Marketing Analysis of Usitrip Travel Company - Essay Example

Marketing Analysis of Usitrip Travel Company Executive Summary Usitrip Travel Company is part of the United stars International Ltd. headquartered in Los Angeles, California, address: 133 W Garvy Ave B Monterey Park, CA 91754. Usitrip Travel Company is a collection of highly global customized, intelligent outbound tourism, business investigation and related products, services, with the combination of enterprise electronic commerce. Most of Usitrip travel company’s customers are from China. It has a legitimate American business license and the California travel licenses (its registration number can be in California procuratorate official website to verify), has been always get the federal business bureau (BBB) certification for grade A highest reputation ratings. An opportunity exists for two reasons: 1) Tourism is a growing industry (4% annually). The United States tourism market is large and the U.S. visa is one year multiple entry visa, as long as the period of validity of the visa, tourists can visit the United States for many times, it also makes the United States tourism demand to be strong. 2) Chinese consumption ability and willingness to spend is very strong, in the past two years it has been perceived as a fashion to travel to the United States. The companys target customers are high-income earners (min. $75,000 for a single person), health-conscious individuals interested in popular overseas tour. These are lawyers, bankers, executives, doctors and business owners. The major purchasers are located in urban areas within major China cities. There is fast development in the business sector and expanding interest. Additionally, more specialty markets are developing. At first, it will be hard to rival experienced suppliers, particularly the business pioneers. However, target market is an exploitable niche, and our service is differentiated. Target market individuals will have comparative activity premiums, more disposable income and less effect on cost. We will provide luxurious service with prestige value. Our prices will be out of reach for the majority of overseas travelers. Administration will be valued based upon luxury contender costs and the quality included of our advertising. Suppliers that offer offering luxury services like our own do as such at costs like not ours. We are intensely evaluated in the luxury market. Since we engage luxury and hence a littler business, volume will be restricted. Notwithstanding, we will have the capacity to accrue a higher profit margin. Situation Analysis Abroad visit has been working for a while now. The treks have been generally welcomed, and advertising is presently critical to its proceeded with achievement and future benefit. The fundamental business need is hard adventure trips for the affluent customer. This target market acknowledges upscale facilities, gourmet nourishment, and customized consideration. Overseas tour will meet this market need with a variety of trip offerings. Market Summary Overseas tour possesses good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. Overseas tour will leverage this information to understand better, who is served, their specific needs, and how overseas tour can better connect with them. Market Needs Abroad visit looks to satisfy the accompanying advantages that are imperative to their clients. Selection: A wide determination of diverse hard adventure trips. Accessibility: The client can be found any place as long as they have entry to an air terminal. Client consideration: The supporter will be awed with the level of individual consideration that they get. Competitive prices: Although overseas tour is priced at the top of the market, providing a luxury service with prestige value, overseas tour will be priced competitively with the few other high-end service providers. Market Trends The travel business is encountering an upward development mode. There are a few explanations behind this increment. First, a relative solid household economy throughout the most recent years and the depreciation of cash in different districts has made travel less costly for U.S. occupants. Leisure tours have increased by 3.2% in 2011 and is predicted to grow 2.0% in 2012. Second, the worth of the economy has improved business, which in turn boosted domestic business travel 4.8% in 2011 with an estimated increase of 3.6% in 2012. American Express, according to a report recently published in 2013, most of the senior financial managers in business travel spend money expected to be more than 2012 business travel budgets, or rather than flat. This reflects that most business travel manager on business travel budget can generate returns are optimistic. SWOT Analysis The accompanying SWOT investigation catches the key qualities and shortcomings inside the organization, and portrays the opportunities and dangers confronting oversee visit. Strengths Low client to employee proportion. Excellent staff who are exceptionally prepared and extremely client mindful. High client reliability among rehash clients. A exceptional, top of the line, service offering. Large economies of scale: Usitrip Travel Company will enjoy economies of scale since its products and services are supplied to Chinese large population and at a cheaper price. In addition, the company is a leading travel services provider; hence, it enjoys a large customer base. Weaknesses A difficulty to discover workers who have the vital aptitudes and client driven state of mind. The battle to offer consistently new and energizing excursions while keeping up the level of value that is secured over the long haul from redundant trip offering Having a customer base located throughout the China preventing overseas tour from in-person communication. The company is also facing dropping sales in several of its key markets. This drop in sales could prevent the company from achieving its expansion plans. Opportunities Growing marketplace that has yet to be enough tended to. Growing number of youthful experts with the late dot com blast. The capacity to spread settled administration overhead expenses over an expanding number of offered trips. The company also can buy smaller travel companies, thereby increasing its range of products and market segments. However, markets of travel services are decreasing, and the company should consider introducing branches of its company in different countries. Threats A drop in the economy will influence the travel business. An increment in terrorist acts will chill Americans view of wellbeing when voyaging, whether in the United States or abroad. The doorway of other service suppliers into abroad visits niche. Service Offering The tourists in the team travel like cheap and fine. The pursuit of value of visitors, high-end customized, not too concerned about the price travel later will be more and more. For conventional team, now pay more attention, on the one hand, let visitors enjoy the team cost-effective benefits, on the other hand, will be adding most self-help elements, improve team loose degrees tour schedule. Travel in the United States this year, Usitrip travel company more emphasis on the new destination and new experience. According to the characteristics of the many national parks in the western United States, the foot line, Usitrip travel company development of "the grand canyon national park, in the western United States on foot (primary)" lines, say goodbye to the stereotypical "Yellowstone", outdoor hiking tour guide team is equipped with a professional qualification, a native of local residents, to share experience on foot all the way and the life story, is a picnic lunch arrangement, enjoy hiking spirit. Marketing Strategy Usitrip Travel Company will use several different forms of communication for their marketing strategy. The first effort will revolve around their Internet site. Overseas tours demographic relies heavily on the Internet for information. While Usitrip Travel Company at present has a site, they perceive that resources are obliged to keep up the site and ceaselessly enhance it. The site will continually be tried to discover that it is kept up as one of the top results when decisive words are fed into the search engine. An alternate type of communication is magazine advertising. The publicizing will happen in magazines whose readership has comparative demographics as abroad visit. The magazine advertisements will be used to increase visibility of overseas tour and position it as the top service provider in the overseas travel market. As time progresses, and a loyal customer base is established, Usitrip Travel Company will depend on email pamphlets and post office based mail to the clients that are on the mailing rundown. The pamphlets will impart specials (both excursions and also unique arrangements) to this select group of clients. The end goal of the newsletters is to influence the past clients to join Usitrip Travel Company for another trip with a special deal. The Usitrip travel company will continue to measure its progress relative to competitors and to the growth of the market(s) in which it operates. Though the primary target market has been defined, there may be new possibilities to serve additional segments (Weinstein 97). As the item is defined, and the methodology of differentiation is characterized taking into account competitive strengths, Usitrip Travel Company will be able to determine whether adjustments in positioning are necessary. Access to necessary information concerning the market, such as competitors is available. Nevertheless, it is not free. For the dedications of this project, we feel that it is needless to incur added costs. The marketing procedure will be to grow long haul associations with clients. Usitrip Travel Company will keep a database from which to get critical demographic & psychographic data. As the business gets to be productive, arrangements will be executed to extend the company. There is essentially no restriction to the number and assortment of trips Usitrip Travel Company can provide. The goal is to establish Usitrip Travel Company as an international provider of top of the line overseas travel. The company will also use the marketing mix strategy. This strategy refers to the set of strategies used in the marketing of a product. It comprises of the price, the product, place, and promotion. Together, these strategies help in achieving the marketing plan’s objectives (Ferrell et.al 53). Usitrip Travel Company will price its goods and services in a pocket-friendly manner intended to appeal to the target market. The price of Usitrip travel company products and services such as reservations, travel services, and sightseeing tours will be lowered compared to the prices of competitor companies in the target market. Therefore, the pricing strategy of Usitrip Company will aim at balancing and combining the consumer’s price sensitivity and economic conciseness. In addition, Usitrip Travel Company will be marketed as a leisure provider, which makes it different from other competing brands in the industry. The products and services will be advertised under the slogan “fun and refreshing”. This marketing theme will be used since it appeals to a large number of the target market. The marketing activities of Usitrip travel Company include magazine advertising, web-based promotional programs, and extensive public relations to obtain positive media coverage. In distributing its product and services, the company will assume a selective direct marketing strategy. A selective direct marketing strategy eliminates channel organizations that do not add any value to its brands. This approach will ultimately reduce the overall distribution costs of its product and services; hence ensuring affordability. Works Cited Ferrell, O C, William M. Pride, and G T. M. Hult. Marketing. Mason, Ohio: South-Western, 2013. Print. Weinstein, Art. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. Mumbai: Jaico Publishing, 2007. Print. Read More