Destination Experience Development Model Introduction Presentation of MAKKE

Destination Experience Development Model

Introduction Presentation of MAKKE Destinations Presentation of Development Model Co-creation and Networks Operating Environment Identity Target Group Destination Repertoire Sources

PRESENTATION OF MAKKE DESTINATIONS MAKKE Destinations The project destinations are Utsjoki, Sompio and Ranua. They are all peripheral tourism destinations, each with distinct characteristics and cultural heritage. Destinations Utsjoki Sompio Ranua 3

PRESENTATION OF MAKKE DESTINATIONS Utsjoki is the northernmost municipality in Finland consisting of Karigasniemi, Nuorgam and the village of Utsjoki. Many cultures come together in Utsjoki. It is Finland's only municipality with a majority of Sámi population. 4

PRESENTATION OF MAKKE DESTINATIONS Utsjoki The River Tenojoki and northern wilderness with fishing, hunting and reindeer herding as well as nature’s produce have enabled living in this barren but beautiful nature. This has created a unique history and culture to Utsjoki. E. g. these companies took part in MAKKE Hotel Hansabar Utsjoki Church Cottages Lomatärppi Hotel Utsjoki Into the Wild Aurora Holidays Nuorgam Holiday Village 5

PRESENTATION OF MAKKE DESTINATIONS Sompio offers many nature experiences guided by a Lappish way of life. Sompio nature makes it possible to promote localness and the unique culture of the destination. 6

PRESENTATION OF MAKKE DESTINATIONS Sompio In addition to natural beauty, history and culture, Sompio is featured by gold. In Tankavaara it is possible to pan gold in both summer and winter. E. g. these companies took part in MAKKE Visit Sompio Tankavaara Gold Village Gold Prospector Museum Sompio Nature Centre Vuotson maja Vuotson porobaari Kiiloselän poropirtti 7

PRESENTATION OF MAKKE DESTINATIONS Ranua The oldest signs of human dwellings in Ranua stem from the Stone Age. Huntsmen and farmers started inhabiting the region in the 17 th century, bringing permanent settlement to Ranua. The inhabitants of Ranua are characterized by tenacity, inventiveness and tight connection to nature. Nature is cherished and its riches benefit the visitors, too. 8

PRESENTATION OF MAKKE DESTINATIONS Ranua offers plenty to do and experience round the year, in all eight seasons. Ranua’s versatile services can be found in the many villages of Ranua, including nature, countryside and culture. E. g. these companies took part in MAKKE Visit Ranuan matkailuyhdistys ry Ranua Zoo Harjumökit Simojärven venesafarit Villa Havula Japanitalo 9

Model Structure MAKKE Development Model Presentation * The sources are listed at the end.

MAKKE DEVELOPMENT MODEL PRESENTATION Co-creation Action-oriented review and rules of conduct: trust, responsibility, foresight, communication Networks Action-oriented review and stakeholder network: roles, business network Responsibility Responsible, sustainable tourism takes into account economic, socio-cultural and environmental consequences so that the needs of travellers, tourism companies, destinations, environment and locals are in balance. 11

MAKKE DEVELOPMENT MODEL PRESENTATION Operating environment 1. Operating environme nt Business operating environment Description of destination networks Shared mindset 12

MAKKE DEVELOPMENT MODEL PRESENTATION Operating environment Business operating environment Description of destination networks Shared mindset 1. Operating environme nt Identity 2. Identity prism Value proposition 13

MAKKE DEVELOPMENT MODEL PRESENTATION Operating environment Business operating environment Description of destination networks Shared mindset 1. Operating environme nt Identity 2. Identity 3. Target group Identity prism Value proposition Target group Customer profile Customer journey 14

MAKKE DEVELOPMENT MODEL PRESENTATION Operating environment Business operating environment Description of destination networks Shared mindset 1. Operating environme nt Identity 2. Identity 3. Target group 4. Destination repertoire Identity prism Value proposition Target group Customer profile Customer journey Destination repertoire Year-round Earning logic 15

Co-creation Action-oriented review and rules of conduct: trust, responsibility, foresight, communication Networks Actor-oriented review and actor network: roles, business network

CO-CREATION Co-creation is target-oriented cooperation among several actors, where the actors participate in the co-creation process in their own roles and create value e. g. in product development or Human-centricity Equality marketing. The participants can be, for example, travellers and destination representatives, such as entrepreneurs, service providers, members of associations, authorities, developers and representatives of educational institutions. . Co-creation The co-creation process is coordinated by a party that activates and involves the traveller to participate and develop the destination and its services together with the destination actors and its developers. At its best, co-creation brings together both the traveller’s and the destination actor’s know-how and brings value to all parties. Core values of co-creation are equality, human- Appreciation of know-how Low hierarchy centricity, appreciation of each other’s know-how and low hierarchy. Often a relationship network is formed among the actors, radiating appreciation of know-how, openness and trust. 17

NETWORKS Networks and networking are an integral part of successful business operations and their development today. Usually a business network consists of various kinds of organizations, and its actions and development are guided by mutual goals and objectives as well as the objectives of each actor. A functioning business network is usually formed consciously and in a goal-oriented way. The business network members have predefined roles from the viewpoint of responsibilities, risk-taking and earning logic. When companies rely on each other's core competences, their mutual linkages become more versatile and communicative. Networking objectives include, among others, a company’s growth objectives, cost efficiency, development of know-how as well acquiring and sharing information. Through networking, small actors may together increase visibility and offer better and more versatile services. Together small companies are more than the sum of their parts. A prerequisite for networking is the entrepreneur’s will to cooperate and actively participate in networking and creating the network. Mutual trust is strongly connected with successful network cooperation. Trust and maintaining it as well as openness create a solid foundation for long-term cooperation. Trust is built over time, and each actor in the network must be able to prove the others that they are worthy of the trust. Personal relationshps are an integral part of the cooperation network. Cooperation and social relationships work when rules of conduct are clear, working is open and honest, and the common goal and target state have been clearly defined. . There exist several tools for describing networks, such as https: //coggle. it/ 18

NETWORKS Example: Visit Ranua’s networks

Operating Environment Business operating environment Description of destination networks Shared mindset

OPERATING ENVIRONMENT Business operating environment The business operating network means all the factors which affect the company from the outside and which the company should try to take into consideration in operations. It can be said that the business operating environment is the environment where the business operates. On the other hand, the business operating environment also includes the central drivers of change, value network and the business innovation environment. Companies must adapt their operations to the external operating environment as well as possible. It is challenging because the business operating environment keeps changing in various ways. Companies operating in the global world have to be aware of what is and will be happening around them. They must also strive to understand the reasons for the changes and their consequences as well as successfully adapt their business operations to the changing environment. Markets and demand Competition Industry Business Demographic factors Company’s stakeholders Public measures 21

DESCRIPTION OF DESTINATION NETWORKS Description of Destination Networks Tourism and service companies Services Networks and networking are an integral part of successful business operations and their development today. Usually a business network consists of various kinds of organizations, and its actions and development are guided by mutual goals and objectives as well as the objectives of each actor. A functioning business network is usually formed consciously and in a goal-oriented way. The business network members have predefined roles from the viewpoint of responsibilities, risk-taking and earning logic. When companies rely on each other's core competences, their mutual linkages become more versatile and communicative. Accommodation Restaurant services Programme services Sights, events 22

DESCRIPTION OF DESTINATION NETWORKS: TEMPLATE Tourism and service companies Services Accommodation Restaurant services Programme services Sights, events

SHARED MINDSET Shared mindset A prerequisite for networking is the entrepreneur’s own will to cooperate to actively participate in the cooperation and creating the network. Trust, maintaining the trust as well as openness create a solid foundation for long-term cooperation. Mutual trust is strongly connected with successful network cooperation. Trust is built over time, and each actor in the network must be able to prove the others that they are worthy of the trust. It is not always possible to be the one who gets the benefits; one must always accept the fact that sometimes it is the others who get the benefits. Next time, the roles may be reversed. Trust and building it benefit the network also economically. 24

Identity prism Value proposition

IDENTITY PRISM Self-concept Identity prism The identity prism is divided into six sections; three of them tell about the self-cocept of the company, and three about the desirable customer imgae. The destination identity, i. e. the self-concept, includes the destination personality, physical features as well as communication and culture of action among the destination actors. It is important to define the destination personality so that each actor understands the desirable identity in the same way. This creates a foundation for uniform actions in the various destination agencies. A strong destination identity benefits the destination actors, and with its help the destination can create a solid and trustworthy relationship with its interest groups. Link to the identity prism model (in Finnish) created in the MAKKE project. 2. Physical features 3. Culture of action 1. Personality 6. Customer relationship 4. Customer’s self-concept 5. Customer’s image of service and its users Desirable customer image 26

VALUE PROPOSITION Value proposition Specifies how to stand out from competitors and summarises what the destination offers to its customers. Tells clearly and concisely how it solves the customer’s problem or improves the current situation. Functions as the core for all communication and creates a foundation for reliable, unique and consistent communication and operations in the destination. Forming the value proposition WHY is our destination unique? HOW does the traveller benefit from our destination? AT WHOM is the destination targeted? WHAT does the destination do and what is it about? 27

VALUE PROPOSITION: TEMPLATE Value proposition WHY is our destination unique? HOW does the traveller benefit from our destination? ? AT WHOM is the destination targeted? WHAT does the destination do? 28

Target group Customer profile Customer journey

CUSTOMER PROFILE Customer profile The target group, i. e. the customer segment represents the customer group to whom the service provider offers tourism services and creates value currently. Customer segments may also be viewed so that the service provider examines the existing markets and predicts future trends to find new customer groups. Segmentation is meant to enhance marketing and help the service provider to target marketing actions at the right target group. Segmentation also helps to better understand the expectations and needs of the selected customer group. Through understanding, the customer journey becomes more familiar, and marketing communication as well as selling can be targeted better and more efficiently. Customer profile Segmentation helps the service provider to define as customers and find those who are interested in the destination’s characteristics and repertoire. However, it is important that the service provider does not only concentrate on the travellers’ objects of interest but also remembers that the interest must be in balance with the identity of both the destination and the company. Target group’s values Target group’s areas of interest Travel motivation 30

CUSTOMER PROFILE: TEMPLATE Customer profiles Customer profile 1 Customer profile 3 Customer profile 2 Target group’s areas of interest: Target group’s values: Travel motivation: 31

CUSTOMER JOURNEY Customer journey The customer journey describes the different touchpoints where the customer is served, both online and face-to-face e. g. at the destination, . These encounters are called service moments. It is important that the service provider examines the customer journey in small details that form the customer journey. The journey is divided into three phases: pre-phase before arriving at the destination, the core service in the destination and after-service which takes place after leaving the destination. This understanding of the various touchpoints informs the service provider about the customer’s way to act, e. g. concerning the sufficiency of information, need for communication or the sales transaction. All these phases may have a critical effect on the customer’s decision in purchasing the service. Customer journey Before the trip During the trip After the trip 32

CUSTOMER JOURNEY: TEMPLATE Customer journey Before the trip During the trip Interest is awoken. In which channels? Arrival. How was the trip? First experiences? Destination is studied. How? Stay. What is it like to stay at the destination? After the trip Expectations vs. experiences Back to ordinary life and feedback Purchase decision / booking. Where? Obstacles? Returning home. Feelings when leaving the destination? 33

Destination Repertoire Year-round Earning logic

YEAR-ROUND TOURISM Year-round tourism Tourism in Lapland is, to a large extent, seasonal and mainly concentrates on the winter. Winter has been productized successfully, and Lapland is actively branded as a winter destination. Even though winter tourism in Lapland has increased strongly, also summer and autumn seasons have developed. Most customers during the winter season are international travellers, whereas outside the main season, most travellers in Lapland are domestic. The eight seasons in Lapland, the versatile tourism services as well as clean nature enable year-round tourism. On the other, year-round tourism can be developed through recognizing and utilising the seasonal characteristics as well as marketing at different customer groups in different seasons. Offering year-round services requires networking and seamless cooperation from the tourism stakeholders. Year-round tourism also makes it easier to engage employees. 8 seasons The 8 seasons are Christmas (deep winter), Frosty Winter (late winter), Crusty Snow (spring), Departure of Ice ( early summer), Midnight Sun (summer), Harvest Season (late summer), Colourful Autumn (autumn), First Snow (early winter) 35

EARNING LOGIC Earning logic The earning logic is part of the business operating model. By definition, it a plan to ensure business profitability. The earning logic desribes the sources of income as well as the earnings and pricing models. The earnings model means the way to generate income, i. e. how the company acquires income profitably. The earnings model may be manufacture of products and their sales e. g. via retailers. The price may be based on markets, costs or values. The market-based price is determined by the supply-demand ratio, whereas the costbased price is affected by the fixed and variable costs, such as wages and raw material costs. The value-based price is set partly according to the added value the product or service brings to the customer. The pricing models include, e. g. , time-based billing, billing based on the number of employees and bundled pricing where a single purchase costs more than several purchases made at the same time. The earning logic describes the way to create value and helps to identify risks and business profitability as well as allocate resources. 36

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