1082967278 Promotion Strategy

Promotion Strategyof the Czech Republic in 2004 2010

Compiled by:Czech Tourist Authority CzechTourism

Vinohradsk 46, P.O.Box 32, 120 41 Praha 2Tel.: +420 221 580 111, fax: +420 224 247 516

www.CzechTourism.czwww.CzechTourism.com

www.CzechTourism.com

1. Vision

Our vision is that the Czech Republic will be the destination number one inEurope within the framework of comparable countries in the year 2010.

The comparable countries are understood the ones, which have the conditionsfor tourism objectively comparable with ours, thus they have neither the Alpsnor the Mediterranean Sea. There are 18 such countries in Europe (Germany,Hungary, Poland, Holland, Belgium, Denmark and others).

The next vision of ours is that Prague will be European city destinationnumber three in the year 2010.

We consider only London and Paris the metropolises, which will in the longterm continue to be more required tourist destinations than Prague. We canoutdo other cities (such as Vienna, Amsterdam, Copenhagen, Berlin, Budapestand others).

We are certain that our country, its culture, historic sights and significanttowns objectively represent such an interesting tourist product that the above-mentioned vision is reachable. The only fact, which could preclude our visionfrom its realization, is our insufficient activity and inefficiency.

2. Targets

The basic measurable target is to maximize the revenue from tourism, whichcan be reached in three mutually non-excluding ways:

by higher number of tourists coming to the Czech Republic; by longer stays of tourists in the Czech Republic; by higher expenditures of tourists in the Czech Republic.

The success of reaching the target is measurable by means of a satelliteaccount, statistical methods of the Czech Statistical Institute and the CzechNational Bank and by selective inquiries. With regard to the contemporarypossibilities, mainly the inquiry at the border crossings, proceedingperiodically, will be used during the first years.

3. Theoretical resources for forming the strategy

In order to define the strategy, we first must answer the question: When willpeople decide to visit the Czech Republic?

The answer is: By the time they associate the Czech Republic with thevalues, which correspond with their actual needs.

We have to establish a connection between the Czech Republic and suitablevalues in the minds of people. The established association must be projectedinto all the communication of CzechTourism and other subjects in relation toforeign countries.

People from all over the world see one or more concrete associationsconnected with a certain brand or an object. Such a generally sharedassociation is automatically bound to the given product and people do notspeculate on about its verity. Typical examples are: Mercedes = prestige; Volvo= safety; Porsche = wild drive; Croatia = holiday at the seaside; Nepal = theHimalayas; Kenya = safari.

Such a strong association has not been established for the Czech Republic yet.

The association is to be established because of the following facts:

a. It makes the decision easier and automatic;b. It increases loyalty of the clients and helps to forget occasional mistakes;c. It allows asking a higher price; d. It prevents from competition;e. It makes the development of new services easier;f. The brand replaces the sales clerks.

The factual aim of the new strategy is to build one truly strong associationconnected with the Czech Republic by the year 2010.Also from the marketing point of view, creating only one association is themost advantageous.Today, human brain is glutted with information. It reacts on this reality bydeveloping filters and evolves the ability to connect each product with one

specific association. This is the fact we want to take advantage of at creatingan association with the Czech Republic. The examples in the table document a lot of information, which humanmemory is employed with.

In order to prevent immoderate overload with information, we have to simplifythe communication to one strong association, which the tourists will connectthe Czech Republic with. By simplifying and continual repeating of specificinformation the minds of visitors will develop an automatic association, whichwill subsequently make their decision about visiting our republic easier.

At developing a brand, in this case the Czech Republic, we also take intoconsideration other marketing findings:

a. Perception is more important than realityOne of the examples is the saleability of Coca Cola, although Pepsi Colaalways wins in gustation tests. Despite of that its saleability is constantlylower. Also more people go to the safari in Kenya, although the conditionsare comparable with Tanzania.

b. Lets not search for the success in the product, lets search for it inthe minds of clientsAn association rooted in the mind of a consumer has a bigger influence atdeciding than the reality that the man meets.

For pushing oneself to foreign markets one must select maximum briefnessand simplicity of the formulation.At the same time, this association should not be altered, because humanthinking is very inertial and conservative. Developing an association is a long-time procedure, requiring an intensive impact on potential clients andconsiderable financial means.

4. Factual basis of the strategy

For determining the strategy built on exact information, we use the followingbases: The research on the motivation for the arrivals of tourists to the Czech

Republic and competitive countries (1800 informants from 20 countries,autumn 2002-summer 2003);

The research of the European Travel Commission; Marketing strategies of other countries (mainly Hungary, Poland, Austria,

Spain, Holland and others); Programmes for the travel development of the regions of the Czech

Republic.

II

Promotion Strategy of the Czech Republic in 2004 2010

Information source Number of words

The Ten Commandments 228

The Declaration of Independence 300

One page of MF DNES (Daily) 2 400

Invention Law 8 700

One Issue of MF DNES 43 200

Number of products in TESCO over 8 000

Number of www domains over 100 000

How long would we read a MF DNES? 3,5 hours

The Czech Republic Hungary Austria Croatia

The capital city Stay in open Winter sports Water sportsis the most naturebeautiful in Europe

Many interesting Agro-tourism Mountain tourism, Adventure,castles and chateaus mountain-climbing adrenaline sports

Galleries and Shopping Adventure Night lifemuseums

Many interesting Abreaction Many interesting Boatingsights, which museums and galleriesare worth visiting

Many beautiful Golf Many sports actions Shoppingtowns

Strong motivation factors for a visit

III

The research on the motivation of foreign tourists arrivals to the CzechRepublic orientated among others towards determining the motivation factorsfor a visit of the Czech Republic (other three countries are stated for thecomparison).At developing the marketing strategy, the motivation factors were consideredin a maximum way.

Week motivation factors for a visit

Even objectively good conditions for certain tourist activities do not guaranteethat a foreign tourist considers our republic ideal right for these segments oftourism. The inquiry does not imply that the informants consider the CzechRepublic unfit for agro or cycle-tourism, but they prefer other destinations forthis kind of activities.

If we imagine the countries as persons, how would they be perceived?

What features the personified country does not have?

The factors of apprehending the Czech Republic by foreign tourists assessedin the following order:

These tables show in a simplified way the findings drawn from complicatedstatistical and graphical data.

The research also set our unambiguous competitor from the monitoredcountries Austria, towards which we must definitely form ourselves.

This thesis can be documented on the fact that the tourists visiting the CzechRepublic:

a) are next most interested in visiting Austria, less Croatia and the leastHungary;

b) have the biggest liking for Austria, the least for Hungary;c) from the monitored countries they have the biggest experience with

Austria, less experience with Croatia and the least with Hungary.

Motivation of foreign tourists for visiting the Czech Republic

Admirers of sights and history together with leisure visitors of towns andholiday sportsmen create the biggest part of tourists coming to the CzechRepublic. These are people seeking calm, comfort, pleasant environment andunpretentiousness. This fact forms our strategies. By the year 2010, we wantto attract more tourists right by these attributes of the holiday spent in theCzech Republic.The so-called average tourists represent approximately one third. These arecharacterised by their neutral reason for the visit and therefore the motivationdevices introduced in the strategy can also influence them.

5. Promotion strategy of the Czech Republic in 2004-2010

New promotion strategy of the Czech Republic answers the three fundamentalquestions:

1. What are the basic characteristic features of a holiday in the CzechRepublic?

2. What are the main reasons for a visit of the Czech Republic?3. What are our National products?

Basic features of a holiday in the Czech Republic

Calm and ease are the features most often associated with a holiday in theCzech Republic.

The following features were rejected from various possibilities:a. the features, which are significant for all the destinations;b. the features, which are obvious;c. the features, which are significant for some other destinations;d. the features, which do not have any counterpart.

Among the rejected features (associations) stand:

The strategy defines the basic features of a holiday in the Czech Republic

Comfortable, peaceful, unchallenging, calm, pleasant, get-at-able.


The Czech Republic Hungary Austria CroatiaFriendly Differs, deviates Is concerned about Likes to risk

from the rules the social position

Caring Cold, abstract, Traditional, Bold, fearlessis standoffish conservative

Woman Likes to risk Cold, abstract, Acts youngis stand-offish

Considerate Acts older Respects traditions Enjoys life,and sober amuses oneself

Educated, intelligent Modest Educated, intelligent Differs, deviatesfrom the rules

The Czech Republic Hungary Austria CroatiaBold, fearless Responsible Enjoys life Silent, reticent

for the others amuses oneself

Differs, deviates from Carefully fulfils Tolerant, without Thoughtful, the rules its duties prejudices meditative

Enjoys risking Is concerned about Friendly Is concerned aboutthe social position the social position

Thoughtful, Woman Reliable Traditional,meditative conservative

The Czech Republic Hungary Austria Croatia

Golf Many interesting Learning about Winter sportssports actions culture

Adventure, adrenaline Adventure, Purchasing souvenirs Many sights,sports adrenaline sports worth visiting

Agro-tourism The capital city Water sports The capital cityis one of the most is one of the mostbeautiful ones beautiful ones

Relaxation, recovery Mountain tourism, Shopping Many interesting mountain-climbing castles and chateaus

Cycle-tourism Winter sports Relaxation, Many galleries andrecovery museums

34 %

11 %

33 %

12 %

10 %

Average tourist

Sights and history

Holiday sportsman

Leisure visitor of towns

Amusement and night life

Specific type of tourism Specific sights Specific target group Live, living Cultural Magic, absurd, irrational Real, pure, true, authentic Diversity, variety

Surprising Friendly Cognition Freedom, space Density of sights Efficient utilizing of time Predictable, reliable, secure Safe

Factor of apprehending the country Position of the Czech Republic

History and architecture excellent

Comfort very good

Shopping very good

Relaxation and recovery average

Tourism and cycle-tourism average

Meeting with people and nature average

Summer sports and amusement poor

Nature, adventure and winter sports poor


It excludes such features as spectacular, monumental, shocking, adventurous,grand, sophisticated, demanding or snobbish.

These are the characteristic features specifying the Czech Republic towards itsmain competitors, which are Austria and Germany. These countries are on thecontrary perceived as demanding (both physically and psychically), lesspeaceful with less friendly nature of their inhabitants.

Our aim is that by the year 2010 every European would automaticallyassociate the Czech Republic with CALM and EASE.

Main reasons for visiting the Czech Republic

The main reasons for visiting the Czech Republic are:

a. History and architecture (importance: 55%)(castles and chateaus, historic towns, Prague, culture)

a. Relaxation, nature (importance: 25%)(summer and winter mountains, spas, relaxation)

b. Consumers entertainment (importance: 20%)(shopping, night entertainment, beer, food)

If we combine calm and ease with the main reasons for a visit to our country,we obtain three basic messages of our marketing. We will thus present theCzech Republic in the following way:

a. The Czech Republic is the place, where I will spend a peaceful andcalm stay in magic towns, castles and chateaus.

b. The Czech Republic is the place, where I will spend a peaceful andcalm stay in (green) nature.

c. The Czech Republic is the place, where I will have a calmentertainment.

National products

National products are the products famous all over the world in the sameform. France, having more of such products such as Paris, the Eiffels Tower,the Azure Coast, Brittany, the chateaus on the Loire can be an example.

Today the Czech Republic has only one national product Prague and othertwo places aspire to this position Karlovy Vary and esk Krumlov.

Our aim is that by the year 2010 every European would associate the CzechRepublic not only with our capital city, but also with the following products:

5 places Prague Karlovy Vary esk Krumlov Skaln msta (Rock Towns) including esk rj, esk vcarsko

and Adrpasko-teplick skly (Adrpasko-teplick Rocks) Olomouc

2 temporal products aimed at covering the so-called off-season periods Christmas Spring festivities

Optional trips are to bring the tourists also to other areas in thesurrounding of the 5 main products. These are star departures from theplaces and thus they cover also other tourist attractive places in the givenarea. By preparing a certain number of optional trips from 5 Nationalproducts, we will achieve repeated visit rate of the spot and at the sametime spending a longer time on the territory of our republic. Mainly thefollowing optional trips will be purposefully promoted in order togradually become other National products.

Optional trips Kutn Hora Karltejn Lednice-Valtice Area Krom Marnsk Lzn Beov nad Teplou Tebo

Jindichv Hradec Hlubok nad Vltavou Litomyl

Optional trips in the 2 nd wave demanding still the preparation of the product Pbram Loket Moravsk kras Triangle of the UNESCO sights in Vysoina (Tel, r, Teb)

Use of the geographical position of the Czech RepublicThe Czech Republic is today a part of those trips, which are directed to the territory of Central Europe (Budapest, Vienna, Dresden, Krakow,Bratislava).The tours, which would combine our republic for example withBavaria or Switzerland, practically do not exist. This situation does not haveany logic reason (for example to reach Munich from Prague is much easierthan from Budapest); it is rather the still existing psychological ironcurtain, which is concerned.

Our aim is to break this barrier. Therefore we will promote also the corridorbetween Munich and Prague, by means of which we will attract a maximumnumber of tourists visiting Bavaria also to the territory of the Czech Republic.

How will we push the National Products?

1. The promotion will first aim at Christmas, optional trips around Prague(Karltejn, Kutn Hora) and the Munich Prague corridor. It will proceedmainly by the medium of our foreign agencies, which will prepare astrategy of efficient promotion and a subsequent presentation of theseproducts to the foreign tour operators.

2. In the second wave the CzechTourism foreign agencies will promote themain National products (Prague, Karlovy Vary, esk Krumlov, rock towns,Olomouc) and to each of the places will be organized only one optionaltrip, which will be the most attractive for the specific market. The productsthemselves and the optional trips will be prepared by the RegionalDepartment of CzechTourism in collaboration with the Regions of theCzech Republic.

These first phases of the promotion will begin in July 2004 and will lastapproximately till July 2007.

3. In the following period we will promote the remaining National products.

Each National product will have its manual, which will contain: References to the web sites for the given destination; Photographs in the resolution for print; Information about transportation and distances; Information about accommodation facilities; Description of the given place and the surrounding places of interest; List of cultural, sports and other interesting actions; Other detailed information and the places of interest in the region.

Other directions of CzechTourism activities: The foreign agencies will purposefully contact travel agencies and tour

operators with the presentation and the offer of the National products; CzechTourism will provide grants to the travel agencies, which will in an

evincible way include the National products and the optional tripsspecified by our marketing strategy in their catalogue or Internet sites;

Collective as well as individual press trips will be aimed mainly at theNational products;

The web sites of CzechTourism will change their structure in order tosupport the National products;

The National products will be emphasized in all the brochures and maps; There will be printed a brochure presenting only the National products; There will be gradually printed posters for each National product.

IV

Vwww.CzechTourism.com

Characteristic features of an average tourist:

Characteristic features of a tourist orientated towards sights and history:

Educated, intelligent

Gives an impression of a young person

Individualistic, self-centred

Is different, deviates from the rules

Is concerned about the social position

Dynamic, decisiveCreative

Leading typeLikes to risk

Cold and impersonal, is stand-offish

Hardworking, tenacious

Courageous, bold

Inquisitive, is interested in new thingsEnjoys life, likes to pleasure

Silent, uncommunicative

Tolerant, without prejudices

Gives an older and sedate impression

Modest

Reliable

Responsible towards the others

Considerate

Thoughtful, meditative

Carefully fulfils his duties

Friendly

Talkative, communicative

Traditional, conservative

Solicitous

Com

mun

icativ

e/so

licito

us

Warm/

open

Traditionalisti

c/thoug

htful

Relia

ble/

mod

est

Isconcernedaboutthesocialposition/Selfish

Restrained,dispassionate

Inquisitive/Enjoying life

Dynamic/Independent

IND

IVID

UA

LIS

TIC

EXTROVERT

INTROVERT

AP

PU

RT

EN

AN

T

Educated, intelligent

Gives an impression of a young person

Individualistic, self-centred

Is different, deviates from the rules

Is concerned about the social position

Dynamic, decisiveCreative

Leading typeLikes to risk

Cold and impersonal, is stand-offish

Hardworking, tenacious

Courageous, bold

Inquisitive, is interested in new thingsEnjoys life, likes to pleasure

Silent, uncommunicative

Tolerant, without prejudices

Gives an older and sedate impression

Modest

Reliable

Responsible towards the others

Considerate

Thoughtful, meditative

Carefully fulfils his duties

Friendly

Talkative, communicative

Traditional, conservative

Solicitous

Com

mun

icativ

e/so

licito

us

Warm/

open

Traditionalisti

c/thoug

htful

Relia

ble/

mod

est

Isconcernedaboutthesocialposition/Selfish

Restrained,dispassionate

Inquisitive/Enjoying life

Dynamic/Independent

IND

IVID

UA

LIS

TIC

EXTROVERT

INTROVERT

AP

PU

RT

EN

AN

T

Examples of detailed graphs, which we drew from at developing the strategy:

The dotted part inside the circle shows the most frequented characteristic features of an average tou-rist. The darts illustrate the tendency of prevailing features. The point marks the average.

The dotted part inside the circle shows the most frequented characteristic features of an average tou-rist. The darts illustrate the tendency of prevailing features. The point marks the average.

VI www.CzechTourism.com

100

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20 %

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IMP

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Example of a detailed graph, which we drew from at developing the strategy:

The

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VIIwww.CzechTourism.com

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100

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20 %

40 %

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80 %

100

%

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IMP

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POPULARITY

Rela

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VIII www.CzechTourism.com

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)

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