WHAT IS MARKET SEGMENTATION?

Market segmentation is the division of one homogenous group according to particular boundary lines that results in multiple sub-groups that are, in fact, different from one another.

Applying market segmentation to the tourism industry is an acknowledgement that all tourists are not the same. Of course they differ by nationality and age, but more importantly, they have different wishes about what they want to experience on holiday and how deeply they want to experience it.

The Visit Greenland market segmentation calls these two boundary lines the tourists’ Interest Focus and Engagement Level. In Greenland, we have 11 market segments such as the Sightseer, the Wilderness Seeker and the Special Interest Adventurer.

Tourists have different wishes about what they want to experience on holiday and how deeply they want to experience it.

A one-size-fits-all approach cannot be used for the marketing and delivery of Greenland as a tourist destination.

MARKET SEGMENTATION IS IMPORTANT

The ultimate goal is to give tourists an exceptional holiday in Greenland, but each market segment wants and needs different experiences to feel satisfied.

A one-size-fits-all approach cannot be used for the marketing and delivery of Greenland as a tourist destination. Instead, there must be tailored messages and experiences for each segment.

For example, the Extreme Adventurer wants mentally and physically challenging activities in rough environments, so East Greenland is more appropriate for this segment than is the Capital Region. On the other hand, the Ethnophile wants to immerse in local culture, so a farm stay in Igaliku is more appropriate for this segment than is staying at Hotel Arctic in Ilulissat.

USING MARKET SEGMENTS FOR DESTINATION DEVELOPMENT

The destination development process can go one of two ways. Neither is better than the other; rather, it is about working most efficiently with the present situation.

In a market segment-centric approach, Greenland tourism stakeholders would think critically, “What market segments do we have, or want to have? What are their wants and needs? What experiences can we create specifically for them?”

On the other hand, in a product-centric approach, stakeholders would evaluate, “What products do we have in Greenland, and where? Which market segments can we target, based on our educated assumption that they would be satisfied with these experiences?”

Think: “What market segments do we have, or want to have? What are their wants and needs? What experiences can we create specifically for them?”

Destination Arctic Circle is undergoing development at this time to brand itself as the winter destination in Greenland.

CASE STUDY: DEVELOPMENT IN DESTINATION ARCTIC CIRCLE

Destination Arctic Circle is undergoing development at this time to brand itself as the winter destination in Greenland. The region has solid products but it misses the direct tap into a relevant customer base to show that there is demand for such an offer.

Therefore, in March 2015 a cooperative effort between Visit Greenland, Qeqqata Municipality, Air Greenland, and Air Iceland put the product-centric development approach into practice to address this need. A FAM Trip held primarily in Sisimiut served to bridge local Greenland stakeholders with international agents whose customers comprise the market segments most relevant for Destination Arctic Circle.

STEP 1 – ASSESS THE DESTINATION’S OFFER

The easiest product-centric development tactic is to offer tourists similar experiences that locals enjoy already. Logistically, this creates more use for existing infrastructures, but more importantly, it increases the likelihood of attracting and maintaining local stakeholder involvement.

Destination Arctic Circle has an existing culture of winter enthusiasm and love for snowy adventures in the backcountry. Therefore, increased promotion of the following tourism products is an obvious and natural choice for the region. Based on their focus on the nature and their relatively high activity level, they will be most attractive for the following market segments.

The easiest product-centric development tactic is to offer tourists similar experiences that locals enjoy already.

    •    Snowmobiling – Nature Lover, Globetrotter
    •    Skiing (Cross-Country & Downhill) – Nature Lover, Globetrotter
    •    Dog sledding – Nature Lover, Globetrotter, Nature Appreciator, Sightseer
    •    Mountain safari – Nature Lover, Globetrotter, Nature Appreciator, Sightseer
    •    Greenland Ice Sheet – Nature Lover, Globetrotter, Nature Appreciator, Sightseer
    •    Arctic Circle Race – Special Interest Adventurer
    •    Historical & modern culture – Globetrotter, Sightseer, Culture Lover, Culture Appreciator
    •    Gastronomy – Globetrotter, Sightseer, Culture Lover, Culture Appreciator

8 international agents took part in a FAM Trip focusing on Destination Arctic Circle

STEP 2 – SELECT THE INTERNATIONAL AGENTS

With the target tourism products in mind and the knowledge of which market segments will be most satisfied with them, Visit Greenland hand-selected and invited 8 international agents (whose customer base encompasses these segments) to take part in a FAM Trip focusing on Destination Arctic Circle.

Such identification of their clientele had been previously established by the International relationship management teams’ personal B2B meetings.

STEP 3 – FAM TRIP

The ultimate benefit of a FAM Trip is increasing international agents’ direct, firsthand knowledge of Destination Arctic Circle so that they can promote it more effectively to their clients.
The March 2015 FAM Trip in Destination Arctic Circle was a mix of experiential excursions with structured business networking to get the international agents and the local Greenland stakeholders in the same spaces and thinking critically about future partnerships.

Back at home international agents can pass two key elements to their clients, which should have high influence on converting prospective tourists to actual tourists. First, genuine emotions like excitement, awe, and surprise as the agents describe their experiences from memory. Second, security and trust about the local operators after spending several days in the destination and building personal relationships with them.

Would you like to be considered for future FAM Trips in Greenland? Please write to the International Relationship Managers responsible for your market

CONTACT US

Are you interested to hear more about this FAM Trip in Destination Arctic Circle? Would you like to be considered for future FAM Trips in Greenland? Please write to the International Relationship Managers responsible for your market.

North America:

Idrissia E. Y. Thestrup at idrissia@greenland.com and Sarah Woodall at sarah@greenland.com.

Europe & Asia:

Lykke Geisler Yakaboylu at lykke@greenland.com and Malik Milfeldt at malik@greenland.com.