International Tourism&Hotel Marketing International Marketing Project
1.0 Introduction
The quick growth of the community around the world reflects that Globalization will be the definitive trend. Hence, the strategy of marketing is required with respect to the growth of the international market. In the context of the marketing mix theory, a business must differentiate itself from its rivals by creating a unique marketing mix to compete with them. (Chattopadhyay, Nedungadi & Chakravarti, 1986, pp. 129-136). Therefore, the aim of framing this report is to perform the marketing analysis and based on that make a marketing strategy. The DMO of tourism is placed in Mexico. It provides a memorable experience to the visitors or consumers but it deals with numerous challenged from the rivals. Initially, the report will evaluate the present experience offerings. After this, it will represent the customer analysis and the explanation of strategic opportunities. Besides this, an integrated communication mix and news items of communication will be elaborated. In the end, based on the complete analysis a conclusion will be framed.
2.0 Current Experience offering and Analysis
2.1 Experience Offering
In Mexico, there are various unique and attractive locations that are worthy for visiting and touring. This tourism location provides a different kind of experiences to visitors, which comprises places of interest like Angel of Independence, products like beverages and food, physical indication, diverse races, etc. Competitors that offer the same type of attributes comprise Italy and Albania. These rivals approximately offer a similar type of experience as Mexico. Hence, it has a probability that the rivals might appeal more visitors as compared to Mexico.
2.2 Essential Features of Competitor’s Experience
Albania- Few of the distinctive attractions present in this place are Radhima, Vlora, and Narta. However, consumers will spend less because of the low rate of currency exchange against dollars.
Italy- Some of the unique products and locations are- Leaning Tower of Pisa, Colosseum, Italian Food, and Pantheon. Italy is considered the well-known attractive locations in the whole world.
2.3 Marketing Implications
Under marketing implications, the topics that will be of maximum use are PESTLE Analysis and SWOT Analysis.
SWOT Analysis
SWOT tool is utilized to support a business or company to recognize its external threats and opportunities as well as its internal weaknesses and strengths. It is one of the essential procedures, which is used before taking any final decision related to strategy development.
PESTLE Analysis
A PESTLE framework is used by an organization to evaluate the external environment of the business (Yüksel, 2012, P12). It is very important to look at all the six elements or factors before developing or making a strategy. The factors of PESTLE Analysis are Political, Economic, Social, Technological, Environmental, and Legal.
3.0 Customers Analysis
3.1 Procedure of Marketing Customer Segmentation
The procedure of Market Segmentation comprises three important steps i.e. Market Positioning, Market Targeting, and Market Segmentation. In the context of Market Segmentation, the business recognizes different methods to divide the market and create market profiles. Besides this, various ways are utilized to evaluate the segmentation variables, which comprise Psychographic, Geographic, Behavioural, and Demographic segmentation. The data related to this topic could be extracted from the government statistic page. With the help of market segmentation marketers of the company can evaluate the diverse features and compare them with each other.
After Market Segmentation strategy, another important element is Market Targeting. This step is related to planning the methods of attractiveness and chooses the target segments. In order to select a target, a business should consider the three factors, like the objectives and resources of the company, the attractiveness of the structured segment, and the size and growth of the segment. Our potential consumers are Family of China because it is one of the largest markets. China possesses around 1.3 billion population and the number of Chinese arrivals is increasing yearly in Mexico. Hence, to achieve the growth, marketers of the company choose the target and create different measures of segment attractiveness.
After Market Targeting there is another important step i.e. Market Positioning. In this positioning and marketing mix of each target is developed. Position means, the place of the product or destination in the mind of the customer as compared to other products in the market. For instance, Tourist from China generally does the comparison between Mexico and France. The elements of comparison include budget low or high, close or far away.
3.2 Selection of New International target Market
The new international target market is a tourist from China. There are various data available, which reflects that the tourist from China is the largest market and they possess a huge range of growth in the coming time. In 2015, from January to December there was an increase in the Chinese Tourist from 47,482 to 55,097, which was approx. 16% increase.
Mexico is considered as one of the top ten destinations for the tourist from China. Greece is at the 10th position for the Chinese tourist and 17% people choose this location (Jing Daily, 2014, p. 1). This reflects that Mexico is in the list of top ten destinations of tourism for the visitors from China and there will be people who must be planning their trip in the future. Besides this, for Mexico Chinese Tourist is the largest market. The tourist from China shows their willingness towards spending money as compared to another country tourist. As per the World Tourism Organization (2016, p. 1) in 2016, Tourist from China spends approx. $261 billion USD and at the second position are a tourist from the USA with around $122 billion spending. The amount spends by the Chinese tourist is double from the amount of United States. This reflects that the biggest market for Mexico is China. Moreover, the government of Mexico and China are planning to enhance the tourism quality, for instance, starting direct flight services from China to Mexico. As per Drakopoulos (2017), after three years there will be an increase in the number of visitors from China to Mexico. Therefore, it could be said that Mexico has become the first choice of tourist from China.
4.0 Strategic Opportunity
In the Strategic opportunity section, the report will be discussing the Ansoff’s strategy. This strategy of marketing will support the marketer in understanding how to differentiate the processes from the competitors. Furthermore, the new experience/ product will be established in this particular section.
4.1 Marketing Strategy
Ansoff’s Strategy is being used for the Mexico destination because it supports DMO to handle and plan the destination future growth. The Ansoff’s strategy that has been selected for the tourism destination is Diversification as it is appropriate for the tourism industry of Mexico because in 2.3 sections it was mentioned that Mexico requires a new experience/ product to appeal new target segment or market and increase international tourism. As per the fact, that Mexico is abundant in resources, they can utilize them to offer the new experience to their new international target market.
4.2 Connection of New Strategy and New Target Market
As per the above discussion, National Tourism Organization of Mexico (DMO) will be utilizing the Ansoff’s Diversification strategy. The new market that has been chosen is Chinese Families, is one of the markets that carry maximum potential, which was yet not focused by the Mexico tourism authority. Hence, this is the chance for Mexico to appeal those consumer, because more Chinese Tourist will carry maximum income to the destination. The new experience that will be offered by the destination will be suitable for Chinese Family Tourist and them towards the destination.
4.3 Product Level and Product ideas
In the product, there are four levels that are utilized in the development of the product i.e. support product, core product, augmented product, and facilitating product. The new experience in Mexico is modifying the knowledge that will complement the Chinese family tourism. The traveler will get the welcome email, the time they will buy from us. The email will be covering all the important information related to activities they will do in Mexico. Besides this, customers will be offered different costumes for videos and pictures to keep it as a memory of the Mexico trip. The Chinese language will be used to interact with Chinese Family Tourist and make them feel comfortable. The tourist will be offered a photographer on the double-decker bus for taking family photographs. Moreover, in the island and cruise, there will be the facility of kid zone.
5.0 Integrated Communication Mix
5.1 Definition
Integrated Communication mix works as an influential tool that direct specialists in marketing communications successfully (Shakeel-Ul-Rehman, 2011, p189. IMC comprises sales promotion, public relations, advertising, direct marketing, and personal selling. By utilizing diverse channels of marketing, IMC forms the operative transfer of marketing information and offer maximum value when diverse channels are utilized at the similar time; IMC can certainly look at the accomplishment turned into promotion in practice.
5.2 Assessment of Website
The report makes use of the AIDA model for assessing the strengths and weaknesses of Mexico website. The AIDA model is the tool of marketing, which reflects the four steps those consumers’ deals with when they come into the contact of advertisement. AIDA stands for attention, interest, desire, and action (Lewis, 1898). The Mexico DMO communicates the message of marketing communication to the target customers. On the website’s homepage, there are some images of appealing locations of Mexico and general information to present Mexico, which is the process of attention of AIDA model. With the help of these images and information, consumers can receive the invitation of visiting Mexico. The official website of Mexico offers various links to get in contact with social blogs and websites. It could appeal the interest of tourist as per the AIDA model. Hence, the consumer gets interested in the product. In the context of weaknesses, the Mexico website does not provide information in multiple languages, like Japanese or Chinese. This reflects that it lacks in action aspect of the AIDA model, which means that the visitors have to visit another different website if they want to buy the tickets for the well-known destination of tourism. Therefore, the Mexico website might get the attention of people and arouse their interest, but then might not induce their action. In comparison to the Albania, which is the key rival of Mexico’s DMO also lacks in action. On the other side, the website of Albania is very creative and the structure of the website is clear because it can simply scan through two websites. Therefore, Mexico’s official website should work towards adding more languages to nunnery invitees and have an acquisition link with the destination of tourism.
6.0 New Communication Item
6.1 Customer Exhibition
The aim of customer exhibition is that the worldwide industry of exhibition has experienced the essential growth in last few years, which results in considerable growth in commerce and trade. As per Veronic Suhler and Stevenson Communications, the total spending on the exhibitions in 2006, was around US$10.3 billion, it is expected to exceed that on print media, earlier the maximum marketing disbursement for the enterprise of trade in 2008 ([41] Reed, 2007). Increasing budgets of corporate travel and value, the marketers do head-on interaction with the potential as well as current consumers, which shows the possible reasons for the increasing growth of exhibition. The motive why it is essential to a DMO is DMO could market their locations to appeal to more consumers, solve present problems and generating more money for the upcoming period.
6.2 Diorama
As our model is very colorful, so it will support in getting more attention from customers. Customers could see well-known sightseeing and historic building of Mexico. Besides this, we have the facility of a double-decker bus for their Chinese family tourist and famous Mexican food such as Yogurt. In the interim, they have factories of yogurt, which can produce yogurt. Most importantly, we have a website for bookings and telephone number for customers to have a direct contact for making an order. The distinctive selling point of our destination is yogurt factory, double-decker bus and destination’s famous sightseeing and historic building of Mexico. All the historic building, factory of yogurt, sightseeing, and transport are provided to the new target market i.e. Chinese family. Our competitive advantage is that we allow consumers to prepare their local food by themselves, which is not allowed at every location and the factory of yogurt will deliver the finished good to their residence, so in China also they can enjoy the Mexican Yogurt.
7.0 Conclusion
In the conclusion, it could be restated that the report has reflected the new position of the current tour of Mexico with the help of PESTLE and SWOT analysis, which will be appropriate for the family tour of China. A tourist from China is the potential consumers due to their increasing visits to Mexico. Depending on the Ansoff’s strategy of marketing, diversification strategy has been selected for the destination. Therefore, Mexico has to introduce new experience/ product to attract the people of the new target market with the help of welcoming emails, Chinese photographer in the bus, kid zone, yogurt tour, and so on. To deliver the message of marketing communication to the target market, the report has made use of A.I.D.A model for the assessment and creation of new communication item for the target market.
References
Chattopadhyay, A., Nedungadi, P., & Chakravarti, D. (1986). “marketing strategy and differential advantage”: a comment. Journal of Marketing, 49(2), 129-136.
Chinese Tourists Are Headed Your Way With $264 Billion. (2015). Home page. Retrieved from https://www.bloomberg.com/news/articles/2015-03-11/chinese-tourists-are-headed-your-way-with-264-billion
Chowdhry, A. (2016). Chinese International Travel Monitor 2016. Retrieved from http://www.citmhotels.com/english.pdf
Jin, X., Bauer, T., & Weber, K. (2010). China’s second-tier cities as exhibition destinations. International Journal of Contemporary Hospitality Management, 22(4), 552-571.
Ledsham, C. (2016). Greece Looking To Attract One Million Chinese Tourists Per Year By 2021. Retrieved from http://china-outbound.com/2016/06/15/greece-looking-to-attract-one-million-chinese-tourists-per-year-by-2021/
Lewis, E. St. Elmo. (1899). Side Talk about Advertising. The Western Druggist. (21 February). p.66
Makris, A. (2017). Chinese Tourists Visiting Greece Could Exceed 250,000 in Three Years. Retrieved from http://greece.greekreporter.com/2017/02/17/chinese-tourists-visiting-greece-could-exceed-250000-in-three-years/
McArthur, D. N., & Griffin, T. (1997). A marketing management view of integrated marketing communications. Journal of Advertising Research, 37(5), 19-26.
Mungai, F. N. (2010). Growth strategies applied by the institute of advanced technology; the study of Ansoff model. The University of Nairobi Kenya.
Shakeel-Ul-Rehman, & Ibrahim, M. S. (2011). INTEGRATED MARKETING COMMUNICATION AND PROMOTION. Researchers World, 2(4), 187-191.
Yüksel, I. (2012). Developing a multi-criteria decision-making model for PESTEL analysis. International Journal of Business & Management, 7(24).
Zikakou, I. (2013). The Average Turkish Tourist in Greece. Retrieved from http://greece.greekreporter.com/2013/12/14/the-average-turkish-tourist-in-greece/
- Introduction
With the rapid development of the society all over the world, it appears globalization would be the ultimate trend. Thus, a marketing strategy is needed with regard to the development of an international market. Under the theory of marketing mix, a company should distinguish itself from competitors by making a distinctive marketing mix in order to outcompete competitors (Chattopadhyay, Nedungadi & Chakravarti, 1986, pp. 129-136). Thus, the purpose of this report is to carry out a marketing analysis and develop a marketing strategy based on the analysis. The DMO is tourism located in Greece. It offers unforgettable experience to customers but it faces many challenges from competitors. The report firstly analyzes the current experience offerings. Following this, there is a customer analysis and a description of strategic opportunities. Then, an integrated communication mix is illustrated and new communication items are explained. Lastly, a conclusion is reached.
- Current Experience offering and Analysis
2.1 Experience offering
In Greece, there are a number of distinctive attractions which are worthy of touring and visiting. The location offers various types of experiences to tourists which include places of interests such as Arcopolis of Athens, products such as food and beverage, physical evidence, different races and so on. Competitors which provide similar attributes include Albania and Italia. These competitors offer nearly the same types experiences as Greece. Thus, it is possible that both competitors may attract more customers than the tourism in Greece.
2.2 Important features of competitor’s experiences
Albania: there are some unique attractions in this location: Vlora, Narta, Radhima. Besides, customers would spend relatively less due to the weak exchange rate of its currency against dollars.
Italia: the distinctive spots and products are: Colosseum, Pantheon, Leaning Tower of Pisa, and Italian food. These are one of the most famous attractions in the world.
2.3 Marketing implications
Under this sub-section, a SWOT analysis and a PESTEL analysis would be of great use in this case.
SWOT analysis
SWOT analysis is used to help an organization identify its internal strengths and weakness as well as recognize its external opportunities and threats (Appendix A). This is a necessary process before making the final decision on strategy development.
PESTEL analysis
A PESTEL analysis is utilized to analyse an organization’s external business environment (Yüksel, 2012,P12). It is crucial to consider all the six factors below before a strategy is developed. The factors include Political, Economical, Social, Technological, Environmental, and Legal factors.
3.0 Customers Analysis
3.1 Marketing customer segmentation process
Market Segmentation Process include three main steps. These is Market segmentation, Market targeting and Market positioning. For the Market Segmentation, the company identified ways to split the market and develops profiles of the market. Also use different ways to analysis the segmentation variables. Including Geographic, Demographic, Psychographic and Behavioural. This information can be search form government statistic page. The marketer can analysis the different feature and compare each other.
After Market segmentation is Market targeting. These steps are about plan the measures of attractiveness and select the target segments. For select a target, a firm must look at three factors, such as segment size and growth, segment structured attractiveness, and company objectives and resources. Link to our potential customer China Family, these is a biggest market. China have over 1.3 billion people and also the arrivals number are growing every year in Greece. So achieve the marketer select the target and also develop measures of segment attractiveness.
After that is Market positioning. Develop positioning and marketing mix for each target. Position here is mean what is the position of the customer mind compare to other product. For example, Chinese tourists compare Greece and France. The compare elements include close or far away, budget high or low.
3.2 Selection of the new International target market
Our new international target market is Chinese tourists. There have many statistics to show the Chinese tourists is the biggest market and also they have a relatively large growth range in the future. In January to December of 2015, Chinese tourists increase from 47,482 to 55,097, increase around 16 precent.(Appendix P)
Greece are growth up to the top ten destinations for Chinese tourists. (Appendix Q) “ Greece is the number 10 of the destinations for Chinese tourists and this is 17% people to choose it ” (Jing Daily, 2014, p. 1). That means Greece is the top ten tourism destinations for Chinese customer and there are more Chinese will be plan to come in the future. Also Chinese tourists is the biggest market for the Greece. Chinese tourism are willing to spend more money than other country tourism . According to World Tourism Organization (2016, p. 1) “China tourists spend around $261 billion USD in 2016 and second one is USA with $122 billion ,China’s spend amount is double of the United States.”(Appendix R) .Which can see the Chinese tourism is the biggest market for the Greece. Furthermore, as the Greek government and the Chinese government to improve the quality of tourism, for example create the direct fight from China to Greece. According to Drakopoulos (2017) “after three years Chinese tourists visiting Greece could exceed 250,000 (p. 1).” So above as the statistic, Greece has gradually become the choice of Chinese tourists in their mind, also with the spending power of Chinese tourists and the cooperation between two governments, Chinese tourists is one of the biggest potential market for Greece.
4.0 Strategic opportunity
In this section of the report is discussing about the Ansoff’s marketing strategy that will be use for the destination. Also, the marketing strategy will help the marketer to understand how the strategy can make a differentiation to the competitor. Moreover, the new product/ experience will be introduced in this section.
4.1 Marketing Strategy
Ansoff’s marketing strategy is use to plan for Greece destination because it is help the DMO to manage and plan the future growth of the destination. The Ansoff’s marketing strategy that is chosen for the destination is the diversification because it is the most suitable strategy for Greece tourism industry because in section 2.3 mention that Greece needs a new product/ experience to attract the new target market (Appendix J) to increase international tourism. Due to the fact, that Greece has a good resource at their destination so they can use this to provide the new product/ experience to the new international market target.
4.2 Connection of new Strategy and new Market Target
As mention above that Greece National Tourism Organisation (DMO) will be using the diversification in the Ansoff’s matrix. Because the new target market that is selected is a Chinese family tourist, which is the new potential market that Greece has not focus on. So this is the opportunity for Greece to attract those customer, due to the fact of the raise in the Chinese tourist will bring more income to the destination. The experience that the destination provides will be suite for the Chinese family tourists to attract them to the destination, by using the diversification strategy to create a new experience for the specific target market.
4.3 Product Level and Product ideas
There are four level of product that is use in the product development, which is core product, facilitating product, support product and augmented product (Appedix?). The new experience in Greece is customizing the experience that would suite the Chinese family tourism. The tourist target will receive the welcome email after they purchase with us, in the email will instructed them in Chinese on what they can do in the destination. While they at the attraction, the costume will be provided for them to take a picture or video as a part of their memory. The Chinese language is providing for the convenience of travelling. On the double decker bus, the tourist can use a photographer that is providing to take a family photo. The kid zone is also providing in the island cruise for the children. After, the yoghurt tour in Greece, the product that made there will be ship after their return with the picture of their activity at the destination.
5.0 Integrated Communication Mix
5.1 Definition of Integrated Communication Mix
Integrated Communication Mix develops as a powerful tool that guides practitioners in marketing communications more effectively (Shakeel-Ul-Rehman, 2011, p189). IMC includes advertising, sales promotion, personal selling, public relations, direct marketing. By using different marketing channels, IMC builds up the effective delivery of marketing information and establish more value when different channels are used at the same time, IMC could indeed be seen as an achievement turned to promotion in practice.
5.2 Assessment of Website
This report uses the AIDA model for evaluation to understand the strengths as well as weaknesses of Greece’s website. According to Appendix H, the AIDA model is a marketing tool which shows the four stages that customers when engaging with advertisement. A.I.D.A which is attention, interest, desire and action (Lewis, 1898). The DMO of Greece transmits the marketing communication messages to the target consumers. On the home page of the website, it is some photos about the charming views of Greece and basic information to introduce Greece which is attention process in A.I.D.A can make customers take notice of visiting Greece through this marketing channel. The Greece official website provides several links to connect with social websites and blogs. It can attract visitors’ interest in AIDA model. So the customer will get interested in the product. Though, in terms of weaknesses, the website does not have multiple language, such as Chinese or Japanese. It also lacks of action which means visitors need to go to other website if they are willing to purchase the entry tickets for famous tourism destination. Thus, the website of Greece may attract people’s attention and stimulate their interest, but may not evoke their action. In comparison, Albania is the main competitor of Greece’s DMO is also lack of action. At the same time, the layout of Albania website is more creative. However, the website structure is very clear and it is easy to scan through two websites, but also lack of action. Therefore, the official website of Greece can add more multiple language to convent visitors and have a purchase link with the tourism destination.
- New communication item
6.1 Consumer exhibition
The purpose of consumer exhibition is the exhibition industry worldwide has experienced significant growth over the past few years, resulting from a substantial increase in trade and commerce. According to Veronis Suhler and Stevenson Communications, spending on exhibitions amounted to US$10.3 billion in 2006; it is predicted to surpass that on print media, previously the highest marketing expenditure for trade enterprises in 2008 ([41] Reed, 2007). Increased corporate travel budgets and the value marketers place on face-to-face contact with current and potential customers represent probable reasons for the continued exhibition growth. The reason why is important to a DMO is DMO can promote their destinations to attract more customers, improve the existing problems and making more money for the future.
6.2 Diorama
Because our model is really colourful, so It will attract customer’s attention, so they want to have a look and they can see the famous history building and sightseeing of Greece lead to their interest, then we have double decker bus for tourists visit and eat the Greece famous food yogurt meanwhile have yogurt factory which can make yogurt by themselves and bring to china to make them desire to come, finally we have the booking website and telephone number for them or contract us directly to make an order. Our destination’s unique selling point is double decker bus and yogurt factory and our destination’s position is visiting the famous history building and sightseeing of Greece and eat famous Greece yogurt. All the sightseeing, history building, transport and yogurt factory have Chinese for our very specifically, new target market which is Chinese family. Our competitive advantage is because most destination don’t allow customer to make local food by themselves but we allowed and the yogurt factory will send the finished product to their home. So even in China they still can eat Greece yogurt which they made.
- Conclusion
To sum up, this report has shown the new position of Greece’s current tourism which would suite the Chinese family tourism by using SWOT and PESTEL analysis. Chinese tourists are the potential customers because of the increasing amounts of the visiting Greece thought the marketing segmentation. Based on Ansoff’s marketing strategy, diversification is chosen for the destination. Thus, Greece need a new product/ experience to attract the new target market which are welcome email, Chinese photographer in double decker bus, kid zone in island cruise, yoghurt tour etc. In order to deliver the marketing messages that represent the product or of an organization to the target market, this report use A.I.D.A model for evaluation and create a new communication item for the new target.
Reference
Chattopadhyay, A., Nedungadi, P., & Chakravarti, D. (1986). “marketing strategy and differential advantage”: a comment. Journal of Marketing, 49(2), 129-136.
Chinese Tourists Are Headed Your Way With $264 Billion. (2015). Home page. Retrieved from https://www.bloomberg.com/news/articles/2015-03-11/chinese-tourists-are-headed-your-way-with-264-billion
Chowdhry, A. (2016). Chinese International Travel Monitor 2016. Retrieved from http://www.citmhotels.com/english.pdf
Jin, X., Bauer, T., & Weber, K. (2010). China’s second-tier cities as exhibition destinations. International Journal of Contemporary Hospitality Management, 22(4), 552-571.
Makris , A. (2017). Chinese Tourists Visiting Greece Could Exceed 250,000 in Three Years. Retrieved from http://greece.greekreporter.com/2017/02/17/chinese-tourists-visiting-greece-could-exceed-250000-in-three-years/
Ledsham , C. (2016). Greece Looking To Attract One Million Chinese Tourists Per Year By 2021. Retrieved from http://china-outbound.com/2016/06/15/greece-looking-to-attract-one-million-chinese-tourists-per-year-by-2021/
Lewis, E. St. Elmo. (1899). Side Talk about Advertising. The Western Druggist. (21 February). p.66
McArthur, D. N., & Griffin, T. (1997). A marketing management view of integrated marketing communications. Journal of Advertising Research, 37(5), 19-26.
Mungai, F. N. (2010). Growth strategies applied by the institute of advanced technology; the study of Ansoff model. University of Nairobi Kenya.
Shakeel-Ul-Rehman, & Ibrahim, M. S. (2011). INTEGRATED MARKETING COMMUNICATION AND PROMOTION. Researchers World, 2(4), 187-191.
Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business & Management, 7(24).
Zikakou , I. (2013). The Average Turkish Tourist in Greece. Retrieved from http://greece.greekreporter.com/2013/12/14/the-average-turkish-tourist-in-greece/
