Preliminary Marketing Report - Amazing Ideas Ltd - Case Study Example

AMAZING IDEAS COMPANY LTD TOPIC: Preliminary Marketing Report on the Viability of Tourism industry in Australia STUDENT NAME: ID NUMBER: EXECUTIVE SUMMARY The preliminary marketing report provides Amazing Ideas Ltd with an analysis of the current market in the tourism industry and a general overview prior to launching the new idea. The report will give an outline of the current market situation along with strategies for the future. It looks at identifying the immediate competitors in the industry and defines in details the tourism industry. In the report, there is also an analysis of the macro environments which includes political and legal environment, social cultural, economic and technological environments. It also reviews the way in which targeted consumers behave towards their decision making process (Wana, 2013, p. 36). After the report has been assessed, insights and further marketing research can be undertaken to ensure that the service has been instigated well. It also contains recommendations on how Amazing Ideas will operate in order to have a competitive advantage. For instance, position their services and products as a high priced and high quality business. The report contains the concept of the marketing mix and explains how Amazing Ideas Company could apply the concept of the 4P’s. It also analyses the Macro- environments which are bound to affect the company both positively and negatively (Bennett, Strydom, 2001, p. 95). Table of Contents Table of Contents 3 INTRODUCTION/OVERVIEW Introduction to the report The report analyzes the current market situation of the Tourism industry in Australia. It undertakes to explain the viability of the products and services in achieving the profit maximization function as well as improving the situation of Tourism industry in the country. To succeed in a competitive environment, it is of a very big importance to tailor ones products and services to the needs and wants of the customers. Amazing Ideas Company wishes to conduct a substantial survey to ensure that it comes with the best products and services aimed at attracting tourists in the country. Tourists hunt for experiences even more than the specific products and services offered to them when they visit the country. This calls for the provision of a matched range of products and services that will together offer specific experiences aspired by the visiting tourists (Hollebeek, Juric, 2013, p. 105-114). The report contains recommendations on how the company should enter in the tourism market and ensure economic and commercial viability is achieved. It gives out the procedures required before the launch of the new products and even after launching the products and services. The report contains the initial analysis of the current Australian market. For instance, does the Government of Australia offer an enabling environment for the tourism sector? The report contains the current market analysis which acts as an initial glimpse into the prospect or the likelihood of the success of the new business. The report also contains the recommendations to be undertaken before and after the launch so as to increase the viability of the business. It analyses the current market opportunities, how to implement the Marketing Management program effectively, and recommends the segment to be considered first at the time actual investing. The report contains the concept of the marketing mix and explains how Amazing Ideas Company could apply the concept of the 4P’s. It also analyses the Macro- environments which are bound to affect the company both positively and negatively (Bennett, strydown, 2001, p. 140). The preliminary marketing report is important for the company because it assists in studying the current market trends and strategies and recommends the best ways of marketing and promoting its products. Industry definition Tourism is one of the major wealth generating industries in the Australian economy. During the financial year 2010/12, 2.5% of Australia’s GDP came from the Tourism sector. Today, Tourism contributes $94.8 million a day to the Australian economy (Ashworth, p. 18-36). Domestic tourism is a very crucial component of the entire tourism sector. Steps should be undertaken to increase the number of tourists in the country. Companies, individuals, Nongovernmental organizations and the Government itself should engage themselves in starting businesses and other inventions that will increase the level of tourism in the country. Amazing Ideas Company plans to invest in the tourism industry and assist in the growth of the economy towards stabilizing the Australian dollar (Tourism, 2020). Tourism is a strategic asset for any nation and Amazing Ideas Company wishes to invest in the industry. Amazing Ideas Ltd is a company which has been formed by a group of students and they hope to invest in the Tourism industry. It is recommended that Amazing Ideas Company start a resort club for Tourists in the Coastal City of Melbourne and the name the club as ‘Amazing Ideas Club Resort’. The resort will be a self contained establishment which will provide most of the vacationer’s wants such as food, drinks, accommodation, sports and entertainment. It will also own several resort guest rooms for tourists. It will serve the role of a resting place for the tourists who visit the city in pursuit of adventure. It is a place where they will rest during the day or even at night and it will also be open for them to hold functions (Ashworth, Goodall, 2013, p. 18-36). ANALYSIS OF MARKETING OPPORTUNITIES Competitor overview Understanding the competitors in the field which Amazing Ideas plans to invest in is very much important because it will ensure survival of the business. In the industry, the main competitors are: Developed big hotels, other resort clubs, lodging and accommodation clubs, big pubs within the coastal region of Melbourne city (Wana, 2013, p.221-22).To ensure that the Resort Club survives within the region, certain special facilities should be introduced. For, example, use of the latest technologies, innovative room design, use of the modern technological recreation facilities, high quality customer service, and experienced human resource personnel among others. The image of the club should be portrayed as a leader in service delivery, technology and high quality foods and drinks especially those not available within the region( Hollebeek, Juric, 2013, p105-114). Amazing ideas resort club should conduct an examination within the region to determine what its competitors offer in the market before beginning operations (Wana, 2013, p.221-22). Once they are satisfied with the kind of hospitality offered, they surely come back and even inform others. This will act as stepping stone for the new resort club. Macro-environmental analysis This analyses the major external factors which are not controllable by the business but influence decision making and affect the general performance of the business. Some of the factors which may affect Amazing Ideas Club Resort in the tourism industry are: competitors, government regulations, extreme weather conditions, cultural tastes and preferences among others. The following are the categories of macro-environment (Wana, 2013, p.221-22). Political-Legal environment Generally, the hotel and tourism industry is affected by the following factors: taxation systems, government grants and other incentives, legislation and regulations, other government policies on say tourism and education, and most importantly political stability factor, strikes and other civil wars. They determine in what degree the government can affect business operations. However, in certain conditions, this may not be the case and the government may pass a law banning certain nations from visiting the country. This may lead to reduced sales ( Buckley, Shakeela, 2013, p. 223-228). At other times, insecurity and cases of terror attacks may hinder terrorists from visiting the country. These factors affect the business and thus Amazing Ideas Club Resort should have in place measures to deal with such fluctuations. It should consider whether the place is secure and that the Government of Australia creates an enabling environment for businesses to operate. Economic factors This includes factors like the state of the economy, currency exchange rates, globalization, prices and inflation. The economy of Australia is expected to grow by 2.24% to 3.25% this year (2014) but inflation rate is expected to hit 3%.These facts are provided by the Reserve Bank (RBA) and is believed to have an impact in the prices of products (Tourism 2020 website).The value of the Australian Dollar has gone down and this is expected to affect the tourism sector. Socio-cultural factors This includes factors like demographic changes, social issues like environmental concerns, and lifestyle developments among others. Most tourists consider those areas where they are comfortable and enjoy life o the fullest. For instance, environmental pollution is a concern to most people and they will consider areas with minimal pollution of the environment (Wana, 2013, p 37). Technological factors These factors include the current operational technologies like the internet, product technologies among others. Technology delivers savings and improvements in the tourism business and thus managers and directors should keep an eye on the current trends to apply them. It is thus recommended that Amazing Ideas consider installing the most modern technologies. For instance, an attractive website where potential customer could assess the management system and the services offered (Wana, 2013, p. 40). Consumer behavior Analysis This section attempts to explain and understand the consumer decision making. For instance, how individual emotions affect buying behavior. The foundation of marketing theory is the fulfillment of the consumer. The theory of consumer behavior analysis is divided into the following: Consumer motivation, consumer typologies, and consumer purchasing process (Hollebeek, 2013, p. 105-114). Amazing Ideas Club Resort should first consider customer patterns, their dislike and likes, should have a perfect picture of their consumers for them to remain competitive. Marketing budgets, motivation factors, attending consumer studies will help them to motivate consumers. It is recommended that Amazing ideas follows the concept of Maslow’s hierarchy of needs which aims at satisfying and motivating consumers. Physiological needs such as high quality foods, drinks and sleep should be considered first, followed by safety and security factors, love, affection and belonging, self esteem and status and lastly self actualization needs. Amazing Ideas should follow such order so as to attract and keep customers SELECTION OF TARGET MARKET It is recommended that Resort Club should strategizes on developing a high yielding consumer segment and target those tourists who spend more and do much on their trips to Australia ( Ashworth, Goodall, 2013, p 89-99). Both domestic and oversees tourists within the region prefer to spend high standard life when they visit the coastal region and this should be applied as a target market thus Amazing Ideas should invest in a variety of businesses within the same area. For example, a restaurant, resort guest rooms, conference rooms among others. To achieve its objectives, Amazing Ideas should target a large number of tourists who visit the country. Justification for choice of segmentation base There are a number of market segmentation bases which any business could efficiently apply to construct market segments. These ways are: geographic, behavioral, demographic, and psychographic and benefits sought ( Moutinho, 2011, p. 200-219). By using some or all of these bases, Amazing Ideas can create market segments which then will be evaluated in order to select appropriate target markets. It is recommended that Amazing Ideas use the geographic base which targets all tourists in the regions and towns within the coastal city of Melbourne where it is located. In addition, demographic base is also applicable whereby market targets will be based on characteristics like age, marital status, education, religion and occupation and so on. Psychographic base may also be considered basing factors like lifestyles, social class, activities and interests among others. Target markets selection The assessment and selection of target markets is a major cornerstone of marketing. Virtually, all successful firms or businesses have defined their target markets (Thomas, Wood, 2014, p. 39-48). Amazing Ideas should define their target market based on the selected segmentation base and this will help them focus on marketing efforts. In marketing, the first step is to select the target market so as to define its marketing roles and plans. The proposed market targets are: Restaurant It is recommended that Amazing Ideas start with a relatively large restaurant offering food and drinks that are not offered within the region. This will act as a stepping stone towards achieving its dreams of increasing its market share. Amazing Ideas should prioritize on high quality foods, offering the best customer service, application of modern technology among other factors Resort guests rooms A lot of money may be required but starting at a certain level may be realistic. The booming tourist attraction within the area with much incredible growth in the sector is an assurance of success in the market. Conference center It is recommended that one big room be set aside for the tourist visitors to hold their meetings and conferences. High quality tables, chairs, ample space, free flow of air among other factors should be considered. Proposed positioning strategy This involves creating a brand to position a business in the marketplace. Amazing ideas should embark on certain factors which will communicate the essential benefits of its intended business to potential customers. Where to sell the product, how to make it, the prices of the product are some of the aspects which convey the business image to the market place. For instance, it is recommended that Amazing Ideas use high price strategy whereby it prices its products at relatively high prices to create a perceived value. High prices perceive an image of high quality and standard services (Brander, p. 71-48). DESIGNING MARKETING STRATEGIES A marketing strategy helps a business to focus on the targeted people by the marketing objective. Amazing Ideas should develop a strategy for it to be capable of continuous success in the tourism industry and maintain a competitive advantage. The marketing strategy serves the following objectives. Helps when searching for innovative ways of starting operations and improving its operations Helps in seeking new opportunities Develops ways of increasing the firm’s competitive strength Helps in dealing with threatening external developments Motivating individuals within the company (Ashworth, Goodall, 2013, p. 89). Proposed marketing objective The proposed marketing strategy objective is to communicate and depict the unique set of products and services that are offered within the resort club. Amazing Ideas should direct their focus on issues of quality and value for the money. Marketing strategies allows communication of brand values, develops close working relationships with customers and other stakeholders and identifies the needs of needs effectively ( Devanish, 2011, p. 143). The marketing mix (the 4Ps) The right place at the right time and at the right/fair price. For the Resort Guest rooms, they should be designed to be in line with the current technology, for instance installation of Wi-Fi network, TV screens for guests and so on. Price that markets the value of the room and its facilities should be set, and all this should be done at the right time especially when demand is high ( Bennett, Strydom, 2002, p. 53-64). The 4Ps is the best way of defining the marketing mix. It was first initiated by E J McCarthy in 1960. The 4Ps are: 1. Product Amazing Ideas should ask the following questions before designing the guest rooms and installing the facilities. What does the customer need for satisfaction of needs and wants? What features does the customer want to be satisfied? How are the services branded? How are the services and products branded from competitors? 2. Place The following questions are relevant Where do customers find the location of the resort club? Where to get company brochure?. What do the competitors do and how can you learn from that and differentiate ( Bennett, Strydom, 2001, p. 194)? 3. Price Before setting the prices of products and services, Amazing Ideas Company should consider the following questions What is the value of the service or product offered? How will prices compare with that of the competitors? Is the customer price sensitive? Can a small change in prices affect the market share? 4. Promotion The following questions should be considered. How can you get your marketing message to the desired customer? Will you reach the customers through the press, on TV, website or radio or even billboards? When is the most convenient time to promote? How do competitors undertake their promotions (Moutinho, 2011, p. 176)? Justification The PEST analysis is a very important tool in understanding market expansion or decline in terms of position, direction and potential of a business. The Choice of the recommended target market is justified by the PEST analysis in the following ways (Wana, 2013, p.221-22. Political- Legal environment Factors considered in the area are: government legislation and policies, wars and conflicts, pressure from international groups, pressure groups, among other environmental issues. Tourism promotes the Economy of Australia thus the government only passes polices and legislations aimed at attracting more tourists. This ensures that the target market is a success due to the ready market. Political stability from the government provides an enabling environment for Amazing Ideas to operate efficiently ( Devalish, 2011, P. 4). Social environment This includes factors like lifestyle trends, ethnic and religious factors, ethical issues, consumer attitudes and opinions amongst others. The target market is justified by the high quality standards set for the design of the Resort guest rooms. Generally, tourists prefer high quality services irrespective of prices. There is no religion discrimination in Amazing Ideas Company ( Wana, 2013, p. 36). Economic environment The economic environment covers factors like inflation rates, prices, currency exchange rates, and the state of the economy among others. Many guests from oversees spend their money without considering the economic situation or even rates of inflation. Prices of products and services could be increased and demand still remains unaffected. Technological environment Amazing Ideas Company is based on the efficient application of the desired technological advancements in the tourism industry. For instance, installation of Wi-Fi networks, among other applications ( Devalish, 2011, p.4). CONCLUSION It can be seen very clear that Amazing Ideas Company should focus much on market differentiation and segmentation for them to remain at the cutting edge. In a competitive market, the company must discover and target different market segments and this ensures competitive advantage within the industry. Differences between companies are evidenced with respect to product, price, place and promotion. From the report, it has been recommended that Amazing Ideas relies mostly on value and quality. In addition, it must be sensitive to the PEST analysis which covers the political, economic, social-cultural and technological environments. With respect to the marketing mix, quality is the most key factor in general. Amazing Ideas has also been recommended to apply the concept of Maslow’s hierarchy of need when introducing products and services and this will ensure efficiency and effectiveness of operations Bibliography Ashworth, G. & Goodall, B. 2013. Marketing in the Tourism Industry: The Promotion of Destination Regions. Routledge. Bennet, J. A. & Strydom, J. W. 2001. Introduction to Travel and Tourism Marketing. Juta and Company ltd. Brander, R. W. Golf, J. & ,Mckay, C. 2014. Hazardous Unpatrolled Surf Beaches in New South Wales, Australia, Original Research Article of Tourism Mnagement, vol. 45, pp. 71-84. Buckley, R. & Shakeela, A. 2013. The Vulnerability of Tourism and Recreation to climate change, Journal of Earth Systems and Environmental sciences, vol. 4, pp. 223-228. Devanish, D. 2011. Tourism Management. Pearson Education. Hollebeek. L, & Joric, B. 2013. Consumer Engagement in a Virtual Brand Community: An Explanatory Analysis, A Journal of Business Research, vol. 66, (1), pp. 105-114. Moutinho, L. 2011. Strategic Management in Tourism. 2nd Edition. CABL. Thomas, R. & Wood, E. 2014. Innovation in Tourism: Re-conceptualising and Measuring the Absorptive Capacity of the Hotel sector, Article of Tourism Management, vol. 45, pp. 39-48. Tourism 2020. Retrieved from http://www.tourism.act.gov.au/research/latest-research. Wana, D. 2013. Factors Affecting Tourism Policy Implementation: A Conceptual Framework and a Case Study in China, Journal of Tourism Management, vol. 36, pp. 221-233. Read More