The paper "Marketing Theories and Its Application at Contiki Company" is a great example of a case study on marketing. Contiki Company is one of the biggest companies in Australia which have segmented their market so that they can target an age group which consists of people aged 18 to 35 years. It is attracted to this age group because of the many benefits which they offer to its market segment. Some of the benefits include high-quality services with affordable prices that are offered to customers who are traveling to various locations across the world and the opportunity to associate with knowledgeable staff while traveling (Bennett 2001, p 85). The main purpose of this report is to analyze the Contiki Company, its background, marketing theories, and its application and the way the company deals with competitors in the market.
In addition, it analyses how the company utilizes the effectiveness of the marketing mix in the company, the strength of competitors and the bargaining power of buyers/sellers. Lastly, this report has reviewed various recommendations which the company should apply so as to improve its competitive advantage in the market.
Such recommendations include the advanced way of booking online, carrying out market research and using prices as marketing strategies (Pierre & Pendergast, 2010, p 120). 2. Situation Analysis 2.1 Introduction and Background Contiki is a coach tour holiday company that operates in various parts of the world such as North America, Europe, Asia, New Zealand, Egypt, Russia, and Australia. This company was formed in 1962 and has remained as a market leader due to high-quality services which they offer to its customers. Because of high competition in the market the management of this company, after researching its market extensively, decided to segment its market and focus on that segment.
The company has also utilized technology in marketing itself so that it can be known globally. Furthermore, the company has established a website (www. contiki. com) which emphasizes the reason why you cannot afford, as a customer, to miss spending your holiday with the company (Mylneand and Llewellyn 2009, p 70). 2.2 Analysis The company has been losing customers because of various reasons. Such reasons include the increasing number of competitors in the market.
After carrying out market research which was done by interviewing customers and observations, the researchers found out that the competitors in the market were focusing on customer satisfaction as their first priority. More to the point, the company did not apply marketing strategies that could prevent these competitors from entering the market. The second reason which made the company lose its customers was because of the poor corporation and thus their employees end up handling customers carelessly. Besides, customers were not satisfied with the quality of the products and services they receive making them prefer other alternatives.