1. MARKETING PLAN
ROMANTIC COAST VILLAGE TOUR
Marketing plan for: Tour 112-05
Submitted to: Susan Halsall
Submitted by: Seyoung Kang (100100564)
Soo Choe (100110222)
Jimin Han (100108501)
April 11, 2016
3. 2
5.1.2 Product Decisions .................................................................................................19
5.1.3 Delivery Decisions.................................................................................................21
5.2 Price Strategy..............................................................................................................21
5.2.1 Cost......................................................................................................................21
5.2.2 Competitive Pricing...............................................................................................24
5.2.3 Channel Pricing.....................................................................................................25
5.2.4 Consumer-level Pricing..........................................................................................25
5.2.5 Methods and Terms of Payment............................................................................25
5.2.6 Promotional Pricing...............................................................................................25
5.3 Promotion Strategy .....................................................................................................25
5.3.1Groundwork..........................................................................................................25
5.3.2 Digital Media Action Plan.......................................................................................27
5.3.3 Advertising Action Plan..........................................................................................27
5.3.4 PR and publicity action plan...................................................................................28
5.3.5 Sales Promotion Action Plan- Consumer and Trade.................................................28
5.3.6 Personal Selling.....................................................................................................29
5.4 Place Strategy .............................................................................................................29
5.4.1Access...................................................................................................................29
5.4.2 Resellers/Intermediaries........................................................................................30
5.4.3Partnerships..........................................................................................................30
5.4.4 Title transfer.........................................................................................................30
Conclusion ..........................................................................................................................31
References ..........................................................................................................................32
Table of figures
Figure 1. Attitude Towards holiday for Koreans....................................................................8
Figure 2 Overview of Korea.................................................................................................13
Figure 3 Convert Korean won to Canadian dollar ................................................................13
Figure 4 Romantic Coast Village Tour Brand Pentagon........................................................19
Figure 5 The process of contact...........................................................................................20
4. 3
Executive Summary
Three G is found in British Columbia, Canada in 2016 to provide luxury tour with upscale
accommodations, soft adventure, gourmet food and high quality service to affluent
customers. Our goal is to become a renowned travel company, providing high-end
services in Vancouver. Our grand product, “Romantic Coast Village tour” includes
various soft adventures: yachting, fishing, hiking, golfing, cooking, and sightseeing.
The three women founders are Seyoung Kang, Jimin Han, and Soo Choe and
passionate about the tour.
The Romantic Coast Village tour exists for reasons:
Geotourism is growing rapidly with travel to natural scenery to grow the
global tourism industry
There are few providers of luxury travel for Korean in Vancouver.
Asia is one of the largest market with a large growth as incomes rise and
consumers are able to travel more.
According to Destination British Columbia, our target market, South Korea
was British Columbia's (BC) seventh largest international market.
Virtually many Korean tour companies in Vancouver provide tour packages to
appeal to mid-class people; however, we will focus on upper-class people or above
and with higher income.
In order to operate successfully Three G will focus keys following:
Effective segmentation and targeting within the larger travel market.
Successfully positing as luxury travel specialists.
Communicate the differentiation and quality of our offering through personal
interaction, media, and regional marketing.
There is rapid growth in the market and increasing demand. Hence Three G's target market
is an exploitable niche and our service is differentiated. Three G's target market members
will have similar activity interests, more disposable income and less sensitivity to price.
We will provide a luxury service with prestige value. We are competitively priced in the
luxury market. Since we appeal to luxury, volume willbe limited. However, wewill be able
to capture a high profit.
To become a professional and respectable luxury tour company,we try to do promote in
many ways such as advertising through brochure, magazine and social media, PR, sales
promotion and personal selling with travel agencies. Furthermore, wewill promote our
5. 4
brand value and brand awareness more with Korean travel agencies and other
intermediaries.
1 Company Description
Company Description
Three G is a tour company, founded in 2016 by three prominent CEO women. It was
started by only three people in Vancouver at the first step, and now we have
accomplished to have over twelve wonderful employees. Three G tour is trying our
best to provide a differentiated service and promote the best quality of one on one
customer service. Tourists can feel as if not only escaping from their busy life, they
can enjoy our best service through our differentiated tour products.
Location
Address: 815 W Hastings St #250
Vancouver, BC V6C 1B4
Phone:+1(604) 688-7942
E-mail: threegtourca@gmail.com
Web site: www.threegtour.ca
Product
The true heart of romantic and fascinating coast tour in British Columbia, Canada.
Our tour has three main target markets: Korean honeymooners, Korean empty nesters and
Koreans who are visiting their friends or relatives in Vancouver.
Our tour provides relaxation and sightseeing with luxurious service in marvelous
seaside towns in BC.
2 Strategic Focus
2.1 Mission/Vision Goals
Our mission is to create exciting and unforgettable travel experiences, and provide
superior customer services beyond expectations.
6. 5
Goals: We will aim to become a renowned travel company, providing high-end
services in Vancouver.
2.2 Core Competency and sustainable Competitive
Advantage
All staff can drive, and guide with proficiency of Korean. Our advantages are the
beautiful, natural scenery, clean air, an advanced society, high-end services, and
differentiated accommodations such as Free Spirit Spheres.
3 Situation Analysis
3.1 Industry Overview
Geotourism is defined as tourism that deals with natural environment. Our closest
Standard Industrial Code (SIC) is determined as 078102.
Geotourism is growing rapidly with travel to natural scenery to grow the global
tourism industry. It helps people to understand nature through appreciation and
learning. Factors that affect growth of geotourism is nature itself. Developed
attractions can be used as a tool for the development of local and regional
communities (Ross K, 2010).
There are some government regulations we need to be aware of (Government BC
2015-2017):
Our tour only allows people who are over in age of 19 years old due to the
alcohol we will have.
Customers as non-resident aliens need to get One Day Angling License costs
$20 in order to fish.
3.2 4 Cs
3.2.1 Company
7. 6
Head Office 815 W Hastings St #250, Vancouver, BC V6C 1B4
Phone +1(604) 688-7942
Financial year end February
Employees 12
Three G is involved in the operation of high-end tour for Korean inbound tourists,
Korean honeymooners, Korean empty nesters and Koreans who are visiting their friends or
relatives in Vancouver; with the differentiated services. The tour is mainly for the
Korean tourists intending on sightseeing. We are a relatively new company in the
market. We will focus on pleasuring travelers, who are affluent and educated with
long haul travel experiences. Then we will be expanding into the regional market as
time progresses. Therefore, the initial aim will be building awareness and
confidence in our services; strategies following:
1. Provide unparalleled service to the tourists in order to build trust which will
include superior service.
2. Our strategy is to grow the business by nurturing clients, differentiating the
service from our competitors, particularly through accommodation, service
and staff behavior. In order to meet customer expectations, training will be
conducted on a regular basis.
3. We will focus on differentiation as a specialty provider of city/ adventure
travel.
4. All criteria from customer satisfaction, service provision, price
competitiveness to staff attitudes are to be looked at thoroughly in the initial
stages.
3.2.2 Competitor
Even if our concept is high-end tour company focusing on Korean tourists who are
willing to pay their discretionary money for travel, we cannot ignore the other tour
companies which have cheaper products for the tourists. Due to the fact that there
are numbers of tourism companies for Koreans in BC, we should examine our main
competitors to be more remarkable and distinguishable, giving a general overview.
Therefore, we focused on the competitors in the same target market and regions like
companies which are engaged in operation of tour for Koreans in Canada.
Furthermore, we also considered for the other high-end tour in Canada. As long as
8. 7
we are operating high-priced product, more luxurious packages generally provide a
"soft" adventure such as fishing and sightseeing. The activities are more along the
lines of sightseeing and low-risk alternatives, so we may consider for competitors
who are engaged in soft adventures in BC especially for fishing. The main events of
our tour is staying in a fishing lodge. Other company which have extensive
knowledge of the industry, and key personnel and management can attract tourists
using their reputation. Some have been in operation for more than twenty years.
They are familiar with local service providers and have established strategic
relationships. Examples of major competitors are following:
Examples of major competitors
Company name location Theme Price
Hana
tour(Tour
click)
4501 North Rd #103,
Burnaby, BC V3N 4R7
Tour company for
Koreans
Low ~
middle
Ok tour 9920 Lougheed Hwy,
Burnaby, BC V3J 1N3
Tour company for
Koreans
Low ~
middle
Queen
Charlotte
Lodge
3600 Lysander Ln #180 Accommodation with
soft adventure
High
Westcoast
resort
4980 Cowley Cres Accommodation with
soft adventure
High
3.2.3 Customer
Target market:
Korean tourists especially, honeymoon traveler and Leisure travelers.
Market needs and buyer behavior:
Our package is planned for couples, high class or above who expect to spend their
time to enjoy sightseeing, fishing, and relaxing in romantic places. They are
tempting to escape their busy daily life and being pampered in each of the unique
places in BC. It must be a good deal for spending time with our tour for several
reasons for why we are offering the romantic and exotic places, high quality
services, accommodations, foods, and unforgettable memories. Besides, couple
tourists who just married or empty nesters, love taking pictures and what more
than having a beautiful scenic background of beaches, trees, and water for their
memories. Above of all, for the honeymoon, they need more free time than others
9. 8
and romantic mood therefore, our tour is design in having travel freely and give
them the beautiful background. Our tour is also for high class people, even in
transportation, they can see the beautiful scene during the moving.
Market Trends:
It is common for over half of Korean tourists to enjoy their holiday by traveling.
Looking at this graph down below, most tourists prefer going to places where they
can see natural beauty. Our tour product is designed on visiting the beautiful spots
which can see and feel magnificent natural scene and engaged in summer season. As
many tourists know, summer time in BC is the most beautiful season.
In Korea, 85% of honeymoon couples go overseas and spend a lot of money for their
unforgettable memories therefore, they will be willing to pay for expensive and
amazing trip compared to other groups. If they are looking for the places that have
unique and beautiful natural scene, high quality accommodations, and food, our tour
must satisfy them for giving them treasurable memories.
Figure 1. Attitude Towards holiday for Koreans
(Source:e Nation Brands Index, 2009)
3.2.4 Channel (Suppliers & Intermediaries)
Our customers will only be able to access our product through Korean agencies in
South Korea, our own website and somehow social media.
10. 9
As our product is a high-end tour and our targets are Korean tourists, five-star
hotels, fine-dining restaurants, transportations, agencies in Korea and social media
will mostly be our intermediaries and suppliers.
Supplies,
intermediaries
Functions Cost
s
Services to
customers
Services
to us
Hotels - Provide rooms
with experience
- Breakfast,
lunch, dinner
High - Room
Service
- Personal
hoteliers for
only our
customers
-
Frequen
t use
discount
Restaurants - Provide high
end food
High - Wine
sampling
- Group
Discoun
t
Transportatio
n
(water taxi,
ferry,
seaplane, van,
limo)
- Provide F&B,
Accommodation
s, and Facilities
(toilets, souvenir
shops)
- Take
customers to
other places
- Provide
experiences
Mid-
high
- Special
events
- fly in the air
- float on sea
- guiding
-
Frequen
t use
discount
Agency in
Korea
- Inform our
tour
- Help booking
our tour
Mid -Small
Discount
- Souvenirs
Recommendin
g
None
Social medias - Advertise the
tour
Low None None
11. 10
- Announce our
customers
Because we are handling lots of customers at the same time and place, all the
materials we need should be checked and ready in advance.
3.3 TREES-Situation & Trends
3.3.1 Technology
Nowadays, people live and rely on technology which means technology affects
everywhere. There is a strong impact of internet in tourism industry; now people
can book their flight tickets, and plan the trips by searching online websites or on
social medias such as Facebook, Twitters, and Instagram. Therefore, tourism
markets are trying to be more accessible, more inclusive, more creative, and more
ambitious.
Smartphones are one of the biggest and easiest way to access internet. According to
Sergiu Rus, “Smartphones can take real advantage with Quick Response (QR) codes
or mobile tagging. Just as the Internet completely revolutionized the way consumers
book travel, now the immense, growing reliance on mobile devices is causing a
second shift in how travel is purchased. Today, rarely anyone leaves their home
without their mobile phone, and twice as many people are using SMS globally
compared to email. It is imperative for hotels to tap into this growing market. We
must emphasize the growing importance of the Android operating system for
mobile phones.”
As a result, it can also affect our organization and our marketing plan. For example,
we might have to decrease the costs of our products because of lack of customers,
and we might have to find different ways to connect with customers because it is not
easy to find and access our product on social medias.
Hence, we should embrace newly developed and effective information technology
solutions to run travel operations smoothly and efficiently. At the same time, the
focus should be on providing excellent customer service. For all these, the only
answer is to embrace best and updated information technology.
12. 11
3.3.2 Regulations & Legal
There are some federal andprovinciallawstogovernourtour.Because of the fact that ourtour
containsactivity:wine sampling,we are responsible forbeingaware of liquorlaws.
Liquor laws
The legal age of drinking alcohol is 19 years old in BC. And people in or over 19
years old must have their two pieces of ID. One has to be an official government
issued ID (including official foreign government-issued IDs) with your name, picture
and birth date, such as a driver’s license or passport. And the other one has to
include their name and your signature or picture, such as a credit card (BC
Government website 2015)
Licensing
Because we will have vans, commercial driver’s license is required to drive a bus for
the bus driver. (ICBC website 2015)
Environmental laws
Everyone in our tour is also responsible for protecting the nature. Ontario’s
environment web site says “Provincial environmental laws are based on provincial
constitutional powers, such as over municipalities, local works and undertakings,
property and civil rights, provincially owned (public) lands and natural resources.
In inland areas, most environmental laws that affect private activity are provincial.”
Each province has its own environmental statutes.
Business licenses
In order to start our business as partnership, there are three ways to register: go
online, in person, and by mail. (Small business BC 2016) But before we register, we
must have our business license which requires a copy of the business owner's
current, government-issued photo ID with your business license application. And
type of our business is “Commercial and industrial business: A business based
within a building located in a commercial or industrial area of the City of Vancouver
as defined in the Zoning and Development Bylaw”(City Of Vancouver 2014)
Taxations rates and incentives
BC in 2016 taxation rates are on a cumulative basis. According to BC Government
website, “if your taxable income is more than $38,210, the first $38,210 of taxable
income is taxed at 5.06%, the next $38,211 of taxable income is taxed at 7.70%, the
next $11,320 is taxed at 10.5%, the next $18,802 of taxable income is taxed at
12.29% and any taxable income over $106,543 is taxed at 14.70%.”
13. 12
Safety laws
We need to be aware of Safety laws in BC due to running our business. As all
employees and we deserve to be taken care of, there are some benefits that can help
us: Health care benefits, Permanent disability and death benefits.
For instance, when our employees get injured, we are responsible for report it and
take him or her to the doctor (Health care benefits), and according to WorksafeBC, if
there is evidence that a work-related injury or disease has permanently disabled
you, and WorkSafeBC determines that the combination of your occupation and
disability is so exceptional that the functional award does not appropriately
compensate you, then a loss of earnings award may be paid.(Permanent disability
and death benefits) . (WorksafeBC, 2016)
Labour standards
As we are the owners of our organization, we ensure that we are following
employment standards act. The purpose of this act is to ensure we treat our
employees and employers equally and we give at least basic standards of
compensation and conditions of employment.
In our organization, we are going to provide at least more than minimum salaries,
vacation pay, meal break, fair treatment such as promoting and termination.
For restaurants to serve alcohol, we need to have Serving It Right certification, and
for the bus rental company, we need to have car insurance and lastly for us to run
our tour safely, we should ensure that our customers must have travel insurance for
visitors to Canada.
3.3.3 Economy
According to Destination British Columbia, our target market, South Korea was
British Columbia's (BC) seventh largest international market in terms of direct
custom entries in 2013 (2014). The following table gives an overview of the market.
14. 13
Figure 2 Overview of Korea
Estimated outbound trips from South Korea
(2012) 14.9million
Direct customs entries to BC (2013) 80,971
BC’s share of Canada’s South Korean custom entries (2013) 56%
South Korea as a share of BC’s total international custom entries (2013) 2%
GDP per capita (2015) 33,395
GDP growth (2015) 3.6%
Inflation rate (January, 2016) 0.8%
Interest rate(February, 2016) 1.5%
Unemployment rate (January, 2016) 3.5%
(Sources: Destination British Columbia, OECD, Trading economics)
The graph below shows value of South Korea won in Canadian dollars has
consistently maintained up to 0.0010 Canadian Dollar since 2014. As a result, a
weak Canadian dollar is more likely to attract Korean tourists to Canada.
Figure 3 Convert Korean won to Canadian dollar
(Source: Foreignexchangerate. org, 2016)
15. 14
3.3.4 Environmental/Natural
As the tour provides transportation, accommodation, and restaurant, in terms of
raw materials, most of the things required by them could be supported from the city
which is near from the location. Nature walks, and sustainable fishing are available
for recreation. The tour focus on geographic scenery, so the visiting tourists should
not face pollution. As the tour offers fishing, weather and season will affect the
operation.
3.3.5 Social/Cultural
The following facts (Canadian tourism commission, 2014) could be decisive for the
choice of our product:
South Korean long-haul travelers, and those most interested in visiting
Canada, are predominantly older with higher disposable incomes.
The older, more experienced tourists recognize Canada is a destination that
offers outstanding natural beauty.
Korean travelers are not very knowledgeable about Canadian destinations or
attractions.
Among travelers interested in visiting Canada, the natural scenery was the
dominant aspect of their trip as 54%.
Only around a third of Korean travelers who have visited Canada, would
recommend it to their friends, family or colleagues.
They were almost as likely to have heard about Canada through a TV
program or show (28%), while films set in specific countries were one of the
top-three most influential sources, along with TV programs and friends and
family.
The social group that matches with our target market group is upper-class people or
above and with higher income who are craving unique adventures in rustic luxury
or honeymoon travelers.
3.4 SWOT Analysis
Strengths Weakness
- Scarcity of concept in Korean market
- Employees with combination skills
- Private and one on one services
-Instability
-Small market
-Lack of public relation
16. 15
Opportunities Threats
- Development of tourism industry
- Trends of high end tour
- Increasing of Korean tourists
-Other competitors
-Economic recession
-Seasonality
3.4.1 Strengths
Scarcity: There are a few companies to deal with high-end tour for Koreans,
therefore this will be good promotion to attract Korean inbound tourists.
Employees with multitasking skill: The employees have well-qualified
service skills and experience to jointly develop business strategy and long-
term plans, so as to attain company objectives.
Private one on one service: Our company always try to develop the
customer service to make tourists who use our product satisfied.
3.4.2 Weaknesses
Instability: This is due to the fact that we are still new on the market.
However this shall be addressed as shown in the marketing section of this
plan.
Small market: It is true that there are limits of our product because we are
focused on only for Korean tourists. However, that is why we can account for
Korean market easier.
Lack of public relation: We are relatively brand new company, so it is true
that people do not know well about us. However this weakness will be better
when the times go by.
3.4.3 Opportunities
Development of tourism industry: The present growth in the tourism
sector will result in an increasing number of firms entering the market. ·
Trends of high end tour: The one of the increasing tour trends is high end
tour and above of all, Asians are accounted for parts of most consumers.
Increasing of Korean tourists: Asia remains the powerful market for world
tourism growth this year with strong growth as incomes rise and consumers
are able to travel more.
17. 16
3.4.4 Threats
Other competitors: The present growth in the tourism sector may result in
an increasing number of firms entering the market. This may led to increased
competition emerging from a variety of given·
Economic recession: It is true that there is recession in many countries, and
will affect the travel industry.
Seasonality: The weather in BC shows the significant changes of climate.
Especially, in BC, summer is peak season and winter is relatively lower
tourists’ popularity.
4 Market- Product Focus
4.1 Marketing and Product Objectives
We planned our 5 day tour focusing on what wonderful experiences we can give our
customers as much as possible.
Itinerary
Day Location Content Transportation
Day
1
Waterfront
station
Horseshoe
Bay
Nanaimo
- Pick up in the morning
- Depart to Nanaimo
- Have free time at Free Spirit
Spheres (overnight)
- BBQ party
Van
Ferry
Day
2
Nanaimo - Free time
- Yacht tour around New
Castle Island
- Stay at the Marinaside Resort
Van
Yacht
Day
3
Nanaimo
Sonora
- Depart to Sonora Resort
- Spa
Water Taxi
Day
4
Sonora - Optional Activities (Salmon
Fishing, Golfing, Cooking class)
- Ponding Fishing
Van
18. 17
Day
5
Sonora
Vancouver
- Depart to Vancouver Sea plane
4.2 Target Markets
4.2.1 Consumer analysis
During the process of researching target markets for our marketing plan, we mainly
focus on three groups- Korean honeymoon travelers, Korean baby boomers, and
Korean travelers primarily visiting relatives and friends in Canada. Besides our
package is designed for couples, high class or above who afford to spend their time
and money to enjoy sightseeing, soft adventures, and relaxing in romantic places.
According to Destination BC (2014), Korea was British Columbia’s (BC) seventh
largest international market welcoming over 145,000 Korean tourists. Among the
age groups, the group of 20 to 34 ages is the largest number and the group of 45 to
64 is increasing every year and they tend to stay over 20 nights in BC. Travel
agencies play a crucial role in the Korean market, because three-quarter travellers
are usually consulting agents about long-haul trips and also many of them make a
book through a travel agent. However, Korean travel distribution system is getting
complex and constantly changing using a combination of traditional and online
channels to plan and book their travel. (Destination BC, 2014).
Honeymooners (primary market):
Honeymooners spend more money as approximately $4,000, which is 3 times
higher than average cost of leisure travelers (OTA Research, 2013). 72% of engaged
women say “they are less concerned with price and more focus on what they want”
(OTA Research, 2013). Honeymooners are morewilling to escape from their ground
routine with high self-esteem. Over 300,000 Koreans went abroad for their
honeymoon; the figure is increasing every year (Honeymoon resort research:
Understanding Honeymoon Market in Korea, 2011)
Baby Boomers:
Luxury travel is a growing trend of tourism industry in Korea, especially for baby
boomers. They have discretionary time and money to travel relatively and love to
travel in beautiful place for remembering. Not only do they recognize Canada is a
19. 18
destination offering majestic sceneries, also wish to keep peaceful year without
many stressful life events. (Korean baby boomers in transition, 2011)
Korean travellers visiting relatives or friends:
There are many international students or permanent residents in Canada.(Economic
Impact of International Education in Canada, 2012) Since then, it is increasing that
person who is visiting to their family, friends or lovers. They want to experience
special activities and share their friends or family.
4.3 Points of Differences
There are many characteristics that set the Romantic Coast Village Tour by the
Three G apart from our competitors:
We provide not just a tour but also the most romantic and luxury experience
in the world
To meet our customer’s satisfaction, we offer variety of activities.
We do not take strangers into our tour in order to keep our product as
comfortable and safe as possible.
Even though It is a luxury tour, we offer extremely reasonable price.
We also provide unique and luxurious transportation such as water taxi, sea
plane and limo which will give our customers unforgettable memories
4.4 Positioning
It is the desire for Romantic Coast Village Tour by the Three G to be known in
customer’s minds as a sole product that provides a unique luxury tour for Korean in
Western Canada. The high level of perceived benefit is associated with the high
quality meals, luxury resorts and various transportation with professional guides.
5 Marketing Program (4 Ps)
5.1 Product Strategy
20. 19
5.1.1 Positioning and Branding
From the point of view of the customer, Romantic Coast Village Tour is
differentiated based on unique features as a brand. This includes the fact that our
tour only manages a small group in order to focus on not only better service but also
safety, and camaraderie to our customers and our tour transportations: limo,
seaplane, water taxi are very different from other tour’s transportations such as
shuttle buses or vans. Therefore, our customers can even more enjoy when they are
moving place to place. And our tour is differentiated by tour itself because even
though it is a luxury tour which people probably think it must be expensive, we have
taken out any frills to provide reasonable price.
Figure 4 Romantic Coast Village Tour Brand Pentagon
5.1.2 Product Decisions
There are some unique features to meet customer satisfaction and expectation of
our product. First of all, we try hard to provide the most perfect service to our
customers. We will provide 24- hour on call service for any emergency contact, fully
well trained guides/ local guides. Secondly, customer will only experience high
quality products for example, they will only visit fine dining restaurants, take unique
and comfortable transportation, and stay at upscale or unique accommodation
during our tour. This will give the customer beautiful memory and experience.
21. 20
We will make the last day of our tour even more special to fully meet and maximize
customer satisfaction. We will spend all of our time on filming our customers during
tour and make videos to show and give them memorable last day and this memory
will stay long in their mind.
Our product needs to be more eco-friendly and sustainable in order to keep up with
today’s trends, to concern about environmental issues, and also to attract tourists
who concern about sustainability or environment. We will try to make our company
sustainable first by reducing use of hydro, garbage, and use of disposable products
and so on. Then we will make our product be sustainable by educating our
customers about sustainability and showing and telling them how we do. We are
also in need of making new product due to seasonality of our current product. We
will work on creating winter tours in different level.
We will be wearing our company uniform with our name tags on our chests where
the customer can see easily.
Points of contact
Figure 5 The process of contact
Before we go on our tour, to help our customers to organize, we will give them the
brief itinerary of the tour with some pictures of how the tour will look like and
welcoming handwriting letters which will give them more self-actualization.
During the tour, there is going to be some activities that the customers can learn
from local experts such as cooking lesson, fishing, and history or information of
some attractions. This part of the tour will give the customers more meaningful
contact with locals. And there is going to be a little surprise at the time when our
customers about to get bored and tired from taking long transit in order encourage
them to enjoy more.
Initial Point of
Contact
Registration
Online/Personal
Pre tour package
Meet at
Waterfront
Commence
Adventure
Post tour
Souvenirs
22. 21
On the last night of the tour, we will show the customers a film of themselves on the
tour to touch their emotional feeling and give them great memories of the trip.
Pictures and videos of the customers will be provided individually.
Finally, on the last day, we will give some special souvenir which is ocean scent
candles. This is our tour themed candles so this will last long in our customer’s
mind. After acquiring permission from customers, we will post the pictures and
videos on social medias.
5.1.3 Delivery Decisions
In order to avoid the challenges of variability, there are some our strategies.
We take small group and separate the groups based on their ages there will
be less uncomforting and customers can communicate each other easily.
Based on KSA(knowledge, skills, and ability), we will hire qualified
employees.
All our employees will be gone through training sessions to support
professional service and cope with a difficulty during the tour.
Technology is a great method to support our product deliver. For instance, social
media will help to spread information about our company and products, and
internet will help to access to us. We also upload regularly our updated news or
information on our website and social medias.
5.2 Price Strategy
5.2.1 Cost
Calculation A: PackageVariable Cost
Package variable cost
per person
Day
1
Day
2
Day
3
Day
4
Day
5
Total cost per
person($)
Meals 60 64 20 0 0 144
Accommodation 184 90 400 400 0 1,074
Transportation 63.45 25 170 0 385 643.45
23. 22
Activities 0 40 80 0 0 120
Total package variable
cost
A1,982
The table aboveis a calculation of the total cost per person of operating the tour. The costs
include meals, accommodations, transportation, and activities.
Calculation B: Package Fixed Cost
Package fixed cost Cost per
package($)
Divide by the
number of spaces
available on tour
Total cost per
person($)
Guide wages
(Guide and assistant guide)
2,000 12 167
Local guide wages
(1 hour)
20 12 1.7
Driver wages 400 12 34
Accommodation 2,148 12 179
Meal 288 12 24
Total package fixed cost B 406
The table aboveshows a calculation of the total costper person that we will pay regardless
of the number of people in the tour. The costs include guide wages, local guide wages, driver
wages, accommodation for staff,and meal forstaff.
Calculation C: Business Fixed Cost
Business
fixed cost
Annual
cost($)
Multiply by the
percentage you want
this package to
contribute($)
Divide by the
number of spaces
available in this
package
Total cost
per
person($)
Marketing 5,000 250 12 $21
Owner
wages
60,000 3,000 12 250
Officecost 7,200 360 12 30
Insurance 3,600 180 12 15
24. 23
Total
business
fixed cost
75,800 3,790 12 C 316
The table aboveaccounts for a calculation of the total company fixed cost that might spend
to maintain the company.
Calculation D: Total PackageCost
Total package
cost per
person($)
Carry forwardthe package variable cost per person frombox A 1,982
Carry forwardthe package variable cost per person frombox B 406
Carry forwardthe package variable cost per person frombox C 316
Add A+B+C 2,704
Divide by a realistic sales occupancy rate (80%) to get the total
package cost per person
D 3,245
The table aboveindicates the total of the calculationA, B, and C with a realistic sale
occupancy rate (80%), as $ 3,245.
Price
Calculation E: Appropriate Profit
Carry forwardthe total per person package cost frombox D 3,245
Multiply by the profit percentage(8%) you want toadd to the package 260
Add the twonumbers to get the total per person package cost,including
profit($)
E
3,505
The table aboveillustrates a calculation of cost + profit margin percentage (8%) added as
$ 3,505.
25. 24
Calculation F: Commissions Cost
Carry forwardthe total package cost per person including profit from box E 3,505
Multiply by the commission percentage(15%) you want to add to the package 526
Add the twonumbers to get the total package cost per person, including commission
and profit($)
F 4,031
The table aboveexplains the total amount of appropriate price and travel agent
commissions as $ 4,031. As shown the table, wewill expect our commission cost as $526.
Calculation G: Discriminatory Price
Carry forwardthe total package cost per person including commission and
profit (BoxF)
4,031
Adjusted
Price($)
4,031
As shown the above, our adjusted price is $ 4,031, as our product will offersame price to
adult. We also do not facilitate sales promotion.
BreakEven:
Fixed Cost/ Selling Price - Variable Cost
75,800/4,301-(260+406+1,982) = # of tour 48 ($193,488)
The Break-even Analysis indicates that selling 48 packages will be needed within operating
season revenue to reach the break-even point.
5.2.2 Competitive Pricing
As our Romantic Coast Village Tour is an initiative product offering a luxury west coast tour
in Vancouver to Korean, there is almost no competitors. However,we should consider travel
companies in Korea whichoperates wide range of tour products. Their cost of luxury tour
normally is over$4,000 during seven days. Its cost is relatively lower than us but we
provide the unparalleled itinerary and superior service.
26. 25
5.2.3 Channel Pricing
Our product will be sold mainly through intermediaries so the commission is core part of
channel pricing. We will pay 15% commission to intermediaries.
5.2.4 Consumer-level Pricing
We will be charging $ 4,031 per person forour product, 4night and 5day tour in Canada.
Since our product is operating only forfive months, mainly to the wealthier, the price will
not change. As long as our target market is Korean, current Canadian currency willassist
our tour package to attract more Koreans.
5.2.5 Methods and Terms of Payment
We will be accepting payments via credit card through our website and office.By our
intermediaries in Korea customers can pay via credit and debit card or cash. As we estimate
the cost of the product in Canada, the price is affectedby Canadian currency.
5.2.6 Promotional Pricing
Our tour will be running fromMay to September; the package price will consistently be
same. We do operate to join wedding fair in Korean and personal selling with travel agency
in Korea.
Commission for travel agency; it will be distributed 15% per tour price
Wedding fair; Rental place expense + fee for Pen, Brochure
5.3 Promotion Strategy
5.3.1Groundwork
5.3.1.1Audience Analysis
Our main target audiences are consumers - Korean honeymooners, Korean baby boomers
and Koreans whoare visiting their friends or relatives in Vancouver,and intermediaries:
Korean agencies.
Consumers: There are several luxury tours located on Vancouver,but there is no other same
conceptof Three G luxury tour. This tour will offercustomers withunforgettable memories
by being pampered, and making romantic summertime. This tour targets high class of
honeymooners, baby boomers, and Korean travellers whoare visiting Vancouverto visit
relatives and lovers. We will divide accordingly into groups of similar ages to make bond of
same objectiveof travel.
Intermediaries: travel agency in Korea; travel agency is a one of the largest market in Korea.
They offersour company information to customers in Korea. They are concentrating to
27. 26
introduce the regions in exotic islands but it will be good chance to start marketing in
Canada with us.
5.3.1.2 Internal and External Analysis
In terms of budgetary factors, weare positioning as luxury tour, thus, it can be quite costly.
However,we will try to find the most reasonable price forour goals. However,it willbe
considered in the near future. Our main competitors are Hana Tours, OK tour, Queen
Charlotte Lodge, West Coast resort and Tour Network.Their main promotional methods are
various and include testimonials, informativewebsite such as Destination BC, pamphlets,
word of mouth, events, business, ownwebsite, and tourism association, social media such as
Facebook,Twitter, or YouTube.
They are trying to use the unique, effective,and differentiated marketing to promote their
own products. For example, Hana Tour whichis well-knownas the biggest tour company in
Canada, are approached to customer as wide-range of tour products. As their USP (Unique
Selling Proposition), they promote many regions in Canada giving the choicesof high-end
products to low price products. Their website, consultant and even pamphlets are written in
Korean therefore, many Koreans feel familiar and easy to access their information.
5.3.1.3 Objectives
Our objectivein marketing communication is to build ownbrand image and become the
company whichpromotes professionally forbrand awareness. We want to be
acknowledged by customer as incomparable tour company as one of the unique luxury
companies and offering differentiated services consistently. We have come up with some
behavioral objectives forour targets markets.
We aim to;
•Expand our Korean market by 10% by the end of our followinghigh season.
• Expand our tours as prominent luxury tour Company within the next four years to reach a
larger market.
5.3.1.4 Promotional Tool Strategy
a. Digital Media: In ownYouTube channel and our website, we usually upload the videos
whichare recorded during the tours to promote our company and to give a preview about
our product of whatwe are going to offer.We post interview videos with our staff or past
customers on our website.
b. Advertising: Our company approaches tocustomers with brochures, and also advertises
through social media such as Facebook,Instagram or YouTube.
c. Public relation (PR)and publicity: Making viral videos on YouTube willplay a crucialrole
as a tool of PR and publicity.
d. Sales Promotions:We will carry out a sales promotion particularly through trade
promotion. As we willregularly visit Korea, we will participate in wedding fair in Korea.
e. Direct Marketing: During bookings, weoften receive customer’s personal information - e-
mail addresses, telephone number and Facebook. Thanks to this weare able to contact
them, and directly promote on our Facebookpage.
28. 27
f. Personal selling: To facilitatepersonal selling to our intermediaries - travel agencies, we
will visit Korea twice a year. Our marketing staff willsell the products and give brochures to
the travel agencies.
5.3.2 Digital Media Action Plan
As the website is an essential part of businesses, we have a website that offers specific
information, itinerary and pricing about our products. The company website address is
“threegtour.ca.” The website is easy to access and simply designed forpeople whoare
unfamiliar withtechnology. As our main market is fromKorea, there is an option to change
between the languages Korean and English.
The website contains all the essential information for our customers whomight want to find
out, including the prices, itinerary, maps, and videos for showing beautiful sceneries as a
part of a preview. These videos are, also uploaded on YouTubeunder the company channel
"Three G Tour". There is also a review category of past customers to share their experience
and information.
Three G Touracknowledges the importance of social media as an essential toolof
marketing. To use these advantages of social media, the company keeps its many accounts
issued on regularly. These accountsinclude Facebook,Twitter,YouTube, and Instagram.
5.3.3 AdvertisingAction Plan
Three G tour is trying to advertise consistently with the company's marketing
communications plan.
Brochures:
Our brochure is designed as simple and easy contexts: it offers a description of our tours,
introduces our team briefly and has pictures of destinations. It also provides our website,
address and contactnumber. Our customer can find our brochure in their hotel, travel
agency or at a tourist information center.
Magazines:
We are targeting high class of Korean so weare approaching forfitting withtheir life style.
They have high self-esteem and wish to experience more unique and luxurious experiences.
For them, weare going to use the luxury magazines for targeting high class customers
appealing that we have differentiated travel, service and special. Magazine is general and
brief but fascinating information about our tours. Through luxury magazines such as
Secreto introduce and attract customers who affordto consider our product.
Social Media:
Our staff whoknows how to deal withsocial media will keep managing each of social media.
Eachaccount and channel are going to be updated three times per week and convey useful
information to potential customers.
29. 28
• Facebook:ThreeG tour
Noticing new events, information, uploading pictures, linking to Youtube and Instagram
updates
• Twitter:@ThreeGtour
Current events and communicate withcustomers whoare twitter users
• YouTube:ThreeGtour
Videos of tours and interviews of customers
• Instagram: ThreegGtour
Pictures of destinations, communicate with customers
Website: http://www.threegtour.ca
Our website contains comprehensive information such as itinerary, prices, brochures, maps,
and mission, company information. There also is function forlinking to social media
accounts, and videos in YouTubewill be displayed. Searching engine operates even small
keywordswhichcustomer wish to know.
5.3.4 PR and publicity action plan
Viral video
We generate and spread viral video about our company and product on YouTube.We make
this videoto relevant withour product and highlighted beautiful scenery. Our final object is
attracting potential customers through this video.
Channel communication
We try continuously to keep good relationship with our channel members; they can be
supplier, intermediaries and business clients. Our staff willsend handwritten letters to each
of our channel members about our company’s information and other useful events. We can
get a good image and give them good impression forbetter relationship with low-cost.
Through the small efforts,our company’s image and product will grow.
5.3.5 Sales Promotion Action Plan- Consumer and Trade
As mentioned previously,we aim to become unique and luxury tour. However,we are new
company so we willfocus on our brand awareness, participating Korean wedding fair
regularly.
Wedding Fair
We are going to engage the fair to introduce our productand company. As there will be
many potential customer, we will offerpen with our contact information and brochure.
30. 29
5.3.6 Personal Selling
We will personally sell our product withKorean travel agencies through many efforts.It is
high price but essential part of business to interact with more customers. They will be
strong power to make more customers in the close future. In fact, Koreans tend to rely on
travel agency besides they usually consult and decide through them. We will visit to Korea
regularly to keep good relationship and appeal our products and company’s brand.
5.4 Place Strategy
5.4.1Access
Romantic Coast Village Tour begins at our meeting point; WaterfrontStation located in the
heart of downtownVancouver. The place is easily accessible by bus, skytrain, or seabus. The
map is below:
(Source:bing map, 2016)
In order to avoidconfusion and uncertainty, weprovide directions and maps on our
website, as well as on our brochures whichwe will send. Upon booking, we willask the
customers how they plan to arrive in the morning. We willensure to direct them.
31. 30
(Source:google map, 2016)
5.4.2 Resellers/Intermediaries
We do rely on Korean travel companies such as Hana Tour and Mode Tour as our crucial
intermediaries. They willreceive a 15% commission forevery guest they bring in. We also
promote our tour package through social media- Facebook, Instagram, Twitter, and
YouTube.By providing the participants with great unforgettable memories, former
customers wouldbe an important marketing intermediaries for us.
5.4.3Partnerships
The three G’s operation will begin in 2016 so that we willput more effortto build
partnerships in order to maximize and maintain profit. These partnership will be with
Korean travel companies in Korea; wewill support each other product through in Korea
and Canada.
5.4.4 Title transfer
We will offerbooking on our website as well as in our office.Since majority of customers
are in Korea, our travel agents will help them make a reservation through online, phone, or
person in Korea. Customers will receive conditional refunds if necessary. We also have an
internet phone, 070-123-1234, whichcustomers and intermediaries can callfor information
and booking.
32. 31
Conclusion
With the unique, luxurious tour package, Three G aim to be the largest company in tourism
industry in Canada. Our tour with superior service provides all our customers fabulous and
unforgettable memories. The vision forsuccess of Three G is to attract people who are
about to go their honeymoon and want to have a special tour withpartners. Our employees
are passionate, outgoing and welltrained to add more safety and comfortinto our products.
In years tocome, we hope that our tour is successful.
33. 32
References
Destination British Columbia (June 2014), Tourism market profileSouth Korea,
retrieved from
http://www.destinationbc.ca/getattachment/Research/Research-by-
Market/ Asia-Pacific/South-Korea_MarketProfile_2014.pdf.aspx
Canadian tourism commission(2014),Global tourism watch 2014 South Korea
summary report, retrieved from
http://en.destinationcanada.com/sites/default/files/pdf/Research/Market-
knowledge/Global-tourism-watch/SouthKorea/gtw
southkorea_2014_summary_report_eng_v2.pdf
Journal of Economicsand Business Research ( Nov 21, 2014),International tourism
evolution and smartphone impact on tourism from
https://www.researchgate.net/publication/268522286_International_Touris m
Evolution_and_Smartphone_Impact_onTourism
Provinceof British Columbia: BC Homepage(Nov 24, 2015), liquor laws, from
http://www.pssg.gov.bc.ca/lclb/LLinBC/basics.htm
ICBC(2015), Driver licensing, from
http://www.icbc.com/driverlicensing/Pages/Default.aspx
SISKINDS(2016), Canadian environmental law introduction, retrieved from
http://envirolaw.com/canadian-environmental-law-learn/intro-environmental-
law/
Canadian tourism commission(February, 2013), South Korea market profile, retrieved from
http://en.destinationcanada.com/sites/default/files/pdf/Research/Market
-knowledge/Market-profile/SouthKorea/kr_market_profile_2013_feb-2013.pdf
SMALL BUSINESS BC(2016), How to start your business: yourlegal requirements, retrieved
from
http://smallbusinessbc.ca/article/how-start-your-business-your-legal-
requirements/
City Of Vancouver (Dec 2014),Get a business license, retrieved from
http://vancouver.ca/doing-business/get-a-business-licence.aspx
Provinceof British Columbia: BC Homepage(2016), Tax Rates, retrieved from
http://www2.gov.bc.ca/gov/content/taxes/income-taxes/personal/tax-rates
WorkSafeBC (2016), Workerbenefits, retrieved from
http://www.worksafebc.com/claims/worker_benefits/Default.asp
NIAC Association (2016), Standard Industrial Code Divisions, retrieved from
http://www.naics.com/standard-industrial-code-divisions/?code=07
Geoheritage (2010),Geotourism’s Global Growth, retrieved from
https://www.researchgate.net/publication/225513892_Geotourism's_Global_
Growth
Provinceof British Columbia: BC Homepage (2016), 2015-2017 Freshwater Fishing
34. 33
Regulations Synopsis, retrieved from
http://www.env.gov.bc.ca/fw/fish/regulations/docs/1517/fishing_synopsis_2
015-17_provincial.pdf
Trading economics, South Korea inflationrate, retrieved from
http://www.tradingeconomics.com/south-korea/inflation-cpi
Ranker (2016), List of Tourism Companies, retrieved from
http://www.ranker.com/list/tourism-companies/reference
Honeymoon resort,(2011), retrieved from
http://www.slideshare.net/nattatira/mskim-bo-yeon
Sonara resort,(n/d), Sonora resort, retrieved from
https://www.sonoraresort.com/
Eurocentre, Pictureof map, (n/d), retrievd from
www.eurocentres.com/ca
Mplan, How to perform a SWOTanalysis, (2009), retrieved from
http://www.mplans.com/articles/how-to-perform-a-swot-analysis/
South Korean Market trade and profile, Market snapshot, (2010), retrieved from
http://moodle.capilanou.ca/pluginfile.php?file=%2F754633%2Fmod
resource%2Fcontent%2F0%2FSouth%20Korean%20Traveler%202010.pdf
South Korean Market trade and profile, Pictureof graph, (2010), retrieved from
http://moodle.capilanou.ca/pluginfile.php?file=%2F754633%2Fmod
resource%2Fcontent%2F0%2FSouth%20Korean%20Traveler%202010.pdf
BC, D. (2007, February).Researchof Koreanconsumer.Retrieved from
http://www.destinationbc.ca/getattachment/Research/Research-by-Market/All-
Market-Research-Partnership-
Projects/South_Korea_Consumer_Travel_Trade_Research-sflb.pdf.aspx
Choi, S. (2013). Honeymoon trend analyzed by OTA. TravelNewspaper.
Hanatour. (2016).Retrieved from Hanatour Canada tour:
http://www.hanatour.com/asp/booking/productPackage/pk-
11000.asp?area=G&pub_country=CA&etc_code=P&goods_grade=
12&hanacode=classic_h_04http://www.hanatour.com/asp/booking/productPackage/
pk-11000.asp?area=G&pub_country=CA&etc_code=P&goods_grade=12&hanacode=c
Resort, H. (2011). UnderstandingofKoreanHoneymoonMarket. Korea.
Island, H. (2015). Koreamarket briefing.Retrieved from
http://www.hawaiitourismauthority.org/default/assets/File/03%20-%20Korea%
202015%20Spring%20Udpate.pdf
Seoul National University Institute on Aging.(2011), Korean Baby Boomers in transition.
Retrieved from
https://www.metlife.com/assets/cao/mmi/publications/studies/2011/mmi-korean-
boomers-.pdf
International Impact of Economic.(2012). Economic Impact of International.
retrievedfrom
http://www.international.gc.ca/education/assets/pdfs/economic_impact_en.pdf.
