Marketing-Travel Agent (Local Tour)

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Chan Hau Ting, Monica ‎11008516D
‎Cheung Wing Man, Vienna 11227403D
Chung Siu Wai, Dabbie 11133248D
Chung Wai Chi, Vincci 11322106D
Lau Ching Yan, Zoey 11304687D

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Marketing-Travel Agent (Local Tour)

  1. 1. Marketing PlanGreen Travel Limited
  2. 2. External Environment Analysis-(1) Demographic• Population of Republic of Korea (ROK) in 2010 : 49 million.• One ethnic family & speak one language > Korean -main language for communication Estimated Population of Republic of Korea 49 138 48 852 48 564 48 275 47 991 2006 2007 2008 2009 2010 Population(thousand) From: UN Population Division
  3. 3. External Environment Analysis- (2) Economic• Korea annual economic growth :6.2 %• Increasing in GDP in South Korea> good economy & increase in livingstandard of Korean>being encouraged to travel
  4. 4. External Environment Analysis-(2) Economic• Increase in currency exchange rate in Korean Won to USD> increase in intention of consuming ofour target customers
  5. 5. External Environment Analysis- (2) EconomicAccording to“Korea’s Challenges and Opportunities” ,• Inflation- uncertainty of global economy environment- Japan’s nuclear disaster- volatility of capital flows→ lower the Korean’s desire to travel
  6. 6. External Environment Analysis- (3) EcologicalIn Hong Kong,• 75% rural area with mountainous land• 24 country parks with different characteristics• official tourism-related departments :- Hong Kong Tourist Association- The Agricultural, Fishery and Conservation Department> enhances the establishments of natural tourismspots
  7. 7. External Environment Analysis-(4) Technological• The technology is changing fast• Usage of the Internet becomes popular> effective promotion channel for inbound travelthrough the Internet> via various multimedia→increasing competitiveness in promotion amongthe tourism industry
  8. 8. External Environment Analysis- (5) Political-legal• A Tourist Guide Accreditation System on 1 July 2004, by The Tourism Industry Council of Hong Kong(TIC)> ensuring the service quality of tourist guide→ no sufficient tourist guide supplies within thestandard
  9. 9. External Environment Analysis- (6) Social-culturalAccording toKorean National Tourism Organization,• Believes in trees enjoying natural scenery• Loves to eat midnight snack> lots of local snack in Hong Kong
  10. 10. External Environment Analysis- (7) Suppliers• Our business suppliers : traffic, parks & restaurant> more competitive with supplies in low cost• Many destinations : free of charge• Operation of restaurant & transportation : not performed by our company > relatively low cost to obtain supplies
  11. 11. External Environment Analysis- (8)Marketing intermediariesSeveral intermediaries for promotion:• Mass media : most common- Newspaper, traveling magazine & TV• Social media- Internet: effective- Facebook, Twitter & blogging• The cooperation with Korea travel agents• Showcase of leaflets in the airports> comprehensive promotion→ high cost
  12. 12. External Environment Analysis- (9) Publics• Chinese-Western fusion city> attracting tourists to experience the atmosphere• Locals love to eat, outstanding food culture> tasting local snack & variety countries food• Main language in Hong Kong : Cantonese, Mandarin and English→ a little barriers of communication
  13. 13. External Environment Analysis- (10) Customers• ROK : 5th HK’s Top Five Source Markets of Visitor Arrivals in 2010> a rapidly growing potential source market According to HKTB,• Spending only 2.2-2.3 night in HK• Mostly aged 35-40 with high education levels• Vacations with relatives, friends or spouses
  14. 14. External Environment Analysis-(10) CustomersAccording to the study from UNWTO 2007,• Most visitors travel HK independently• 17.7% enjoying natural scenery> ROK is a growing source market of HK> willing to spend money on the trip
  15. 15. External Environment Analysis- (11) CompetitorsMajor competitor : Eco Travel Limited• Attracts nature-lovers• Offers eco-tourism to international visitors• Targets educated visitors• Provides experienced & specialist tour guides
  16. 16. External Environment Analysis-(11) CompetitorsComparing with our product,> more experienced> more resources to provide tours→ focusing worldwide, not nationality→ market segment is too large
  17. 17. Opportunities Threats Demographic -Potential demand for travelling due to growth of population. -Usually only speak one language -Population structure is getting older, meaning their traveler behavior is different and Korean is needed in the tour. Economy -Upturn of economy encourages Korean to travel. -Uncertainty of global economy environment would reduce the -Increasing currency exchange rate would increase the desire of Korean to travel. intention of Korean to consume our products. Ecological -More tourism spots due to government support -Natural environment easily destroyed by unbehaved tourist global warming threathen the natural habitat Technological -Promotion can be via various multimedia. -The increase in competitiveness among the industry. Political-legal -Ensuring the service quality of tourist guide by the -There may not have sufficient tourist guide supplies with regulations, certificate. Social-cultural -Korean believes in trees and loves to eat midnight snack -Korea’s holiday is not as similar as Hong Kong Suppliers -Be more competitive by operate in low cost. -Uncertainties in the process of obtaining suppliesMarketing Intermediaries -Various channels provide comprehensive promotion to the -The cost is high if using all intermediaries. target customers. Publics -Hong Kong is a Chinese-Western fusion city where can - Language barriers celebrate both Chinese and Western festival - Hong Kong’s culture of food and drink is outstanding-Hong Kong is a Chinese-Western fusion city where can celebrate both Customers ROK visitors are a growing source market and they are willing Language is the major barrier for them to travel Hong Kong. to spend money. They like city sightseeing and enjoying natural scenery in Hong Kong. Competitors -Their customers market is wide range which may not provide -They are big companies with plenty resource like staff and specific care to some kind of customers like we do tours operated. -They already have reputation
  18. 18. Objective• Operating local tours• Eco and green environment• Republic of Korean as our target market- usually enjoy natural scenery during their travel journey (Republic of Korea – The Asia and the Pacific Intra- regional Outbound Series, 2007)- the 5th major source market of Hong Kong tourist arrival
  19. 19. From: UNWTO 2007
  20. 20. Target Market Geographic segmentation • Korean who aged 30-60 • Usually travel with relatives, friends or spouses • Working people with highProduct Target Demographic education levels andfeatures Market segmentation purchasing power • Offer tour guide with fluent Korean language skills • Position as a travel agent target specific market or Positioning niche market
  21. 21. Marketing Mix Strategies and Programs Product Price Place Promotion
  22. 22. Product• Main product : One day local eco-tour• 5 main itineraries Hong Kong Geopark Hong Kong Wetland Park→ Tai O Fishing village-> Ha Pak Nai→Lau Fau Shan Giant Buddha & Wisdom path Mai Po Wetland→ Walled village- Nam Sang Wai & King Fai Farm Kat Hing Wai
  23. 23. Itinerary(1) Hong Kong Geopark• Unique natural area with special geological significance & cultural landscapes. Route Theme Time(Hou r) Sharp Island Geo Trail Volcanic rocks 1 Lai Chi Wo Nature Trail Hakka culture and ecology 1 High Island Geo Trail Hexagonal rock columns 1 Ma Shi Chau Nature Trail Sedimentary rocks and 2 Geologic structure Ping Chau Country Trail Sedimentary rocks and 3 scenery Tai Long Wan Hiking Trail scenery 5- 1-2 routes can be joined by the travelers within the same day (except Tai Long Wan Hiking Trail)
  24. 24. Itinerary(2) Tai O Fishing village-> Giant Buddha & Wisdom path • Chinese stilt-house community Tai O Fishing • Kwan Tai Temple and Yeung Hau Temple village • Local shrimp paste and salted fish Giant • Reaching the platform of Buddha • 360o spectacular mountain scenery of Buddha Lantau Island Wisdom • Nearby the Giant Buddha • An outdoor replica of the centuries old path Heart Sutra- lunch is included in Po Lin Monastery
  25. 25. Itinerary(3) Walled village- Kat Hing Wai• Outside the town of Yuen Long• Built about 500 years ago• Rectangular-shaped village• Constructed mostly with blue brick walls• Having fascinating history
  26. 26. Itinerary(4) Mai Po Wetland-> Nam Sang Wai & King Fai Farm Mai Po Nam Sang Wai King Fai Farm Wetland • As a Nature • A wetland in • Inside Nam Reserve eastern Yuen Sang Wai • home to Long • Experience of diversity of • Ride on bicycle nurturing the other wildlife • Nature- mullet • explore the oriented tour of nature and the fishpond and wetland fishery culture ecology- barbecue is included in King Fai Farm
  27. 27. Itinerary(5) Hong Kong Wetland Park-> Ha Pak Nai-> Lau Fau Shan • Home to various wildlife Hong Kong • Themed exhibition galleries, souvenir shop and resource centreWetland Park • Outdoor experience • Partially covered by a wetland Ha Pak Nai • Sunset scenery • Fishing • A fishing village famous for seafood • Tasting fresh seafood in seafood restaurantsLau Fau Shan • Traditional tea dumplings, salted fish, shrimp paste and dried oyster
  28. 28. Product• Guided by a certified tourist guide- proficient in Korean• 6-10 participants in each tour• Image : green- nature, woods and leave
  29. 29. Price• Our average cost per tour: HKD$2,500• By observations from other competitors, common price: around HKD$500• set a slightly higher price than others• HKD$550-600 (depends on the cost of different tours)
  30. 30. Price• Psychological pricing -Judgment of our product’s quality by customers• Prestige pricing -Higher prices than other competitors to create an image of high quality
  31. 31. Price• Special-event pricing -Used in peak seasons> attract more people to join our existing tour> maximize the revenue per tour.
  32. 32. PlaceFor direct marketing channel,• Official website - details of tours as reference• Online booking service - for reservation• Hotline service -for enquiry or reservation> lower the cost of distribution> easier to control the performance of distribution
  33. 33. PlaceFor one distribution channel level,• Hong Kong Tourism Board (HKTB) outsourcing tours• Social media (e.g. Facebook and Twitter) - most updated information & reservations• Korea travel agents - selling our products to the customers> reach our target customers more easily
  34. 34. Promotion• From a study of UNWTO 2007, ROK visitors usually obtain information via Internet and friends’ recommendation. Internet• Official website- forum & blog - for discussion, feedback & answering questions> increase the interaction> build a good customers relationship> reach worldwide with the least cost
  35. 35. PromotionSocial Media• Facebook - Facebook page - with up-dated information• Youtube - short videos - introduction of our tour itineraries Visualizing our service by video & photos Here is our promotion video: http://youtu.be/xwYDEVu2wmg
  36. 36. PromotionContest• campaign -photography/ blog competitions - photos taken in our tour & sharing their feelings - one free tour service as price> drawing attention & attracting revisit customersLeaflet• leaflet at the HK Airport> promoting to potential customers
  37. 37. Implementation milestoneDate Program Details Person Budget responsible1st month Introduction To launch our tours to public. Started the website and Marketing $10000 Facebook page. Upload the video on Youtube. Place Manager leaflets at the airport3rd month Market reaction To check the feedback on the forum of our official Marketing $4500 website and do adjustment and compensation if there is Manager any dissatisfied feedback.5th month Advertising campaign To hold a photography contest on Facebook and official Marketing $3000 #1 website Manager6th month Make a new video and A season change after 6 months, we need to make a Marketing $8500 leaflet new video and leaflet to introduce different activities in Manager the tours8th month Advertising campaign To hold a blog writing contest on Facebook and official Marketing $3000 #2 website Manager10th month Test of market Conduct a market survey online and from customers. Marketing $6000 recognition See whether they can recognize our company products. Manager12th month Design new products Design new products to gain more market share and Marketing $13000 and enhance products enhance products based on the survey we did Manager
  38. 38. Marketing Budget• Average Cost per tour: $2438.4 Tourist guide salary: +$700 = $3138.4 Average Cost per tourist: $392.3• Expected Fixed Cost: (Per annum) Fee for website $600 ($50 per month) Promotion $36000 ($3000 per month) $36600• Breakeven = Fixed cost/(Selling Price- Variable Cost) =$36600/ ($600-$392.3) =176.2units →177 tours per year to breakeven• Expected Sales :$106200

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