Strategic Project

2012 Barossa Future Leaders Program

Developing a New Generation of Barossa Brand Ambassadors & Regional Champions

Through Family Tourism Experiences

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Identification of Strategic Issue To address the decline in tourism numbers to the Barossa Valley and address the gap in the

Barossa tourism market for family tourism experiences (refer to Scoping Document, Appendix

1):

“The numbers of intrastate visitors to the Barossa has fallen by 44% in the last decade. The

number of interstate people who say they are considering the region has dropped by 45%.”

David O' Loughlin, Director, Marketing and Communications, SATC (Adelaide Now, News Ltd,

viewed August 2012, www.adelaidenow.com.au)

Definition of a “Family Friendly” Tourism Experience “A Family Friendly experience is either about an experience that adults and children can do

together, or an experience that adults can do on their own knowing that the children are

being entertained and occupied.”

Elaine Ratcliffe, Chair, Barossa Tourism & Manager, Jacob’s Creek Visitor Centre (Source:

Stakeholder Interviews, Appendix 2)

Syndicate Participants Larene Dreckow - Orlando Wines

Product Development

Adrian Hoffmann - Dimchurch Vineyards

Owner/Manager

Jarrod Schmidt - AP John Coopers

Sales Manager

Daniela Hongell

Strategic Planning & Marketing Communications Consultant

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Project Summary This strategic project began as an analysis for the development “family friendly” tourism experiences in the Barossa. As our research evolved, we recognised that “family friendly” tourism could be further developed into a strategy to create advocacy and brand champions for the Barossa through “flavour” experiences targeting children and families. Flavour is identified and not limited to the wine, food, traditions, culture and heritage of the Barossa. Advocacy will be linked to:

• Extending the “flavour” experience for national and international significance beyond traditional offerings

• Implementing “flavour” experiences to create positive and memorable experiences • Increasing visitor involvement in agriculture based activities through hands on “flavour”

experiences • Long term strategic planning and visions for the Barossa

Our research revealed a limited and stereotyped understanding of what defines family tourism and its benefits. The Barossa Product Audit Gap (BPAG) reveals gaps in the market for family focused tourism experiences within the region, and will be examined in detail within this project. Outcomes and recommendations for the development and implementation of family tourism strategies in the Barossa are drawn from interviews with key stakeholders within the Barossa wine and food industries, and members of the South Australian Tourism Commission (SATC). A summary of stakeholders interviews are outlined in Appendix 2. The syndicate members acknowledge the generosity of these stakeholders including the SATC and SATIC, for their willingness to contribute to the project.

What began as an analysis of opportunities for “family friendly” tourism experiences has

evolved through our research, into a deeper analysis of opportunities to create advocacy and future brand champions for the Barossa.

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Current Scenario Analysis The 2011 Barossa Product Audit Gap (BPAG) commissioned by Tourism Barossa and the Department of Resources Energy and Tourism analysed the lifestyle groups visiting the Barossa. The following figures from the BPAG presents an overview of families visiting the Barossa, within lifestyle groups:

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• In 2010 the second largest market segment visiting the Barossa during 2010 were parents with their youngest children aged 15+ still living at home - 17.3% of total visitation numbers

• Parents with a child aged 6-14 years old - 14.5% of visitors to the Barossa • In aggregate, parents with children - nearly 40% • These lifestyle groups combined total 170,000 visitors • This combined total compares to the single largest lifestyle group to the region, older non-

working married person at 110,000 visitors

According to the BPAG:

The mapping of lifestyle versus growth (page 42) indicates that lifestyle groups that have experienced high growth over the last ten years in Australia are: • Older non-working married person. • Older working married person; • Parents with youngest child aged 15+ still living at home; • Parents with youngest child aged 5 or less; and • Older working single. Lifestyle groups that are under-represented in the Barossa and have experienced high growth in Australia: • Parents with youngest child aged 5 or less • Older working singles Lifestyle groups that are under-represented in the Barossa and have experienced low growth in Australia are: • Parents with youngest child aged 6 to 14; • Young single living at home; and • Midlife singles. The BPAG states that while the Barossa needs to focus on the needs of the well represented high growth lifestyle groups, the region also needs to attract the under represented high growth lifestyle groups while not ignoring the under represented or low growth groups (pp 39 & 40).

While over a million visitors came to the Barossa in 2009-10, tourism in the region has experienced a decline over recent years, along with Australian tourism in general. This changing tourism landscape presents both challenges and opportunities to existing and potential operators in the region.” Barossa Product Audit Gap, ppii, “Tourism in the Barossa”

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Importantly, page 41 of the BPAG reveals:

“It is not surprising that wineries are such a large activity since this is the main attraction of the Barossa. However, it does infer that the region’s tourism market is significantly exposed to the fortunes of the wine industry which is subject to local and international trends and climate. This raises the question of whether the Barossa has sufficient other products and infrastructure to leverage the strength of the wine industry and, if they are sufficiently diverse to ensure the region’s tourism industry is sustainable.” Both the BPAG Tourism Attraction Cluster Map (p43) and Tourism Attraction Cluster Map Breakdown (44) show the high growth areas for activities within the Barossa that included wineries, museum, art galleries, performing arts, outdoor activities, and cultural events. With the focus on creating a future generation of ambassadors for the Barossa, the any experience must be focused on the value added experience within the context of “flavours”, and the winery experience, outdoor activities and cultural events certainly align within this theme.

Engaging children through a sensory “flavour” experience to become future brand champions and advocates.

Source: Barossa Product Audit Gap, Department of Resources Energy and Tourism, November 27, 2011, Rodger Powell, Simon Smith, AEC Group

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Stakeholder Feedback Key regional stakeholders (identified as being representative of their industry within the Barossa) were interviewed to gain their perspective and understanding of the role of educating visiting families to the region with the aim of building future advocacy for “Barossa Flavours”. Key points extracted from stakeholder interviews (Appendix 2) are highlighted below: David O’Loughlin – Director of Marketing, SATC

• The Barossa is not an SATC target as a “family friendly” tourism region

• However, culinary tourism in particular as a family friendly experience is achievable – children can begin the culinary journey at a young age

• Any experience has to be brand relevant, therefore it cannot be expected that every winery (for example) be part of a family friendly experience

• We can encourage high value experience seeking to become a family trait

Craig Dunstan - Senior Experience Development Executive, SATIC • A new “family friendly” tourism experience may fall within both

the Destination Action Plan (DAP) and the New Experience Development Grant funding (see Appendix 3)

• Through the DAP, SATIC is keen to develop experiences in the Barossa across the next three years

• Any new experience must have a commercial outcome • Don't have to enter into the alcohol/family friendly debate – the

region is sophisticated enough and recognised as a wine region to overcome this

Elaine Ratcliffe - Chair, Barossa Tourism & Manager, Jacob’s Creek Visitor Centre

• Company policies and industry policies and even government rulings don’t allow us to target certain ages, and actively promote children

• From Barossa tourism point of view the main focus is on wine and food. Due to limited resources and time this is their main focus. It is about getting the best economic return, and there is a strong belief that the best economic return does not come from families, therefore the focus of marketing is not targeted at families

• Families are not the key driver for the Barossa region. They don’t spend the same amount of money that a young couple would spend in a weekend.

• JCVC do offer a kids menu in the restaurant, and do have the indoor/outdoor toy box and colouring in to keep the children occupied and a walking trail around the site

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Martin Pfeiffer – Whistler Wines

• Recognised the gap in the market for family experiences at Cellar Doors in the Barossa

• Maximised the winery’s native bushland setting and position away from a main road to develop native animal enclosure and children’s outdoor play area

• Applied for a grant within the SATC’s New Product Support Program to develop a specific family friendly experience

• Refer to Appendix 4 for a case study on the Whistler Wines family friendly experience

Nathan Gogoll - Barossa Regional Tourism Manager • Gaps exist in the core wine and food offer • Cellar Doors need to look beyond the “box of toys in the corner”

scenario • Staff need to be trained to work with families • One regional winery recently received funding for “family friendly”

winery experiences • The Barossa Farmer’s Market should be central to any food related

experiences targeted to families and children

“The Barossa Farmer’s Market should be central to any food related experiences targeted to families and children.” Victoria Blumenstein Rezonja, Chair, Barossa

Food and Barossa Farmers Market.

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SWOT Analysis – Barossa Product Audit Gap Within the BPAG (page 94), the under represented groups of parents with youngest child aged 6-14 and parents with youngest child aged 5 or less identified the Barossa’s strengths, weaknesses, opportunities: Strengths Weaknesses Opportunities •Self drive and self discover destination

• Wine and food experience • Breweries • Events • Heritage experience • Self catering accommodation • Butcher, baker, wine maker trail • Walking and cycling trails • Golf courses

•Nothing for children to do at cellar doors

• Limited playgrounds • Variable service standards

• Activities for children

• Itinerary planning tool/mobile apps • Service training • Wine and food education

Walking and cycling trails – identified as a strength for Barossa family tourism

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SWOT Analysis – Regional Strengths and Weaknesses

Strengths (Internal Environment) Weaknesses (Internal Environment) 1. Existing working examples of successful

cooperative marketing groups – Seppeltsfield Road Business Alliance & Butcher, Baker and Winemaker Trail

2. Existing brand Barossa marketing collateral to link proposed activities into

3. The number of cellar doors in the Barossa – each can offer something unique to their target demographic:

a. Tscharke Wines potentially holding a pottery workshop for adults and children.

b. Yalumba art competition judged by Sam Hill Smith of Hill Smith Gallery, or a Pentanque competition at the winery’s Petanque pitch

c. Two Hands Winery – Pizza making 4. Whistler Wines taking a leadership position with

family experiences 5. Popularity of Barossa Farmers Market and

capacity to extend offer: a. Cooking schools b. Sausage making c. Cheese making

6. Peripheral offers including Bowling and Mini Golf that promotes local wine with family meals

7. Peripheral outdoor experiences - Whispering wall and Barossa Goldfields walk, Barossa Bush Gardens, Menglers Hill Sculpture Park, Barossa Skate Park

8. Fun outdoor activities available such as biking – that link areas throughout the Barossa,

9. Maggies Beers Farmshop offers a sensory experience for families

10. Some restaurants have outside & undercover dining areas eg: 40’s Café, SA Company Kitchen, Barossa Valley Brewery

1. While the Barossa is strongly represented in the peripheral offers, the core “flavour” experiences (wine and food) are limited

2. Despite the Barossa Visitor Information Centre (VIC) providing a list of “family friendly” activities (see Appendix 5), the identified businesses and activities provide no in-depth detail of what constituted their addition to the list, and no prerequisites for inclusion on the list, only providing minimum information

3. The perception of activities targeted to families and children is generally limited to colouring in books, play gyms and bouncy castles, while a gap exists for memorable, sophisticated interactive, sensory family experiences.

4. The Barossa cellar door offer is generally limited to kiddy tables with colouring in books

5. The food landscape dominated by regional platters usually featuring traditional German good including smoked meats and pickles, with limited appeal to younger children and resulting in families having to self-cater on cellar door visits.

6. Lack of cost effective family accommodation 7. Poor access to public transport & not

identified as a high priority within long term planning

8. High retail rent (equivalent to Adelaide rental prices) prohibitive to new business opportunities

9. Staff training – equipping staff to better understand the needs of families (should be a pre-requisite

10. Slow response times to enquiries about regional offers

Opportunities (External Environment) Threats (External Environment) • SATC renewed focus on Barossa and experience

development • SATC grants eg: New Product Support Program • BPAG highlights families with children (up to 5

years old and 15+) potentially providing greater visitation and therefore long term financial stimulus to the community

• Advocacy for return visitation from the 15+ age group nearing legal drinking

• Maximising domestic tourism during economic slowdown, especially targeting interstate visitors

1. Other Australian wine regions taking the leadership position in family experience tourism. A quick online search reveals: • Clare Valley Children in the Valley –

www.clarevalley.biz • Margaret River - What to do for Kids –

www.margaretriver.com • Family Friendly Margaret River Wineries –

www.margaretriverguide.com.au 2. Margaret River positioned as number one wine

tourism destination 3. Margaret highly geared to cater for family

experiences (see Appendix 6) 4. International wine regions embracing the

family visitor experience 5. The Barossa not adopting a position on

advocacy for future generations

A broader analysis of the Barossa region within the context of education, advocacy, “flavours” and families is outlined in the detailed SWOT analysis below:

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Key to the implementation of a strategy focusing on the development of family experiences within the Barossa tourism offer to build future advocacy is the Destination Acition Plan (DAP) produced by the South Australian Tourism Commission (SATC) and Tourism Barossa in May 2012 (refer to Appendix 7).

In summary, the purpose of the plan is to focus on: “…delivering long-term growth for South Australia’s tourism industry. While state and regional strategies exist, the SATC has developed Destination Action Plans (DAPs) to focus and prioritise the projects to achieve the goals set out in these strategies. DAPs are simple, focused, consumer-led action plans for each region that prioritise resources from SATC units and those of regional stakeholders.”

Ranking experience development in priority from one to six (one being the highest priority) the DAP ranks family friendly experiences as a number one priority and clearly states:

Medium term experience development priorities include potential other development opportunities in the following themes: family friendly experiences, and natural environment experience (food, wine, culture, arts, wildlife & wildlife exp). Allocated timeframe: Medium 2 – 5 year timeframe

According to SATC chief executive Jane Jeffreys, “DAPs are simple, realistic lists of tasks that the SATC and regional stakeholders believe are achievable by the end of 2014.”

Working closely with the SATC within the framework of the DAP developed for the Barossa, recommendations include:

1. Establishing Flavour Barossa – a strategic body with a focus on thedevelopment and implementation of high value family tourism experiences in the Barossa, and the vision to develop the next generation of advocates and brand champions for the Barossa

2. Identify grant opportunities within the DAP timeframe3. Recognising and understanding that family engagement goes

beyond jumping castles and colouring books4. Recognising and understanding that the strategy is not relevant to

all Barossa businesses - target like minded businesses5. Understand and recognise that offers within the Flavour Barossa

strategy must respect and complement the brands of participatingbusinesses and brand Barossa

6. Flavour Barossa aligns with the SATC’s identification of theBarossa as representing the “Flavours” of South Australia

7. Flavour Barossa aligns with Tourism Barossa, Food Barossa, andBarossa Grape and Wine to maximise brand Barossa marketingcollateral including logo, website, networks and knowledge

8. Flavour Barossa innovates regional wine, food, art, culture andheritage within the strategy

9. Developing Flavour Barossa trails – similar to Butcher BakerWinemaker Trail

Outcomes and Recommendations

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10.Developing Flavour Barossa rolling calendar of activities attractvisitors throughout the year

11.Benchmarking the strategy with successful working examples ofcooperative marketing groups including the Seppeltsfield RoadBusiness Alliance

12.Working closely with leaders of family friendly tourism includingWhistler Wines and Pindarie Wines

13. Identifying a “face of the Flavours” – Food Barossa has MaggieBeer, Flavour Barossa could have Masterchef and Barossapersonality Callum Hahn as its face

14. Identifying experiences within the Flavour Barossa strategy thathave commercial outcomes

Through close consultation with stakeholders, the Hands on Barossa syndicate strongly believes the Flavour Barossa strategy fills the gap for family friendly experiences in the Barossa and maximizes opportunities for funding and experience development offered by the SATC.

This document will be submitted to the board of Tourism Barossa; David O’Loughlin, SATC, Director, Marketing and Communications; Craig Dunstan, SATC, Senior Experience Development Executive.