Segmentation of Cheese Festival Visitors based on Expenditure and Behavior

Event Management Article Summary: Standardization of Festival Marketing Might Be a Cheesy Affair

Introduction and Background

• Context: Events are a crucial part of the South African tourism industry and economy, with festival attendance becoming a lifestyle choice for many visitors (festinos).
• Focus of Article: To segment visitors to a cheese festival based on their expenditure on cheese to develop more appropriate marketing strategies, ultimately aiming for festival sustainability.
• Expenditure-Based Segmentation: This method, popular in recent years, focuses not on total spending but specifically on spending related to the main theme of the festival (cheese in this case).
• South African Cheese Festival (SACF):
  • Established in $2002$, held annually near Stellenbosch in the Western Cape during April.
  • In $2015$, it generated an economic impact of approximately $R34 ext{ million}$ (approximately $2.5 ext{ million Euros}$) with an exchange rate of $R1 = 0.0758 ext{ Euro}$ (April $2015$).
  • Purpose: To promote cheese consumption, highlight cheese's regional importance, and contribute economically.
• Cheese Tourism: Defined as travel driven by culinary curiosity and a desire to experience or learn about cheese making, including visits to cheese events, festivals, makers, and fromageries for tasting and appreciation.
• Significance: South African cheese consumption has increased from $1.0 ext{ kg}$ to $1.9 ext{ kg}$ per capita since $1995$, with an evolving palate towards robust flavors. However, it still lags behind countries like France ($25 ext{ kg}$), Greece/Germany ($20 ext{ kg}$), and the Netherlands ($18 ext{ kg}$).
• Global Event Competition: Towns, cities, and regions compete to host events for economic impact, seasonality management, infrastructure improvement, and regional/product promotion.
• South African Festival Landscape: Over $600$ annual festivals create stiff competition, emphasizing the need to understand visitors for effective marketing.
• Definition of Market Segmentation: According to Bloom ($2005$), it's the process of subdividing a market into distinct groups that may require unique experiences or service mixes. It involves identifying segments based on festino characteristics, needs, and preferences, then prioritizing target segments (Armstrong & Green, $2005$).

Literature Review and Rationale for Segmentation

• Popularity of Segmentation Studies: Due to the heterogeneous nature of tourists and changing consumer needs (e.g., rise of

Event Management Article Summary: Standardization of Festival Marketing Might Be a Cheesy Affair

Introduction and Background

• Context: Events are a crucial part of the South African tourism industry and economy, with festival attendance becoming a lifestyle choice for many visitors (festinos).
• Focus of Article: To segment visitors to a cheese festival based on their expenditure on cheese to develop more appropriate marketing strategies, ultimately aiming for festival sustainability.
• Expenditure-Based Segmentation: This method, popular in recent years, focuses not on total spending but specifically on spending related to the main theme of the festival (cheese in this case).
• South African Cheese Festival (SACF):
  • Established in $2002$, held annually near Stellenbosch in the Western Cape during April.
  • In $2015$, it generated an economic impact of approximately $R34 \text{ million}$ (approximately $2.5 \text{ million Euros}$) with an exchange rate of $R1 = 0.0758 \text{ Euro}$ (April $2015$).
  • Purpose: To promote cheese consumption, highlight cheese's regional importance, and contribute economically.
• Cheese Tourism: Defined as travel driven by culinary curiosity and a desire to experience or learn about cheese making, including visits to cheese events, festivals, makers, and fromageries for tasting and appreciation.
• Significance: South African cheese consumption has increased from $1.0 \text{ kg}$ to $1.9 \text{ kg}$ per capita since $1995$, with an evolving palate towards robust flavors. However, it still lags behind countries like France ($25 \text{ kg}$), Greece/Germany ($20 \text{ kg}$), and the Netherlands ($18 \text{ kg}$).
• Global Event Competition: Towns, cities, and regions compete to host events for economic impact, seasonality management, infrastructure improvement, and regional/product promotion.
• South African Festival Landscape: Over $600$ annual festivals create stiff competition, emphasizing the need to understand visitors for effective marketing.
• Definition of Market Segmentation: According to Bloom ($2005$), it's the process of subdividing a market into distinct groups that may require unique experiences or service mixes. It involves identifying segments based on festino characteristics, needs, and preferences, then prioritizing target segments (Armstrong & Green, $2005$).

Literature Review and Rationale for Segmentation

• Popularity of Segmentation Studies: Due to the heterogeneous nature of tourists and changing consumer needs (e.g., rise of

Management Implications and Visitor Segmentation Insights

• The following management implications can be drawn from this finding.
  • First, a profile can be drawn of each of these clusters; this can assist event planners and marketers in targeting the right market.
  • Cluster 1: The Mild Cheese Explorers:
  • Represents well-qualified persons who live in the Western Cape.
  • These individuals are the youngest of the three markets and also earn the least.
  • They have attended the festival before and typically travel alone or with groups of friends.
  • This group does not show a clear preference for a specific type of cheese or for cheese maturity.
  • They purchase cheese monthly from supermarkets and learned about the event through word-of-mouth and social media.
  • As the youngest cluster, they represent a potentially significant spending market in the future.
  • To increase their spending, it is crucial to extend their length of stay at the festival.
  • Identifying the specific needs of this cluster is important to enhance their stay, foster loyalty, and ultimately increase their spending.