DEVELOP AND IMPLEMENT MARKETING STRATEGIES
Tourism business is one of the growing businesses in today’s world. Aussie wanderers tours and safari has been chosen for developing the marketing strategy to start a new service of providing accommodation to the tourist in their own hotels. This is a well-known tourism organization and they provide a real Western Australian adventure tour experience.
Part A: Internal Research
Internal capabilities of the organization
Aussie Wanderer Tours and safaris is one of the fastest growing Private Tourism organizations in South Australia. It provides the widest range of coastal tours in the west coast of South Australia. The organization is recognized for its passionate and dedicated service in this area. Solomon (2014) has commended that the managing body of this organization has developed an idea of adding a new service to its facilities. The company has conducted a detailed research about the proposed hotel facility to be provided by the company. The new hotel facility will include all the associated facilities provided in hotel industry such as, food and accommodation, laundry, transport and staff services.
In order to make a proper and detailed research about the proposed facility, the organization needs to identify the potential abilities. The company must evaluate its financial, legal and social strength from its existing services so that a better planning can be done for the new service. The company’s SWOT analyses will help to identify the current status of the company.
The organization's strong financial position will help in providing adequate finance and resources required for developing the new service. The management of this company has provided a better working culture to the employees which keep them motivated to achieve the desired result. The organization is bound by few limitations too, such as poor strategies to manage risk. The company, due to its high quality services, cannot reduce its tour package costs beyond a certain limit. The company has an opportunity to provide a full packaged service, which will include all the tour facilities like, transport service, food and accommodation. However, the company may face some threats because of stringent government regulations and constant changes in the policies of the government.
Impact of External Business Environment
The development of a new marketing strategy may be influenced by various external and internal factors. These factors affect the productivity of the strategy both, positively and negatively. The management of Aussies Wanderer Tours has accepted PESTLE analyses to determine the impact of these external factors in developing a new marketing strategy.
(Source: In the perspective of Sheth & Sisodia, 2015)
These factors play a major role in developing a marketing strategy for the new product and services. The government funding like, grants and subsidies will help the company to invest adequate funds for developing the new service. The Government of Australia has also provided various taxation benefits to the new business investments such as, newly built hotels are free from all the service related taxes for the first three years. However, few economic factors such as, recent rise in the inflation rate will affect the company’s cash reserve and the current monetary policies of the Government is such that it will delay the funding of the project.
According to Schmidt et al. (2014), the social factors such as continuously changing lifestyle and customer preferences are also creating challenges for the company. In order to deal with this challenge, the management has developed various strategies to keep the customer interested and keep them from getting bogged down. Constant labour mobility is also one of the major concerns for the management. The management has invested in the Research and Development of the company to regularly update its technologies to be competitive in the market. The company has made provisions to tackle the constantly changing tax policies of the government. The management has also made certain norms to protect the surrounding environment from the actions of the proposed service.
The management has adopted various strategies to conduct a detailed market research to identify the potential customer's or the class of customer that need to be targeted. This research will also help to identify the facilities that the customer expects from the company. The company has adopted Market Segmentation model to get the detailed evaluation of the market. According to Shih et al. (2013), there are various pillars of segmentation in this model such as, Geographic, Demographics, Psychographics and Behavioral segmentation. The management has adopted Demographical segmentation to research about the market. Demographical segmentation is again divided into various categories. The company has selected Age category to segregate the customer's and classify them according to a specific age group. In this category, the management has selected the people from the age group of 18-50 as the potential customer. The life expectancy of the people in South Australia is considered before deciding the above age group. People of this age group are the customer's that the company will target for its new service.
Part C: Implementation of Marketing Plan
The management of Aussie Wanderer Tours has developed a specific Budget plan for the new service, keeping in mind, all the possible costs and variables. Kurt & Hulland (2013) has commended that the budget prepared by the management consists of scheduling, cost allocation, accountabilities and delegation of authority to the personnel's (right person for the right job).
Project Development Budget showing Scheduling and Costing
The above budget table represents all the costs that the company will have to bear for developing a new service in the business. It also shows the time required for the project. However, the management has also made a contingency provision if there are any changes in the costs of the project.
Accountability and Responsibilities
The management has also determined the accountability and responsibilities of the persons engaged in the project. In the opinion of Chng et al. (2015), the authorities are delegated as follows:
Project sponsor: has the main responsibility of the project. The responsibility includes providing the project with necessary initial and additional funds, giving regular updates to the top-level management, removing obstacles so that the project can move forward and many others.
Advisory team: has the responsibility to provide assistance to the project sponsor and providing high-quality direction and subject matter input.
Project leader: has the responsibility to provide expertise and accountability for the project results. The responsibility of the project or functional leader extends to development of the charter and any other documents.
Development of marketing strategies
Determining marketing approach
Banerjee & Soberman (2013) have stated that for every business there must be a strong marketing strategy to promote a service or product. Aussie Wanderers Tours and safari has developed some new ideas and strategies so that they can grab the tourists for using their new service. They have made various brochures, posters, stickers and packaging about their new hotels, which they are going to launch and have spread them to the tourists, who are travelling with them. They are also providing a 50% discount for the first hundred tourists who will avail their new service of accommodation. They have briefly described all the facilities that they will provide to the tourists in their hotels like bed and breakfasts and other refreshments. They have also thought of providing their business card to the tourists so that they can contact their office afterwards and can get the detailed information of their service.
Brand Risk, Price Risk, Operational Risk, Sales Risk, Reputational Risk
Doukas et al. (2016) has mentioned that there are various types of risk that the business can face like brand risk, price risk, operational risk and reputational risk that can affect a business. The owner of Aussie wanderers’ tour and safari must look that the food and beverages that are provided in the hotels must be of good quality and brand. Suppose if someone who eats the food of this hotel get severely sick and needs medical treatment then the hotel service will be blacklisted. The owners and the investors of this service must take care of the price risk. If their hotel cannot attract much tourist then the money they have invested in this service will go in vain,. The hotel service business will get flop and their business will fail. For example, if the investor does not get any profit or the money that the investor has spent in the business then there will be a price risk in the business.
There can be a operational risk also in this new business like if the client and tourist do not get satisfy with their services. Operational risk seems to be the causing regulators the most concern and they struggle with it. It affects the reputation and financial stability of a business significantly. Business needs to look and control the operational risk. Sales risk can occur if the owners of this service cannot attract customers. This risk can happen if the proposals of the service are rejected from the customers. If the price and rates of the services are very high then there can be sales risk (Tiago et al. 2014). It can also happen if the goods and facilities that are provided in the hotels are not up to the mark. Reputational risk is the one which can happen if they do not get good review from the customers about their services. This can hamper the reputation of their services and can affect the business.
Table 2: Risk Assessment Matrix
Legal, Ethical and Sustainable Practices
Different license and registration are required to start this hotel service in Western Australia. For starting this new service the owner, need certain license. They have to follow the Australian business license and information service. Another important act that needs to be followed is the Privacy Act 1988. The business needs to maintain some ethics like social responsibility, environmental responsibility. They can undertake some corporate social responsibility like providing employment to the local people to work in their hotels for betterment. They have to follow the Corporation Act (2001) details for the products and services. They also have to look the taxation requirement of business that includes GST and PAYG. They have to grow the loyalty and trust from the stakeholders and customers.
Discussion of idea with stakeholders
The owner of the Aussie wanderers tours and safari have to discuss their new service with the Stakeholders that they are going to start about how they can start their new service in the market. For implementing this business, the main stakeholders are the tourist, businessperson, and local people of that area. Varadarajan, (2015) has stated that stakeholders can provide the capital that needs to be launching the service in the marketplace. They can also provide guideline and advice to the owner in providing the strategic direction for implementing this new service.
Justifying the strategy
Aussie wanderers tours and safari have made several brochures and posters and have attached them in various places. This will help the consumers and tourists to know about the service, products, photos of their hotels and information. This will create interest in the mind of tourist to use these services. The discount that they have provided for the first 100 tourists will bring a craze in the people to go in their hotels as fast as possible. This way they can get success in their new launch business. They have started sharing their services in social media that is the best way to target people.
The impression of Social media allows the business to target all the people by age, location, interests, gender and so on (Ding, Eliashberg, & Stremersch, 2015). This will also help the tourist to stick to the budget by creating a cap on how much they want to spend daily or monthly. They have also promoted their business by hosting an event and this will attract people physically into the promotion. In this event, they have allowed the people to speak something for sharing the review of the service that they are going to start. By doing this the people will more likely, to sign up or try it out if there is a glowing review from the other customers.
Assessment 2: Marketing plan implementation
The management has developed the marketing plan to implement the marketing strategy in the new business. According to Borland & Lindgreen (2013), the first step in the implementation plan is:
Owning the marketing plan:
In this step, the main aim is to go through the detailed action plan. Prepare a champion and dedicated team. It is very important for the management to involve in the project.
Giving proper support to the marketing plan:
The management should provide the adequate resources and time to the marketing plan for better implementation. It is also important to provide the necessary skills in the project.
Adapting the marketing plan:
For better implementation of marketing plan, the management needs to do the feedback measures and modify the plan as and when the situation demands.
Assessment 3: Implementation of the Plan
Lopez-Trigo (2015) has stated that the key performance indicators for hotel services select measures that really matters for lasting success.
Online rating: the owner should make sure that they get as many online reviews as possible as this are very valuable because the guests and the tourists select the hotels by seeing the quality of this reviews. If there is a negative review about their services then there will be a negative impact, which will help the owner to correct their service and make it better for the tourists.
Occupancy: the most critical and simplest measure of the hotel services is the occupancy rate. There should be enough rooms available for the tourists.
Average rate index: this measures how a specific hotel’s average daily rate compares to competitive sets. The rate should not be much high at the beginning of starting the business.
Customer’s satisfaction: customer satisfaction is the most important thing in the hotel business. Suppose if the tourists who will avail this service gets a complete satisfaction with their services then they will recommend other relatives and friends to visit this hotels. It is the most challenging key performance to measure but without satisfied customers the owner will find difficult to challenge in business against the competitors of the market, especially when online rating are a currency of choice for the guests
Aussie wanderers tours and safari can achieve a great success in their new business if they follow all the marketing strategy that they have implemented. If they provide all the facilities in their hotels to the tourists then they will give a glowing review to the other customers and in this way they can get more and more tourists who will avail their services.
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