The product FUNCHALoCITY is a touring-information-voucher guide that includes maps, routes, vouchers and discounts, insider information and a hotel voucher for the cruise passenger segment. Derived from the internal analysis one of the islands’ strengths is its range of attractions gastronomy and accommodation. Furthermore, the climate and the geography favour the tourism activity, which result in a high rate of local people who own, or work in local businesses. This is a favourable basis to build the product on. However, the island has weaknesses that include high attraction prices that turn into an opportunity for the product. Another weakness is Madeira’s global image as being an old people’s destination that again can be used by the product to help the destination attract more families and younger visitors. Last but not least, the cooperation of local tourism related businesses lack and yet another possibility for FUNCHALoCITY is to improve collaboration in Funchal, whose infrastructure is well-developed anyway. Threats might only be of an environmental nature also deriving from the huge centralisation of population in Funchal.
The combination of product development and focus strategies is used for launch, short and medium term stages. The product development strategy is the first step to introduce a product into an existing market. Furthermore, the focus strategy is quite important to achieve efficient production, distribution and marketing through specialisation. In order to implement these strategies, the promotional mix mainly consists of promotion, personal selling on the cruise ships and the establishment of partnerships in Funchal. The first step is to build up the network of local businesses in Funchal and secondly it is important to convince the cruise line companies to promote the product on their ships.
Furthermore, the product awareness will be raised using promotional elements like news stories, tourism brochures and leaflets.
Table of Contents
1. Project Brief
2. Executive Summary of Project Report
3. Madeira Island an Introduction
4. The Product
4.1 The project aim
4.2 Strategic objectives
4.3 Product risk assessment
5. Internal Analysis
5.1 Visitor demand characteristic
5.2 Cruise operators demand
5.3 Economic impact of tourism
5.4 Tourism inventory
5.5 Attractions inventory
5.6 Image
5.7 Organisation of tourism
5.8 Marketing & promotion
5.9 Sustainability issues
5.10 Community issues
5.11 Summary of internal audit with key strengths and weaknesses
6. External audit analysis
6.1 Stakeholder Analysis
6.2 External Strategic Analysis
6.2.1 Remote Environment Analysis
6.2.2 Operating Environment Analysis
6.3 Tourism Product Portfolio Analysis
6.4 Cruise Trends
6.5 Summary of External Audit with key Opportunities and Threats
7. Strategies to develop the tourism Product
7.1 The TOWS Matrix
7.2 Choice of Strategies
7.3 Implementation of Strategies
7.3.1 Marketing-mix
7.3.2 Product
7.3.3 Price
7.3.4 Promotion
7.3.5 Place
7.3.6 People
7.3.7 Process
7.3.8 Physical Evidence
7.3.9 Partnerships
8. Monitoring Strategy Performance
9. Conclusion
Project Goals & Core Themes
The primary objective of this project is to develop a new "touring-information-voucher guide" named "FUNCHALoCITY" tailored specifically for cruise passengers visiting Madeira. The project aims to bridge the gap in available tourism products for cruise visitors who typically have a limited time-frame of 7-9 hours on the island, while simultaneously fostering better collaboration among local businesses.
- Development of a new tourism product (FUNCHALoCITY) for cruise passengers.
- Internal and external situational analysis of the tourism sector in Madeira.
- Strategic implementation through a comprehensive marketing mix and local business partnerships.
- Improvement of cruise-specific information services and local destination awareness.
- Risk management and sustainable development of local tourism resources.
Excerpt from the Book
4.3 Product risk assessment
By developing a new product, different risks can face the project and the product itself. These risks are shown below in figure 2.
These days risk management is essential, because the tourism industry is a highly dynamical environment, which can change overnight. In the case of a risk, the product can disappear very fast if there is no efficient risk management, see figure 3 (Haberberg & Rieple, 2001).
After the identification and analysis of these possible risks, it is essential to apply the 4 T`s which are shown in figure 4 (John Patch & Associates, 2005).
In table 1, some example risks will be shown and the best way how to mitigate them.
Summary of Chapters
1. Project Brief: Outlines the objective to create a new product for cruise passengers on Madeira based on internal and external analysis.
2. Executive Summary of Project Report: Summarizes the FUNCHALoCITY concept, including the identified strengths, weaknesses, and the planned strategic implementation.
3. Madeira Island an Introduction: Provides historical context, geographical details, and an overview of the current status of tourism in Madeira.
4. The Product: Details the aim of the FUNCHALoCITY project, strategic objectives regarding information dissemination, and a foundational risk assessment.
5. Internal Analysis: Analyzes visitor demand, cruise operator requirements, tourism inventory, economic impacts, and sustainability issues inherent to the island.
6. External audit analysis: Examines stakeholders, conducts a PESTEL macro-environmental analysis, and utilizes Porter's Five Forces and BCG matrix for competitive assessment.
7. Strategies to develop the tourism Product: Utilizes the TOWS matrix to choose and implement strategies through a specific marketing mix, including pricing, promotion, and partnerships.
8. Monitoring Strategy Performance: Emphasizes the need for monthly reviews and profitability measurement to ensure the project remains on track.
9. Conclusion: Concludes that while Madeira has immense potential as a cruise destination, success depends on unified efforts between official tourism bodies and local businesses.
Keywords
Madeira, Cruise Passengers, FUNCHALoCITY, Tourism Product Development, Marketing Mix, Internal Analysis, External Audit, Strategic Planning, Risk Management, Sustainability, Local Business Partnerships, Tourism Strategy, Destination Branding, Visitor Demand, Competitive Analysis
Frequently Asked Questions
What is the core focus of this project report?
The report focuses on the development of a specific touring-information-voucher guide called "FUNCHALoCITY", designed to meet the unique time and information needs of cruise passengers visiting Madeira.
Which target group does the product address?
The primary target group is the cruise passenger segment, which typically has a short window of 7-9 hours to experience the island, but the product also incorporates diverse sub-segments like families and nature lovers.
What is the primary objective of FUNCHALoCITY?
The primary goal is to provide a comprehensive, value-added information tool that enhances the tourist experience while promoting local, independent businesses that are often overlooked by standard tour packages.
Which scientific methodology was applied?
The project employs standard management and marketing methodologies, including SWOT/TOWS analysis, PESTEL analysis, Porter's Five Forces, the Boston Consulting Group (BCG) matrix, and the AIDA model.
What aspects of the tourism business are covered in the main section?
The main section covers an extensive internal and external audit, risk management strategies, product portfolio analysis, and a detailed implementation plan using the traditional 7 Ps of the marketing mix.
What are the key terms that characterize this work?
Key terms include tourism strategy, cruise market segment, sustainable destination development, product-market expansion, and integrated marketing communication.
How does the report handle the potential risks of the new product?
The report uses a risk register approach and the "4 T's" model (Transfer, Terminate, Take, Treat) to identify potential failures and define mitigation strategies for financial, strategic, and operational risks.
Why are local business partnerships considered essential?
Partnerships are vital because they distribute the product's benefits directly to local service providers, thereby reducing the dependency on mass-market tours and helping to preserve the authentic culture of the island.
- Quote paper
- Thomas Punzel (Author), Elisabeth Stockmann (Author), 2008, Assessment “Madeira Live Project”, Munich, GRIN Verlag, https://www.grin.com/document/122443
