Leveraging export brands through a

tourism destination brand

Received (in revised form): 9th January, 2002

JUERGEN GNOTH
is a senior lecturer in the Department of Marketing, University of Otago, New Zealand. His interests lie in the
area of consumer behaviour, especially tourism behaviour, destination marketing, cross-cultural research and
marketing ethics. His specific interests are in the area of destination branding, motivations, emotions and
intention formation.

Abstract
This study presents a theoretical and practical model of how the development of a country as a
tourism destination brand creates leverage for its products and services in export markets. To effect
this leverage, it is essential to conceptualise the tourism system as a network of interacting service
providers rather than as a channel of distribution. This aids in the management of the multiplexity
of interactions between tourists and the destination’s products and services that affect the
development and success of the brand in leveraging export products. The theoretical models of the
tourism system, the tourism product (experience) and country brand are operationalised and fused
so that a detailed process emerges which describes how the brand can link the tourism experience
with the products and services that facilitate it. The systematic management of this facilitation
process permits a gradual extension of the tourism brand attributes to other products and services
destined for export in four stages.

INTRODUCTION unique opportunity to showcase their

The extant literature on branding in products and services to visitors, con-
relation to the country of origin of vince them of their quality and
products1 is a reflection of the potential benefits, and turn these tourists into
of a country to function as an umbrella customers of their products in the
brand. This potential is a result of its respective overseas markets once they
power to boost recognition, exposure have returned home. The lack of
and credibility of national brands in examples of countries making full use
international markets by generating of this opportunity must be taken as
synergies that favourably enhance con- evidence that this process is not as
sumers’ purchase decisions. In this straightforward as it may appear at first
context of identifying and managing glance. Indeed, as far as could be
means of leverage,2 tourism, a major ascertained by this author, there is no
export industry, has received little literature available that would develop
attention. Rather than revisiting the or describe a systematic approach of
issues surrounding brands and country leveraging export products through
of origin, this paper discusses oppor- the tourism market. While there are
tunities that arise from the country as instances of collaboration, such as
Dr Juergen Gnoth
Department of Marketing, an international tourism destination those between Austrian or French ski
University of Otago, PO Box 56, brand and how it can leverage national equipment manufacturers and tourism
New Zealand

Tel: ⫹64 3 479 8446;

brands. managers of sporting events at destina-
Fax: ⫹64 3 479 8172; Producers in countries with an tions, these are only tentative or
E-mail: jgnoth@business.
otago.ac.nz international tourism industry have the isolated examples of alliances. There

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 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

are no strategic models available that may be common in traditional channels

would systematically link a country as of distribution. All of these features
a tourism destination brand to the have prevented a conceptualisation of
products and services designed for using a tourism destination brand to
export, in order to create synergies and leverage export products.
leverage in foreign markets. The reason To this end, the contribution of the
can be found in both the relative present study lies with the integration
novelty and structural idiosyncrasies of of a detailed analysis and description of
the tourism industry and its complexity, the tourism industry as a system, the
which combine to create seemingly integrative role of the tourist within it,
insurmountable problems for interested and how the features of the tourism
exporters. experience line up with those of
On the one hand, the discussion of tourism services and brands. This
whether tourism is indeed an industry essential analysis then leads to a
in the traditional sense, so vehemently tiered, practical model of developing a
debated by Neil Leiper and Steven destination brand: first, around the
Smith,3 is still ongoing and disadvan- attraction that exerts the pull to
taging the industry’s development as an the destination, followed secondly by
export industry (for example, un- branding the essential tourism serv-
like other export industries, tourism ices that facilitate the experience of
operators serving international tourists the destination. Some examples from
are not exempted from value-added France and New Zealand are then
taxes, thus discouraging more intensive created around the second and third
efforts to integrate and optimise in- level of brand development. The third
dustry structures and activities). On the level of brand extension branches out
other, there is no one single producer into non-tourism and other export
or tourism service provider responsible industries that support the tourism
for the total tourism product — that facilitation through primary and secon-
is, the tourism experience. (Package dary products. Lastly, the fourth level
tourism providers may be considered of brand development extends the
an exception, but even in these brand to a country’s other products and
cases the provider tries desperately services, whose producers may wish to
to accommodate the increasing trend join and leverage the image export
towards free and independent tourism markets have of the country as brand.
by offering increasingly more flexible, Each level of brand extension is fraught
modularised holiday packages from with its own problems.
which tourists can assemble the par- At the basis of their solution lies
ticular kind of service they require.) the detailed analysis and understanding
The complexity of this experience of the interactions between the com-
encompasses everything from trip plan- ponents of the tourism system, ex-
ning to departure, sojourn and return periences, services and brands. To reach
home. The complexity further in- a solution, the present study maintains
creases through the non-traditional a network approach.4 It can help obtain
manner of its production by distinct the structural clarity of the components
but disparate service providers who for a managed approach to the integra-
often do not even know each other, as tion and construction of a suitable

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GNOTH

branding model that facilitates leverage s/he chooses the operators of serv-
for exporters. ices, and thereby creates the channel.
These structural phenomena — mul-
tiple producers of a heterogeneous
THE SYSTEM OF TOURISM: service, and the consumer as channel
NETWORKS AND CHANNELS captain — are the main reasons why
it appears difficult for any national
Tourism and brands tourism industry to develop a branding
The World Tourism Organisation in exercise, especially since it requires a
Madrid, Spain, defines tourism as the high amount of managed cohesion
activity of people who are leaving their among product elements (eg the equiv-
home for more than 24 hours to stay alence of quality standards between,
at a destination for leisure or recreation say, transport and accommodation).
before they return home. In general, Similarly, branding also requires a high
the lack of attention paid to tourism level of control over brand attributes,
as a source for country branding is their communication and management.
surprising given that, for a consider- Consequently, if management struc-
able time now, all economic indicators tures are confusing, other producers
show that tourism has developed to be from primary and secondary industries
a promising industry for many nations would find it hard to be motivated or
which have either embraced it or have realise their opportunities of using the
tourism potential. The total demand tourism industry to showcase their
for tourism worldwide for 2001 has wares and assist in systematically build-
been estimated at US$4,495.5bn. It is ing the country as brand.
expected to contribute 4.2 per cent Managerially, the interface has two
to the world’s gross domestic product fundamentally different dimensions: the
and employs one in every 12.2 per- mechanics and dynamics of branding in
sons, which should grow to one in the context of export marketing to a
every 11.2 jobs by 2011.5 The growing foreign market-place, and marketing
importance of the industry and its goods and services to tourists from that
potential to expose large numbers of market within the country of origin. In
visitors to a country’s achievements the case of the foreign marketplace,
strongly suggest benefits that derive the opportunities of leveraging new
from an analysis of the links between brands on the back of more estab-
‘country’ as tourism destination, the lished brands have been discussed and
export economy and brands. analysed widely.7 A subgroup of that
Tourism is characterised by a rather literature deals with how the country
confusing complexity.6 There are a brand assists in giving leverage to new
number of generic industries that brands.8
generate the tourism product but, The second dimension relates to the
other than in highly packaged tourism export ‘industry’ of tourism itself. Its
products, rarely do we discern a clear contrasting — and most confusing —
marketing and distribution channel. characteristic is that the tourist comes
Increasingly, one finds the tourist to be to the producer to consume the
taking on the role of ‘quasi-chan- export product, rather than the other
nel captain’: as the tourist travels, way round as is usual for export

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 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

markets. Leveraging national brands off All countries own a ‘reputational

a country brand, while congenial as an capital’15 of one sort or another.
idea, is a complex issue. Tourists rarely Building a destination brand to develop
come to holiday destinations with the and enhance the country as brand
intention of becoming acquainted with involves giving particularly expressive
that country’s export articles other than and affective meaning to an otherwise
its tourism services. In order to mere geographic or political entity.
motivate tourists to learn about na- The brand promises ‘a memorable
tional brands, it follows that one travel experience that is uniquely
needs to explore the links between associated with the destination; it also
the destination, tourists’ holiday ex- serves to consolidate and reinforce the
periences and export products. It recollection of pleasurable memories of
involves identifying the drivers for the destination experience’.16
synergies that can evolve between The affective relationship between a
individual tourism sectors in develop- destination experience and the brand
ing and propagating the brand and its becomes the modus operandi for brand
attributes.9 These drivers are closely development and the systematic linking
related to motivations and what the of targeted products with tourists’
tourist experiences during his sojourn, experiences. In order to develop a
and how these link in with characteris- systematic approach to these central
tics of brands.10 issues of image and identity, and of
Countries and tourism destinations creating a destination brand with
do not lend themselves easily to leverage for export products, the
branding.11 It will always be easier to following paragraphs describe the
brand individual products than nations tourism product and how it is created.
for the well-argued reason that the Simultaneously, the structures of
image of a product brand is limited to the tourism system arise and the
a controlled number of attributes groundwork is laid for how country
whereas the images of a nation tend to brands can emerge through the
be dependent on the situations in association of the tourism experience
which they are instantiated.12 O’Shaug- with national brands, and how tourism
nessy and O’Shaugnessy13 also write can help generate loyal customers for a
that such images are usually fuzzy country’s export products. In addition,
due to the complexity of a country since success depends on an efficient
or nation. Nonetheless, in principle, management of the branding process,
the same rules for developing a critical impediments need to be
product brand apply to a country understood.
brand: attributes need to be selected,
developed and managed. The decision
as to what attributes are chosen cannot The product
be solved here. Suffice it to say, it needs The tourism product is the holiday
to be regarded as a process that experience. It differs substantially from
develops and expands over time. It other products in that it relates to an
involves the inclusion and considera- experience that is facilitated by a
tion of all stakeholders throughout the number of suppliers. Together, the
lifetime of destination and brand.14 suppliers form the tourism system.17

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GNOTH

The systemic elements are transport, tourist to visit. Be that as it may, tourist
accommodation, additional hospitality attractions invariably make use of a
services such as restaurants and/or destination’s geographical, physical and
shops and entertainment, and attrac- cultural resources, either in part or in
tions that exert the ‘pull’ for tourists to total, as indicated in Figure 1.21 While
come. These elements shall be referred the attraction is the focal point, the
to as ‘essential services’. (Strictly speak- facilitation of the experience becomes
ing, only food services are a further inseparably connected so that attraction
essential service. However, given that and services contain the pool of
holiday tourism is hedonic, the element attributes from which country brand
of ‘entertainment’ is never far away. managers can choose to create the
From the point of view that tourists brand. As the facilitation of the services
engage in ritualistic role play when on for experiencing the attraction involves
holiday,18 even the interaction taking a complex web of interacting parts,
place during mealtimes in a Bud- including both delivery and creation of
dhist monastery can be interpreted as the product, the traditional channel of
a form of ‘entertainment’.) All of distribution theory is considered insuf-
these elements have to be present ficient and network theory is preferred.
for the tourism product to come It offers the added advantage of
into existence. Traditionally, these ele- assisting in the creation and manage-
ments are ‘mere’ generic services that ment of brand values.
have developed within the national
economy. The tourism industry only
becomes tangible when a tourist uses The channel
these services during a holiday and the There are two startling idiosyncrasies
facilitators link up to become part of when it comes to analysing the tourism
the tourist’s experience.19 As destina- production process. First, although
tions develop, more and more dedi- crucial in the provision of tourism
cated tourism infrastructure appears. It services, service providers often act in
indicates an increase in trust and ignorance of each other. Secondly,
commitment to the industry, paral- the tourist thus emerges as ‘channel
leled by the need for an integrated captain’ in the holiday distribution
management model that considers the channel. We observe that increasing
systemics and dynamics of tourism numbers of tourists travel independ-
destinations.20 In any case, it is essential ently and tend to use service facilitators
not to lose track of the fact that the according to availability and motiva-
essential products and services at a tions for travel.22 They may arrive at a
destination all evolve from the attrac- destination with the help of one airline,
tions they support. but leave with another. They may
Attractions are, in general, land- travel with a variety of transport
based and the reason that requires the services through the destination, but
tourist to travel. This may mean that a neither the airline nor the individual
natural site or landscape is the attrac- transport company on the ground
tion. Or it may be a man-made knows who, specifically, the other
structure or activity in a distinct service providers are. By describing the
geographical space that draws the tourism channel, it will be shown

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 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

ATTRACTION

TRANSPORT ACCOMMODATION HOSPITALITY

Figure 1 The essential elements of the tourism system

how traditional service channel models service staff member.25 Product com-
profit from adopting concepts from position and service delivery are under
network theory. the operator’s control. In addition, this
Brands need to be managed and particular service may also include
controlled. It thus becomes a focal issue good advice and recommendations or
as to who controls and manages a even inducements to the tourist of
country brand, especially if its poten- future accommodation and attractions
tial national brand extensions — the ‘further down the road’. However, to
service providers together with their all intents and purposes, the service, the
potential partners from primary and responsibility for and the contact with
secondary industries — lack com- tourists end as soon as they have left
munity, common vision and control. the premises.
Furthermore, the question arises as to For the tourist, however, the facilita-
how to position companies strategically tion of this bed-night was only one
and expose desired markets to products part of a large number of service
and brands as tourists travel through encounters the tourist requires to satisfy
the destination, when these companies his motivations to travel. We may
follow a channel captain who is, at the thus view a string of accommodation
same time, the customer. providers who service the tourists’
Superficially, we are dealing with needs on their journey as a marketing
marketing and distribution channels:23 channel of sorts. Alas, concepts and
the tourist moves to and from the structures supplied by the channel
destination and makes use of a variety literature become less helpful once we
of services, all contributing to the acknowledge that service providers
holiday experience. Marketing chan- from other industries, such as transport
nels emerged to form ‘sets of inter- and hospitality providers, need to be
dependent organisations involved in included too: first, as channel members,
the process of making a product or secondly, as channels in their own
service available for use or con- rights with a clearly differentiated
sumption’.24 In tourism, the service service, and thirdly, as competitors.
facilitator of, say, a bed-night often sees The apparently diminishing useful-
his own channel as a two-step process ness of the existing channel litera-
consisting of suppliers who, in this case, ture derives from the absence of a
furnish the hotel and supply con- channel captain in the delivery sys-
sumables, and the deliverer who is the tem who, with the branding process

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GNOTH

in mind, negotiates, coordinates and complex problems that tourism

manages brand attributes. The normal operators need to manage: first, the
way of achieving channel coordination issue of consistent quality and second,
rests on the channel captain and his use the commitment to the industry. Both
of power.26 Yet, in the case of an FIT issues are interrelated and form the
(free and independent tourist — the barrier to developing a cohesive pool
increasingly common type of traveller), of brand attributes that tourists need to
this concept of power can hardly be be exposed to consistently throughout
applied as it is indeed the tourist who their sojourn at the destination. The
has become the channel captain, al- creation of a strategy for these brand
beit without the traditional tools of attributes needs to be spearheaded by
managerial power. In spite of this, the the industry in conjunction with all
success and competitiveness of the des- stakeholders, and efficient network
tination as a whole depends on coor- structures need to be formed to
dinated product development and a accomplish this. At the same time,
strategically designed country branding while the thus created brand is shared
process. by all, industry members compete
Ever since tourism began, a horizon- often fiercely for custom and are
tal and a vertical structure of facilitation required to build their own
could be discerned as service operators competitive brand in conjunction with
tried to manage their occupation rates the destination brand. Network theory
and loading factors. As an example of can give assistance in operationalising
horizontal collaboration, accommoda- these apparent conflicts.
tion suppliers try to get tourists
to stay exclusively with their busi-
ness partners (eg, a chain). Simi- Networks
larly, there is evidence for vertical A lack of business skills among tourism
structures when accommodation and operators who tend to come from all
transport operators cooperate or even walks of life and industries might be
merge. Without question these various one reason for the lack of consis-
operators can be expected to develop tency between various tourism serv-
complementary services with an ap- ices. Generic industry structures are
proximate match in price, quality, another. Any lack of coordination is
reliability etc, so as to deliver according not by design but evolutionary, as
to tourists’ expectations and to develop each member of the tourism industry
competitive advantages. Resulting ef- belongs to his/her own generically
ficiencies and service characteristics can grown industry. This often involves
subsequently all serve in the pool of different training and career paths
country brand attributes, to which between generic industries, different
this paper will return in due time. managerial structures, communication
However, what are the mechanisms systems and values. In short, ‘industries’
whereby such a match of service such as transport, accommodation or
quality attributes can occur across hospitality often show characteristics of
destinations? (different) communities. As far as these
The idiosyncrasies of the tourism industries are concerned, communities
production process thus create two imply diversity and depth from which

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the brand can draw valuable attributes operations thus belong to at least two
that indicate functional qualities. At a sets of networks which have hallmarks
higher level of abstraction and to the of communities. Interactions among
benefit of the brand, the notion of members of one network, and between
community allows the tourism industry networks, have been analysed further
to reflect on its origins in the culture of and defined according to their type,
its country and draw from it attributes frequency and levels of commitment
that define the character of its people. expressed during interactions.31 By
Attributes such as these add to the representing the structure of the closer
‘mystical’ qualities of the brand.27 external environment of businesses, it is
According to Muniz and O’Guinn,28 these networks that have an influence
a community is signified mainly by on channel shape and policy and are
three characteristics. Members share an vital in the formation and delivery of
intrinsic connection to one another, brand attributes within the tourism
they have shared rituals and traditions system.
and, lastly, they share a sense of moral For it is only through value-
responsibility — which, in the case of oriented, networked cooperatives and
tourism, comes to the fore in situations shared vision that a tourism brand
such as industrial trouble or political community can evolve.32 A tourism
lobbying, and formulating industry brand community is here understood
standards or ethical codes. Considering as a heterogeneous group of serv-
a generic industry as analogous to a ice producers who give a sense of
community, the tourism industry is a homogeneity of experience to tourists
new or extended community that through employing the same brand
requires its own new sets of com- attributes during service production.
monality, values and moral respon- When adhered to throughout a des-
sibility. In a way, this goes beyond what tination, these attributes become des-
the channel literature is designed to tination brand attributes.
accomplish. Although it deals with It may be added here that these
these and related issues of social attributes need to fit the service
conflict, a more promising research brands individual companies develop
stream to support the development of for themselves. Depending on the level
such a new community is network of fit, the company is more or
theory, which is able to include less part of the tourism industry as
channel theory. One of the most a community that tries to develop
powerful reasons why network theory its brand. Strengthening the ties of
may be considered as more ap- these communities is therefore the
propriate in developing country as central metaphor for brand develop-
brand leverage is that networks, like ment. Defection, non-participation or
communities, rely strongly on trust.29 inconsistent brand management are the
Defined as a system of exchange main reasons for the brand’s dilution, as
linkages, networks are distinguished are ‘bullying tactics’ by self-styled
by ‘their density, multiplexity and channel captains that have no network
reciprocity of ties and shared value but only channel support (airlines to
systems defining membership roles island destinations, for example, rarely
and responsibilities’.30 Tourism service have regard for a destination brand, as

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GNOTH

they are often driven by numbers or strategic plan to introduce and build a
‘bums on seats’ rather than help- brand identity.37 It serves both
ing tourist profiles fit the product). consumers and companies to identify
The growth of destinations33 usually goods and services and to differentiate
brings with it diversification34 and them from competitors.38
commoditisation.35 Both often cause The choice of brand attributes is
the original attraction and its values to a critical issue, as it helps determine
get lost. It depends on the brand and shape competitiveness as well as
community to overcome these causes the identity of the services deliver-
of brand dilution. ing the brand. Given this role, the
The following section discusses how pool of attributes that help charac-
tourism services can become the start- terise tourism services will necessarily
ing point for developing brand exten- have to be selected according to such
sions into product markets. Finally, the criteria as competitiveness, uniqueness
emergence and role of country as and desired identity. While important,
brand can be discussed. The paper these issues can only be dealt with in
thus defines basic structures of the passing in the present study. With the
tourism industry that require con- country as brand in mind, however, it
sideration when building destination is of strategic importance to consider
brands. The critical characteristics are the tourism system and the existing and
that tourism is a system of channels and evolving networks as the generators
networks tourists make use of or build of selected attributes for the destina-
themselves. The industry is user- tion brand. The starting point for the
defined because its product, the holiday branding activity is the attraction.
experience, is perceived only by the
tourist. This requires members of the
industry to show a somewhat altruistic The four levels of brand extension
commitment to tourism when sys- The attraction can be natural or
tematically developing shared brand man-made, spiritual or tangible. It
attributes in their service production. will always have qualities that define
For the tourist to ‘learn’ and appreciate it, be they its own features or
existing and new destination brand those that surround it. These fea-
attributes, they need to be consistent tures can be described through terms
across a destination — which is thus that usually refer to a personality.
required to develop sets of shared Tourists’ (symbolic) interactions with
values, quality standards and pric- these attributes become the characteris-
ing signals even in the face of tics of the experience which, in turn,
local, regional or national competition define qualities of services that sup-
among industry participants them- port the experience. For example,
selves. a large part of the experience of
destination New Zealand is typified
by the outdoors, wilderness, insular
BRANDING TOURISM SERVICES AND weather and agriculture, particularly
BRAND EXTENSIONS sheep farming. These features translate
Branding36 is a managed process into service experiences of human
whereby management decides on a warmth, rugged but cosy surroundings,

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simplicity, hardiness, independence and

Activity Level Target
peace. The experience of, say, urban
France may be characterised by sophis- Branding 1 Attraction
tication, relaxed style, laissez faire Extending 2 Essential services
Extending 3 Support infrastructure
and indulgence. These attributes that Extending 4 All export products
emerge from the interplay of people in
their environment form part of the
attraction as well as attributes of the Figure 2 Progression of destination branding activity

brand. Branding the attraction is the

first level of destination branding so-called underdeveloped countries.39
activity (see Figure 2). Extending the brand to essential serv-
The network of each service in- ices is the second level of branding,
dustry helps shape the service delivery while extending it to the directly
channel and the final service product supporting primary and secondary in-
through both tangibles and intangibles. dustries is the third. Products and
A hotel, for example, is built from services involved here relate to food
materials that are supplied by quarries, grown and processed in the country,
timber yards and manufacturers of including wine, but also technological
hotel fittings and furnishers. Likewise, products such as snow skis and ski lifts.
tour operators may be using tour buses The latter have, for example, become
or boats built in the country and important export articles from Austria,
restaurants provide food supplied by which built its original destination
local produce markets. In summary, the brand on mountains and outdoor
tertiary or services sector relies on recreation. In addition, Kaspar40 points
primary and secondary industries to out that the production of tourism can
supply it with the tangibles and never be seen without the socio-
consumables to deliver its service. political infra structure that supports it
Apart from the intangibles that allow a since it affects tourists’ experience at
company, region or country to provide destinations. It is thus part of a
unique service delivery, service also country’s ‘reputational capital’.41 Since
relies on the tangibles which, if chosen the potential number of attributes
and employed carefully, can support signifying the destination is too large
the above characteristics by reflecting for a country brand, the choice must
essentially the same or related features be guided by a strategy that selects
as found in the attraction. We have these attributes (see Figure 3). While
thus arrived at the second level of impossible to include in the present
branding destinations: branding the study, this strategy considers the net-
services facilitating the attraction is an works involved as well as the implica-
extension of the original brand (see tions of the progression from level one
Figure 2). to level four in this branding model.
Since the tourism system relies on The fourth level of branding extends
primary and secondary industries, these to all other nationally manufactured
need to be integrated into the branding products and services willing to join.
effort as well — unless, of course, the Figure 3 gives a graphic perspective
infrastructure has been imported, as is of the source of brand attributes drawn
the case with exclusive resorts in from a country’s land-based, cultural

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GNOTH

Social and political

infrastructure

Secondary industries

HSP TP

ACC ATT

Primary industries

Land-based resources
Figure 3 Tourism support systems

and technological resources. It is com- VW) or chemical products (BASF,

prised of four interrelated groups of Bayer-Leverkusen). However, while
attributes. Beginning with the attrac- there may be brand connections from
tion as the first, further groups of tourism to these manufactured brands
attributes are gathered from charac- — eg via transport or health products
teristics of the essential services, next — the process is not always reversible.
from the secondary and primary in- The technological achievements and
dustries supporting these services, and image of BMW would not affect our
finally by those from non-tourism- beliefs about Germany as a holiday
related or supportive sectors. Here we destination. Neither would tourism-
often find quasi-competing brands or dependent products,42 such as suntan
brands that are strong enough on their lotion or malaria tablets as examples of
own and not in need of a country the chemical industries, create associa-
brand that has evolved from tourism. tions related to Germany as a tourism
For example, while the holiday des- destination.
tination brand of Germany includes We can now recognise the potential
attributes relating to landscape and power of developing country as brand
diverse cultural items such as castles, with clear connections to tourism.
viticulture and art, the fourth suggested While the activity of tourism is one of
level of brand extension would refer to escaping or searching for something
such products as cars (Mercedes, BMW, new, of sheer hedonism and ‘looking at

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 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

life through rose-tinted spectacles’, it is cape, new experiences, meeting dif-

still nothing else but ‘life’. Usually, the ferent people or getting immersed in
tourist still gets up in the morning, has unknown environments and recrea-
breakfast, reads the papers, catches a tion are all outcomes for which the
bus or taxi etc. and, generally, rarely tourism service industry has developed
does anything totally ‘out of charac- numerous products. As such, marketing
ter’.43 Therefore, the development of a holiday experiences means signalling
tourism destination brand must encap- benefits to potential customers47 that,
sulate the motivations of why the in turn, can be considered as attributes
tourist seeks out the destination. The for a destination or country brand.
resulting benefits signalled by the These experiences occur at three
brand begin ‘colouring’ the holiday levels: the functional, experiential and
experience through the destination’s symbolic. The functional level relates
services. The results are numerous to the core characteristics of a product
opportunities for the generation of or service. It denotes its instrumentality
unique experiences that are associated or utility. The experiential or hedonic
with uniquely presented (branded) dimension relates to the sensual aspects
products and services. To exploit these of an experience,48 whereas the sym-
opportunities effectively, one needs bolic dimension refers to what it all
to develop an understanding of the means to the tourist. The symbolism
relationship between (levels of) ex- involved is therefore related to the
periences and (levels of) brand at- tourist’s motivational state of mind or
tributes. As an introduction to this level of involvement.49
issue, it must to be pointed out Likewise, service and brand perfor-
here that merely associating brand mance also occur at the functional,
attributes with tourists’ experiential experiential and symbolic level.50
values is not sufficient. The attempt by Indeed, services are the complementary
Tourism New Zealand, for example, to device to help satisfy a tourist’s needs
capitalise on the success of the movie at, potentially, all three levels.
The Lord of the Rings after Tolkien’s Companies seek to signify their
novel44 is mere opportunistic advertis- particular type and quality of service
ing as far as the brand New Zealand is through their brand. Consequently, a
concerned. To build an effective brand brand can be seen as having the same
attribute that links up with the mys- three levels.
tique surrounding the film and novel, As tourism destinations develop, the
tourism service design and delivery first level to evolve is the func-
need to incorporate a distinct set of tional one relating to essential service
behaviour and other signifiers to make provision. Gradually, existing services
it part of the tourist’s experience. production processes are adjusted to
accommodate tourists. With an in-
crease of the operation’s commitment
EXPERIENCES, SERVICES AND BRAND to tourism, successful businesses be-
QUALITIES come aware of the tourists’ sym-
Holiday tourism is a recreational and bolic involvement and begin to satisfy
leisure activity.45 It is subject to a tourists’ wants at that level, too. While
hedonic style of consumption.46 Es- the functional level is the easiest to

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GNOTH

copy by competitors, the experiential to copy those attributes. Symbolic

and symbolic levels offer opportunities attributes by themselves are abstract
for diversification and uniqueness. At and can be created in a number of
each stage of the development, brand ways.
dilution can occur due to increas- It is therefore of importance when
ing commoditisation of the product.51 branding a tourism destination with a
Strong and determined branding ac- country as brand in mind that the
tivity can therefore assist in protecting consistency of attributes is developed
the original brand values of the within and across three dimensions.
attraction. First, the tourism industry has to
Goodyear52 discerns six levels in the ascertain that tourism operators build
process of branding. While not all and manage agreed-upon brand at-
levels are achieved or aspired to, if a tributes horizontally across individual
company decides to position a product industry sectors. Secondly, there needs
at a particular level it has to ensure to be vertical consistency between
that the lower levels have been estab- different industry sectors, and, thirdly,
lished previously.53 While Park et al.54 each operation must manage these
maintain that a brand can be pitched attributes at the functional, experiential
at any level (functional or symbolic), and symbolic levels combined, so that
McEnally and de Chernatony55 believe the experience and its meaning be-
that the functional level needs to be come inextricably intertwined. From
established, at least as a product class, this summary, it can easily be in-
before symbolic levels can be con- ferred that not channels but networks
structed. In the present context this are needed to develop the efficiency
means that, for example, countries or of that process. Depending on the
regions have to be recognised and particular branding philosophy and
considered as destinations before the developmental stage of the industry,
notion of branding can be applied. the acknowledgment and conscious
The controversy expressed in these development of internal, vertical, inter-
views cannot be solved here. It can be market or concentric and opportunity
stated, however, that for tourism the networks57 for the multifaceted tasks of
answer as to whether a destination destination marketing and branding
brand can be established at any level support a competitive strategy.58
successfully is at least a matter of An efficient coordination of brand
control over brand attributes. Because attributes generates the desired
tourism is a supply-driven industry, the synergies and advantages for the brand
opportunity to pitch a brand right at community. The synergies arise
the symbolic level may be given. We because the tourist encounters the same
thus have totally controlled holiday and similar qualities throughout the
resorts, some with (mock) hallmarks of destination in a number of different
sovereign states, such as Club Med or situations and combinations (see Figure
Disney World. But, as Kapferer56 4). Since these are all directly related to
warns, the more a company con- the attraction, the tourist is motivated
centrates on the symbolic level while to associate what is encountered and
neglecting the functional and experien- encode it within a contiguous neural
tial, the easier it will be for competitors network. As has been shown, stored

274 䉷 HENRY STEWART PUBLICATIONS 1350-231X BRAND MANAGEMENT VOL. 9, NO. 4–5, 262–280 APRIL 2002
 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

Tourists' selective
perceptions of the Brand Tourists Tourists'
Expectations Evaluation
High High
COUNTRY
BRAND
Symbolic Symbolic
TOURISM
SERVICES Destination's
Benefits
Brand Service Service
from
Development Performance Experience
Experiential Experiential Tourists'
Symbolic Brand
Image

Experiential Functional Functional

Functional
Tourists'
Low Physical Expectations Low
Social Destination
Cultural
Spiritual Tourists' general knowledge
and affect towards Destination

Figure 4 The relationship between country brand and benefits from tourism destination

product information tends to be based industry product manufacturers which

on brands (including names of do not participate in tourism have
destinations). Any new information the opportunity to interpret the at-
(including export products encoun- tributes for themselves and link into
tered in home countries) will be the promotional activities of the des-
interpreted in a way that is consistent tination brand. Notwithstanding this,
with how existing knowledge is the tourist may already have begun
organised already.59 It also includes associating the latter products with the
affect transfer from past experiences on country brand. However, this process
to new products. This represents the can be further targeted and made more
opportunity for the fourth level of efficient for the companies involved.
branding activity, the cross-over to To illustrate, the second level of
primary and secondary industry country-as-brand development is here
products involved in traditional export related to the previous examples of
marketing, but without close links to New Zealand and France. Research
tourism (see Figure 2). has found that there exist, among
Once a tourism industry manages others, strong associations of New
to establish brand attribute consistency Zealand with the beautiful and rugged
across a destination, so that a tourist outdoors, together with unpredictable
encounters these throughout a country, weather patterns and sheep farming, in
the country emerges as brand. Once a some of New Zealand’s major tourism
country’s tourism industry has gone markets.60 Particularly the outdoors
through the effort of developing, dis- requires sturdy clothing. As a major
seminating and managing brand at- producer of wool, New Zealand is
tributes, other primary and secondary slowly developing the tourism market

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GNOTH

as a launch pad for the outdoor infrastructures supplied by the country’s

clothing industry while making suc- primary and secondary industries are
cessful forays into the fashion markets. then to be subsumed in the spirit of
Similarly, France’s car manufacturer the attraction brand to become further
Citroen makes much use of the French brand extensions. At all stages of the
landscape and lifestyle in its advertising development, and in particular at the
for its luxuriously comfortable cars — beginning of that process, it is impor-
as experienced by tourists on holidays. tant to develop the vision of the brand
While it appears that neither of these so as to permit scope and flexibility for
campaigns is related to any serious, extending across a variety of (export)
coordinated branding activity that lets product categories.
either country emerge as brands, such To be efficient, and socially and
branding is already happening due environmentally responsible, the vision
to tourism. Efficiency gains can be or brand philosophy needs to be
achieved through a coordinated and guided by the type of attractions the
managed branding process. The more country and its regions offer and wish
a tourism destination manages its brand to develop. By gradually ‘imbuing’ the
attributes within and across industry country’s tourism services with the
participants at all three levels of same set of values and attributes, the
the service/holiday experience, the country emerges as brand. For the
stronger the benefits to the tourist and tourist, the name of the country
thus to the country brand. develops into a summary construct61
which contains a number of experien-
tially based and strongly held beliefs.
CONCLUSION This turns into affective influence on
This study attempted theoretically to evaluations when judging products at
develop a model of leveraging a the brand extension level four (see
country brand through a tourism Figure 2) once the tourist is back
destination brand, whereby the services home.
facilitating the tourism experience at a This study gave a variety of ex-
destination would be employed to amples for brand extensions. Those
develop the country brand across extensions that would be part of level
different industries. One way in which four — that is, for all primary and
this can be achieved is that in one secondary products (see Figure 2) —
destination a brand community forms would pose as the most ambitious as
which, successively, integrates more well as the most dangerous. They are
and more destinations into that com- ambitious because managerial models
munity through efficiently developed to embrace the scope of network-
network management while overcom- ing tasks designed to manage this
ing barriers such as distrust, oppor- high-level process are only slowly
tunism and competition. emerging.62 Wherever countries have
In this model, the attraction at- developed networking approaches to
tributes serve as core brand attributes. export industries, such as in New
They are then reinterpreted in the Zealand, Australia, Ireland or Finland63
tourism service facilitation as exten- and whenever tourism has featured in
sions of the tourism brand. Supporting that process, as in New Zealand,64 the

276 䉷 HENRY STEWART PUBLICATIONS 1350-231X BRAND MANAGEMENT VOL. 9, NO. 4–5, 262–280 APRIL 2002
 LEVERAGING EXPORT BRANDS THROUGH A TOURISM DESTINATION BOARD

multiplexity of tourism and the conse- tional, experiential and symbolic) are
quences for the branding process need generated by the destination’s serv-
to be of prime concern. At the fourth ices industry and supported by that
level of brand extension particularly, country’s primary and secondary in-
failure to address the systemic dynamics dustries, as far as tourism experiences
can easily cause brand dilution. Brand are concerned, brand attributes can be
dilution refers to the tourist’s inability extended to these primary and secon-
to connect the product clearly to the dary products as well, depending on
original brand while being exposed to how well they fit the original brand
the same attributes. The extension to values that are based on the attrac-
the fourth level (see Figure 2) can only tion.
proceed after firmly establishing each of In essence, the success of the brand
the prior levels. depends on the extent to which the
Success depends on essentially two three brand levels are reflected in
dimensions: the management of the tourists’ experiences, and whether they
tourism system as a system of networks are frequently exposed to the attributes
and channels, and the management of of these levels in different situations
brand attributes, their dissemination throughout the destination. If these
and consistency. The peculiarity of values permeate the entire destination
tourism is that it is user-defined, and implicate the country, the tangible
indicating that there are no ‘traditional’ service attributes can also become the
channel, communication and power vehicle for extending the brand to
structures. Brand development is there- primary and secondary products. The
fore more likely to succeed by being extension to other national brands (see
managed ‘bottom up’ rather than ‘top Figure 2), not necessarily involved in
down’. In other words, the required tourism, depends on the success of the
network structures to be formed in the latter stage of delivering the three
industry to sustain a branding exercise brand levels. All of this impacts on the
need to develop a brand community tourist’s acquaintance with a country’s
that creates communication and inter- products and services. The learning
action patterns which overcome the process is facilitated through operant
lack of a powerful channel captain. conditioning66 whereby s/he learns to
However, it must also be stated that associate the products with the brand
with the increase in size of these of that country through impressive,
networks, transaction costs will in- satisfying experiences and remembers
crease, and the organisation’s ability to them when back at home.
respond quickly to competitor action The model, as presented here, did
will decrease. There are efforts under not discuss the issue of developed
way addressing the issues involved in tourism destinations and country as
this dilemma for countries as destina- brand at any length because, first, it
tions (for example, in Switzerland65). In was necessary to establish the basic
general, such efforts are rare in tourism principles of the branding process.
and need further development ur- Second, developed destinations of-
gently. ten have a ‘brand’ already in the
With these caveats and challenges in form of stereotypical perceptions67 or
mind, when all brand levels (func- a spectrum of interpretations.68 In

䉷 HENRY STEWART PUBLICATIONS 1350-231X BRAND MANAGEMENT VOL. 9, NO. 4–5, 262–280 APRIL 2002 277
GNOTH

these cases, the focus for successful Destinationen und Tourismusorganisationen’,

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