Marko Paliaga, Assistant Professor, Ph.D., Juraj Dobrila University of Pula
Ernes Oliva, Dipl.oec., Juraj Dobrila University of Pula
BRANDING OF SMALL TOWNS IN ISTRIA
ABSTRACT
In recent years, town marketing and town branding have become a frequently discussed topic
for towns, municipalities, various associations, the public and the media as well as various
state authorities. The main problem for all towns is how to act efficiently and promptly, how
to adjust to constant market changes, how to be competitive and become recognisable and
unique. The same problem is tackled by small towns, which may find a solution in branding.
Small towns have to establish themselves as brands in order to develop in the global
environment, attract and keep investors and tourists and raise the level of satisfaction among
their citizens. Branding provides each town with a possibility of defining and differentiating
itself from every other town. Small towns seek to differentiate and become recognisable and
attractive. The creation of a town brand based on its particular features at the same time lays
foundations for valorisation of cultural, tourist and market identity of the town, which in turn
makes it possible to unify its tourist, traditional, cultural and natural qualities. By developing
a brand, little towns may valorise their identity and become unique - a destination
recognisable for their culture, tourism and market placement using its potentials. The present
paper explores branding potentials of small towns in Istria. We expect research results to
show whether there is branding potential and, if there is, for which towns, what entities are
relevant for the introduction of a brand, what elements support branding potential of a small
town in addition to branding benefits for little towns and the entire region.
Key words: town branding, town marketing, differentiation
1. INTRODUCTION
In this day and age, countries, regions and towns face the increasingly fiercer competition and
the ever higher demands of tourists, investors and inhabitants. The problem of growing
competition is also present in small towns in some regions, particularly in tourist regions.
Market struggle and competitors spurred the need for searching, creating or emphasising
sources of competitive advantages.
Like countries, regions and big towns, small towns also have to find a way to valorise their
competitive advantages embodied in their in unique characteristics. Unique features of small
towns are part of their identity that differentiates them from all other places. By the same
token, it is necessary to find a way to communicate unique characteristics of small towns or
their identity to target segments. A dynamic environment requires strategic thinking that
becomes the key strategic marketing issue for small towns. Tourist destinations as well as
particular towns find a strategic solution in creating their own brand so that their market
presentation could be different from others. In this regard, strategic solution to the above
problem for small towns may also be found in creating their own brand based on their
identity. Brand building would enable the preservation of identity of small places with the
brand also used as a communication method and a promise whose keeping builds long-term
loyalty.
Seeing that creating a brand for small towns based on their particular features enables
valorisation of their identity, brand creation may be described as a key strategic marketing
approach geared towards preservation of identity and development of economy of a particular
town. Brand building creates preconditions for the implementation of development strategy
and improvement of small towns, which should produce long-term benefits both for small
towns and for their entire region.
This research explores brand building potentials for small towns in Istria. We identify and
analyse elements that affect the own-brand creating process for small towns. Consequently,
the research attempts to address potential benefits of creating a brand both for small towns
and for the whole region in addition to revealing the most important entities in the brand
building process for small towns.
The paper also defines and proposes a possible model of branding small towns. The proposed
model comprises seven key steps used as fundamental guidelines in the small town branding
process.
2. SPECIFIC FEATURES OF TOWN BRANDING WITH SPECIAL REFERENCE
TO SMALL TOWNS
The idea of competitiveness among towns is not new, and it primarily refers to globalisation-
related changes. In fact, in the course of the twentieth century, globalisation affected
competitiveness so that a good brand became a decisive market conquering tool as opposed to
merely having a decent quality product that is reasonably priced. In recent years, town
marketing and town branding have become frequently discussed topics in western countries,
Croatia included, for towns, municipalities, various associations, for the public and the media
as well as various state authorities. The main problem all towns are experiencing today is how
to act efficiently and promptly, how to adjust to constant market changes, how to be
competitive and become recognisable and unique. Town branding process actually means
changing the way towns are developed and planned.
Small towns have to establish themselves as brands in order to develop in the global
environment, to attract and keep investors and tourists and raise the level of satisfaction
among their citizens. Branding provides each town with a possibility of defining and
differentiating itself from every other town. In terms of towns, regions or countries, a
trademark or a brand denotes a particular sort of town characterisation, or a set of all
expectations, thoughts, ideas, notions, feelings and associations individuals have to a country,
town or region. If we consider the fact that each town is limited by its available funds and the
increasing global interrelatedness, each local community has to compete with any other town
or place for its share in the world's wealth, talents and knowledge. Renowned companies
renowned towns, regions or countries alike will more easily find channels for the sale of their
products or services, more easily find workforce, have a larger number of visitors, tourists,
investments and events and a more significant role at the national and global level.
In spite of a common perception that town branding actually means promoting its natural and
cultural assets and finding a way to attract tourists, branding is actually a lot more. The
fundamental starting point for the implementation of town branding concept is that the name
of the town should become a brand, and that its result is the creation of an image in the
consciousness of all identified target groups (potential investors, tourists, citizens,
entrepreneurs), which helps everyone evaluate town products and services, makes it easier for
tourists to make a decision about their visit to the town, it affects making business decisions
and residents' decisions to move and similar. Town branding is oriented to improving the
town as a product.
Town as a product is defined as a set of all natural elements (climate, position) and town
planning and physical elements that reflect its character and the entire town heritage, housing
and basic infrastructure. It also comprises basic town services, fire department, police
department, emergency services, municipal services and education, all of which have to be
planned by every mayor. A town product is improved by means of construction of particularly
attractive landmarks such as a unique park, stadium, historic building, shopping centre, five-
star hotel in the historical centre and similar. This will make it possible for the town to realise
its development potential through attracting particular target groups, which will benefit the
entire local community. Yet a town as a brand does not have to focus solely on one target
group, but rather on several groups, which depends on the vision of local authorities and what
they want from their town, where they are directing it, what future development they want for
it and how ready they are to accept new development ideas and objectives.
A town brand has to be seen as some sort of contract between town authorities and users of all
services of the town product whereby users of services offer loyalty and trust to the brand and
in turn ask the town to provide them with benefits through maintaining a constant level of
quality of the town product, appropriate prices of all basic services, promotion of local
community and equal distribution-accessibility of all town services to everyone.
Although some towns have better natural, cultural and historic assets compared to other
towns, all of them can be successfully branded. Success of one town does not have to
overshadow possibilities of other towns although they might appear to be similar. For
instance, the distance between the towns of Rovinj and Poreč is small, they are similar in size,
and yet each of them can be branded in a different way.
Boosting confidence of local economy and local inhabitants in their own forces, their own
economy, their own expertise and their own skills is the greatest success of town branding.
This confidence and strength will generate significant differentiation and recognisability for
all target groups. Creation of new and maintenance of existing business, social, cultural and
emotional ties and relations through encouraging and developing local economy, boosting
town exports and creating new workplaces is the greatest positive effect of town branding. It
is advisable that branding should be considered carefully, without being susceptible to
services provided by creative and advertising agencies that only create the “packaging”. In
fact, no product can be successfully marketed if it is not rooted in quality. Town brand
building requires much effort, systematically and methodically collected data about the town,
a clear vision of town development, clear town development objectives, select brand
development strategies, a political consensus, but most of all, it requires perseverance. A town
or a place is not branded only because its inhabitants or representatives of the owner say so or
because they designed a logotype and selected a slogan. This is merely “make-up” branding.
Small places and towns also seek to become differentiated, recognisable and attractive.
Small town branding process may be divided into seven steps (Baker, 2007.): 1. Assessment
and Revision, 2. Analysis and Advantage, 3. Alignment, 4. Articulation, 5. Activation, 6.
Adoption and Attitudes, 7. Action and Implementation.
Implementation and success of these steps in building a small town brand first of all depend
on local policies, budgets, time and autonomy of entities in charge of brand building and
development (Baker, 2007.).
The following table shows a possible model for introducing brands into small towns.
Table 1: Presentation of a possible model of small town branding
First step
Assessment and revision
Questions that need to be
addressed in this phase: Who
are we? What do the users of
our services and our guests
think of us? What do we want
to become?
This phase includes:
a) Identification of markets that are relevant
for a particular place
b) Assessment and perception of attitudes
of all stakeholders to their place
c) Identification of competitors
d) Identification of strengths and
weaknesses of the place
e) Defining differentiation point
f) Identification of advantages and trends
Second step
Analysis and emphasising
advantages
Questions that need to be
addressed:
What do our stakeholders want?
What are the strengths and the
advantages of our community?
What are the strengths of our
competitors and what do they
offer?
This phase includes:
a) Defining needs of all users of
services
b) Defining competitors' offer and
assessment of competitors
c) Defining the Value of future
Brand/Trademark, what values can
be emphasised by local
community (knowledge,
patriotism, safety, innovations,
environmental concerns...)
d) Defining the vision of future brand
(tangible benefits, emotional
benefits, social benefits)
e) Choice of promise of trademark or
brand (what will the brand offer
and guarantee to all users...)
Third step
Development and
improvement of the place/local
community
Questions that need to be
addressed: Are there strengths
that can improve the place? Are
there programmes that can
improve the place? Will new
elements improve or worsen a
particular local community?
This phase includes:
a) Defining key improvement points
for the place or local community
in conformity with the chosen
vision and promise of the brand
(what will be improved or
developed, concrete projects)
b) Realisation of key projects
Fourth step
Brand building
Questions that need to be
addressed:
Will the brand be
understandable and accepted?
Will its visual identity conform
to brand promises? Is our brand
recognisable? Does our brand
differentiate us? Etc.
This phase includes:
a) Defining and choosing the name
of the brand
b) Design and choice of logotype that
follows from key projects-points
c) Creating the story about the brand
in conformity with realised key
projects-points
d) Defining key words, phrases that
strengthen brand recognisability
e) Defining key colours, fonts,
photographs enhancing brand
recognisability
Brand activation (launching) Questions that need to be
addressed in this phase: What
kind of advertising should be
used? Which media should be
engaged? How much money to
spend on advertising/brand
activation?
This phase includes:
a) Selection of promotional mix
(advertising, public relations,
events, publicity...)
b) Defining the budget
c) Implementation of the principle of
integrated marketing
communication
d) Measuring promotional effects
Implementation and Control Questions that need to be
addressed in this phase: Does
This phase includes:
a) Implementation of the brand
the brand we built meet our
expectations? Does the brand fit
promised actual situation in a
small town? Are there needs to
change place branding strategy?
What are economic benefits of
branding process?
through all forms of promotion
and communication
b) Following implementation and
monitoring
c) Assessment of indirect and direct
economic and social benefits
from place branding
d) Quantitative effects - following
(increase in the number of guests,
growth of production, increase in
the number of inhabitants, growth
of GDP)
e) Constant improvement of
implementation in all segments of
society and among all
stakeholders, implementation has
to be above the level of choice of
logotype and colour
f) Feedback, corrections, co-
branding, revision of branding
solutions, improvement.
Source: Authors, 2012, partially according to Baker, 2007.
3. SMALL TOWN BRANDING BASED ON AGRICULTURAL FOODSTUFF AND
EVENTS
Place name building based on special features of a particular place lays foundations for the
valorisation of cultural, tourist and market identity of the place. It also enables the unification
of historical, traditional, cultural and natural assets of a place. Brand building provides small
towns with a possibility of valorising their identity and becoming a unique cultural, tourist
and market destination which benefited from its existing potential. In this regard, it is
necessary that a particular place becomes a destination. Only then may it use its uniqueness
and take part in the market competition against other destinations. The origin of the word
destination is Latin destinatio, the end of a journey or the place to which one is traveling
(Anić, 1994). To explain the term, we will quote a few definitions of tourist destination. In
fact, the term “tourist destination” refers to a small or large compact unit of space whose
tourist product coming from the original and derived tourist offer has potential or actual
tourist marketability (Meler, 1998). Tourist destination is a modern expression of the totality
of tourist offer of a particular area (Žuvela, 1998). Tourist destination as a competitive unit
represents a context chosen by the tourist as the objective of his/her travel and stay. The
meaning of destination may comprise different elements that form the value chain, although,
eventually, one has to be able to meet all guest expectations with a comprehensive offer, even
by cooperating with other destinations (Bieger, 1998). Therefore, in order for an area to be
characterised as a tourist destination, it must be able to attract and keep tourists, i.e. provide a
complete complex tourist offer (Križman Pavlović, 2008).
Growing competition among tourist destinations and significant changes in tourists' habits and
expectations during their journey support the idea that destinations should be treated like
products and managed according to marketing-based approach (Ashworth & Voogd, 1994;
Caldwell & Freire, 2004; Kotler, Asplund, Rein & Heider, 1999; Kotler & Gertner, 2002).
Some authors argue that destinations, like products or services, may have their brand (Cai,
2002; Caldwell & Freire, 2004), defined by the American Marketing Association (AMA) as a
name, term, sign, symbol, design or their combination with the objective to identify goods or
services of a particular seller or group of sellers and to differentiate them from goods or
services of their competitors. Vranešević (2007) defines trademark as a name, symbol and any
stimulus that can be related to characteristics of a product or service and their functional and
psychological benefits. Vranešević (2007) sees trademark as a means of differentiation, a
functional means, a symbolic means, a risk reduction tool, a time saving tool, a legal and
strategic instrument. A tourist destination brand is the image building process for a place
based on the perception of tourists and other stakeholders that relies on communication
strategy aimed at target market (Cai, 2002). One of the main objectives of building a place
brand is enhancing the attractiveness of the place (Rainisto 2003) based on its identity (Qu et
al. 2011). Some authors believe that intensification of branding concept in regard to
destinations requires greater place management integration and that the identity of a place as
well as its reputation affects the possibility that destinations attract visitors, inhabitants and
investors (Ashworth & Kavaratzis, 2007; Cai, 2002; Park & Jaworski, 1986; Qu et al., 2011;
Ritchie & Ritchie, 1998). We may state that trademarks are a clear and unique reflection of
our time (Olins, 2008). In the world characterised by fierce competition in which reasonable
choice has almost become impossible, trademarks represent clarity, a new safety, consistency,
status, even membership, i.e. everything that helps people define themselves.
If a particular place is unique for its historic, traditional, cultural and natural assets, there is
place brand building potential that will valorise cultural, tourist and market identity of the
place so that it could become a recognisable destination. In the case of Istria, a significant role
in creating uniqueness and traditional, cultural and natural differences of small towns is
played by autochthonous foodstuff. With a view to promoting autochthonous foodstuff in
Istria, there are numerous autochthonous foodstuff fairs, wine and olive oil festivals and days
of autochthonous foodstuff held in the original places specific for autochthonous foodstuff.
Long experience in organising these events1 has turned into tradition, which integrates these
events into the uniqueness building process or the process of building distinctive features and
characteristics of the place. In this regard, events as well as autochthonous foodstuff may be
used as attractions of a particular destination with a significant role in image building and
promotion of both the destination and the autochthonous foodstuff. Events are used in the
projections and communication of brand position (Nobili 2005), they serve as a stimulus and
provide unforgettable experience (Pine & Gilmore, 1999) and are play a role in the process of
forming the image of a destination (Kotler & Gertner, 2002). Therefore, destination-brand
management should correspond to the organisation of both cultural and other events that
constitute one of the mix elements whose main role is enhancing the attractiveness of a
destination in terms of reputation and image (Guerreiro, Oom do Valle, Mendes 2011).
We may conclude that autochthonous agricultural products integrated into events benefit the
destination to a certain extent, and that they eventually benefit the whole region as they create
recognisability and attractiveness. A small town brand that unifies destination, autochthonous
foodstuff and events that is based on uniqueness of a particular place, in addition to creating
recognisability and attractiveness is also used in communicating with the market. Therefore,
together with its market communication role, a small town brand should be a mirror of
distinctive features of the place that reflects its tradition embodied in its cultural, historic and
natural heritage as well as activities and events characteristic of the place.
1 The word "event" is used to mean all activities that promote regional autochthonous foodstuff
4. RESEARCH RESULTS
The research was carried out through a structured questionnaire distributed electronically to
Tourist Boards and towns in the Istrian Region. The questionnaire was e-mailed to 30 Tourist
Boards and 10 towns in the Istrian Region. Of all of the questionnaires we sent out, 21 have
been answered by the Tourist Boards, of which 1 was incorrectly filled out, and we have
received 9 questionnaires from towns. Out of 40 questionnaires, 29 have been properly filled
out, which means that N = 29. Demographic data show that the questionnaire included 48.3 %
men and 51.7 % women. Educational structure is the following: 1. completed secondary
education – 17.2 %, 2. associate degree – 6.9 %, 3. university degree – 55.2 %, 4. M.A., Ph.D.
or more – 20.7 % of respondents.
Respondents were asked whether small Istrian towns need to have a clearly defined mission,
vision and visual identity.
Table no. 2: Defined mission, vision and visual identity
Respondents
Defined mission, vision and visual identity TOTAL
yes no I do not know
Tourist Board 90,00 % 5,00 % 5,00 % 69,00 %
Town 88,90 % 0,00% 11,10 % 31,00 %
TOTAL 89,70 % 3,40 % 6,90 % 100,00%
Source: authors' research, 2012
According to the obtained results, 90 % of respondents in Tourist Boards and 88.90 % of
respondents in towns believe that small Istrian towns should have a clearly defined mission,
vision and visual identity.
Furthermore, the research was aimed at defining whether there are elements believed to
support branding potential of small Istrian towns. The results are shown in Table no. 4.
Table no.4: Elements that support branding potential of small Istrian places
RankAutochthonou
s products Cultural assetsPreserved
environment
Fairs and festivals of autochthonous
productsTourist
capacitiesTraditional festivities
1 34,50% 41,40% 34,50% 10,30% 6,90% 10,30%
2 17,20% 24,10% 24,10% 13,80% 10,30% 13,80%
3 24,10% 20,70% 10,30% 17,20% 13,80% 17,20%
4 6,90% 10,30% 10,30% 27,60% 20,70% 17,20%
5 10,30% 3,40% 20,70% 20,70% 6,90% 20,70%
6 6,90% 0% 0% 10,30% 41,40% 20,70%
TOTAL 100% 100% 100% 100% 100% 100%
Source: authors' research, 2012
Table no.5: Ranking of elements that support branding potential of small Istrian places
Element Mean Median ModCultural assets 2,1034 2 1
Preserved environment 2,5862 2 1
Autochthonous products 2,6207 2 1Fairs and festivals of autochthonous
products 3,6552 4 4
Traditional festivities 3,8621 4 5
Tourist capacities 4,3448 4 6Source: authors' research, 2012
Respondents' answers to questions point out three important elements that support branding
potential of small places, namely 1 Cultural assets, 2 Preserved environment and 3
Autochthonous products. Most of the respondents noted that tourist capacities are a
completely irrelevant element, an element that does not support branding potential of small
Istrian places.
Data shown in the following table show Istrian places that respondents consider to have
branding potential and defined marketing strategy.
Table no.6: Branding potential and marketing strategy of Istrian towns
Respondents
Total
Respondents
Total Tourist Board Grad
Tourist Board Grad
Potential Buzet
yes 90,00% 66,67% 82,76% Marketing strategy Buzet
65,00% 55,56% 62,07%
no 0,00% 11,11% 3,45% 5,00% 11,11% 6,90%
I do not know 10,00% 22,22% 13,79% 30,00% 33,33% 31,03%
Potential Vodnjan
yes 80,00% 66,67% 75,86% Marketing strategy Vodnjan
40,00% 22,22% 34,48%
no 0,00% 11,11% 3,45% 10,00% 11,11% 10,34%
I do not know 20,00% 22,22% 20,69% 50,00% 66,67% 55,17%
Potential Tinjan
yes 65,00% 33,33% 55,17% Marketing strategy Tinjan
35,00% 44,44% 37,93%
no 5,00% 44,44% 17,24% 5,00% 0,00% 3,45%
I do not know 30,00% 22,22% 27,59% 60,00% 55,56% 58,62%
Potential Hum
yes 90,00% 66,67% 82,76% Marketing strategy
Hum
45,00% 33,33% 41,38%
no 10,00% 22,22% 13,79% 10,00% 0,00% 6,90%
I do not know 0,00% 11,11% 3,45% 45,00% 66,67% 51,72%
Potential Livade
yes 65,00% 44,44% 58,62% Marketing strategy Livade
40,00% 22,22% 34,48%
no 15,00% 22,22% 17,24% 15,00% 22,22% 17,24%
I do not know 20,00% 33,33% 24,14% 45,00% 55,56% 48,28%
Potential Gračišće
yes 60,00% 44,44% 55,17% Marketing strategy Gračišće
35,00% 33,33% 34,48%
no 0,00% 11,11% 3,45% 0,00% 11,11% 3,45%
I do not know 40,00% 44,44% 41,38% 65,00% 55,56% 62,07%
Potential Fažana
yes 70,00% 55,56% 65,52% Marketing strategy Fažana
50,00% 22,22% 41,38%
no 5,00% 11,11% 6,90% 10,00% 22,22% 13,79%
I do not know 25,00% 33,33% 27,59% 40,00% 55,56% 44,83%
Potential Motovun
yes 85,00% 88,89% 86,21% Marketing strategy
Motovun
45,00% 0,00% 31,03%
no 5,00% 0,00% 3,45% 10,00% 22,22% 13,79%
I do not know 10,00% 11,11% 10,34% 45,00% 77,78% 55,17%
Potential Pazin
yes 50,00% 11,11% 37,93% Marketing strategy Pazin
10,00% 22,22% 13,79%
no 20,00% 33,33% 24,14% 35,00% 0,00% 24,14%
I do not know 30,00% 55,56% 37,93% 55,00% 77,78% 62,07%
Potential yes 45,00% 22,22% 37,93% Marketing strategy
Buje
15,00% 11,11% 13,79%
Buje no 10,00% 22,22% 13,79% 30,00% 11,11% 24,14%
I do not know 45,00% 55,56% 48,28% 55,00% 77,78% 62,07%
Source: authors' research, 2012
The above data indicate that the respondents maintain that the following little towns have the
greatest branding potential: 1 Motovun (86,21%), 2 Buzet (82,76%), 3 Hum (82,76%), 4
Vodnjan (75.86 %), 5 Fažana (65.52 %).
In addition to the above elements, we have tried to determine if there are projects that affect
or support branding potential of small Istrian towns.
Table no.7: Projects that affect the building of branding potential of a particular place
Project N Mean Std. Deviation
Truffle Days 29 4,4138 ,68229
Olive Oil Festivals 29 4,2759 ,64899
Prosciutto Fair 29 4,2414 ,43549
Wine Festivals 29 4,1034 ,61788
Asparagus Days 29 3,6897 ,80638
Fishermen's Festivities 29 3,6207 ,72771
Folk Music and Folklore Festival 29 3,5862 ,82450
Festival of Homemade Brandy 29 3,5517 ,68589
Traditional festivities 29 3,5517 ,73612
Honey Days 29 3,5172 ,63362
Popular festivities 29 3,4483 ,73612
Source: authors' research, 2012
The following table shows the analysis of the variance One-Way ANOVA between the
samples Town and Tourist Board.
Table no. 8: Variance homogeneity test
Levene Statistic df1 df2 Sig.
Prosciutto Fair ,102 1 27 ,752
Wine Festivals 12,551 1 27 ,001
Folk Music and Folklore
Festival
,965 1 27 ,335
Festival of HomemadeBrandy ,073 1 27 ,789
Truffle Days ,521 1 27 ,477
Olive Oil Festivals ,933 1 27 ,343
Honey Days ,524 1 27 ,475
Asparagus Days ,288 1 27 ,596
Popular festivities 5,054 1 27 ,033
Fishermen's festivities 5,988 1 27 ,021
Traditional festivities 6,527 1 27 ,017Source: authors' research, 2012
Table no.9: ANOVA test for variables with homogeneous variancesANOVA
Sum of Squares df
Mean Square F Sig.
Prosciutto Fair Between Groups ,005 1 ,005 ,024 ,877
Within Groups 5,306 27 ,197 Total 5,310 28
Folk Music and Folklore Festival
Between Groups 1,729 1 1,729 2,697 ,112
Within Groups 17,306 27 ,641 Total 19,034 28
Festival of Homemade Brandy
Between Groups ,622 1 ,622 1,339 ,257
Within Groups 12,550 27 ,465 Total 13,172 28
Truffle Days Between Groups ,012 1 ,012 ,025 ,875
Within Groups 13,022 27 ,482 Total 13,034 28
Olive Oil Festivals
Between Groups ,371 1 ,371 ,877 ,357
Within Groups 11,422 27 ,423 Total 11,793 28
Honey Days Between Groups ,069 1 ,069 ,167 ,686
Within Groups 11,172 27 ,414 Total 11,241 28
Asparagus Days
Between Groups ,007 1 ,007 ,010 ,920
Within Groups 18,200 27 ,674 Total 18,207 28
Source: authors' research, 2012
Variance test shows that there is no statistically significant difference between answers of
Towns and those of Tourist Boards since p > 0.05 for all analysed variables with
homogeneous variances.
The following table shows the analysis of variables with non-homogeneous variances. We
have used Welch test whose strength is greater than F-test when samples are of very unequal
size.
Table no.10: ANOVA test for variables with non-homogeneous variances
Robust Tests of Equality of Means
Statistica df1 df2 Sig.
Wine Festival Welch ,001 1 9,715 ,973
Popular festivities Welch ,000 1 10,653 ,988
Fishermen's
festivities
Welch 1,375 1 10,247 ,267
Traditional festivities Welch 3,684 1 10,619 ,082
a. Asymptotically F distributed.
Source: authors' research, 2012
Considering that p > 0.05 for all variables, we may conclude that there is no statistically
relevant difference between answers of Towns and Tourist Boards in reference to projects that
support branding potential of small towns.
Therefore, it follows that there are four significant projects that support branding potential,
namely 1 Truffle Days, 2 Olive Oil Festivals, 3 Prosciutto Fair and 4 Wine Festivals.
Furthermore, we have tried to determine whether there are little Istrian towns that already
have a defined and recognisable identity communicated through Tourist Board projects, the
media or otherwise, and the largest number of respondents (58.60 %) claims that Buzet has a
defined and recognisable visual identity, while 41.40 % of respondents believes it is the case
for Vodnjan, whereas 37.90 % of respondents believe so for Gračišće, 27.60 % of respondents
for Tinjan , for Hum and Livade 20.70 % of respondents, for Buje 10.30 % and only 6.90 %
for Pazin. These data indicate that respondents believe that small Istrian towns mostly still do
not have a defined and recognisable visual identity as a means of communication.
Logically, branding fulfils particular potentials and provides particular benefits for branded
places. By the same token, in addition to benefitting the place, the entire region may also
profit or realise particular potentials. Results are shows graphically in Figure no. 1.
Figure no. 1: Potential benefits for the place
Source: authors' research, 2012
Recognizability of the place/Development of tourist offer/ Building added value/ Preserving
the identity of the place/ Attractiveness of the place/ Strengthening the image of the place/
Diversification of RP/ Rural development of the place/ Competitiveness of the place/
Differentiation of the place/ Better life/ Ecological preservation of the place
The figure shows potential benefits for the place that can be realised as a result of place
branding. Potential benefits may be classified at one of the following three levels:
Small benefits - ecological preservation, better life, differentiation,
Medium benefits - competitiveness, rural development, diversification of regional products, strengthening the image of the place, strengthening the attractiveness of the place, preserving the identity of the place
Large benefits – building added value for the place, development of tourist offer, strengthening recognizability of the place
Furthermore, the following figure shows potential benefits for the entire region that can be
realised through place branding.
Figure no. 2: Potential benefits for the region
Source: authors' research, 2012
Development of tourist offer/ Attractiveness of the region/ Regional recognizability
Strengthening regional identity/ Preserving the identity of the place/ Building added value
Competitiveness of the region/ Expanding the range of regional products/ Rural development
of the region/ Differentiation of the region/ Better life/ Ecological preservation of the region
Small benefits - ecological preservation, better life, differentiation of the region,
Medium benefits – rural development of the region, expanded range of regional products, competitiveness of the region, building added value, preservation of regional identity, strengthening regional recognizability and regional attractiveness,
Large benefits – development of tourist offer,
A correlation analysis has been performed for the purpose of determining correlation or
relatedness of benefit dimensions for the place and for the region.
Table no.11: Correlation table- benefits for the place and the region
Correlation table- benefits for the place and the region
Pearson's R P value
Ecological preservation 0.867 0.000
Building added value 0.810 0.000
Better life 0.769 0.000
Development of tourist offer 0.730 0.000
Diversification of regional food products 0.677 0.000
Differentiation 0.641 0.000
Preservation of identity 0.634 0.000
Competitiveness 0.632 0.000
Rural development 0.588 0.000
Recognisability 0.563 0.001
Attractiveness 0.540 0.001
Strengthening the image 0.419 0.012Source: authors' research, 2012
There is a statistically significant correlation between benefit dimensions for the towns and
for the region.
The following dimensions have a significant correlation: diversification of regional products,
differentiation, preservation of identity, competitiveness, rural development, creation of
recognisability, strengthening the attractiveness, strengthening the image.
Very high correlation has been found for the following dimensions: ecological preservation,
building added value, better life, development of tourist offer.
T test has determined certain differences in arithmetic mean of particular dimensions.
Differences are confirmed for the following dimensions: Ecologic preservation (T -2.117, p
0.0215), Building added value (T 2.117, p 0.0215) and Competitiveness (T -1.992, p 0.028).
Therefore, we maintain that brand building would produce higher added value for towns than
for the region as a whole. Competitiveness and ecological preservation of the region as a
whole would increase more than competitiveness and ecological preservation of branded
towns.
We have to ask the question about the entities that would be relevant in brand building for a
small Istrian town? Should the project have only one or more lead partners?
Analysed data indicate that 89.70 % of the respondents chose the option of shared project of
several entities.
The following entities have been identified as relevant for the joint project of branding Istrian
towns:
1. Local self-government – 79.30 %
2. Tourist board – 72.40 %
3. Regional self-government – 34.50 %
4. Ministry of Tourism – 24.10 %
5. Private sector – 24.10 %
6. Clusters – 20.70 %
Consequently, planning and implementation of the project of branding Istrian towns should
include two most important entities - local self-government and the Tourist Board that should
also be project leaders. If necessary, regional self-government should also be included, and it
should secure long-term political support for the project.
5. CASE STUDY - SMALL TOWNS IN ISTRIA
Throughout Istria, there are positive examples of unique little towns and their synergy with
autochthonous agricultural products.
The town of Buzet is unique for truffles and its annual festival Truffle Days. Buzet even got
the slogan “Buzet – Truffle Town”, and the visual identity of the town is the “truffle” used in
all forms of market communication that at the same time reflects the town identity. The Town
of Buzet was first proclaimed the Truffle Town back in 1999. Truffle Days are organised by
the Town of Buzet Tourist Board, and their objective is promotion, tasting and sale of truffle
as a unique gourmet product of the area and of other quality autochthonous products (honey,
cheese, olive oil, wine, homemade brandy, mushrooms), promotion of weekend tourism and
Buzet as the Truffle Town. One of important goals fulfilled by this manifestation is
prolongation of the tourist season, differentiation and strengthening recognisability of the
town of Buzet, also recognisable for small and medium enterprises.
The town of Vodnjan bases its uniqueness and differentiation on olives, olive oil and
winemaking. Consequently, along with its slogan “Town of Vodnjan-Tradition and
Hospitality”, Vodnjan's visual identity is a combination of long olive growing and
winemaking tradition, which is represented by olive branches intertwined with branches of
vine, definitely the most important cultures in the Vodnjan area, which also reflects the town
identity. The whole image is complete with the Festival of New Olive Oil held annually in
Vodnjan. The festival was first organised in Vodnjan, the oil and wine town, back in 2005.
The event was organised by the Town of Vodnjan and co-organised by the Town of Vodnjan
Tourist Board, under the patronage of the president of the Republic of Croatia, the Ministry of
Agriculture, Fisheries and Rural Development and the Istrian Region. The three-day
gastronomic manifestation does not only have exhibition and sale function. In fact, great
attention is paid to education and exchange of experience among olive growers. The festival
also includes numerous expert lectures and guided tastings for interested visitors. The
manifestation is international as Vodnjan, the oil and wine town, gathers olive growers and
winemakers from the entire Adriatic Euro-region. The Festival of New Olive Oil in Vodnjan
contributes to the affirmation of extra virgin olive oil as a quality autochthonous Vodnjan
brand. As a result of revitalisation of olive growing and old olive groves in the past ten years,
almost 200,000 new olive trees have been planted in Istria with the objective of creating
preconditions for the production of top quality extra virgin olive oil. By the same token, the
procedure for protecting the designation of origin for the Istrian olive oil has been initiated at
the Ministry of Agriculture, Fisheries and Rural Development.
Another example comes from the Municipality of Tinjan renowned throughout Europe for the
Istrian prosciutto, so that its slogan is “Tinjan – the Istrian Prosciutto Municipality”. Once a
year, the small town of Tinjan organises the International Prosciutto Fair – ISAP, which
enhances the uniqueness of this small Istrian town and the municipality as a whole. The
International Prosciutto Fair is organised by the Municipality of Tinjan and co-organised by
the Istrian Region and the Association of Prosciutto Manufacturers of Istria. The fair was first
organised in 2006 when the Municipality of Tinjan was proclaimed the Municipality of Istrian
prosciutto.
The manifestation started as a homemade prosciutto festival with the objective of paying
attention to the Istrian prosciutto as an excellent and specific gourmet product characteristic of
the largest Croatian peninsula- Istria. For this reason, the manifestation has been designed
with the objective to valorise and promote this Istrian delicacy. Alongside Istrian
manufacturers, the fair also gathers manufacturers from several European countries, and the
crown of the manifestation is the tasting and evaluation of the autochthonous Istrian product-
Istrian prosciutto. The International Prosciutto Fair in Tinjan is a two-day event when the little
town of Tinjan becomes the centre of European prosciutto.
Hum – once a year, the smallest town in the world once a year hosts the international
Homemade Brandy Festival. The town of Hum, apart for being known as the smallest town in
the world, is also renowned as the Biska Town named after a type of homemade brandy. The
fifth Homemade Brandy Festival that took place in 2005 was decisive for the area as it was
the event at which the smallest town in the world was proclaimed the Biska Town. The Hum
Biska is a homemade brandy made of wine-marc, white mistletoe and four types of herbs. The
recipe has been passed down through the late parish priest of Hum Josip Vidal, a connoisseur
of medicinal herbs. Biska may be tasted and bought at the Hum Inn in Hum- the smallest
town in the world. The Hum Homemade Brandy Festival is also special for the fact that
visitors may taste all kinds of homemade brandies bottled in 0.5 l bottles. The event is
organised by the Istrian and the Buzet Tourist Board and by the “Hum” Association. It is
aimed at popularising and promoting Istrian homemade brandy and the Hum Homemade
Brandy. The manifestation is international. It has become a tourist attraction and a regular
stop for organised groups of tourists.
Pazin, a town situated in the heart of Istria, once a year becomes the meeting place for bee-
farmers from Istria and other Croatian and European regions. The international manifestation
Honey Days is organised by the Pazin Apicultural Society Lipa, the Central Istrian Tourist
Board, under patronage of the Istrian Region and the Town of Pazin. The first Honey Days
were held in 2006, since when the event has become an important manifestation. Honey Days
is an international sales exhibition of beekeeping equipment, beekeeping products. Honey
Days also include a professional and scholarly conference at which bee-farmers and others
may learn about new findings in the field of beekeeping. The manifestation also includes
evaluation of honey samples and honey brandy with the objective of promoting Istrian honey
of exceptional quality. Beekeeping in the Pazin area has a centennial tradition, and honey may
be presented as an organic product and a product specific for the Pazin area, which may make
the area recognisable and eventually branded. In this way, Istrian honey, like other
autochthonous products, might soon find its place in the global market.
A large number of similar manifestations such as wine festivities, wine festivals, olive oil
festivals, fairs of homemade and traditional products are held at various places throughout the
Istrian Region. All these manifestations are rooted in tradition, history and production and
related to particular Istrian places, which makes them unique. They are designed to enhance
tourist offer, educate both their manufacturers and their consumers, introduce the consumers
to high quality products and promote the area with the main idea - promoting local, traditional
and autochthonous Istrian products in Croatia and abroad.
6. CONCLUSION
The purpose of this research was to find out if there are small towns in Istria considered to
have branding potential, which was one of research objectives. The research has shown that
there is branding potential for particular places in Istria.
Analysed research results indicate that Motovun, Buzet, Hum, Vodnjan and Fažana have a
certain level of branding potential. We have concluded that currently there is no Istrian small
town with a sufficiently strong visual identity as a tool of communication that could be
transmitted through all levels of marketing communication, visual and electronic media,
newspapers, magazines, posters, and this indicates that there is much space for creating a
unique and strong visual identity.
The research also tried to define if there are elements and projects that support branding
potential of small towns and singled out three significant elements, namely cultural assets,
preserved environment and regional autochthonous foodstuff. The analysis also identified four
significant projects that support branding potential of small Istrian towns, namely Truffle
Days, Olive Oil Festival, Prosciutto Fair and Wine Festivals.
We may conclude that branding process should be a joint project with several entities that
should achieve a certain level of synergy in the process of brand building for small towns, and
this includes joint, coordinated planning and implementation of activities in the brand
building process and after project termination.
Brand building for small Istrian towns could produce multifold benefits both for the place and
for the entire region. Benefits of brand building are classified at three levels: small benefits,
medium benefits and large benefits. Brand building for small towns has the following
benefits for places: ecologic preservation, better life, differentiation; medium benefits –
strengthening competitiveness, rural development, diversification of regional autochthonous
agricultural foodstuff, strengthening the image of the place, strengthening the attractiveness of
the place, preserving the identity of the place; and large benefits – building added value for
the place, development of tourist offer and strengthening recognisability of the place. Brand
building for small towns has the following small benefits for the region – ecological
preservation of the region, better life, differentiation of the region; medium benefits – rural
development of the region, diversification of regional autochthonous agricultural food
products, strengthening competitiveness, building added value, preserving regional identity,
strengthening regional identity, strengthening recognisability and attractiveness of the region;
and a great benefit – development of tourist offer.
Despite the fact that it remains unknown whether any small Istrian town has a defined
marketing strategy, we may conclude that the respondents (Tourist Boards and towns)
maintain that particular Istrian towns have a branding potential and particular elements and
projects related to the place that could be integrated into the branding process. In this regard,
this paper has shown one of possible models of branding small Istrian towns.
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