HTM 2121 TOURISM AND HOSPITALITY MARKETING

Ng Tak Fong Tracy 11134286DNg Wu Melody 11088299D

Pang Cho Yi Josie 11251185DTang Wai Yung Julia 11258501D

Wong Yat Lo Yvonne 11160766D

SEM006 Group DTRAVEL AGENT- LOCAL TOURSun Green Ltd

CONTENT

External environment of the company SWOT Analysis Competitor analysis Objectives Target market Marketing strategies and tactics Implementation milestone Budget Controls References

EXTERNAL ENVIRONMENTAL ANALYSIS Demographic trends

From 2007-2011, --population increases by 2.7% --real wage increases by 4.1%

No. of Mainland students in HK will increase in the future

Economic trends Global --Recovery --World GDP has increased by 2.7% in 2011 Hong Kong --GDP and CPI have an increasing trend Inflation

Subsidies & benefits will be provided

EXTERNAL ENVIRONMENTAL ANALYSIS Ecological trends

No. of fish pound, hiking paths & wetland decreases

Losing natural scenic spots

Technological trends Social networking & smartphones are popular

Can be used as our means of promoting

Social-cultural trends Environmental and conservation awareness: one of

the core belief and values in Hong Kong People aware more of the importance of the surrounding

environment

SWOT ANALYSIS

STRENGTHS

Comprehensive services offering

High quality tours High competiveness

COMPREHENSIVE SERVICES OFFERING

Transportation• Standard shuttle bus service• Comfortable and convenient

Catering• A variety of drinks• A nourishing meal

Insurance• Guarantee compensation

Safety• Trained & qualified tour guides• Immediate emergency treatment

HIGH QUALITY OF TOURS

Professional tour guides Educational activities Broaden their horizons Learn how to appreciate the nature Raise their environmental awareness &

being environmental friendly

HIGH COMPETIVENESS

Provide different packages Provide a tailor-made itinerary Cooperate with some green

organizations ( educational talks and workshops ) Build brand awareness and

differentiate the products

WEAKNESSES

Lack of brand awareness High pricing policy

LACK OF BRAND AWARENESS

A novice in the nature-based tour market

Low brand and image

Keen competition (E.g. Sunshine Company & HK Traveler High loyalty & good reputation)

HIGH PRICING POLICY

Limited budget + the need of ensuring high quality services raise tour price to cover the cost

High price decreases attractiveness of our tours

Short-term: market share can be maintained but profitability decreases

Long-term: profitability will be maintained

OPPORTUNITIES

Increasing income of families• Disposable income ↑, more willing to spend money

Technological help in promotion• Message can be spread out easily through

Internet

Increasing awareness of environmental protection

THREATS

Reducing natural scenic spots• Decreasing the variety of destinations for our

tours• More difficult to differentiate our products by

choosing a different destination

Strong competition• A challenge for a new company to enter the

market and compete

COMPETITION

COMPETITION- COMPETITOR ANALYSIS 4 main competitors:

• Sunshine Holiday Travel Ltd• Hong Kong Tours Limited• Traway Travel Limited• HK Traveler

After looking at the marketing mixes of four competitors, we can conclude that:• most competitors are not mainly focus on promoting the importance

of environmental protection (Only HK Traveler focuses more on that scoop)

After looking at the SWOT analysis, we can conclude that:• SunGreen Ltd has competitive advantages over the competitors

hold information talks with some local green organizations before tours

tours are focusing more on the environmental protection scoop

OBJECTIVES Work with 2 different green organizations and

schools in Kowloon District in first year and expand to New Territory next year

Fully cover the cost for primary students group tours at the end of first year while 90% of the cost can be covered for family tours

Generate 50% of the brand awareness within the business target market by the end of next year

Capture 20% of primary student groups from main competitors

Develop and introduce more than 8 routes for customers in second half year

 TARGET MARKET

Market Demographics: • Focusing on the consumer market only

Particular segments:• Primary target : Primary school groups • Secondary target : Low-to-middle income

family with 1-3 children (aged below 8)

MARKETING STRATEGIES AND TACTICS (4PS)

MISSION

Give a chance for tourists to explore the nature & know the importance of environmental protection

Raise their environmental awareness

POSITIONING

We are positioning SunGreen as the most suitable partnership with school groups and families within this nature-based tour market

Focusing on the quality of service and the delivery of messages to customers

STRATEGY

Product differentiation• Workshops and talks will be provided for school groups• Interactive and educational activities for

family

PRODUCT

3 Tours: educational and meaningful Designed for enhancing parent-child

interaction The three tours are:

1.Geopark Hiking Tour2. Strawberry Garden Tour3.Green Trip

TOUR 1: GEOPARK HIKING TOUR

Tour Name Geopark Hiking TourTalk Topic (the message we deliver)

To promote landform and rock conservation

Itinerary Sai Kung Country ParkTarget customers

Primary student groups ( for senior students)

Group size Minimum 25Pick-up points School, arrange travel bus Duration Approximately 4 hours

Walking distance: 2-3 kilometers

Tour price HK$330-350

TOUR 2: STRAWBERRY GARDEN TOURTour Name Strawberry Garden TourTalk Topic (the message we deliver)

To promote organic farming and the importance of being environmental friendly

Target customers Primary student groups(especially for the juniors ) & family with children

Group Size Minimum 25Itinerary -Visit strawberry garden(learn how

to plant in a natural environment) -Experience the goodness of strawberries from the farm. -Make different kinds of desserts.

Tour Price $150-170 ($80/ pound of strawberries, no entrance fee)

TOUR 3: GREEN TRIPTour Name Green TripTalk Topic To enrich their understanding of

organic agriculture & promote the importance of recycling

Target customers

Primary student groups & family with children

Group Size Minimum 25Itinerary Section 1 Recycling paper making

Section 2 Bread makingSection 3 Practical farm workSection 4 Vegetable plot visit, Sprout making demonstration and farm produce purchase

Tour Price HK$158

PRICING

Use the competitor-based approach

Destination Price (per person) No. of customersSai Kung Country Park $330-350 30Strawberry Garden $150-170 25Hok Tau Village $158 25-30

Destination Price (per person) No. of customersSai Kung Country Park $300-330 * 30Strawberry Garden $200-230 * 25Hok Tau Village $150* 25-30

Main competitors: Sunshine Travel and HkTraveler(*The price does not include catering service)

SunGreen LtdWe set higher price, but provide better service

PROMOTION

March • Prepare for the Easter Holiday

Free talks• Guest speakers from Green Power and

Green Action After March

• Talks only given for schools who join our tour

PROMOTION

Green Student Leader Campaign• invest $10,000• select 20 students as green students • $500 awards for each student

PLACE

Send leaflets to primary schools

• Green Action• Green Power

Green group

• Groupon HK• BEECRAZY

Group Buying website

INITIAL SET-UP COSTLicense and other services from the Travel Agents Registry

-Application: $630-Renewal of license per month: $485-Total cost: $(630+485*11) = $5,965

Rental fee $4,800 per month (Office in Lai Chi Kok Cheung Kong Factory Building)

Office furniture $12,000

Telecommunication system $3,000

Fax, copying, printing machines $5,000

Total initial set-up cost $30,765

MARKETING BUDGET

OPERATING COST

Rental fee $4800 per month

Shuttle bus service -For the tour to Hok Tau Village in Fan Ling: $1400 (each round trip)-For the tour to Sai Kung Country Park: $1600 (each round trip)-Each shuttle bus can carry a maximum of 61 people

Tour guide monthly salary $18,000+commission (3 tour guides)

Insurance fee ( for company) $500 a year

Advertising expense $32500 + $300 per talk

MARKETING BUDGET

Month 1 2 3 4 5 6 7 8 9 10 11 12Market 1 (Primary School)

The total sales revenue of this market can cover 70% of our costs.

The total sales revenue can cover 90% of our costs.

The total sales can fully cover the costs.

Market 2 (Family with children)

The total sales revenue of it can cover 50% of our costs.

The total sales revenue can cover 70% of our costs.

SALES FORECAST

The End Thank You!!