Strategic Marketing Plan - Essay Example

? Strategic Marketing Plan Resuming Tourism in Swat Valley (Pakistan) Executive Summary This report presents a marketing plan aimed at resuming tourism in the valley of Swat located in Pakistan. The valley of Swat remained under the control of terrorist organizations until the military operation was carried out. The valley of Swat is known for its amazing natural beauty and therefore there is a huge attraction for domestic and international tourists. In order to resume tourism in the valley after the removal of terrorists hold, this report presents a three year long marketing strategy which is categorized into three phases. The first phase will focus on attracting domestic tourists; the second will focus on domestic and international tourists, while the third phase will concentrate only on attracting international tourists towards Swat valley. The marketing plan presents an overview of the financial aspects of the strategy. Strategic Marketing Plan Resuming Tourism in Swat Valley (Pakistan) Introduction This report covers a strategic marketing plan for resuming tourism in the Swat valley located in the South Asian state, Pakistan. The valley of Swat had been under the control of terrorists and extremists before a successful military operation conducted by the Pakistan Armed Forces in 2009 (Khan 2010). The structure of the report is based on the marketing plan structure presented by McDonald (2008). The marketing plan is based on the following structure: Part 1: Goal Setting This part presents the goal set to be achieved from the marketing plan presented in this report. Part 2: Situation Analysis This portion of the plan presents the analysis of the tourist destination under consideration and also gives an overview of the products which can be marketed. Apart from this, the section also presents competitor analysis of Swat valley with other tourist destinations in Pakistan and other regional tourist places. Part 3: Strategy Formulation This part presents the complete marketing plan and the strategies which are devised to achieve the goal and objectives set earlier in Part – I. Part 4: Resource Allocation and Monitoring This is the last part of the report, which presents the financial aspects of the marketing plan and entails the inflows and outflows related to the marketing campaign. Moreover, the monitoring of the outcomes of the marketing plan after its implementation are also being discussed in this part. 1. Goal Setting The aim of this market plan is to resume tourism activities in Swat Valley in Pakistan by taking into consideration the competitive advantages of the place as against the tourist destinations in the region of South Asia. 1.1. Marketing Objectives In order to present a direction for the goal of this marketing plan based on SMART objectives (Doran 1981), following are the strategic marketing objectives which are planned to be attained: To resume tourism activities in Swat valley; To promote the soft image of Swat valley and its people by conducting various events and projecting them to the outside world; To resume tourism activities in Swat by following a step wise strategy which focuses on domestic tourists first and then international tourists; To generate positive cash flows from tourist activities in the second year of the implementation of the marketing plan; To increase cash inflows from domestic tourists visits by 60 percent as compared to the first year in comparison with the first year; To increase cash inflows from international tourists’ visits by 33.33 percent in the third year in comparison with the second year. 2. Situation Analysis Following is an analysis of the situation relating to tourism in Swat valley, which considers different aspects relevant in devising a tourism marketing strategy for Swat. 2.1. Swat Valley Swat is a famous tourist destination in the northern regions of Pakistan, administered under the government of “Khyber Pakhtunkhwa” Province of Pakistan. The valley of Swat lies in the upper parts of the Swat River, which emerges from the Hindu Kush range. The majority of population in Swat valley is comprised of Afghanis and Pashto speaking tribal people. The mountains, green pastures and clean water lakes add to the beauty of natural landscape of Swat valley and it is due to its great natural attraction that the valley is referred to as “the Switzerland of South Asia”. From tourism point of view there are various attractions (products) in the region which are all worth seeing (Tourism 2012). 2.2. Products The products or the tourist destinations for the travelers to the valley of Swat include the following: Ushu: Among many tourists’ attraction in the valley, Ushu is one of the most beautiful natural sight and offers its visitors many beautiful attractions including the tallest peak in the valley “Mount Falaksair” and a beautiful lake named “Mahodand” (Valley Swat 2012). Kalam: Kalam is regarded as the most beautiful part of the valley and paying regard to its beauty, the place is commonly referred to as the Switzerland of South Asia. There are dense forests of pine in this place, alpine meadows, fresh water lakes and water streams coming down to the valley from the midst of the mountains. Kalam also has snowfall in winters and therefore skiing is a common activity in the area in winters (Tour Swat 2012). Bahrain: Bahrain is the place where Swat River along with Daral River approach the bridge in place in the form a beautiful waterfall and then wind their path through the passages besides tall cliffs. The construction of wood houses in the region and the handicrafts of the locals has always something special to offer for the visitors (Valley Swat 2012). Madyam: This place is known as a famous tourist resort with its steep hills covered with thick forests which are naturally positioned as a background of the Swat River (Valley Swat 2012). Miandam: This place is known for its greenery and the natural scenery which is formed by the grassy fields, orchards and beautiful mountain slopes all covered with thick grass. Those who like hiking and trekking love this place (Valley Swat 2012, Tour Swat 2012). Malam Jabba: Malam Jabba is a famous resort based on the hills in valley. High mountain peaks, beautiful green meadows, and heavy forests of pine trees surround the resort. This area is perfect for those who like to have picnic for a short time (Tour Swat 2012). Mingora: Mingora is the heart of Swat valley, as it is regarded as the marketplace for businessmen in the region. All major transportation facilities, hotel rooms’ reservations and shopping areas are present in this region. In fact, touring Swat starts with Mingora (Tour Swat 2012). 2.3. S.W.O.T Analysis of Swat Valley Following is a SWOT analysis of Swat valley as a tourist destination place: Strengths The beauty of Swat valley is in itself a major strength of the destination, the mountains, thick forests, the Swat River and other attractive sceneries are the strengths of this destination. The fact that Swat valley is a point through where tourists can access or reach other nearby destinations with relative ease is also a plus point for the destination. As Swat is an old destination for different travelers in the past, there are traces of their inhabitation in the region. As for instance, Buddhist embraced Swat as a settlement until foreigners defeated them. The Buddhist heritage can still be visited which are fortunately in good shape. Apart from this, there are different historical forts and palaces in Swat, which attract tourists’ attention. In addition to these factual strengths, swat has a wonderful climate, which suits domestic and international travelers. The geographical positioning of the valley is such that it has mountains, rivers, forests and snowfall in the winters, which adds to the beauty of the place. Weaknesses The infrastructural facilities are still lacking or scarce in Swat valley. The promotional policies and marketing campaigns of the government and other related authorities are not effective enough to promote the area as a potential tourist destination. The lack of facilities for tourists also adds to the weaknesses of the Swat valley as a tourist destination, as for instance, there are a handful of hotels and motels in the valley and those which are operational do not offer facilities of international standards or such facilities which can meet the demands of international tourists in particular. No international marketing campaigns for promoting Swat valley tourism. Absence of special offers or facilities at Swat valley which would attract tourists. Since after the military operation in Swat which swept extremists and terrorists from the valley, no effective marketing strategies have been adopted to promote tourism in Swat. Opportunities By marketing effectively the historical places in Swat valley, the natural beauty it offers to the travelers and the heritage, the tourism can be increased in the region. There is an opportunity to promote a soft image of the people and the place itself by conducting recreational activities and programs which are given proper media coverage. There are various other small tourist places, which lie nearby Swat valley; effectively promoting the vicinity of such places can improve the tourists preference for Swat valley. The experience of mountains, lakes, valleys, snowfall, forests and other extraordinary sights at one single place can be utilized to motivate tourists to visit Swat valley. Threats Apart from the fact that the government from Swat has out settled the militants and extremist groups, there is still a feeling of cautiousness among tourists who wish to visit Swat valley. Other international tourists’ destinations have effective marketing campaigns and the frequencies of tourists visiting those destinations are considerably higher than the visitors’ count in Swat valley. Due the lack of infrastructural facilities, touring Swat valley is relatively costly which deters tourists from considering Swat as their preferred tourist destination. Lack of dedicated guides for foreign tourists also poses a potential barrier to visiting Swat valley. 2.4. Competitive Analysis As far as competition is concerned, Swat valley can be placed in the competitive environment comprising of South Asian tourist destinations. The major destinations, which are preferred by tourists in this region include places in India, Sri Lanka, Bhutan, Nepal, Maldives, Bangladesh and other tourists’ destinations in Pakistan. The competitive analysis for Swat valley is presented in the following table: Region Type of Competition Degree of Competition India Natural sceneries / Skiing / Scenery / Wildlife / Beaches / Snowfall High Bhutan Mountains / Skiing / Hiking / Trekking / Snowfall High Sri Lanka Beaches / Natural Scenery Low Nepal Mountains / Skiing / Hiking / Trekking / Snowfall High Maldives Beaches / Islands Low Bangladesh Beaches / Forests / Mountains Low Other tourists’ attractions in Pakistan Historical places / Mountains / Snowfall / Natural sceneries High Table 1: Analysis of Competitive Environment for Swat As per the above table, the valley of Swat is in direct competition with the regions which have similar products to offer as are being offered by Swat. India, Nepal, Bhutan and other places in Pakistan are expected to be in tough competition in tourism aspects with Swat valley. According to the report published by World Tourism Organization in collaboration with the United Nations, the tourists arriving in South Asian region increased in from 11.60 million in the year 2010 to 12.60 million in the year 2011, which means that the net increase in the tourists arrival in the region in 2011 was 1 million precisely (i.e. 8.9 percent) (World Tourism Organisation 2012). These arrivals of tourists amounted to 1.3 percent of the worldwide tourism arrivals in the year 2011. This growing tourists’ arrival in South Asia offers a great opportunity for attracting tourists to travel to Swat valley. Apart from this, it is pertinent to mention here that there are various airlines through which tourists travel to these tourist destinations in South Asia, of which major airlines include Pakistan International Airlines (Pakistan), Emirates Airlines (operating in Pakistan, India, Bangladesh, Nepal, Bhutan, Sri Lanka, Maldives), Qatar Airlines (operates in Sri Lanka, India, Pakistan, Bangladesh, Maldives, Bhutan and Nepal), Sri Lankan Airlines (operates in Sri Lanka, India, Pakistan, Bangladesh, Maldives) and Kingfisher (operates in India, Bangladesh, Sri Lanka, Maldives) (Asia 2012). 3. Marketing Plan 3.1. Target Customers Base The target customer base for this marketing plan includes all the tourists who travel to the tourism destinations in the South Asian region. In this way, the plan aims at focusing on devising strategies which are particularly meant to target tourists visiting the tourists’ spots in South Asia. The motivation and justification for targeting this particular customer base comes from the fact that Swat valley is located in the region where tourists come to travel towards mountainous regions and get themselves involved in activities like hiking, trekking, skiing and enjoying snowfall 3.2. Marketing Strategy Since the goal of this marketing plan is to resume tourism activities in Swat valley after the military operation in the region, therefore the strategy devised in this respect is primarily focusing on motivating tourists to visit the valley without any fears or doubts in their minds. Henceforth, the marketing strategy in this plan is based on the strategic model of 4Ps of marketing. In light of the 4Ps of marketing model (McCarthy 1975), each of the four Ps is being discussed in order to present a strategic marketing plan. Product Considering the products being discussed in the situation analysis, Swat valley has a lot to offer to its visitors. Since there are a lot of products to be offered to the target customers, it is important to categorize which products require substantial marketing and how can they be promoted. The promotional strategies are presented in the promotion section of this marketing strategy. Apart from this, the products available for marketing while considering Swat valley are diversified and can be put into direct competition with other competitors. However, while promoting these products, it is made sure that the nature of a product is not contrasting with what is being put in competition with it. As for instance, hiking and trekking in Swat can be compared and marketed in competition with the same tourists’ activities in Nepal, Bhutan and India but cannot be marketed in competition with tourism activities in Sri Lanka, Maldives and Bangladesh. Moreover, it is also planned that the products or activities will be promoted by differentiating their features with respect to same products or activities in other parts of South Asian region. Price Keeping in view the competitive analysis presented earlier, it is pertinent that the overall cost of touring Swat is brought down to such reasonable levels that tourists do not find it expensive while preferring Swat to other tourist destinations in the region. As for instance, after recovering from the military operations in Swat, the business runners in the valley are already looking ahead towards improving tourism conditions in the area and in this regard they are willing to offer special prices with respect to hotel stays, food, transportation and other services required by tourists (Yusufzai 2010). This positive and optimistic attitude of the locals for bringing back the lost charm can be used to attract tourists into valley. In addition to this, the tourists visiting Swat valley can also find their tour cost effective, since in a single tour they are able to enjoy and take part in a variety of activities at one place, which includes enjoying snowfall, skiing, hiking, trekking, snowfall, river, waterfalls, mountains, etc. Placement Since the products in to be marketed in this market plan are not tangible in a way that they can be physically presented to the potential customers (tourists), therefore, it is planned that customers will be informed about the products and related hospitality services available in Swat valley. As mentioned earlier in the description of the products, there are various activities for tourists visiting Swat, such as hiking, skiing, trekking, etc. This special feature of Swat valley can be brought to the attention of the potential tourists by way of marketing this aspect of the place. Apart from this, the tourists can also enjoy hospitality services in the area at low costs. The Swat valley, before going through the phase of extremism, had a very well organized system of hospitality services for the tourists visiting the place. Now these facilities can be utilized again in order to attract tourists, which spend their holidays or carry out different activities in places other than Swat. In Swat, there are various hotel business runners and therefore booking a hotel room is not an issue. Moreover, there are many tour operators, which operate in Swat region and they provide different packages as per the needs and requirements of the tourists. For international tourists, the gateway to Swat is the capital city of Islamabad. After reaching Islamabad airport, the tourists can reach Swat straight away by opting from any of the available transport options. Promotion The marketing of tourism in Swat valley is planned to be carried out in three phases, with each phase spread over a period of one year. The first phase comprises of attracting tourism domestically, the second deals with promoting Swat to international tourists in addition to the domestic travelers and the third phase focuses only on international tourists. These three phases are discussed as under: Phase – I In the first phase (first year) of marketing, it is planned that the initial promotion and the marketing of the product will be carried out locally or domestically. This strategy will help in motivating local tourists to visit Swat valley and the improvement in tourists’ visits to Swat valley can be utilized in projecting Swat, as a safe tourist place, next year in which the marketing strategy will target international tourists. The strategy for motivating tourists in Swat is comprised of different plans; in this regard, different events will be organized in order to attract the tourists. The events planned to be organized include The target in this phase is to bring the total number of tourists visiting the place to 25,000 tourists, which are expected to be domestic travelers only. The primary objective in this phase is to develop grounds for promoting tourism in Swat internationally and by way of bringing in the local tourists to place first, it is expected that travelers from different countries will get assured of the safety of visiting Swat. Phase – II The second phase is actually the expansion of the first phase as it will also take into consideration the potential tourists from abroad who travel to different tourist destinations in South Asian region. This campaign will comprise of marketing the Swat valley and its features through advertisements in international media and also by placing advertisements on social networking portals on the web. In addition to this, there will be an in-flight campaign in selected airlines which carry passengers to different tourist destinations in South Asia; the airlines include Pakistan International Airlines, Emirates Airlines, Qatar Airlines and Air India. This in-flight marketing campaign will introduce Swat valley to the passengers and show them how the destination is safe for travelling after being hit by the terrorism wave in the region. This will allow the potential tourists to get to know about the place and the fact that Swat valley is once again a safe place to tour for carrying out leisure activities. Phase – III In the third phase, international promotional campaigns will continue but the domestic promotional campaigns will be stopped. The international promotional campaigns will include the same marketing activities; however, the skiing competition, which is placed in the second phase, will be replaced by hiking and trekking events. In addition to these activities, the third phase also includes a complementary offer for tourists coming to Swat from abroad, which will be a visit of Silk Route. These activities are expected to help in attaining the objectives of this marketing strategy. 4. Resource Allocation and Monitoring 4.1. Financial Considerations In order to carry out the marketing activities as discussed above, the financial plan for each of the three phases is presented as follows: Budgeted Cash Inflows and Outflows Year - 01 Year - 02 Year - 03 Cash Inflows GBP GBP GBP Expected Revenue to be generated (Domestic Tourists) 25,000 40,000 45,000 Expected Revenue to be generated (International Tourists) - 30,000 40,000 Total 25,000 70,000 85,000 Phase - I       Cash Outflows       Promotional Activities within Pakistan through Electronic Media 12,000     Web based promotional activities (Domestic) 8,000     Social Marketing (Domestic) 5,000     Other marketing campaigns 5,000     Conduct of Musical Gala (3 days) 12,000     Total 42,000     Phase - II       Cash Outflows       Promotional Activities domestically and internationally through Electronic Media   20,000   Web based promotional activities (Domestic and International)   15,000   Conduct of Skiing Competition (3 days)   10,000   In-flight marketing campaign   20,000   Total   65,000   Phase - III       Cash Outflows       Promotional Activities internationally through Electronic Media     15,000 Web based promotional activities (International)     10,000 Conduct of Trekking and Hiking events     12,000 Special package for tourists from abroad - Visit to Silk Route     10,000 In-flight marketing campaign     25,000 Total     72,000 Net Cash Flow (17,000) 5,000 13,000 This summary of financial plan, as can be seen above, includes the inflows and outflows for all the three phases of the marketing campaign. These figures reflect that the according to the plan, it is expected that the resumption of tourism in Swat valley will result in positive net cash flows in the second year of the implementation of the marketing plan and in the third year these positive cash flows will further increase. In order to evaluate the efficiency of the planned marketing activities and to ensure that the desired results are being obtained successfully, there will be a continuous process of evaluation of the progress of the marketing campaigns by comparing the actual results with the expected (budgeted) results. In case there are significant differences in the planned and actual results, the marketing plan will be adjusted in a way to achieve more realistic results in the next phase. List of References Asia, 2012. Plan your tour. [Online] Available at: [Accessed 03 March 2012]. Doran, G.T., 1981. There's a S.M.A.R.T. way to write management's goals and objectives. Management Review, 70(11), pp.35-36. 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