Transcript Situation Analysis

Business Studies
Marketing Project
Travel Agency
Members: Calvin Wong
Lawrence Lau
Anthony Lau
Tam Lam
Terry Tang
Introduction
• Increasing purchasing power
• More people are willing to travel
countries they like
• Looking for tours with higher
quality and better services
• Enjoy a luxury trip
Objectives
• Create Brand image
• Build reputation among the industry
• Establish long-term business
relationship with channel members
• Provide a new and tailor-made
experience of traveling to
customers
Market Research
• Major competitors: Hong Thai, Wing On,
Morning-Star (星晨), EGL Tours (東瀛遊),
Sunflower (新華), Jetour, SKY Travel
• Prices of high class tours to the following
places:
USA + Canada $14,000-$15,000
Europe
$13,000-$16,000
South Africa
$11,000-$13,000
Middle East
$7,000-$8,000
South America $50,000-$60,000
• Unfulfilled needs of customers
– E.g. South America, Amazon Ecotourism
• Special trips
– An eating/investment trip with
connoisseur
– Pilgrimage tours (specialist in visiting holy
land/ mountain)
• In 2007 the overall expenses spent on
traveling by HK people = 107billions
Situation Analysis-SWOT Analysis
• Strengths:
–
–
–
–
–
–
Business Class
Concentrate mainly on long distance tours
High Quality Services and Tours
Experienced Tour guides
Front-line staff with language ability
Well-trained employees
Weaknesses
– Lack of capital
– Lack of support from other channel
members
– Lack of marketing expertise
– Brand name unknown
– Imperfect information of the market
– Relationship with airline companies
Opportunities
– Unfulfilled customers’ needs
– New tours, package
Threats
– Competitors
– Market not yet saturated
– Customers’ favor may change
– Rising cost
– Difficult to survive
Market Segmentation
• Demographic
– It should be set up near the living
middle-to-high income group
 retired people

• Psychographic
– aims to those:
• want to be different
• enjoy high-class tours
place of:
Positioning
Super high-class
• Grand image
• Brand new traveling experience
• High quality service
• Focus on long-distance travel

Target Market
• People with high income
• Retired people
– more leisure time for traveling
– willing to spend a large sum of
money for traveling
• Company tours
• The youth are excluded due to
their financial status and they tend
to have short-distance travels
such as Taiwan and Japan
Product
•
Traditional Part:
–

Four categories: a) America +
Canada b) Europe c) Africa
d) Middle East
America + Canada
• Sightseeing:
– Eastern USA (Chicago, Washington,
New York…)
– Western USA (Los Angeles,
California…)
– Canada
– South America (Brazil, Argentina,
Chile…)
Europe

–
–
–
Italy + England + France + Spain +
Germany + Portugal…
Sweden+ Denmark +Norway +
Finland + Switzerland …
Czech + Greece + Hungary +
Austria + Ukraine + Turkey …
Africa

–
South Africa, Middle Africa, Egypt
Middle East

–
Dubai, Saudi, Arabia, Israel, Qatar
Package
• Pilgrimage Tour
– Location: Israel
– Wailing Wall, Last Supper room, Swim
and Float in Dead Sea
• Ecotourism (生態遊)
– Travel around the rainforest by helium
balloons
– Location: South America, Amazon,
rainforests…
• Foreign festivals
– Beer festival (啤酒節) in Germany
• Historical Trip
– Location: Germany
– Berlin Wall, Concentration camp,
Wasa Poland-Jewish Monument
– A historical expertise provides
German English translations
• Skiing Trip
– Location: Switzerland
– Coaches and all skiing equipment
will be provided
• Features of our trips
– at least one experienced and
professional leader and a local tour
guide who can speak fluent
Cantonese
– direct flight to destination, avoid
transits which cause inconvenience
– five star hotels guaranteed
– private sumptuous coaches
– enough free time for travelers
– extra entrance/sundry charges during
the trip are not included
– 1 professional photographer for phototaking
– for any travelers having their birthday
during the trip, 20% off discount
– insurance acquired
Place
•
Places to be considered:



Wan Chai
Tsim Sha Tsui
Happy Valley
•
Why Wan Chai?
1. Only 1 large scale competitors
in the stated district
2. The people living nearby are
mostly middle income group or
above
3. At the middle of residential area
& business area
Price
• Price are set based on the market
price
• Price range:
Traditional tours: $10000-15000
Package tours: $15000-20000
• In Peak Season, price will be
increased by 20%
• 10% discount offered to VIP
members
• Extra discounts for VIP members
traveling in their birth month
• Discount to children
• Discount offered to customers who
sign up for the first time
– $1000 discount
Promotion
• Advertising
• Personal Selling
• Publicity
Services Marketing Mix
• People
– Staff dresses in uniform in shops
– Tour guides dress code: always
formal
(e.g. No punk hairstyles; wear
shirt, leather shoes)
• Process
– Provide staff with notes on standard
procedures when serving customers
– Require staff to memorize FAQs and
useful phrases (e.g. Thank you for
joining our tour. We look forward to
seeing you next time.)
– Ask customers to complete quiz to
assess the quality of our tour
• Physical Evidence
– Decoration concept of the shop :
Home sweet home
– Use wood in designing the shop
– Sofa, glass coffee table, large
variety of drinks
Relationship Marketing
•
Provide VIP membership
–
•
•
•
Priority to make reservation
Give discounts to VIPs joining
packages
Give discounts to children aged
under 11
Feedback in quizzes is discussed
every 2 weeks to ensure
complaints are handled efficiently
Recommendations
•
Do regular research on:
1. the popularity of each of the packages
2. the major age groups of different
packages
•
•
•
Allocate more resources to the
most popular packages
Cater more the demands to the
major age groups
Evaluate content of tours regularly
Contingency Plan
• Lower the price of the packages
and tours
• Eliminate those tours with least
interest
The End