The Role of Niche Tourism Products in Destination - Repository ...
The Role of Niche Tourism Products in Destination - Repository ...
The Role of Niche Tourism Products in Destination - Repository ...
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T<strong>of</strong>ten and Hammervoll’s research focused on niche producers <strong>in</strong> the salmon and w<strong>in</strong>e <strong>in</strong>dustries. <strong>The</strong>y use differentiated and high-<br />
quality products bas<strong>in</strong>g their operations on limited target markets, specialisation and strong customer relationships. <strong>The</strong> f<strong>in</strong>d<strong>in</strong>gs<br />
suggest that ‘strategic capabilities are perceived to be <strong>of</strong> vital importance for niche firms’ success’ (T<strong>of</strong>ten and Hammervoll, 2010,<br />
p.749), especially the ability to <strong>of</strong>fer a unique product for a unique group <strong>of</strong> customers. Other managerial implications <strong>in</strong>clude<br />
access to high–quality raw materials; strong relationships with their wholesaler-distributors; long term supply contracts; reliance on<br />
only a few key and long term bus<strong>in</strong>ess customers; limited use <strong>of</strong> controlled market<strong>in</strong>g communications; production location or<br />
geographical presence and expertise <strong>in</strong> produc<strong>in</strong>g the product.<br />
Parrish, Cassill and Oxenham (2006a; 2006b) also conducted illum<strong>in</strong>at<strong>in</strong>g research <strong>in</strong>to niche markets <strong>in</strong> the <strong>in</strong>ternational textile<br />
and apparel <strong>in</strong>dustry. <strong>The</strong> <strong>in</strong>dustry currently faces many challenges from the <strong>in</strong>creased predom<strong>in</strong>ance <strong>of</strong> Ch<strong>in</strong>a and other skill<br />
produc<strong>in</strong>g nations; an overcapacity <strong>of</strong> goods and a deflation <strong>of</strong> world market prices. L<strong>in</strong>neman and Stanton (1991) comment that<br />
there are ‘riches <strong>in</strong> niches’ and decreas<strong>in</strong>g pr<strong>of</strong>its is a key reason for companies to adopt a niche market<strong>in</strong>g strategy. In depth<br />
<strong>in</strong>terviews with lead<strong>in</strong>g US textile and apparel executives revealed niche market<strong>in</strong>g to be a critical rejuvenation strategy alongside<br />
other importance factors such as focused customer communication; market size and value; differentiation and brand image and<br />
reputation.<br />
Apply<strong>in</strong>g these niche markets to tourism, <strong>in</strong>troduces a new tourist typology, whereby tourism clusters or group<strong>in</strong>gs are<br />
characterised by specific travel motivations attracted to the differentiation on <strong>of</strong>fer. Thus, the market<strong>in</strong>g strategy becomes more<br />
localised, focus<strong>in</strong>g on the key local aspects and <strong>in</strong>teract<strong>in</strong>g with the environment and its resources. Tarlow (2003) illustrates how<br />
niche market<strong>in</strong>g appeals to tourism <strong>of</strong>ficials as they try to target their product towards the section <strong>of</strong> the public that has the highest