Brief Insight of Alton Towers - Case Study Example

A brief insight of Alton Towers Alton Towers is among the leading tourist attractions in the United Kingdom drawing millions of visitors from different parts of the world yearly as explained by Rowbotham et al. (2007). It is home to the best roller coasters in the UK including Oblivion, Corkscrew and Rita and Nemesis. The resort and its consultant team have done a number of technical studies that will act as a framework for the development of a long term marketing plan. Alton Towers is a highly competitive visitor attraction and leisure market that constantly reviews the services offered in response to customer expectations. The formulation of a long term marketing plan ensures that the resort remains a popular tourist destination and highly competitive. In 2007, Alton Towers joined Merlin Entertainment Group which is the second largest and the most dynamic tourist attraction (Fyall et al., 2008). Merlin manages tourist attractions, hotels and holiday villages in different parts of the world. The growth strategy involves the continuous investment in all the attractions to improve quality of the customer service and experience. The company also aims to develop the theme parks into short break resort destinations with the inclusion of accommodation options and more quality entertainment along the Alton Tower model. Alton Towers is the ninth most visited theme park in Europe and the most popular park in the UK. The park attracts approximately 2.7 million visitors annually (Alton Towers, 2010). The resort has developed a 10 year plan to remain a favorite tourist destination and to ensure its competitiveness. Upon finalization, the plan should be handed over to the Council to notify them about the review process for the production of a new (SPD) Supplementary Planning Document for Alton Towers. PEST/SWOT analysis of Alton Towers Alton Towers should consider its environment before choosing the marketing principles to apply. The internal environment is composed of the staff, office technology and the departments in the organizations. The micro environment is composed of the customers, distributors and suppliers while the macro environments is composed of the Political (Legal) forces, Economic, Socio-cultural and Technological forces which are popularly referred to as PEST (Hooley et al., 2004). These factors play an essential role in the creation of a marketing strategy. The success of an organization goes beyond the PEST analysis since it should consider the strengths, weaknesses, opportunities and threats which are referred to as the SWOT analysis. The market position of Alton Towers The resort has positioned itself in the entertainment and theme park market in order to target a specific type of customers. In the recent past, the resort has made modifications in the theme park and market research and this attracted a wide range of visitors as explained by Solomon et al. (2008). The management has invested heavily in the introduction of attractions and new rides to appeal to families. As a result of the aggressive marketing strategies, product development and promotion there has been an increase in the number of visitors leading to an increase in revenue (Solomon et al., 2008). A market position involves communication with consumers to establish a suiting place for the particular brand in their mind. The resort has achieved this through aggressive advertising, market research and applying the effective principles of marketing. The resort meets the standards and rising expectations to retain their position in the market and maintain their reputation. Problems and challenges The resort faces challenges and problems like all other businesses in the tourism sector. There have been numerous complaints from the customers about the long queues and overcrowding due to the high number of people visiting the park. The resort has been faced by legal suits due to the high levels of noise made in the park. In 2004, the park lost an appeal against noise abatement order that was made at a private prosecution filed by the neighboring residents (BBC News, 2005). The resort has been under criticism lately with the introduction of a Muslim only day. Political factors The political (legal) framework has a huge influence on the regulation of businesses and the spending power of consumers. With the establishment of a Muslim only day, the rest of the population is not allowed to have fun as there are many restrictions (Patrick and Russell, 2006). There was a couple that had paid for venue of their Wedding to be at Alton Towers unfortunately it clashed with the Muslim only day. Alton Tower failed to give the couple prior notice about the clash of the two events. The Muslim day required the couple to adhere to the strict rules governing their culture and religion and this was not fair since they had paid 50,000 Euros to use the park (Brooke, 2006). The park failed the KFC hygiene inspection test and environmental health inspectors have criticized it for flouting basic hygiene rules. The standards of hygiene, safety and health practices are far lower than those stipulated by law. Spot checks and inspections conducted by health officers discovered many unhygienic practices in the park (The Senitel, 2006). Economic factors The park generates £38 million locally and £73 million in the regional economy. The company contributes towards employment in the region since it is responsible for 2,900 jobs locally and 3,520 in the west midlands (Alton Towers, 2010). The park does not discriminate and provides jobs for all age groups. The park is responsible for 50% of Staffordshire Moorland’s tourism. Long term plan The park’s management formulated a 10 year plan that has led to an increase in levels of income by £12 million. According to Alton Towers (2010), 735 jobs would be created in the resort and 980 more jobs in the local area. Social-cultural factors The operations and supplies of the resort rely on the local suppliers and labor. The resort ensures proper TQM (Total Quality Management) including food hygiene and proper production methods. The resort maintains the historical buildings and the scenery is a USP as stipulated by Rowbotham et al. (2007). It embraces exotic cultures for example multilingual service which acts as a way of attracting cultural tourists. Technological factors The world of technology is constantly changing with time and the park should use it to improve customer service and as a marketing platform through the internet. The park has the best roller coasters and amusement facilities that offer a thrilling experience to the customers. The park should use technology to better their facilities by providing better accuracy (avoid accidents) and security (safety) to its customers. Technology also minimizes costs and acts as a fresh stimulation. Problems and challenges There are problems and challenges affecting the operations of the park. The new era of technology, competition and the current economic conditions require proper marketing strategies for the resort to remain at the top. The resort requires a new professional area for the efficient delivery of services to the customers. The resort is faced by challenges top on the list being competition from its major competitors mainly Disneyland. The current conditions in the market require appropriate strategies to ensure that it fights the major competitors and survives the harsh economic times. SWOT analysis A comprehensive study of the resort’s internal and external environmental factors is mandatory for the planning process. The external factors are classified into opportunities and threats while the internal factors are classified into strengths and weaknesses (Bohm, 2009). The resort uses this in policy formulation and in choosing of the appropriate marketing strategy. Strengths The park is well established and has a proper management and motivated employees which ensures achievement of set goals. The business is organized and exercises proper marketing to attract a higher number of customers. Weaknesses One of its major weaknesses is that the resort has poor relations with local community as seen in the 2004 case when it was sued for resulting to too much noise in the neighborhood (BBC News). The resort is not efficient in its operations as there have been experiences of long queues, poor hygiene in the restaurants and a case where the Muslim day clashed with a wedding of a non-Muslim couple showing lack of efficiency. Opportunity The resort can expand into different markets since it has a wide market and a huge customer base. It should create a unique brand name through proper advertising and this leads to increased sales globally. Threats The resort faces threats from local community as it lacks proper corporate governance and therefore it should take society welfare seriously. It faces major competition from other companies one being Disneyland. External factors including shifts in customer tastes, trade barriers and the global economic conditions may impact negatively on the resort. Recommendations The resort’s market performance and positioning is impressive in the competitive market however it should improve on various areas to boost its revenue, expand its customer base and improve service delivery. The future blueprint is that the resort should be the use of the key marketing principles to increase its sales. The park should consider opening of new markets to be able to handle the rising number of customers and to raise more revenue. The resort should arrange meetings with the local community and set up sponsorships as a way of corporate governance and giving back to society. The resort should increase the number of multi-night stays to cater for the diverse needs of their customers. The resort should apply the brand strategy to increase its investment, improve their marketing and maximize on their revenue. References Alton Towers, Alton Towers, viewed 9 December 2010, . BBC News, Alton Towers loses noise appeal, viewed 9 December 2010, . Brooke, C 2006, Couples Alton Towers wedding in the balance after clash with Muslim fun day, viewed 9 December 2010, . Bohm, A 2009, The SWOT analysis. GRIN Verlag. Hooley, GJ, Saunders, JA & Piercy, NF 2004, Marketing strategy and competitive positioning. 3rd edn. Financial Times/Prentice Hall. Fyall, A, Leask, A, Garrod, B & Wanhill, S 2008, Managing visitor attractions, 2nd edn., Butterworth-Heinemann. Patrick, G & Russell, A 2006, BRITAIN’S biggest fun park has sparked a race row ? with a MUSLIMS-ONLY day, viewed 9 December 2010, . Rowbotham, F, Azhashemi, M & Galloway, L 2007, Operations management in context, 2nd edn. Butterworth-Heinemann. Solomon, MR, Grey Marshall, GW & Stuart, EW 2008, Marketing: Real people, real choices, 5th edn. The Senitel, 2006, KFC failed to meet basic hygiene rules, viewed 9 December 2010, . Read More