the rest of Danube Serbia
utilize well positioned and branded Belgrade and Novi Sad regions (capitals of
culture, transport hubs, SME incubators, university and knowledge centres).
Neither one of the regions along the Danube does not use "the Danube" in its
image positioning, although it represents a striking resource on a global scale.
In addition, the size and importance of the Danube corridor through Serbia can
focus the desired development momentum in all other parts of Serbia to achieve
"spill-over" effects. The Danube in Serbia can be perceived as a nationally
cohesive and globally competitive resource.
In the operational elaboration of the branding strategy for Danube Serbia,
following steps (tasks) are to be carried out:
1.
2.
3.
4.
5.
6.
7.
8.
Elaborate brand brief;
Create a visual identity and logo for Danube Serbia;
Launch the brand strategy;
Create internal "experience planning" process;
Create internal "idea incubator" activities;
Create internal brand recognition programme with approprate quality labelling;
Establish cross – sectoral identity design advisory working group;
Provide appropriate brand messages and tools for communication and distribution
purposes;
9. Start brand partnership programme with committed stakeholders from public and
private sectors;
10. Provide monitoring and evaluation using predefined brand metrics.
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POSITIONING IS ABOUT STORYTELLING
Having in mind the selected segmentation strategy and the proposed positioning
of the Danube Serbia Region - Where the Danube meets Balkans - one of the
essential steps in the implementation would be to further develop and
implement the message strategy by emotionally relevant storyteling developed
through all sectors, aggregate of assets and opportunities.
"His childhood and turbulent adolescence is spent in Europe and he goes through
these areas with full force! But then, something completely different happens.
He meets an unusual beauty, a bit wild, uninhibited and natural – her name is the
Balkans.
He falls in love with her beauty, all of her magical parts, her untouched and
unspoiled nature. He falls in love with her origins and her stories about to whom
she has given shelter – from prehistoric civilizations to Romans and Goths... He falls
in love with the tastes that she offers, the full flavors of fruit, vegetables, meat and
life. Most of all, he falls for the nights spent with her that are full of passion, music
and merriment. Nights that do not end until dawn. Her qualities and her
authenticity.
The Danube is in love with her dark side as well, her challenging and difficult life
story, her stubbornness and unattachable nature. She is untamed and he has never
experienced that before. He tries to outwit and conquer her. He carries heavy
burdens on his shoulders, making coastal towns more developed and important. He
takes her heart with his courage and strength that pierces through the mountains.
Toward the end of his journey through the Balkans, he creates a key, a fascinating
landscape, as if he wishes to lock this story forever in his heart and keep it there
evermore.
This love unites many civilizations, many cultures, many people and their lives…
This love is best explained with only their names.
Dunav+Bal+Kan or Water+Honey+Blood=all that one needs in life."
STORYTELLING IS ABOUT EFFECTIVNESS
Behind this story is a life in quality details. To highlight the most relevant
specifics in different sectors inside the region, our approach is to create the
system of quality labels. That system has to be in line with the positioning and
storyteling. The aim of the system is to spread the message, to keep attention, to
raise interest and desire and to push to action.
It is of utmost importance to create quality labels specifically for different sectors
and in that way transparency is achieved and credibility built.
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EFFECTIVENESS IS ABOUT RELEVANCE
Still, the quality labels would be fully aligned with the umbrella positioning. One
of the possibilities to use the positioning statement, considering target sectors,
can be formulated in a following way:
Umbrella:
Where the Danube meets the Balkans
Culture:
Where the Danube inspires the Balkans
Tourism:
Where the Danube kisses the Balkans
Agriculture: Where the Danube tastes the Balkans
Transport: Where the Danube nudges the Balkans
Environment: Where the Danube enjoys the Balkans
Please note that this is just one of many possible proposals, professional agency
needs to be engaged to conduct all the steps and tasks of the branding strategy.
RELEVANCE IS ABOUT BENEFITS
The time-related benefits resulting from this:
-
-
Short-term: Danube Serbia would show which entities have already reached
satisfactory level of quality in their performance and, therefore, build its strenghth
and competence upon the examples of good practice.
Long-term: The creation of quality labels would give a boost to other entities to
work as to achieving the satisfactory level of quality.
Furthermore, the creation of quality labels brings about rational and emotional
benefits for the Danube Serbia Region:
1. Emotional benefits
- creating, building and developing the sense of belonging
- empowering the sectors and their representatitives in promoting their
services and products
2. Rational benefits
- setting examples of good practice for all sectors
- highlighting the specificities within the region
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X COMMUNICATION AND DISTRIBUTION STRATEGY
Communication strategy that is proposed within the framework of a broader
Territorial Marketing Strategy needs to be adjusted and implemented with the
communication strategy and tools proposed with Destination Marketing Strategy
(Strategic and Operational Tourism Marketing Plan of the Danube Serbia
Region), which is integral part of a set of documents elaborated in correlation
within the framework of SEDDSR programme. Both communication strategies
aim to communicate Danube Serbia region as a prominent and livable place that
is attractive to visit, invest and do business.
The main recommendation that can be made in this respect is to focus the
promotional efforts on the vast population that falls into the target segments /
audiences described in previous section and to attract first-time visitors to the
region.
Apart from the segments that live and work in the Danube Serbia region, broader
reach should be attained to induce initial interest for the region. Once the people
become interested for a particular place / destination, they look for information
on that place, and this they do using the Internet. The web has become the key in
communication and sales of the place – both its tourism and business potentials.
The general strategy for communication should rely basically on the Internet as
the most successful means of spreading the message and selling out the
products. Of course, offline channels must be conveniently used in the next years,
but always as a support to online materials and campaigns implemented.
Major communication strategies for the Danube Serbia region in the following
period should be firstly focused on the brand awareness building through
following strategies:
Start with awareness campaign – to start as soon as possible
awareness campaign on multinational level – using main international
channels, which should be chosen according to the global reach /
defined markets in previous section.
Start brand communication program – create awareness on the new
brand from the start-on, with well-planned actions at multinational
level and using different communication channels.
It is of utmost importance that all media activities are harmonized with each
other in order to reach critical mass across media and reach the interwoven
communication objectives. Television is powerful but expensive way to raise
awareness for the Danube Serbia region. It is not even the most efficient way to
inform travellers and potential investors about the region. However, television
can be a good channel to raise awareness about the region and to communicate a
"sense of place".
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Once awareness is created in the mind of the target audiences, it is important
though, to make it easy for them to find relevant information about the region.
The most logical and powerful way will lead an interested consumer after having
seen the TV spot to the region’s tourism and investment promotion websites. It
is therefore important for the TV promotion to direct interested viewers to the
websites, which should be fully prepared to provide full information to the
prospective consumer.
At the same time, print advertising, Public Relations and documentary coverage
in target group(s) relevant magazines should be done in order to increase the
impact of the TV and online activities and really make a strong impact in the
consciousness of the target group(s).
Communication path – inform, motivate, act
Source: Horwath HTL, 2014
10.1. Internal communication strategy
Looking at the target segments / audiences, many of the key elements of the
communication strategy will, in fact, play out at the local (rather than
international) level. In pursuing "narrow" segmentation marketing approach,
one of the most compelling aspects of the Danube Serbia value proposition is the
fact that many European / international players have already chosen the region
as their base of operations. In addition, large number of people living in diaspora
originate from the region (especially from eastern part of the Danube Serbia).
Mobilizing the existing presence of various actors – investors, business
developers, consultants, artists, etc. as a testimony to the qualities of the
community, while simultaneously developing local champions who may lead
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elements of the investment attraction process, will certainly contribute to
further building of credible business environment in the region. Engaging
directly with entities that operate in the region will allow economic development
staff the opportunity to entice additional efforts / investments from
international entities already located in the region, while identifying those
domestic entities that have pursued opportunities and established links to
international partners. In that respect, key elements of internal communication
strategy should be:
Creation of an International Partnership Program – the aim is to gather and focus
the key region stakeholders in the process of attraction of foreign direct investments
/ implementation of programs to enhance business and overall environment
(donors' programs) throughout the Danube Serbia region. In this way, key
stakeholders from public sector (regional and local authorities, various institutions)
will be involved together with key stakeholders from private sector to efficiently
create favorable environment for implementation of new ventures.
Creation of an International Business Community program – the region must work to
build strong relationships with the international business community and with
representatives of the five key identified sectors. This process will anchor company
retention, talent retention and business expansion efforts within the key sectors,
while also providing high level information to those companies to then share within
their network of contacts / business communities. This program is to be
implemented as a joint effort of representatives of foreign investors (chambers of
commerce, associations) doing business in Serbia.
10.2. External communication strategy
External communication should be directed toward target audiences, following
strategic marketing goals, product and branding strategies. In the first phase, it is
important to raise awareness about the Danube Serbia region – its export goods,
tourism destinations, investment and business opportunities, culture and the
way of living. It is important to know that this strategy is to be implemented in
coordination of tourism communication efforts, since the effects for the region
will be much stronger.
Main communication instruments in this respect are as follows:
TV advertising campaigns. These campaigns should be very seductive and
attention creating, inviting to explore more and to redirect to the Internet portal
for additional information. It is important to use Danube Serbia umbrella brand
in all efforts, including separate campaigns launched by entities from the region.
In order to gain best results from TV campaigns, it is strongly recommended to
engage media companies, since in-depth and smart media analysis and planning
is required to catch hot moments for broadcasting (measured by GRP – gross
rating points and GRT – gross rating targeted points).
Online marketing. This instrument should increase online visibility and web
traffic through a combination of search engine optimization, video / interactive
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TERRITORIAL MARKETING STRATEGY
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banners, promotional messaging, key word campaigns and similar tools. This
action will help to increase awareness, will attract target customers (according
to the key identified sectors) to the respective Internet portals and will feed
database of potential customers / clients. This action should be jointly
implemented with tourism online marketing, either through internal online
marketing team (can be supported by some of the available technical assistance
programs being implemented in the Danube Serbia region), or by engaging
specialized agency.
Printed advertising. The recommended form of printed advertising is placing
extraordinarily explanatory advertorials in specialized printed press (depending
on the sector). An advertorial is an advertisement written in the form of an
objective article, usually designed to look like a legitimate and independent news
story, being a part of the whole publication. The messages to be conveyed should
be clearly defined, and draft of texts must be curiosity rising, jointly packed with
appropriate images (available marketing infrastructure should be used). Media
agency with deep knowledge on which type of press to be used at target markets,
taking into account key sectors, should be engaged for this task in order to be
professionally conducted.
Collaterals production. Collaterals are meant to be physical support, in
different sizes and formats, to the efforts in brand communication. This is almost
exclusively tactics of tourism operational marketing, but can be used to support
awareness building of the Danube Serbia region in general. The most usual
materials produced in this respect are following: USB flash kits containing TV
ads, brochures, images and films, pre-written text for journalists to be used in
their copies, a list of contact information for each of the key sectors, etc.;
emotional brochures; posters; souvenirs and merchandising material using the
identified symbols of the Danube Serbia region.
PR strategy
Investment promotion agencies, business associations, chambers of commerce,
as well as tourism organization should seek for a professional help – proposals
from creative agencies to develop a creative communication plan and strategy
which meets the objectives of the Territorial Marketing Strategy for the Danube
Serbia Region. This strategy should be read and applied together with Strategic
and Operational Tourism Marketing Plan for the Danube Serbia Region to ensure
that the PR agencies understand the context within which the PR strategy will
occur. Depending on an occasion, but in close coordination with other entities /
key stakeholders, one or more of the aforementioned entities should seek
proposals from public relations companies with experience in international,
integrated communications campaigns, to develop and implement the public
relations components of a public awareness campaign on the Danube Serbia
region for a period of at least 5 years (considering all relevant aspects of the
region).
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TERRITORIAL MARKETING STRATEGY
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The above-mentioned circumstances indicate that campaign must achieve
following goals:
1. Increase awareness of the Danube Serbia as a prospective region at
European / international level, neutralizing any possible negative
perceptions
2. Increase demand for exported goods originating from Danube Serbia, as
well as demand for visiting, doing business, working, learning,
investing and living in the region.
To be able to reach the goals, several strategic topics need to be highlighted:
a) Target groups - defined in previous section – external stakeholders –
consumers and businesses that have potential benefits buying products and
doing business in Danube Serbia.
b) Frame of Reference – Danube Serbia is for those who are seeking personal
and business experiences and success, moving around and living rewarding
experiences.
c) The core differentiators - there are following core differentiators providing
for the uniqueness of Danube Serbia as a region: good geo-strategic position;
unique mix of urban and rural areas with a strong economic growth
potential; transport hub of the South – East Europe; rich natural and cultural
heritage; competent and credible workforce. All these elements make a
strong combination of resources and people that is unique, and therefore it
can be justified to position the region in a following way: "Danube Serbia –
the best of the Danube".
Entity responsible for this part should stipulate in the PR brief (public
procurement for PR agency) all the above mentioned goals and strategic topics
and especially those requirements which are expected as agencies’ proposal as
mix of following activities (in terms of percentage of the total budget and
markets):
Educationals;
Journalist visits;
Media briefings;
Product placements;
Media events;
Award ceremonies;
Publicity activities;
Timeline of activities;
Cost structure of all activities.
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10.3. Sales and distribution strategy
Marketing strategy should focus on developing the main distribution channels
for the overall Danube Serbia region, e.g. for products, services, information
providing etc. through carefully developed strategies:
Powerful web strategy
B2B (business to business) platform for stakeholders - creation of media and
materials for communication to business partners to make easier selling of the
Danube Serbia region's products and services – workshops buy / sell Danube Serbia
Fairs and exhibitions strategy – to select best options in fairs and exhibitions
(general or specialised) and push sales
Out of total marketing budget spread-out for the online and offline effort should
be as following:
Distribution channels – total distribution
Online
1.0
Advertising
30%
Publicity / PR
20%
Publications
20%
Source: Horwath HTL, 2013
2.0
50%
40%
30%
Offline
20%
40%
50%
Marketing tactics for sales and distribution strategy are as follows:
Internet portal(s) of last generation. This is one of the most important
marketing tools that the region can have for conveying its message(s) to relevant
markets, communicating its image and values, presenting products and services.
This is actually a set of interlinked Internet presentations, which altogether
provide the information on the region. The most important in this context is a
tourism web portal, providing comprehensive, updated and full-detailed
information on the tourism attractions and experiences to be lived in the region
(containing accommodation information and booking tool). In addition, web
sites containing information on investment opportunities provided by
investment promotion agencies (SIEPA and VIP), information business
opportunities and clusters (ministries, development agencies, associations and
chambers of commerce), as well as information on cultural events should be well
coordinated with main tourism promotion web portal.
"Buy" Danube Serbia. Working meetings to which a limited number of potential
business partners from the source markets are invited to visit the region and
discuss possibilities of purchasing the goods, starting a business in the region, or
undertake joint ventures with entities from Danube Serbia. These efforts should
be well planned and organized, usually coordinated by chamber of commerce,
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TERRITORIAL MARKETING STRATEGY
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taking into account key target sectors (agriculture, transport, environment, SME
development and culture). Similar tactics is applied as a part of tourism
marketing operational plan (marketing toolbox).
"Sell" Danube Serbia. Very similar to the "Buy" tactics, but organized in the
relevant source markets. "Sell" action takes form in a one day event, when
domestic companies have the chance to visit potential partners and present their
products / services / business potentials and negotiate for possible
arrangements. These efforts are usually organized by Serbian Chamber of
Commerce, using its network of branches at the main source markets. Similar
tactics is applied as a part of tourism marketing operational plan (marketing
toolbox).
Target mailing. This action suggests mailing (e-mailing) segmented offers and /
or information to potential customers / clients / investors / partners which are
included in particular databases formulated for the Danube Serbia region.
Mailings should be executed with a well articulated opportunity / offer,
containing all relevant information for those who continue to pusue further
information, or take action in that respect.
Fairs and exhibitions. It is important to provide presence of relevant entities
from the region at target (general or specialised) fairs and exhibitions,
considering target segments of this Territorial Marketing Strategy. It is basically
one of the tactics that provide direct communication with relevant target
audience, depending on the sector. Thus, it is very efficient in reputation
building, following the recommendations of achieving quality mix of products
and services in the Danube Serbia region. These efforts are to be coordinated
with efforts in tourism marketing as well.
The idea is to go with online marketing activities as much as possible, because
targeting is much easier (it is easily possible to pinpoint exact target of an
action). In addition, cost-wise, online activities are much cheaper with greater
return on invested marketing budget.
Strong efforts will be needed in internal marketing with regards to online
communication. If entities in the region do not go for online strategies, all public
efforts will be practically useless. Therefore, it is crucial to understand that
Serbian Chamber of Commerce with the network of regional chambers of
commerce / regional development agencies, SIEPA, VIP, Tourism Organization of
Serbia should devote major efforts to bringing companies related to target areas
into the online community (get into the 2.0 world, be top ranked on Google,
create multimedia promotional material, expose new and attractive experiences
in a catchy way, etc.), not forgetting that the trend is going for interactive
contents rather than simply displaying more or less attractive and well
organized pieces of information. In the end, the idea is to communicate and sell
Danube Serbia as a prominent region with a great perspective and full concious
about its important role in the overall Danube region development context.
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Investment promotion
Following recommendations received from ADA during elaboration of this
strategy to put special attention on potentials in attracting foreign direct
investments, investment promotion strategy will be presented separately, as a
part of overall sales and distribution efforts of the Danube Serbia region.
The emphasis of investment promotion efforts is usually to attract foreign direct
investments (FDI). In that respect, FDI can be defined as the establishment or
purchase by residents of one country of a substantial ownership and
management share, usually measured by a minimum equity stake of 10 percent
of a business in another country14.
Investment promotion is a deliberate effort of a country / region (place) aimed
at attracting investors and new businesses. It is important to say that
stakeholders from the Danube Serbia region insisted that the prospective
projects from the target sectors should be articulated in a way they should
attract export oriented (foreign) direct investments.
Basically, a country (or a region, place) seeks to accomplish following objectives
with investment promotion efforts:
1. To improve the image of the region among prospective investors and communicate
the region as a place which is favorable for investments;
2. To stimulate investments directly (investment generating activities);
3. To provide support and services to prospective and existing investors.
Using the results of the research / interviews with officials from promotion
agencies 15 , following promotional techniques are used in the context of
investments promotion – parallels with previously mentioned tactics and
specifics for the Danube Serbia region are given where appropriate:
1.
2.
3.
4.
Advertising in general financial media (online and print ads);
Participating in investment fairs and exhibitions (sales and distribution tactics);
Advertising in industry- or sector - specific media (online and print ads);
Conducting general investment missions from source country to host country or
from host country to source country (similar to "buy" and "sell" Danube Serbia
tactics);
5. Conducting general information seminars on investment opportunities (using the
network of branches of Serbian Chamber of Commerce and diplomatic missions);
6. Engaging in direct mail or telemarketing campaigns (target mailing tactic);
7. Conducting industry- or sector – specific investment missions from source country to
host country or vice versa (again, similar to described "buy" and "sell" Danube
Serbia tactics);
Marketing a Country: Promotion as a Tool for Attracting Foreign Investment; Wells, Louis T.; Wint, Alvin G.; World
Bank, 2000
15 Ibidem
14
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TERRITORIAL MARKETING STRATEGY
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8. Conducting industry- or sector – specific information seminars (using the network of
branches of Serbian Chamber of Commerce and diplomatic missions);
9. Engaging in firm – specific research, followed by "sales" presentations;
10. Providing investment counseling services;
11. Expediting the processing of applications and permits (providing support and service
to prospective and existing investors);
12. Providing post investment services.
Techniques 1 – 5 can be classified as image building / raising awareness
tehniques and are being used to change the image of the country / region as a
place to invest. In that respect, it is strongly recommended that these tehniques
(tactics) should be used in the first phase of the implementation of this
Territorial Marketing Strategy.
As it was explained in Product Strategy, there is a strong correlation between
credibility and visibility of an investment region. Having in mind that the
strategic choice recommended with this strategy is to pursue "narrow"
segmentation approach, it is of paramount importance to put emphasis on
quality component and build credibility of the region on the basis of quality of
goods, services, people, business climate, etc.
It is imperative to build credibility among targeted group of investors, before
broadening image-building effots. This is also a good way to support building of
competitive identity of the region and its overall reputation. In that respect, this
strategy proposes courting a narrower range of prospective investors and,
accordingly, seeking to build credibility among a narrow group of investors
before engaging in more visible image-building activities.
During the early stages of investment promotion, it is strongly advised to use
impersonal promotional techniques (online and offline). Personal techiques are
used in the later phases – when a focus on image building shifts toward the focus
on investment generation (techniques 6 – 9). Investment promotion agencies
and supporting institutions move their focus on investment generation when a
majority of prospecitve investors are in the later stages of the investment
decision process.
Finally, techniques from 10 – 12, are usually classified as investment – service
tehniques. These activities are undertaken by investment promotion agencies,
but with a full support and cooperation with relevant institutions and other
bodies. It is not important which entity will provide services of investment
counselling, expediting the processing of applications and permits and providing
postinvestment services; what is impotant is that these services have to be
available and easily accessible to investors who decided to invest in the Danube
Serbia region. It seems as the most logical choice that these activities should be
provided and coordinated by the Serbian Chamber of Commerce, with a support
from investment promotion agencies (SIEPA and VIP), relevant ministries, as
well as from regional and local economic development entities.
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Public diplomacy
The main goal of this distribution and communication strategy, within the
framework of territorial marketing efforts of the Danube Serbia region, is to
contribute to building the credibility of the region, establishing its competitive
identity among other regions and, ultimatelty, gain solid reputation for products,
people, communities, businesses, public service, etc. originating from Danube
Serbia.
Public diplomacy is very important as a part of overall distribution and
communication strategy, since it aims to present and represent government
policies to other publics / target audiences. In a broader context, public
diplomacy can be understood as a useful discipline in building international
relations, especially when there is a good image of the government and its
institutions.
With systematic communication of the values and perspectives of the Danube
Serbia region, public diplomacy can gain a substantial support to the building of
its reputation, as well as support from various sponsors for projects of the
Danube Serbia – from international development agencies, bilateral donors, EU
programs, etc. In fact, it is logical that the diplomats, or managers of
international institutions / programs that operate in Serbia, are fully prepared to
change their minds about a region, or the country as a whole. This further
creates a positive wave toward the investment community and other foreign
target audiences.
Public diplomacy should help to other efforts in the context of this territorial
marketing strategy in answering the following questions: who (what) is the
Danube Serbia, how it is perceived (seen) and what it does (what is done within
the region).
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XI MARKETING INFRASTRUCTURE
To make professional strategic marketing, it is necessary to have the "material"
of high quality to be used in accordance with proposed communication and
distribution strategy; desired impact can be multiplied when combined with the
appropriate media.
Having in mind that there is a rather challenging task – to position and
communicate Danube Serbia as a prominent, European region, it is necessary to
identify initiatives that will have content of high value-added particularly
through the UGC (user generated content) which increases target audiences'
desire to discover and learn more about the region and its offer, and even
motivate them to visit Danube Serbia.
On the other hand, in order to reach and maintain competitive edge, as well as to
enable meaningful decision-making process for the key stakeholders, it is
necessary to provide a platform for cooperation among interested parties to be
able to provide accurate and timely market information. This cooperation should
result with a market research system, that will provide relevant information
about market tendencies, innovations, potential competitors, etc.
Key strategies in marketing infrastructure:
1.
Multimedia production
Production of multimedia content (films, videos, video clips, vignettes, DVD
loops, presentations short films, etc.) used in fairs, presentations, TV ads, Serbian
Chamber of Commerce / SIEPA / VIP official websites, YouTube channel and
social web. Strong coordination with National Tourism Organization of Serbia for
this activity is needed.
The main steps for multimedia production can be summarized in following
phases:
Revision and evaluation of existing material – definition of new
multimedia material standards and selection of the attributes and
messages to communicate whilst, eliminating those materials which not
comply with the standards defined.
Production of new multimedia material - preparing for new material
production (both images and videos should be strongly oriented to
attributes, attractions and resources)
Use of multimedia material – definition of usage conditions of multimedia
material by third parties (media, private sector, public entities, etc.). It
should be a free service available from the Serbian Chamber of Commerce
/ SIEPA / VIP websites, after logging into the web’s database.
Basic tactics in multimedia material:
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Image bank
DESCRIPTION OF THE ACTION
Creation of a photo library containing a selection of the best shots of Danube Serbia.
All images included should get their message across by the use of emotions, feelings
and experiences. The main difference between a Photo bank and a traditional
photographic archive is that all images included in the Photo bank have a clear
communicational message: images are conceived to lure viewers into exploring
Danube Serbia opportunities and even experiencing the destination by themselves
(coordination with National Tourism Organization of Serbia, especially in the fields
of nature and culture).
The photo bank becomes, therefore, an indispensable tool to:
1) support the marketing activities undertaken by investment promotion and
tourism promotion agencies;
2) control the image of the destination, communicated by third parties (specialized
magazines, websites and other entities)
The Photo Bank provides with deep insight in assets, values, opportunities and
experiences comprehending site-, product- and people-related images.
It would be good to split the Photo bank in 2 sections:
One containing “institutional” or generic images
One containing product-related images to be used in the promotion of specific
products / services
The image bank will be accessible on the web portal, under restricted access
managed by Serbian Chamber of Commerce with its in-house online team.
In addition, the photo bank must be partly updated with fresh images at least once a
year.
IMPLEMENTATION PROCESS BASICS
Pre-production stages are key to the development of the Photo Bank and include the
following phases:
To identify themes to be photographed and locations.
Selection of existing free of rights photos
Purchase of interesting existing photos
Photos that will be used in a specific campaign will be described in detail,
including pencil drawing, description of actors appearing in the image, etc.
For its production, these tasks have to be realized:
1. Identification of locations to be photographed
2. Selection of themes, outline and story boards
3. Selection and purchase of interesting existing photos of Danube Serbia
4. Production of new pictures
5. Selection, digitalisation and manipulation with Photoshop
6. Inclusion of some selected images in the main search engines in order to link
Danube Serbia with those images
KEY SUCCESS FACTORS
The quality of the creative team in producing enticing and suggestive images on
to reflect the spirit of the region and its opportunities
Monitoring the outcome in terms of quality of each image and use thereof
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HOW TO BENEFIT FROM THIS ACTION
Product clubs and their members will have free access to a big part of the first class
images of the region with appropriate themes for their communication material at
no charge. This will be direct support to profesionalization of their design,
promotional and sales efforts. In addition, images will be used by official investment
promotion agencies – VIP and SIEPA, other national and provincial bodies –
ministries and secretariats, as well as by National Tourism Organization of Serbia.
Film bank
DESCRIPTION OF THE ACTION
A Film Bank represents the basic infrastructure for the production of advertising
campaign and promotional videos and movies. A Film Bank is a file of approximately
50 highly emotional and exciting situations in Danbe Serbia, already classified in
major themes.
The Film bank should be split in 2 sections:
One containing generic situations – activities, events, landscapes, heritage sites
(30 shots)
One containing product- and target-related shootings (20 shots).
The film bank will be accessible on the web portal, under restricted access managed
by tourism organisation. Parts of the film bank will also be uploaded to a YouTube
Danube Serbia Official channel (in coordination with National Tourism Organization
of Serbia), which should be created and managed by the in house online team.
IMPLEMENTATION PROCESS BASICS
The film bank production will require the accomplishment of following tasks:
1. Pre-production phase including theme and motive search.
2. Film script and technical script writing.
3. Logistical video production management.
4. Filming.
5. Post-production and edition of master.
KEY SUCCESS FACTORS
The quality of the creative team in producing enticing and suggestive films on
Danube Serbia's most attractive spots and activities available for the discerning
traveller
Monitoring the outcome in terms of quality of each film and use thereof
HOW TO BENEFIT FROM THIS ACTION
Product clubs and their members will have free access to a big part of the first class
videos of the country at no charge. In addition, videos will be available to official
investment promotion agencies – VIP and SIEPA, other national and provincial
bodies – ministries and secretariats, as well as by National Tourism Organization of
Serbia.
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2.
Market research
Improved marketing intelligence system which will start collecting updated and
relevant information about the relevant market data across identified sectors
(demand, supply, competition, intermediaries, etc.), as well as other significant
data for development and promotion of the region as a whole or its products /
services.
From the demand point of view, up to 5 relevant source markets should be
analysed in detail for each of the identified sectors. Main steps for market
research:
Define, in collaboration with Product clubs / clusters and main sector
stakeholders, the objectives of the new Market Intelligence system:
understand their needs and requirements, their priorities, their trusted
sources of information, etc.
Plan the researches to be undertaken - define knowledge objectives,
choose research method (quantitative, qualitative, desk research, external
sources to be consulted/ acquired, etc.), launch the tenders for research
companies
Conduct the researches and share online the results with the Product
clubs / clusters, investment promotion agencies, relevant national and
provincial institutions / bodies, as well as with relevant regional and local
entities – regional chambers of commerce, regional development agencies
and local economic development offices
This activity should be coordinated by Serbian Chamber of Commerce.
3.
Online team support
As a part of Communication and Distribution Strategy, online visibility was
marked as a conditio sine qua non in the modern world. In order to build and
sustain desired reputation of Danube Serbia, it is important to manage its web
content.
Estabilishing an online team that will deal with challenges of digital environment
is an essential task, if a message is to be properly communicated. This activity
should be done in close cooperation with National Tourism Organization of
Serbia.
Having in mind that Product Strategy proposes establishing of relevant Product
clubs / clusters, this task might be entrusted to one of the ICT clusters, but
should be coordinated by Serbian Chamber of Commerce.
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Online team
DESCRIPTION OF THE ACTION
This is a top priority activity, given that the online team will be responsible for
several key issues:
Managing the web portal, both from content and outlook perspectives. This will
be the major task, given that there is vast workload related to constantly
managing the offer database
Steering the online marketing actions across all markets in collaboration with
selected agencies
Managing the Social Media channels opened
Managing the photo and film banks
IMPLEMENTATION PROCESS BASICS
This team will necessarily be composed of technicians / web masters /
programmers and, preferably, of young people. They have a much closer insight to
all web constraints, trends and main issues.
Initial programming and set-up can be entrusted to one of the ICT clusters (product
clubs).
KEY SUCCESS FACTORS
Hiring top notch professionals in each field required
Providing latest technology in all aspects
Offering excellent contract conditions for assuring continuity to a highly
specialized staff
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XII MANAGEMENT AND ACTION PLAN
Sound territorial marketing strategies must build on the unique assets and
resources in the region to build a framework for achieving economic prosperity
and marketing that communicates to the relevant target groups / target
audiences. This strategy contains inspirational objectives, as well as a set of
associated proposals / actions for achieving the desired outcomes. The most
successful strategies are community-based, with the ability to draw on the
expertise and connections of other organizations to achieve the vision for
prosperity. For that reason, the strategy was generated from a detailed
assessment of the sectors' economic and social assets and connections, aiming to
achieve the insights and consensus within the target sectors and with the local
communities in the Danube Serbia region.
Communities face new challenges in an economic development and international
marketing context. These challenges are fundamentally altering the tactics that
are being used as well as the goals and objectives that communities are aspiring
to. Several broad economic trends will undoubtedly affect any community’s
territorial marketing plans, regardless of their target markets or sectors, such as:
• The continuing rise of knowledge-based industries that require new skill
sets within the labour force, and the opportunities to source that talent
from a more global catchment area. • The ongoing globalization of the economy and the need for more regional
partnerships and collaborations to increase connectivity and available
resources. • The increasing economic prominence of many of the worlds developing
economies, creating new sources of outward FDI and new sources of
competition for developed economies in attracting FDI.
As it was repeatedly outlined, the main purpose of this strategy is to increase
credibility and visibility of the Danube Serbia region, in order to become the
place for exports of quality goods originating from Danube Serbia, to travel, to do
business, to invest, to work, to learn and to live in.
The aim of the Danube Serbia Region territorial marketing strategy is to convey
the spirit of the region as somewhere that is attractive to invest, do business,
visit, work or live in and to buy products from the region. The challenge is to find
and point out relevant and inspiring point of differences and to keep the effective
point of parity.
Danube Serbia Region territorial marketing strategy is, in fact, a gathering
together of an aggregate of assets and opportunities, directed at an audience
whose needs have been identified and understood. It is a way to build
competitive identity of the region.
It is about the quality of life – the quest for livable, investible and visitable region.
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Since there is no formal jurisdiction that covers the geographical scope of the
Danube Serbia defined with the task of elaboration of this strategy, during the
interviews with relevant stakeholders, and as outcome of the workshops that
were organized in the scope of elaboration of the Territorial Marketing Strategy
for the Danube Region, stakeholders agreed that Serbian Chamber of
Commerce should be the key, but not the only institution responsible for
implementation of this strategy, especially having in mind focus on improving
the business climate, setting the quality mix of goods and services and utilizing
existing network of associate institutions and branches in the Danube Serbia
region and abroad.
The focus of the Strategy is in attracting FDIs, identifying new business
opportunities and making Danube Serbia appealing as a heart of new Europe,
having in mind its European prospect. During workshops that were organized in
the scope of this project, stakeholders and experts identified Serbian Chamber of
Commerce as a central entity that should articulate common vision and
coordinate interests of various stakeholders. It has a tradition, infrastructure,
favourable organizational structure and network of partners and associates that
can ensure the tasks will be carried out professionaly.
In its expected strategic reorientation to a service based organization, Serbian
Chamber of Commerce, along with a network of regional chambers of commerce,
provides a solid framework for the acitivities that are proposed with this
Strategy. Within the organizational structure of Serbian Chamber of Commerce,
there are relevant associations and centres that can support further elaboration
of strategic recommendations and guidelines that are presented herein,
especially considering that these are to be further developed through
operational marketing and other development plans. In that respect, relevant
associations and centres within Serbian Chamber of Commerce that can use
recommendations of this strategy are following:
Association of Agriculture, Food Industry, Forestry and Water Management;
Association of Transport and Telecommunications;
Association of Electronic Communications and Information Society;
Association of Creative Industry;
Entrepreneurs' Community;
Centre for Small and Medium Sized Enterprises;
Environmental Protection Centre;
Quality Infrastucture Centre.
In addition, Serbian Chamber of Commerce has two very important divisions that
can support implementation of this Strategy:
International Economic Relations Division – with Project Management Centre,
Bilateral Cooperation Centre, Multilateral Cooperation Centre, Diaspora and
Representative Offices Centre, and
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Education Division – education centre that is capable of organzing training for
trainers and capacity buliding sessions.
In addition, it is proposed to form a group for coordination that will work on
harmonizing the missions and interests of various regional and national
stakeholders, especially for the purpose of implementation of branding and
communication and distribution strategies – Danube Serbia Brand Committee.
This body should include relevant representatives of business community
(through Serbian Chamber of Commerce and regional chambers of commerce),
as well as representatives of relevant minitries and provincial secretariats in
charge of trade, tourism, economy, agriculture and culture and export promotion
agencies. This body should coordinate activities and distribute tasks, but will
engage expert support, especially in branding and PR efforts.
Activity should be initiated and managed by Serbian Chamber of Commerce, and
requires formal support from the both National and Provincial Governments.
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TERRITORIAL MARKETING STRATEGY
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ACTION PLAN
In the following tables basic framework to support implementation of this Strategy is presented, with the focus on FDI attraction
activities, in addition to the identified leading marketing strategies. As it was already mentioned, all proposed actions need to be further
elaborated through separate projects and operational plans; at the level of this Strategy these should serve merely as an indication for
relevant stakeholders.
Action set 1 - Ensure requirements / prerequisites for achieving quality
Key Elements
Priority
Resources
Lead
Partners
Agriculture:
Agriculture and rural development are one of the target
segments of this strategy. As such, it is important part of the
overall identity of Danube Serbia and it is important to allign its
delivery according to the potentials and expected standards of
quality to be able to target relevant investors' and customer
markets. Having in mind key value propositions defined,
following activities are to be implemented:
Clarification of role of different stakeholders – who is
doing what;
Provide incentives and technical assistance for
production of high value-added products
Provide incentives and technical assistance for
production of organic products
Technical assistance in professional promotion and
marketing / protection of geographical origin / quality
labelling
Support traditional products and wine making –
ensure sustainable quality of these products in longterm
Identify opportunities to invest in production of higher
Project manager for agriculture
/ Serbian Chamber of
Commerce
High
Support from donors'
programmes and available
budget funds, according to
relevant project proposals
Serbian Chamber of
Commerce / setting
standards and
elaborating action
plan
Ministry of
Agriculture,
Provincial
Secretariat,
Regional Chambers
of Commerce,
Regional
Development
Agencies,
Local Economic
Development Offices
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processing phases
Promote production of biomass and use of crops waste
Support establishment of Local Action Groups and
product clubs / clusters
Key Elements
Priority
Resources
Lead
Partners
Transport:
Following the vision of Danube Serbia to become "transport
hub" of the wider region, these key interventions should be
considered:
Investments in new transport infrastructure –
railways, waterways and intermodal transport
connecting main routes and corridors on the crossings
of two European macro-regions
Reconstruction and rehabilitation of existing transport
infrastructure
Harmonization of regulation, capacity building, raising
competences
Provide an open market of transport services
Implement soft measures to reduce waiting times on
border crossings, time losses at customs and other
controls and procedures in foreign trade
Provide favourable conditions to attract transit trafic
Key Elements
Ministry of Trade,
Ministry of Finance
High
Funding from National /
Provincial Budgets,
International financial
institutions, bilateral loans
Government /
Ministry of
Infrastructure
Provincial
secretariats, cities
and municipalities
Chamber of
Commerce,
Professional
Associations
Priority
Resources
Lead
Partners
Serbian Chamber of
Commerce /
Universities
Regional Chambers
of Commerce,
Provincial
authorities, city and
local economic
Small and Medium Enterprises
Small and medium enterprises provide a chance for a thorough
change of profile of Danube Serbia. In order to make a shift in
this segment toward high value-added businesses, it is
recommended to implement following activities:
Develop human resources and increase motivation of
target groups, especially young entrepreneurs through
High
Project based financing /
technical assistance from
existing EU funded projects /
support from National and
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TERRITORIAL MARKETING STRATEGY
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raising awareness and training programmes (see next
chapter)
Provide support through research and development
activities
Provide access to venture capital
Support establishment of product clubs / clusters (ICT,
new/ green technologies, creative industries hubs)
Key Elements
Environment:
Green economy and investments into environment can become
one of the strategic directions for the development of the
Danube Serbia region economy in future. It is a big opportunity
for new employment and drawing of financial resources from
pre accession funds of the EU with the aim to build the
sustainable system of environment protection. Among others,
following activities should be taken into consideration:
Support to production of green energy
Support to green technologies / efficient use of
materials and energy efficiency
Support to sustainable waste management and
recycling
Rehabilitation of damaged areas and environmental
protection measures – allignment with European
standards and their implementation
Key Elements
Culture:
Culture with its products and services might be a catalytic force
within local and regional economies, not so much as a discrete
sector but as a form of “glue” that binds together existing
cultural, service, transport, tourism and supply industries. In
addition, it can significantly "shape" the image and reputation
Provincial budgets /
contributions from participants
Priority
Resources
development offices
Lead
Partners
Ministry / provincial
secretariat in charge
of energy, Serbian
Chamber of
Commerce,
professional
associations and
civil society
organizations
High
National and Provincial
budgets/ EU funding
Ministry / provincial
secretariat in charge
of environmental
protection
Priority
Resources
Lead
Partners
Project based financing /
Serbian Chamber of
Provincial
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of Danube Serbia as a true European region. These activities
should start in main urban aglomerations and will be spreaded
into other areas of Danube Serbia. Following actions require
efficient reaction:
Support creative industries hubs to enhance
innovations, new business models, access to relevant
markets, etc.
Support high-budget films production
Support application of Belgrade and Novi Sad for
European Capital of Culture
Support internationally recognized events
Support production of handicrafts
Support cultural routes as a means of Danube Serbia
promotion
Commerce / Cities of
Belgrade and Novi
Sad / Ministry of
Culture
Secretariats, export
promotion agencies,
High
National and Provincial Budgets
/ Budgets of cities of Belgrade
and Novi Sad / EU funded
technical assistance
programmes
Priority
Resources
Lead
Partners
High
Full-time Manager (to become
brand manager of Danube
Serbia)
Action set 2 – Building Administrative Capacity
Key Elements
Develop dedicated resources in Serbian Chamber of
Commerce to support international marketing activities
Establish a dedicated Manager position focused on
international marketing and development Form a small team of economic development and
communications staff on a semi-regular basis to
provide strategic direction on international marketing
activities
Provide a pool of financial resources to support
international marketing initiatives, including
print/electronic materials, communications, web sites,
and travel Serbian Chamber of
Commerce
Annual funding from Serbian
Chamber of Commerce own
Investment and
Export promotion
agencies (SIEPA and
VIP), Ministry of
Trade, Ministry of
Economy, Relevant
Provincial
Secretariats, Cities of
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funds with technical and
financial support from export
promotion agencies – SIEPA and
VIP
Build a network of partners to undertake joint
marketing initiatives, such as sector- specific efforts, or
materials to support work with local multinationals in
efforts to attract additional business lines from within
their corporate structures Key Elements
Priority
Resources
Belgrade and Novi
Sad
Lead
Partners
Building web presence of Danube Serbia with new
marketing materials – gaining globally recognized identity
Support creation of web-based microsites (one to six
page sites) separate from the Serbian Chamber of
Commerce / SIEPA / VIP websites, focused on general
international marketing and promotion of Danube
Serbia (consider the overarching value proposition)
and Danube Serbia’s positioning in the target sectors
(e.g. - one site for each target sector)
Buy / rent more promotional internet domains for
web-based marketing initiatives (microsites or the
Serbian Chamber of Commerce website) Design short (two to four pages) visually appealing
print materials for each target sector that build on the
sector-specific value propositions and offer content
relevant to potential target markets. Materials should
be developed in digital “print on demand” format to
minimize costs associated with frequent updates. Start with social media activities and presence,
research best practices in Web 2.0 international
engagement and marketing activities. High
Portion of Annual funding from
Serbian Chamber of Commerce
own funds with technical and
financial support from export
promotion agencies – SIEPA and
VIP
Serbian Chamber of
Commerce
Investment and
Export promotion
agencies (SIEPA and
VIP), Ministry of
Trade, Ministry of
Economy, Relevant
Provincial
Secretariats, Cities of
Belgrade and Novi
Sad
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Action set 3 – Building Community Capacity
Key Elements
Priority
Resources
Lead
Partners
Serbian Chamber of
Commerce
Investment and
Export promotion
agencies (SIEPA and
VIP), Ministry of
Trade, Ministry of
Economy, Relevant
Provincial
Secretariats, Cities of
Belgrade and Novi
Sad
Create network with local multinational companies,
export-oriented businesses and entrepreneurs to create
connections with relevant markets
Create an inventory of export-oriented small
businesses headquartered in Danube Serbia with
direct and established links to international markets
and partner firms
Establish connections with national business
organizations (e.g. American, German, Austrian,
Japanese, French chambers of commerce; Foreign
Investors Council) to develop specific marketing
messages and tactics to best reach their members and
the business connections of their members. During Danube Business Forum, organize an annual
“International Investment” summit focused on Danube
Serbia's place in the European and global economy,
aimed at the local business community to disseminate
information about the previous year’s successes and
the coming year’s activities. Key external stakeholders
should be invited to this event, including provincial
and national trade officials, and representatives of
foreign trade offices High
Engagement of Marketing
Manager with support of expert
staff from Associations and
divisions of Serbian Chamber of
Commerrce
To become regular activity
financed from annual budget
Professional
associations and
chambers of
commerce
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TERRITORIAL MARKETING STRATEGY
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Key Elements
Priority
Resources
Medium
Coordinated by Marketing
Manager
Lead
Partners
Serbian Chamber of
Commerce / regional
chambers of
commerce
Cities and
municipalities along
the Danube
Utilize connections with local cultural organizations to
create new connections with international markets related
to Danube Serbia's diverse population base
Create network of local cultural and national
organizations representing Danube Serbia's cultural
and national communities
Start partnership programme to engage these
communities and consult on strategic marketing
directions and connections with their connections in
their respective home countries
Establish a clear protocol between the State /
Province, municipalities and national communities
related to incoming business and trade missions,
cultural representations and delegations. This protocol
should indicate who leads community response and
how these communities will benefit from joint
engagement in attracting potential investors and
business developers from their home countries
Budgets of Cities and
Municipalities / support from
National and Provincial budgets
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Action set 4 – Targeting Strategic Sectors and Relevant Markets
Key Elements
Priority
Resources
Lead
Partners
Consolidate and leverage Danube Serbia's target sectors
strengths to access new markets, growth sectors and
current flobal FDI opportunities
Build relationships with key multinational brands to
promote the advantages of Danube Serbia as a region
to consider for additional business units Work with all levels of government to establish lead
generation strategies focused on key growth
subsectors Organize presence at key tradeshows and outreach
activities related to the target sectors Establish partnerships with economic diplomatic
missions and consulates of key international markets
related to target sectors
Key Elements
Marketing Manager
High
Serbian Chamber of
Commerce
Annual funding from Serbian
Chamber of Commerce own
funds with technical and
financial support from export
promotion agencies – SIEPA and
VIP
Priority
Resources
Investment and
Export promotion
agencies (SIEPA and
VIP), Ministry of
Trade, Ministry of
Economy, Relevant
Provincial
Secretariats, Cities of
Belgrade and Novi
Sad
Lead
Partners
Serbian Chamber of
Commerce / regional
chambers of
commerce
City of Belgrade,
ministry of
infrastructure and
transport, Belgrade
Airport, Railways of
Serbia, Roads of
Market Danube Serbia as a strategic logistical hub in this
part of Europe
Work with key sector companies to understand key
multimodal transportation requirements and
advantages Market the City of Belgrade as a key exit and entry
point for logistics and goods in the region stressing the
intersection of ICT and logistics opportunities. Expand
to other parts of Danube Serbia using "hub and spoke"
model
Establish links to key European supply chain and trade
Low
Coordinated by Marketing
Manager
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initiatives to promote Danube Serbia's potential in
developing multimodal logistics companies
Key Elements
Serbia
Priority
Resources
Low
Coordinated by Marketing
Manager
Lead
Partners
Serbian Chamber of
Commerce / regional
chambers of
commerce
Cities and
municipalities along
the Danube
Use traditional manufacturing strenghts of Danube Serbia
and establish the region as a key location for advanced
manufacturing technologies
Work with key local industry to understand the
elements of the value proposition that will most appeal
to technology-based manufacturers Establish marketing materials that build on the
advantages of environmental policies and incentives
relevant to green and technology-based manufacturers
Consult key multinational / regional companies in the
target sectors to build the profile of Danube Serbia as a
location for additional investment
Budgets of Cities and
Municipalities / support from
National and Provincial budgets
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CROSS CUTTING ISSUES
Apart from precisely defined scope of the key areas to tackle (agriculture,
transport, environment, SME development and culture) with the Territorial
Marketing Strategy (Strategy) for the Danube Serbia Region, the range of
imperative cross cutting issues needs to be addressed in addition. Highlighted
cross cutting issues requires special attention and needs to be an inevitable
ingredient of proposed strategies and activities, and in operational work of all
involved stakeholders. These issues represent the horizontal aspects of the
Strategy and caontribute to its implementation in a responsible manner.
The crucial thing in process of planning and further implementation of the
Strategy, it to build relevant stakeholders' awareness regarding the importance
of sustainable behavior (local, environment and financial sustainability of
defined areas). It is crucial to have all the stakeholders aware of the issues that
underpin sustainable development and responsible operations, most important
of them being environmental sustainability, gender mainstreaming and
minorities' inclusion. These issues are necessarily taken into consideration by
each proposed step, as well as integrated in the overall management of the plan
in a reliable and rational way.
Environmental sustainability
Environmental sustainability is focused on the preservation of natural and
environmental settings in which local business and economy is conduct. No
action prescribed by the Strategy may expose environment with the negative
effects or threaten the preservation of the already limited natural resources.
The Strategy, within provided solutions and tactics, pays attention to the issue of
environment and further sustainable development. All the activities will
necessarily imply strict accordance with nature preservation regulations, as well
as the processes that are not obligatory by the relevant laws and acts, but are
stimulating sustainable environment, such as biomass utilization, recycling,
green waste water treatment etc, and especially in the field of agriculture and
transport, where certain effects of resource exploitation and infrastructure
building may cause impacts on the environment. In addition, preservation of
environment and usage of clean energy from natural sources or from recycling
materials, is a base for SME development on a local level.
Minorities inclusion
Besides the fact that the Strategy pays attention to the issue of minorities
inclusion in the activities, this aspect is especially important because the
existence of national and cultural diversity, with over 12 nations habituating the
Danube Serbia region, makes it a propulsive and business culture diverse region.
All covered sectors (agriculture, transport, environment, SME development and
culture) enable all of the minority groups to freely to use their customs and way
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of doing business. People, companies, SMEs and entities from the minority
groups are encouraged to participate in all the activities implied by the Strategy.
All the Strategy tactics are designed to stimulate minorities inclusion and
contribute to their better positioning in the Region. Moreover, the minorities'
culture and heritage will remain and the visibility will be supported. Having in
mind that culture is one of the key areas tackled in the Strategy, and that culture
is a part or influences other segments, it is obvious that there is no limitation in
regards to minorities communication expected.
Gender equality
Gender sensitivity is a characteristic of every developed community and society,
so paving the road for the Danube Serbia Region towards an internationally
recognised territory is one of the prerequisites for its good image and viable
development. Gender issues need to be tackled within each and every tactic and
activity, ranging from supporting female business initiatives or preserving their
arts and crafts to encouraging their employment, self-employment and
education. Equal opportunities principle and promotion of women’s
participation in the all spheres are the area of special interest to the Territorial
Marketing Strategy of the Danube Serbia region.
Agriculture and SMEs are presenting the dominant major source of income in the
rural areas of Danube region in Serbia, and the women are seen to have an
important role. Women are also dominant workforce in areas of culture and
environment, while in the transport they are not visible or compensated enough.
The Strategy should further women employment and raising the standards of
women working in the key areas.
The Strategy implementation will enable full inclusion of women into the
development of Serbia Danube as a business territory. With this cross-cutting
issue, all the groups of tactics have a similar role - to involve women in their
realisation, be it the product, sale or infrastructure. The skills the women of the
region possess need to be validated and made visible, but also stimulated for
further development. Strategy further stimulates the issues of women
employment, women entrepreneurship, capacity building - lifelong learning,
adult learning, representation and visibility), as well as demonstrating female
skills, arts, crafts, that altogether contribute to selling the destination. Women
can be taught to interpret the regional heritage, even stimulated to take the roles
of local guides.
All of the cross cutting issues of the Strategy for the Danube Serbia Region will be
visible throughout the whole process. They will be given special attention in
marketing, promotion and campaigns, as they are the fields that require special
social responsibility and consideration by all the involved stakeholders.
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COMPETITIVENESS PROGRAMMES
Having in mind broad and diverse coverage of sectors that are in focus of this
Strategy, as well as numerous target gropus / audiences that are to be involved,
we propose to structure and implement three programmes to raise
competitiveness of Danube Serbia and to provide solid grounds for reaching
main strategic marketing goals, ensuring quality in the mix of goods and services
offered to relevant markets in the first place.
These programmes are proposed to sensitize residents and local communities,
representatives of small and medium enterprises, local authorities, civil society
organizations, business representatives, as key target groups that will be
responsible for delivering the value for the relevant markets, as well as for
increasing of overall appeal of Danube Serbia.
The programmes presented herein can be understood as measures of internal
marketing, so that all involved stakeholders at all levels understand the
necessity of coordinating their activities in the context of improving the business
environment in the Danube Serbia region (and beyond).
1. DANUBE SERBIA AWARENESS PROGRAMME
Concept
This programme presupposes awareness raising initiatives for residents and local
communities on the importance and benefits of the new approach to Danube Serbia
economic development, based on its potentials in target sectors: agriculture, transport,
environment, culture and SME development.
This programme should start as soon as possible and carry on continuously. Its focus
should be twofold:
this programme promotes increases the awareness of importance of the relevant
sectors in Danube Serbia economy in general, and it should contribute to the
improved image of the region as a whole, as well as it raises awareness on the
increased job opportunities in respective sectors for local communities along the
Danube.
another very important aspect of this programme is related to the necessity to
achieve quality in products and services offered to the relevant markets
The main goal of the programme is to develop and promote the Danube Serbia umbrella
brand and to communicate emotional benefits of the region to be recognized as unique
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selling propositions for the relevant markets of Danube Serbia products and services.
This programme is for guidelines purposes only – a detailed project must be done prior to
start of the implementation of this programme.
Key elements
The key purpose of the awareness programme is to enhance local communities'
awareness and understanding on the overall economic development of Danube Serbia; to
introduce the positive impacts of activities in the target sectors to local residents for
further enhancing the quality of available resources in Danube Serbia and constructing a
business-friendly environment so as to enhance the overall satisfaction and to create a
‘feeling at home’ experience to all target groups. As this is a long-term project, the
objective for the next few years (until 2017) is to start with awareness building on
proposed strategies and measures within Territorial Marketing Plan and its further
elaboration through operational marketing plans and activities.
With this in mind, the awareness campaigns that should be introduced as a part of this
campaign are:
1. Danube Serbia Month / Danube Day (June 29th) – targeted at the small and medium
enterprises, local authorities, and civil society organizations. It will take place every year
at the same time and it should have a different theme every year: natural heritage – assets
and values; cultural heritage – assets and values; how to start a business and provide
funding for a business idea; small-scale agricultural production – satisfying needs of
sensitive markets; soft mobility along the Danube, etc. The local communities of Danube Serbia are ‘educated’ about the importance of relevant sectors for their wellbeing and the
link between different stakeholders, culture and the economy. A variety of activities can
be organised during this month, and some of them can be:
Danube evenings – the participation of communities in the events with an
interactive section, where representatives of SME's, local authorities and
civil society organizations can be rewarded for their discussions and ideas,
answering some questions about relevant topics on the main subject of the
month, etc. These events can be organised at several cities / municipalities
along the Danube, mobilizing participation of local communities.
Radio Quizzes – throughout the Danube month organise radio quizzes on
different local radio stations, about cultural and natural heritage of the
communities, main economic activities, agricultural products and related
facts. Winners receive rewards (free T-shirts and similar). This activity is
closely related to tourism awareness programme and should be conducted
in close coordination.
School visits – a team of ‘Danube Serbia promoters’ (a team that is organized
by Serbian Chamber of Commerce and relevant cluster / product club
organises visits to secondary schools with an aim to introduce topics
related to the respective subject of the Danube Serbia Month with students
– culture, nature, agriculture, creative industries, ICT development, career
opportunities, etc. )
2. Danube Serbia business forum – Serbian Chamber of Commerce with the network of
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local partners can organize business forum each year, with relevant topics.
The Forum will feature roundtables on: role of agriculture in the economic development
of Danube Serbia; impact of transport and telecommunication infrastructure and the
economy development of Danube Serbia; small businesses opportunities in Danube
Serbia; sustainable use of resources in Danube Serbia; promotion of investment
opportunities in Danube Serbia – system and challenges, etc. In making it a memorable
and exemplary event, eminent private and public individuals should be invited to speak at
the forum.
3. Champions of the Danube – each year a most successful representative of the
respective sector is elected to become a champion of its local community to compete with
colleagues from other cities / municipalities from Danube Serbia with the business idea,
innovation, new concept of production, or contribution to preservation of natural and
cultural heritage in order to become the Champion of the Danube in the respective field.
This activity is closely related to promotion of quality and developing new standards and
procedures in doing business. In that way, this activity will contribute to increasing skills
of the workforce in target segments and will contribute to reputation of quality labelling
efforts.
Business / management model
o
Publicly financed project / supported from donors' funds, starting with the
structuring of the awareness programme. Team of professionals from the Serbian
Chamber of Commerce and its respective associations / centres, together with product
clubs (to be established as proposed with this Strategy in the latter stage) will
structure the whole programme, making a detailed plan for awareness activities for
each year, and for a 3-5 year period.
o
The team will work closely with industry professionals, government officials
responsible for development of target sectors, and will engage these individuals into
various activities within the programme
o
Participation fees can be applied for Danube Serbia business forum
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2. DANUBE SERBIA QUALITY PROGRAMME
Project reasoning
One of the main marketing goals of the Strategy is to ensure the quality in the mix of
offered products and services. Product strategy proposes that quality should be in the
focus of future activities, considering establishing of respective product clubs / clusters
that will ensure that products, services and actions delivered should be based on solid
standards of quality with a system of monitoring and quality assurance. In that respect, it
is important to ensure that the right portfolio of products and servies ultimately get the
Danube Serbia brand – quality label.
Since quality improvement is a long term process, quick actions must be done instantly.
Namely, Danube Serbia should show which objects and partners already now offer
competitive and quality products and services to relevant markets, even before product
clubs / clusters are established.
Concept
Danube Serbia Quality label presupposes structuring and implementing a quality label
scheme, which is based on the international standards, especially designed for producers
and service providers that achieved significant market success. In that respect, Danube
Serbia quality label should be addressed at all components of the value chain that
contribute to delivery of quality products and services in Danube Serbia – production of
seeds and raw materials, traditional agricultural production, food industry,
accommodation facilities and restaurants (in coordination with tourism marketing),
carriers, natural and cultural heritage sites, events, consumers products, innovations, etc.
Evaluation criteria include both ‘soft’ (quality of offer, level of service, etc.) and ‘hard’
elements (standard of facilities / safety, functionality of spaces, technology applied, etc.)
Participation in the Danube Serbia Quality programme should be promoted via various
benefits for members:
Quality label sent to each member (window sticker and indoor area certificate,
online logo for website, digital logo for documents, etc.)
Free and / or priority listings in official publications or in sections of publications,
depending on target audience and member product or service;
Priority and preferential rates on advertising in brochures (if and where
applicable);
Access to cost-shared programs, including cooperative advertising and promotions
(if available);
Priority participation in activities such as study trips, fairs, conventions,
conferences and exhibitions;
Exclusive members-only representation by Serbian Chamber of Commerce and its
partners in selling efforts;
Display of member promotional leaflets at information centres and points (free
display space available per member - up to A4 dimensions or similarly prescribed
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by Serbian Chamber of Commerce / VIP / SIEPA);
Information on confirmed MICE events, fair-trade shows, and incentive tours for
members
Consulting / advisory services provided by Serbian Chamber of Commerce;
Contact list of clients met at promotional activities organized by Serbian Chamber
of Commerce / VIP / SIEPA;
Key elements
Quality assessment is being performed through following methodology.
1. What is being assessed?
Implementation of international standards of quality in the respective field, customer
service, available information about the product / service, avaliable facilities, etc.
Different weights are applied to each criteria, where quality standards can have no less
than 50% of weighting.
2. How is the assessment is performed?
Assessing team visiting the facility will have assessment sheets where grades are being
given based on situation and previous results of assessment (mail inquires, internet
search, etc.). Each category and subcategory has two sets of criteria:
a. minimum requirements – if not met, quality label cannot be given. Only after all
minimum requirements are met, label is given.
b. achieved score – based on additional criteria and grading guidelines.
Assessment is performed based on subjective experience and feeling of assessing team –
thus relevant expertise of members of assessing team is needed.
In the first stage, assessing team can be elected from the representatives of relevant
associations in Serbian Chamber of Commerce together with professionals from
universities and other professional associations; once product clubs / clusters are
established, this activity will be their responsibility – to find and reward the best of
themselves.
3. What are the assessment sheets?
Assessment sheets are quality assessment factsheets where assessing team is marking
achieved items/accomplishments. They should contain details on sale and purchase of the
entity, its production, technology, quality standards implemented, mechanisms for
customer protection / customer satisfaction and available facilities.
4. Calculating weighted score
After assessing team has assessed all grading sheets, final calculation of weighted score
and total score / percentage is being done. Special scorecard is created for this purpose as
follows.
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Achieved score should be written for each subcategory, ranging from 1 to 5 according to
previously defined guidelines for achieved scores. Next step is multiplying achieved score
(1-5) with weights and in that way weighted score is being calculated. All weighted scores
are then being summed up in “Total score” row. Based on all weighted scores, subject will
have up to maximum, for instance, 500 points. Based on total score, percentage is being
calculated (total score / 500) and written in form of percentage.
Based on percentages, quality scores are given, as follows:
0-50% -> quality assessment failed
50-69% -> “good” quality label
70-89% -> “very good” quality label
90-100% -> “excellent” quality label
Of course, once Product clubs / clusters are formed, with relevant support from
professional associations and universities that will be included in the programme,
adjustments and model improvements are suggested in order to tailor-made the grading
system according to specific quality improvement goals (add/remove graded items
according to quality policy goals – more items relating to specific quality indicators).
Business /
management model
Programme is
performed by
assessment teams
Operational specifics
1. Yearly licensing should be performed for the forthcoming
year
2. Licensing is performed by assessment teams in relevant
fields – based on application from received from
interested entity
3. If the application is denied (not full set of documents
required for application), stakeholder should be informed
on documents missing in order to complete application
4. After receiving the application, assessment team performs
study visit to assess conditions of the business subject
5. Followed by field assessment, final grading is performed
and decision on quality label is being derived – approved
or denied
6. Labelling is performed based on regular time schedule
(for instance applications during spring, early summer;
assessments during late summer and autumn)
7. Participation in the programme is subject to charge (there
are various approaches on pricing – according to yearly
income, according to type of business, according to
number of employees, or similar)
8. Participation is open for all stakeholders in the respective
sectors
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3. TRAINING PROGRAMMES FOR PROFESSIONALS IN TARGET SECTORS
Project reasoning
In the context of ensuring the quality in the mix of offered products and services, this is one
of the main support programmes that should contribute to increasing skills of the
workforce in target segments – agriculture, transport, environment, culture and SME
development. Knowledge, skills and capabilities of the workforce are essential for future
success of Danube Serbia as a prominent European region. This is even more important
considering that marketing of the particular sectors depend on direct relationship between
a producer / service provider and customer. Danube Serbia needs to improve the quality of
its products and services, in the main sectors that are in focus of this Strategy, as well as in
related ones. To achieve this aim, a training program for professionals is proposed.
Concept and key elements
Having a diverse coverage of the Strategy – agriculture, transport, environment, culture and
SME development, designing of concept of trainings is a challenging task. However, all
training programmes have similar approach, with the aim of acieving delivery of quality
products and services, which is conditio sine qua non for successful branding and market
success.
All of the sectors are unique in their processes and delivery, but all of them require
appropriate technical and management knowledge and skills. Thus, training programmes
should be designed to result with deep understanding and adoption of necessary
knowledge and skills on following topics:
1. International quality standards
2. Safety protocols and standards (especially in agricultural and food production, as well as in
sector of transport)
3. Relevant market tendencies and priority markets for target sectors
4. Innovations and technology
5. Efficient and sustainable use, protection and preservation of available resources (lands,
environment, cultural heritage)
6. Funding your project / buisiness idea (with special attention to available EU funding)
7. Technical skills – sales, communication, language skills, etc.
The training program for professionals in service sector aim to train people who already
have a professional life.
Each training programme should be developed based on following criteria:
General field of training
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Objectives and priority themes: skills to be learned thanks to the training
Type of training: duration, method, number of people…
To be noticed:
Training action is an educational process whereby people work and learn together by tackling
real issues and reflecting on their actions. Learners acquire knowledge through actual actions
and practice rather than through traditional instruction.
Some training requires being in small groups in order to make participants take an active part:
training action, role-playing, debriefing about personal experience etc.
Language skills training are a mix between interactive training (in face to face or by phone) and
auto training (on the internet).
Business / management model
We believe that the training of professionals, in the perspective of Danube Serbia territorial
marketing is a program of wider / national interest. Indeed, the efficiency and quality of
transition to the desired position will depend of this program.
Thus, we believe that the State should have a very strong incentive policy for the
development of this programme. But it has to involve private sector that will take
advantage of training the employees.
The rate of participation from the private sector has to be defined by the State and the
Programme should be implemented by Centre for Education of Serbian Chamber of
Commerce in cooperation with professional associations and universities, as well as
regional chambers of commerce / local economic development offices – to be able to
identify prospective attentants of training courses and adjust programs to their real needs
and expectations.
To provide sustainability, training programme(s) will be a responsibility of product clubs /
clusters, once they are established; this first round of sessions should be used to provide
additional incentives for producers / service providers to join and establish product clubs.
Operational specifics
The first step in implementation of training programme for professionals is the creation of
a project team, that will include relevant representatives from the Ministry of Economy,
Ministry of Agriculture, Serbian Chamber of Commerce, SIEPA, VIP, Ministry of Labour and
relevant professional associations, as well as associations of employers in order to fine tune
the programme and define the political willingness regarding financing.
This project team will be in charge of:
Defining political willingness: Training for professionals is an urgent necessity, but it
has to be confirmed by clear political objectives, that will be translated in terms of
number of peoples to be trained by 2017, priority segments, sources of financing etc.
Making private sector aware of the necessity of training and sharing their
experience, needs etc. A participative method is required for two reasons: in order to
have a pedagogical approach and to convince private sector that training is crucial for
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the sustainability and future economic growth in Danube Serbia, as well as to obtain
appropriate financing, including donors' support.
Fine-tuning the programme - at this stage of the project, advice from professional
trainers is needed in order to :
Confirm the general topics that have been recommended to be taught
Adjust the content and objectives, regarding to the available financing means
Adjust the method / type of training regarding to the objectives
Think about priority segments to be trained
Looking for qualified trainers. It is required to launch a bid based on very strict terms
of reference. Indeed, it is very important to hire very qualified trainers so that the
programme in successful.
Launching of registration: Involvement in training process in based on volunteering.
Companies and employees can register online. Then, they receive a notification. If there
is too much registration, training is provided regarding to the date of registration and
recommendations provided by local economic development offices and / or regional
chambers of commerce.
Proceeding of training session: During the first sessions, it would be required that a
member of the project team attends in order to ask for adjustment in the content and
the method if necessary. At the end of each session, trainer has to provide participants
with an assessment form.
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