MONACO:PLACE EXCELLENCE AND

CLIENT ATTRACTION

Analyzing the current capabilities of the Principality in order to attract key clients

IUM MBA 2014

OUTLINE

•Team Profiles

•Project Task

•Research and Analysis World Tourism Trends

Customer Profiles

Benchmark: Dubai

Dubai Brand Analysis

Monaco-Dubai Gap Analysis

•Proposed Strategies & Solutions Strategy Overview

Proposed Solutions

•Conclusion & Proof of Concept

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TEAM PROFILES

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NuriaKhusainova

Customer Profile Specialist- Middle

East

Svetlana Berezovska

Customer Profile Specialist- India

Carlos Cabal

Customer Profile Specialist- Latin

America

Svetlana Masjutina

Project Leader/ Strategy & Research

TEAM PROFILES

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Olga Zubrilova

Strategy & Research

Arbia Ziadi

Customer Profile Specialist- Middle

East & Medical Tourism Specialist

Brett Lowers

Benchmark Specialist

PROJECT OVERVIEW Learning to Attract the Target Client

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PROJECT OVERVIEW

WHAT STRATEGIES, PARTNERSHIPS AND OFFERS SHOULD MONACO DEVELOP TO ATTRACT HIGH END CLIENTS

FROM ASIA, MIDDLE EAST, AND LATIN AMERICA?

1. BENCHMARK: Identify three to four international tourism destinations whose strategies and actions have been particularly successful in attracting target clients.

2. CONSUMER BEHAVIORS in these markets Expectations: The “must have” and “go beyond” in terms of

tourism demand

Communication channels used by target clients

Decision making process of target clients

3. EXPLORE THIS DEMAND OF TARGET CLIENTS Current Monaco Cultural Offers

Wellness and health care: How can current assets be exploited?

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RESEARCH & ANALYSIS

Tourism Trends

Client Profiles

Benchmark: Dubai

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WORLD TOURISM TRENDS

Jet-setters and Business Professionals

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TOURISM TRENDS 2009-2013

•Asia, Middle East and Latin America are top growth markets

•Tours and city holidays by consumers in emerging markets have driven tourism growth

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TOURISM TRENDS 2009-2013 (CONT.)

•Meetings, Incentives, Conferencing, Exhibitions (MICE) travel has seen much faster growth than traditional business travel since 2009

•The MICE segment now accounts for 54% of the total business travel market due to Substantial cuts in corporate travel spending

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Type of Travel Percentage Increase/Decrease

Incentives +61%

Conventions +44%

Conferences +27%

Traditional Business Travel

-10%

INTERNATIONAL CUSTOMER PROFILES

“To expand your vision, you must first understand your customers…”

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Top Tourism Destinations1. St-Barth's2. Malaysia3. Lebanon & Turkey

Regional Economic Indicators• Saudi Arabia 576.8 billion USD• United Arab Emirates 360.2 billion USD• Qatar 173 billion USD

Motivators for Selecting a Destination1. Extravagance & Recognition2. Infrastructure & Personal

service3. Visa & Language

Types of Tourism1. Luxury retreat 2. Business3. Events & Shopping

Top business destinations1. London2. Geneva & Luxemburg 3. Dubai

MIDDLE EAST

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Culture• Hospitality• Collectivism• Islamic life

Top Destinations1. Hong Kong/Macao2. Australia3. Dubai/Singapore

Regional Economic Indicators• 100 mln. outbound tourists are expected in

2014• The fastest growing outbound tourism

market in the worldMotivators for Selecting a Destination1. Sightseeing 75%2. Dining 65%3. Shopping 51%

Types of Tourism1. Leisure 2. Business 3. Educational tours

Important Statistics1. 62% prefer to travel independently2. 4,3 trips per year3. 1,7 week per stay4. Travel to Europe between May and

September

CHINA

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Top Destinations1. South East Asia/ Asia Pacific

(Singapore, Malaysia, Thailand)2. Dubai3. Nepal4. USA, Australia, Europe

Regional Economic Indicators• One of the fastest growing markets in the world (4,7% in 2012)• Rising disposable income• Outbound tourist departures: 20.5 Mil (2015), 50 Mil (2020)

Motivators for Selecting a Destination1. Sightseeing- 64%2. Explore new countries- 47%3. Leisure- 25%

Types of Tourism1. 40-65% business2. 35% leisure/ visiting friends and

relatives/ immigrants

Destination Selection1. Nature and environment- 62%2. Culture and art- 53%3. Safety- 50%

INDIA

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Top Destinations1. United States2. Neighbouring Countries + Caribbean3. Europe (France, Italy, Germany, Spain)

Basic Information- 590 million Latin Americans

- 85%+ speak Spanish- Biggest potential in Brazil,

Mexico & Chile Motivators for Selecting a Destination1. Proximity (ease of access, direct flights)2. Language Barrier (Spanish)3. Visa Requirements

Types of Tourism1. City holidays (47%)2. Touring holidays (27%)3. Sun and Beach Holidays (12%)

Relevant Information1. Outbound trips grew 22% since 20102. Outbound spending grew 28% since 20103. Biggest travel in Summer and Easter

Main Economic Indicators- Expected growth of 3.4%+- Increase Disposable Income- Increasing Middle & High class

LATIN AMERICA

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BENCHMARK:DUBAI

Fierce Competitor? or Valuable Mentor?

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PROFILE

Remains one of the most popular travel destinations in the

world

9.89 Million international overnight visitors in 2012… Up

8.2% from ’11

What drive’s Dubai’s Popularity?

Place Branding & Cohesive Vision

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DUBAI BRAND DEVELOPMENT

Brand axes Strategicpositioning

Primary attributes

Business & Trade “Global business and trading hub”

Specialized free zones, large commercial venues

Tourism & Hospitality

“Global touristic destination”

Luxury hotels, state-of-the-art architecture, leisure and entertainment facilities, premium services, heritage and cultural attractions, ease of access

Events “Global powerhouse in the events industry”

Sports and cultural facilities,leading conference and exhibit centers, complimentary services

Healthcare “Global healthcarehub”

Integrated platform for healthcare and wellness services

Real Estate “Exclusiveproperties”

Unique developments, green-driven

Entertainment “Global entertainmentdestination”

‘It’s happening’- world-class concerts, venues , innovative attractions

Dubai… a key benchmark! 18

ROLE to increase the awareness of Dubai to global audiences and to attract tourists and inward investment into the emirate

RESPONSIBILITYTo organize the marketing of tourism and commerce for Dubai

DTCM is the key strategic thrust area of the national 2015 Plan

VISION:To position Dubai as the leading tourism destination and commercial hub in the world

MISSION:DTCM's mission is to strengthen the Dubai economy via The development of sustainable tourism. The provision of a unique visitor experience combining quality service and value for money. Innovative promotion of Dubai’s commercial and tourism opportunities. Further development of partnerships with our industry stakeholders.

ORGANIZATIONAL STRUCTURE IS FOCUSED ON CUSTOMERS to interact with it efficiently to transact information and business.

TRAVEL TRADE

INVESTORS

VISITORS (BUSINESS AND LEISURE)

GOVERNMENT AGENCY

Eco-tourism

Spa-tourism Education Tourism

Sport-tourism

Business-tourismHealthcare-tourism

Cruise-tourism

DTCM responsibilitie

s:

Licensing and classification of hotels, hotel apartments, tour operators, travel agents and all other tourism services.

Supervisory role covers archaeological and heritage sites and to ensure sustainable and responsible tourism for Dubai.

Training programs for personnel from the tourism industry to ensure that Dubai’s tourism industry continues its world-class development with world-class people involved at all levels.

PIVOTAL ROLE TO PROMOTE DUBAI ECONOMIC GROWTH AND PLACE EXCELENCETHROUGH

COMMUNICATION BENCHMARK: DUBAI ONLINE PRESENCE

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GAP ANALYSIS

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Middle

East

MONACO existing capabilities GAP

China

Latin

America

BRANDING SOLUTIONS

DUBAI Strengths

What does Dubai have that Monaco does

not?

• Strong perception• Client

communication• Strong media

presence• Capital• Technological

infrastructure (WiFi)

• Foreign culture attractions

• Ease of access (VISA and travel)

• Innovative tourism model integrated into business model

LUXURY, ATTENTION, SPACE, TRANQUILTY,

SAFETY AND ENVIRONMENT

• Globally renowned luxury destination that boasts an “Art of Living”

• Rich historical heritage

• Live royal experience

• Glamorous events• Mild Mediterranean

climate• Political stability• Ultimate safety

• Clear, concise vision

• Strong communication strategy

• Ease of access to major hotels and airports

• Clear understanding of foreign cultures

• Personalized tourism packages

• Financial and commercial hub

• Safety

PROPOSED STRATEGIES & SOLUTIONS

Updating the Vision of Monaco through Place Excellence Analysis

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STRATEGY OVERVIEW

PLACE EXCELLENCE & CONTEXT MANAGEMENT:

Clear internal/external vision & communication

Complete harmonization between key stakeholders

Expansive and scalable vision

“The set of perceptions, impressions, ideas and feelings that consumers have for the product

compared with competing products”

Eco-tourism

Spa-tourism Education Tourism

Sport-tourism

Business-tourismHealthcare-tourism

Cruise-tourism

DTCMONACO

Proposed Solutions

1. Communications Strategy2. Accommodation & Hosting Policies 3. Expanded Partnerships 4. Cultural & Event Policies for Strong Brand

Perception

PIVOTAL ROLE TO PROMOTE MONACO ECONOMIC GROWTH AND PLACE EXCELENCE

THROUGH

“ONLY MONACO”

1. COMMUNICATION STRATEGY

1. Updated digital “portal” tied closely with Monaco’s vision

2. International publications targeted towards clients in home countries

3. Improved media preference. Television, movies, and partnerships with target countries

4. Digital Applications- multilingual and targeted

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2. ACCOMMODATION & HOSTING POLICIES

Common Needs Amongst Clients

•Cultural understanding, loyalty, & acceptance

•National language speaking staff

•Cultural dining experiences

•Events and attractions tailored to specific cultures

•Large and available WiFi Coverage

Specific Needs Amongst Clients

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Latin AmericaHighest level of

convenience, at the lowest price… even

for luxuryLess time in hotels

Middle EastDining- Halal

Spacious accommodations

Limousine services

ChinaCultural specific dining

in hotels/immediate living areas

Early check-in/check-out

payment facilities Cultural-specific entertainment

•Quintessentially & Other Global Concierge Services Global private members concierge service / luxury lifestyle management company Direct access to HNW in countries all around the world

63 offices around the world

Amongst its services it create and suggests trips for members

Offer Monaco related events to members

Already knows what HNW are looking for in their holidays and has benchmark of the best hotels/restaurants/events around the world

Has complete information on when members travel, how much they spend > complete target customer profile Helps Monaco organize events during those periods

3. PROPOSED PARTNERSHIPS

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To create pool of new (additional) unique internationally recognizable events for all targets group

and nationalities

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Monaco Lux Show Idea Couture

Show / festival with

Hermes,

Prada, LV, Cartier etc.) and

their Foundation

fair / forum for all ideas

technologies which

drive the world in IT,

fashion, health, science,

intellect based areas.

Education etc.

Gourmet Art

Gastronomy Shows,

gastronomy master

class with best of the

best chef of the world

Honeymooners

Evoking emotions

Strong purchasing and

repurchasing potential

Increases word-of-

mouth awareness

Universe for Kids (supported by Prince family): excellence model of life

Monaco Summer School for Kids:

Kids Chess Grand Prix

Artist & Painters & Producer Summer School for talented kids

Kids Parliament School for young Leaders

Masters Class from Sport Stars

Kid-friendly events to attract the RESIDENCE clients

Cultural Tourism | WOW Factor

4. CULTURAL & EVENT POLICIES

CONCLUSION Every Ending is a New Beginning

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CONCLUSION & KEY TAKEAWAYS

•Place Excellence requires a full holistic approach

•Though context management, creative solutions and communication, the continued vision of Prince Albert will attract clients the world-over

•All players interact in a clear and concise manner… communication to local business, government, academia and society a must

These theories proven in our Dubai Benchmark

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S.A.S Prince

Albert’s Vision

of Excellence

CONCLUSION & KEY TAKEAWAYS (CONT.)

Practical implementation:

Improve on Monaco’s brand DNA, Communication Strategies to attract all target groups

•Communicate needs of international target clients to local businesses

•Emphasis on existing strength: Prince’s heritage:

Royal wedding, Luxury events, Gambling

•Improving current capabilities Digitalization & online portals

International Communication Strategies

•Continuing past expertise: Financial sector

•Continue to innovate, improve and expand on current communication structure

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SPECIAL THANKS TO OUR CONTRIBUTORS:

H.E. Henri FissoreAmbassador Prime Minister Office, Monaco

Axel HoppenotExecutive Vice President, Sales & Marketing Monte-

Carlo SBM – Hotels & Casinos

Jean-Claude MessantManaging Director of the HOTEL METROPOLE

Monte-Carlo

Aymeric PazzagilaAdministrator MWBO

Jorgen ErikssonFounding Partner of Bearing Group

Katerina TerentyevaUAE IUM MBA Alumni

Mandirra PuriIndia/UAE IUM MBA Alumni

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1. www.imsee.mc

2. www.monaco-welcome.mc

3. Global Competitiveness Report 2013-

2014,

http://www.weforum.org/reports/global-

competitiveness-report-2013-2014

4. World Trade Organization Report 2013,

http://www.wto.org/english/res_e/reser_e/wtr_

e.htm

5. Harvard Business School Analysis,

“Monaco’s Tourist Cluster”.

http://www. ibobel.pbworks.com

Key Sources