Final Paper Group 2[1] 8 5

Global Marketing Plan Mall of America Final Paper By: Group #2 B2B Ashley Hamilton Kayla Zart Babalola (Bobby) Coker Sebastian Klodda Brandon Vlasak Global Marketing 416 Date: August 5th 2010 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* 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 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 2.1 More 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 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 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 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, 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 quot;
Sanctuary Citiesquot;
with quot;
don't ask, don't tellquot;
(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 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 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 quot;
Love and Friendship Day,quot;
(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 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), quot;
Ninety percent of the population there has people over here. Kids come here as soon as they come of age.quot;
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. 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 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 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. 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. 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.orgHYPERLINK quot;
http://marketplace.publicradio.org/display/web/2010/06/21/am-mexican-shoppers-steering-clear-of-arizona-malls/quot;
). 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. 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. Chart 1.1 Persons of Hispanic or Latino originState %USA %Utah12.0%15.4%Arizona30%15.4%Minnesota4.1%15.4%Quebec0.91%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) 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) 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 visit UtahQuebecMall 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, quot;
My plan is to go to Utah because I see a lot of problems here.quot;
Another illegal alien said, quot;
It is very quiet there [Utah]. There is less chance they are going to come and deport me.quot;
(Center for Immigration Studies)First coast news covered this particular controversy, they interviewed several other illegal aliens 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 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 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 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: ,[object Object]

BonusesIn 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 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 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. ,[object Object]

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. Appendix: 3.3 Appendix to 4.2 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 movementExternal Threats (T)1. Competition / Smaller stores2. Outlet malls3. Other large indoor malls (like in West Edmonton in Canada and Dubai Mall)4. Online ShoppingInternal 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 movementIndoor shopping & Outlet mallsSecurity & competitionLuxury brands & Online Shopping (real/fake?)Accessibility & similar competitorsInternal Weaknesses (W)1. International diversity2. Language barrier3. Security (teens)4. TheftLanguage barrier & Social MediaInternational diversity & Cell phone (marketing), MOA on face bookInternational diversity & Other large indoor malls (both may have little or no diversity) 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 MiferDirección: 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.V Paseo 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 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 References Bob McKercher. Journal of Travel & Tourism of Marketing. 2008, Vol. 25 Issue ¾, p.8, 15 Bojanic, David C. (2007). The impact of age and family life experiences on Mexican visitor shopping expenditures. Tourism Management, 41(11/12), 1-9. doi:10.1016/j.tourman.2010.03.012 Cai, L., Lehto, X., & O’Leary, J. (2001). Profiling the US-bound Chinese travelers by purpose of trip. Journal of Hospitality and Leisure Marketing, 7(4), 3e17. Canada Tourist Commission “Source: Oxford Economics May, 2010” http://en-corHYPERLINK quot;
http://en-corporate.canada.travel/quot;
pHYPERLINK quot;
http://en-corporate.canada.travel/quot;
orate.canada.travel quot;
Cheap Flights from Mexico City to New York, from $533 Round Trip from MEX to NYC.quot;
FareCompare - Cheap Flights, Travel Deals, Cheap Tickets, Airline Tickets and Discount Airfares. Web. 19 Jul. 2010. <http://www.farecompare.com/flights/Mexico_City-MEX/New_York-NYC/market.html>. CheapOair Travel Blog, Travel Tips, Photos, Videos & Guides | CheapOair. Web. 18 Jul. 2010. <http://blog.cheapoair.com/>. CIA - The World Factbook.quot;
Welcome to the CIA Web Site — Central Intelligence Agency. Web. 17 July 2010. <https://www.cia.gov/library/publications/the-world-factbook/>. City of Saint Paul (Mayor’s Office). (2010). Mayor Colman Orders Boycott of Publicly Funded Travel to State of Arizona http://www.stpaul.gov/index.aspx?NID=3895 Saint Paul, MN: Mayor’s Office. Delta Air Lines - Airline Tickets and Airfare to Worldwide Destinations. Web. 19 Jul. 2010. <http://www.delta.com>. Department of Employment and Economic Development. (2010). Exports Bounce Back: Increase of 17% in the First Quarter. http://www.positivelyminnesota.com/Data_Publications/Data/Export_Statistics/2010_Stats/First_Quarter_2010.pdf Saint Paul, MN: Dept. of Employment and Economic Development. Explore Minnesota. April 1, 2008. http://www.exploreminnesota.com/ Home. Web. 20 Jul. 2010. <http://en-corporate.canada.travel/>. Home. Web. 20 Jul. 2010. <http://mx.canada.travel/>. “Mexicans in the Midwest, 1900–1932 - Minnesota, Latino, Latinas, Latinos, Mexican, Latina, Population, and Americans” http://www.jrHYPERLINK quot;
http://www.jrank.org/cultures/pages/4198/Minnesota.htmlquot;
aHYPERLINK quot;
nHYPERLINK quot;
k.org/cultures/pages/4198/Minnesota.html Minnesota Culture and Heritage. Local Heritage Affects its Culture. 2006. Pomeroyformn.org. http://www.pomeroyformn.org/culture.htm Minnesota Languages. 2010. http://www.city-data.com/states/Minnesota-Languages.html Nielson Wise-2010 The Nielsen Company http://blog.nielsen.com/nielsenwire/global/latin-american-women-increase-purchasing-power/ Planetware. Minnesota Tourists Attractions. 2010. http://www.planetware.com/tourist-attractions/minnesota-usmn.htm Sanctuary Cities Information 2007-2010 http://www.sanctuarycities.info/sanctuary_state_minnesota.htm State of Minnesota. (2009.) GOVERNOR PAWLENTY ANNOUNCES BUSINESS DEVELOPMENT TRIP TO MEXICO. http://www.governor.state.mn.us/mediacenter/pressreleases/2009/PROD009709.html?BV_SessionID=@@@@1878764479.1280525439@@@@HYPERLINK quot;
http://www.governor.state.mn.us/mediacenter/pressreleases/2009/PROD009709.html?BV_SessionID=@@@@1878764479.1280525439@@@@&BV_EngineID=cccgadeldidgmmdcfjkcenndfifdgon.0quot;
&HYPERLINK quot;
http://www.governor.state.mn.us/mediacenter/pressreleases/2009/PROD009709.html?BV_SessionID=@@@@1878764479.1280525439@@@@&BV_EngineID=cccgadeldidgmmdcfjkcenndfifdgon.0quot;
BV_EngineID=cccgadeldidgmmdcfjkcenndfifdgon.0 Saint Paul, MN: Governor’s Office. Political Punch. Web. 25 Jul. 2010. <http://blogs.abcnews.com>. Randy Mink. Minnesota’s Mall of America: The Nation’s Premier Shopping Mall celebrates its 10th Year in Bloomington, Minnesota. Travel America. Art Publications. Dec. 2002. http://findarticles.com/p/articles/mi_m0FCQ/is_3_18/ai_94223381/ Roberts, Bryan R., and Robert Hines. Wilson. Urban Segregation and Governance in the Americas. New York: Palgrave Macmillan, 2009. Print. The Minneapolis Foundation. Immigration in Minnesota: Discovering Common Ground. 2008. http://www.minneapolisfoundation.org/immigration/latino.htm The New York Times USA By EDUARDO PORTER and ELISABETH MALKIN Published: September 30, 2005 http://wwwHYPERLINK quot;
http://www.nytimes.com/2005/09/30/business/30immigrants.htmlquot;
.HYPERLINK quot;
http://www.nytimes.com/2005/09/30/business/30immigrants.htmlquot;
nytimes.com/2005/09/30/business/30immigrants.html “The United States Embassy Consular Services Canada.” New Passport Requirements. Entering the USA from Canada. May 8, 2009. http://www.consular.canada.usembassy.gov/passport_requirement.asp Tyler, Jeff. 21-June-2010. Mexican shoppers steering clear of Arizona malls. Retrieved from: http://marketplace.publicradio.org/display/web/2010/06/21/am-mexican-shoppers-steering-clear-of-arizona-malls/ U.S Department of Commerce. (2009). Mexico: Travel Trends to the United States. www.export.gov Washington, DC: U.S Commercial Service. Utah Office of Tourism. Web. 19 Jul. 2010. <http://travel.utah.gov/>. Welcome to Canada. Web. 22 Jul. 2010. <http://uscw.canada.travel/>. Email References: -Barbara Mattson from the Department of Employment and Economic Development date July, 30th 2010

Final Paper Group 2[1] 8 5

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (20)

Similar to Final Paper Group 2[1] 8 5

Similar to Final Paper Group 2[1] 8 5 (15)

Final Paper Group 2[1] 8 5