Marketing Plan

Uniqueness Travel Agent

HTM 2121 Tourism and Hospitality

Marketing

Chan Hoi Yi, Emily 10554711D

Chan Wan Lun, Janice 11354512D

Tai Yip Chung, Johnson 11516279D

Tsang Siu Hang, Steven 11566166D

Uniqueness Travel Agent

Mission To become the leader of the Asia Pacific Region

travel agent for businessObjectives To acquire 30 tours during the peak season of

2013 To achieve 150,000 net profit during the financial

year of 2013-2014 To maintain the cost within 70% of the total

revenue.

External Environment Analysis

Examine opportunities and threats Consists of:

Macro environment Demographic, Political, Economic, Social-Cultural,

Technological and Natural Micro environment

Suppliers, Marketing Intermediaries, Publics, Customers and Competitors

Macro Environment Analysis

1. Demographic Opportunities:

Huge market with continuous growth 41,921,310 visitors arrival in 2011, +16.4% (HKTB visitor arrival

statistics,2011) High spending MICE visitors with significant growth

1.43 million MICE visitor arrivals in 2010, +22.8% per capita spending of HK$8,475, +25.9% compare with

overnight visitors (HKTB annual report 2010/11, 2011) Mainland China is the dominant market

41.8% MICE visitors come from mainland China (HKTB annual report 2010/11, 2011)

Marketing strategies need to be developed for reaching them

2. Political Opportunities:

Streamlined VISA restriction for visitors to Hong Kong Visit Hong Kong for visa-free Over 170 countries or territories Frequent business travelers with APEC Business Travel Card

Threats: Travel agent license need to be renewed annually

Macro Environment Analysis

3. Economic Opportunities:

Rapid economic growth in China

Threats: Uncertainty in the USA and European economics Minimum Wage Ordinance in Hong Kong

Macro Environment Analysis

3. Social-Cultural Opportunities:

Increasing health conscious Half-day relaxation itinerary

4. Technological Opportunities:

Advancement and increase popularity of E-business Increase number of Smartphone users

491.4 million smart phones sold in 2011 (Brownlow, M., 2012)

Threats: Careful management on electronic word of mouth

Macro Environment Analysis

6. Natural Threats:

Heavy air pollution threaten visitors away A survey conducted with tour guides (Yung, C., 2006) 50% thought Hong Kong having heavy air pollution

Macro Environment Analysis

Micro Environment Analysis

1. Suppliers Opportunities:

Various high reputation suppliers in Hong Kong Car rental companies Michelin recommended dining restaurants Luxury brands

Threats: High dependence on multi-suppliers High negotiating cost incurred in the business

2. Marketing Intermediaries Opportunities:

Advantages from advancement in E-business Cost effective e-marketing

Threats: Heavy competition on e-marketing

First priority cannot be assured

3. Publics Threats:

Complains from environmental groups Limousines service

Micro Environment Analysis

4. Customers Opportunities:

Rich but time-conscious business travelers Offers luxury itinerary package yet with high flexibility to

satisfy the business travelers’ Threats:

Demanding and high expectation Pay for high quality service Any mistakes would bring dissatisfaction

Micro Environment Analysis

5. Competitors Opportunities:

None have single focus on business visitors Without local tours’ e-booking or reservations

services Co-production cannot be found

Allow alternation between choices Create their unique tours

Threats: Numerous retail outlets or cooperation with hotels

Highly accessible by customer

Micro Environment Analysis

Target Market

Extensive service

Expensive

MinimumService

Less Expensive

Fig.1

Fig.2

Target Market

Locals Visitors

Business Travelers (MICE)

Organizers

Participants

Individual

Group

The reason is …• Hong Kong is an international city Government support

Hong Kong Trade Develop Council (HKTDC) Host more than 110 exhibitions each year Attracting 62,000 exhibiting companies and 5 million visitors (TDC, 2012)

Visitors’ purpose of visiting by Major Market Areas Jan-Jun 2011(HKTB, 2012)

Tourism Expenditure Associated to Inbound Tourism Jan-Jun 2011 (HKTB, 2011)

Product

• 4 Tour Itineraries:

One day tour for dining and sightseeing One day tour for sightseeing, shopping

and dining One day tour for culture and dining Half day tour for relaxation

Price

Businessmen – high purchasing and spending power

High quality service in luxury approach Tangible resources enhance overall

satisfaction High cost prestige pricing

People

Place

• Official website - E business

• Booths in Hong Kong Convention and Exhibition Centre and Hong Kong Asia World Expo

• Shanghai Jinjiang Tours Co., Ltd

Promotion• Advertising strategies HKTDC - Set up information counter in Expo Drive

Launching itineraries competition

Establish joint promotion with Shanghai Jinjiang Tours Co., Ltd

Advertisements on Hong Kong ECHO and E- Mice China business magazines

Uniqueness official website, Facebook account, Forum, Apps, Yahoo search engine

Promotion• Personal selling Strategies

Lucky draw session in HKTDC counter

Incentive programs

• Direct marketing strategies

Direct mailing and on-line retailing

Partnership

Hong Kong Trading Development Council

Shanghai Jinjiang Tours Co., Ltd

F&B partnership like Jumbo Kingdom, Grand Café etc

Fotomax

Dah Chong Hong Holdings Limited (DCH)

Paypal, VISA, Master

Milestone

Revenue HK$

Tour 1-Tour for dining and sightseeing ($4500 per person x 3 person s per tour x 60 tours per year )

$810,000

Tour 2- Tour for sightseeing, shopping and dining($4500 per person x 3 person s per tour x 110 tours per year)

$1,485,000

Tour 3- Tour for culture and dining($4200 per person x 3 person s per tour x 40 tours per year)

$504,000

Tour 4- Tour for Relaxation (Half Day)($4300 per person x 3 persons per tour x 30 tours per year)

$387,000

Total Revenue $3,186,000

Less: Expenses  

Promotion Expenses  

-Website design $10,888

-Mobile app $36,000

-Competition prize $2,000

-Magazine •Hong Kong ECHO •E - MICE China

 $57,600$115,200

-Yahoo Search Engine $24,000

-Miscellaneous $10,000

Total promotion expenses $255,688

   

BudgetOperation expenses  HK$

-F&B ($1,800 per person x 3 person s per tour x 240 tours a year)

 $1,296,000

-Spa ($1,750 per person x 3 persons per tour x 30 tours a year $157,500-HKTDC partnership $100,000-Office Rental (Bank Centre Mong Kok) ($20,480 per month) $245,760-Utility $18,700-Insurance $30,000-Car rental (HK $17,000 per month) $204,000-License free •Application free for a Travel Agents license•12month Travel Agents License fee ($485 per month ) •Business Registration Fee (1 year)

 $630$5,820$450

Total operational expenses $2,058,860

Human Resource expenses  

Salaries: Financial Department•Financial Assistant ($12,000 per month)Sales & Marketing Department •Product Executive ($11,000 per month)•Sales representative($15,000 per month)Operational Department •Tour guides ($15,000 per month)•Drivers ($13,000 per month)•Booth receptionist ($12,000 per month)

  $144,000 $132,000$180,000 $180,000$156,000$144,000

Total Human Resource expenses $756,000Total Expenses ($2,870,548)

Net Profit (Total Revenue –Total Expenses) $215,452

Sales Forecast

Post-tour questionnaire Comprehensive information about their

satisfaction towards the tours, suggestion for the itineraries and identifies effective partnerships

Internal audits Reviewing monthly sales, checking monthly

website traffic and monthly budget control Website traffic Indicates the effectiveness of our e-marketing

strategies like Facebook/WeiBo promotion and Yahoo searching priority

Sales and budgets Strictly monitored to assure they are keeping

within estimated range and moving towards the objectives

Monthly control

Control

Thank You

Brownlow, M. (2012). Smartphone statistics and market share . Retrieved March 5,2012 from http://www.email-marketing-reports.com/wireless-mobile/smartphone-statistics.htm

HKTDC.com - All Hong Kong Events, Retrieved March 18, 2012 from The Hong Kong Trading Development Council, Web site: http://www.hktdc.com/info/trade-events/ci/HK-upcoming/en/All-Hong-Kong-Events.htm

Hong Kong Tourism Board (2012, January). Visitor Arrival Statistics - Dec 2011. ,pp.1-22.

Hong Kong Tourism Board (2011, January). Annual Report 2010/11. , pp.52-59.

Tourism Expenditure Associated to Inbound Tourism Jan-Jun 2011 (2011). Retrieved March 20, 2012 from Hong Kong Tourism Board, Web site: http://tw.partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=140001&cat_id=6352&logs=yes&type=FREE

Visitors purpose of visiting by Major Market Areas Jan-Jun 2011 (2012). Retrieved March 20, 2012 from Hong Kong Tourism Board, Web site: http://tw.partnernet.hktb.com/pnweb/jsp/doc/listDoc.jsp?doc_id=141874&cat_id=6287&logs=yes&type=FREE

Yung, C. (2006). Air pollution puts tourism in jeopardy, poll reveals . Retrieved March1, 2012 from http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=14563&sid=7136726&con_type=1&d_str=20060320

Reference