Sunday, February 28, 2010

The New Communications Reality

Hawaii just had a tsunami scare. The massive earthquake in Chile created a potentially devastating tsunami. Fortunately, the tsunami, when it arrived, was not destructive. The event pointed out some other fundamental issues, however.

As the islands were preparing for a potential disaster, I checked some websites to see what they were saying about the tsunami threat. ETurboNews proactively sent out an email blast to its list of travel professionals early in the event, advising them of links and offering an email address that they could use to get immediate answers. Hawaii Visitors and Convention Bureau put up a box on its regular marketing site with an update on the event. The Hawaii Tourism Authority site never got around to acknowledging the event. So if you wanted to find out about upcoming meetings ... or their latest research, that would be on the site. But nothing to reassure travel agents, worried relatives, or others about a potentially catastrophic event.

The new reality is that people turn to new media for information. They go to websites. They check out Twitter. They still use the old media, but increasingly the new media are important elements of the communications mix. If you're not there, you're not communicating fully.

Monday, February 22, 2010

Seeds of Destruction

If you're in the business of marketing destinations, Stanley Plog's Leisure Marketing is a must read. There's a particularly poignant chapter about how destinations decline and fall. The irony is that the "seeds of destruction," as he describes them, are sown in the growth stage of the product life cycle. Those who don't manage the brand properly in the growth stage often find themselves rolling into a decline and, ultimately, a death spiral. Here's the sequence:

The destination is discovered and tourism grows. Everybody's happy. With growth comes an increase in land values. With higher land costs, developments become ever more dense to get "highest and best use" out of the property. With density, the destination gradually loses its charm and the very best visitors are lured away by more attractive destinations. To compensate, hotels and transportation companies increase their discounting ... which brings a discount oriented visitor (the "cheap charlies" of the world). Lower revenues mean less money available for investment and renovation, so the product suffers, creating a downward spiral.

Innovation, reinvestment, and attention to the brand are the antidotes.

Waikiki is now dealing with a crop of problems that grew from the "seeds of destruction" that were sown in the go-go years. Here's hoping that we've got the will to bring back the visitors that contribute to a healthy brand!

Saturday, February 20, 2010

The Little Details that Make Great Brands


When I talk about brands, I often tell a story about Disney that (I hope) illustrates the power of attention to detail in creating a strong brand. The story goes back to the time when I was national chairman of the American Marketing Association. The AMA was having a meeting in a Disney hotel in Orlando and Disney hosted a cocktail reception for our group (so they could make a sales pitch for future meetings bookings). As part of the reception they had Mickey Mouse make an appearance for photo opportunities with the guests. Three people came into the room. Mickey Mouse, a photographer, and a third person. I asked what the third person was doing there. His job was to hold your cocktail when your picture was being taken with Mickey - because the Disney brand doesn't associate its characters with alcohol. Small little detail ... that means so much when building a big and powerful brand.

Sunday, February 14, 2010

The Softer Side of Brand Hawaii

Hawaii as a visitor destination is at an important crossroads. There are two proposals, in particular, that can change the character of Brand Hawaii forever: rail and gaming.

I am certain that a great majority of Hawaii residents are in favor of rail. Traffic is a mess. We need to become greener with our transportation. But HOW we develop rail is going to affect the character of this place. The current proposal to build a system that is entirely elevated will result in viaducts and stations that are as much as thirty or forty feet high. If we put that kind of system in front of the buildings and communities that create the special ambiance that define Hawaii as a special place, we will have changed our character. The planners argue for the proposed system on the basis of improved ridership and safety. Those points are debatable. What's not debatable is the visual and aesthetic impact it would have on Hawaii. I would argue that, in a place like Hawaii, those softer elements of a plan are equally - or more - important. Alternatives such as an "at grade" system can provide a transportation solution that has less impact on our character.

Then there's gambling. Or "gaming" if you want to sound less sinister. This issue comes up whenever there's a budget crunch in the belief that it will produce the revenues that will save our budgets. That case hasn't been proven. And, like elevated rail, it can have a profound effect on our character ... and the Hawaii tourism brand. One needs to be careful about making decisions that have long term impacts based upon short term conditions. Putting the genie back in the bottle is impossible. If we want the genie out, we'd better be absolutely certain that she works for good in the long term ... and that there are no horrible "unforeseen circumstances." Imagine casinos flashing neon "Aloha Slots" signs. It could happen. What does that do for the character of the Hawaii brand? What does it say about aloha?

Then there are the social aspects of gambling. I had a speaker in one of my classes that had managed a resort in Lake Tahoe ... and told the story of the hotels/casinos issuing $25 in chips in pay envelopes as a "bonus" for their employees. You can imagine that the employees ended up putting more than $25 on the table. (And he went on to say that spouses were calling him asking that pay be sent directly to them rather than the employee to keep them from gambling). I'm not saying things like that will happen .... but things like that COULD happen. I'm even more concerned about the changes to the ambiance of the guest experience in Hawaii. We have something here that's pretty mellow (even in Waikiki) which could be changed forever with a casino.

Friday, February 12, 2010

Planning and Performance

I'm back to update my blog after a long hiatus. I guess nothing really moved me to make a blog entry ... until last week. I received a notice from a public agency that they had completed a long overdue strategic plan. In case you haven't noticed, there's a recession raging out there - and I thought every organization, including government agencies, would be motivated to get a move on. Well, I thought, at least it was done. Then I read it. Not a lot of depth, but directionally right on. Short term: need to react to the economic crisis with hard hitting marketing programs. Longer term: get back to more traditional branding and positioning. Sounds right.

Except that on the very same day I got the plan, I saw some of the marketing programs that the plan ostensibly is driving. My reaction: huh? It's like nobody read the plan. No hard hitting offers or message. More fluff than a Northeastern snowstorm.

I guess no one figured out that there's supposed to be a connection between what's in a plan ... and what hits the streets. At the end of the day, marketing will be judged on the effectiveness of programs, not the elegance of plans.