Internation a l

J o u r n a l

o f

M a n a g e m e n t

C a s e s

MANAGEMENT oF THE NATIoNAL ToURISTIC BRAND: THE RoLE oF THE BRANDING STRATEGY IN CRoATIA
NeveN eri UNIVERSITY oF SPLIT, CRoATIA

Abstract Management of the national touristic brand is a new weapon on the global market. Each national touristic brand need to be more differentiated. There are a growing number of national touristic offers finding the way how to manage by national brand. Applying of the branding concepts to the touristic business could be different. But few of them treat in a wider sense branding strategy toward the brand management. Choosing a right branding strategy for the brand management is paramount for achieving a substantial growth that ensures a steady future development of the national income of tourism. The work deals with issues that define how branding strategy can protect and preserve the integrity of the brand through next premises: The effective evaluation of the brand is implied by the chosen branding strategy; The success of the brand depends on the application of the branding strategy. Hypothesis: An efficient branding strategy for the brand management in tourism is primarily influenced by the perception of demand. It is very important to see which branding strategy could be the right one for management of the exact brand, and contributed to the newly created value of the national touristic brand. Key words: tourism. brand, management, strategy,

Introduction
Classic approaches and branding strategies have been constantly changing and improving during years. The recession on the global market and significantly changed conditions in tourism need a


different approach to the brand, especially to the strategic platform of tourism. Management of the national tourist brand is one way of differentiation. Marketing activities in tourism practise grow from business function to the key connection of the brand management. organizational systems of value depend on tourist market behaviours today. Consequences are obvious even in the field of generating the market needs. Suitable way of shaping the brand strategy in tourism is the precondition for wished market positioning of the brand. The right way of the brand management in tourism could be the way of survival on the global tourism market. Suitable practical model of brand strategies is a presumption. Methodological approach to this issue in the recession time could be very useful. Today happenings between tourist brands on the market are not as they seem. The essence in the brand management is in the fact that nothing in the beginning is as the management expected to be. Previous projections and readiness for some possible problems with new brand are in the postulates of modern brand strategies in practice. Brand strategies should be primarily focused on possible future growth of tourist visit, as well as on operational models of managing tactical market operations in relation with the competition and with all important levels of public on the global tourist market. By doing that, marketing activities grow into especially responsible activities whose goal is to sustain the attraction of the national tourist brand on the global market as longer as possible. Shaping of innovative brand strategies means a good quality informational system about all development and business possibilities of the brand. That way, brand management is placed on the unique position between the market environment and the brand. The brand strategy in tourism often includes an interactive role in generating brands business

I n t e r n a t i o n a l

J o u r n a l

o f

M a n a g e m e n t

C a s es

plan together with many coordinative activities. That kind of approach to the management of the brand represents some sort of research challenge because with its practical knowledge it can question certain theoretical postulates. By starting to think that modelling of suitable brand strategies, can give a possible guarantee for the brand survival on the market, it is possible to exactly define a scientific and practical goals of this paper. The research in that sense was directed towards forming concrete authors experiences with specialised tourist product (Stone light project-lighthouse tourism). Toward that experience sustainable national brand strategy in tourism it should be primarily adjusted to the nature of the brand. According to that, the model of shaping the brand strategy is primarily in the function of product management.

Management of the national tourist brand

The management of the national tourist brand could be efficient if it is adjusted to the global market nowadays in all aspects of variables, time and environment. Through its tactics, it should offer some suitable guarantees for the achieving the strategic mission of the national tourist brand. In the reality it is all about two processes in the same time. With one process, the brand is expanding through concrete activities towards appointed goal of market mission, and with another process it is acted upon the first one. This second process is happening as constant dialectic of market environment. It wouldnt be appropriate to expect that set up brand strategy, by which are appointed activities carried out, is generally accepted rule. No matter how it has complicated in practice, every brand strategy represents static model in the dynamic field of market environment. Happenings in the environment should be systematically followed and analysed, so that the brand strategy could be adjusted to them in the space and time. By this approach, national tourist brand strategy which is supposed to be a static model becomes an interactive dynamic model. It can be then given in its final form only for the needs of research the market cases. There are many tourist market variables which determine different resolving of business collisions. Accepting the global tourist market as system which keeps changing all the time allows only systematic acknowledging of variable validities which have been happening. The tourist market has been lived in every moment of the past, present, but also in the future times.
7

National tourist brands have become the main communicators in the global tourist market. Strong national tourist brand create strong thoughts and emotions in the tourists awareness. Management of the national tourist brand is the process of creating, planning and communicating the creation of the brand. The identity of a tourist brand is the main concept of tourist service. Brand image is a kind of reputation of a tourist service in the guests perception. The right brand strategy interacts of the brand identity. It is suggested evaluation of the management of the brand from the standpoint of the marketing strategy, which is the key of right brand management nowadays. Why has branding become increasingly important? Brand management is a real marketing weapon for the global market. Strong national tourist brand will have less difficulty even in economic recession on the global market. The main premise of the brands management in tourism is creating added value for guests. For that reason the right national brand strategy in tourism has become the biggest intangible asset. Guests evaluate tourist service, choose them and like or dislike them. The fundamental task of the management of the national tourist brand is to convince guests what to think about the offer. The greatest concern for the national tourist brand is to attract as many as possible potential guests, and to secure the best possible image of the national tourist offer. The difference between branding and brand management is in the structure of the brand strategy. An immediate alignment of the right brand strategy in tourism is prerequisite. This can be defined by the increase of the national income of tourism and growth of global market share. An efficient brand strategy in tourism is primarily influenced by the tourist service perception of guests. Important difference between branding and brand management in tourism through the strategy is that the tourist brand may be reduced to only one or few segments. This is very complicated in the case of strategy for the brand management. The brand management through the brand strategy in tourism is more complex, there are more influences and more possibility for the success. The process of branding in tourism is not simple, and it is quite long, but the brand management through the brand strategy is the result of the need to establish the strong image of the brand and creating attracts-recognizable features and forms in national tourist offer. Brand strategy in tourism is not a promotional campaign. Results become visible during years. Branding is a prolonged part of marketing strategy in tourism.

Internation a l

J o u r n a l

o f

M a n a g e m e n t

C a s e s

Brand strategy in such process has to teach how to listen to the guest, how to recognize guests wishes and needs, and how to become well known on the global tourist market. Brand management through the strategy is an addition to the process. It has to secure loyalty of guests, and recognition of national tourist offer on the global market. Tourist brand has a certain truth. The truth is the core that accumulates all marketing and branding efforts. All such efforts need to be the prerequisite for the right national tourist brand strategy. Basic functions of branding is communicating, creating the tourists perception and the brand value. The national tourist brand performs the role of communicator on the global market. Brand identity means communicating desired image and vision of the tourist offer. From the aspect of marketing strategy in the brand management, the role of brand as communicator is the process or the manner of managing the brand at construction of brand identity based on recognizable features, uniqueness and desired identity of the national tourist offer. Right marketing strategy will make the overall tourist service identity measurable, tangible and communicating. As subjects of tourist perception, brand actually affect guests feelings, their emotions and requests. For this reason, the image of the tourist brand is defined as images, notions or feelings the guest has acquired or keeps acquiring about a specific tourist product. The identity of the national tourist brand through the brand strategy is something would want to think about national tourist offer. Identity is something for the communication, and perception or images are impressions the guests have acquired about brand. From such aspect identity and brand image are quite different. From the perspective of branding perception and considerations of perception are focused on the brand. From the perspective of the brand strategy considerations of perception are focused on the added value of the brand. Brands attempt to construct personality and uniqueness, especially in tourism. In such a manner, it creates and enters into mutual relation with guests. Such relations are particularly related to guests attempts to construct their own image through using a particular image. Consequently, guests and the brand realize a certain interdependent relationship. Brand strategy requires interaction with elements of the marketing mix along with interaction and creation of relations with guests. Valuation of the national tourist brand could be defined as the calculation of future incomes from tourism over a particular period of time lifespan
8

converted to present value. Value of each brand, more or less tangible, may be assessed. Brand value equals the added value over a particular period of time. From the perspective of brand strategy it is not possible to apply such an exact approach. The value of the tourist brand strategy should reflect on the development of the brand, a number of satisfied guests, and strengthening of the national tourist brand. Brand strategy should initially increase the value of the brand assets over a particular period of time. Methodology of valorisation of the brand strategy is based on the premise that brands are actually long-term assets and that they will generate future income. The strong connection between guests and the national tourist brand through the brand strategy, the more probable than the longer period of generating future income. Brand valuation through the national brand strategy in tourism can be performed using some of the following methods: Method of calculation of net present value the method that refers to presupposed life of tourist brand through discounting net cash flow and discount factor. It is based on the estimate of future income and net profit from tourism and on their conversion to present value using a chosen discount factor.

NCV = (Annual income from tourist brand n annual expense from tourist brand n)/(1+p/100) - (Initially invested amount in the development of tourist brand) Tourist brand is successful and cost-efficient and it generates newly created value if NCV > 0, it borders cost-efficiency when NCV = 0, and it is unprofitable unsuccessful when NCV<0 Book value versus market value - method that tries to provide brand valuation by subtracting book value from tourist market value. Book value comprises the value of overall assets minus national liabilities and intangible assets. Market value in tourism could be estimated based on national capitalization of national tourist offer. TBv =M (market value) B ( book value) TBv = tourist brand value, M stands for market value and B denotes book value.

I n t e r n a t i o n a l

J o u r n a l

o f

M a n a g e m e n t

C a s es

Premium price for some specialised tourist brands, it is possible to provide valuation using this method. It is calculated based on the premise that increased value of the brand is actually the difference between its price and the average price of similar brand multiplied by the number of guests over a particular lifespanperiod. TBv = (P brand N generic)xS sales TBv=tourist brand value, P is the price of branded tourist product, N is average price of similar nonbranded tourist products, and S is average number of tourist nights in the past year. Present value of performed investments and estimate of necessary investments in promotion of the national tourist brand the method based on the estimate and calculation of performed investments in overall marketing efforts geared at achieving the present level of national tourist offer recognition. When using these methods, it must be aware of the risk and the role they have in assessing future income and market trends considering the fact that they are predominantly based on projections and estimates of future trends of particular tourist market turn over. Assessing the value and influence of a national tourist brand on the country assets, it is always advisable to take into consideration several methods, so that their combination will produce middle indicators. The influence of brand management and the brand strategy is much more complex than with brand and branding where incomes are clearly defined. Brand strategy comprises a much wider range of tactics, so it cannot be considered in the majority of the above listed methods.

The role of the branding strategy in Croatias tourist offer

After a series of mergers of national tourist companies in the 10s and 2000s, tourist brands started to be perceived as a part of national tourist offer assets that have to be maintained and invested in. This concept later led to the creation of the notion of Croatias national tourist brand equity. From the perspective of financiers and accountants, brand equity is exclusively considered as financial asset. From the marketing standpoint, brand equity is considered an indicator of future


business activities in tourism through brand loyalty, distribution and recognition of the brand in the following years. Such standpoints have produced a need to develop brand management that will manage identity of Croatias national tourist offer. National tourist brand contribute to the creation of added value for the guest. For the guest, the brand acts as risk reducer in terms of quality and other values. The more the tourist trust a brand and the more loyal they are, it reduces the risk of avoiding in terms of all features of concrete tourist service, because they know exactly what they get from a brand. Successful tourist brands have loyal customers, guaranteed sales and foreseeable growth, which directly reflects on overall income, its book and market value. Regardless of the quality of the tourist brand in Croatia each subject must inevitably, in time, cope with a certain crisis. The loss of tourist market share, coupled with a lack of different tourist product competitiveness, can most certainly ruin a national tourist brand. Each crisis is quite unique with different consequences. The national strategy platform in Croatia can have a profound effect and influence the future existence of the national tourist brand. It is a necessity for the brand management to use certain brand strategy to have concrete measures at its disposal, especially in crisis. The central concern of the Croatias tourist brand strategy is wide offer of specialised branded tourist products. The success of all the tasks done by brand management can be judged by the level of market success the tourist brand makes. Certainly, there are certain branded tourist products in Croatia that are more likely to succeed on the market. These national tourist brands are usually supported by capital investments. Their development cycle is longer than usual, as it is their life cycle. The interaction between the brand management and the brand strategy in Croatias tourism offer is an absolute prerequisite for securing the share on the global tourist market. Potential guests are fully aware of their significance, so they expect the tourist services offer their specific wishes. Guests are loyal only to the tourist brands that fulfil their needs, even in the case of specialised tourist product. Croatias national brand strategy is essentially a platform that directly transfers clear information concerning the market demand to the brand, which needs such information to make relevant business decisions. Nowadays managers must continuously reduce the costs of the tourist product cycles. Also, the design of the tourist product must be continuously modified in order to meet the rigorous expectations

Internation a l

J o u r n a l

o f

M a n a g e m e n t

C a s e s

of the guests. This is also the part of Croatia brand strategy. Summing up the activities in Croatia for the future development of the national brand strategy, it is important: To collect and analyse information on the global tourist market, about concurrent tourist products, brands, and the guests perception; Develop new tactics adapted to the tourist demand; Supporting the national branded tourist products; Focus on wanted positioning of the national tourist brand on the global tourist market. The Croatias brand strategy needs to assume a new role in brand management. Such brand management, beside its regular activities, has to proactively cooperate with branded specialised tourist products. The brand strategy therefore collects information on the global tourist market, systematically adopts it to the model of brand management and launches corrective activities based on the perceived crisis. This definition places the Croatia national brand strategy inside a brand; serving as the crucial interlink that connects tourist brand and guests through added value. The effectiveness of national brand strategy suggests the use of a project method in order to upgrade brand communication. Project method is a programme of reorganization of the managing tactics for the brand. The reorganization implies a stabilization of basic operating tactics. other suggestions are formation of the tactics group, analysis of state/conditions of a brand, a strategic marketing analysis, and the making of a project that deals with the reorganization and revitalization of the brand. Changes could be made in the sector of marketing or on the strategic platform through the brand-market-profitability analysis. Final modification is a change of the brands culture. The process of revitalization encompasses the activities that lead to the revival of the top, national tourist brand, leading to the solid, base growth. Besides the mentioned activities, a formation of the brand management structure, the identification of strategic brand activities, formulation of a new vision of the national tourist brand, the assurance of resources and conditions to implement new tactics for the brand management. This approach focuses sometimes on the brand itself. Because of this, the whole brand strategy, as well as certain specific
10

tactics made for exact brand has to adapt to the expectations of the target audience. This kind of approach is an absolute prerequisite for keeping the occupied brands market share. Although this way could be a strict rule, sometimes the Croatias government did not accept the scientific approach in such case. Even experiences from specialised tourist project (such as The Stone light) have proved itself to be an effective platform for a relevant differentiated branding policy. The Government sometimes adopted certain decisions that conflicted with an exposed way, thinking they would achieve better results on a political platform vs. scientific platform. The results in such cases are devastating for the image of the national tourist brand. The next necessary step is to take action to improve the existing potential of resources. There are still so many chances to strength the Croatias national tourist brand through the right management model.

Conclusion
Management of the national tourist brand is created as a consequence of growing competitiveness on the global tourist market, and a globalisation. Brand strategy represents and comprises all national tourist brand assets. In todays conditions on the global tourist market brand management have become the principal and the most important distinguishing features of particular national tourist product. In Croatia brand strategy in brand management refers to managerial process that endows any given tourist brand with a unique identity and image, presents brand with a possibility of being clearly and positively identified and thus different and recognizable from competitors. Compared to classical branding, the brand strategy in tourism is a process whereby a tourist brand actively creates its identity with the objective of as quality as possible positioning on the global tourist market as desirable offer for guests and for investments. Guests always choose among tourist products with different emotions. The strategic brand strategy in Croatia indicates a direct connection of particular parts of tourist brand and their possible influence in the future period either as fall or increase depending on the success of branding process. The main question of the paper addressed the role of the future branding strategy in Croatia, as well as the interaction between brand and the branding in Croatias tourism. A project approach dealing with the brand problems solving

I n t e r n a t i o n a l

J o u r n a l

o f

M a n a g e m e n t

C a s es

that is universally recognized is now achieved trough the brand strategy offers real possibilities for efficient solutions in branding. Stone Lights project is a fine example of that.

REFERENCES
Aaker, D., (2001), Strategic Market Management, 6th ed., john Wiley & Sons, inc. New york. Brooke, J. (15), More open Latin Borders Mirror and opening of Markets, New York Times, July 4, p.47 Doyle, P. (2002), Marketing Management and Strategy, 3rd edition, Pearson Education Ltd., London Hankison, G., (2004), Relational work on brands: towards a conceptual model of place brands, Henry Stuart Publications, Journal of Vacation marketing, vol. 10, No. 2, 2004, pp 10-121 Hooley, G.J., Sounders, J.A., Piercy, N.F. (2004), Marketing Strategy and Competitive Positioning, 3rd Ed, Prentice Hall, Harlow Kuhn K., Alpert F., (200), Applying Kellers Brand equity model and B2B context-limitations and empirical test, Griffith University eri, N., (2002), Global Marketing in preservation of natural resources in specialized segments of Tourism in Croatia, First European yacht tourism congress, Megagraf , Split eri, N., (2004), Stone lights, stories and legends of the Adriatic lighthouses, places where they were built and of their underwater world Marjan Tisak Split

11

Copyright of International Journal of Management Cases is the property of Access Press UK and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.