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SEM 003 Group 4


Yung Che Ho Marco
11065982D
Chan Ching Ching Tiffany
11080550D
Choi Po Yee Boey
11123861D
Tam Chun Ho Jeffrey
11227877D
Tam Ling Fei Sharon
11151979D                  1
Competitor Analysis
Opportunities and Threats
Objectives
Target Market
Marketing Mix Strategies and
 Programs (4Ps)
Implementation Milestone
Marketing Budget
Marketing Control
                                2
RMB 58 to 348 include many famous
   destinations
   Most of our competitors try to cut the
   budget
    tour guide salary  “Zero-charge Tour
   Groups”
Set competitive Price ,Product and
   Service                                3
   Government interest and support in tourism industry
   Economic prosperity of Chinese residents
   30.2% Increase in Mainland inbound tour registration
   The sufficient supply in ecological sources
   Cultural diversity of East meets West culture of HK
   IT development enhancing promotions through social
    media (e.g. Weibo and applications for smart phones)




                                                          4
   Enforcement of the minimum wage
    ordinance

   Cross-Border Self-Driving Tour

   Imported inflation




                                      5
Periwinkle Travel
-   A flower representing happy memories
-   Has a strong vitality and lifespan

     Mission statement
    “Through our value-added services and with
    our greatest solicitude, Periwinkle Travel
    would like to be recognized as an outstanding
    Hong Kong travel agent providing the best
    and long-lasting unforgettable experience for
    our customers.”
                                               6
   Provide long lasting romantic experience
    during the trip, as well as unforgettable
    memories post-trip
   Emphasize SERVICES
   Attain customer satisfaction in our unique
    services
   To increase the Mainland visitors’ awareness
    of the company name, products and services
   At least 15% customer retention                7
   Licensed Travel Agency
   Well-trained tour guides and tour escorts
   Co-operate with China-based travel
    agents to sell our tours and promote the
    tours




                                                8
• Segmenting

4 Target Vacation Segments by the Hong Kong

Tourism Board

1) mid-career families with children,

2) middle-aged couples

3) young office ladies and

4) young office men


                                              9
   Targeting:
      - Mainland middle-aged couples
      - afford to pay for the premium services
      - well educated
      - similar cultural background
      - 34% of the Mainland tourist population
    traveling with their spouses or partners

   Positioning:
     - Services differentiation
                                             10
 1-day educational based tours
 Suitable for both same-day visitors
  and overnight tourists
 2 types of tours - cultural and
  ecological tours
 Quota for each tour: 20 tourists    11
12
13
Our tour guides would:
   provide basic information about the destination
   lead games during the transportation time to provide
    chances for visitors to know each other
   Pass the Statement of Proficiency in Putonghua & the
    Certificate in First Aid


    Our company would:
   provide monthly updated booklets that would describe and
    suggest some must-seen destinations, shops and must-try
    food and hotels with detailed transportation information

                                                               14
 Introduce  destination background
 games during transition time
 Qualification of = Mandarin and
                   = First aid skills
 Booklets




                                        15
   based on the competitors’ market price
   premium established according to the
    value-added services
   ecological tour: $400 cultural tour: $420
   discounts (10% off) for repeated
    customers and couples


                                             16
Sell tours through the China-based travel
 agencies in Mainland and give them back
 10% commission

        reduce operation cost

- payment can be settled via online
  payment or by phone

      resolve the distance problem
                                        17
Advertising (Cheap/free channels)
   Company website
   social media (Weibo, Tudou, forums)
   print publications
   Applications for smart phones

        Sales promotion
       10 percent discount



                                          18
19
20
21
   Sales




            22
   Expenses




               23
•Enable operations on the right track in achieving
objectives
•Evaluations: Conducted every two months
(especially February: Valentines’ Day)
•Evaluation questionnaires: improve service quality
                            & increase staff morale
•Promotion programs: study the trend of sales
•External Environment Changes                         24
25

                               References (1)
   Absolutechinatours.com Ltd, (2012). Hong Kong Culture. Retrieved March 20, 2012, from
    http://www.absolutechinatours.com/china-travel/Hong-Kong/Hong-Kong-

   Apple Inc., (2012). Retrieved March 20, 2012, from
   http://www.apple.com/hk/

   Au, K.Y.Y, (2008). An analysis of the potentiality and marketing strategies of nature-based tourism in hong kong. School of
    Hotel and Tourism Management. The Hong Kong Polytechnic University.

   ExpatFlats, (2012). Hong Kong Geography. Retrieved March 20, 2012, from
   http://www.expatflats.com/

   Inflation.eu, (2012). Inflation China – current Chinese inflation, Retrieved March 20, 2012, from
   http://www.inflation.eu/inflation-rates/china/inflation-china.aspx

   Lai, K.Y., (2008). Comparison of the travel motivation of mainland chinese tourists to revisit between hong kong and macau.
    School of Hotel and Tourism Management. The Hong Kong Polytechnic University.

   Ho, S.Y., (2006). Marketing Cultural and Heritage Resources for Optimal Cultural Tourism Development: The Case of Hong
    Kong. The Hong Kong Polytechnic University.

   Hong Kong Trade Development Council, (2012). Company Information. Retrieved March 20, 2012, from
    http://www.hktdc.com/sourcing/hk_company_directory.htm?companyid=1X074ZKJ&locale=zh_TW

   Hong Kong Tourism Board, (2011a). Touring. Retrieved March 20, 2012, from http://www.discoverhongkong.com/eng/local-
    tours/tour-guide.html

   Hong Kong Tourism Board, (2011b). Vacation overnight visitors. Retrieved March 20, 2012, from
   http://partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=137529&cat_id=6281&logs=yes&type=FREE

   Hong Kong Tourism Board, (2012a). Market Summary December 2011 – Mainland China. Retrieved March 20, 2012, from
    http://partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?charset=en&doc_id=141669



    Hong Kong Tourism Board, (2012b). Nature Tours. Retrieved March 20, 2012, from
    http://www.discoverhongkong.com/eng/local-tours/outdoor.html
                                                                                                                           26


                                      References (2)
    Hong Kong Tourism Commission, (2011). Visitor Information. Retrieved March 20, 2012, from
   http://www.tourism.gov.hk/english/visitors/visitors_ind.html

   Next Media Interactive Limited, (2011). A number of large travel agencies, tactics coping with the minimum wage, predicting a half number of tour escorts
    would be forced to become part time labor. Retrieved March 20, 2012, from
   http://public.kayman.hk/appledaily/20110419.html#15180884

   Immigration Department, (2011). Annual Report 2009-2010. Retrieved March 18, 2012, from
   http://www.immd.gov.hk/a_report_09-10/eng/ch1/index.htm#b4_8

   Kotler, P., Bowen, J. & Makens, J., (2010). Marketing for Hospitaliy and Tourism (5th ed), Upper Saddled River, NJ: Pearson Prentice Hall

   Makepolo.com, (2012). Beijing to Hong Kong One day tour. Retrieved March 20, 2012, from http://china.makepolo.com/product-
    detail/100149561984.html

   Maslow, A.H., (1943). A Theory of Human Motivation. Psychological Review, 50,       370-396.

   McKercher B, (2009). Non-travel by Hong Kong Residents. International Journal of Tourism Research. 11(6): 507 – 519.

   National Bureau of Statistics of China, (2011). China Statistical Database, Retrieved March 20, 2012, from
   http://www.stats.gov.cn/tjsj/jidusj/

   Reisinger, Y. & Turner, L., (1998). Cross-Cultural Differences in Tourism: A Strategy for Tourism Marketers, Journal of Travel & Tourism
    Marketing, 7:4, 79-106

   State Administration of Foreign Exchange, (2011). Data and Statistics, Retrieved March 20, 2012, from
   http://www.safe.gov.cn/model_safe/tjsj/rmb_list.jsp?id=5&ID=110200000000000000

   Sunshine Holiday Travel Ltd, (2012). domestic tour. Retrieved March 20, 2012, from
   http://www.shtravel.com.hk/index.php?option=com_content&task=view&id=20

   Travel Industry Council of Hong Kong, (2011a). The Voice of TIC. An analysis of cases involving mainland tours, 2011(4), 3-7.

   Travel Industry Council of Hong Kong, (2011b). The Voice of TIC. Industry statistics at a quick glance, 2011(4), 16.

   Travel Industry Council of Hong Kong, (2012). Find a Travel Agent. Retrieved March 20, 2012, from
    http://www.tichk.org/public/website/en/agents/search.html?k_class=org.tichk.Agent"ing=company_name_eng%2Ctrade_name_eng&cat_b101%2Cb102
    %2Cb103%2Cb104%2Cb105%2Cb106%2Cb107%2Cb108%2Cb109%2Cb110%2Cb111%2Cb112&cat_b201%2Cb202%2Cb203%2Cb204%2Cb205%2Cb
    206%2Cb207%2Cb208%2Cb209%2Cb210%2Cb211%2Cb212&cat_b301%2Cb302%2Cb303%2Cb304%2Cb305%2Cb306%2Cb307%2Cb308%2Cb309%
    2Cb310%2Cb311%2Cb312&cat_b401%2Cb402%2Cb403%2Cb404%2Cb405%2Cb406%2Cb407%2Cb408%2Cb409%2Cb410%2Cb411%2Cb412&cat_b5
    01%2Cb502%2Cb503%2Cb504%2Cb505%2Cb506%2Cb507%2Cb508%2Cb509%2Cb510%2Cb511%2Cb512&k_license_number&t_company_name_eng
    %2Ctrade_name_eng&t_company_name_chi%2Ctrade_name_chi&k_b206=Y

                                                                                                                                                         27

   Transport Department, (2012). Land-based Cross Boundary Transport. Retrieved March 18, 2012, from
    http://www.td.gov.hk/en/transport_in_hong_kong/land_based_cross_boundary_transport/index.html

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Final of final final version of marketing

  • 1. SEM 003 Group 4 Yung Che Ho Marco 11065982D Chan Ching Ching Tiffany 11080550D Choi Po Yee Boey 11123861D Tam Chun Ho Jeffrey 11227877D Tam Ling Fei Sharon 11151979D 1
  • 2. Competitor Analysis Opportunities and Threats Objectives Target Market Marketing Mix Strategies and Programs (4Ps) Implementation Milestone Marketing Budget Marketing Control 2
  • 3. RMB 58 to 348 include many famous destinations Most of our competitors try to cut the budget  tour guide salary  “Zero-charge Tour Groups” Set competitive Price ,Product and Service 3
  • 4. Government interest and support in tourism industry  Economic prosperity of Chinese residents  30.2% Increase in Mainland inbound tour registration  The sufficient supply in ecological sources  Cultural diversity of East meets West culture of HK  IT development enhancing promotions through social media (e.g. Weibo and applications for smart phones) 4
  • 5. Enforcement of the minimum wage ordinance  Cross-Border Self-Driving Tour  Imported inflation 5
  • 6. Periwinkle Travel - A flower representing happy memories - Has a strong vitality and lifespan Mission statement “Through our value-added services and with our greatest solicitude, Periwinkle Travel would like to be recognized as an outstanding Hong Kong travel agent providing the best and long-lasting unforgettable experience for our customers.” 6
  • 7. Provide long lasting romantic experience during the trip, as well as unforgettable memories post-trip  Emphasize SERVICES  Attain customer satisfaction in our unique services  To increase the Mainland visitors’ awareness of the company name, products and services  At least 15% customer retention 7
  • 8. Licensed Travel Agency  Well-trained tour guides and tour escorts  Co-operate with China-based travel agents to sell our tours and promote the tours 8
  • 9. • Segmenting 4 Target Vacation Segments by the Hong Kong Tourism Board 1) mid-career families with children, 2) middle-aged couples 3) young office ladies and 4) young office men 9
  • 10. Targeting: - Mainland middle-aged couples - afford to pay for the premium services - well educated - similar cultural background - 34% of the Mainland tourist population traveling with their spouses or partners  Positioning: - Services differentiation 10
  • 11.  1-day educational based tours  Suitable for both same-day visitors and overnight tourists  2 types of tours - cultural and ecological tours  Quota for each tour: 20 tourists 11
  • 12. 12
  • 13. 13
  • 14. Our tour guides would:  provide basic information about the destination  lead games during the transportation time to provide chances for visitors to know each other  Pass the Statement of Proficiency in Putonghua & the Certificate in First Aid Our company would:  provide monthly updated booklets that would describe and suggest some must-seen destinations, shops and must-try food and hotels with detailed transportation information 14
  • 15.  Introduce destination background  games during transition time  Qualification of = Mandarin and = First aid skills  Booklets 15
  • 16. based on the competitors’ market price  premium established according to the value-added services  ecological tour: $400 cultural tour: $420  discounts (10% off) for repeated customers and couples 16
  • 17. Sell tours through the China-based travel agencies in Mainland and give them back 10% commission reduce operation cost - payment can be settled via online payment or by phone resolve the distance problem 17
  • 18. Advertising (Cheap/free channels)  Company website  social media (Weibo, Tudou, forums)  print publications  Applications for smart phones Sales promotion  10 percent discount 18
  • 19. 19
  • 20. 20
  • 21. 21
  • 22. Sales 22
  • 23. Expenses 23
  • 24. •Enable operations on the right track in achieving objectives •Evaluations: Conducted every two months (especially February: Valentines’ Day) •Evaluation questionnaires: improve service quality & increase staff morale •Promotion programs: study the trend of sales •External Environment Changes 24
  • 25. 25
  • 26. References (1)  Absolutechinatours.com Ltd, (2012). Hong Kong Culture. Retrieved March 20, 2012, from http://www.absolutechinatours.com/china-travel/Hong-Kong/Hong-Kong-   Apple Inc., (2012). Retrieved March 20, 2012, from  http://www.apple.com/hk/   Au, K.Y.Y, (2008). An analysis of the potentiality and marketing strategies of nature-based tourism in hong kong. School of Hotel and Tourism Management. The Hong Kong Polytechnic University.   ExpatFlats, (2012). Hong Kong Geography. Retrieved March 20, 2012, from  http://www.expatflats.com/   Inflation.eu, (2012). Inflation China – current Chinese inflation, Retrieved March 20, 2012, from  http://www.inflation.eu/inflation-rates/china/inflation-china.aspx   Lai, K.Y., (2008). Comparison of the travel motivation of mainland chinese tourists to revisit between hong kong and macau. School of Hotel and Tourism Management. The Hong Kong Polytechnic University.   Ho, S.Y., (2006). Marketing Cultural and Heritage Resources for Optimal Cultural Tourism Development: The Case of Hong Kong. The Hong Kong Polytechnic University.   Hong Kong Trade Development Council, (2012). Company Information. Retrieved March 20, 2012, from http://www.hktdc.com/sourcing/hk_company_directory.htm?companyid=1X074ZKJ&locale=zh_TW   Hong Kong Tourism Board, (2011a). Touring. Retrieved March 20, 2012, from http://www.discoverhongkong.com/eng/local- tours/tour-guide.html   Hong Kong Tourism Board, (2011b). Vacation overnight visitors. Retrieved March 20, 2012, from  http://partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=137529&cat_id=6281&logs=yes&type=FREE   Hong Kong Tourism Board, (2012a). Market Summary December 2011 – Mainland China. Retrieved March 20, 2012, from http://partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?charset=en&doc_id=141669    Hong Kong Tourism Board, (2012b). Nature Tours. Retrieved March 20, 2012, from http://www.discoverhongkong.com/eng/local-tours/outdoor.html 26 
  • 27. References (2) Hong Kong Tourism Commission, (2011). Visitor Information. Retrieved March 20, 2012, from  http://www.tourism.gov.hk/english/visitors/visitors_ind.html   Next Media Interactive Limited, (2011). A number of large travel agencies, tactics coping with the minimum wage, predicting a half number of tour escorts would be forced to become part time labor. Retrieved March 20, 2012, from  http://public.kayman.hk/appledaily/20110419.html#15180884   Immigration Department, (2011). Annual Report 2009-2010. Retrieved March 18, 2012, from  http://www.immd.gov.hk/a_report_09-10/eng/ch1/index.htm#b4_8   Kotler, P., Bowen, J. & Makens, J., (2010). Marketing for Hospitaliy and Tourism (5th ed), Upper Saddled River, NJ: Pearson Prentice Hall   Makepolo.com, (2012). Beijing to Hong Kong One day tour. Retrieved March 20, 2012, from http://china.makepolo.com/product- detail/100149561984.html   Maslow, A.H., (1943). A Theory of Human Motivation. Psychological Review, 50, 370-396.   McKercher B, (2009). Non-travel by Hong Kong Residents. International Journal of Tourism Research. 11(6): 507 – 519.   National Bureau of Statistics of China, (2011). China Statistical Database, Retrieved March 20, 2012, from  http://www.stats.gov.cn/tjsj/jidusj/   Reisinger, Y. & Turner, L., (1998). Cross-Cultural Differences in Tourism: A Strategy for Tourism Marketers, Journal of Travel & Tourism Marketing, 7:4, 79-106   State Administration of Foreign Exchange, (2011). Data and Statistics, Retrieved March 20, 2012, from  http://www.safe.gov.cn/model_safe/tjsj/rmb_list.jsp?id=5&ID=110200000000000000   Sunshine Holiday Travel Ltd, (2012). domestic tour. Retrieved March 20, 2012, from  http://www.shtravel.com.hk/index.php?option=com_content&task=view&id=20   Travel Industry Council of Hong Kong, (2011a). The Voice of TIC. An analysis of cases involving mainland tours, 2011(4), 3-7.   Travel Industry Council of Hong Kong, (2011b). The Voice of TIC. Industry statistics at a quick glance, 2011(4), 16.   Travel Industry Council of Hong Kong, (2012). Find a Travel Agent. Retrieved March 20, 2012, from http://www.tichk.org/public/website/en/agents/search.html?k_class=org.tichk.Agent"ing=company_name_eng%2Ctrade_name_eng&cat_b101%2Cb102 %2Cb103%2Cb104%2Cb105%2Cb106%2Cb107%2Cb108%2Cb109%2Cb110%2Cb111%2Cb112&cat_b201%2Cb202%2Cb203%2Cb204%2Cb205%2Cb 206%2Cb207%2Cb208%2Cb209%2Cb210%2Cb211%2Cb212&cat_b301%2Cb302%2Cb303%2Cb304%2Cb305%2Cb306%2Cb307%2Cb308%2Cb309% 2Cb310%2Cb311%2Cb312&cat_b401%2Cb402%2Cb403%2Cb404%2Cb405%2Cb406%2Cb407%2Cb408%2Cb409%2Cb410%2Cb411%2Cb412&cat_b5 01%2Cb502%2Cb503%2Cb504%2Cb505%2Cb506%2Cb507%2Cb508%2Cb509%2Cb510%2Cb511%2Cb512&k_license_number&t_company_name_eng %2Ctrade_name_eng&t_company_name_chi%2Ctrade_name_chi&k_b206=Y 27   Transport Department, (2012). Land-based Cross Boundary Transport. Retrieved March 18, 2012, from http://www.td.gov.hk/en/transport_in_hong_kong/land_based_cross_boundary_transport/index.html