Download Područje: Tourism destination management

MODELLING MARKETING STRATEGY ON
TOURISM DESTINATION WITH A SPECIAL
AMBIENCE VALUE –
CROATIAN PROJECT: STONE LIGHTS
Neven ŠERIĆ, Ph. D.,
Assistant Professor,University of Split, Faculty of Economics,
Matice hrvatske 31, 21 000 Split,
Project manager, Plovput d.o.o. Split Obala Lazareta 1, 21 000 Split
021 430 659
098 931 6804
[email protected]
Tihomir LUKOVIĆ, Ph. D.,
Assistant Professor, University of Dubrovnik, Department of Economy and business
economy,
Čira Carića 4., 20000 Dubrovnik,
098 343 899
[email protected]
Abstract
The potential of tourist valorisation of destinations with a special ambience value
could be subject to a variety of risks. These destinations are a prerequisite for a
substantial growth of tourism and for a sustainable future of the national tourist offer,
and represent an important economic value for the state owner. However, tourist
valorisation of such destinations could go out of control and devastation is possible.
Being an important national asset, Croatia's lighthouses as delicate and valuable
localities require an original marketing strategy.
The global success of tourism on Croatian lighthouses is a result of an original
marketing strategy. The project dealing with this issue may be useful to define a
methodology of marketing strategies: how to protect and preserve lighthouses and
landscape including the natural phenomena, how to protect the sea and the land, and
how to find acceptable models of tourist accommodation with low investments and
high profits.
At the end of the1999 Plovput (Croatia's state owned company for navigation safety)
initiated the Stone Lights Project. The research of this project has been done on test
bedding:
 The effective tourist valorisation of destinations with special ambience value
implies an original market strategy.
 The profit in tourist projects based on destinations with special ambience
value depends on the applied marketing strategies and resource management.
 Including such destinations in the national tourist offer has positive effects on
the global market.
1
During researching, some of the hypotheses were:
 Tourist valorisation of lighthouses demands an original marketing strategy.
 Profit margins in such a project depend on the marketing strategy and
destination management.
 Enrichment of the Croatian tourist offer by lighthouses makes an interesting
part of the national tourist marketing strategy.
Marketing strategy for the tourist destination with a special ambience value needs to
identify its uniqueness on the tourist market. Marketing strategies evolve with the
evolution of the contemporary market and have to be gradually adapted to the global
demand. Our research has shown that the marketing strategy for the Project will be
eventually shaped through the visitors’ evaluation of such destinations.
The following methods were used in the research on the Stone Lights Project: causal
analyses, functional analyses, intuition, incomplete syntheses and causal inductions,
observations, experiments, and surveys. Methodological approach to the theoretical
organization of the project also determined the marketing strategy modelling. The
product (service) and distribution were the basis of differentiation, publicity was the
basis of promotion, and the price was the generator of project continuation. The
particularity of a lighthouse as tourist destination defined the factors of the pricing
strategy. The platforms of the Project’s final pricing strategy were: Marginal-cost
pricing, Dynamic pricing, Premium pricing, Contribution margin-basic pricing, and
Absorption pricing. In the context of a single location each pricing strategy was
quantified by the weight range of 0.00 – 3.00. The weights were eventually summed
up and applied on the prices calculated on the basis of Cost-plus pricing strategy.
The Stone Lights Project may be the platform for survival on the tourist global
market. The final model of destination management and marketing strategy in such a
project may be the formula for the right valorisation of destinations with special
ambience value.
Key words: marketing, strategy, tourism, lighthouse, ambience, value.
1. INTRODUCTION
Environmental preservation of the areas that have not been considerably devastated is
a prerequisite for a substantial growth of tourist industry and for a sustainable future
of the national tourist offer.1 Croatia's lighthouses certainly are delicate and valuable
localities. Therefore, prior to their exploitation, they should be protected, preserved
and enhanced under strict control in order to avoid their devastation. There is a
possible solution on the global level, since the natural resources of Croatia may be
seen as a common cause in this part of Europe. The state-owned firm Plovput is the
legal successor of the first Department for the Safety of Navigation from the time of
Austria – Hungary. Plovput today operates the lighthouses on the Adriatic Sea. Neven
Šerić and Hrvoje Mandekić worked out a complex investment project called the Stone
Lights (Kamena Svjetla) – valorisation of the available accommodation capacities in
Šerić, N.: Disposal of waste waters in ecologically sensitive environment of lighthouses, Proceedings
of the 44th ELMAR international Conference, Zadar 2002.
1
2
lighthouse buildings. Part of the project deals with tourist valorisation of the
lighthouses. In that segment of valorisation the original approach to operation of these
destinations with particular ambience value is evident. Based on that operation model
a special marketing strategy was developed. The strategy is based on exclusivity of
the lighthouse as a tourist destination and sensitivity of resources that ensure a special
market status for such a destination. The Stone Light project may be an adequate
model showing how to keep, valorise and utilize valuable national resources for
marketing purposes of the national tourist offer.
The Stone Light Project determines an original approach to destination management
in terms of marketing strategy methodology: how to protect and preserve lighthouses
and landscape including the natural phenomena, how to integrate the protection of the
sea and land, and to find acceptable models of tourist accommodation with low
investments and high profits.2
The international significance of the national tourist marketing in a transition country
depends primarily on the quality of its professional creators. If they have a poor
scientific background and an inadequate practical experience, the achieved results
may be significantly lower than expected.3 Moreover, they may jeopardize the most
valuable natural resources of the country. Consequently, the country can eventually
lose its comparative advantages for developing some specialized models of
ecotourism. Destination management in locations of exceptional natural value is a
prerequisite for sustainable development of national tourist industry.
1.1. Research of the Project
By the end of the 1999 Plovput initiated the Stone Lights in order to find a way to
stop the deteriroration of buildings which were no longer used for their original
purpose (as residences for the keepers and their families before automation). The
Project aimed to find an acceptable way to ensure re-payment of the loans obtained
for the repair, maintenance expenses and other accompanying costs for the upkeep of
the lighthouses. The surplus would be re-invested so that in the future all the forty
eight lighthouses along the Croatian coast of the Adriatic Sea could be revitalized and
newly equipped and additional funds for the permanent maintenance of the
lighthouses would be ensured.4 The vital feature of the Stone Lights Project is
reflected in a sustainable model of establishing rules of conduct for the guests in
tourist suites in the lighthouses. This segment of the Project emphasizes the
importance of the high ecological standards which must be respected. Thanks to the
original environmental requirements this Project was approved by the Croatian
Ministry of Environmental Protection and Physical Planning which also gave it a
special award in the Tourism and Environment category in 2001. In such case tourism
on lighthouses represents an original example of destination management and of a
special marketing strategy.5
Šerić, N.: Kamena svjetla – turizam na svjetionicima, Gospodarstvo i okoliš, no. 72, 2005. p.42 -47
Šerić, N.: Importance of remodeling of marketing strategies for the market in the countries in
transition, Proceedings of the 5th International Conference Enterprise in transition, Faculty of
economics Split, Split 2003.
4
Šerić, N.: Kamena svjetla, priče i legende o jadranskim svjetionicima, o mjestima na kojima su
izgrađeni i o njihovom podmorju, Marjan Tisak Split 2004.
5
Ozretić Došen Đ.:, Marketing usluga – nužnost u hrvatskom turizmu, Acta Turistica, Faculty of
economic Zagreb, no. 2 Zagreb 1993. p. 155-171
2
3
3
The research of this project has been done on test bedding:
 The effective tourist valorisation of destinations with special ambience value
implies an original market strategy;
 The profit in tourist projects that are based on destinations with special
ambience value depends on the adequate application of marketing strategy and
resource management.
 Including such destinations in the national tourist offer has positive effects on
the global market.
2. MANAGING DESTINATIONS WITH SPECIAL AMBIENCE VALUE
A tourist destination with a special ambience value requires a special marketing
strategy as the competitive differentiation on the tourist market.6 The tactical
instruments will ensure the desired market position. The marketing strategies evolve
with evolution of the contemporary market and are gradually adapted to the global
demand.7
The Stone Light Project comprehends controlled economic valorisation of the
resources of a concrete location on which a particular lighthouse is situated. With this
approach it is possible to use particularities of a destination to incite additional
demand and create an image of exclusivity.
The basic aim of the management model for any destination with special ambience
value is the prevention of the rapid decrease of its value. Due to this, on each
lighthouse different accommodation capacities were set. Some of the lighthouse
buildings with their capacities could be arranged as apartment–hotels, but such
examples are rare. Only on the lighthouse Struga on the island of Lastovo, there are as
many as 4 apartments arranged, allowing simultaneous accommodation of 14 persons.
The Stone Light Project in that sense sets new criteria of the relationship between man
and the environment on the lighthouse, as the destination with special ambience value.
This requires an original destination management model involving transfer,
behaviour, organic and inorganic waste disposal, sewage treatment as well as a
recognizable marketing strategy. Despite limited and modest accommodation
capacities on the Adriatic lighthouses the marketing strategy used in the promotion is
comparable to the best practice in that field. . Interest for the lighthouse holiday has
been increasing on the global tourist market year after year, despite the gradual
increase of accommodation prices.
Our continuing dilemmas primarily refer to the model of destination management. In
spite of increasing tourist demand for the lighthouse holidays, it is impermissible to
expand accommodation capacities in any of the lighthouse locations. Most of the
lighthouses were built in the unique, completely non-urbanized environments. In these
6
Hooley, G.J., Saunders, J.A., Piercy, N.F.: Marketing Strategy and Competitive Positioning, ,
Prentice Hall, 3th Ed, Harlow 2004.
7
Doyle,P.: Marketing Management and Strategy, Pearson Education Ltd., 3rd ed., London 2002.
4
destinations it may be appropriate to raise the service level in terms of inventory,
additional activities, or the transfer speed and comfort as the rough sea navigation still
limits the destination selection for the remote lighthouses. In that way the lighthouse
holidays would be additionally differentiated from other exclusive tourist services
encouraging the demand of the market segment that chooses adventurous tourist
services.
In that sense the Stone Light Project shows that valorisation of the destination with
special ambience value requires the synergy of various tourist services. Exclusivity
and image of lighthouses as destinations will not suffice for all potentially interested
market segments to make the final selection.
2.1. Potential of the value perception for tourists and the domicile country
Like other destinations with special ambience value, Adriatic lighthouses are specific
from the point of tourist valorisation. Adriatic lighthouses were built more than two
hundred years ago by the Austro-Hungarian Empire. That fact itself is evident in the
awareness of a potential guest when he first encounters the possibility of spending
summer vacation on the lighthouse.
Offer of accommodation on the lighthouses was primarily directed towards the
foreign market. The starting hypothesis was that summer vacation in these
monumental buildings, cultural-historical monuments, would be seen as something
very special and extraordinary by the typical European tourist. Considering that repair
and arrangement of accommodation capacities on the lighthouses would require
considerable amounts of money, we could not rely on the experience of marketing
luxurious accommodation units. On the other hand, the domestic tourist perception of
the lighthouses could not be special, because of the fact that the typical Croatian
tourist does not consider lighthouses much different from any other Robinson Crusoe
destination on the Adriatic Sea. In that sense, the perception of additional value
offered by the lighthouse accommodation was not especially attractive to the Croatian
tourist. Instead, the perception created dilemmas about problems of transfer, supply,
the inventory of the suites, etc.
With foreign tourists, however, the awareness of the possibility of lighthouse vacation
resulted in special interest because it was a completely new tourist service in the
global market. Because of this fact we allowed this offer to be presented to the global
tourist market by foreign tour–operators. Besides their efforts, promotion of the
lighthouses was also helped by enormous publicity given by foreign media. Even Le
Figaro presented the tourist offer of Stone Lights. On the other hand, Croatian tourist
community has not properly recognized this specific resource to this day. This fact
implies also that the perception of Croatia as a receptive country is not differentiated
from Italy or Spain. Due to this, there is risk of wrong management of tourist
valorisation of the lighthouses as places with special ambience. Tourist significance of
the lighthouses on the national level is also marginalized because of limited
accommodation capacities of about one hundred beds. However, it is to be noted that
during the tourist season guests are willing to pay any price that may be asked for the
lighthouse accommodation.
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Another important fact to be noted is that in some of the lighthouses the tourist season
lasts as long as 8 months, in some lighthouses guests reserve accommodation during
the New Year’s holidays as well, and in some locations the season lasts even longer
(for example, the lighthouse on the cape Zub near Novigrad in Istria). All these facts
contribute to an extremely affirmative perception of lighthouse vacation among the
potential guests from the European Union countries.
Stone Lights are an original example of different approach to the environment, nature,
sea, and the sea bed. So, for example, sewage on the lighthouses today is treated by a
system of sopping and bio pits. The sojourn on the lighthouse is regulated by certain
rules of conduct. Vacation in the solitude of a lighthouse is not like staying in some
tourist suite somewhere in the solitude. As a cultural-historical monument, each
lighthouse has its history, tales and legends that can be the basis of its special image,
which is assumed by the Stone Lights Project.
The most important rules of conduct, which the lighthouse guests have to comply with
are:
 It is strictly forbidden to disturb the lighthouse operation or in any other way
jeopardize the safety of navigation.
 It is strictly forbidden to enter the lighthouse rooms designated with restricted
access notices.
 It is strictly forbidden to move the warning signs in and around the lighthouse.
 All outer openings of the lighthouse rooms must remain closed when the light
is on in them.
 It is strictly forbidden to set fires during the night or to send any kinds of
signals with a flashlight.
 It is forbidden to throw any waste around the lighthouse or into the seal. Waste
should be disposed in a designated place in plastic bags, separately organic
and inorganic.
 When coming to the lighthouse, a special Assuming Responsibility Statement
has to be signed.
 On the lighthouses on which the lighthouse keepers live, guests must follow
all the given instructions.
 It is necessary to take care of the water used for hygienic purposes. Due to this
there is a designated advisable daily amount in the daily tank.
 It should be mentioned that hunting wild animals is forbidden, as well as
picking protected plants, and fishing is allowed only with legal equipment and
with a fishing permit.
It should also be mentioned that guests are warned about these and other rules when
reserving accommodation in a lighthouse. They receive rules together with a voucher,
and any failure to comply with them results in the termination of their sojourn and
impossibility of repeated reservation in any other lighthouse. All this contributes to
the special perception of the lighthouse vacation.
2.2. Potential of valorisation for domicile country
6
It is the fact that not even after seven years of commercialization, Croatian lighthouse
holidays have not been adequately utilized in terms of national publicity. Lighthouses
are sometimes mentioned in the national media, but more in terms of research
journalism. On the other hand, the global tourist market increasingly often personifies
Croatian tourist offer through its original tourist services like the lighthouse holidays.
This is the result of immense publicity that the Stone Lights Project received abroad
and especially in the EU countries. In that sense this specialized model of tourist offer
will be properly valorised by publicity only in the years to come.
Tourist market has become very demanding and has opened possibility to
comparative advantages, as opposed to the competitive advantages of the national
tourism.8 Such course of events offers an opportunity to small tourist countries on the
condition that they ensure the controlled usage of their natural resources, especially in
the destinations with special ambience value. In spite of the current satisfactory state
of preservation of natural resources in the Croatian coastal area, we are confronted
with some large interventions that might determine the quality of environment in the
long run with irretrievable consequences. The modern principles of cause and
prevention are the basic principles on which the conservation of the environment must
lie. By applying these principles in practice, some specialized types of ecotourism
may be developed at the expense of mass tourism. From this point of view, the
impediments can become the potential, which can be well used if given a scientific
approach. If not, we will have to assume our share of responsibility for inappropriate
and uncontrolled devastation of natural resources.
3. MARKETING STRATEGIES FOR TOURIST DESTINATION WITH
SPECIAL AMBIENCE VALUE
Nowadays, marketing strategies in tourism are changing because of the growth of
global market, as well as the rise of competitiveness. An offer needs to be as original
as it could be.9 These destinations have a special chance with their own possibility to
obtain an extra profit, but their marketing strategies have to be to the national
legislation and consumer behaviour. The marketer needs to understand how tourists
look at these destinations. Roots of differences are in the field of perception, degree of
customer satisfaction and retention, etc.10 Marketing managers do not plan strategies
for the market, but for the exact tourist destination with special ambience value. The
difference between marketing strategy for the market, and a special kind of marketing
strategy for an exact destination could sometimes ruin results on both sides. During
the search for sustainable solutions in the project of Stone Lights, practice has shown
that establishment of a remodelling conception requires a sound knowledge of
causalities of tourist perception of the destination with special ambience value. It is
recommended to adapt the main strategies through tactics and to pay special attention
to destination's strengths and weaknesses.11 In the example of the Stone Lights Project
the estimated weaknesses and strengths are:
Chaffey,D.,Mayer, R., Johnston, K., Ellis Chadwick, F.: Internet Marketing – Strategy,
Implementation and Practice, Prentice Hall, New Jersey 2003.
9
Peter, J.P., Donnelly, J.H.: Marketing Management: Knowledge and Skills, Irwin 7th ed, Burr
Ridge 2004.
10
Aaker, D.: Strategic Market Management, John Wiley & Sons, Inc. New York 2001.
11
Jobber, D.: Principles and Practice of Marketing, McGraw Hill, 3rd ed, London 2001.
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Strengths:
1. The project allows valorisation of the unique archipelago in the East Adriatic.
2. The lighthouses are valuable as cultural-historical heritage.
2. Most of the lighthouses are situated in the tourist zone.
3. It is possible to organize regular transfers.
4. Most destinations are within easy reach of the EU market.
Weaknesses:
1. Unbalanced tourist infrastructure in the lighthouses location.
2. The project does not have appropriate support.
3. Inadequate marketing profile of the national tourist offer.
4. Specific hydrometeorology conditions in the areas where the lighthouses are
located.
In terms of the mentioned strengths and weaknesses we may approach to remodelling
of the marketing strategy. The possibility of emphasizing of certain strengths is a
guideline to a higher degree of focusing on a concrete lighthouse as tourist
destination. Solution to certain weaknesses may be in development of additional
services, but this will result in rising prices of accommodation on some lighthouses.
Contribution and significance of this project in the international publicity is evident
despite the indifference of Croatian tourist community, and in that sense it is possible
to confirm the hypotheses set in this work.
3.1. Research
Table 1: Survey based on a random sample in the period 2004 – 2007
NATIONALITY
A / B
C
D
E
F
G
Italians
50 / 48
4, 8
4,3
+
3, 6
yes (98%)
yes (50%)
Germans
44 / 40
4, 2
4,8
+
4, 2
yes (95 %)
no (80%)
Austrians
22 / 20
4, 6
4,8
+
4, 6
yes (95%)
yes (60%)
Slovenes
12 / 12
4, 8
4,8
+
4, 6
yes (1 00%)
no (75%)
9/ 3
5, 0
5,0
0
5,0
yes (33%)
no (100%)
Hungarians
H
Source: Surveys and interviews conducted by e-mail, documentation Plovput d.o.o.
Split, and adriatica.net d.o.o. Zagreb
Explanation:
A- Inquiry
B - Paid and stayed
C - Perception of a vacation on the lighthouse (1 – 5)
D - Satisfaction after the vacation (1 – 5)
E - Price in accordance with expectations (low (+); in accordance (0); high
(-)
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F- Quality of apartment furnishing, organization and quality of transfer
and
accommodation on the lighthouse (1 – 5)
G - Would you stay at the lighthouse again?
H - If you hadn’t reserved a vacation on the lighthouse would you still
have spent your vacation in Croatia?
The sample was chosen according to the percentage of guests from each country. In
the sample, one unit is represented by a couple (a man and a woman, with or without
children). With guests from Italy the prevailing age group is 30-34, with Germans it is
38-42, with Austrians 46-50, with Slovenes 38-42, and finally with Hungarians 34-38.
From the interviews by e-mail, it was found out that Hungarians are reluctant to take
another vacation on the lighthouse, regardless of their good impressions, mostly due
to their lower standards of living in comparison to the other observed national groups.
Analysis of the data collected by interviewing (e-mail) interested potential guests who
in the end had not made an arrangement, has shown that the main reasons for
cancelling are:
 Impossibility to make a reservation in the desired period and location (all
Italians, Germans and Austrians)
 Dependable transfer costs to the lighthouse (all Hungarians).
All Slovenes from the observed sample had booked a vacation on the lighthouse even
changing the time of their stay if the there was no vacancy in the desired part of the
season.
Furthermore, an interesting bit of data is that almost 80% of the interviewees had not
been able to get a reservation on their lighthouse of choice at the desired date, so they
accepted the alternatives. Reservations also point to the fact that guests (except the
Slovenes) did not accept any options on the desired lighthouse outside the focused
part of the season, even with lower pre-seasonal and post-seasonal prices. In the end,
they would accept a vacation on an alternative lighthouse but within the same date
frame.
The analysis also shows that the interested tourists’ perception of the vacation on the
lighthouse is very affirmative. Detailed written information and photographs on the
web sites of the tourist agencies were sufficient enough to provoke interest and to
encourage potential guests to book a vacation on a lighthouse.
Satisfaction with the vacation was very close to the expected with Slovenes and
Hungarians. Satisfaction was above the expected with Germans and Austrians. It was
a little below expectations with Italians. Field experience, however, shows that only
Italians in comparison to the guests of other nationalities have special requests (which
are not included in the offer). They also show the least interest in optional, paid offers
(buying fresh fish from the lighthouse keeper, a tour of the island aquarium, etc.)
Italians, Germans, Austrians and Slovenes think that the prices in comparison to the
attractiveness of the vacation are relatively low. Hungarians think that the prices are
just right.
Rating of the satisfaction with the furnishing of the apartments and with the quality of
the organization of the transfer and accommodation on the lighthouse is lowest with
the Italians (3, 6); despite the fact they have been warned that the transfer to the
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lighthouse depends on the weather conditions. When questioned whether they would
spend another vacation on the lighthouses the majority of affirmative answers were
obtained by Slovenes 100%, Italians 98%, Germans and Austrians 95%. A somewhat
smaller percentage of affirmative answers coming from the Hungarians (33%) are a
result of collision of their desires and wishes with their modest lifestyle and living
standards.
Indicative results are that 50% of guests from Italy did not choose to stay at the
lighthouses because of the proximity of Croatia to Italy, but because of the prospect of
an adventurous vacation. They would not have chosen Croatia as their destination had
they not booked a stay at the lighthouses. 80% of the German guests would have most
certainly not spent their vacation in Croatia had it not been for the lighthouses. 60% of
guests from Austria would come to Croatia regardless of any arrangements for the
lighthouses. 75% of Slovenes would not choose Croatia as their vacation location if
they did not reserve accommodation on a lighthouse, but would vacation on some
other unusual location. All of the guests from Hungary that were on a lighthouse
would otherwise have not come to Croatia. The results of this survey clearly show the
importance of the tourist valorisation of the lighthouses in the national tourist
offerings of the Republic of Croatia, and confirm that the lighthouses on the Adriatic
Sea are locations with special ambience value. Satisfaction of the guests that have
been interviewed shows that the chosen organization model of the tourist valorisation
of the lighthouses corresponds to the perception of the interested tourists. Special
rules of behaviour do not pose a problem to them, but only to some of the
representatives of the Croatian Tourist Community. Furthermore, it has been shown
that the acceptance of the special rules of behaviour enhances their interest giving the
lighthouse vacation a special adventurous dimension.
In spite of the ascetic decoration and furnishing of the tourist apartments on the
lighthouses the prices of accommodation are lower than expected, considering the
specific location. This only shows that it would be suitable to develop the pricing
policy by reducing the total number of guests and offering a better service but at a
higher price, some extra services included in the price and an optional transfer (e.g. by
a helicopter) especially in locations (e.g. Palagruža and Sušac) where the problem of
transfer may occur due to weather conditions. The reduced number of guests on the
lighthouses would also simplify and cheapen water supply (water-carrying ships) and
would also reduce the costs of waste water disposal.
3.2. Type of marketing strategy modelling for the Stone Light Project
The research preceding the modelling of the final marketing strategy for the Stone
Lights Project involved the following methods:
 Causal analysis
 Functional analysis
 Intuition
 Synthesis
 Incomplete and causal induction
 Observation
 Experiments
 Survey.
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The methods were used in accordance with their efficiency in different stages of the
project. In the stage of project development prior to its commercialization, the
management of Plovput (whose basic activity is not tourism) provided a minimal
budget and a term of several months for scouting exploration and selection of the first
lighthouses to be included in the project.
In the stage of the initial three years of project commercialization we used the
methods of incomplete and causal induction, observation and intuition. After the third
year we used causal analysis, functional analysis, synthesis and experiment. After the
fifth year of project commercialization we used causal analysis, synthesis, observation
and survey.
The methodological approach to the project development management and its
commercialization also defined the modelling of its final marketing strategy. Within
the marketing mix platform the product (service) and distribution are the basis for
differentiation, publicity is the basis for promotion, while the price is the generator for
the future development of the project. In these terms the final marketing strategy
model of the Stone Lights Project is presented in the following chart.
Figure 1: Stone Lights Project Marketing Strategy
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PROJECT
MARKETING
STRATEGY
Project Profit Projections
1. Product (service) as
basis of pricing strategy,
promotion and
distribution model
2. Price based on offer
differentiation
3. Promotion by publicity
4. Distribution (sale of
accommodation) by
specialized online
agencies
Specific quality of a
location
Current primary and
secondary data
Difference of marginal
cost of a location in terms
of the Plovput basic
activity and tourist
valorization
Projections based on
performed financial
analyses and Project
goals
Source: N.Šerić, Plovput documents 2007.
The specific quality and uniqueness of lighthouses as a tourist destination defines the
elements of the final pricing strategy which is remodelled in the course of
commercialization. The specific context of tourist accommodation on the lighthouses
also assumed the targeted distribution (sale) model – through specialized online
tourist agencies. This allowed good communication with the target clients by use of
multimedia information bases.
The final pricing strategy, which is one of the bases of the presented marketing
strategy, is modelled on all the specific qualities and distinction of tourist
accommodation offer on the lighthouses.
The distinction of the Project strategy is also obvious from the pricing strategy that is
a synergistic expression of the modern and traditional approach to this matter. The
platforms for the final pricing strategy of the Project are:
12





Marginal-cost pricing
Dynamic pricing
Premium pricing
Contribution margin-based pricing
Absorption pricing
In terms of each location each pricing strategy is weighted from 0.00 to 3.00. The
weight of 0.00 assumes that the pricing strategy element is not relevant for the
concrete location. The weight 3.00 states that the pricing strategy element is of
particular significance for the concrete location. The weights are eventually summed
and applied on the prices calculated according to the Cost-plus pricing strategy.
Figure 2: Pricing Strategy of Stone Lights Project
STONE
LIGHTS
PRICING
STRATEGY
1. Premium pricing
- Exceptional
reputation
- Exceptional
distinction
- Exceptional
historical value
2. Dynamic pricing
- Dependent on
each lighthouse as a
destination
3. Absorption
pricing
- All costs are
covered
4. Contribution
margin-based
pricing
- Relationship
between price and
the number of
apartments (beds)
5. Marginal cost
pricing
- For each
lighthouse with
more than one
apartment
Source: N.Šerić, Plovput documents 2007.
4. CONCLUSION
So far, experience with the Stone Lights Project and the research made imply that the
lighthouse holiday is recognized in the global tourist market as an exclusive tourist
service. The increased demand for it is now exceeding the available accommodation
capacities. The strict rules of conduct for the guests during their stay at a lighthouse
additionally incite interest. The rules are determined in terms of an adequate
management model to operate lighthouses as destinations with special ambience
value. Sensitivity of all resources that make the destination special presupposes
systematic management. Due to the limited accommodation capacities and evidently
higher costs of current maintenance and servicing of tourist suites on the lighthouse
the marketing strategy used must necessarily affect management and marketing
strategy in practice.
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Consequently, the elaboration of the marketing strategy for the destination with
special ambience value presupposes a complex methodological approach. The
research done for that purpose should not be limited by low budgeting or short
implementation periods. Otherwise, like in this case, it is necessary to continue
research after commencing commercialization to optimally adapt the initially
established strategy to the future development of the project. The models presented in
this work may be a useful starting point for elaboration of similar marketing strategy
projects in tourist destinations with special ambience value.
Further development of the full potential of the Croatian Adriatic region can be
ensured only by bearing in mind the fact that Croatia is a maritime country and that
the respective consequences result from this fact. Plovput believes that much can be
done in this direction by employing its own resources and in cooperation with other
research institutions in Croatia and other Mediterranean countries. Further
implementation of a complex investment project, such as the Stone Lights, requires
scientific planning of all activities and especially those related to environmental
concerns which can otherwise have hazardous effects in the future. The main
objective of such planning is either to achieve a solution or at least to attempt to solve
the complexity of the co-existence between man and environment. Particularly in the
specific areas of remote small islands and capes along the Adriatic coast belt where
the lighthouses are situated. Further development of the Project, which makes it
necessary to educate each tourist vacationing at one of the lighthouses, can lead to an
improved awareness of the significance of the continuous search for innovative
solutions for improving marine environment.
The research conducted on the random pattern of lighthouse guests and potential
guests indicates that they experience lighthouse holidays as something special and
specific. Research of their attitudes after the vacation indicates that the price is no
problem. Promotion should, as it has been so far, primarily be directed to reinforcing
of special image of a concrete lighthouse. The matter that should be paid special
attention is the transfer of guests to some of the lighthouses. Besides those easily
accessible on the mainland or on larger islands, there are lighthouses situated on
remote islands, isles and rocks. To some of these destinations the usual transfer by
boat is slow and sometimes deemed unsafe. In any case, dependence of tourist
transfer on hydrometeorology conditions is the limitation that should be resolved.
Since these locations have possibilities for helicopter landing, arranging heliports and
introducing the possibility of such a transfer into the offer would raise its
attractiveness. Most importantly, such an option would be chosen by potential guests
who could not even think about the lighthouse holidays because they would not trust
transfer by a boat in bad hydrometeorology conditions. We arrived at this conclusion
by interviewing the regular guests in the easily accessible lighthouses on the mainland
and larger islands that can be reached by regular ferryboat lines who did not dare to
choose any of the remote lighthouses. These are the guests who are not sensitive to
the pricing strategy because they consider the lighthouse vacation inexpensive.
Our experience and research carried out so far define the guidelines of the future
conduct. These stone lights, the lighthouses, today shine with a light that will be
intensified at new locations along the Adriatic coast and off-shore. They will be there
for future generations, telling them stories about the past life on the lighthouses and
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will serve as a sustainable model for Croatian tourism. The buildings themselves will
remain as cultural monuments reminding all of ancient times.
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Extended abstract:
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The potential of tourist valorisation of destinations with a special ambience value
could be subject to a variety of risks. These destinations are a prerequisite for a
substantial growth of tourism and for a sustainable future of the national tourist offer,
and represent an important economic value for the state owner. However, tourist
valorisation of such destinations could go out of control and devastation is possible.
Being an important national asset, Croatia's lighthouses as delicate and valuable
localities require an original marketing strategy.
The global success of tourism on Croatian lighthouses is a result of an original
marketing strategy. The project dealing with this issue may be useful to define a
methodology of marketing strategies: how to protect and preserve lighthouses and
landscape including the natural phenomena, how to protect the sea and the land, and
how to find acceptable models of tourist accommodation with low investments and
high profits.
By the end of the 1999 Plovput (Croatia's state company for navigation safety)
initiated the Stone Lights in order to find a way to stop the deterioration of buildings
which were no longer used for their original purpose (as residences for the keepers
and their families before automation). The Project aimed to find an acceptable way to
ensure re-payment of the loans obtained for the repair, maintenance expenses and
other accompanying costs for the upkeep of the lighthouses. The surplus would be reinvested so that in the future all the forty eight lighthouses along the Croatian coast of
the Adriatic Sea could be revitalized and newly equipped and additional funds for the
permanent maintenance of the lighthouses would be ensured. The vital feature of the
Stone Lights Project is reflected in a sustainable model of establishing rules of
conduct for the guests in tourist suites in the lighthouses. This segment of the Project
emphasizes the importance of the high ecological standards which must be respected.
Thanks to the original environmental requirements this Project was approved by the
Croatian Ministry of Environmental Protection and Physical Planning which also gave
it a special award in the Tourism and Environment category in 2001. In such case
tourism on lighthouses represents an original example of destination management and
of a special marketing strategy.
The research of this project has been done on test bedding:
 The effective tourist valorisation of destinations with special ambience value
implies an original market strategy;
 The profit in tourist projects that are based on destinations with special
ambience value depends on the adequate application of marketing strategy and
resource management.
 Including such destinations in the national tourist offer has positive effects on
the global market.
During researching, some of the hypotheses were:
 Tourist valorisation of lighthouses demands an original marketing strategy.
 Profit margins in such a project depend on the marketing strategy and
destination management.
 Enrichment of the Croatian tourist offer by lighthouses makes an interesting
part of the national tourist marketing strategy.
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Methodological approach to the theoretical organization of the project determined the
marketing strategy modelling. The product (service) and distribution were the basis of
differentiation, publicity was the basis of promotion, and the price was the generator
of project continuation. The particularity of a lighthouse as tourist destination also
defined the factors of the pricing strategy.
Marketing strategy for the tourist destination with a special ambience value needs to
identify its uniqueness on the tourist market. Marketing strategies evolve with the
evolution of the contemporary market and have to be gradually adapted to the global
demand. Our research has shown that the marketing strategy for the Project will be
finally shaped through the visitors’ evaluation of such destinations.
The Stone Lights Project may be the platform for survival in the tourist market on the
global level. Its final model of destination management and its marketing strategy
may be the formula for the right tourist valorisation of destinations with a special
ambience value.
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