New Zealand Heritage Park - Market Targets and Promotional Strategies - Case Study Example

Table of Contents Introduction 2 Market Targets 2 Attendance from overseas visitors 3 Promotional strategies 4 Pricing 5 Conclusion 6 References 7 Introduction New Zealand Heritage Park is a theme park in Auckland New Zealand Park and it is the brainchild of Terry Beckett who realized the New Zealand had tourism potential but lacked the facilities to retain the tourists. In partnership with the Economic Research Association, they planned and carried out researches to ensure tourist satisfaction. They developed a product in which they hoped would do well to attract not only visitors but also tourist participation. The park was to offer services like nature world, agriworld and culture world. Natureworld was to offer the unique displays of local plants and animals that described the country. Agriworld was to offer displays of horticulture, farming, and forestry features that were dominant in New Zealand. Cultureworld was to show the culture and heritage of the people through songs and dances. The tourists were also encouraged to participate through activities such as woodcarving, gold panning, and weaving. Market Targets The first target of the park for the first eight months was the local people of New Zealand but the situation was expected to change with the vigorous campaign in the U.S., Australia, Japan, and other countries. Australian tourists formed 51 percent of the tourists from overseas; America formed 19 percent, Japan 10 percent while all other sources provided 20 percent. This product had to be product oriented, market oriented, sales oriented, and production oriented. New Zealand Heritage Park was production oriented because they did not focus on the needs on the tourists but the focused on mass production. They aimed at maximizing on the large number of tourists who would visit the park. Terry Beckett was also product oriented in that he believed he had developed a better-quality product that would ensure that any tourist who would visit there would find justification for his money. New Zealand Heritage Park conceptualization was not sales oriented. Though marketing was done, there were slow visits by the tourists. Especially the locals of Auckland also regarded the entrance fee as very high. Sales orientation faced the risk of the product rejection by the local tourists because they felt that their economic status was not considered in determining the entrance fee. Terry Beckett and his consultants put were market oriented as they had carried out research about the needs that had to be satisfied. This was evident as they developed an agriworld, cultureworld and natureworld. They felt that the needs of all age groups, gender, and social status were to be satisfied. With all those orientation evaluation, Terry Beckett was justified to reach his intended target group of locals and international tourists. Attendance from overseas visitors New Zealand Heritage Park experienced slow visits from overseas visitors due to various factors that largely influenced this behavior. This means that the promotion was highly distorted and did not reach the intended market as the target group. The four major marketing concepts each explains the different influences over product, price, promotion and production. Market orientation that suggests that the tourist is the king was duly followed in some target markets. Australia did not have a local facility that provided the kind of satisfaction that Heritage Park provided. America already had Disneyland and there was little more satisfaction that Heritage Park would provide. The America market therefore would find almost the same satisfaction in their homeland with the same costs. Product orientation was also put to test because such facilities in Heritage Park were available in the tourists’ homeland though in different means and places but the costs were likely to be less. This is perfectly explained by the American market that provided 19 percent of the tourists. Production orientation, which was focusing on minimizing costs of the Park by maximizing numbers of the tourists, did not work because the promotion carried out and the advertising was enough but still there was no segmented market. This means that some of the marketed public disregarded the information. This resources used for this market would have been used in a more productive potential market. William G., D’Amico M., (1993). A market like Australia had more potential than the other sources that contributed 20 percent when combined. Sales orientation had a negative effect because the same price was offered to all classes of people instead of enticing different social classes with different packages. The product that was being offered had been developed but it seemed to suit some people than others that meant that it faced some resistance to acceptance. The American and Australian markets were the main contributors to Heritage Park revenues. The other international source market felt that the solution provided by Heritage Park did not solve their problem. The slow attendance by the international tourists can best be summarized as an interference with the market mix by lack of market segmentation. The four market concepts interfered with production, product, promotion and price. Promotional strategies The promotion that Beckett had carried out had achieved its three main objectives; promote the country as a tourist destination, promote Auckland as a favorable stopover for tourists and promote NZHP as an attraction to tourists. To attract more European tourists, NZHP could carry out a product differentiation. This is meant to inform the visitors about the different features that the Park had in contrast to other Parks. This would include the culture world that encourages visitor participation especially in song and dances. Swarbrooke J. & Horner S. (2007).This would add value to its product in markets like the U.S. NZHP should also carry out production differentiation to ensure that they reach the right target group. This would require market segmentation in order to suit the different markets. Considering the U.S and Japan population, they greater potential than the Australian population. They therefore should carry out different strategies when approaching the two different markets. They further vary in their climatic conditions meaning that the visitors do not have similar times for recreation. Price differentiation should give different groups different price packs so that all the market segments have a chance to enjoy NZHP. Sales differentiation should be conducted to analyze the consumer behavior so that the Park can offer the different packages according to the needs of the consumer. Pender L. & Sharpley R. (2005).The consumer should find the solution to their problem and they should enjoy the facilities to their satisfaction. Market differentiation is supposed to give an analysis to strategize for market positioning. The promotion and advertising to reach the international market should be an above the line advertising. This will be to embrace the modern technology and easy access to all the target groups. Through internet and international media, the information disseminated will surely reach the target group. Pricing Terry Beckett was justified to charge the high rates because many tourist attraction sites charged comparable rates and yet they offered one fourth of the time. Woodside G. &Martin D. (2007). Beckett had reduced the rates lower and more competitive prices. He had standardized his prices to compete with other tourist attraction sites in the area. The complaints from the residents were totally out of place because they paid comparable rates to the other facilities for much lesser time. The product and services that NZHP offered were better and the fee was justified. Conclusion NZHP had their market mix proportional and thus some important factors were greatly not considered. The pricing was justified and very considerate to all the consumers. The promotion failed due to a wrong strategy employed by Beckett. Glaesser D., (2006). Though the intended objectives were met, the sales did not reflect that. Promotion is meant to drive sales and thus achieving results. Promotion informs the target group of the available products. Beckett should try to use a segmented market and use other promotional methods to get more tourists visiting this facility. Recovery may be slow but it is expected and an analysis should b carried out to ensure it is effective and covers all areas of weakness. The recovery strategy should consider the country’s economic model when implementing it. This gives a benchmark for analysis and further investigation. This will ensure that the groups with highest potential are reached and well informed. The product developed by Beckett had potential and had the ability to satisfy the consumer. References Cooper, C. & Michael, C., 2005. Oceania: a tourism handbook. Auckland: Channel View Publications Glaesser, D.2006. Crisis management in the tourism industry. London: Butterworth-Heinemann Pender L. & Sharpley R. 2005.The management of tourism. New York: SAGE. New Zealand Heritage Park. 2009. Available at: http://www.heritagepark.co.nz/ [accessed 4th March 2010] Swarbrooke, J. & Horner S. 2007. Consumer behaviour in tourism, 2nd Ed. London: Butterworth-Heinemann Tourism New Zealand. 2010. About the tourism Industry. Available at: http://www.tourismnewzealand.com/delivering-the-promise/about-the-tourism-industry [accessed 4th March 2010] William G., D’Amico M., 1993. Marketing, 4th Ed. Auckland: West Pub. Co. Woodside G. &Martin D. 2007. Tourism management: analysis, behaviour and strategy. Auckland: CABI Publishing Read More