The product concepts and innovative marketing created the leader in the tourism/leisure industry like the Balearic Adventure in Spain. Balearic implements a information system which help the management to study consumer preferences and needs both on the local and regional market bases and services that are customized to excel the expectations of the consumers (David, 1995). To achieve management buy-in, there is marketing plan to launch Balearic in the new market with relevant recommendations to obtain the 15% raise in profits and to expand the present market for the tourism/leisure industry, as one of the leading firms.
Along with the dynamic marketplace, consumers change as well, becoming more knowledgeable and demanding than before. The consumers today are critical and active in the decision they make. Specifically with their purchase of daily needs has proven that they are critically analyzing the market. In turn, the company management had transferred their focus on their consumers so as to stay successful in the business. The transforming world that has then put much focus on the value of efficient marketing, this shift means that firms have to reformulate completely their traditional business purposes and aims from being focused on the consumers (Lowenstein, 1997).
There is an existing competition that is intense and evident in the management and marketing department of firms that are really providing everything they can to create their brands. There are some competition that forces brand names to be tougher than others because of the name recognition and product loyalty. All forms of communication became more engaged in marketing communications that includes training, advertising, literature, product promotion and other significant contact to marketing plan (Goldberg & McCalley, 1992).
Furthermore, customers are incline to purchase what is presently familiar to them (Kotler and Armstrong, 2001). A well-advertised and fine brand may have the competitive advantage from a lesser advertised brand name. But then, a less popular brand can also have an advantage over cost, provided that they are cheaper than popular brands (Keller, 1998). Market studies are most of the time performed the introduction or application of a promotional campaign so as to offer specific or general definition of the features of the kind of market that belongs to the category in the market as well as the reply of the consumers to the product that are accessible in the market (Lowenstein, 1997). The company is an organization that caters travelers that enjoys island adventures like Balearic. The offered activities are: cultural travel, biking, hiking and backpacking and food and wine tours.
Mission/ Vision (what business are we in )
The mission of Balearic Adventures is to provide high quality adventures services to its clients and in the long run develop their company as a brand in the tourism and travel industry. Based on the study of Aaker in 1995, brand equity should discuss the following issues like loyalty and satisfaction, popularity/leadership, analysed value, analysed quality, firm’s associations, brand awareness, market share and distribution coverage (DeMooji, 1997). There are three different aspects of brand equity: the notion that the financial value of a brand is a distinct asset that is able to represent the financial sheet of the company, it is referred to as brand valuation. The second aspect is the degree of attachment and brand loyalty of the consumers that characterizes the associations and beliefs of the consumers of the brand. Moreover, the brand is perceived to have its own identity and personality because of its emotional connections with the consumers that develops through its nature. The development, creation, maintenance and implementation of successful products and its concepts are presented and communicated to the target market that leads to constructive brand image that symbolizes the identity of the brand which is appropriate to have a successful product (Duffy and Ketchand, 1998).
Balearic should chase branding approaches are much more dependent on their staff in the production of their brand than companies involved in the forming of branding frameworks. The abilities of firms to have a deep understanding about their stakeholders and staff will definitely make them different from other firms. In branding, staffs are usually believed as the architect of the marketing communication and branding. In branding, the attitudes and behaviour of the employees has a significant role in the implementation of branding. For example, to more successfully fulfil their work in the development of the brands, they will have to be more aware of the value of their brand. In fact the concept of the brand is not dependent on its context, thus, this notion of branding is the same with the concept of the products. However, it is the execution of the strategic approach to produce and customize the brand (Barwise and Robertson, 1992).
Situation Analysis (where we now) Analytical Models—Tows Summary
|-Europe’s fast growing Economy
-Huge man power pool available
-Global work space at effective prices
-Rich Heritage & Culture
|-Strict Government Policy
-Lack of great Infrastructure facilities
|-Huge market potential for retail
-Expansion of stores across the subcontinent
|-Tough competition from local players
-Difficult to make way on the minds of clients
The strong competition in the leisure/tourism industry is the main threat for Balearic plus the low industry growth. There are some companies like Go Ape, a competitor which is a very aggressive competitor, trying their best to obtain a bigger share in the market and maintain it. In order to obtain their objectives that are offering high quality services at a cheaper price.
Even though, the rivalry in the European market is very stiff, this would be a great chance for Balearic to attain the control in the industry. The company was able to raise their share in the market, in terms of international and local markets, the firm used their knowledge and experience as they make it even hard for their competitors.
As part of the company’s weaknesses is the concentration of the similar type of leisure and tourism companies in the European market. This can negatively affect Balearic if the competing firms obtain the market share if the clients modify their buying behaviors. In order to be different in the global markets, Balearic could apply probable risk of decreasing sales.
The main strength of Balearic is the quality of the services they provide to their clients from 21-45 years old. This is the main target consumers of the firm. Though, there are some competitors that have challenges in providing satisfaction to their market segment. Balearic coped with these challenges by providing services at a cheaper price. The clients can also associate with he good standard of services, through their own needs and wants.
Marketing/ corporate objectives (where do we want to be)? SMART?
Since Balearic Adventures wants to establish a brand in the travel and tourism industry, the company has developed SMART marketing objectives which are Specific, Measurable, Achievable, Realistic, Timed. The SMART objectives of Balearic Adventures are in five years:
· Gain profits when it comes to the margin of operation which is 10%.
· Gain 20% market share in Europe.
· Client advocacy.
· Gain more stakeholders.
· Achieve employee motivation
There are some elements that proposes the competitive advantage that is changing the products to brands to firms and that a transformation from branding to company brand in practice, product differentiation requires positioning not just the products itself, on the other hand, the whole company (Goldberg and McCalley, 1992). The values and emotions signified by the company has become the primary aspects of the methods of differentiation and the company could moves going to the mainstream. There are different benefits that can be obtained by Balearic from a well-organized branding approach. It will provide Balearic an holistic form for conceptualizing and creating the different marketing practices by which companies like them show who they are and what they do (Goldberg and McCalley, 1992). Thus, branding can provide Balearic the strong foundation for developing an appealing and logical pledge to all shareholders and stockholders. It serves as an instrument to help Balearic’s sub-cultures across the physical borders, useful, permitting the company to better position and react to the challenges of global recognition and regional disparity. In a fast changing and competitive industries that demand new resource of transparencies and involvement, branding provides a strong base for a company to develop and express the originality through its dependable connections with all stakeholders (Kotler and Armstrong, 2001; Laforet and Saunders, 1994). An efficient strategy for branding provides the chance for Balearic and their stakeholders to develop an efficient source of income.
The distribution channel or channel communications function using a couple of system where the transfer of information to the consumer and bounces back to the source of information (Goldberg & McCalley, 1992). In more simple words, marketing communications and its tasks is like a system of feedback, which will let Balearic to produce information to their clients. As a reaction to this transmitted information, clients provide some behaviors and reaction. Furthermore, the task of the internet or online portal for the needs of advertising and marketing of the Balearic will most probably an outcome to raise the consumer base, return of investment and level of satisfaction. Moreover, if Balearic’s clients becomes better clients, that are more responsive, productive and knowledgeable, the company’s service quality will definitely be enhances or the clients and company (Bowers, Martin & Luker, 1990). There some of the strategies that Balearic may obtain the cost benefits through the improvement of their efficiencies and process, obtaining authentic large source access of cheaper materials, creating he vertical integration and optimal outsourcing decisions or preventing some extra costs. If rival companies are not able to lessen their prices by the same cost, the company will be able to maintain competitive edge on cost leadership.
Channels of distribution are another strategy to be considered in this marketing plan. It is an organized collection of agencies, units and institutions within the macro-environment of the company, which performs the tasks that help develop marketing of the product (Duffy and Ketchand, 1998). Therefore, with the completed groundwork by the ways of the product analysis and market analysis, the firm would be in the level to classify the channels it would employ to reach the target segment of their product. Apparently, because it is particularly and specifically customized as an adventure, the Balearic would not concentrate its advertising strategy purely at the whole industry but on their target segment only.
With this, Balearic should implement the two element channel design; other adventure camp would be required to offer their services (Goldberg and McCalley, 1992). This design of the channel would permit the functions of the promotion to be transformed among the members of the channel. The place is established would offer clients convenience that pertains to the services, information and other related services.
The firm would create the marketing channel based on this channel design, this will allow profit as the model will help develop the firm’s marketing channels, and financial growth by presenting details of the actual price of dealing with the business with there marketing channels (David, 1999). This new model would examine the major marketing channels and its relationships and costs like the purchased services, discount structures, pricing, and forms of sales presentation. This evaluation of the costs of marketing channel would permit Balearic to classify unprofitable and profitable marketing channels and re-distribute accounts among change, eliminate channels.
The most important perspective of a business is international marketing that aim to expand through global means. The introduction of various global communication technologies as well as the rise of globalization further supported this possibility. However, while this may be an effective alternative for business growth, several factors would have to be considered. In particular, international corporations should realize the significance of obtaining local knowledge (David, 1999). Various cultural aspects like religion, education and values should be considered by multinational companies so as to implement marketing approaches that meet local needs and interest. By means of strategic management, international companies can modify their global product formulations, means of promotion and pricing strategies based on specific cultures. The concepts of global integration, local responsiveness and adaptation have been stressed in this discussion. These concepts emphasize that traditional business and marketing practices, though successful in domestic markets, may not be effective among foreign consumers. By transforming their traditional marketing approaches, these companies were able to operate in various countries and established a strong following among foreign consumers.
The appropriate function of this marketing plan provides a larger capability to reach the distributors and clients with the right experience. If a firm will be capable to use new strategy using information technology in its marketing plan, this will be the foundation of the benefits of the business deals of the firm. Generally, the client using the Internet can be a stockholder, employee, client, retailers, vendors and consumers, the real foundation of the improvement of the firm’s business value through the use of the Internet. Moreover, using information technology can make competitive advantage to a business firm.
In the past, the paradigm of a business is focused on maintaining the margins and prices high. Moreover, the conventional business trend was created to be appropriate in the segmentation period where services are created for a particular target. This is the direct counterpart of mass marketing (Bowers et al, 1990). In this new strategic substitute, the concentration is on the simple yet good service quality that is motivating to the masses of consumers. The introduction of mass marketing further stresses the fault of multinationals that adapted their traditional marketing strategies to foreign markets.
In order to penetrate foreign markets, global businesses would typically identify market segments that are similar to that of their traditional targets. As mentioned, certain factors like culture, preferences and needs tend to differ from one location to another. Thus, applying the same marketing approach to a similar yet foreign market segment do not generate the same results. This then makes the market segmentation business paradigm ineffective in the context of international marketing.
Aside from mass marketing, other localization strategies may be applied by international businesses. One is by changing the marketing mix of the company in order to be suitable to the international sources to regional market conditions. The multi-national firms like Balearic can modify their enhanced international brands into a new industry by ways of transforming the formulation of their products, packaging or prices. In return, this will augment the appeal of their products to both company and clients. In doing so, this strategy of globalization, on the other hand, needs the normal investment that is considerable. This will create the firms as the local firms. Another probable strategy is the localization by enhancing the new source that market-focused. This strategy is done when the firm is attained by local companies like Balearic that will make them an international brand (Aaker, 1995).
Marketing Mix Strategy
Excellent Balearic adventures.
Unfortunately Spain has disorganized structure that leads to the cramped up room in the city (Barwise, 1992). With the weird longitudinal expansion, the firm have though of the need to expand in Spain and other city of its small location and thus resulted to improvement. First, the booming economy and with responding clients to this development by becoming more enthusiastic onto leisure, adventures and tourism could provide a difference to the whole organization by providing it at an early stage (Bowers et al, 1990). Secondly with the motive of style being targeting to different strata of people in the society, Spain could be good option due to its multi lingual, multi cultural environment. Thirdly, as a city Spain has its own technological advancements with its strides creating it a rational place for a firm like Balearic to develop its market position. Finally, Balearic plans to develop both of the location and the firm’s position and being the main city on the west part of the region to create an ideal place for setting up the whole adventure park since there are products like souvenirs, clothing and food can be offered in places which is growing financially and which have some valuable tourist spots.
The goal of Balearic is to grow and expand its operations in a place where there is high percentage of population of the clients in the middle class and thus it should implement new pricing strategy in order to motivate clients, while providing the value of the services therefore, adding the local tourism possibilities and in the practice of developing its profits (Campbell et al, 2002).
The place like Spain had diverse varieties of business, most of these companies cope up with the demands of the middle class people. These consumers have larger number of services that is accessible for the broad range selections that is accessible (Campbell et al, 2002). For such industries, pricing is worked at the medium level that is they are cost too expensive so that clients will stay away from them or not too cheap where clients will doubt its value, on the other hand, at the median level where the worth is present and also allures costing of the product in order for clients to purchase the services.
Balearic has to create a lasting impression to the industry which is not familiar to the companies. They need to focus on their target market which they have to deal with. As for their target clients for the services that they offer (Crosby et al, 2003), they need to use the methods like promotional or ads campaigns , discount coupons, different marketing techniques to encourage their clients, also, numerous of stunts in advertising so as to create a great image to the local market.
The company shall have very much inspired workforce, they will be proud to be working with the firm since they are Balearic people.
The company uses the benefits of technology that is greatly innovative that maintains competitive advantage. Therefore, the process is in continuous state of flux that is changing and adapting the demands in the industry.
Provides great adventure experience to the travelers in the Balearic island.
Control and Evaluation
The objective of the control stage in a marketing plan is maintaining the marketing plan in the set directions for it. In this control stage, the marketing management compares the outcome of the marketing plan together with the marketing objectives to classify some divergences. The marketing supervisor is the one responsible for the divergence acts to examine and check the negative results and explores some solutions. In the evaluation stage, there will be monitoring and measurement that is needed as integrated to the target aims and schedules of the marketing plan.
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