Executive Summary This report details an evaluation of the tourism market place in the South West of England looking at changes in the market and the factors (PESTE Political, Economic, Socio-cultural, Technological and Ecological) affecting the tourism industry. A segmentation analysis was carried out looking to identify target customer groups for Tintagel Castle, Cornwall. The principal groups identified were the visiting friends and relatives category and family groups including pre-family, with family and post family. The buying criteria that the target groups will apply when deciding which attraction to choose to visit were briefly considered.

Table of Contents Page 1. 0 Introduction 3 2. 0 Market Place Evaluation 3 2. 1 Segmentation 4 2. 2 The Segments 5 2.

3 Targeting the Segments 7 2. 4 Buying Criteria of the Segments 8 3. 0 Conclusions 9 4. 0 References 9 5. 0 Bibliography 10 Appendix 1 - Tourism in the UK Appendix 2 - PESTE Analysis of the South West Tourism Market 1. 0 Introduction In order to maintain or increase the number of visitors to the castle it is important that we understand and meet the needs of the visitors.

As such it is important that we can analyse the market place and identify who are our primary visitors and target our marketing at the groups or "segments" that will maximise our visitor numbers through appropriate channels. To determine market segments and decide which market segments to target it is first necessary to carry out a market place evaluation. Broadly this would encompass political, fiscal, economic, legal, technological and ecological factors that will affect the tourism industry in the UK as a whole and more specifically issues relating to the South West. o Aims and Objectives To carry out a market place evaluation of the South West of England region and to conduct a segmentation analysis of the local population. To determine the relevant target customer groups and consider the criteria they will apply to the buying decision. 2.

0 Market Place Evaluation Tourism in the UK is not a growing industry for many reasons, see Appendix 1. The South West plays a major part in this industry attracting more visitors than any other UK region (outside of London) 1. This means that tourism in the South West is the primary source of employment and prosperity. See Appendix 2 for a full PESTE analysis of the local market place. 2. 1 Segmentation Segmentation is the dividing of the market by identifying and profiling distinct groups of potential customers.

These groups of potential customers would share similar wants and needs. These groups must be viable and reachable to be used as targets. Broad segmentation groups would include geographic, demographic and physcographic factors. Geographic factors would encompass both overseas visitors and UK holiday makers.

Demographic factors which would be relevant would include income, social class, life stage; pre-family, with family, post family. Physcographic factors are also important as people with different lifestyles, personalities, and values will regard the South West in very differing views. By targeting the market segments that present the greatest opportunity and customizing our services and products, and thereby selecting the best distribution and communication channels it should be possible to increase visitor numbers and maximise profits. To target the segments it would be best to draw up a marketing mix for each segment presenting the best opportunities.

Before doing this it is necessary to make sure each segment is viable. That it is measurable; is there enough people in the segment to be sustainable; actionable, can we adapt to suit our offering to this group; and accessibility, can we reach our target market both geographically and through media 2. Market Research has showed the following breakdown of visitors' profiles to attractions in the South West in 20021 see Table 1 below. Type of Visitor % Local Residents and their visitors holiday 36. 1 UK holiday makers 39. 1 Overseas holiday makers 10 Groups 11 Business 0.

7 Others 3. 0 2. 2 The Segments o Visiting friends and relatives (VFR) VFR is a very important category with the South West attracting more VFR trips than other UK regions. Last year 75% of adults in the SW region had visits from friends and relatives 1. Tintagel is an ideal destination for this group. Characteristically this group has and even distribution through the year with a peak at Christmas.

They have a higher tendency for younger age groups; this is reflected in the relatively low household income. The majority will travel by car and therefore are very mobile. Many will be visiting for a christening or wedding or other family occasion but a large number will combine this with a holiday. o Family Groups Pre-family holiday breaks These are characterised by younger age groups, couples and singles either traveling alone or in groups. They have a high disposable income as they do not have so many responsibilities and will tend to head for livelier towns and cities. They look for a wide variety of activities and are quite likely to visit Tintagel, if it is not too far to travel.

They would want to be with similar groups of people, so not older people or families. Internet and independent travel will be a strong feature for this group and many may arrive at short notice with little planning. Family Holiday Breaks Usually the less affluent in this group make a visit their main holiday but would rather go abroad. The trip to the South West may often be a secondary trip for people within this category who have a little more disposable income.

The age group within this group is very wide, many having younger children. This leads to Devon and North Cornwall being very important due to the travel distance and time taken to get there, they will be drawn to the coastal and countryside areas. The wife / mother is the primary decision maker on these days out. This group will be seasonal, only really visiting during school holiday periods.

Many families are looking for a 'break' from the children as well as looking to spend time participating in activities with them. The beaches in the area are free and therefore a big attraction when the weather is good. Therefore it is necessary to be attractive price wise as a family day out can be expensive. A good idea is to promote the beach near the castle (however access to the beach is difficult). Older children are more likely than young children to appreciate the historical aspect if it is portrayed in the right way. Post Family Holidays This is a very large segment for the South West market and the overall age in the UK rising so this segment is becoming larger.

The overall age is probably 55+ and they usually would not be looking for activities primarily aimed at younger age groups. Attractions that would appeal are historic buildings, gardens, and leisure walks, all of this available at Tintagel. They primarily want breaks outside of school holidays as they will be avoiding families and children and will be more interested in exploring the countryside, visiting gardens and historic properties. Some of the older members of this segment will have mobility issues which would prohibit them from visiting due to the steep steps up to the castle.

o Activity Based or Special Interest Holidays or Tour Groups People may be visiting as part of a walking club or historical group or a coach tour. These would normally be organized for the individual. This is not a large group and may encompass older post family groups. Many in this group will be looking for value for money and hoping that by traveling as a group they will be getting discounted entry to attractions but a castle visit is probably high on the agenda for the group. o Overseas Of overseas visitors Americans are largest in numbers and are drawn to historical sites but as the dollar has been weaker and due to global terrorism situation many Americans are staying in and holidaying in the US.

The UK is an expensive destination for many foreigners to visit but for many the cultural and historical aspects of the UK can overcome the cost. Overseas visitors are likely to spend more than UK holiday makers. 2. 3 Targeting the Segments So having identified the segments it is necessary to identify which segments should be targeted. It is necessary to consider the viability by looking at the attractiveness, profitability and accessibility of these segments. It can be seen from Table 1, page 4, that the local residents and their visitors combined with the UK holiday makers are by far the largest numbers of visitors to the South West.

Overseas visitors are in the minority so due to size and accessibility of this segment it should not really be considered viable. Many people within this group will naturally fall into other segments once they arrive in the South West. Group visitors again are a smaller percentage of the visitors to the region and are not really a viable group for targeting. However many traveling with tour companies may find Tintagel Castle on their tour itinerary as most travel organisers to the South West will be familiar with Tintagel Castle, this also makes targeting this group unattractive. This leaves the VFR group and the family (pre, post and family) groups. All these groups are viable; they account for sufficient visitor numbers, the castle is able to offer something that suits their needs and wants, it is possible for us to reach and target these groups.

The VFR group is perhaps the most viable group due to the ease of access for targeting. Most of the visitors themselves will not be responsible for the decision on where to have the day out but the local host will be. This makes marketing locally very important. When developing the marketing mix for these groups it would be necessary to take into account timing due to the seasonal variation in the visitors with family groups coming during school holidays, post-family groups coming outside of school holidays. 2. 4 Buying Criteria of the Segments o Visiting Friends and Relatives (VFR) The wants and needs of this group are usually (combined with hosts) interesting places to visit or days out.

VFR will be looking for an activity that will be sociable and affordable. The hosts need to see the castle as something they can be proud to have locally and many of the hosts will be repeat visitors. o The Pre-family Group This group will need to have easy access to information and directions, the internet being an appropriate media, as availability of information will strongly influence their choice of attraction. They will be looking for an interesting and pleasant sightseeing day. o The Family Group This group is looking for entertainment for fair or wet weather and to include activities suitable for children. They will be looking for educational, interesting and fun days out.

Cost is quite important for families. Families with very young children they will be looking for push-chair access which may be an issue due to the steep steps to the castle. o The Post Family Group This group are likely to be looking for such a historical site as a day out. It needs to offer value for money and be a pleasant, enjoyable and relaxing visit. 3. 0 Conclusions It has been shown that the overall UK tourism market is not growing but that the South West region has a substantial share of that market.

From the segmentation analysis carried out it was determined that the visiting friends and relatives group and the UK family groups were the best groups to target and the criteria that they will apply to the buying decision was discussed 4. 0 References 1 LEONARD, G. , State of Tourism South West - Intelligence Report [online], South West Tourism, Kingsbury Shaw, August 2003 [cited October 7 th 2003]. Available from: web > 2 KOTLER, P.

Marketing Management. 11 th ed. USA: Prentice Hall, 2003. ISBN: 0-13-0497150. 3 Promoting British Tourism [online], Her Majesty's Stationary Office, Norwich. [cited October 9 th 2003].

Available from: web > 4 Key Facts of Tourism for South West England 2002, [online], STAR UK (Statistics on Tourism & Research), Exeter, 2003 [cited 9 th October 2003. Available from: web > 5 3. 3 Billion pound foot-and-mouth Cost to English Tourism [online], Ananova Ltd. , [cited] 7 th October 2003]. Available from: web > 6 Germany - Economic Conditions and Prospects [online], UK Industry, Marketing Advice for the UK Tourism Industry, [cited 9 th October 2003]. Available from: web > 7 Inbound Tourism - UK - June 2001 [online], Leisure Intelligence Travel, Mintel International Group Ltd, [cited 9 th October 2003] Available from: web > 5.

0 Bibliography McDONALD, M. Marketing Plans. 5 th ed. Oxford: Butterworth-He inman, 2002. ISBN: 0 7506 5625 5. JOBBER, D.

, FAH Y, J. Foundations of Marketing. Maidenhead: Mc Grow Hill, 2003. ISBN: 0 07 7098668.

Appendix 1 Tourism in the UK Tourism in the UK is one of the largest industries contributing 74 billion pounds in 2001 and employing 2. 1 million people, about 4. 5% of the UK economy 3. It is however not a flourishing industry as the annual bed space occupancy in the UK shows this 5. 1997 1998 1999 2000 2001 2002 Bed-space Occupancy % 44 43 42 42 42 44 On a global scale there are a number of reasons for the lack of growth in the industry; including the strength of the pound, making the UK very expensive for many foreign visitors and the Asian economic crisis in 1998.

In more recent times the foot and mouth disease outbreak in 2001 reduced tourist numbers, it was estimated that the tourism industry lost 3. 3 billion pounds through foot and mouth 5. This was followed by the terrorist attack in the US which deterred many people from traveling. 2002 showed an improvement but the figures are likely to be down again for 2003 owing to the war in Iraq and the outbreak of SARS which will have curtailed tourist activities.

Other issues have included the opening of the Channel Tunnel and decreased air fares which have made it easier for people to visit the UK. Conversely it is easier and more affordable for UK residents to go abroad. Studies carried out have shown that the UK tourist is more important to the South West than the overseas visitor. Many people see public transport as being a problem in the UK with some very publicly highlighted train crashes raising safety fears, and service disruptions due to many factors causing reliability fears. Appendix 2 PESTE Analysis of the South West Tourism Market o Political The UK's stance on the Iraqi war has not been popular with many countries and the UK may be boycotted by some overseas visitors for example Germans strongly disagreed with the Iraqi policy 6 but Germany, after the USA, has the highest number of visitors to the UK (UK Tourism Survey 2002) 4... The abolition of 'duty free' within Europe may reduce the number of UK tourists traveling abroad.

Overall the UK is seen as a relatively stable country, although there are some fears regarding terrorist attacks. o Economic and Occupational This is very important with job status and earnings have a large bearing on where and how long people will holiday for, the South West is often seen as a second, shorter holiday with many people, in the position to do so, taking overseas holidays as the main holiday. Many less affluent people will choose to take a UK holiday, those who cannot afford to take a longer break and have less time may not travel all the way into Cornwall but Tintagel is not as far as many other attractions. Transport and travel in the UK is expensive, many people see public transport as prohibitively expensive for families and groups and shows that between 71% and 85% used the car as the main mode of transport for their trip, despite the high fuel prices 4.

o Socio-cultural People are greatly affected by culture, this is the fundamental determinant of a person's wants and behaviours 2 p 183 and will define the social classes. Peoples decisions regarding vacations will be greatly affected by reference groups 2 p 188 primary reference groups being family and friends which are highly influential on decisions. This is important for the South West as large numbers of tourists fit into the VFR (visiting friends and relatives) group. Market research has shown that within the social groups women usually make or have significant influence on decisions regarding holidays 2 p 188. Other social factors include roles in society, status, clubs and organisations many people perhaps visiting as part of a nature society, rambling club, historical interest group or other organized tour.

On a personal level, age and status in the lifecycle will be important with holidays greatly shaped by families i. e. ; singles, young couples, young families, older families and empty n esters (older couples whose children have left home). For example couples with very young children or the elderly or those with limited mobility may not find the castle suitable for access issues. Younger couples may be looking for something more exciting. Therefore these changes in lifestyle are important.

People's beliefs and attitudes to the SW as a whole and their perception of it is very important. The perception of the South West as a region is crucial to the success of the region. It figures favourably in many reports with people citing good beaches, better weather than other areas of the UK, a wide range of activities, good scenery and countryside, a friendly and relaxed atmosphere. However on the downside other people also perceive the South West as being heavily congested and having bad weather, also the majority of people surveyed would rather go abroad.

o Technological Changes such as the opening of the channel tunnel have made travel for Europeans easier though this may not be significant for the South West. The increasing use of the Internet has led to a decrease in tour groups 8 and an increase in the number of independent travelers. o Ecological The weather in the UK is unpredictable and unreliable; this deters many overseas visitors and UK visitors alike. However the South West region is perceived as having some of the best weather in the UK and combined with the long sunny conditions of 2003 this may be a plus point for the future....