Good Strategy And Bad Strategy - Case Study Example

Internet Marketing Planning Project Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Introduction 2 1. Situational analysis 3 2. E marketing strategic planning 5 Segmentation and target market 5 Differentiation strategy 6 Positioning strategies 8 3. Objectives 10 4. E-marketing strategies 10 Product strategies 10 Pricing strategies 11 Distribution strategies 12 Communication strategies 12 Relationship management strategies 13 5. Budget 14 6. Evaluation plan 14 Conclusion 16 References 17 Introduction Due to technological developments, many organizations are considering to use online marketing so that they can reach out wider market scope. Traditionally, the marketing function was conducted using the traditional ways like Radios and TVs but in the current global market, most of the business operations have been automated and this means that even marketing function has also been automated (Kerin 2012). This has led to internet marketing because it is cheap and can reach out wider market scope as compared to traditional ways of doing things. In this report therefore, the internet marketing concept will be discussed in relation to Checkers Resort and conference center which is among the leading resorts in Sydney. The internal and external business environment will be assessed and evaluated to determine the factors influencing the business operations. 1. Situational analysis Checkers Resort and conference center is a resort which is located 25 kilometers from the Sydney CBD center and it is surrounded by serene natural bush land which makes the resort attractive to tourists. The resort offers variety of services which meet the needs of the tourists. Both domestic and international tourists visit the resort for various activities like conferences and visiting recreational facilities. The resort provides variety of services like rooms which range from Spa suite to Suite room depending on the needs of the customers who visit the resort (Checkers Resort and conference center 2015). The resort also provides accommodation facilities like deluxe room to accommodate the tourists. The other free services and facilities which are provided include free Gym and free parking. In addition, various functions can be held at the resort. These functions include conferences and wedding as well as swimming facilities. This means that the resort provides variety of services to meet the diversified needs of the customers. The other internal factors that influence the functions of the resort include the organizational culture. The organizational culture applied in the organization ensures that all the workforce work together to ensure that the needs of the customers are met effectively. The democratic style of leadership at the resort also motivates the employees to offer their best skills to achieve best results considering the needs of the customers (Checkers Resort and conference center 2015). In this effect, the internal environment has influenced the business operations in that there is teamwork and that is why the facility has managed to create competitive advantage. On the other hand, the external factors that influence the business operations include the political systems. For instance, the standard charges for the accommodation should follow the policies formulated by the government. In addition, economic changes influence the operations because when there is economic stability the management has to renovate all facilities to meet the increasing demand of the customers. In addition, the social factors influence the way people live and this affects the design of the rooms for the visitors who have their own culture. Further, technological developments impact the organization in that the organization should use the technology which is most appropriate to meet the communication needs of the customers (Checkers Resort and conference center 2015). For instance due to increased use of the social sites, the marketing function of the organization is done using the social sites like Twitter. In addition, the competitors like Del Rio Riverside resort impact the operations of the organization. The other competitor includes Riverside Oaks Golf Resort. The competitors influence the pricing decisions and quality of services which are provided so that the customers can develop confidence in the resort (Checkers Resort and conference center 2015). For instance, the full rate for Suite Room at Checkers Resort and conference center is $255 while at Del Rio Riverside Resort the price might be high meaning that competitive pricing strategy has been influenced due to competition. The table below indicates the SWOT analysis of the organisation; Strengths Good reputation Effective pricing Competent workforce Variety of services and facilities Financial stability Weaknesses Ineffective market segmentation Lack of effective training and development Opportunities Access to global tourism industry Technological developments Increase in global stability Increasing in global population providing market Threats Competition from competitors like Del Rio Riverside Resort Extinction of indigenous tourist sites and features 2. E marketing strategic planning Segmentation and target market The target market for the organization is the domestic and international customers. The domestic customers include the customers within Australia while the international customers include the customers outside Australia. The segmentation criterion that will be used to identify the different characteristics of the customers is demographic criteria. This means that there will be male and female market segments (Kotler & Keller 2012). In addition, there will be market segment of young people aged below 25 years while the other market segment is for customers aged between 26 years and above. This is because the needs of each market segment are different hence the facilities will be developed according to the needs of the target market. In addition, the market will be segmented according to the geographical location. This means that there will be domestic customers and international customers. The domestic customers will be charged less as compared to international customers with the aim of encouraging domestic tourism (Kotler & Keller 2012). For instance, the suite room can cost domestic customers $240 and $255 for the international customers and this will help to benefit the domestic customers. Concerning the psychographics segmentation, there will be different social class facilities. This is because the customers visiting the resort have different needs depending on their financial capability. I this effect, there will be high and middle social class facilities and the customers can pay for the facilities that they can afford. For instance, there are suite rooms and family rooms and the customers will select the accommodation facility that is best fit for their services. The aim is to meet the diversified needs of the customers. In addition, the segmentation of the market will take the dimension of the behavior of the customers (Goldstein & Lee 2005). This means that there will be repeat and new customers who visit the resort. The repeat customers will be provided with discounts as a way of keeping the loyalty among the customers. The new customers will be provided with membership cards as a way of trying to maintain them. Differentiation strategy The differentiation strategy that will be used to differentiate the organization from those of the competitors is using the cost leadership strategy. The aim of the organization is to make profit by attracting and retaining customers. This can be achieved when the organisation has appropriate measures to ensure that the financial needs of the customers are met by pricing the facilities and services provided effectively (Goldstein & Lee 2005). The activities which do not add value to the organisation will be eliminated and add processes that only add value to the services which are provided. For instance, there will be free parking for the customers and this aims to satisfy the customers so that they can return to the organisation. In addition, the organisation will be different from the competitors in terms of the services which are provided. The services that will be provided by the resort include transportation and wedding facilities. This means that the customers can visit the facility for vocation and can also do their wedding in the facility and be provided with transportation. Conferencing facilities will accommodate large number of people hence big conferences can be conducted in the facility (Goldstein & Lee 2005). Customer engagement is another way in which the organisation will create competitive advantage because the customer feedback is taken seriously and this aims to meet the specific needs of the customers thus creating competitive advantage for the organisation. Moreover, the differentiation of the organisation will be attained through different licenses. In the first place, the organisation will be the only one to be licensed to use the brand name Checkers Resort and Conference center. The brand image will help to differentiate the organisation from those of the competitors (Goldstein & Lee 2005). In addition, the copyright should not be copied by the competitors since this will affect the competitive advantage of the organisation. This means that the technology and design of the resort should not be copied by other competitors since it’s the intellectual property of the organisation to use the technology alone. In this effect, the competitive advantage of the organisation will be through cost leadership and quality of services which are provided. The services will be cost of effective considering the different market segments so that each customer will be satisfied with the services which are provided. For instance, discriminative pricing strategy will be applied depending on the financial strengths of the customers. In addition, the response from the customers will be taken seriously so that appropriate measures will be taken to ensure that the customer needs have been met in terms of the design of the accommodation facilities and other facilities like the Gym (Goldfarb & Tucker 2011). Furthermore, the Porter’s five forces model will be applied to gain the competitive advantage. Despite the development of tourism industry, there are policies which should be met by an organization before entering the industry and this regulates the entrants into the industry. However, there are substitute services which are provided by hotels and motels and this can provide stiff competition to the resort if appropriate strategies like focus strategy are not applied. The bargaining power of the organisation is relatively due to many customers and few resorts which offer the same facilities and services for tourism (Goldfarb & Tucker 2011). This means that the suppliers will have relatively low bargaining power thus they cannot influence the pricing strategies of the organisation. The anti-competitive prices in Australia ensure healthy competition meaning that there is no rivalry competition which can otherwise affect the reputation of the tourism industry. In this effect, the company will have the competitive advantage since there are fair trade practices in the tourism industry thus the organisation will be able to create and implement strategies to achieve competitive advantage by meeting the needs of the customers. Positioning strategies There are various positioning strategies that will be used to position the organization in the market. The first positioning strategy that will be applied is through differentiation strategy. Like discussed above, the differentiation strategy will help to differentiate the services and facilities which are provided by the facility. The facilities will be differentiated in terms of cost and design (Goldfarb & Tucker 2011). For instance, there will be variety of accommodation rooms like suite and family rooms to meet the diversified needs of the customers. In addition, the accommodation facilities will be many so that they can accommodate many customers at the same time. This will help to improve the reputation of the organisation in the tourism industry since the customers know the facility where they can be accommodated all of them. In addition, pricing strategy will also help to position the organization effectively in the tourism industry. The pricing strategies will be different in each market segment depending on the financial capability of the market segment. For instance, the domestic customers will benefit most because they will pay less for the services which are provided and use of the facilities as compared to international customers (De & Meyer 2009). This will help to improve the satisfaction of the customers and in the process there will be return customers to the organisation and this will help to improve the competitive advantage of the organisation. The customers will develop loyalty to the organisation leading to repeat customers because they are satisfied with the services which are provided. In addition, the focus strategy will also be applied to increase the positioning of the organisation in the tourism industry. Through focus strategy, the various market segments will be able to considered when decision making. The strategies which are formulated focus on each market segment so that their diversified needs can be met effectively (De & Meyer 2009). For instance, the focus on domestic market will lead to application of strategies like TV advertisement as well as the newspapers. However, when the focus is on the international market segment, the internet marketing strategies like using the social media like Twitter and Facebook will be used to market the facility and the services which are provided. This will help to improve the reputation of the organisation thus influencing its positioning in the market. 3. Objectives The following are the objectives which should be achieved through e marketing within 12 months 2 years. i. To increase the online market share of the company by 2% in the next two years ii. To increase the online revenue of the organisation by 3% in the next two years iii. To improve the position of the organisation to top 5 resorts in Sydney in the next two years by creating online awareness 4. E-marketing strategies Product strategies There are various product strategies that can be applied to increase the sales of the organisation. The first product strategy is through product development. The services which are provided by the organisation should be developed to meet the developing needs of the customer. This is because there are various needs of the customers and it is important to develop the services to attract more customers (De & Meyer 2009). For instance, the management should consider developing a boat riding facility so that the lovers of boat riding will also be enticed to visit the organisation. In this way, the resort will be able to attract and retain more customers leading to increase of the market share and positioning of the facility. In addition, the organisation will achieve the above objectives by diversifying its operations. This means that the management should consider the different needs of the customers especially the domestic customers and develop new facilities in new places (Hill & Gareth 2012). This will help to save the travelling expenses of the customers and also will ensure that the resort is easily accessible by the loyal customers. This will help to improve the positioning of the facility hence it will increase its sales. Pricing strategies The first pricing strategy that will be applied is the competitive pricing strategy. This is the pricing strategy whereby the products and services provided by the organisation are priced slightly lower than those of the competitors so that the organisation will be regarded by the customers as the organisation considering the value of the customers (Hill & Gareth 2012). Through competitive pricing strategy, the organisation will be able to attract more customers and this will help to increase the market share since it will have competitive advantage. In addition, discount pricing strategy is another pricing strategy that will be applied to improve the performance of the organization. This means that there are various factors that can be considered when pricing for the services despite the standard prices set. For instance, loyal customers are provided with discounts since they have been loyal to the organisation. In addition, new customers who come in large numbers will also be given 5% discount for the overall cost of their stay at the first (Hill & Gareth 2012). These discounts help to improve the positioning of the organisation in the market since the customers’ financial needs are met and this will help to increase the sales as well as market share because of the ability to attract and retain customers. Distribution strategies The facility is located in a location where it can be easily accessed by the customers. This is the first distribution strategy that will be applied to ensure that the services and facilities are accessible by the customers and this will improve their convenience. For instance, the organisation is located near to the city so that it will be easy to access the facility by the customers (Mckeown 2012). This will also improve security issues for the guests because when there is an emergency the facility can be easily accessed by the security personnel. In this way, the facility is easily accessed. In addition, the facility will have difference branches within Sydney city so that there will be no congestion in one facility. The services which can be relocated like accommodation will also be moved to another place which can be easily accessed by the customers. This will not only ensure security but also help the customers to access the facilities easily (Mckeown 2012). In addition, the facilities should be located near the tourist attraction sites so that the customers visiting the tourist sites will be able to find easy accommodation. This will help to improve the number of customers who are served by the organisation hence it will meet its goals and objectives. Communication strategies The first and foremost communication strategy that will be applied is internet marketing. This is the marketing strategy whereby the facility will be marketed online to ensure that they are aware of the organisation and the services provided. This is because internet marketing helps to create awareness of the organisation to wider market scope and it is cost effective (Mckeown 2012). For instance, the social sites which will be used to market the organisation and its services include Facebook and Twitter. There are many customers who can access the internet hence they will be aware of the organisation and its services which are provided. In addition, the organisation will be marketed through the website of the organisation. All the information about the organisation and its services which are provided will be available in the website of the company. For instance, the customers will be able to assess the services available and the booking can also be made online. This will help to save tie customers take to book for the facilities hence they will be satisfied and b e retained in the organisation (Rumelt 2011). The customers can also make online enquiry to the organisation and make appropriate decisions. This helps to attract and retain more customers thus the objectives will be achieved. Relationship management strategies The first relationship strategy that will be applied is the loyalty cards. The loyalty cards will be issued to the customers indicating that they are the members of the organisation (Rumelt 2011). The loyalty cards will help to provide discounts to the regular customers and this will help to improve the value of the customers. The aim of giving out loyalty cards is to attract and retain customers as they will be considered potential members of the organization. In addition, the other relationship management strategy that will be applied is the customer engagement. The important stakeholders like the customers and the employees will be included in strategy formulation so that they can take part in implementing the strategies (Rumelt 2011). This is important because it will be easy to implement the change and the strategies developed jointly will help to meet the specific needs of the customers. In this effect, the organisation will be able to develop good relationship with the customers hence it will be possible to attract and retain customers thus the above objectives will be achieved effectively. 5. Budget The following is the estimated budget that will help to achieve the above identified objectives; Objectives Cost Activities To increase the online market share of the company by 2% in the next two years $1500 Online marketing Creating corporate website Online data processing To increase online revenue by 3% in the next three years $3000 Online marketing Providing sufficient information Security and confidentiality of online services Improve online performance of the organisation to top five organizations in Sydney $1500 Collecting feedback from the customers Introduce online booking 6. Evaluation plan In order to determine the achievement of the first objective of increasing the online market share, the marketing manger will have to assess the number of customers who make the online booking. This is important because it will help to reflect on the customers who are able to access the online information about the organisation and the services which are provided (Kerin 2012). In addition, the customer feedback will also reflect if there is an increase in the number of customers using the online marketing. In this effect, if there is an increase in the number of customers who use online information, then it means that the online objective of increasing the market share has been achieved. The other activity that will be used to assess the effectiveness of the competitive pricing strategy is to compare the number of customers booking for the facilities after implementing the competitive pricing strategy. In addition, the comparison of the number of customers making the repeat purchase will also help to indicate if the discount based pricing strategy is effective. In addition, opening the new branches for the organisation will help to serve more customers (Kerin 2012). If there is an increase in the number of customers visiting the branches of the organisation then the objectives have been achieved effectively. In addition, the sales of the company after implementing the e marketing strategy will also help to reflect on the effectiveness of the strategies which have been developed implying that the objectives have been achieved effectively. Moreover, the product development strategy will be assessed if it is effective by focusing on the number of customers who use the new services and facilities. When there is an increase in the number of customers using the new developed products, then the product development strategy was effective the e marketing objectives. This is because through product and service development and marketed online, the customers will be aware of the new services like boat riding and will make the decision of visiting the organization (Kotler & Keller 2012). In this effect, the objective of increasing the sales through e marketing will be achieved effectively. In addition, the e marketing communication strategy will be assessed by assessing the feedback of the customers. This is because when accessing the online information about the organisation, the customers are requested to provide their feedback. This is important because it will help to assess the number of customers who access the information online hence they make the decision of visiting the organisation and this will help to improve the performance of the organisation (Kotler & Keller 2012). The stakeholders will also engaged in decision making so that they can contribute to implementing and using the developed facilities. For instance, the customer feedback will help to engage the customers while the employees will be engaged in developing the strategies so that they can be committed to implement the policies. This will help to implement the customer feedback effectively. Conclusion E-marketing strategy has been used by many organizations with the aim of reaching out many customers who use the internet frequently. Checkers Resort and conference center provides variety of services in the tourism industry like accommodation and holding conferences. The organisation has been performing well but it has not managed to exploit the e marketing. The segmentation criteria used include demographic, psychographics and geographic location. The cost leadership strategy and product development help to differentiate and position the organisation effectively in the market. The e marketing strategies that can be applied include competitive pricing, online marketing, loyalty cards and online product development. References Checkers Resort and conference center 2015, About Us, retrieved on 30th May 2015 from http://www.checkers.com.au/ De, W & Meyer, S 2009, Strategy Process, Content and Context, Thomson Learning. Goldstein, D & Lee, Y 2005, "The rise of right-time marketing". The Journal of Database Marketing & Customer Strategy Management Vol. 12, No. 3, pp. 212–225. Goldfarb, A & Tucker, C., E 2011, "Privacy Regulation and Online Advertising". Management Science Vol. 57, No. 1, pp. 57–71. Hill, C. W & Gareth, R. J 2012, Strategic Management Theory: An Integrated Approach, Cengage Learning. Mckeown, M 2012, The Strategy Book, FT Prentice Hall. Kerin, R 2012, Marketing: The Core. McGaw-Hill Ryerson. Kotler, P & Keller, L. K 2012, Marketing Management 14e. Pearson Education Limited. Rumelt, R. P 2011, Good Strategy/Bad Strategy. Crown Business. Read More