InternationalMarketing Plan –Basecamp PeruStan Iakovlev and John Relyea-Voss
Agenda Introduction PESTLE Target Market Analysis Market Entry Competitive Analysis Service Plan Distribution Advertising and Promotion Strategy SWOT Conclusion
Introduction¡ Base Camp International Hostels is your “home away from home” in Costa Rica, Nicaragua, Ghana, Ecuador, Peru and Nepal (Basecamp Hostels, paragraph 1)¡ Base Camp offers volunteer programs, hostel experiences, and internships internationally
PESTLE Analysis¡ A country overview including a PESTLE Analysis for Peru can be viewed separately here
Target Market Profile¡ Basecamp’s target market profile uses demographic, psychographic, and geographic profiles to maximize the effectiveness of our marketing plan to our intended audience Primary Secondary Age 18 - 25 40 – 60 Gender Male / Female Male / Female Location North America North America Lifestyle Students seeking Retired or “mid- valuable life-crisis” adults international who need a experience positive change
Target Market Analysis¡ Basecamp allows anyone over the age of 16 to volunteer¡ Two distinct groups of international volunteers ¡ Students who need the international experience / value ¡ Adults who are looking for a change in their life¡ Geographically, volunteers can now come from anywhere due to globalization¡ North American volunteers are prominent because of access to programs such as Basecamp
Market Entry¡ Basecamp international uses alliances for their global market entry strategy.¡ Basecamp collaborates with a network of other companies in order to achieve their given projects/ objectives.¡ Comparative advantages with companies that operate Inside Peru allow Basecamp for offer lower hostel costs per night than a standard price comparable for a hostel in Canada or the U.S. (Because of this Hostel.com has some of the lowest hostel prices internationally)¡ A diversification strategy in Basecamp has allowed them to open volunteering programs in multiple countries throughout the world.
Global Competitive Analysis¡ Global Volunteer Network¡ “The Global Volunteer Network (GVN) offers volunteer opportunities abroad in 25 community projects throughout the world” (Its your choice, paragraph 1)¡ This global competitor has programs ranging from teaching, healthcare, construction, and animal rescue located all over the world¡ Target Market = young travelers, volunteer workers¡ Global Volunteer network uses their website to advertise volunteering programs, deliver information to applicants and consumers who want to volunteer.¡ “Founded in December 2000 by Colin Salisbury, its Founder and Executive Director, after spending time volunteering in Ghana, West Africa”(Who are the Global, Paragraph 2)
In-country Competitive Analysis¡ Developing World Connections¡ “Developing World Connections provides International Volunteer Experiences to people of all ages and backgrounds” (Who we are, paragraph 1)¡ Target Market = young travelers, volunteer workers¡ Developing World connections uses their website as well as websites advertising on other non profit organization’s websites to advertise volunteer programs internationally.¡ Also a global competitor, this company operates in Peru doing the hands-on work of building educational and community facilities in both rural Peru and in poor outskirts of Lima¡ Smaller volunteering company only supplying 13 volunteering destinations internationally.
Indirect Competition¡ www.Hostel.com¡ “Hostels.com is the ultimate resource for backpacking and hostelling.” (About Hotstel.com, Paragraph 1)¡ Target Market = young travelers, and backpacking travelers.¡ Hostel.com uses online advertising for customer awareness of their hostel programs.¡ “Hostels.com features the most comprehensive selection of hostels on the internet with almost 35,733 hostels listed.” (About Hotstel.com, Paragraph 2)¡ Indirect Competition aimed towards attracting consumers to backpack/travel rather than volunteer internationally¡ Hostel.com offers more than 35,000 hostel locations internationally for very low prices.
Service Plan¡ Highlighted key aspects of service mode, process, pricing¡ Challenges of marketing a service abroad¡ Comparison to competitive analysis (Prices, Table 6)
Service Plan• “Program fees covers all in country expenses and costs including accommodation, meals, language training, activities during orientation week and cultural training. “ (Prices, Paragraph 1)• Prior to setting up volunteer work, the process that volunteer abroad undertakes includes, visiting with the organization to fully understand the work being done, and conduct a placement assessment.• Part of Basecamps service plan includes online live support to assist anyone visiting the website. This helps increase consumer engagement with the services that Basecamp provides.• Comparing pricing, service mode, and process to other international competitors, hostel.com offers much lower prices on non-volunteer programs.• International media availability makes advertising online for basecamp programs access a wider range of customers/ volenteers.• Basecamp fees have on average more expenses included in price than other hostel international volunteer programs.
Drivers of Globalization1 Environmental – international volunteers are generally well received in each country2 Market – international volunteering is prominent and on the rise as global issues come to light3 Cost – labour and operation costs are comparatively lower in 3rd world / underdeveloped countries4 Competitive – other hostels are present in Peru
Distribution Considerations¡ Channel Relationships ¡ Need to maintain relationships with partners in Peru ¡ Allows distribution throughout channels to move effectively¡ Integrated Distribution ¡ Physical distribution can be aligned globally to save costs¡ Grey Market Alternatives ¡ No alternatives for hostels ¡ Hostels are already considered part of the “Grey Market”; not being a completely fundamental hotel
Advertising and PromotionStrategy Where? Peru / Worldwide When? Over 2012 To increase brand awareness Why? amongst our determined target market To our primary and secondary Who? markets (see Target Market Profile)
Advertising and Promotion Strategy Considerations¡ Positioning Differences ¡ Our two target market profiles can be advertised to and reached through very different mediums due to the difference in age¡ Media Availability ¡ Advertising in Peru will be difficult ¡ Low on the Technological Rate Index, few technology-based mediums available
SWOT Analysis Strengths Weaknesses • Peru’s index for business freedom of 72 makes it ideal for • Rule of law and levels of Base Camp to do programs. corruption undermine prospects • Popular destination for for long term economic vulunteers and travelers looking development. for a jungle like experience • Not safest country to volunteer/ • 8.8% growth of GDP last year travel in with population of 28.9 million • 35% of population lives below • Low conservations 4 week poverty line (Background, volunteer program costs Paragraph 1) compared to competitors. Opportunities Threats • Chance to increase market • Foreign ownership in the share for traveling and hostel financial sector is also growing. industry. • Rule of Law is not strongly • Online presence makes Upheld advertising available to a wider • High levels of government international audience corruption • Growth in international travel, and volunteer programs increase potential number of travelers and volunteer applicants.
Conclusion¡ Weak PESTLE Analysis¡ Keeping key considerations in mind can ensure success of Basecamp’s implementation in Peru¡ Be aware of cultural differences when trying to glocalize¡ Go for it.
References¡ About Hostels.com.(March 19, 2012).Hostels.com. Retrieved from http://www.hostels.com/credits.html¡ Who we are.(March 20, 2012).Developing World Connections. Retrieved from http://developingworldconnections.org/index.php/aboutus¡ Who are the Global Volunteer Network?.(March 21, 2012). Global Volunteer Network. Retrieved From. http://www.globalvolunteernetwork.org/about/¡ It’s Your Choice.(March 21, 2012).Global Volunteer Network.Retrieved From http://www.globalvolunteernetwork.org/programs/¡ Prices. (March 21, 2012). BaseCamps International. Retrived From http://www.basecampvolunteerabroad.ca/sites/bc-volunteer-abroad/index1.cfm? pagename=Prices&category=23&page=81¡ Base Camp Hostels.(March 21, 2012).Base Camp International Centers. Retrieved fromhttp://www.basecamphostels.com/sites/bc-hostels/index1.cfm? pagename=BaseCamp%20Hostels&category=109&page=520¡ Quick Facts.(March 21, 2012) . Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom¡ Regulatory Efficiency.(March 21, 2012). Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom¡ Background. (March 21, 2012).Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom