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Marketing Plan
Uniqueness Travel Agent
HTM 2121 Tourism and Hospitality Marketing
Chan Hoi Yi, Emily 10554711D
Chan Wan Lun, Janice 11354512D
Tai Yip Chung, Johnson 11516279D
Tsang Siu Hang, Steven 11566166D
Uniqueness Travel Agent
Mission
To become the leader of the Asia Pacific Region travel agent for business
Objectives
To acquire 30 tours during the peak season of 2013
To achieve 150,000 net profit during the financial year of 2013-2014
To maintain the cost within 70% of the total revenue.
External Environment Analysis
Examine opportunities and threats
Consists of:
Macro environment
Demographic, Political, Economic, Social-Cultural, Technological and Natural
Micro environment
Suppliers, Marketing Intermediaries, Publics, Customers and Competitors
Macro Environment Analysis
1. Demographic Opportunities:
Huge market with continuous growth
41,921,310 visitors arrival in 2011, +16.4% (HKTB visitor arrival statistics,2011)
High spending MICE visitors with significant growth
1.43 million MICE visitor arrivals in 2010, +22.8%
per capita spending of HK$8,475, +25.9% compare with overnight visitors (HKTB annual report 2010/11, 2011)
Mainland China is the dominant market
41.8% MICE visitors come from mainland China (HKTB annual report 2010/11, 2011)
Marketing strategies need to be developed for reaching them
2. Political Opportunities:
Streamlined VISA restriction for visitors to Hong Kong
Visit Hong Kong for visa-free
Over 170 countries or territories
Frequent business travelers with APEC Business Travel Card
Threats:
Travel agent license need to be renewed annually
Macro Environment Analysis
3. Economic Opportunities:
Rapid economic growth in China
Threats:
Uncertainty in the USA and European economics
Minimum Wage Ordinance in Hong Kong
Macro Environment Analysis
3. Social-Cultural Opportunities:
Increasing health conscious
Half-day relaxation itinerary
4. Technological Opportunities:
Advancement and increase popularity of E-business
Increase number of Smartphone users
491.4 million smart phones sold in 2011 (Brownlow, M., 2012)
Threats:
Careful management on electronic word of mouth
Macro Environment Analysis
6. Natural Threats:
Heavy air pollution threaten visitors away
A survey conducted with tour guides (Yung, C., 2006)
50% thought Hong Kong having heavy air pollution
Macro Environment Analysis
Micro Environment Analysis
1. Suppliers Opportunities:
Various high reputation suppliers in Hong Kong
Car rental companies
Michelin recommended dining restaurants
Luxury brands
Threats:
High dependence on multi-suppliers
High negotiating cost incurred in the business
2. Marketing Intermediaries Opportunities:
Advantages from advancement in E-business
Cost effective e-marketing
Threats:
Heavy competition on e-marketing
First priority cannot be assured
3. Publics Threats:
Complains from environmental groups
Limousines service
Micro Environment Analysis
4. Customers Opportunities:
Rich but time-conscious business travelers
Offers luxury itinerary package yet with high flexibility to satisfy the business travelers’
Threats:
Demanding and high expectation
Pay for high quality service
Any mistakes would bring dissatisfaction
Micro Environment Analysis
5. Competitors Opportunities:
None have single focus on business visitors
Without local tours’ e-booking or reservations services
Co-production cannot be found
Allow alternation between choices
Create their unique tours
Threats:
Numerous retail outlets or cooperation with hotels
Highly accessible by customer
Micro Environment Analysis
Target Market
Extensive
service
Expensive
Minimum
Service
Less Expensive
Fig.1
Fig.2
Target Market
Locals Visitors
Business Travelers (MICE)
Organizers
Participants
Individual
Group
The reason is … • Hong Kong is an international city
Government support
Hong Kong Trade Develop Council (HKTDC)
Host more than 110 exhibitions each year
Attracting 62,000 exhibiting companies and 5 million visitors (TDC, 2012)
Visitors’ purpose of visiting by
Major Market Areas Jan-Jun 2011(HKTB, 2012) Tourism Expenditure Associated to
Inbound Tourism Jan-Jun 2011 (HKTB, 2011)
Product
• 4 Tour Itineraries:
One day tour for dining and sightseeing
One day tour for sightseeing, shopping and dining
One day tour for culture and dining
Half day tour for relaxation
Price
Businessmen – high purchasing and spending power
High quality service in luxury approach
Tangible resources enhance overall satisfaction
High cost prestige pricing
People
Place
• Official website - E business
• Booths in Hong Kong Convention and Exhibition Centre and Hong Kong Asia World Expo
• Shanghai Jinjiang Tours Co., Ltd
Promotion
• Advertising strategies HKTDC - Set up information counter in Expo Drive
Launching itineraries competition
Establish joint promotion with Shanghai Jinjiang Tours Co., Ltd
Advertisements on Hong Kong ECHO and E- Mice China business magazines
Uniqueness official website, Facebook account, Forum, Apps, Yahoo search engine
Promotion
• Personal selling Strategies
Lucky draw session in HKTDC counter
Incentive programs
• Direct marketing strategies Direct mailing and on-line retailing
Partnership
Hong Kong Trading Development Council
Shanghai Jinjiang Tours Co., Ltd
F&B partnership like Jumbo Kingdom, Grand Café etc
Fotomax
Dah Chong Hong Holdings Limited (DCH)
Paypal, VISA, Master
Milestone Milestones Start Date End Date Budget Who is responsible? How to evaluate
Promotion
1.Competition 9/2012 1/2013 HK $2000 Sale executive Quantity of participants
2.Facebook/
9/2012 On going $0 Sale executive Volume of website traffic
3.Website/
Apps
9/2012 Regular
Update
HK $36,000 for apps
HK $10,888 for website
(first year)
Sale executive
Webdesign488
company
Volume of website traffic
4.Hong Kong
ECHO
12/2012 12/2013 HK $ 14,400 x 4 issue a
year = $57,600
Sale executive
Hong Kong ECHO
Post-tour
Questionnaire
5. E - MICE China
(Third banner)
12/2012 12/2013 RMB $96,000 for 12 issue Sale executive
Post-tour
Questionnaire
6.Yahoo Search
Engine
12/2012 12/2013 HK $2,000 per month Sale executive
www.yahoo.com.hk
Volume of website traffic
Partnership
1.TDC 6/2012 On-going HK $100,000 Sales executive
Financial assistant
Sales volume transacted from TDC
source
2.China Travel agent 6/2012 On-going 15% commission per tour
(first year)
Sales executive
Financial assistant
Sales volume transacted from the
China Travel agent
2.F&B 6/2012 On-going HK $129,600 Sales executive
Financial assistant
Immediate Feedback and
Post-tour Questionnaire
3. Car rental
(DCH Motor Leasing )
3/2013 On-going HK $17,000 per month Sales executive
Drivers
Financial assistant
Feedback from drivers
Post-tour Questionnaire
Revenue HK$
Tour 1-Tour for dining and sightseeing
($4500 per person x 3 person s per tour x 60
tours per year )
$810,000
Tour 2- Tour for sightseeing, shopping and
dining
($4500 per person x 3 person s per tour x
110 tours per year)
$1,485,000
Tour 3- Tour for culture and dining
($4200 per person x 3 person s per tour x 40
tours per year)
$504,000
Tour 4- Tour for Relaxation (Half Day)
($4300 per person x 3 persons per tour x 30
tours per year)
$387,000
Total Revenue $3,186,000
Less: Expenses
Promotion Expenses
-Website design $10,888
-Mobile app $36,000
-Competition prize $2,000
-Magazine
•Hong Kong ECHO
•E - MICE China
$57,600
$115,200
-Yahoo Search Engine $24,000
-Miscellaneous $10,000
Total promotion expenses $255,688
Budget Operation expenses HK$
-F&B
($1,800 per person x 3 person s per tour x 240 tours a year)
$1,296,000
-Spa ($1,750 per person x 3 persons per tour x 30 tours a year $157,500
-HKTDC partnership $100,000
-Office Rental (Bank Centre Mong Kok) ($20,480 per month) $245,760
-Utility $18,700
-Insurance $30,000
-Car rental (HK $17,000 per month) $204,000
-License free
• Application free for a Travel Agents license
• 12month Travel Agents License fee ($485 per month )
• Business Registration Fee (1 year)
$630
$5,820
$450
Total operational expenses $2,058,860
Human Resource expenses
Salaries:
Financial Department
• Financial Assistant ($12,000 per month)
Sales & Marketing Department
• Product Executive ($11,000 per month)
• Sales representative($15,000 per month)
Operational Department
• Tour guides ($15,000 per month)
• Drivers ($13,000 per month)
• Booth receptionist ($12,000 per month)
$144,000
$132,000
$180,000
$180,000
$156,000
$144,000
Total Human Resource expenses $756,000
Total Expenses ($2,870,548)
Net Profit (Total Revenue –Total Expenses) $215,452
Sales Forecast
Post-tour questionnaire Comprehensive information about their satisfaction
towards the tours, suggestion for the itineraries and identifies effective partnerships
Internal audits Reviewing monthly sales, checking monthly website
traffic and monthly budget control
Website traffic Indicates the effectiveness of our e-marketing
strategies like Facebook/WeiBo promotion and Yahoo searching priority
Sales and budgets Strictly monitored to assure they are keeping within
estimated range and moving towards the objectives
Monthly control
Control
Thank You
Brownlow, M. (2012). Smartphone statistics and market share . Retrieved March 5,
2012 from http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm
HKTDC.com - All Hong Kong Events, Retrieved March 18, 2012 from The Hong Kong Trading Development Council, Web site: http://www.hktdc.com/info/trade-events/ci/HK-upcoming/en/All-Hong-Kong-Events.htm
Hong Kong Tourism Board (2012, January). Visitor Arrival Statistics - Dec 2011. ,
pp.1-22.
Hong Kong Tourism Board (2011, January). Annual Report 2010/11. , pp.52-59.
Tourism Expenditure Associated to Inbound Tourism Jan-Jun 2011 (2011). Retrieved March 20, 2012 from Hong Kong Tourism Board, Web site: http://tw.partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=140001&cat_id=6352&logs=yes&type=FREE
Visitors purpose of visiting by Major Market Areas Jan-Jun 2011 (2012). Retrieved March 20, 2012 from Hong Kong Tourism Board, Web site: http://tw.partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=141874&cat_id=6287&logs=yes&type=FREE
Yung, C. (2006). Air pollution puts tourism in jeopardy, poll reveals . Retrieved March
1, 2012 from http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=14563&sid=7136726&con_type=1&d_str=20060320
Reference