Innovation Entrepreneurship and Competitive Advantage in the Entrepreneurial Venture - Case Study Example

Marketing Plan JPT Tour Group Marketing Director Your name Table of Contents 1.Introduction iii 2.Company overview 1 3.Segmentation, Targeting and Positioning 2 4.Marketing Mix 5 5.Conclusion and recommendations 9 References 12 1. Introduction 1.1 Purpose The purpose of this report is to elaborate on a marketing strategy for tourism and adventure services offered by JPT Tour services, who are aiming at gaining a competitive edge in the tourism market. 1.2 Scope This report will discuss JPT Tour Group as a company, the services they offer and competitors. At the same time, the marketing strategies employed in terms of segmentation, targeting and position of the tourism and adventure services will be addressed. Additionally, in order to be successful in the market, then the company ought to employ the 4Ps in their marketing mix. Product, price, promotion and place are well elaborated in the report for they give the company a better platform to compete in the market. 1.3 Background JPT Tour Group has been in the market for a very long time. Doing business have not been easy especially with the financial crises that has hit many regions of the world today. Additionally, competition in the market has also contributed much to the deterioration of the business. This being the case, the company has decided that, the only way out in remaining relevant and competitive in the market is through the use of marketing strategies that cannot be matched by her competitors. This is the main reason why; they have opted to market tourism and adventure services that are very different from those offered by the competitors. 2. Company overview JPT Tour Group was founded in 1982 as a day touring specialists in Queensland. This company offers transfers, quality coach services,, language commentary, photographic and brochuring services. This company owns and operates Australian Day Tours and JPT Tours Internationally and Gray Line Brisbane and Gold Coast and even the famous Queensland Golf Service. JPT Tour Group major tourism markets are Japan, China, Singapore, Europe and America. Most importantly, the company also boasts of strong presence in the domestic market. This company is well known for being the largest operator in Southeast Queensland which deals with brands like Australia Day Tours and Gray Line Gold Coast and Brisbane, which are known all over the region. The company’s services are diverse, from a fleet of minibuses, luxury air-conditioned coached, charters, four wheels drive and cruise vessels. For example, the Taste of Paradise which is a newly launched tour has increased the competitiveness of the company. This tour contains tantalizing and unique fresh fruits tastings, cruising water ways and driving through the rainforests and cuddling wildlife. The company has skilled and experienced employees who are behind the success of the company. With committed and experienced labor force, the company have been able to achieve numerous strides as far as having satisfied customers are concerned. This company therefore concentrates on tourism and adventure services. Many people young and old are looking for avenues where they can go for leisure and holidays. This therefore means that, there is a ready market in tourism and adventure services. This report addressed this section whereby, to gain competitive advantage the company must undertake a marketing strategy. Additionally, this company headquarters are located at Level 3 Counter 0 Roma Street Transit Centre City, 4000. This company generates revenue from per day rental fees and tour/travel fees. This had annual earnings of $15M in revenue in 2011, which is 20% increase from the previous financial year. JPT day tour offers chef designed lunches and dinners and this has being used to harness more customers. This entails that many activities offered by this company are potential enough to increase the market share and thus increase revenue in the same company. There are competitors who have done this business for a long time. Some of these competitors Aussie Adventure, Centre One Tours Australia, Expendia Australia and Harvey World Travel are the main competitors. However, on accurate differentiation of the products, we can gain competitive advantage with ease. By employing the marketing strategies, there are high chances that the competitors 3. Segmentation, Targeting and Positioning JPT main business is tour and travel with a major in tourism. Tourists are not the same for they have different pictures of their ideal vacation. In actual facts, tourists are heterogeneous and there market segmentation is the strategic aspect tool to handle the heterogeneity among tourist by grouping them into their specific market segments which include the members who have similar to each other and dissimilar to members of other segments. JPT Tour Group use market segmentation to understand opportunities for competitive advantage in the market. Through segmentation JPT Tour Group divides large heterogeneous markets into smaller segments that can be easily reached and have products which match their unique needs (Crittenden, Crittenden, & Muzyka 2002). 3.1 Segmentation Market segmentation divides markets into smaller groupings of likeminded individuals to create better consumer strategies, leading to accurate research, product development and communications. By understanding customers, then the company can work towards ensuring that consumers are satisfied. According to Jaworski, Kohli, & Sahay (2000) segmentation helps strengthen the market position of the company for it directs the strengths against the weaknesses of competing companies. Social demographic variables such as nationality, age, income and education are the main segmentation aspects used by JPT Tour Group because they relevant determinants of tourist behavior. Destination marketing has shifted from just competition between destinations on the basis of price to the management of destinations so as they can present consistent range of services with an intention of satisfying tourists (Freytag & Clarke 2001). For international segmentation JPT uses demographic segmentation whereby the following is compiled; Ethnic identity and nationality – most tourists are from china, Japan, Gulf, USA, England and domestic (Autralia) Age – tourist groups comprises of young and middle aged people- in most cases, families with children and retired people also come to visit the region. Family cycle: immigrant like visiting scenic areas in Australia with their children to familiarize themselves with the culture and heritage of the country. Sex- men and women make frequent tours in the area. Religion – Muslims, Christians are the most common visitors. 3.2 Target Market This involves an evaluation of all segment attractiveness and selecting one or more segment to deal with. JTP concentrates in marketing effort on Queensland east coast day tour in Brisbane and Gold coast, pristine beaches and hinterland rainforest, unique shopping, food and wine, events tourism, sports, education and lifestyle choices. Visits to Australian Zoo, international marketing to ensure that customers get the quality they deserve for their money. The highest target group for these products is the young and the middle aged people between 18 and 45 years. This group value leisure and they do not mind spending any amount of money provided they get the satisfaction they want. In the same case, they are out going and thus this influences their buying behavior. This is the main reason why they are the main targets in this case. 3.3 Positioning According to Yelkur (2000), positioning is the way tourists look at a product on important attributes. In actual fact, it is the position that a certain product occupies in tourists mind relative to other products by the competitors. It has been noted that, JPT Tour Group recognizes that it is very difficult to promote certain tourist products when it has several attractiveness. This is why this company promotes many products at a go for tourists. The following products have moved the company at a competitive advantage; Beaches, Forests, Hills and Islands, Historical Places and Archeological sites. At the same time, with the brand name that has been recognized for over 30 years, the company will use the same brand name in their product packages and this will ensure that they stand a better position to be an option in the market. 4. Marketing Mix JPT Tour Group must recognize that, employing a combination of strategies and activities used to sell their services will put them at a competitive advantage (Singh 2012). Using the four Ps, product, price, place and promotion, the company will end up gaining advantage over the competitors for it will lock in customers. When appropriate research is conducted, this company will plan on a promotion for the right product, at the right price and get to the target market in the right place (Andreas & Cliff 2007). 4.1.1 Product Product is the service offered by the company to the customers (Beaver & Prince 2002). It is worth noting that, apart from the physical product, there are other elements which are connected to the product that customers may be attracted to. This may include quality, features, options and brand name. in this matter, the product offered by JPT Tour Group will have a quality that can never be compromised. The appearance, function and support make up what the customer is actually buying and therefore the product is designed to address specific customer needs and ensure maximum satisfaction (Yelkur 2000). The product must meet the needs of the target market. Building from the already established brand name in the market, the company is going to concentrate on building the right image by ensuring that customers get the value for their money by offering services which are correlated to their wants (Yelkur 2000). This will only be achieved by accurate information about the target market and also knowledge about the competitors which will allow the company to offer a product that is appealing to the customers to avoid any mistake that may result to be very costly to the company (Beaver & Prince 2002). To be a level higher than the competitors, JPT Tour Group must ensure that that they add value to the services through customer service. Tour business involves very close contact with the customers. This therefore entails that, they way they are handled matters a lot. This company will ensure that, enough training and development is done to the employees so that they can be able to handle customers with the highest courtesy to harness more customers in the future (Yelkur 2000). Our products will be defined by quality, styles and brand, guaranteed satisfaction. Our main objective concerning the service is the value for our customer’s money. Quality can never be compromised 4.1.2 Pricing This refers to the amount charged for the service or product offered (Yelkur 2000) One of the toughest activities in the business is to determine the price of the product or service. This is attributed to the fact that many businesses feel that they must have the lowest prices in the market and therefore create an impression of bargain pricing (Michael & Xia 2001). However, in the market segments some prices may signify the quality of the product or service. Meaning that, when the price is very low, then customers may have a perception that the quality of the same product is compromised. Our price will be a reflection of the accurate positioning of the product in the market and therefore that price will cover the cost of the service and also be inclusive of a profit margin (Yelkur 2000). Just as over-pricing may get us out of the market, pricing too low will result to growth impossibility. Our pricing strategy is based on the product, customer demand and the competitive environment. In the same case, the price of our service will be competitive in such a way that, it is based on the prices charged by competing firms for competing products (Plomaritou 2008). This is the easiest strategy to employ for one ensures that, the price is maintained relative to the prices of competitors. This is done by directly observing their price charges. However, it is worth noting that, since our target market is the young and the middle aged, then the prices will be fair and flexible as the company will implement the suggested retail pricing for all products. At the same time, the company is committed to ensuring that the quality of the product is never compromised and can never be matched by that of the competitors (Yelkur 2000). This being the case, it will leave the customers with no other option other than going for the services we are offering. When the product quality is deemed high, then there are chances that the customer will not mind the price tag of the same. We guarantee that customers will get value for their money. At the same time, after we determine the pricing method. The company will consider other aspects which may reduce the cost of the service, create customer loyalty and at the same time increase customer base (French, Kelly & Harrison 2004). First, there will be discounts on returning customers. This will ensure that, customers will have no option that choosing to use JPT Tour Group as their option. 4.1.3 Promotion Advertising the product will not be left behind (Chan et al 2004). This is due to the fact that, if the company has to sell the product, then it must be known among the population. People must be made aware of the product in the market if selling has to take place as planned. The effectiveness of our promotion is founded on having a very clear message which is targeted to a specific audience and channeled in the right avenue (Chan et al 2004). This is due to the notion that, the target audience will be the people who influence the purchase of the product. The messages used in the promotion will be aligned to the overall marketing image, will be directed to attracting the target market attention. This will involve advertising, public relation and personal selling. Advertisements will use the following channels: Radio – this is able to inform the local customers about the service in an inexpensive way. Television – this will reach regional/national audience but the company must be prepared to cater for the cost which may be relatively high. Print – printed materials and brochures will be made available which will explain where and why people should buy our product. Electronic – the company website will be upgraded to provide useful information to interested customers. By creating a favorable business image, the company will can use public relation to make known her products (French, Kelly & Harrison 2004). This is for example being a good neighbor, be involved in the community activities and taking initiatives of tending the environment. 4.1.4 Place The place where the customers can get the product and the way this product is distributed to the market must be appropriate and convenient for the customer (French, Kelly & Harrison 2004). In the tour service we are offering, the product must be available in the right place, time and quantity. Our business does not involve intermediaries or in supply chain. However, there is a need to ensure that, customers get the right quality and quantity of the services they paid for. This therefore entails that, the company is committed to ensuring that customers get the services they require any time. The companies have a fleet of minibuses and other transporting agents which will ensure that customers get to the places they desire at the right time and conveniently. In all areas which are tourist attraction throughout Australia, we have set up agents who will manage the bookings and manage the tours. At the same time, customers do not have to come to the head office to know about our product or even to make payments. They can pay and book online at their convenience and can also make telephone follow up any time 24 hours and 7 days a week. The convenience of working with JPT Tour Group cannot be matched and therefore it remains the best option for the customers throughout the region and even throughout the world. 5. Conclusion and recommendations JPT success in tour and travel business success if dependent on the success of the marketing strategy that is employed. This therefore means that its tourism and adventure services can only be successful if only the right measures are taken in the realization of the customer care and marketing services. Social demographic variables such as nationality, age, income and education are the main segmentation aspects used by JPT Tour Group because they relevant determinants of tourist behavior. At the same time, it has been noted that destination marketing has shifted from just competition between destinations on the basis of price to the management of destinations so as they can present consistent range of services with an intention of satisfying tourists, and so segmenting the market to have tailor made services is the only way out in realizing business success. Targeting the right group, the group who value adventure and are working, thus has money is another strategy that the company has concentrated on. At the same time, positioning the product in such a way that the competitors cannot copy them is very vital in the business success and thus it cannot be compromised. Using the four Ps, product, price, place and promotion, the company has accurate strategies to gain advantage over the competitors with services that are appropriate and affordable by the target market. The product is developed with its foundation being the needs and want of the target market. This means that customer satisfaction is addressed in the products. The prices are affordable and competitive for they are relative to those of the competitors. Advertisements have not been left behind to make known the products to the customers to increase sales. Finally, the service offered is available and convenient to the customers where even the mode of payment and booking have been made easier to the customers for they can do it at their own time and comfort of their homes. At the same time, there are enough transport facilities to make sure that when touring the region, the customers are comfortable and their needs are taken care of. It is highly recommended that this company implements this marketing mix. This is attributed to the fact that, competition is very stiff and these calls for effective measures which are to address competitive advantage. The recommended strategies will be effective in ensuring that, the services offered are competitive enough in terms of quality, price and value and this will be beneficial to the entire company. At the same time, using the right marketing channels will ensure that the target market gets the right information and at the right time. Additionally, there are strategies which have been recommended which will result to customer loyalty. When this is reached, then the company will be at an advantage as compared with the other companies. References Beaver, G., & Prince, C. . 2002. Innovation, entrepreneurship and competitive advantage in the entrepreneurial venture. Journal of Small Business and Enterprise Development, 9(1) , 28-38. Birnik, Andreas and Bowman, Cliff. 2007. Marketing Mix standardization in multnational corporations: A review of the evidence. International Journal of Management Reviews 9 (4) , 300-315. Brennan, Michael J., Yihong Xia . 2001. “Assessing Asset Pricing Anomalies,” , . Review of Financial Studies, 14(4) , 905–942. Chan, Lisman L.M;Shaffer, Margaret A. and Snape, E.,D. 2004. In search of sustained competitive advantage: The impact of organizational culture, competitive strategy and human resource management practices on firm performance, . International Journal of Human Resource Management 15:1 , 15-35. Crittenden, V. L., Crittenden, W. F., and Muzyka, D. F. 2002. ‘Segmenting the business-to-business marketplace by product attributes and the decision proces’,. Journal of Strategic Marketing, 10, , 3-20. French, S. J., Kelly, S. J., & Harrison, J. L. . 2004. The role of strategic planning in the performance of small, professional service firms. The Journal of Management Development, 23(8) , 765-776. Freytag, P. V., and Clarke, A. H. 2001. '‘Business to business segmentation’, . Industrial Marketing Management, 30, 6 (August) , 473–86. Jaworski, B,. J., Kohli, A.K., & Sahay, A. 2000. Market Driven Versus Driving markets. Journal of the Academic of Marketing Science, 6(2 , 45-54. Plomaritou, E. 2008. A proposed application of the marketing mix concept to Tramp and Liner shipping companies. Management, 13 (1) , 59-71. Singh, M. 2012. Marketing Mix of 4 Ps for Competitive Advantage. OSR Journal of Business and Management (IOSRJBM) , 40-45. Yelkur, R. 2000. Customer Satisfaction and Service Marketing Mix. Journal of Preffesional Service Marketing 21(1) , 105-115. Appendix -1a Promotional Materials Read More