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Global Marketing PlanMall of America

Final Paper

By: Group #2 B2BAshley Hamilton

Kayla Zart Babalola (Bobby) Coker

Sebastian KloddaBrandon Vlasak

Global Marketing 416

Date: August 5th 2010

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Table of Contents

1.) Executive Summary…………………………………………………………………………..3

2.) Introduction: Company Background/Situational Analysis:

2.1 Description of product and services-...................................................5-7

2.2 Description of product and services-………………………………………………..7-11

2.3 SWOT analysis-…………………………………………………………………………………12-13

3.) Market Analysis:

3.1 Industry Tends- ………………………………………………………………………………..13-14

3.2 International Destinations-………………………………………………………………15-16

3.3 Global and National competitors-…………………………………………………….16-21

4.) Global Marketing Strategy:

4.1 Segment and Target Market { B2B }- ………………………………………………….21-23

4.2 Info about Potential Market-……………………………………………………………23

4.3 Positioning-………………………………………………………………………………………23-25

5.) Conclusion/Recommendations:

12.1Over all Analysis-……………………………………………………………………………26

6.)* Bibliography/ References Attached*

*Appendix attached*

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EXECUTIVE SUMMARY:

1.The introduction includes research analysis on data concerning the Mall of America,

which was analyzed in order to determine the market parameters. Going forward, research was

done on Minnesota as a tourist destination, specifically the Mall of America in section 2.1.

Several barriers to entry have been pertaining to people who are coming from Mexico, dealing

specifically with travel to the Mall of America. In continuation of this research, reasons

compelling Mexicans to travel to the US were also found. In section 2.2, this is elaborated in the

context of Minnesota as a whole, based on characteristics that make it a tourist attraction and

what entry barriers exist. The differences between Minnesota and Mexico’s traditional heritage

and culture were also evaluated. Information was found about the perception that Mexicans have

of Minnesota. In 2.3 the SWOT analysis, analyzed the strengths, weaknesses, opportunities, and

threats of the MOA compared to its competitors. Section 3.1 includes information about industry

trends concerning shoppers in Minnesota and Mexican visitors. Positive and negative initiatives

in the context of government involving immigration laws were researched. Emerging Air

Transportation trends from Mexico to the Twin Cities was analyzed; in addition, section 3.2

recognized the most popular tourist destinations in Minnesota for visitors traveling from Mexico

City, and stated what their purpose of travel involved. In section 3.3, the competition of global

and national competitors was analyzed, on information involving what they have done to attract

Mexican travelers.

Section 4.1 Evaluates B2B segmentation and target market for travel/tourism agencies in

Mexico City and the Twin Cities. This section also investigates popular tourist agencies and their

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company’s size, location, annual sales volume, and number of employees. Section 4.2 states

information concerning the size of the travel target market, specifically focused on what potential

exists. Section 4.3 discusses how the positioning strategy will be formulated. This includes

important issues involving the target market, specifically how the target market perceives the

Mall of America and what the MOA does to differentiate itself from other tourist attractions. The

analysis done in section 4.3 states the rationale for the positioning statement as well as the

objective positioning statement. The subjective positioning statement is included in this section

as well.

Section 5.1 includes conclusions and recommendations for this global marketing report.

INTRODUCTION: COMPANY BACKGROUND/SITUATIONAL ANALYSIS

2.1More ways to be you, whether you are 1 or 100, have $1 or $100 to spend! The Mall of

America (MOA) has a variety of different stores, entertainment, and restaurants to accommodate

almost anyone and all different demographics. The Mall of America tries to market to tourists

and segments itself for a tour destination. The way the MOA markets a number of their stores

and entertainment venues that exist to its customers are sometimes functional or affective,

however occasionally they could be both.

Functional Aspects of MOA

Functional aspects of the mall include, the mall is one building, it has a metro rail which

is easy for transportation, the mall is close to the airport, there is free parking, there is no tax on

clothes or shoes, and it is next to IKEA.

Affective Aspects of MOA

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Being that everything is indoors, you can shop any time of the year, even in the coldest

weather. There are a variety of activities that take place in the mall. There is always something

new there, MOAs great reputation, the memories people make there, and experiences customers

get out of visiting the mall.

Both Functional and Affective Aspects of MOA

Being that the MOA is close to the Twin Cities, ease of access exists to a multitude of

events and activities that can be found taking place throughout the year. With the MOA having a

High School onsite, this allows the students easy access to hands-on learning. Everyone’s desires

are fulfilled at the MOA due to the variety of shops that exist in the mall. Even before “going

green” became the norm, the MOA has always been environmentally friendly building. There

are 520 stores in the MOA along with Nickelodeon Universe, Underwater Adventures Aquarium,

Lego, Moose Mountain Adventure Golf, A.C.E.S. Flight Simulation, Movie Theater, Magi

Quest, 60 places to eat, wedding chapel, and a high school. The MOA has 400 different events

that take place annually, including 108 celebrity appearances each year. These activities are

always free to the public. The cliché, shop till you drop is very easily done at the MOA, if you

spend ten minutes in each store it would take you 86 hours! (Arts Publications)

The Mall of America targets many different audiences. Woman ages 25-54, men ages 18-

24, teens, families, activity seekers, and tourists. MOA considers tourists to live 150 miles away

or further to consider them tourists. The mall brings in around 400 million people per year, 60%

local and 40% tourists. The Mall of America continues to reinvest into the infrastructure, which

always keeps the building updated with new features and trends, therefore, there always is

something new to find that hasn’t existed in the mall since the last visit by guest. This includes

new tenants and new attractions, which keeps the customer coming back for more. The MOA is

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set up in a way which tries to keep the same target market segments in the same area. This makes

it easier for shoppers to find the stores they like. For example, there are four major stores at the

corners of the mall, Sears, Macy’s, Nordstrom’s, and Bloomingdales. Stores are grouped

together based on their target markets, therefore guests don’t need to traverse the entire mall to

get to another store. There is a low budget area of the mall which consists of Dollar Tree,

Nordstrom’s Rack, Marshalls, and Payless shoes, amongst other stores. Some sections attract

upscale shoppers, who tend to shop for teens, kids, and men.

The Mall of America is currently working on a modernization plan, which is commonly

referred to as Phase II. This plan would consist of adding hotels, a gateway to the Mayo Clinic,

Bass Pro Shop, a water park, luxury and family retail stores, Performing Arts Theater, and a

space exhibit. MOA also tries their best to keep their customers feeling safe, this is very

important to the customers. The Mall of America keeps their safety at a low by having 130

security officers, who are mainly former police officers, ex military or officers in training (MOA

Power Point). Also they have years round bike officers who control the perimeter of the building.

The mall also offers medical station in case of emergencies, lost and found, way findings, and

maps all around the mall to guide you. `

Some barriers to entry that MOA might face are culture differences, Exchange rates,

needs/wants of the customers, and the climate of Minnesota. Passports are required to enter the

United States. Typically Mexican Men are not willing to shop for multiple days. The entrance

that most tourists enter the building is not very welcoming, especially with non-English speaking

customers. Customer Service could help non-English speaking people around the mall, but

sometimes it is hard to locate these staff members. Needs and wants of customers could be a

barrier of entry to the mall, for example, men from Mexico do not want to shop all day with the

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women in their family, therefore they need market to the males information about what other

activities can be done in the mall. Of course the climate that people portray of Minnesota is a

barrier for customers not coming to the Mall of America. The common perception of Minnesota

is that it is cold and snowy all year round, which could be unattractive to some of the tourists

from warmer climates. A new law stating, that people must show a valid passport to get into the

US from Canada, which started in 2009, made it much harder to enter the United States (The

United States Embassy Consular Services Canada). Before, this law, people from North America

could enter each country with only a Passport or Drivers License. This new law has turned some

Canadians against entering into the United States because of the inconvenience.

2.2

Minnesota as a Destination:

When looking at Minnesota and evaluating the tourist destinations there are many

different places. First there is the aspect of nature and the fact that Minnesota is connected with

the great lakes which brings many people from all over the globe, Lake Superior to be specific

which has many miles of lake shore. Continuing on the nature theme, there is the Gooseberry

Falls area which draws many tourists due to the waterfalls. Needless to say you don’t have to

travel more than a few hours in any direction in Minnesota to get a great sense of nature, whether

it is water or land that is preserved (exploreminnesota.com). For those who aren’t interested in

the great outdoors, Minneapolis and Saint Paul offer the guests a vast array of entertainment and

musical venues. The new Twins stadium is the latest big attraction for not only Minnesotans and

Twins fans, but many people come to visit due to the innovative engineering and “green”

construction (MLBnews.com). Many business contractors have made their way to the stadium to

observe the construction advancements done in the stadium. The Minneapolis Sculpture Garden,

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which is the largest urban sculpture garden in the country, attracts many tourists

(exploreminesota.com). St. Paul (which is the capital of Minnesota) is home to the Science

Museum of Minnesota which offers hands-on exhibits that gives visitors the chance to touch a

tornado, walk under a dinosaur, board a Mississippi River towboat, and learn about all sorts of

thing including the human body, a very family friendly place. Another attraction is the Guthrie

Theater which is the largest regional playhouse in the country.

Barriers to Travel:

One of the barriers to traveling to Minnesota is the distance from Mexico to Minnesota

compared to other places near the middle of the U.S. Mexico City is 1,675 miles from the

Minneapolis airport (www.geobytes.com). The fact that the flight is about four hours means that

it could make our destination less attractive for families (ask.com). Due to Arizona implementing

SB-1070, this had created a negative image on the US by Mexicans; therefore they may not even

look at coming to United States in the first place. Minnesota law enforcement is dedicated to

protecting and preserving the civil rights of all members of the communities. In the Hennepin

County Sheriff's Office, they are working to build trusting relationships with all of the residents

and visitors in our communities, regardless of their legal status. Minnesota has a dozen or so

"Sanctuary Cities" with "don't ask, don't tell" (http://www.sanctuarycities.info) mandates to

prohibit police officers from asking about immigration status without criminal cause. Another

barrier is language, even though Spanish is the second highest spoken language in the US, only

15.4% of the population in Minnesota speaks Spanish (US Census 2000).

Minnesota Culture:

Minnesota has a vast number of Indian reservations that still exists and many in the area

take great pride in the land. The people originate from Scandinavian Americans, German

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Americans, Native Americans, African Americans, Polish Americans decent

(http://www.pomeroyformn.org/culture.htm). Minnesota is also known for its strong sense of

community and togetherness. Many occasions are known to be potlucks; this is when everyone

brings a dish to share with one another. Many think this is where the “hot dish” or “casserole”

idea came into play. Theater and music has become an ever increasing part of Minnesotan

culture. Many festivals and concerts such as the Taste of Minnesota, Festival of Nations,

Minnesota State Fair, We Fest, and Renaissance Festival, which takes place throughout the

summer. During the winter, the Saint Paul Winter Carnival draws in many tourists from around

the country and overseas. This festival has numerous ice carvings and is the celebration of winter

activities. The population of Minnesota is 4,375,099 the 20th largest state –made up of 70.6%

urban, 29.4% rural, 94.4% White, 2.2% African American, 1.8% Asian or Pacific Islander, 1.2%

Hispanic, 1.1% American Indian, Aleutian, or Eskimo, 0.5% other(1990 US census)

Mexican Culture:

Mexico City’s culture consists of music and dance, vibrant colors, and theatre. The top

attraction in Mexico City is a place called the National Museum of Anthropology; the people in

Mexico are very interested in past anthropology and preserving the past. Mexico City Natives are

very family oriented and enjoy traveling together. The population of Mexico City is 19,013,000

which are the largest population group being Mestizo (Amerindian-Spanish) 60%, Amerindian or

predominantly Amerindian 30%, white 9%, with 1% consisting of other races. The religions in

Mexico are Roman Catholic at 89%, Protestant at 6%, others at 5%. Mexico City forms the core

of the Federal District and is the commercial, industrial, financial, political, and cultural center of

the nation. Among its diverse and important manufactures are chemicals, petroleum, food

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products, textiles, automobiles, machinery, pharmaceuticals, and consumer items. Population has

increased rapidly in a city, the metropolitan area of Mexico City is currently the largest in the

world, but it suffers from severe overcrowding (http://www.facts-about-mexico.com).

As for the buying decision in Mexico City, it is strongly influenced by family and friends,

however, most of the time the buyer is the housewife. Mexicans frequently use customer service

(http://.blog.nielsen.com).  Promotional prices are very much appreciated. It is difficult to

influence the Mexican consumer; they are very aware of brand names and knowledgeable on

cost-benefit ratio. They expect to be treated individually and prefer the places where there is

personalized service.  In general, Mexicans are very loyal to their preferred brands. As for

activities in the Mexican culture; diving, camping, canoeing, fishing, and surfing are a few they

enjoy in spare time. When it comes to gifts and gift giving, Over two-thirds of gift-givers in

Mexico said they will spend over $250 American dollars on gifts to celebrate "Love and

Friendship Day," (which is just like the US Valentine’s Day, but not just for lovers) primarily

giving to love interests (51%) and friends (27%). The top three gifts for Mexican couples

included dinner, clothing and flowers. When questioned on who should pay for dinner, 58

percent of those surveyed believed that the man should pay the bill on the first date

(http://www.inside-mexico.com).

When comparing Minnesota to Mexico City, many similarities in culture and activities

can be found, namely with sports and family values. One difference is that the women are the

main purchaser in the household in Mexico, which is some cases, is very different than the

cultural norm of Minnesota and the US. The population of each area is a huge difference; the

population of Mexico City is 19,013,000 (http://www.citypopulation.de/Mexico.html) and the

population of Minneapolis (the largest city in Minnesota) is 368,363 (www.city-data.com) A

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similarity of religions exists between Minnesota, which is made up of roughly 69% Catholics

and Mexico City, which is made up of 89% Catholics. (www.adherents.com/largecom)

How do Mexican people perceive Minnesota? This could be hard to find initially, but the

reason for the difficulty could have something to do with the fact that fewer than half of all

Latinos living in Minnesota in 2000 were foreign-born (Census Bearue.com 2000). As far as

other destinations in the US, many Mexicans only know of the southern states for example:

Arizona, Texas, California, and New Mexico. As far as how they perceive those states, mixed

opinions due to the poor treatment of Mexican workers, and the discrimination Mexicans face

when in the US. What is happening in Arizona is giving the Mexican community a reason to

believe all the states will adopt the policies that are going on and that is perceived negatively.

The New York Times stated “A strong local economy helps pull Mexicans from steamy Morelos

to the chilly Minnesota plain.”(http://www.nytimes.com) Also a man who was interviewed in the

same article said (BEGINNING OF PERAGRAPH), "Ninety percent of the population there has

people over here. Kids come here as soon as they come of age." According to jrank.org, there is

a push and pull that has been going on for the last decade with Mexicans coming to Minnesota.

The push is the immigration laws along with the harsh treatment of Mexicans in the Southern

U.S. and the pull is the demand for low wage labor. (http://www.jrank.org) What you can infer

from these statements is that Mexicans know of Minnesota and they are coming here because

they want to, therefore the perception can’t be that bad. Also once they come to Minnesota most

do not return to Mexico.

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SWOT ANALYSIS

2.3

By researching The Mall of America we found that there are many different strengths,

weaknesses, opportunities, and threats that the mall faces in relation to the competitors. The Mall

of America has strengths, due to its size and different activities, stores, and restaurants stated in

2.1. Another strength that the mall has is that it has been using low cost energy sources, since it

has opened, which increases efficiency. The MOA is a “green” facility. The mall does not use

any heat; it is simply conducted by the lights, skylights, and body heat of the customers.

Weaknesses that the MOA might are fact that it could be a little overwhelming for someone that

does not speak the English language. Most signs are in English and the majority of the clientele

speak English. Tourists may become frustrated and overwhelmed with the huge mall and not

know where to go or even where to start. Having this language barrier might be a problem even

for the customer service representatives. The MOA would have to find full-time employees who

are fluent in Spanish to work as Guest Services assistants at the Information desk. Another

weakness the organization might face is that it could be difficult for the tourists to even find the

customer service department if all of the signs are in English. Also cultural barriers from

Mexico to the US could be a weakness for the Mall of America. Finding what is important to

Mexico’s people is crucial for the MOA to be successful in having many Mexican tourists.

Mexico has different traditions, values, norms, and shopping experiences than the US, therefore

to make the tourists feel more comfortable, the cultural differences need to be accurately gauged.

We found that there are many opportunities for The Mall of America to inform and

attract tourists to the mall. Beginning with their website, we found that it is very hard to navigate

with cell-phones. Many people are now using their Smart phones to look up an ever increasing

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amount of web content. The website needs to be made more assessable for these people. Other

opportunities they might have are Social Media sites. Having access to people on these sites

should be a huge opportunity for the mall to let people know what is happening. One threat that

we found out about the MOA is that since Smartphone’s have existed the web traffic from the

MOAs official site has dropped 50% (MOA PowerPoint). Although this is seen as a threat, there

is also a huge opportunity that goes along with it. This threat makes it easier for other malls in

the local area to look more professional and make it seem easier to shop at their malls. Although

the MOA has a tough security system, safety at the mall is always a threat. The size of the mall

makes it just too big to keep track of everyone. The mall is a favorite hangout place for many

teens around the Twin Cities, where teen crime rates have been a problem. Security has been

unable to stop many rapes, robberies, and other fights on the premises (ArtsPublication).

Market Analysis:

3.1

From our initial research, we have determined that both in Mexico City and Minnesota,

there are no travel initiatives that are currently in place. The Explore Minnesota office has

planned several joint sales activities and participation in upcoming trade shows in the months

ahead as per the Director of Travel Trade Marketing at the State Tourism office. One issue that

could affect tourism inbound to Minnesota is the general perception of the United States in

relation to the recent state law enacted by Arizona, SB-1070. The State of Minnesota’s official

stance on this new Arizona law is that they are boycotting such legislation. The state takes a very

critical view on the recent Arizona law, due the fact that a decent sized population of Mexicans

resides here, who actively provide to the local economy. Saint Paul, for example, has taken an

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official stance by banning all travel to the state of Arizona on taxpayer money and plans to

boycott the 2012 Political Conventions (City of Saint Paul, 2010.)

Therefore, the fact that Minnesota takes a strong stance on this law; this could be used as

an advantage when trying to market Minnesota as a tourist destination. As far back as 2007,

Aeromexico had applied for, and won Route authority to commence flights to Minneapolis from

Mexico City, but they have yet to act on being awarded the slots by the US Government. With

Delta now starting flights between Mexico City and Minneapolis, the chance of them actually

acting on their rights remains rather low at this point. One thing to note is that via the Skyteam

Global Alliance, both Delta and Aeromexico are partners through this alliance.

According to the U.S. Department of Commerce (U.S. Commercial Service, 2009), in

2008, spending by Mexican travelers totaled $9.7 billion, of which 75% of this spending was tied

to only 1.7 million Mexicans who traveled to the United States by air. It is to note that this

counts for less that 20% of the total visitors who provided 75% of the total amount spent.

One of the main benefactors of the Mexican tourists is the shopping industry. In fact, shopping

expenditures are often at the top of the list of overall tourism expenditures based on visitor

studies (Cai, Lehto, & O’Leary, 2001).Bojanic’s (2009) research found the following: The

results of these early studies suggest that bachelors, newly married, empty nest, and solitary

survivor are the FLC stages with the highest amounts of discretionary income. This is

particularly important to organizations that market leisure travel (Bojanic, 2009, p. 2). According

to governor Pawlenty (State of Minnesota, 2009), “Over the past ten years, Minnesota’s exports

to Mexico have risen from the 13th largest market to the 6th largest.” Positively Minnesota (Dept.

of Employment and Economic Development. 2010) states that Mexico is currently the 4th largest

export market for Minnesota.

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3.2

The most popular destinations internationally for Mexican travelers besides the U.S is

Canada (http://en-corporate.canada.travel). Consumers in Mexico appear to be more positive

about current economic situation and their ability to purchase big-ticket items seems to be strong

as well.  “Mexico has seen strengthening economic activity in 2009 and is expecting a 4.5%

GDP growth in 2010 and 5.1% in 2011, reflecting global economic growth” (Source: Oxford

Economics May, 2010). Mexican travelers made 161,100 overnight trips to Canada in 2009 and

Mexican travelers spent on average $1,438 per person-trip. The average stay in Canada was 22.5

nights. Pleasure travel has remained the most popular reason to visit Canada, holding 42% of the

market in 2009, while visit friends and relatives came in second, with a 25% share of the market.

Spring and summer was the most popular time for Mexican travelers to visit Canada and the age

group of under 24 years of age was the largest proportion of Mexican travelers. (http://en-

corporate.canada.travel) Canada is second only to the US as the most preferred international

destination of Mexicans (2010 Canada Tourism Commission). The high costs of the American

dollar and the Euro are important factors that have helped maintain Canada's position as an

accessible and affordable destination for Mexican travelers. However, the world economic

situation and the H1N1 (swine) flu outbreak in the country resulted in a decrease in the number

of Mexicans travelling. Those who are travelling are more likely to visit local destinations such

as Veracruz which is the most popular destination for Mexicans to travel within Mexico

(http://travelstate.gov). Also, in July 2009 the announcement that Mexicans travelling to Canada

would now require a visa has had a negative impact on Canada's welcoming image. This is a

great opportunity for the U.S to appeal to Mexican traveler.

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The destination for Mexican travelers in the U.S has changed dramatically in the last few

months. Arizona used to be a bi-annual shopping stop and travel destination for many wealthy

Mexicans, but not anymore since the new immigration laws (http://marketplace.publicradio.org ).

Many Mexicans would travel to shop at the malls in the southern U.S states. This has now been

put on hold. But the U.S is still the leader with 87% of the market share when it comes to

Mexican travelers. The competition is getting stronger with Canada and Europe. Within the U.S

Los Angeles is the largest with 21.6% followed by Miami with 11.4% and New York with 9.4%

of the tourist market share. Why Mexicans travel to the U.S is broken down into four different

segments the largest being vacations and Holiday with 41% then Business being 27%, Visiting

relatives and friends being 26% and last conventions being 6% (www.rsana.com/). What this

tells us is that when Mexicans travel to the US they are coming to relax and spend money. But

that 27% who come for business is an opportunity for Minnesota as well for MOA.

3.3

MOA Conducted 38 tour operator and media familiarization trips to MOA® from

international markets such as Scotland, England, Holland, Germany, Japan, Mexico, Iceland,

Sweden, Norway, Denmark and Canada. There have been continued sales efforts in rapidly

expanding Latin American markets by meeting with tour operators from Mexico, Brazil, Peru,

Argentina and Venezuela. Mall of America® offers over 70 travel packages from 32 countries on

5 continents represented on this map. (MOA Marketing Plan)

From the map in the appendix, it depicts that most of the shoppers who visit are mostly

from the upper Midwest and the East coast. Very few visitors come from the southeast, and an

even fewer percentages of visitors come from the West coast... This could easily be attributed to

people from warmer climates not being able to withstand the seemingly five-month cold season.

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The UTAH Tourism Office does not seem to do much to attract Mexican visitors. What

they do have, is a large population of Hispanic descendants and inhabitants who instill the

impression that UTAH is a welcoming place for Mexican visitors. The Institute of Public and

International Affairs state that Utah has always been a destination for outdoor enthusiasts with a

variety of recreational areas and activities. Also, on the travel website in UTAH,

(travel.utah.gov) the facilitators put together events like “Fuzion and National Night Out” -

Fuzion brings a “no boundaries or borders” style to their music, creating a “fusion” of musical

styles including Latin, funk, reggae, country amongst other genres.

Presently, the Quebec Office of Tourism is not doing anything specific to attract guests

from Mexico. They do, however, incorporate the awareness that there are many visitors from

other nations who visit Quebec. Therefore, their website has an array of languages that are

offered. A tab that is easily located on their site allows visitors to easily switch between

languages. The section of the page for Mexican visitors is tailored to suit the ethos appeal of

Mexican visitors. For example, destinations and events featured for American travelers are

different from destinations and events offered to Mexican tourists. The website

(http://www.canada.travel) provides a list of places to go, cities to see, and events that almost no

one can say no to. There are pricing and packaging information on the website, a list of other

interests, and of course accommodation. This is one reason why that region sees so many

tourists, which is attributed to the bundling of services and transportation into one package.

In essence, applying this level of specialization allows Mexican visitors to believe that

they are welcomed in that country. The Mall of America should incorporate into their own

website some sections in Spanish, in order to take the first steps at welcoming guests from

Mexico City.

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Chart 1.1

Persons of Hispanic or Latino origin

State % USA %

Utah 12.0% 15.4%

Arizona 30% 15.4%

Minnesota 4.1% 15.4%

Quebec 0.91% 15.4%

The chart above visually shows a slight popularity of Hispanic individuals in Utah and

Arizona. Compared to Minnesota, Utah has three times as many residents of Hispanic. Apart

from the fact that Utah is closer to the border of Mexico, it can be easily argued that more

Mexicans are more viable to visit Utah than they would Minnesota because there will be able to

get along more with their own kind. The MOA flash website is very well laid out, but it is not

appealing to anyone else who does not speak, write, or understand English. Having the website

offered in Spanish language would be beneficial to help target Mexican guests.

The MOA website is currently available in Japanese at http://www.link-usa.jp/go/moa/index.html.

Flight Data Mexico City to Utah --- Cheapest Price $690 after Tax Mexico City to Minnesota -- $853 after tax Mexico City to Quebec -- $922 after tax

Search Date (7/18/2010)

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These prices are for the time period of the 10th -15th of January, 2011. January can be considered

as a peak season for travel; however the ticket prices are shown for what it would cost today.

These prices can fluctuate based on availability and demand. During the off peak season like

September, the fares were about a hundred dollars cheaper than they were for January. The

prices were taken from Delta Airlines website, to reduce inconsistency. The Delta website was

used simply due to the fact that the Minneapolis-Mexico City nonstop service begins December

18, pending the approval of the Mexican government. (cheapoair.com)

An interesting point to note is that destination branding has always been a major deciding

factor on where Mexican visitors travel. According to the U.S. Commercial Service in Mexico

City, Los Angeles, Miami, and New York are the top three places Mexican shoppers go to.

Reasons why Mexican shoppers visit these places more often is perhaps due to the fact that these

are major cities, and they have a lot of diversity as well as many people from their own culture.

The top three destinations are located on Costal regions. These cities can usually be associated

with high standards, high quality, and Luxury, meaning that it can be an alternative to visiting

London or Paris. Accessibility to these locations has been made easier to visitors from Mexico,

due to low-cost airfares. Plane tickets are slashed by 50%+ from what they would initially cost

when compared to traveling to Utah, Quebec or especially Minnesota. (Note: Utah is much

closer to Mexico than California but the cheapest one way ticket from Mexico City to Utah is

$619, and the cheapest one way ticket from Mexico City to Los Angeles is $380 when booking

for one week between the end of august and the beginning of September)

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Mexico City to New York, Los Angeles, & Miami -$300 - $400 (Current Prices as of 7/28/10 for august travel) (www.bing.com)

Pros And Cons of Mexican visitUtah Quebec Mall of America

(MN)

Trade shows Terrain Family Vacation/Camp

Packages Tourist info printed in

Spanish Sustainable Hispanic

population Pressure from Arizona

law

Website fully translated in Spanish

Destinations tailored for Mexican guests

Lot of Pictures of destinations to entice

Visa needed

Open minded Family orientated Diverse Nickelodeon

Universe Package Border crossing

card

Effects of the Arizona Law The Arizona law was signed April 23, 2010, its aim is to “…identify, prosecute and deport

illegal immigrants” as well as to “…make the failure to carry immigration documents a crime

and give the police broad power to detain anyone suspected of being in the country illegally.”

(New York Times, April, 2010). Since this law has been passed, government officials in Utah

have been feeling pressured since the state of Utah is directly above Arizona on the U.S. map.

When Arizona passed legislation requiring employers to use E-Verify in 2007, an illegal

alien living in Arizona was quoted as saying, "My plan is to go to Utah because I see a lot of

problems here." Another illegal alien said, "It is very quiet there [Utah]. There is less chance they

are going to come and deport me." (Center for Immigration Studies)

First coast news covered this particular controversy, they interviewed several other illegal aliens

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about their plans for the future and some were thinking about going back to Mexico. Others are

considering moving to states such as Oregon, Utah, New Mexico, Texas, Illinois and New York.

Global Marketing Strategy:

4.1

According to the U.S. Department of Commerce (U.S. Commercial Service, 2009),

“Wholesale operators continue to be the most important distribution channel in the Mexican

travel and tourism market.” This is due to Mexicans generally not being confident about

providing their credit card information over the internet.

Out of twenty calls and/or emails to Travel Agencies in Mexico City, none of them

offered a single travel package to the Mall of America. Calls and emails were placed to agencies

located in: (8) Miguel Hidalgo, (4) Ciudad Nezahualcoyotl, (5) Benito Juarez, (3) Gustavo A.

Madero. Two agencies out of twenty in the Districto Federal said that upon request they can

bundle a package for people who are interested, but the demand barely exists. When asked if

travel agencies work with Mexican businesses, fourteen out of twenty said yes, but customers are

mainly individuals.

Thirteen businesses advised to look for financial companies like Banks, because they are the

ones who offer travel packages to their employees and clients as rewards. Three agencies said

that shopping centers offer travel trips to their customers in a way of lottery (Win a trip to

destination X, just fill out this form and submit it). The average of the frequency of when

employees received benefit packages amounted to once every three months.

Out of fifteen calls and emails to Businesses in Mexico, only four offered employee

benefits. Calls and emails were placed to (7) Coyoacan, (3) Ciudad Nezahualcoyotl, (4) Benito

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Juarez, (1) Miguel Hidalgo. All four of the companies who offered employee benefits were

banks. When asked what their recent benefits were, FIFA World Cup 2010 for two, I-Phone,

Disneyland (Florida), and prices valued below 5000 MXN = $400 US. The businesses who did

not offer employee benefits advised to look for companies who employ more than 50 employees.

When asked if they would consider giving a luxury shopping trip (compras de lujos en

Minnesota Mall of America) all four Banks said yes. The names of the four banks that we

contacted were: HSBC Sucursal Torre Mayor S.A. de C.V., Afore Santander Mexicano, Ixe

Banco, and Santander. It has been identified that most banks are located in the following

districts; Miguel Hidalgo(110) and Coyocan (80). In the districts of Miguel Hidalgo and

Coyocan, the three banks that were represented the most were: HCSB, Santander, and Banamex.

In Miguel Hidalgo 15 HSCB Banks, 15 Santander, and 20 Banamex have been indentified out of

approximately 110 banks in total.

According to the U.S. Department of Commerce (U.S. Commercial Service, 2009), “most

Mexicans like to buy packages that include admittance and transportation to the main attractions

and amusement parks they visit. According to the Minnesota Trade Office (B. Mattson, Personal

Communication, July 30 2010), there are approximately twenty Minnesota-based companies that

have extensive operations directly in Mexico City. Those companies include: 3M, ADC

Telecommunications, Best Buy, C.H. Robinson, Cargill, Donaldson Company, GE Capital

Solutions Fleet Services, Imation, Dairy Queen, Medtronic, Hoffman Enclosures, Starkey, and

Mosaic. As far as Minneapolis travel agencies doing inbound travel from Mexico and Mexico

City, Carlson Wagonlit Travel has an office in Minneapolis and they are the world’s largest

business travel management company. They also have an office in Mexico City. Total revenue

generated in 2008, including joint ventures, was 27.8 billion dollars. This company is based in

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France but is partnered with Carlson Companies which is based out of Plymouth, Minnesota.

Carlson Wagonlit Travel has many global connections, which would be beneficial for marketing

Mall of America through their agency. After contacting the office in Mexico City, the agent said

that the three most popular destinations for Mexicans out of Mexico City are Panama City,

Panama, Houston and San Antonio Texas. It was discovered that when booking the flight via the

website, the Delta flight to Minneapolis had a 5% temporary discount offered.

4.2

The business to business potential target market which has been chosen is the

banks in Mexico City. The characteristics most of the banks are that they are limited liability

companies. We have also identified that there are approximately 20 major banks, with each

having more than five branch banks within Districto Federal. Most are located within the

following districts: Miguel Hidalgo, Benito Juarez and Coyoacán (Appendix 4.2). Upon

reviewing the target market, our research has shown that it would be wise to target the banks that

are the largest, as they have the most branches, therefore, having access to more capital

resources. A few examples to target would be:

HSBC S.A. México, Afore Santander Mexicano, Grupo IXE, Santander, Banco Azteca, The

Royal Bank Of Scotland México, S.A., Banamex, and Banorte.

In the Appendix, our research has identified fifteen additional banks that operate within

Mexico City. Of the ones identified, it is of special interest that several are Multinationals.

4.3

As stated, the main target markets are banks. The large banks in Mexico City have more

capital to bundle a shopping package for their employees and clients. The costs associated with

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this shopping bundle will be the first thing to be considered. Also, the length of time on vacation

and peak banking seasons, and return times are big factors as well. The MOA will represent a

luxury shopping experience for the consumers. Since there are far too many stores to advertise,

the MOA will showcase major high end upscale stores like Burberry, Coach, Guess, and True

Religion. The banks can offer the shopping package to employees in several ways:

For Sale

Gift

Business retreats

Reward

Benefits

Bonuses

In order to be more cost effective, the bundle package will only be for the MOA experience. The

package should consist of a flight, hotel and transportation to the MOA. If the hotels are closer to

the MOA, shuttle buses can be easily provided. By making the package entirely for the MOA

alone, the cost of doing business will be lower for both the MOA and our target market. It also

makes it easier for our market to decide when their employees can receive the package. This way

they would not need to adhere to a package deal that is only good for a certain period of time (for

example, a previous bundle would only good between September 18-21st because the

Timberwolves game and the Tyler Perry play are on that weekend).

The Target market (banks) should perceive the destination (MOA) as luxurious and

representative of the U.S. “….strong local economies help pull Mexicans from Mexico” (New

York Times) The MOA is an indoor city itself with so many things to do and such little time to

spend. The MOA differentiates itself by promoting a green environment and the use of

25

renewable energy. The Mall of America is also the best place to shop (indoor mall) in any

weather 365 days a year. It features approximately 520 stores; a combination of restaurants, retail

and entertainment. The Mall also gives accessibility to upscale stores that cannot be found at a

regular outlet or in local areas. The environment is customer friendly and the people are very

diverse.

Our B2B strategy is to large banks that embrace the idea of keeping up with their

employee satisfaction to hopefully reduce turnovers. This shopping getaway is for all large banks

with a flexible budget and upper class business employees. The mall features 520 stores, which

includes several hard to find luxury stores and major attractions like Nickelodeon Universe and

Underwater Adventures .The Mall of America is an indoor shopping experience that is easily

accessible and has the best security, it is guaranteed to be the destination for all shopping needs.

“MOA is the best place to spend time and spend money

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12.1 Conclusion/Recommendations:

In conclusion, we have found that the Mall of America should target high-tier

banks to form an effective B2B relationship. This is due to high revenue and buying potential of

employees and customers. After speaking with four different banks we found that they already

offer benefit packages to their employees. All four banks said they would consider giving a

luxury shopping trip (compras de lujos en Minnesota Mall of America). The names of the four

banks that we contacted were: HSBC Sucursal Torre Mayor S.A. de C.V., Afore Santander

Mexicano, Ixe Banco, and Santander.

This would give the Mall of America the opportunity to offer different luxury packages to the

upper-class, who will spend money upon their arrival.

Knowledge of AZ law. (Lobby against)

Translate website

Language/help accessibility in MOA

Bilingual customer service

When travelers from Mexico travel to New York or Los Angeles, it easier for MOA to infer

that distance between Mexico and Minnesota is not always a problem. The airline industry

must be aware of the growing market of Mexican visitors that have been traveling to these

destinations; so in order to capitalize from the consumers, they lower the prices to these

particular destinations by yielding the buyer power of consumers and applying economies of

scale.

27

Appendix:

3.3

28

Appendix to 4.2

29

TOWS ANALYSIS MATRIX

External Opportunities (O)1. International Markets2. Cell phone (marketing)3. Increase MOA on face book (just one picture on main page)??4.Social Media5.Green movement

External Threats (T)1. Competition / Smaller stores2. Outlet malls3. Other large indoor malls (like in West Edmonton in Canada and Dubai Mall)4. Online Shopping

Internal Strengths (S)1.Size and # of stores2. Go green (energy efficiency)3.Indoor shopping4. Security5. Luxury brands6. Accessibility (cost)

Luxury brands & Social Media

# of stores & Intl. MarketsIndoor shopping &

Go green & Green movement

Indoor shopping & Outlet malls

Security & competitionLuxury brands & Online Shopping (real/fake?)

Accessibility & similar competitors

Internal Weaknesses (W)1. International diversity2. Language barrier3. Security (teens)4. Theft

Language barrier & Social Media

International diversity & Cell phone (marketing), MOA on face book

International diversity & Other large indoor malls (both may have little or no diversity)

30

List of Banks

Grupo IXE http://www.ixe.com.mx/portal/

Banorte http://www.banorte.com/portal/banorte.portal

BITAL http://www.hsbc.com.mx/1/2/

Scotiabank Inverlat http://www.scotiabank.com.mx/IN/Pages/default.aspx

BANAMEX http://www.banamex.com/

BBVA-Bancomer http://www.bancomer.com.mx/

BANXICO http://www.banxico.org.mx /

Hsbc México S.A. http://www.hsbc.com.mx/1/2/en/home

Banco Azateca http://www.bancoazteca.com.mx/PortalBancoAzteca/inicio.do?flash=true

Banca Afirme http://www.afirme.com.mx/Portal/Portal.do

Bansefi http://www.bansefi.gob.mx/Paginas/Inicio.aspx

Banco Wal Mart http://www.bancowalmart.com/

Banco Interacciones http://www.interacciones.com/portal/?id_category=1

Banca Mifer http://www.mifel.com.mx/Portal/?id_category=1 The Royal Bank of Scotland México, S.A. http://www.rbsbank.com.mx/psp/public/pagebuilder.aspx?page=mxen0100

Ixe Banco Paseo de La Reforma 505, 06500 Ciudad De Mexico, Distrito Federal 01 55 5268 9000

Hsbc Sucursal Torre Mayor S.A. de C.VPaseo de La Reforma 505, 06500 Ciudad De Mexico, Distrito Federal 01 55 5286 3869

HSCB Mexico D.F. Tel: 5262 9105 , 5262 9117

Ixe Banco Ciudad de México: 5174 2000

Ixe Banco Teléfono(s): 5658 3441

Banco Santander Tel. (55)5544-2092 / 5544-6306

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Santander S.A. Tel. (55)5424-3984 / 5424-4153

Alaila Restaurante Teléfono: 56166336, 4912

Benkay Restaurante Teléfono: 5280-1111

Global Trip Mexico Teléfono: (55) 53617032

Ecoexploradores Teléfono: 26147959

Ortega & Zepeda Abogados Tel: 5555591754

Integradores Tecnicos Mexico Tel: (0155) 46109210

Silaracks Tel: 55-38749972

Web Empresarial Tel: 01+55-41738176

MUEBLES Y DISEÑOS URIBE Tel: 55 26362491

Ramon Tel: (55) 42042169 o 70

Servicio Tecnico Rf Tel: 005.530-2217; 005.530-2267; 005.530-4770

Viajes Liberación México - 01 55 5279 4010

Agencia De Viajes, Viajes Aviamex Tours De México, S.A. De C.V 01 55 5705 2072

Kinich Coyol Viajes de R.L. de C.V. 01 55 5525 7512

Viajes de Superacion Tel: 55-52545122

Viajes Sol y Son Tel:01 55 5545 8215

Viaja a las Estrellas 01 55 5395 1203

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