Perceptions Research. Generating Strategic Insight for Cornwall. Contacts: Ben Moxon & Iain Gibson

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1 Perceptions Research Generating Strategic Insight for Cornwall Contacts: Ben Moxon & Iain Gibson

2 Introduction Arkenford is a leading research agency in the UK that specialises in tourism and leisure The majority of our work in this sector is conducted on behalf of destinations in the UK and abroad, and used to inform marketing and investment strategies about the developments most likely to: Encourage repeat visits among existing visitors Attract new visitors Increase the value of visitors This is a presentation outlining findings from a recent research project we conducted on behalf of Cornwall This information will provide the necessary insight and evidence to inform the development of a tourism marketing strategy for the county

3 Objectives The key research objectives from this study are: To identify visitor and non-visitor perceptions of Cornwall and key destinations in the county To provide a profile of which market segments are most likely to be interested in different destinations To research the extent to which the Cornwall brands constituent elements are understood and identified From this project we can deliver insight and a greater understanding of what will increase visitor numbers by: Defining who to target Understanding each target market s motivations

4 Methodology Nationally representative online survey Utilised an online panel Respondent screened out if they had never heard of Cornwall Approx. 30 people out of 2,000 illustrating extensive awareness of the county as a place to go on holiday in the UK Final sample of 2,013 Fieldwork conducted November 2010

5 The ArkLeisure Model ArkLeisure is a whole-market researchbased segmentation of the UK holiday market Being included in most of the on-going portfolio of tourism research that Arkenford carries out ensures that our understanding of the segments is as rich as it is deep we know who does what, and why ArkLeisure separates the mass-market from the independent market, according to their values Which can affect how we communicate with each segment based on individual motivations and purchase drivers It also defines those segments willing to take risks on new options vs. those who are risk averse Allows us to understand who is looking for new challenges or experiences Innovators Style Hounds Mass Market High Street Followers Habituals Functionals Sustainers Cosmopolitans Discoverers Traditionals Independent Market

6 The Model % of UK pop n 13% Mass Market 18% HIGH STREET Main stream early adopters Followers of high street fashion Care what others think Happy to buy packaged options FOLLOWERS Strongly influenced by what others will think Don t want to be seen as old fashioned Less active Slow to adopt Avoid risk HABITUALS Largely inactive, low spending group Very traditional, strongly resistant to change Risk adverse Value relaxation, peace and quiet 8% Sustainers STYLE HOUNDS Young Free Single, impulsive Fashion counts Brand counts Looking for fun with friends Most not seriously sporty 10% Innovators COSMOPOLITANS Strong, active, confident Style & brand important, but as an expression of their self made identity. High spenders especially on innovation and technology Looking for new challenges, new experiences, Globetrotters Value individual attention & service FUNCTIONALS Self reliant Price driven e Value function over style Traditional values, but interested in new experiences, not risk advers DISCOVERERS Independent in mind and action Little influenced by style or brand but interested in new options Buy on function and value to them Looking for new and educational experiences TRADITIONALS Self reliant internally referenced Slow to adopt new options Strong orientation towards traditional values 9% 11% 19% Independent Market 12%

7 Destination consideration Cornwall has similar consideration levels as the Lake District and Devon These seemingly make up a Premier League of tourism destinations Those who had never heard of Cornwall were screened out

8 My Type of Place for a holiday is Cornwall MY TYPE OF PLACE FOR A HOLIDAY Cornwall Who is most likely to see Cornwall as My Type of Place? Traditionals, Discoverers, Cosmopolitans and Style Hounds Older Age Groups Family with children over 5, empty nesters Previous Visitors

9 My Type of Place other destinations

10 My type of thing for a UK holiday Top left: traditional seaside family holiday. Lots of laid on entertainment and good family beaches Bottom: history, heritage and scenery. More relaxed pace of holiday Discoverers position dictated by having no interest in art but will be interested in the beaches and the history and heritage Cosmopolitans will try a bit of everything. Most likely segment to be interested in art but also some of the more luxurious offerings

11 My type of thing for a UK holiday Top left: traditional seaside family holiday. Lots of laid on entertainment and good family beaches Core Cornish Product Summer / Beach Family Holiday Core Cornish Product Shoulder Period Exploration / Touring Older Couples Emerging Cornish Product Niche Markets Potential to add value to core product Bottom: history, heritage and scenery. More relaxed pace of holiday Discoverers position dictated by having no interest in art but will be interested in the beaches and the history and heritage Cosmopolitans will try a bit of everything. Most likely segment to be interested in art but also some of the more luxurious offerings

12 Demographics by Cornwall visit history Youngest ages least likely to have visited previously Comes with experience Most recent visitors tend to be in the age group Cosmopolitans and High Street dominate the profile They are the two largest segments nationally

13 Competitive Destination Visits Yorkshire Devon Cornwall Lake District North Wales Somerset Dorset Dorset Coast West Wales Peak District Cotswolds Isles of Scilly Destinations visited in last 2 years 3% 11% Devon 14% 16% 16% 15% 15% 19% 21% Somerset 22% 24% 28% 0% 5% 10% 15% 20% 25% 30% West Wales Yorkshire is more likely to have attracted a visit in the last 2 years than any other destination tested Generally the destinations tested all attract a similar demographic / segment profile Dorset attracts an older audience, North Wales a younger audience (and more mass market segments) The index chart below indicates the segments that are more likely to have visited other destinations (index listed in red) North Wales Dorset Coast Isles of Scilly Yorkshire Lake District Cotswolds Peak District Style Hounds Cosmopolitans High Street Discoverers Followers Traditionals Functionals Habituals Dorset

14 Types of holidays suited to Cornwall Cornwall perceived to suit longer family holidays and holidays to relax and unwind Do not need to be mutually exclusive Less likely to be seen as a couples weekend break destination Competitive destinations increasingly tap into this year round market Nor a destination to take part in fun physical activities Most likely because people are not interested rather than Cornwall not being suited

15 Type of holiday most likely to take to Cornwall Cornwall is well perceived as a family destination Over half would take a longer family holiday or a holiday to relax and unwind Relaxation much more of a hook than an activity break Only 3% would go for a physical activity break

16 Different types of holiday suited to Cornwall A Family Holiday (35%) Cosmopolitans / Followers Under 44 / young families London / SE Holiday to Relax (26%) Wide ArkLeisure perception Aged Families North of England / Midlands Weekend Break with Partner (16%) Style Hounds / Traditionals Youngest / Oldest Segment Pre / Post Family South West / Wales A Family Short Break (13%) Discoverers / Style Hounds Younger age groups / families Yorkshire / West Mids Holiday with Group of Friends (8%) Discoverers / Style Hounds / Functionals and age bands Pre family / older family London / NW / Midlands Physical Holiday (3%) Functional / Habituals Older Age Groups Post Family Midlands / Scotland

17 Index of most likely time to visit Naturally school holiday visits are dependent on life stage Older people will go outside the school holiday periods

18 Associations of Cornwall Strongly associated with the coast And a tourist friendly/ family friendly destination This is why people come to the region Lower association with rural and industrial heritage environment

19 Cornwall product association With the region being strongly associated with the coast it is no surprise to see the product association being coastal related Historical sites has a stronger association than gardens Industrial heritage and arts and culture are not strongly associated with Cornwall

20 Cornwall values association Natural and traditional are the two strongest associations Few think of Cornwall as luxurious, stylish and contemporary Some of the product would fit this description but not necessarily the region

21 Functional associations Seen as a place to explore A safe tourist destination aimed at the whole family Quality is half way down the list Could be based on product offer Caravan parks and traditional bucket and spade offer

22 Cornwall perceptions Style Hounds, Followers and High Street grouped around the beaches and well known tourism offer Traditionals, Functionals and Habituals have more of a perception of remote coastline, gardens and historical sites Things they are interested in Cosmopolitans have a perception of a more contemporary and stylish destination This is what they are likely to choose from a holiday

23 Cornwall perceptions Traditional Bucket & Spade Family Holiday Coastal Exploration Shoulder Period Couples Contemporary / Stylish Shoulder Period Couples Arts & Culture Shoulder Period Couples Style Hounds, Followers and High Street grouped around the beaches and well known tourism offer Traditionals, Functionals and Habituals have more of a perception of remote coastline, gardens and historical sites Things they are interested in Cosmopolitans have a perception of a more contemporary and stylish destination This is what they are likely to choose from a holiday

24 Cornwall perceptions CORE PRODUCT POTENTIAL TO DEVELOP Style Hounds, Followers and High Street grouped around the beaches and well known tourism offer Traditionals, Functionals and Habituals have more of a perception of remote coastline, gardens and historical sites Things they are interested in CORE PRODUCT POTENTIAL TO ENHANCE Cosmopolitans have a perception of a more contemporary and stylish destination This is what they are likely to choose from a holiday

25 Cornwall Destinations South Cornwall North Cornwall East Cornwall West Cornwall Look at all areas Look for towns rather than areas of the county Look for things to do in each area of the county Parts of Cornwall Most Likely to Visit 6% 8% 7% 9% 17% 16% 37% 0% 5% 10% 15% 20% 25% 30% 35% 40% Respondents were presented with a map of Cornwall and asked to select the area they were most likely to visit The South of the county seemingly attracts most interest Recent visitors more likely to look at West of the county that people who have never visited Over a third indicate that they would look at all areas collectively

26 Cornwall destinations Most destinations have a similar proportion of people who have no opinion about the destination Plenty of scope to market their individual appeal Below the top 3 more people need to be persuaded to visit than say it is their type of place

27 Cornwall attractions Lands End and the Eden Project have very similar levels of awareness and appeal Tintagel Castle has average awareness levels Below this awareness becomes low Still a significant proportion that have no strong opinion meaning they could be persuaded to visit given the right message and appeal

28 Cornwall destination perceptions Not a great deal of differentiation among the destinations tested At the top of the map is Newquay with a distinct lively beach and surf offering At the bottom is Bodmin with a strong rural perception Large cluster of destinations in the middle = no perceived differentiation

29 Cornwall destination perceptions Not a great deal of differentiation among the destinations tested At the top of the map is Newquay with a distinct lively beach and surf offering Cornwall is the key brand At the bottom is Bodmin with a strong rural perception Large cluster of destinations in the middle = no perceived differentiation

30 Activities definitely undertake in Cornwall

31 Who would do different activities? Style Hounds like time on the beach (active & relaxation) as well as family attractions, gastropubs and shopping High Streets like lots of well known attractions and lots laid on for them to do Followers would most likely visit the well known family attractions and unlikely to seek new / different things out for themselves Habituals are one of the least active segments, happy touring around and enjoying the scenery Cosmopolitans will give anything a go and are more likely than most to try some of the less popular activities Discoverers will explore and partake in the more physical activities Traditionals will explore the area, visiting historical and garden attractions, and enjoy exploring towns and villages around the county Functionals also likely to explore the region visiting museums and art galleries as well as historic and garden attractions

32 Summary Cornwall is a premier league UK destination but it faces stiff competition for visitors from a range of other UK (and overseas) destinations Lots of other destination hold similar or greater appeal than Cornwall Cornwall has wider appeal than other destinations Whilst this has its benefits, it can bring problems. Other destinations are perceived to better suit specific needs of certain people / holidays / activities Very much seen as a family holiday destination Great for peak holiday season but does the county realise it s true potential out of season? Cornwall less likely to be seen as a place to visit as a couple These types of visits boost volume and value year round? How can Cornwall attract more leading edge visitors for this type of break? Strong association with Coastal Product Is appeal of coast strong enough to encourage year round visitors? How can we make Coast more appealing year round? Cornwall itself is the brand Very few stand out destinations but scope to increase individual appeal

33 Implications Change perceptions Or at least challenge peoples perceptions of Cornwall being just a coastal / Summer / Family destination How do we approach this? See Ansoffs Matrix EXISTING MARKET Existing Product Market Penetration Increase sales to existing market Penetrate more deeply into existing market New Product Product Development New product development for existing markets NEW MARKET Market Development Existing products sold to new markets Diversification New products sold in new markets

34 Next Steps... Key Objectives Strategic Direction What makes a visitor attractive? Prioritise Visitors Which segments do we want to target What can we offer? Evaluate product fit How do we get to them? Messages & Media

35 Sustaining and developing existing product Family Market Essential for Cornwall to sustain, reinforce and develop the current core offer The family market is well established, and Cornwall is seen as the place in for a family beach holiday in the UK Maintain PR activity spread the word that the Cornwall brand is the leading family beach destination in the UK Segments interested in this offer tend to be brand focused Product currently meets needs of mass market but must continue to develop to widen and maintain appeal Demonstrate core improvements current / lapsed market Quality of accommodation, food offer and events to entertain visitors There is potential to widen the net and attract more up market / higher value visitors (e.g. Cosmopolitans) if quality / style and chic product advertised alongside the core offer

36 Sustaining and developing existing product Couples Market The couple market is again well established, but Cornwall faces more competition for this market from UK and overseas destinations Benefit of the market is that they visit year round and can spend a few!! Product tends to currently attract older more traditional segments (Traditionals & Functionals) Need to add to current offer to increase competitiveness and appeal of Cornwall Tie in / push Industrial Heritage & Arts & Culture offer Widen the current shoulder period net to include other independent segments (Discoverers / Cosmopolitans)

37 Developing new themes to attract new visitors Public & Private sector investment from recent years means that there is a stylish / chic offering for visitors Cornwall is more than a traditional family seaside destination Currently leading segments are becoming aware of this and time will mean that word will get out Cornwall needs to reinforce and build on this reputation In addition Cornwall needs to provide an updated message to ensure people realise that Cornwall is becoming the stylish / chic short break UK option to recharge battery Campaign needs to be focused on quality / stylish / chic product as opposed to destinations Leading hotels / restaurants / cafes, etc Cornwall will be the back drop for the relaxation Make coastal perception work for Cornwall Play on natural strengths see a different Cornwall / Cornish coast every season

38 Target Segments Core Market (widespread appeal) FAMILY SUMMER Primary segments to target include Cosmopolitan, High Street Secondary segments to target include Style Hounds, Followers, Functionals Core Market COUPLES IN SHOULDER SEASON Primary segments to target include Traditionals, Functionals Emerging segments include Discoverers, Cosmopolitans, who will be more interested in emerging art and industrial heritage offer Emerging Markets STYLISH SHORT BREAKS Primary segments include Cosmopolitans, Style Hounds

39 Next Steps Visitor / Enquirer Recontact Survey Primary aim is to segment existing visitors and enquirers Allow for a targeted marketing approach for 2011 onwards Presents opportunity to test; Specific campaign concepts, Preferred communication channels Preferred communication media Current use of social media Etc

40 Appendix ArkLeisure Segment Descriptions

41 Cosmopolitans Strong, active, confident and stylish Do what they want rather than follow any particular fashion Comfortable trying new things that are out of the ordinary Happy to adopt traditional values when appropriate High-spending market Find it easy to justify buying expensive alternatives Risk takers a desire for things that are new and different They like new challenges, both physical and intellectual Life for this group is full and active, but with an appreciation of art and culture

42 Discoverers Independent individualists Not worried about what others might think Little influenced by style or brand unless it represents their personal values Value technology, new products, services and experiences Function far out rates style as a purchase driver High spenders on what they want but intolerant of substitutes or image based advertising Live a relatively relaxed pace of life Enjoy intellectual challenges but arts and culture are often negatively perceived Value good service which means enabling them to do what they want

43 Traditionals Self reliant and independent Hold traditional values Unlikely to justify spending on expensive alternatives. Value more traditional established brands Functionality is far more important than style and individuality Value, and will pay for, good service, which for them means recognition and individual attention Relaxed pace of life Enjoy intellectual challenges, arts and culture

44 Functionals Self reliant Very price driven and value functionality strongly over style Traditional values Not prepared to pay for fashion, style or individuality Not early adopters of new ideas Interested in new experiences, and happy to try things new to them Enjoy intellectual challenges, traditional arts and culture Resistant to spending Service is something that they expect as opposed to something they will pay extra for

45 Style Hounds Very brand/ fashion conscious Do not want to be seen as old fashioned Early adopters Risk takers - they live a full and active life Like to be part of the latest trends Strongly influenced by others Ready to spend money Will pay for better service which to them means more to do or more fun No real interest in sophisticated arts, or cerebral activities Fun and excitement is what defines a good time

46 High Street Like to take their information from other sources rather than discover things for themselves Keen to follow along when a fashion has been established Brand and style are more important than functionality or individuality Not the first to adopt new products but they will be ahead of the majority of the market An active segment that is moderately interested in intellectual pursuits, arts and culture Prepared to spend money on luxury which tends to mean more things

47 Followers Strongly influenced by their peers and by the media Unlikely to value things that are new and different They will try things that are new to them as individuals A similar aversion to what might be considered old fashioned as Style Hounds, but much less interest in new options Avoid risk and will take up options when others have shown they work Lag behind other groups when it comes to new products and services Little interest in intellectual challenges, arts & culture Service means freebie extras like Satellite TV and sun beds thrown in

48 Habituals Strongly traditional Strongly resistant to change preferring the familiar Value a more relaxed pace of life Purchase decisions made on function Fashion has little meaning to them Very risk averse and show little interest in new options or opportunities No interest in arts or culture Spend little money, on brands or service Find it hard to justify expense of any sort Often have limited income