Product Development

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5.1 Product Development - Introduction

Vision: Victoria has quality product and services in strategic locations that match consumer demand and maximise yield.

Objectives

  • Develop product that meets the needs and expectations of priority markets and helps to disperse visitors geographically and seasonally.
  • Promote economic viability, environmental sustainability and community benefits in product and infrastructure development.
  • Encourage visitor satisfaction through exceptional product and service delivery.

BACKGROUND

The success of Victoria as a tourist destination is largely dependent on the quality, diversity, maturity, commercial capacity and sustainability of its product range. In order for the tourism industry to continue to grow, new product must be developed and existing product updated on a regular basis. Product development is a process of continuous improvement, expansion, adaptation and innovation that builds on product strengths and identifies and addresses product gaps in relation to target markets.

Product development needs to be closely aligned with investment attraction and infrastructure development. Ongoing investment in accommodation and attraction products and services is essential for maximising tourism benefits. This investment may involve refurbishing or expanding existing facilities, or new development, but should focus on increasing yield from defined markets, maintaining authenticity and optimising economic and environmental sustainability.

In order to deliver tourism benefits to target markets, a range of industry strategies and product strengths must be developed. To facilitate this process, Tourism Victoria has identified and prioritised Victorian product strengths that provide a tangible experience or primary motivation to travel. Many of these product segments, such as food and wine, touring and backpacking can be enjoyed across the State, however others are region specific, such as alpine, Aboriginal experiences and golf.

Critical to the success of Victoria's tourism industry is the development and subsequent marketing of sustainable product, including timely provision of motivational and information based communication. By establishing dedicated marketing campaigns for each region and product segment, Victoria has the unique opportunity to provide the tourist with a range of high quality experiences to be consumed as a package or as a stand-alone product. Just as important is meeting consumer expectations, thereby achieving visitor satisfaction, quality of experience and positive word of mouth testimony for Victoria as a destination.

STRATEGIES

  • Highlight primary special interest product of statewide significance, such as food and wine, natural attractions, arts, theatre and cultural heritage, shopping, events and touring.
  • Conduct further product segment specific research.
  • Communicate the value of professionalism and standards and encourage environmentally sustainable business practices.
  • Encourage the integration of product segments and experiences including packaging product suitable for the local, interstate and international markets.
  • Review all existing product segment development plans produced as outcomes of previous strategic plans.

Tourism Consumer Cycle

Consumption of tourism product begins with consumer awareness, both pre-existing and new information communicated through various mediums, such as advertising. Preference for product or destination is established based on this awareness, creating the intention to consume. This intention is converted to action, which results in the consumer experience. Satisfaction of this experience will influence future tourism consumption decisions, and enhance consumer awareness.

Tourism Victoria and the tourism industry play a vital role in this cycle. While Tourism Victoria places great effort into creating awareness, preference and intention, it supplements the tourism industry's involvement in converting consumer intent. The tourism industry plays the most crucial role in providing the tourism experience and ensuring satisfaction.

Tourism Consumer Cycle

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Addendum - October 2004

Addendum - October 2003