Student 1 Street Crescent Suburb State 0000

28 June 2010

Ms Jane Jones Manager Shop Street State city 0000

Dear Ms Jones I am writing to submit my TRAVEL AGENCY marketing strategy report as proposed in my earlier correspondence of 12 March 2010. This report is being provided as a course assessment item for my final subject in a Bachelor of Business, marketing major program, which is Marketing Strategy. My aim is to complete this final subject through development of this strategy as part of a Work Integrated Learning project I have undertaken in TRAVEL AGENCY, where I previously worked full-time as a Travel Consultant. The TRAVEL AGENCY store was operating at a loss for nearly three year when I first joined on 12 October 2009. I was keen to undertake development this marketing strategy focused on securing more consistent profits for the Store. This project was also designed around fulfilling the course requirements of STRATEGIC MARKETING, which, builds upon and consolidates previously acquired knowledge of marketing concepts and principles of my marketing major studies. This project provided an excellent opportunity to learn and extend my graduate qualities. This report is evidence of my analytical abilities within my chosen discipline expertise, which is marketing, as well as, my proficiency in professional practice in the field of marketing. I will also be able to demonstrate my global citizenship through the concepts I hope to introduce in the marketing strategy for the Store. I hope that through completion of this Work Integrated Learning project that I have be able make a scholarly contribution to TRAVEL AGENCY and the wider community being serviced by the Store through provision of a theoretical based marketing strategy. And finally, I hope that this report demonstrates the skills of life-long learning I have acquired during the completion of my degree through the independent development of this marketing strategy.

Thank you for giving me the opportunity to provide you with this marketing strategy. I would be delighted to discuss any queries you have subsequent to submission of this strategy.

Yours sincerely Student

WORK INTEGRATED LEARNING PROJECT REPORT ON: MARKETING STRATEGY FOR TRAVEL AGENCY Prepared for: Ms Jane Jones

Prepared by:

Student Submitted: 28 June 2010

Work Integrated Learning Marketing Strategy

Executive Summary
This marketing strategy was proposed in correspondence to Ms Jane Jones, Manager, Travel Agency and Mr Lecturer, University on 12 March 2010. It provides a marketing strategy for TRAVEL AGENCY to be considered as an assessment item for UNIVERSITYs Working Integrated Learning course in the form of a written report. Issues identified were: Ethical Segmentational

The goal of this report was to provide a reference tool for the Store to implement and return to profit. Graduate qualities The executive summary which as you know by now, summarises the report or in this case, the plan into a couple of pages. In a marketing plan, the executive summary has to provide brief summaries of the 1. strategic direction of the plan, 2. the competitive advantage of the product, 3. the investment needed to achieve the objectives of the plan, and 4. the anticipated outcomes.

Work Integrated Learning Marketing Strategy

Student

TABLE OF CONTENTS Executive Summary ........................................................................................................... i 1 Introduction ............................................................................................................... 4

1.1 1.2 1.3 1.4 Aim ................................................................................................................................. 4 Authorisation.................................................................................................................. 4 Scope .............................................................................................................................. 4 Limitations ..................................................................................................................... 5

TRAVEL AGENCY Limited Overview.................................................................. 5

2.1 TRAVEL AGENCY .......................................................... Error! Bookmark not defined.

Introduction to strategic marketing ........................................................................ 6

3.1 3.2 3.3 3.4 3.5
3.5.1 3.5.2 3.5.3 3.5.4

A definition of marketing................................................................................................ 6 Relationship marketing and the marketing mix ............................................................. 7 Philosophy, strategy and tactical levels of marketing.................................................... 7 Ethics in marketing ........................................................................................................ 8 Other core concepts such as marketing orientation, innovation and adoption,
Marketing orientation ............................................................................................................. 8 The consumer decision process .............................................................................................. 9 Innovation ............................................................................................................................... 9 Segmentation and positioning ................................................................................................10

segmentation and positioning ..................................................................................................... 8

Stakeholder selection and ethical decision making .............................................. 10

4.1 4.2 Stakeholder selection ................................................................................................... 10 Ethical decision making ............................................................................................... 11

Internal analysis ...................................................................................................... 14

5.1 5.2 5.3 5.4 Financial analysis ........................................................................................................ 15 Customer relationship analysis .................................................................................... 17 Internal business issues analysis.................................................................................. 17 Innovation analysis ...................................................................................................... 19

Work Integrated Learning Marketing Strategy

Student

External analysis ..................................................................................................... 20

6.1 6.2 6.3 6.4 Segmentation ................................................................................................................ 20 Brand loyalty ................................................................................................................ 21 Competitor analysis ..................................................................................................... 22 Environmental analysis ................................................................................................ 23

7 8 9

Setting strategic objectives ..................................................................................... 23 Developing a marketing strategy ........................................................................... 25 Marketing plan ........................................................................................................ 27

10 Conclusion ............................................................................................................... 27 List of References ............................................................................................................ 29 Appendix I: TRAVEL AGENCY Stakeholder Analysis .......................................... 32 Appendix II: TRAVEL AGENCY Value Proposition Analysis .............................. 33 Appendix II: TRAVEL AGENCY -Market Segmentation ......................................... 34 Appendix IV: TRAVEL AGENCY - PEST Analysis .................................................. 35 Appendix V: TRAVEL AGENCY - Strength, Weaknesses, Opportunities and Threats Analysis .............................................................................................................. 36 Appendix VI: TRAVEL AGENCY Marketing Action Plan .................................... 37

LIST OF FIGURES Figure 1: Ethical decision-making framework ................................................................. 12 Figure 2: Four elements of the balanced scorecard .......................................................... 15 Figure 3: TRAVEL AGENCY Profit Performance January 2007-January 2009 ............. 16 Figure 4: Ansoffs Matrix ................................................................................................. 25

Work Integrated Learning Marketing Strategy

Student

1 Introduction
This marketing strategy has been prepared by Ms Student, final year Bachelor of Business, Marketing Major student at the University. The report is being provided to Ms Jane, Manager, TRAVEL AGENCY as the workplace sponsor.

1.1 Aim
The main purpose of this marketing strategy is to evidence Ms Students competency in UNIVERSITYs Marketing Strategy (STRATEGIC MARKETING) course, the subject in her Bachelor of Business marketing major program. The secondary purpose is that Ms Student sought and received approval to complete STRATEGIC MARKETING through a Work Integrated Learning project to conducted at, TRAVEL AGENCY, where she worked as a Travel Consultant. By opting to complete STRATEGIC MARKETING through a Work Integrated Learning project, Ms Student has now further developed her graduate skills and qualities which is the main purpose of UNIVERSITYs WORK INTEGRATED LEARNING course.

1.2 Authorisation
This report was proposed in correspondence to Ms Jones, Manager, TRAVEL AGENCY and Mr Lecturer, of University on 12 March 2010. The report was authorised by both parties. This report complies with UNIVERSITYs course requirements for both

Marketing Strategy and Work Integrated Learning .

1.3 Scope
Ms Student worked full-time as Travel Consultant at TRAVEL AGENCY from 12 October 2009 to 24 May 2010. This particular store was operating at a loss for nearly three years, and as such Ms Student was keen to undertake this project to both enhance her graduate skills and qualities, as well as, develop a marketing strategy that offered pathway to return the Store to consistent profits.

Work Integrated Learning Marketing Strategy

Student

This project was also designed around fulfilling the course requirements of Strategic Marketing, which, builds upon and consolidates previously acquired knowledge of marketing concepts and principles. The course introduces the theory and practice

underpinning strategic analysis and marketing strategy alternatives. Students are required to conduct a full marketing audit for a selected organisation and to produce a marketing plan to address a specific organisational marketing strategy related problem (Marketing Strategy: Course specification 2009, p. i). The research for this report has been drawn from a number of sources including: the culmination of knowledge from subjects studied across a Marketing Major, personal communications, marketing texts, lecture notes, websites, journal articles and personal experience working in the TRAVEL AGENCY store.

1.4 Limitations
The author of this project, Ms Student, was employed within the organisation that is being studied. Unprejudiced judgement is tantamount to the preparation of a successful marketing strategy. To overcome this limitation the author has ensured neutrality whilst undertaking this project and that the interpretations made have been done so from an observational perspective, culminating theoretical marketing methodologies and factual evidence based research and findings.

2 TRAVEL AGENCY Limited Overview

TRAVEL AGENCY is the best known travel agency in Australasia (Gottliebsen 2010). The company was founded in 1981 by Graham Turner, the former owner of budget bus tour company Top Deck. In 2008 TRAVEL AGENCY recorded a profit of AUD$1.45 billion and they employ around 12,500 staff, based in six countries: Australia, New Zealand, United Kingdom, United States, Canada and South Africa. TRAVEL AGENCY Ltd also owns operates numerous separate travel brands: TRAVEL AGENCY, x, x, x, (TRAVEL AGENCY 2009).

Work Integrated Learning Marketing Strategy

Student

2.1 TRAVEL AGENCY

The specific store that this marketing strategy relates to is TRAVEL AGENCY (the Store). This store commenced operations in around 2001 and has six staff members, comprising one store manager, one experience travel consultant and four novice travel consultants. The staffing base has incurred a 100 per cent turnover since December 2009. The store was also been operating at a loss for nearly three years, however, industry kickbacks received from the airlines sales made through the store mean that it remains financially viable to TRAVEL AGENCY Ltd (Wahon, G 2010, pers. comm., 9 March). The Store services a wide range of clientele from co-located business professionals, passing tourists, international students from the surrounding areas, right through to general members of the public commuting through the Town Hall train station (Wahon, G 2010, pers. comm., 9 March). The Town Hall store is located at Shop St City, Suburb, Australia and. The sponsor contact is Ms Jane, Store Manager, TRAVEL AGENCY. Ms Jones email address is jane.jones@TRAVELAGENCY.com.au and her contact telephone number is (00) 0000 0000.

3 Introduction to strategic marketing

This section offers descriptions and an overview of the key concepts in strategic marketing for the benefit of readers from non-marketing backgrounds.

3.1 A definition of marketing

Marketing is the methodology that organisations use to determine which of their products or services will attract the interest of customers, as well as the selling style used, communications strategy and business development. Marketing is now accepted as an integrated process through which organisations create value for customers and build strong customer relationships in order to capture business from customers in return 6

Work Integrated Learning Marketing Strategy (http://wikipedia.org).

Student

3.2 Relationship marketing and the marketing mix

Gronos (1990) defined relationship marketing as the establishment, maintenance, and enhancement of relationships with customers and other partners, at a profit, so that the objectives of both parties involved are met (Gronos 1990 cited from: McClymont 2009). Relationship marketing has in essence been developed so that organisations can attempt to rejuvenate the close relationships that once existed when neighbourhood corner stores were the order of the day only in a more modern way. To achieve this relationship marketing utilises customer databases, targeted mass communications and employee training and development (Neal et. al. 2004). The marketing mix is the primary teaching tool for the study of marketing. It breaks down the core principles into what is known as the 4 Ps of marketing as follows (Dann & Dann 2007): 1. Product: is the physical good or service benefit offered by an organisation to their customers; 2. Price: is both the financial and non-financial cost (such as, the social time cost, effort and psyche) of acquiring a product or service from an organisation; 3. Place: relates to the physical distribution, which is known as the logistics function in marketing (Nitchov 2001, p.88); and 4. Promotion: is the marketing activities performed by an organisation to inform its prospective and existing customers about their product or services and ultimately convince them that these will satisfy their wants or needs (Nitchov 2001).

3.3 Philosophy, strategy and tactical levels of marketing

There are three defined levels of marketing as follows (McClymont 2009): 1. Philosophy: The philosophy should ensure that organisations place the customers 7

Work Integrated Learning Marketing Strategy

Student

needs at the centre of their business decision-making model. This will enable the focus to be on the creation, communication and delivery of value to that consumer, whilst still contributing benefits to the organisation and stakeholders (McClymont 2009); 2. Strategy: The marketing strategy should orientate the organisational

decision-making primarily around the customer needs. In order to achieve this, an organisation must obtain information that helps them to understand the needs of their customer. This data is obtained through a range of analyses; namely internal and external analyses (McClymont 2009); and 3. Tactics: Tactical marketing involves market research, adjusting the organisational marketing mix, and incorporating relationship marketing elements (McClymont 2009).

3.4 Ethics in marketing

Ethics is a branch of philosophy that tries to address questions about morality and essentially classifies what is right or wrong (http://wikipedia.org). Modern marketing recognises that all stakeholders need to be considered in an organisations marketing strategy design, which has given rise to ethical considerations now being given the deliberation they deserve in business decision-making (assumed).

3.5 Other core concepts such as marketing orientation, innovation and adoption, segmentation and positioning
A major determinant of a successful marketing strategy is an organisations ability to both understand and manage the impact key marketing concepts can have on their strategic outcomes (Dann & Dann 2007).

3.5.1 Marketing orientation

Kohli and Jawrski (1990) define the marketing orientation as the activities involved in implementing the marketing concept (cited from: Dann & Dann 2007, p. 16). In basic terms this means that the organisations goal is to match the ideals and values to the 8

Work Integrated Learning Marketing Strategy

Student

modern day marketing definition that is, the creation of value for customers, and simultaneous benefits for organisation and stakeholders through strategy and practice. This entails conducting a full range of analyses to enable development and implementation of an informed marketing strategy that will benefit organisation and all of its stakeholders (McClymont 2009).

3.5.2 The consumer decision process

The consumer decision process describes consumers behaviour and the stages of psychological analysis customers go through in order to reach a purchase decision. A four-part model of this consumer behaviour was developed by Belk (1975) to simplify and translate these processes so they can be understood in the marketplace as follows (Belk 1975 cited from: Dann & Dann 2007): 1. Situation: this describes the external factors that influence the consumers decision such as, their financial position; 2. Product: the consumers perceived value of what has been offered to them; 3. Person: who the consumers are themselves, ie. their internal thought processes, knowledge, skills, capabilities and life experiences; and 4. Behaviour: their behaviour is grouped into potential outcomes: purchase; trial; continued research; or rejection (Belk 1975 cited from Dann & Dann 2007).

3.5.3 Innovation
Innovation is a critical aspect to understand when dealing with strategies that involve the following business operational changes (Dann & Dann 2007): new products; new markets for existing products; and significant changes to existing product offerings (Dann & Dann 2007, p. 18).

If an organisation fails to understand how customers will adjust to their product or service 9

Work Integrated Learning Marketing Strategy

Student

innovations they can suffer loss of sales due to the lack of an effective strategy (Dann & Dann 2007).

3.5.4 Segmentation and positioning

Market segmentation is the foundation of a marketing strategy. The goal of

segmentation is to provide relevant information to enable an organisation to develop effective marketing programs for specific consumer groups. For example, the purchasing needs and processes of a 14 year old consumer, when compared with those of a 60 year old consumer are likely to differ greatly, as are those from varying income brackets. Given this, an organisation can expect to adjust their marketing strategy according to the needs of their current or desired consumer segments (Neal et. al. 2004). It is also important for an organisation to understand how their products or services are positioned in terms of consumers perception, eg. offering good value for money, or a prestige/luxury item. Positioning also refers to how an organisation compare with

competitors who are the closest providers of alternative product offerings (Neal et. al 2004).

4 Stakeholder selection and ethical decision making

The following two sub-sections provide an overview of the process for stakeholder selection; ascertains who they are for the Store; and provides an explanation of the ethical decision-making framework and identifies a potential ethical issue within TRAVEL AGENCY.

4.1 Stakeholder selection

Stakeholders are any parties that have an interest in the operation of an organisation. They can initially be divided into two categories: primary stakeholders, who are vital to the ongoing continued existence of the organisation; and secondary stakeholders, who are not directly involved in the transactions of the organisation (Dann & Dann 2007). 10

Work Integrated Learning Marketing Strategy

Student

After determining which category each stakeholder falls into, the next area to establish is the context for each of the Stores stakeholders. This knowledge will assist the Store in effectively setting strategic business objectives that are responsive to new opportunities or threats in the market place. Marketing stakeholder theory suggests that there are four contexts that describe the interaction between an organisation and its stakeholders, these are: 1) production context; 2) consumption context; 3) environmental context; and 4) regulation and control context (Dann & Dann 2007). The Store needs to understand the type of power and active or passive dichotomy they face with each of their stakeholders so that it can anticipate the relative power, legitimacy and urgency each stakeholder may potentially exert. The active or passive dichotomy assesses whether stakeholders are passive, active, or switch(Dann & Dann 2007). Passive stakeholders are influenced by the Stores actions, where as active stakeholders are able to exert and influence the organisations activities, and switch stakeholders are those who are able to switch between passive or active influences (Dann & Dann 2007). Appendix I gives a breakdown of the Stores stakeholders and their relevance according to the stakeholder theory.

4.2 Ethical decision making

Velasquez, Moberg, Meyer, Shanks, McLean, DeCosse, Andr, and Hanson (2008) had a dialogue and debate at the Markkula Center for Applied Ethics at Santa Clara University, which resulted in the development of a framework for ethical decision making which is outlined in Figure 1 (McBain & Balassone 2008).

11

Work Integrated Learning Marketing Strategy

Student

Figure 1: Ethical decision-making framework

(Adapted from: McBain & Balassone 2008)

Based on the Ethical Decision-Making Framework one potential issue has been recognised. This issue stems from TRAVEL AGENCYs marketing strategy - lowest airfare guarantee and price-beat promise. The impact of this strategy on the one hand draws more clients to purchase their travel needs through TRAVEL AGENCY, conversely it is cuts to consultants commissions. The fact is that all consultants are on a base (or retainer) salary of $26,500 per annum and commissions are paid on top of this. For the customer this is strategy is beneficial because they can access the lowest airfare guarantee and a price-beat guarantee for all aspects of their travel and for the company this strategy offers them the leading edge in the travel market, however for the consultant this has greatly changed the pressure and dynamics on commission based sales (Neal et. al. 2004). 12

Work Integrated Learning Marketing Strategy

Student

TRAVEL AGENCY has attempted to balance the impact of their marketing strategy on consultants commissions by offering a commission payment of $15 per international fare price-beat, however for stores in certain areas, dependant on the market segment they are servicing this can mean high volume workloads for inadequate rewards when considering consultants only earn 10 per cent of the sales value after they have made over their cost of seat. The cost of seat is the ongoing costs of having the consultant work in their designated store such as, rent, computing equipment, staff training and development, and building and financial management. The cost of seat varies from store to store and ranges from around $7,000 to $10,000 per consultant, per store. The commission paid to the consultant is 10 per cent of the commission earned after their cost of seat, e.g. if they have already made $8,000 in commission for the store (which as their cost of seat), for each price-beat sale they are making after that, they receive $1.50 of commission in their actual pay packet (McDougall, P 2010, pers. comm., 28 January). TRAVEL AGENCY is classified as a price-beat store in organisational speak, which means that the demographic, or market segment, it services is a high volume of clients that are extremely price conscience. Price-beat clients conduct extensive research to find the cheapest price with other competitor travel providers before coming to the Store and making a purchase using the price-beat policy of TRAVEL AGENCY to secure the lowest possible cost. TRAVEL AGENCY is gaining customer loyalty from their policy, generating more competition in the market place and receiving sizable financial kickbacks from airlines that are based on the volume of sales, rather than the final sale price (Kotler et. al. 2004). In these price-beat stores staff can potentially work very long hours for very little financial reward unless a more profitable market segment is added to the client base. In addition, this impact is taking a toll on staff retention, evidenced by the Store having 50 per cent staff turn around every six months with an average staffing level of only six consultants when fully staffed (Wahon, G 2010, pers. comm., 9 March).

13

Work Integrated Learning Marketing Strategy

Student

Another potential flow-on effect from this high staff turn-over is the costs of recruiting and training new staff, as well as the loss of loyalty by clients who establish a good relationship (assumed). The standard hours worked by staff at the Store on average, 9 hours per day, this equates to 45 hours per week. The national minimum wage of $14.31 per hour, which means based on the average work week, the minimum salary of a consultant must be equal to $643.95 per week (www.fairwork.gov.au). Some novice consultants are not making that much with low commissions in high price-beat areas, which presents a potential ethical issue for TRAVEL AGENCY from the effect of their marketing strategy on wages for consultants (McBain & Balassone 2008). There are two alternative actions that have been identified at solutions to this potential ethical dilemma: 1. The Utilitarian Approach which would produce the most good and do the least harm. This could be achieved by the Store targeting a market segment that were less price conscience, which would result in consultants earning higher commissions and the company still reaching good sales levels (McBain & Balassone 2008). 2. The Common Good Approach: this would entail an outcome that benefits all parties. To achieve this, the Store would continue to readily service the

price-conscience market segment, as well as attract another less price conscience market segment (McBain & Balassone 2008).

5 Internal analysis
The framework used to conduct the internal analysis of the Store will be the balanced scorecard approach. Kaplan and Norton (1996) introduced the concept of the balanced scorecard which represents a movement away from the traditional focus on financial returns to a four-way strategy that recognises there are more issues leading to long-term success in the business than per-unit profit (cited from: Dann & Dann 2007, p. 76). By taking this approach the Store will be able to balance the need for profit with the need to provide a quality products and service to their clients whilst continuing to innovate and grow profitability (Dann & Dann 2007). Figure 2 provides an diagrammatic view of the 14

Work Integrated Learning Marketing Strategy elements that a balanced scorecard comprises.
Figure 2: Four elements of the balanced scorecard

Student

(source: Dann & Dann 2007)

5.1 Financial analysis

Timely and accurate financial data will always be a primary business tool for the Store (Balanced Scorecard Institute (n.d.)). The financial health of the organisation should always be a central focus of its ongoing survival as it is the sole purpose its existence for nearly all organisations. In order to be financially successful in the long-term most organisations need to maintain a financial return and a value benefit to their customers and stakeholders (Dann & Dann 2007). A basic financial assessment shows that TRAVEL AGENCY has been in financial troubles almost consistently from the period of January 2007 to August 2009. Over this period the largest profit recorded was $2,721 in March 2007, the largest loss recorded was -$110,776 in November 2007 which was due to an act of staff fraud and the average monthly operating profit made was -$8,647 (TRAVEL AGENCY Ltd, 2008-09). Figure 3 provides an graphical representation of profit performance for TRAVEL AGENCY from January 2007 to August 2009.

15

Work Integrated Learning Marketing Strategy

Student

Figure 3: TRAVEL AGENCY Profit Performance January 2007-January 2009

(Adapted from: TRAVEL AGENCY Ltd, 2008-09) Comparing the Stores profitability to that of the TRAVEL AGENCY Ltd Company as a whole paints a very different picture. In 2007-06 the gross operating profit was $151.6 million, in 2007-08 it was $212.9 million and in 2008-09, even during the global financial crisis, it was $99.8 million (Bruce Brown 2007, Statement to Australian Securities Exchange 2009 & Statement to Australian Securities Exchange 2010). TRAVEL AGENCY revolutionised the retailing of international air-travel in Australia by shifting to a model where profitability was driven by volume rather than margins. Initially they built a price advantage by bypassing ticketing wholesalers, seeking out less well-known airlines, and also by arbitraging price differentials across markets (Andr, S 2007, p. 175-194). The business structure of TRAVEL AGENCY Ltd retail outlets is somewhat unique in that the operation of the Store can still be financially viable to the company even though it may operate at a loss. The reason behind this unique situation is that the companys largest profits are derived from kickbacks received from airlines which are based on the number of ticket sales, rather than financial targets (McDougall, P 2010, pers. comm., 28 January). Given the overall financial success of this unique business model, the decision whether to focus on becoming a consistently profitable store is primarily with the staff and management at the Store rather than with the company as a whole (assumed).

16

Work Integrated Learning Marketing Strategy

Student

5.2 Customer relationship analysis

The analysis of customer relationships is a challenge for large companies as they have to balance the interests of their customers with the goals of the shareholders the customers would in general want to purchase products or services at the lowest possible price, whilst shareholders want a higher price so they can maximise their return on investment (Dann & Dann 2007). The Store is in an advantageous position in this regard as a result of the unique TRAVEL AGENCY Ltd business model so long as they sell tickets, they are making a valuable contribution toward company kickbacks, and shareholders will remain happy (assumed). Customer relationships can be quite difficult to measure because they are not as tangible as financial figures; in order to attempt to resolve this Kaplan and Norton (1996) developed the value proposition analysis tool. Value proposition analysis aims to assess what benefits the organisation is offering its customers. The equation for this proposition is as follows (Kaplan & Norton 1996 cited from: Dann & Dann 2007):

Value = Product or service attributes + Image + Relationship

The Stores customer relationships will be examined by conducting the value proposition analysis. The results of the analysis are outlined in Appendix II.

5.3 Internal business issues analysis

Internal business analysis focuses on the organisations internal capabilities. There are numerous analysis models that have been developed, however for the purposes of this report the focus will be on the core competency analysis (Dann & Dann 2007 and McClymont 2009). Core competency analysis is the method used to ascertain the central value proposition that is created, communicated and delivered to the customer. The core competencies are the skills, technologies and capacities that organisations mix in a variety of ways, to deliver value and remain competitive in the market place (Dann & Dann 2007).

17

Work Integrated Learning Marketing Strategy

Student

Prahalad and Hamel (1990) developed a model of three tests to aid an organisation to determine its core competencies. Measuring the Store against three the tests found its competencies to be as follows (Prahalad & Hamel 1990 cited from: Dann & Dann 2007, p. 91): 1. Is the Store able to satisfy the needs of a wide variety of markets? Yes, the Store is able to satisfy the needs of a wide variety of markets. This is due to the umbrella of core competencies that they operate under for TRAVEL AGENCY Ltd at large. TRAVEL AGENCY is Australias largest traditional high street travel agent, operating a stable of global leisure, corporate and wholesale travel brands, including the flagship TRAVEL AGENCY brand. It has differentiated its brand into a number of market segments including retail, wholesale, corporate and online (TRAVEL AGENCY Limited (Travel agency (n.d.). 2. Can the Store contribute significantly to the value offered to its clients? To a lesser extent, yes, the Store can contribute to the value offered to its clients. The Store can ensure the highest standards of customer service, expertise and experience in the consultants that are employed. This aspect is of course of prime importance to clients but, what is of even greater importance is the products and services that are offered and these are controlled by TRAVEL AGENCY as a whole (assumed). 3. Are the Stores core competencies difficult to copy by competitors? Overall, no, the Stores competitors such as, STA Travel, and online travel providers such as, Webjet and Expedia and, even neighbouring TRAVEL AGENCY, Student Flights and XTravel retail outlets are able to offer very similar products and services utilising comparable technologies and resources. The competitive edge that the Store has over most of their competitors is the TRAVEL AGENCY brands lowest airfare and price-beat guarantees; however it must be kept in mind that the Store is also in competition with other proximal TRAVEL AGENCY retail outlets (assumed).

18

Work Integrated Learning Marketing Strategy

Student

5.4 Innovation analysis

The innovation analysis, also referred to as the learning and growth perspective, examines corporate culture attitudes to training and development within the organisation. The impetus behind this assessment is that, in the current climate of rapid technological change, it is necessary for knowledge workers to be in a continuous learning mode (Balanced Scorecard Institute (n.d.)). The Stores characteristic traits of organisational innovation include (Dann & Dann 2007, p. 94): Staff development and training: All novice consultants complete an intensive one month training program that is conducted through written exercises in their designated store and attendance of training workshops at their closest head office. Over the course of this training period consultants are exposed to the following (Urion, A 2009, pers. comm., 13 October): o utilisation of the various computer operated booking systems; o sales technique; o products and services they will be selling; o meeting with suppliers and airlines representatives; o learning about a number of international and domestic destinations; o meeting with senior staff to learn about their experiences; and o legal obligations, policies and procedures of the company and the industry. In addition to the novice development training, consultants receive ongoing training on destinations and products (Urion, A 2009, pers. comm., 13 October). Measures of quality improvements: Customer feedback is managed centrally through the head office. The company offers a feedback area on the website and also accepts verbal, written and emailed feedback. Customer feedback is passed onto retail store area leaders so they can praise individual consultants or look investigate areas that may require improvement (Wahon, G 2010, pers. comm., 9 March).

19

Work Integrated Learning Marketing Strategy

Student

Internal organisational competition based around benchmarks and quotas: There is friendly competition promoted through daily distribution of key performance indicators (KPIs) within area groups. Further internal competition is generated

between these area groups at monthly product night and award nights, known as buzz nights (Wahon, G 2010, pers. comm., 9 March).

6 External analysis
According to David Aaker (2001) the role of external analysis is to evaluate investment decisions on where to compete, whether existing businesses should be liquated, exploited, maintained or invested in for growth (Aaker 2001 cited from: Gerhardt 2002). Given that these factors are almost entirely controlled by TRAVEL AGENCY Ltd, an in-depth external analysis is not relevant to the development of a marketing strategy specific to the Town Hall store (assumed). There are four elements that comprise external analysis, these are; 1) Segmentation, 2) Brand loyalty, 3) Competitor analysis, and 4) Environmental analysis. A brief outline of these elements and their relevance to the Stores external position are explained in the following sub-sections (Gerhardt 2002).

6.1 Segmentation
Effective segmenting is essential to an organisation remaining competitive in the marketplace. It allows identification of the segments that they are currently servicing, how to best address their needs, as well as identify potential new segments they may wish to target in order to achieve business goals (Gerhardt 2002). Segments can be divided into profile subgroups according to demographic, geographic, and psychographic and behavioural groupings (Kotler et al. 2004). The Stores current market segmentation is shown in Appendix III.

20

Work Integrated Learning Marketing Strategy

Student

There is an issue with the Stores current marketing strategy and the lack of attention given to its market segmentation. TRAVEL AGENCY Ltd develops a separate

marketing strategy for each state in Australia and TRAVEL AGENCYS falls under city state (Wahon, G 2010, pers. comm., 13 March). The concern with this is that there are a diverse range of market segments across the state and this one strategy does not always cater to the needs of all the Stores market segments and the clientele that it services (Kotler et. al. 2004). TRAVEL AGENCY services a large proportion of Indian and Chinese nationals due to its proximity to China Town and numerous English schools and Business colleges (Segment 1). These clients are culturally accustomed to a bargaining for their purchases (Rao 2006). This means that when they see an advertised price they expect to come into the store and bargain for a better deal. All of the companys marketing is aimed at attracting customers into the store with the lowest seasons prices with the cheapest (and usually least accessible) accommodation options, which is known as a pull strategy (Kotler et. al 2004). The expectation is for consultants to use their sales skills to up-sell the client to a higher cost product. This strategy is not successful in satisfying the needs of clients from bargaining cultures as they are accustomed to bargaining down the set price and the pull strategy often results in them being understandably frustrated with the transaction (assumed). In the past the Store had an additional segment it serviced, corporate clients. These clients have left as the relevant staff turned-over. This segment averaged much higher commissions of around 20 per cent per transaction and provided a steady income stream for consultants (Scheij, Y 2009, pers. comm. December).

6.2 Brand loyalty

Brand loyalty is possible the greatest asset any organisation can gain. Customers that become brand loyal do so based on a range of competitive factors such as, quality, price, consistency, and/or service standards. From a store perspective it has been observed that a large number of the clients seem to drift frantically from store to store seeking a trusted travel consultant/client relationship. There are some who have remained loyal to the 21

Work Integrated Learning Marketing Strategy

Student

store, however most have left as the turn-over of staff continues at a rapid rate. This phenomenon supports Gerhardts (2002) theory where the inconsistency of consultants working at the Store reduces brand loyalty from clients (Gerhardt 2002). As mentioned in the previous segmentation section, the Stores Segment 1 clientele tend to be distrusting of the pull strategy. The resultant impact of this also reduces their brand loyalty to the Store (assumed).

6.3 Competitor analysis

It is important to evaluate the competition on a regular basis. The evaluation of

competitors entails detailed analysis of their objectives, strategies, commitment, expenditure, perceived image, as well as the advantages and disadvantages of their approach. This will give the organisation tactical information required to leverage

themselves against their competition in areas such as, product or service offerings, customer problems and unmet needs (Gerhardt 2002). The most common form of competitor analysis is known as Porters Five Forces. This model shows the impact of varying factors on competition in an industry and therefore what the attractiveness of an industry. The more intense the competitive factors, the less profitable and attractive an industry is to enter. In general Porters Five Forces is used as a tool to identify whether new products or services have the potential to be profitable (McClymont 2009). As these factors are managed as by TRAVEL AGENCY Ltd they will not be analysed in this report. As noted earlier in the internal business issues analysis section, the way in which the Store can contribute to the value offered to its clients above and beyond its competition is ensure the highest standards of customer service, expertise and experience in the consultants that are employed. The make-up of the products and services that are offered are of course controlled by TRAVEL AGENCY as a whole and therefore monitored by them (Wahon, G 2010, pers. comm. 13 March).

22

Work Integrated Learning Marketing Strategy

Student

6.4 Environmental analysis

The marketing environment is what surrounds and impacts upon the organisation. There two levels with the external marketing environment, the macro-environment and the micro-environment (Marketing Teacher Ltd (n.d.)). The micro-environment is the factors that directly influence the organisation such as suppliers, customers, and local stakeholders. It is essentially the relationship between an organisation and the forces that impact this relationship. It is more of a local relationship; hence the organisation may exercise a degree of influence (Marketing Teacher Ltd (n.d.)). The macro-environment includes factors that can influence an organisation, but that are out of their direct control. These have been broken down into: Political, Economic, Socicultural and Technological factors. For example, most organisations cannot Laws are

determine laws, they can only lobby or engage in a trade organisation.

continuously changing, and therefore organisations need to be adaptable. In order to perform an environmental analysis, what is known as a PEST (Political, Economic, Socicultural and Technological) analysis is performed (Marketing Teacher Ltd (n.d.)). A PEST analysis for TRAVEL AGENCY is in Appendix IV.

7 Setting strategic objectives

Strength, Weakness, Opportunities and Threats (SWOT) analysis is a tool for auditing an organisation and its environment. This is the first stage of strategic planning and objective setting that helps to focus on key organisational issues. Strengths and weaknesses are considered internal factors, whilst opportunities and threats are considered external factors (SWOT analysis (n.d.)). See Appendix V for the Stores SWOT analysis.

23

Work Integrated Learning Marketing Strategy

Student

After conducting a SWOT analysis the next step is setting strategic objectives. These objectives need to focus the organisation on specific goals over a period of time and will motivate staff to meet them. The most common technique for setting these objectives is known as SMART objectives. A description of the requirements of SMART objectives is as follows (www.learnmarketing.net): 1. Specific: They should specify what the organisation wants to achieve. 2. Measurable: It must be measurable so the organisation measure whether they are meeting the objectives or not. 3. Achievable: They have to be achievable and attainable. 4. Realistic: It has to be realistically achievable with the existing resources 5. Time: Set a timeframe to achieve the objectives. The Store should gain a stronger base of customers that offer a more profitable return for the time exerted by 1 July 2011. This will be measured by increase from the average store commission of 8 per cent per transaction (which equates to 0.08 per cent for consultants), up to 20 per cent per transaction. This is realistic and achievable with the reintroduction of servicing the more profitable corporate market segment in addition to existing clients. This would also alleviate the potential wage issue identified in the Ethics section of this report. The objective directly relates to the Stores financial and internal business objectives and the stakeholders that will be affected are clients and employees (Dann & Dann 2007). As the objective of servicing a more profitable market segment and the type of stakeholders that will be affected, Ansoff (n.d.) indicates the organisation should focus on a market development strategy in order to seek a new market segment for their existing products and services (Ansoff (n.d.) cited from: Dann & Dann 2007). One of the inevitable consequences of operating in a competitive marketing environment is the need to engage other organisations in battle for market share and the consumer dollar (Dann & Dann 2007, p. 144). The Store will not be able to seek additional 24

Work Integrated Learning Marketing Strategy

Student

resources or change the business model of TRAVEL AGENCY itself, consequently the most logical competitor confrontation tactic should what Kotler and Singh (1981) refer to as the non-confrontational tactic. Using this tactic the store will focus on meeting the needs of their customers rather than competitive rivalry. This style of strategy can implemented through market penetration and customer satisfaction (Dann & Dann 2007).

8 Developing a marketing strategy

Developing a marketing strategy is based on extensive marketing analysis and the strategic objectives set based on the results of the analysis. There are numerous strategies that may be employed depending on the strategic objectives of the organisation. The Ansoff Matrix suggests that there are four types of growth strategy that depend on whether it markets new or existing products in new or existing markets (http://tutor2u.net). These are strategies are shown in Figure 4.
Figure 4: Ansoffs Matrix

(Source: http://tutor2u.net) Market development strategies are based on expanding the existing user base by acquiring new customers from new segments (Dann & Dann 2007, p. 162). It is a growth strategy that borders between market penetration and market product development. This offers a non-confrontational tactic allows an organisation to build on their existing value offered and organisational knowledge without having to commit to any sort of restructure or changes to products or services. Since the Store is aiming to increase their share of an existing market with existing products and services the most 25

Work Integrated Learning Marketing Strategy

Student

Marketing Development Strategy is the most appropriate one (Dann & Dann 2007). The marketing development strategy of target acquisition is the only one that the Store can successfully employ as all of the other growth and value-adding strategies are based on the premise that the organisation can adjust the products or services it provide as part of its value offering to clients. TRAVEL AGENCY Ltd makes and controls all of these decisions; therefore the Store cannot implement them on a local level (McClymont 2009, assumed). In general strategic terms, utilising existing products has a number of advantages for the organisation; they know the product/service offering well and are able to create core competencies in the areas which could lead to superior value offering; it can create economies of scale because of the large volume of production of the same product or service; and, it is the least expensive strategy when compared to a new product development strategy. It addition to these advantages it is also cheaper to manipulate the Four Ps for an existing product than develop a whole new product offering from scratch and reduces the organisations vulnerability to sudden changes in market conditions. Conversely, there are risks that stem from new market segment with which the firm has limited experience (McClymont 2009). There is an element of risk involved with any new proposed strategy. To counteract this, the Store should endeavour to remedy one aspect of their promotion so as to satisfy the needs of their Segment 1 clients. A successful trial was conducted during the research of this report, whereby the pricing on the Stores window boards was adjusted from the lowest price up to the average price. This segment responded well to this approach as they were frequently able to obtain a cheaper price than what was advertised and this met the cultural-norms of their purchasing behaviours (Kotler et. al. 2004). Adopting this minor change will increase the retention of this segment and ensure the Store retains a fallback position (assumed).

26

Work Integrated Learning Marketing Strategy

Student

9 Marketing plan
There are a number of potential barriers to marketing planning. These are as follows (Dann & Dann 2007): A lack of understanding regarding the marketing function; Lack of in-depth analysis; Lack of systematic planning approaches; Organisational barriers such as organisational culture; and A lack of key skills and knowledge necessary to develop and implement quality strategic marketing plans. These barriers can now be overcome through the information contained in this report. The responsibility for this marketing action plan will primarily lie with the Store Manager. Secondary responsibility will lie with the Stores consultants. For the

TRAVEL AGENCY marketing action plan see Appendix VI.

10 Conclusion
This report has been developed by Ms Student for the TRAVEL AGENCY Store. Ms Student was inspired to develop this report because the Store was operating at a loss almost consistently for 3 years. It is a comprehensive marketing tool for the Store to implement and return to profits. The report was also developed as part of a work integrated learning project and it will be presented to the University as evidence in competency in their Marketing Strategy course, and will therefore be assessed. By completing the subject in this manner the student hopes to extend her graduate qualities whilst also making a scholarly contribution to the workforce and the wider community. 27

Work Integrated Learning Marketing Strategy

Student

Through this report it has been found that although the Store has been operating at a loss, due to TRAVEL AGENCYs unique business structure where profits are derived from kickbacks received from airlines which are based on the number of ticket sales, rather than financial targets. Extensive analysis was conducted right across the internal and external operations of the Store. One potential ethical issue was identified where the company is in danger of breaching minimum wage standards in some situations as an unforseen consequence of their current marketing promotion, the lowest airfare and price-beat guarantees. In order to counteract this potential and generally ensure higher returns the overall strategy recommends a utilitarian approach that seeks to gain the business of an additional market segment, the corporate travellers. This segment will be more profitable and require less effort to be exerted once their custom is gained. Another issue was identified during the segmentation product which was that the needs of the Stores Asian student segment were not be satisfied with the current promotional approach. A successful trial conducted that involved adjusting prices the window boards and so further recommendation has been made to implement this on a permanent basis. This would ensure that the Store effectively manages its existing clientele and increase retention levels in this segment. The recommend marketing action plan has a 12 month implementation timeframe for the Store Manager carries primary responsibility over.

28

Work Integrated Learning Marketing Strategy

Student

List of References
Birch, D (n.d.), Profiling and Analysing Segments, University of Southern Queensland, viewed 21 August 2009, <http://www.University.edu.au/course/material/mkt1001/summersms/develop_profiles.ht m>, and is based on Summers, J, Gardiner, M, Lamb, CW, Hair, JF, McDaniel, C 2009, Essentials of Marketing, 3rd Edition, Thomson, Victoria Brown, B 2007, 2007 Annual Report: Chairs Review, TRAVEL AGENCY Ltd Australia, Brisbane, QLD Dann, S & Dann, S, 2007, Competitive Marketing Strategy, Pearson Education Australia, Frenchs Forest, Australia David, FR 2003, Strategic management, Ethics, 2009, Wikipedia, viewed 5 August 2009, <http://en.wikipedia.org/wiki/Ethics> TRAVEL AGENCY Limited (Travel agency) (n.d.), viewed 23 June 2010, <http://au.finance.yahoo.com> TRAVEL AGENCY (logo) (n.d.), viewed 26 January 2010, <www.travel agency.com.au> Gerhardt, P 2002, External and Competitor Market Analysis, A Paper Presented in Partial Fulfillment of the Requirements of OM 814 Marketing Strategy Practice, WA, USA Gottliebsen, R 2010, Why TRAVEL AGENCY is soaring, Business Spectator, viewed 26 January 2010, <www.businessspectator.com.au> Grnroos, C 1990, Service Management and Marketing: Managing the Moment of Truth in Service Competition, Lexington Books; Lexington, Mass Kotler, P, Brown, L, Adam, S & Armstrong, G, 2004, Marketing (6th edn.), Pearson Education Australia, Frenchs Forest

29

Work Integrated Learning Marketing Strategy

Student

Marketing Strategy: Course specification (2009), University of Southern Queensland, Toowoomba, QLD Marketing Teacher Ltd (n.d.), Marketing Environment, viewed 26 June 2010, <www.marketingteacher.com> McBain, J & Balassone, J 2008, Product safety case studies, Santa Clara University, Markkula Center for Business Ethics, viewed 22 July 2009, <http://www.scu.edu> McClymont, H 2009, Marketing Strategy (STRATEGIC MARKETING), University of Southern Queensland, Toowoomba, QLD National Minimum Award Wage, 2010, Fair Work Australia, viewed 5 April 2010, <www.fairwork.gov.au> Neal, C, Quester, P & Hawkins, D 2004, Consumer Behaviour: Implications for Marketing Strategy, McGraw Hill, North Ryde, NSW Nitchov, A 2001, Marketing for Small Business Success, Tertiary Press, Croydon, VIC Rao, P 2006, Marketing and multicultural diversity, Ashgate Publishing Ltd, Hampshire, England Sammartino, A 2007, 'Retail, in Dick, H. & Merrett, D. (eds.), The Internationalisation Strategies of Small-Country Firms: The Australian Experience of Globalisation, Edward Elgar: Cheltenham, UK, pp.175-194 Learn Marketing .net (n.d.), Smart Objectives, viewed 27 June 2010, <www.learnmarketing.net> Statement to Australian Securities Exchange August 26, 2009, TRAVEL AGENCY Limited Australia, Brisbane, QLD Statement to Australian Securities Exchange January 13, 2010, TRAVEL AGENCY Limited Australia, Brisbane, QLD

30

Work Integrated Learning Marketing Strategy SWOT analysis (n.d.), Marketing Teacher Ltd, viewed 25 June 2010, <www.marketingteacher.com> Tutor2U (n.d.), Ansoff Matrix, viewed 27 June 2010, <http://tutor2u.net> Travel Agency (2007-2009), TRAVEL AGENCY Ltd, City, State What is the Balanced Scorecard? (n.d.), Balanced Scorecard Institute, viewed 15 August 2009, <www.balancedscorecard.org/>

Student

Work Integrated Learning: Course specification (2010), The University of Southern Queensland, Toowoomba, QLD

31

Work Integrated Learning Marketing Strategy

Student

Appendix I: TRAVEL AGENCY Stakeholder Analysis

Stakeholder Category Context Consumption context Production context Production context Production context Value Offered Travel expertise and coordination. Lowest airfare guarantee and price beat promise Salary, commissions, training, incentives and company shares Potential financial gain Preferred contractual agreements Assurance to train all employees in trade compliance and legal agreements for consumer pricing arrangements Employment for large numbers of inexperienced individuals and provision full training to them in the form of an apprenticeship One-off donations or ongoing sponsorship of non-profit activities, as well as training and employment to community Active/Passive Dichotomy Switch

Clients

Primary

Employees Shareholders Suppliers Australian Consumer and Competition Commission

Primary Primary Primary

Active Active Switch

Secondary

Regulation & control context

Passive

Department of Employment, Education and Workplace Relations

Secondary

Regulation & control context

Passive

Community and Non-government organisations

Secondary

Environment context

Passive

(Adpated from: Dann & Dann 2007)

32

Work Integrated Learning Marketing Strategy

Student

Appendix II: TRAVEL AGENCY Value Proposition Analysis

Product or service attributes Functionality The Store is able to service both corporate and recreational travellers, fulfilling all of their travel needs (Scheij, Y 2010, pers. comm., 1 November). Quality The Store is able to offer a range of products of differing qualities from budget right through to luxury travel (assumed). Time Simple domestic bookings or fares can be performed on the spot Complex bookings can take 24-48 hours to turn-around Image Largest travel agency in Australia (http://wikipedia.org) Appeals to consumers who love to travel for holidays (Hourigan, H 2010, pers. comm., 15 March) Trustsed family brand (assumed) Lowest prices (assumed) Relationship Actual product delivery Well trained sales staff that are able to provide destination information and itinerary guidance (Urion, A 2009, pers. comm., 13 October). After-sales service Dedicated emergency travel service International network available to all customers (Scheij, Y 2010, pers. comm., 1 November)

Customer perception Preference to retain a regular consultant (assumed)

Price Lowest airfare guarantee (McDougall, P 2010, pers. comm., 28 January) Price-beat promise for all travel needs (McDougall, P 2010, pers. comm., 28 January)

(Adapted from: Dann & Dann 2007)

33

Work Integrated Learning Marketing Strategy

Student

Appendix II: TRAVEL AGENCY -Market Segmentation

Segment 1 Young Asian students Asia 18-25 Segment 2 Young professionals

Variable Region Age Sex Family lifecycle

Segment 3 Young families

Segment 4 Baby boomers

Segment 5 Foreign travellers Outside Australia 18-60 Male and Female Single or married $20,000-$65,000+ (full range of disposable income levels)

Eastern sea-board Eastern sea-board Eastern sea-board 21-35 25-40 Male and Female Married with children under high school age 55-75 Male and Female Married or divorced with adult children

Male and Female Male and Female Single or Married Single

Income

$55,000+ $40,000-$65,000 $20,000-$35,000 (household $55,000+ (Moderate to high (low disposable income) (low to (moderate to high disposable income) moderate disposable income) income) disposable income Competitive, outgoing and ambitious. Image means a lot. The motto is to work hard and play hard. Image, convenience Family and reasonable budget is important, but so are activities for their kids.

Studies and works hard. Personality Likes family gatherings.

Social, likes smaller gatherings Seeks new of friends. Wants experiences. to outsource to minimise stress. Convenience, a little luxury, taste Moderate to high Image, variety / new experiences, taste, convenience Low to high

Benefits sought

Price

Convenience

Usage Rate Moderate Loyalty status

Moderate to high Low to moderate Medium, likes to Low, very value stick to the brands conscience that are known low low

Trust and price

Very loyal, once they like a product or service they stay Various with it for a long while. high high

Profitability moderate

(Source: Birch (n.d.), Tourism Australia, 2009, assumed)

34

Work Integrated Learning Marketing Strategy

Student

Appendix IV: TRAVEL AGENCY - PEST Analysis

Political Factors

Potential changes to company taxation Continued agreement with ACCC on lowest airfare guarantee Impact of global financial crisis on industry Financial viability of TRAVEL AGENCY Lack of bilingual or multilingual consultants for international clientele Potential booking system changes by suppliers (Adapted from: Marketing Teacher Ltd (n.d.))

Economic Factors

Sociocultural Factors

Technological Factors

35

Work Integrated Learning Marketing Strategy

Student

Appendix V: TRAVEL AGENCY - Strength, Weaknesses, Opportunities and Threats Analysis

Internal Strengths Financial stability of TRAVEL AGENCY business model Lowest airfare and price-beat guarantees Part of an international network Store is able to offer a full range of travel products for a variety of budgets Well trained sales staff that are able to provide destination information and itinerary guidance Opportunities Many other stores also suffer high staff turn-over Some customers now becoming dissatisfied with the lack of human interaction with online purchases TRAVEL AGENCYs training program is more comprehensive than its competitors Introduction of a more profitable market segment External

Weaknesses Operating at a loss almost consistently for 3 years High-turnover of staff Potential ethical issue with low commission earning staff at risk of receiving salary below the national minimum wage Undifferentiated products and services

Threats Close proximity to several other retail travel stores (including TRAVEL AGENCY brands) Online travel bookings Global financial crisis Continued inappropriate promotional strategies for the Asian market segment

(Adapted from: Marketing Teacher Ltd (n.d.))

36

Work Integrated Learning Marketing Strategy

Student

Appendix VI: TRAVEL AGENCY Marketing Action Plan

The priority order in which these tasks need to be undertaken Low High What specific tasks need to When the tasks should be be undertaken completed Adjust pricing on all window boards Training for all consultants on how to manage corporate travel accounts Make contact with a range of small and medium size businesses that are proximal to the Store and offer exclusive relationship Search government gazette notices for small size agencies tendering for travel services Purchase list of potential corporate clients from marketing firm 31 July 2010 31 July 2010

High

30 September 2010

Medium

31 October 2010

Medium

31 December 2010

(Adapted from: Dann & Dann 2007)

37