Doc - Marko Paliagamarkopaliaga.com/wp-content/uploads/2016/03/BRAN… · Web viewMarko Paliaga, Assistant Professor, Ph.D., Juraj Dobrila University of Pula. Ernes Oliva, Dipl.oec.,

Marko Paliaga, Assistant Professor, Ph.D., Juraj Dobrila University of Pula

Ernes Oliva, Dipl.oec., Juraj Dobrila University of Pula

BRANDING OF SMALL TOWNS IN ISTRIA

ABSTRACT

In recent years, town marketing and town branding have become a frequently discussed topic

for towns, municipalities, various associations, the public and the media as well as various

state authorities. The main problem for all towns is how to act efficiently and promptly, how

to adjust to constant market changes, how to be competitive and become recognisable and

unique. The same problem is tackled by small towns, which may find a solution in branding.

Small towns have to establish themselves as brands in order to develop in the global

environment, attract and keep investors and tourists and raise the level of satisfaction among

their citizens. Branding provides each town with a possibility of defining and differentiating

itself from every other town. Small towns seek to differentiate and become recognisable and

attractive. The creation of a town brand based on its particular features at the same time lays

foundations for valorisation of cultural, tourist and market identity of the town, which in turn

makes it possible to unify its tourist, traditional, cultural and natural qualities. By developing

a brand, little towns may valorise their identity and become unique - a destination

recognisable for their culture, tourism and market placement using its potentials. The present

paper explores branding potentials of small towns in Istria. We expect research results to

show whether there is branding potential and, if there is, for which towns, what entities are

relevant for the introduction of a brand, what elements support branding potential of a small

town in addition to branding benefits for little towns and the entire region.

Key words: town branding, town marketing, differentiation

1. INTRODUCTION

In this day and age, countries, regions and towns face the increasingly fiercer competition and

the ever higher demands of tourists, investors and inhabitants. The problem of growing

competition is also present in small towns in some regions, particularly in tourist regions.

Market struggle and competitors spurred the need for searching, creating or emphasising

sources of competitive advantages.

Like countries, regions and big towns, small towns also have to find a way to valorise their

competitive advantages embodied in their in unique characteristics. Unique features of small

towns are part of their identity that differentiates them from all other places. By the same

token, it is necessary to find a way to communicate unique characteristics of small towns or

their identity to target segments. A dynamic environment requires strategic thinking that

becomes the key strategic marketing issue for small towns. Tourist destinations as well as

particular towns find a strategic solution in creating their own brand so that their market

presentation could be different from others. In this regard, strategic solution to the above

problem for small towns may also be found in creating their own brand based on their

identity. Brand building would enable the preservation of identity of small places with the

brand also used as a communication method and a promise whose keeping builds long-term

loyalty.

Seeing that creating a brand for small towns based on their particular features enables

valorisation of their identity, brand creation may be described as a key strategic marketing

approach geared towards preservation of identity and development of economy of a particular

town. Brand building creates preconditions for the implementation of development strategy

and improvement of small towns, which should produce long-term benefits both for small

towns and for their entire region.

This research explores brand building potentials for small towns in Istria. We identify and

analyse elements that affect the own-brand creating process for small towns. Consequently,

the research attempts to address potential benefits of creating a brand both for small towns

and for the whole region in addition to revealing the most important entities in the brand

building process for small towns.

The paper also defines and proposes a possible model of branding small towns. The proposed

model comprises seven key steps used as fundamental guidelines in the small town branding

process.

2. SPECIFIC FEATURES OF TOWN BRANDING WITH SPECIAL REFERENCE

TO SMALL TOWNS

The idea of competitiveness among towns is not new, and it primarily refers to globalisation-

related changes. In fact, in the course of the twentieth century, globalisation affected

competitiveness so that a good brand became a decisive market conquering tool as opposed to

merely having a decent quality product that is reasonably priced. In recent years, town

marketing and town branding have become frequently discussed topics in western countries,

Croatia included, for towns, municipalities, various associations, for the public and the media

as well as various state authorities. The main problem all towns are experiencing today is how

to act efficiently and promptly, how to adjust to constant market changes, how to be

competitive and become recognisable and unique. Town branding process actually means

changing the way towns are developed and planned.

Small towns have to establish themselves as brands in order to develop in the global

environment, to attract and keep investors and tourists and raise the level of satisfaction

among their citizens. Branding provides each town with a possibility of defining and

differentiating itself from every other town. In terms of towns, regions or countries, a

trademark or a brand denotes a particular sort of town characterisation, or a set of all

expectations, thoughts, ideas, notions, feelings and associations individuals have to a country,

town or region. If we consider the fact that each town is limited by its available funds and the

increasing global interrelatedness, each local community has to compete with any other town

or place for its share in the world's wealth, talents and knowledge. Renowned companies

renowned towns, regions or countries alike will more easily find channels for the sale of their

products or services, more easily find workforce, have a larger number of visitors, tourists,

investments and events and a more significant role at the national and global level.

In spite of a common perception that town branding actually means promoting its natural and

cultural assets and finding a way to attract tourists, branding is actually a lot more. The

fundamental starting point for the implementation of town branding concept is that the name

of the town should become a brand, and that its result is the creation of an image in the

consciousness of all identified target groups (potential investors, tourists, citizens,

entrepreneurs), which helps everyone evaluate town products and services, makes it easier for

tourists to make a decision about their visit to the town, it affects making business decisions

and residents' decisions to move and similar. Town branding is oriented to improving the

town as a product.

Town as a product is defined as a set of all natural elements (climate, position) and town

planning and physical elements that reflect its character and the entire town heritage, housing

and basic infrastructure. It also comprises basic town services, fire department, police

department, emergency services, municipal services and education, all of which have to be

planned by every mayor. A town product is improved by means of construction of particularly

attractive landmarks such as a unique park, stadium, historic building, shopping centre, five-

star hotel in the historical centre and similar. This will make it possible for the town to realise

its development potential through attracting particular target groups, which will benefit the

entire local community. Yet a town as a brand does not have to focus solely on one target

group, but rather on several groups, which depends on the vision of local authorities and what

they want from their town, where they are directing it, what future development they want for

it and how ready they are to accept new development ideas and objectives.

A town brand has to be seen as some sort of contract between town authorities and users of all

services of the town product whereby users of services offer loyalty and trust to the brand and

in turn ask the town to provide them with benefits through maintaining a constant level of

quality of the town product, appropriate prices of all basic services, promotion of local

community and equal distribution-accessibility of all town services to everyone.

Although some towns have better natural, cultural and historic assets compared to other

towns, all of them can be successfully branded. Success of one town does not have to

overshadow possibilities of other towns although they might appear to be similar. For

instance, the distance between the towns of Rovinj and Poreč is small, they are similar in size,

and yet each of them can be branded in a different way.

Boosting confidence of local economy and local inhabitants in their own forces, their own

economy, their own expertise and their own skills is the greatest success of town branding.

This confidence and strength will generate significant differentiation and recognisability for

all target groups. Creation of new and maintenance of existing business, social, cultural and

emotional ties and relations through encouraging and developing local economy, boosting

town exports and creating new workplaces is the greatest positive effect of town branding. It

is advisable that branding should be considered carefully, without being susceptible to

services provided by creative and advertising agencies that only create the “packaging”. In

fact, no product can be successfully marketed if it is not rooted in quality. Town brand

building requires much effort, systematically and methodically collected data about the town,

a clear vision of town development, clear town development objectives, select brand

development strategies, a political consensus, but most of all, it requires perseverance. A town

or a place is not branded only because its inhabitants or representatives of the owner say so or

because they designed a logotype and selected a slogan. This is merely “make-up” branding.

Small places and towns also seek to become differentiated, recognisable and attractive.

Small town branding process may be divided into seven steps (Baker, 2007.): 1. Assessment

and Revision, 2. Analysis and Advantage, 3. Alignment, 4. Articulation, 5. Activation, 6.

Adoption and Attitudes, 7. Action and Implementation.

Implementation and success of these steps in building a small town brand first of all depend

on local policies, budgets, time and autonomy of entities in charge of brand building and

development (Baker, 2007.).

The following table shows a possible model for introducing brands into small towns.

Table 1: Presentation of a possible model of small town branding

First step

Assessment and revision

Questions that need to be

addressed in this phase: Who

are we? What do the users of

our services and our guests

think of us? What do we want

to become?

This phase includes:

a) Identification of markets that are relevant

for a particular place

b) Assessment and perception of attitudes

of all stakeholders to their place

c) Identification of competitors

d) Identification of strengths and

weaknesses of the place

e) Defining differentiation point

f) Identification of advantages and trends

Second step

Analysis and emphasising

advantages


addressed:

What do our stakeholders want?

What are the strengths and the

advantages of our community?

What are the strengths of our

competitors and what do they

offer?


a) Defining needs of all users of

services

b) Defining competitors' offer and

assessment of competitors

c) Defining the Value of future

Brand/Trademark, what values can

be emphasised by local

community (knowledge,

patriotism, safety, innovations,

environmental concerns...)

d) Defining the vision of future brand

(tangible benefits, emotional

benefits, social benefits)

e) Choice of promise of trademark or

brand (what will the brand offer

and guarantee to all users...)

Third step

Development and

improvement of the place/local

community


addressed: Are there strengths

that can improve the place? Are

there programmes that can

improve the place? Will new

elements improve or worsen a

particular local community?


a) Defining key improvement points

for the place or local community

in conformity with the chosen

vision and promise of the brand

(what will be improved or

developed, concrete projects)

b) Realisation of key projects

Fourth step

Brand building


addressed:

Will the brand be

understandable and accepted?

Will its visual identity conform

to brand promises? Is our brand

recognisable? Does our brand

differentiate us? Etc.


a) Defining and choosing the name

of the brand

b) Design and choice of logotype that

follows from key projects-points

c) Creating the story about the brand

in conformity with realised key

projects-points

d) Defining key words, phrases that

strengthen brand recognisability

e) Defining key colours, fonts,

photographs enhancing brand

recognisability

Brand activation (launching) Questions that need to be

addressed in this phase: What

kind of advertising should be

used? Which media should be

engaged? How much money to

spend on advertising/brand

activation?


a) Selection of promotional mix

(advertising, public relations,

events, publicity...)

b) Defining the budget

c) Implementation of the principle of

integrated marketing

communication

d) Measuring promotional effects

Implementation and Control Questions that need to be

addressed in this phase: Does


a) Implementation of the brand

the brand we built meet our

expectations? Does the brand fit

promised actual situation in a

small town? Are there needs to

change place branding strategy?

What are economic benefits of

branding process?

through all forms of promotion

and communication

b) Following implementation and

monitoring

c) Assessment of indirect and direct

economic and social benefits

from place branding

d) Quantitative effects - following

(increase in the number of guests,

growth of production, increase in

the number of inhabitants, growth

of GDP)

e) Constant improvement of

implementation in all segments of

society and among all

stakeholders, implementation has

to be above the level of choice of

logotype and colour

f) Feedback, corrections, co-

branding, revision of branding

solutions, improvement.

Source: Authors, 2012, partially according to Baker, 2007.

3. SMALL TOWN BRANDING BASED ON AGRICULTURAL FOODSTUFF AND

EVENTS

Place name building based on special features of a particular place lays foundations for the

valorisation of cultural, tourist and market identity of the place. It also enables the unification

of historical, traditional, cultural and natural assets of a place. Brand building provides small

towns with a possibility of valorising their identity and becoming a unique cultural, tourist

and market destination which benefited from its existing potential. In this regard, it is

necessary that a particular place becomes a destination. Only then may it use its uniqueness

and take part in the market competition against other destinations. The origin of the word

destination is Latin destinatio, the end of a journey or the place to which one is traveling

(Anić, 1994). To explain the term, we will quote a few definitions of tourist destination. In

fact, the term “tourist destination” refers to a small or large compact unit of space whose

tourist product coming from the original and derived tourist offer has potential or actual

tourist marketability (Meler, 1998). Tourist destination is a modern expression of the totality

of tourist offer of a particular area (Žuvela, 1998). Tourist destination as a competitive unit

represents a context chosen by the tourist as the objective of his/her travel and stay. The

meaning of destination may comprise different elements that form the value chain, although,

eventually, one has to be able to meet all guest expectations with a comprehensive offer, even

by cooperating with other destinations (Bieger, 1998). Therefore, in order for an area to be

characterised as a tourist destination, it must be able to attract and keep tourists, i.e. provide a

complete complex tourist offer (Križman Pavlović, 2008).

Growing competition among tourist destinations and significant changes in tourists' habits and

expectations during their journey support the idea that destinations should be treated like

products and managed according to marketing-based approach (Ashworth & Voogd, 1994;

Caldwell & Freire, 2004; Kotler, Asplund, Rein & Heider, 1999; Kotler & Gertner, 2002).

Some authors argue that destinations, like products or services, may have their brand (Cai,

2002; Caldwell & Freire, 2004), defined by the American Marketing Association (AMA) as a

name, term, sign, symbol, design or their combination with the objective to identify goods or

services of a particular seller or group of sellers and to differentiate them from goods or

services of their competitors. Vranešević (2007) defines trademark as a name, symbol and any

stimulus that can be related to characteristics of a product or service and their functional and

psychological benefits. Vranešević (2007) sees trademark as a means of differentiation, a

functional means, a symbolic means, a risk reduction tool, a time saving tool, a legal and

strategic instrument. A tourist destination brand is the image building process for a place

based on the perception of tourists and other stakeholders that relies on communication

strategy aimed at target market (Cai, 2002). One of the main objectives of building a place

brand is enhancing the attractiveness of the place (Rainisto 2003) based on its identity (Qu et

al. 2011). Some authors believe that intensification of branding concept in regard to

destinations requires greater place management integration and that the identity of a place as

well as its reputation affects the possibility that destinations attract visitors, inhabitants and

investors (Ashworth & Kavaratzis, 2007; Cai, 2002; Park & Jaworski, 1986; Qu et al., 2011;

Ritchie & Ritchie, 1998). We may state that trademarks are a clear and unique reflection of

our time (Olins, 2008). In the world characterised by fierce competition in which reasonable

choice has almost become impossible, trademarks represent clarity, a new safety, consistency,

status, even membership, i.e. everything that helps people define themselves.

If a particular place is unique for its historic, traditional, cultural and natural assets, there is

place brand building potential that will valorise cultural, tourist and market identity of the

place so that it could become a recognisable destination. In the case of Istria, a significant role

in creating uniqueness and traditional, cultural and natural differences of small towns is

played by autochthonous foodstuff. With a view to promoting autochthonous foodstuff in

Istria, there are numerous autochthonous foodstuff fairs, wine and olive oil festivals and days

of autochthonous foodstuff held in the original places specific for autochthonous foodstuff.

Long experience in organising these events1 has turned into tradition, which integrates these

events into the uniqueness building process or the process of building distinctive features and

characteristics of the place. In this regard, events as well as autochthonous foodstuff may be

used as attractions of a particular destination with a significant role in image building and

promotion of both the destination and the autochthonous foodstuff. Events are used in the

projections and communication of brand position (Nobili 2005), they serve as a stimulus and

provide unforgettable experience (Pine & Gilmore, 1999) and are play a role in the process of

forming the image of a destination (Kotler & Gertner, 2002). Therefore, destination-brand

management should correspond to the organisation of both cultural and other events that

constitute one of the mix elements whose main role is enhancing the attractiveness of a

destination in terms of reputation and image (Guerreiro, Oom do Valle, Mendes 2011).

We may conclude that autochthonous agricultural products integrated into events benefit the

destination to a certain extent, and that they eventually benefit the whole region as they create

recognisability and attractiveness. A small town brand that unifies destination, autochthonous

foodstuff and events that is based on uniqueness of a particular place, in addition to creating

recognisability and attractiveness is also used in communicating with the market. Therefore,

together with its market communication role, a small town brand should be a mirror of

distinctive features of the place that reflects its tradition embodied in its cultural, historic and

natural heritage as well as activities and events characteristic of the place.

1 The word "event" is used to mean all activities that promote regional autochthonous foodstuff

4. RESEARCH RESULTS

The research was carried out through a structured questionnaire distributed electronically to

Tourist Boards and towns in the Istrian Region. The questionnaire was e-mailed to 30 Tourist

Boards and 10 towns in the Istrian Region. Of all of the questionnaires we sent out, 21 have

been answered by the Tourist Boards, of which 1 was incorrectly filled out, and we have

received 9 questionnaires from towns. Out of 40 questionnaires, 29 have been properly filled

out, which means that N = 29. Demographic data show that the questionnaire included 48.3 %

men and 51.7 % women. Educational structure is the following: 1. completed secondary

education – 17.2 %, 2. associate degree – 6.9 %, 3. university degree – 55.2 %, 4. M.A., Ph.D.

or more – 20.7 % of respondents.

Respondents were asked whether small Istrian towns need to have a clearly defined mission,

vision and visual identity.

Table no. 2: Defined mission, vision and visual identity

Respondents

Defined mission, vision and visual identity TOTAL

yes no I do not know

Tourist Board 90,00 % 5,00 % 5,00 % 69,00 %

Town 88,90 % 0,00% 11,10 % 31,00 %

TOTAL 89,70 % 3,40 % 6,90 % 100,00%

Source: authors' research, 2012

According to the obtained results, 90 % of respondents in Tourist Boards and 88.90 % of

respondents in towns believe that small Istrian towns should have a clearly defined mission,

vision and visual identity.

Furthermore, the research was aimed at defining whether there are elements believed to

support branding potential of small Istrian towns. The results are shown in Table no. 4.

Table no.4: Elements that support branding potential of small Istrian places

RankAutochthonou

s products Cultural assetsPreserved

environment

Fairs and festivals of autochthonous

productsTourist

capacitiesTraditional festivities

1 34,50% 41,40% 34,50% 10,30% 6,90% 10,30%

2 17,20% 24,10% 24,10% 13,80% 10,30% 13,80%

3 24,10% 20,70% 10,30% 17,20% 13,80% 17,20%

4 6,90% 10,30% 10,30% 27,60% 20,70% 17,20%

5 10,30% 3,40% 20,70% 20,70% 6,90% 20,70%

6 6,90% 0% 0% 10,30% 41,40% 20,70%

TOTAL 100% 100% 100% 100% 100% 100%


Table no.5: Ranking of elements that support branding potential of small Istrian places

Element Mean Median ModCultural assets 2,1034 2 1

Preserved environment 2,5862 2 1

Autochthonous products 2,6207 2 1Fairs and festivals of autochthonous

products 3,6552 4 4

Traditional festivities 3,8621 4 5

Tourist capacities 4,3448 4 6Source: authors' research, 2012

Respondents' answers to questions point out three important elements that support branding

potential of small places, namely 1 Cultural assets, 2 Preserved environment and 3

Autochthonous products. Most of the respondents noted that tourist capacities are a

completely irrelevant element, an element that does not support branding potential of small

Istrian places.

Data shown in the following table show Istrian places that respondents consider to have

branding potential and defined marketing strategy.

Table no.6: Branding potential and marketing strategy of Istrian towns

Respondents

Total

Respondents

Total Tourist Board Grad

Tourist Board Grad

Potential Buzet

yes 90,00% 66,67% 82,76% Marketing strategy Buzet

65,00% 55,56% 62,07%

no 0,00% 11,11% 3,45% 5,00% 11,11% 6,90%

I do not know 10,00% 22,22% 13,79% 30,00% 33,33% 31,03%

Potential Vodnjan

yes 80,00% 66,67% 75,86% Marketing strategy Vodnjan

40,00% 22,22% 34,48%

no 0,00% 11,11% 3,45% 10,00% 11,11% 10,34%

I do not know 20,00% 22,22% 20,69% 50,00% 66,67% 55,17%

Potential Tinjan

yes 65,00% 33,33% 55,17% Marketing strategy Tinjan

35,00% 44,44% 37,93%

no 5,00% 44,44% 17,24% 5,00% 0,00% 3,45%

I do not know 30,00% 22,22% 27,59% 60,00% 55,56% 58,62%

Potential Hum

yes 90,00% 66,67% 82,76% Marketing strategy

Hum

45,00% 33,33% 41,38%

no 10,00% 22,22% 13,79% 10,00% 0,00% 6,90%

I do not know 0,00% 11,11% 3,45% 45,00% 66,67% 51,72%

Potential Livade

yes 65,00% 44,44% 58,62% Marketing strategy Livade

40,00% 22,22% 34,48%

no 15,00% 22,22% 17,24% 15,00% 22,22% 17,24%

I do not know 20,00% 33,33% 24,14% 45,00% 55,56% 48,28%

Potential Gračišće

yes 60,00% 44,44% 55,17% Marketing strategy Gračišće

35,00% 33,33% 34,48%

no 0,00% 11,11% 3,45% 0,00% 11,11% 3,45%

I do not know 40,00% 44,44% 41,38% 65,00% 55,56% 62,07%

Potential Fažana

yes 70,00% 55,56% 65,52% Marketing strategy Fažana

50,00% 22,22% 41,38%

no 5,00% 11,11% 6,90% 10,00% 22,22% 13,79%

I do not know 25,00% 33,33% 27,59% 40,00% 55,56% 44,83%

Potential Motovun

yes 85,00% 88,89% 86,21% Marketing strategy

Motovun

45,00% 0,00% 31,03%

no 5,00% 0,00% 3,45% 10,00% 22,22% 13,79%

I do not know 10,00% 11,11% 10,34% 45,00% 77,78% 55,17%

Potential Pazin

yes 50,00% 11,11% 37,93% Marketing strategy Pazin

10,00% 22,22% 13,79%

no 20,00% 33,33% 24,14% 35,00% 0,00% 24,14%

I do not know 30,00% 55,56% 37,93% 55,00% 77,78% 62,07%

Potential yes 45,00% 22,22% 37,93% Marketing strategy

Buje

15,00% 11,11% 13,79%

Buje no 10,00% 22,22% 13,79% 30,00% 11,11% 24,14%

I do not know 45,00% 55,56% 48,28% 55,00% 77,78% 62,07%


The above data indicate that the respondents maintain that the following little towns have the

greatest branding potential: 1 Motovun (86,21%), 2 Buzet (82,76%), 3 Hum (82,76%), 4

Vodnjan (75.86 %), 5 Fažana (65.52 %).

In addition to the above elements, we have tried to determine if there are projects that affect

or support branding potential of small Istrian towns.

Table no.7: Projects that affect the building of branding potential of a particular place

Project N Mean Std. Deviation

Truffle Days 29 4,4138 ,68229

Olive Oil Festivals 29 4,2759 ,64899

Prosciutto Fair 29 4,2414 ,43549

Wine Festivals 29 4,1034 ,61788

Asparagus Days 29 3,6897 ,80638

Fishermen's Festivities 29 3,6207 ,72771

Folk Music and Folklore Festival 29 3,5862 ,82450

Festival of Homemade Brandy 29 3,5517 ,68589

Traditional festivities 29 3,5517 ,73612

Honey Days 29 3,5172 ,63362

Popular festivities 29 3,4483 ,73612


The following table shows the analysis of the variance One-Way ANOVA between the

samples Town and Tourist Board.

Table no. 8: Variance homogeneity test

Levene Statistic df1 df2 Sig.

Prosciutto Fair ,102 1 27 ,752

Wine Festivals 12,551 1 27 ,001

Folk Music and Folklore

Festival

,965 1 27 ,335

Festival of HomemadeBrandy ,073 1 27 ,789

Truffle Days ,521 1 27 ,477

Olive Oil Festivals ,933 1 27 ,343

Honey Days ,524 1 27 ,475

Asparagus Days ,288 1 27 ,596

Popular festivities 5,054 1 27 ,033

Fishermen's festivities 5,988 1 27 ,021

Traditional festivities 6,527 1 27 ,017Source: authors' research, 2012

Table no.9: ANOVA test for variables with homogeneous variancesANOVA

Sum of Squares df

Mean Square F Sig.

Prosciutto Fair Between Groups ,005 1 ,005 ,024 ,877

Within Groups 5,306 27 ,197 Total 5,310 28

Folk Music and Folklore Festival

Between Groups 1,729 1 1,729 2,697 ,112


Festival of Homemade Brandy

Between Groups ,622 1 ,622 1,339 ,257


Truffle Days Between Groups ,012 1 ,012 ,025 ,875


Olive Oil Festivals

Between Groups ,371 1 ,371 ,877 ,357


Honey Days Between Groups ,069 1 ,069 ,167 ,686


Asparagus Days

Between Groups ,007 1 ,007 ,010 ,920



Variance test shows that there is no statistically significant difference between answers of

Towns and those of Tourist Boards since p > 0.05 for all analysed variables with

homogeneous variances.

The following table shows the analysis of variables with non-homogeneous variances. We

have used Welch test whose strength is greater than F-test when samples are of very unequal

size.

Table no.10: ANOVA test for variables with non-homogeneous variances

Robust Tests of Equality of Means

Statistica df1 df2 Sig.

Wine Festival Welch ,001 1 9,715 ,973

Popular festivities Welch ,000 1 10,653 ,988

Fishermen's

festivities

Welch 1,375 1 10,247 ,267

Traditional festivities Welch 3,684 1 10,619 ,082

a. Asymptotically F distributed.


Considering that p > 0.05 for all variables, we may conclude that there is no statistically

relevant difference between answers of Towns and Tourist Boards in reference to projects that

support branding potential of small towns.

Therefore, it follows that there are four significant projects that support branding potential,

namely 1 Truffle Days, 2 Olive Oil Festivals, 3 Prosciutto Fair and 4 Wine Festivals.

Furthermore, we have tried to determine whether there are little Istrian towns that already

have a defined and recognisable identity communicated through Tourist Board projects, the

media or otherwise, and the largest number of respondents (58.60 %) claims that Buzet has a

defined and recognisable visual identity, while 41.40 % of respondents believes it is the case

for Vodnjan, whereas 37.90 % of respondents believe so for Gračišće, 27.60 % of respondents

for Tinjan , for Hum and Livade 20.70 % of respondents, for Buje 10.30 % and only 6.90 %

for Pazin. These data indicate that respondents believe that small Istrian towns mostly still do

not have a defined and recognisable visual identity as a means of communication.

Logically, branding fulfils particular potentials and provides particular benefits for branded

places. By the same token, in addition to benefitting the place, the entire region may also

profit or realise particular potentials. Results are shows graphically in Figure no. 1.

Figure no. 1: Potential benefits for the place


Recognizability of the place/Development of tourist offer/ Building added value/ Preserving

the identity of the place/ Attractiveness of the place/ Strengthening the image of the place/

Diversification of RP/ Rural development of the place/ Competitiveness of the place/

Differentiation of the place/ Better life/ Ecological preservation of the place

The figure shows potential benefits for the place that can be realised as a result of place

branding. Potential benefits may be classified at one of the following three levels:

Small benefits - ecological preservation, better life, differentiation,

Medium benefits - competitiveness, rural development, diversification of regional products, strengthening the image of the place, strengthening the attractiveness of the place, preserving the identity of the place

Large benefits – building added value for the place, development of tourist offer, strengthening recognizability of the place

Furthermore, the following figure shows potential benefits for the entire region that can be

realised through place branding.

Figure no. 2: Potential benefits for the region


Development of tourist offer/ Attractiveness of the region/ Regional recognizability

Strengthening regional identity/ Preserving the identity of the place/ Building added value

Competitiveness of the region/ Expanding the range of regional products/ Rural development

of the region/ Differentiation of the region/ Better life/ Ecological preservation of the region

Small benefits - ecological preservation, better life, differentiation of the region,

Medium benefits – rural development of the region, expanded range of regional products, competitiveness of the region, building added value, preservation of regional identity, strengthening regional recognizability and regional attractiveness,

Large benefits – development of tourist offer,

A correlation analysis has been performed for the purpose of determining correlation or

relatedness of benefit dimensions for the place and for the region.

Table no.11: Correlation table- benefits for the place and the region

Correlation table- benefits for the place and the region

Pearson's R P value

Ecological preservation 0.867 0.000

Building added value 0.810 0.000

Better life 0.769 0.000

Development of tourist offer 0.730 0.000

Diversification of regional food products 0.677 0.000

Differentiation 0.641 0.000

Preservation of identity 0.634 0.000

Competitiveness 0.632 0.000

Rural development 0.588 0.000

Recognisability 0.563 0.001

Attractiveness 0.540 0.001

Strengthening the image 0.419 0.012Source: authors' research, 2012

There is a statistically significant correlation between benefit dimensions for the towns and

for the region.

The following dimensions have a significant correlation: diversification of regional products,

differentiation, preservation of identity, competitiveness, rural development, creation of

recognisability, strengthening the attractiveness, strengthening the image.

Very high correlation has been found for the following dimensions: ecological preservation,

building added value, better life, development of tourist offer.

T test has determined certain differences in arithmetic mean of particular dimensions.

Differences are confirmed for the following dimensions: Ecologic preservation (T -2.117, p

0.0215), Building added value (T 2.117, p 0.0215) and Competitiveness (T -1.992, p 0.028).

Therefore, we maintain that brand building would produce higher added value for towns than

for the region as a whole. Competitiveness and ecological preservation of the region as a

whole would increase more than competitiveness and ecological preservation of branded

towns.

We have to ask the question about the entities that would be relevant in brand building for a

small Istrian town? Should the project have only one or more lead partners?

Analysed data indicate that 89.70 % of the respondents chose the option of shared project of

several entities.

The following entities have been identified as relevant for the joint project of branding Istrian

towns:

1. Local self-government – 79.30 %

2. Tourist board – 72.40 %

3. Regional self-government – 34.50 %

4. Ministry of Tourism – 24.10 %

5. Private sector – 24.10 %

6. Clusters – 20.70 %

Consequently, planning and implementation of the project of branding Istrian towns should

include two most important entities - local self-government and the Tourist Board that should

also be project leaders. If necessary, regional self-government should also be included, and it

should secure long-term political support for the project.

5. CASE STUDY - SMALL TOWNS IN ISTRIA

Throughout Istria, there are positive examples of unique little towns and their synergy with

autochthonous agricultural products.

The town of Buzet is unique for truffles and its annual festival Truffle Days. Buzet even got

the slogan “Buzet – Truffle Town”, and the visual identity of the town is the “truffle” used in

all forms of market communication that at the same time reflects the town identity. The Town

of Buzet was first proclaimed the Truffle Town back in 1999. Truffle Days are organised by

the Town of Buzet Tourist Board, and their objective is promotion, tasting and sale of truffle

as a unique gourmet product of the area and of other quality autochthonous products (honey,

cheese, olive oil, wine, homemade brandy, mushrooms), promotion of weekend tourism and

Buzet as the Truffle Town. One of important goals fulfilled by this manifestation is

prolongation of the tourist season, differentiation and strengthening recognisability of the

town of Buzet, also recognisable for small and medium enterprises.

The town of Vodnjan bases its uniqueness and differentiation on olives, olive oil and

winemaking. Consequently, along with its slogan “Town of Vodnjan-Tradition and

Hospitality”, Vodnjan's visual identity is a combination of long olive growing and

winemaking tradition, which is represented by olive branches intertwined with branches of

vine, definitely the most important cultures in the Vodnjan area, which also reflects the town

identity. The whole image is complete with the Festival of New Olive Oil held annually in

Vodnjan. The festival was first organised in Vodnjan, the oil and wine town, back in 2005.

The event was organised by the Town of Vodnjan and co-organised by the Town of Vodnjan

Tourist Board, under the patronage of the president of the Republic of Croatia, the Ministry of

Agriculture, Fisheries and Rural Development and the Istrian Region. The three-day

gastronomic manifestation does not only have exhibition and sale function. In fact, great

attention is paid to education and exchange of experience among olive growers. The festival

also includes numerous expert lectures and guided tastings for interested visitors. The

manifestation is international as Vodnjan, the oil and wine town, gathers olive growers and

winemakers from the entire Adriatic Euro-region. The Festival of New Olive Oil in Vodnjan

contributes to the affirmation of extra virgin olive oil as a quality autochthonous Vodnjan

brand. As a result of revitalisation of olive growing and old olive groves in the past ten years,

almost 200,000 new olive trees have been planted in Istria with the objective of creating

preconditions for the production of top quality extra virgin olive oil. By the same token, the

procedure for protecting the designation of origin for the Istrian olive oil has been initiated at

the Ministry of Agriculture, Fisheries and Rural Development.

Another example comes from the Municipality of Tinjan renowned throughout Europe for the

Istrian prosciutto, so that its slogan is “Tinjan – the Istrian Prosciutto Municipality”. Once a

year, the small town of Tinjan organises the International Prosciutto Fair – ISAP, which

enhances the uniqueness of this small Istrian town and the municipality as a whole. The

International Prosciutto Fair is organised by the Municipality of Tinjan and co-organised by

the Istrian Region and the Association of Prosciutto Manufacturers of Istria. The fair was first

organised in 2006 when the Municipality of Tinjan was proclaimed the Municipality of Istrian

prosciutto.

The manifestation started as a homemade prosciutto festival with the objective of paying

attention to the Istrian prosciutto as an excellent and specific gourmet product characteristic of

the largest Croatian peninsula- Istria. For this reason, the manifestation has been designed

with the objective to valorise and promote this Istrian delicacy. Alongside Istrian

manufacturers, the fair also gathers manufacturers from several European countries, and the

crown of the manifestation is the tasting and evaluation of the autochthonous Istrian product-

Istrian prosciutto. The International Prosciutto Fair in Tinjan is a two-day event when the little

town of Tinjan becomes the centre of European prosciutto.

Hum – once a year, the smallest town in the world once a year hosts the international

Homemade Brandy Festival. The town of Hum, apart for being known as the smallest town in

the world, is also renowned as the Biska Town named after a type of homemade brandy. The

fifth Homemade Brandy Festival that took place in 2005 was decisive for the area as it was

the event at which the smallest town in the world was proclaimed the Biska Town. The Hum

Biska is a homemade brandy made of wine-marc, white mistletoe and four types of herbs. The

recipe has been passed down through the late parish priest of Hum Josip Vidal, a connoisseur

of medicinal herbs. Biska may be tasted and bought at the Hum Inn in Hum- the smallest

town in the world. The Hum Homemade Brandy Festival is also special for the fact that

visitors may taste all kinds of homemade brandies bottled in 0.5 l bottles. The event is

organised by the Istrian and the Buzet Tourist Board and by the “Hum” Association. It is

aimed at popularising and promoting Istrian homemade brandy and the Hum Homemade

Brandy. The manifestation is international. It has become a tourist attraction and a regular

stop for organised groups of tourists.

Pazin, a town situated in the heart of Istria, once a year becomes the meeting place for bee-

farmers from Istria and other Croatian and European regions. The international manifestation

Honey Days is organised by the Pazin Apicultural Society Lipa, the Central Istrian Tourist

Board, under patronage of the Istrian Region and the Town of Pazin. The first Honey Days

were held in 2006, since when the event has become an important manifestation. Honey Days

is an international sales exhibition of beekeeping equipment, beekeeping products. Honey

Days also include a professional and scholarly conference at which bee-farmers and others

may learn about new findings in the field of beekeeping. The manifestation also includes

evaluation of honey samples and honey brandy with the objective of promoting Istrian honey

of exceptional quality. Beekeeping in the Pazin area has a centennial tradition, and honey may

be presented as an organic product and a product specific for the Pazin area, which may make

the area recognisable and eventually branded. In this way, Istrian honey, like other

autochthonous products, might soon find its place in the global market.

A large number of similar manifestations such as wine festivities, wine festivals, olive oil

festivals, fairs of homemade and traditional products are held at various places throughout the

Istrian Region. All these manifestations are rooted in tradition, history and production and

related to particular Istrian places, which makes them unique. They are designed to enhance

tourist offer, educate both their manufacturers and their consumers, introduce the consumers

to high quality products and promote the area with the main idea - promoting local, traditional

and autochthonous Istrian products in Croatia and abroad.

6. CONCLUSION

The purpose of this research was to find out if there are small towns in Istria considered to

have branding potential, which was one of research objectives. The research has shown that

there is branding potential for particular places in Istria.

Analysed research results indicate that Motovun, Buzet, Hum, Vodnjan and Fažana have a

certain level of branding potential. We have concluded that currently there is no Istrian small

town with a sufficiently strong visual identity as a tool of communication that could be

transmitted through all levels of marketing communication, visual and electronic media,

newspapers, magazines, posters, and this indicates that there is much space for creating a

unique and strong visual identity.

The research also tried to define if there are elements and projects that support branding

potential of small towns and singled out three significant elements, namely cultural assets,

preserved environment and regional autochthonous foodstuff. The analysis also identified four

significant projects that support branding potential of small Istrian towns, namely Truffle

Days, Olive Oil Festival, Prosciutto Fair and Wine Festivals.

We may conclude that branding process should be a joint project with several entities that

should achieve a certain level of synergy in the process of brand building for small towns, and

this includes joint, coordinated planning and implementation of activities in the brand

building process and after project termination.

Brand building for small Istrian towns could produce multifold benefits both for the place and

for the entire region. Benefits of brand building are classified at three levels: small benefits,

medium benefits and large benefits. Brand building for small towns has the following

benefits for places: ecologic preservation, better life, differentiation; medium benefits –

strengthening competitiveness, rural development, diversification of regional autochthonous

agricultural foodstuff, strengthening the image of the place, strengthening the attractiveness of

the place, preserving the identity of the place; and large benefits – building added value for

the place, development of tourist offer and strengthening recognisability of the place. Brand

building for small towns has the following small benefits for the region – ecological

preservation of the region, better life, differentiation of the region; medium benefits – rural

development of the region, diversification of regional autochthonous agricultural food

products, strengthening competitiveness, building added value, preserving regional identity,

strengthening regional identity, strengthening recognisability and attractiveness of the region;

and a great benefit – development of tourist offer.

Despite the fact that it remains unknown whether any small Istrian town has a defined

marketing strategy, we may conclude that the respondents (Tourist Boards and towns)

maintain that particular Istrian towns have a branding potential and particular elements and

projects related to the place that could be integrated into the branding process. In this regard,

this paper has shown one of possible models of branding small Istrian towns.

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Documents

Doc - Marko Paliagamarkopaliaga.com/wp-content/uploads/2016/03/BRAN… · Web viewMarko Paliaga, Assistant Professor, Ph.D., Juraj Dobrila University of Pula. Ernes Oliva, Dipl.oec.,