Travel Plan and Market Segmentation - Assignment Example

Travel Plan and Market Segmentation Executive Summary Lifestyles and lifestyle values have many factors within a particular group of people which substantially affects their way of life of individuals. Lifestyle segmentation allows marketers to look at the global consumers a heterogeneous group of individuals who fall under the same segmentation as a basis for the development of products or even services. In this report lifestyle defines the person’s basic reactions and behavior. In many markets, there are diverse consumers who have differing lifestyles, backgrounds and even income levels. It is a point to note that, no single marketing mix that can be used to cover or even attract all sectors of a market. By understanding the consumer, marketers get a clear chance to develop mere efficient and effective marketing strategy. The need to indentify the factors that affect purchase decisions and then group consumers according to the presence or even the absence of the said factors is of great importance in any market. This in the long run makes sure that the marketing strategies are adjusted so that they can meet the needs of a particular group.. In this case, the two couples fall under different categories and therefore the design of the product will have to be different even though there are some which they can handle at the same time. The difference will in most cases be determined by the price and product which are mostly correlated to their life stage difference and not age per se. Young optimism VALs which comprises of couple A are young, enthusiastic and spend much in fashion and fun. This then means that, their products will not compare with Couple B who are visible achievement VALs who look for deals which will give them value for their money. In other words, Couple B are price sensitive and do not necessarily go for popular brands, if they can get deal in products which are not necessarily expensive, then they will be satisfied. Conclusively, the products of the two couples differ in a big way in terms of price and product. For instance, Couple A is looking for products which will include social activities and vigorous and risky activities, and are looking for being commended by others. In the contrary, couples B are looking for more educative and luxurious activities which are deemed to give them the value for their money. They are therefore price sensitive and not much spenders. Their packages are therefore tailor made to suit their group and give them maximum satisfaction. Contents Introduction 4 Vacation Venue 5 Part A 6 Couple A 6 Honeymoon Holiday 8 Part B 12 Couple B 12 Couple B Holiday 15 Conclusion 17 Introduction Lifestyles and lifestyle values have many factors within a particular group of people, which affect their way of life other than the cultural and the religious orientation. Lifestyle segmentation allows marketers to look at the global consumers a heterogeneous group of individuals who fall under the same segmentation as a basis for the development of products or even services (Baines et al 2005). Lifestyle in this case therefore defines the person’s basic reactions and behavior. In many markets, there are diverse consumers who have differing lifestyles, backgrounds and even income levels. This therefore means that, there is no single marketing mix that can be used to cover or even attract all sectors of a market. By understanding the consumer, marketers get a clear chance to develop mere efficient and effective marketing strategy (Fraj & Martinez 2006). In any given market, there are many variables in consumer needs, preferences and most importantly the purchasing power which attracts consumers with a single marketing mix. There is a need to indentify the factors that affect purchase decisions and then group consumers according to the presence or even the absence of the said factors (Divine & Lepisto 2005). In other words, there is a need to have thee marketing strategies adjusted so that they can meet the needs of a particular group. This division of the market in to smaller and relatively homogenous groups is the one refereed to as market segmentation. A market segment in this case must have a definite presentation of a measurable purchasing power and size. In this case, the two couples fall under different categories and therefore the design of the product will have to be different even though there are some which they can handle at the same time (Bojanic 2007). The difference will in most cases be determined by the price and product which are mostly correlated to their life stage difference and not age per se. It is worth noting that, this segmentation approaches a life stage which determines the consumer purchasing behavior primarily. As people move from one stage of life to another, they become consumers for different types of good and services. In this case, Couple A, who have just married have a differ profile as compared to couple B who happens to be their parents. To satisfy these groups, then there is a need to offer them the best value possible in accordance to their group type. This report is about a travel plan for two groups which are: Couple A - Young Optimism Vals Couple B - Visible Achievements Vals The two groups are looking for different vacations but in the same region. However, due to the difference in their lifestyle, their packages are going to be different. Vacation Venue Venice Venice is has extraordinary tourist attractions to show off which are mostly enhanced by their waterfront location. Boat trips around Venetian Lagoon and Gondola rides along the canals are the most sought in Venice, providing visitors with a relaxing and easy way to see many famous attractions. There are many attractions like the Basilica di Santa Maria, Scoula Grande Di san Rocco and Campo dei della Salute. Sight seeing in Venice is like no other city and has unique tourists’ experiences. Part A Couple A Couple A, who just married fall under the category of the Young Optimism VALS for they are aged between 20-30 years and are looking for romance and indulgence and most importantly, they are looking for moments together as they enjoy their honeymoon. It is worth noting that, their category will include products which are more inclined to sports, music and other social activities (Reisenwitz & Iyer 2007). They are energetic and want to explore much products which are involving and vigorous and therefore their products have to be tailor made in order to suit their group and give them satisfying outing. Additionally, it is a point to note that, their lifestyle is in many cases ignited by external criteria and motivated mostly by inner needs as opposed to many others which correlate to the expectations of others. Their product must involve opportunities that fulfill their need to enjoy and outgoing lifestyle. This will mostly mean that, they will involve a lot of travelling to have new adventure and experiences (Christensen, Cook & Hall 2005). At Venice, their option will be cruise ships, trains and even buses as their means of transport. Additionally, shopping, going to theatre, musical performances will be most of the activities that will take much of their schedules not forgetting skiing, hiking and other adventure activities which makes Venice a better option for them. By the fact that they are young, they are most likely to become enthusiastic about new possibilities, seek variety of excitement, savoring the neat, the offbeat and the risky. Their energy must therefore be directed in exercise, sports, outdoor recreation and as mentioned above social activities. They are likely to spend their money on fashion, entertainment and even socializing. Theirs is to look good and have a name in having good items (Christensen, Cook & Hall 2005). Their travel is centers on the cafeteria, the bar and the casino. Moreover, there is a likelihood of them using the backpacker accommodation. This market segment has a very high purchasing power. This is attributed to the fact that, they are at the middle of their career and therefore have a lot of money. However they are price sensitive and therefore their products and services must be price sensitive. In actual fact, they are savvy as far as brands are concerned and most importantly, they value quality when sold at a fair price (Wall & Mitchell 2005). This young category is exposed to the internet and therefore they have a glimpse of the products they want and mostly the amount of money this may cost them. Actually, they use internet and therefore value and emphasis on universal values and mostly have a consideration on the specific cultural values (Quinn, Hines & Bennison 2007). Additionally, they are positive and practical and therefore there is a need to have products which a more aligned towards quality and value which are more of fun, quirky and outrageous and are also focused on social and environmental responsible products for they are environmentally and socially aware. In any of their products, price must be adequately considered if at all they have to get the satisfaction they are looking for in their honeymoon. In other words, they are looking for optimum enjoyment during their travel, at a considered fair price without compromising the quality and the value of the said product or service. However, Couple A requires a product which will require them spend some time together as they enjoy their honeymoon. In this case, their product will include most of the incursions which will require just the two of them most of the time. However, they can also be included on products which will have many people like the case of any sport, music and other social activities (Christensen, Cook & Hall 2005). The choice of their product is done in such a way that, their economic status is considered. In this category, they have the money but are price sensitive as noted earlier. This therefore means that, the products they have received are cost sensitive and are tailor made to suit their needs. Since their need is to be alone and enjoy the moment together, the products are designed to suit that so that they can be satisfied in the long run. However, it is worth noting that, they do not mind opting for products which are more expensive provided they are from brands which have a name and are in fashion and deemed to give maximum enjoyment. Honeymoon Holiday Travel and Accommodation 6 nights accommodation at the Palace Bonvecchiati Superior Room Private Round trip airport transfers by water limousine Daily Breakfast Bottle of Prosecco in room upon arrival + fruits, cake and flowers Fully guided private tour Murano, Burano, Torcello islands excursion Romantic atmosphere in your room with scented candles lights and bed and bath of roses Complementary Verona Card which allows you to visit the historical sites of the city and museums. Gondola ride night 1 hour helicopter tour Romantic dinner for two at Café quadric Shopping at customers expense Sight seeing Authentic Italian Cuisine Swimming and water games for non swimmers Honeymoon Schedule Day 1 A warm welcome to Venice. You will be picked from Marco Polo Airport and transferred to Palace Bonvecchiati. In your room there will be a bottle of Prosecco in room upon arrival + fruits, cake and flowers Day 2 You will tour Venice guided by a licensed tour guide and have lunch light lunch at Saint Marks Square of locally produced food which in most cases is sea food. You will then have tour Piazza San Marco as you enjoy scenery, live music and interact with people as u dance. Day 3 Cruise the most famous Venetian Islands, from Saint Marks Basin, stop at Murano the Island of the glass- visit the glass factory and see the glass manufacture and blown- Buy some glasses, then ride to Burano the fishing island, then to Torcello, the most inhabited island. You can also have a visit to Byzantine cathedral and have pictures and videos for the magnificent mosaics representing the last judgment. Day 4 You will have a romantic tour by a parade of Gondolas with live music and songs on board to make a suburb entrance into the Grand Canal in front of the impressive church of Madonna Della Salute. Later you can enjoy shopping through the city Day 5 You will be picked by your guide at around 11am and have a tour to Verona, Amarone and Valpolicella cities. You will also have time to visit the house of Juliet as from the Romeo and Juliet Shakespeare and then end up at Piazza delle Erbe and some exclusive shops around the city. Then to the most beautiful views of Sirmione and Lake Garda. This will be the most romantic outing for it will be just the two of you in the tour van Day 6 You will have a 1 hour helicopter tour around Venice and then spend time together at the swimming pool. Day 7 You will have full day leisure and later be transferred to the airport as you pick your homebound flight. Total Amount $ 7, 450 This excludes you air tickets to and from home and shopping expenses Honeymoon bed Romantic Dinner Conclusively, it is a fact that the correlation between fun and enjoyment in life as social values and consumer behavior can never be ruled out in any market. Couples A are young and therefore are among the individuals who will appreciate fun and enjoyment as a social adaptation influence (Christensen, Cook & Hall 2005). This therefore means that, their product must be designed in such a way that it constitutes a lot of fun and enjoyment if at all these consumers has to be fully satisfied and have their needs met. Moreover, customers do not just put themselves in any category and therefore this gives rise to a need to focus on getting a holistic understanding of these customers’ needs that just engaging in ready made products for groups of buyers. Otherwise, their needs may not be met. Owing to that, the two couples will spend their holiday in Venice; it is noteworthy that their products can not be of the same category. This is attributed to the fact that, they have differing lifestyles, income, beliefs, attitude and needs. Their age difference may have some substantial contributions to the differences in products and the price they are going for. For instance, Couple A are young and much of their income is geared towards savings. This being the case, they are going to go for products and services with the fairest prices. Additionally, they are also looking for products and services of value or brands that their peer can give them a thumb up. In other words, what they look for in commendation and appraisal from their peers in whatever product or service they opt for. It is therefore worth concluding that, couple A go for services and products which will give them maximum enjoyment and fun, but those with fair prices and uncompromised quality. Part B Couple B This are parents of the other category which means that they are older than the other and have achieved much in life. They fall under the visible achievers VALs segment which values success and are more inclined to achievements. Research depicts that, this category is more comfortable and efficient and therefore whatever products they opt for must have a name and must also give them value for their money (Stoel, Wickliffe & Lee 2004). This category is associated with proof of having made it up in the never ending social ladder. Personal recognition, higher income, job satisfaction and many other tangible rewards and their holiday location provide the very best of visible good living. This entirely connotes that, their location must be of higher class and even more expensive that that of couple A. Additionally, this category is individualistic and therefore do not need to prove themselves to anyone nor impress anyone as it is the case with the other category. This therefore means that, their products are more inclined to the value for their money and more attached to brand loyalty. However, they are not necessarily cost sensitive but they look for value for their money and are always looking for a deal (Stoel, Wickliffe & Lee 2004). This does not mean that they will necessarily go for the most expensive but they are looking for a deal that will always favor them. Due to the fact that they are not going for impressing other people, they do not have much to do with shopping at the likes of target, factory direct or even the designer products. Their feeling is that if they can only get good quality at a good price, they do not see any reason to waste money. This means that, any product that seems valuable to them, that is giving them value for their money is a better option for them (Hur, Kim & Park 2010). They do not look for big brands which will end up costing them a lot of money. This means that, they are cost sensitive and therefore their package must be done in such a way that, price is taken good care of. This category is not enthusiastic and therefore those activities that require vigor are not part of their products. Those social activities like the choice of the couple A cannot be comfortable to the Couple B due to their lifestyle and beliefs. At their level, they value their families, work and religion. This therefore means that, they can never go for products which will require them to be physically involved for many hours. What they are looking for is luxury and relaxation, getting to know the culture of Venice and learning many other things. This therefore means that, their product will be more inclined into education and informative package and not a secluded package as that of couple A, who are out for their honey moon and therefore require much time together. The lifestyles of these two couples differ in a big way. For instance when couple A are looking for a romantic outing, couple B are looking for luxury and relaxation moments which they will demand a value for their money unlike Couple A who are out for fashion and fan. Their prices therefore must be minimal with compromising the quality and the value for they will only pay for that which they deem will give them value for their money (Brunsø, Scholderer & Grunert 2004). They are not looking for brands or products direct from the factories as it is the case of couple A, who have to buy some glasses direct from the factory. This therefore means that, their spending is limited to their attitude towards specific products (Orth et al 2004). Their tour will have to be more of educative visits. They are looking forwards to learning more about the culture of Venice and therefore their tours will be to the historic sites and buildings like museums and more of interactive with the local communities and other visitors. This is contrary to the needs of Couple A who must spend some time together as they enjoy and have fun n their honeymoon. The accommodation option must not necessarily be the most expensive but must be equivalent to the amount they are paying for, if they have to be satisfied. This is due to the fact that, what they value most is not the class or the fashion, or even the brand name of the product they are getting. This category as mentioned earlier is looking for deals which will amount to the value of the amount they are giving for the specific products (Hunt & Arnett 2004). In other words, what determine the kind of the product they are going to opt for is in the return for value for their money. It is also worth noting that, the age of couple B will also create a very big gap between the products of couple A and B. this is attributing to the fact that, age determined the way one used products and how they think and feel about the marketing activities. To add on to this, age carries with itself culturally defined behavioral and attitudinal norms which have tremendous effects on self concepts and lifestyles (Divine & Lepisto 2005). This therefore means that, the perception of specific products by the two couple is very different and this therefore calls for a different product for couple B as compared to the products for couple A. it is therefore worth concluding that, whatever products they are opting for is for their own satisfaction and not for any impression to others. In other words, their primary motivation is value and not fun and adventure. Couple B Holiday Travel and Accommodation 6 nights accommodation at the Hotel San Zulian Private Round trip airport transfers by an air conditioned BMW Daily Breakfast Two glasses of wine in room upon arrival and flowers Fully guided tour Complementary Verona Card which allows you to visit the historical sites of the city and museums. Gondola ride night Dinner for two Holiday Schedule Day 1 A warm welcome to Venice. You will be picked from Marco Polo Airport and transferred to Hotel San Zulian. In your room there will two glasses and flowers Day 2 You will tour Venice guided by a licensed tour guide and have lunch light lunch at Saint Marks Square of locally produced food which in most cases is sea food. You will then have tour Piazza San Marco as you enjoy scenery, live music and interact with people. Day 3 You will be picked at around 11am and taken through the floating museums on a labyrinth of canals. Get to see the most and the rich artistic heritage of the city. Day 4 Visit to the Giada De Laurentiis to a fish market which have been there for a very long time. You will have an experience with the fishmongers, bustling scenes. With this you will get loads of local gastronomy. Day 5 You will be picked by your guide at around 11am and have a tour to Verona, Amarone and Valpolicella cities. You will also have time to visit the house of Juliet as from the Romeo and Juliet Shakespeare and then end up at Piazza delle Erbe and some exclusive shops around the city. Then to the most beautiful views of Sirmione and Lake Garda. This tour will include a group of not more than 12 members Day 6 You will visit Doge’s Palace with priority access tickets to avoid wasting time standing in line. You will learn more about the history of the city Day 7 You will have full day leisure and later be transferred to the airport as you pick your homebound flight. Total Amount $ 5, 050 This excludes you air tickets to and from home and shopping expenses Conclusion Couple A and Couple B have products designed to fit their needs and desires. The price of the two packages have been realized through considering the psychographic segmentation which depicts that, the young optimism VALS are full of live and are opting for good times together while they have no regret in spending large amounts of money on fashion and fan. This therefore means that their products are more expensive and are out to spend much more on social activities that will be towards impressing the other peer. Consequently, couple B is not much spender and therefore their products are not expensive owing to the fact that, they are all looking for value for their money in whatever they indulge in. It is a matter of fact from the report that, price is a common factor that is determining the kind of products designed for each couple. In this case, Couple A is not price sensitive, they spend much on fashion and fan. They like impressive brands that can be commended by their peer. This being the case, their price is high and the quality of the same very high. This is the same case with Couple B who is looking for a deal for their money and therefore they demand quality products so that they can feel that they have gotten the Value for their money. The Place of the vacation is also different for the two couples. Couple A are looking for more luxurious and branded places and want to be in places where their peer will deem superb. Couple B is for a place that is of good quality, not necessarily expensive but they must get value for their money. The lifestyle of the two couples, considering their age different is also contributing to their choice of Product. Couples A are energetic and risk takers and therefore their products are fun, social activities and vigorous activities. This is why the choice of their areas of visit and accommodation are first class. Couples B on the contrary have their products tailor made to suit their luxurious life which are more education. The difference between the products and the price of the two couple is brought about by the fact that, the lifestyle of the two differs in a big way. It is a fact that, owing to the stage of their life, their attitude, belief and needs are actually very different and therefore their preference for products differ in a very substantial way. Finally, the difference is also common owing to the fact that, the spending habits for the two groups are also different. It is a matter of fact that, couple A are much spenders provided they impress the others while couple B are not out for expensive products but want deals that will give them value for their money. Bibliography Baines, P., Worcester, R., Jarrett, D., and Mortimore, R. (2005), ‘Product attribute-based voter segmentation and resource-advantage theory’, Journal of Marketing Management, 22, 1/2, 1079–116. Brunsø, K., Scholderer, J. and Grunert, K.G. (2004). Closing the Gap Between Values and Behavior – a Means-End Theory of Lifestyle. 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