The paper “ Retail Marketing and Distribution in Travel Agency” is a convincing example of a case study on marketing. Are We There Yet? Travel Agency is a customer-oriented company and thus has adopted various objectives in line with the mission statement of the company. The agency aims to gain a one percent market share in the first six months through an aggressive marketing campaign. This campaign will involve an interactive website, user blog site, social media marketing on Facebook and Twitter, brochures and flier distribution in social places such as student cafes and publicity through student magazines.
We also have an objective to bring in around $50,000 in the first year. This will be achieved through competitive prices that are inclusive of flight fares, accommodation costs, and destination touring costs. The agency will, therefore, foster more quality-oriented relations with host destinations and airlines that cater to low-budget travelers. The agency will satisfy customers by ensuring that they get value for their money through maintenance of high service quality from booking to travel to and fro. The agency will maintain customer loyalty by giving them a chance to share their experiences in the company’ s blog site and in student magazine articles.
Further satisfaction will be ensured by maintaining excellent employee relations as a happy employee implies a happy customer too. Overall StrategyThe overall strategy will focus on the controllable variables that are under the control of the internal managerial environment and uncontrollable variables that are influenced by the external environment. Controllable variables Service strategyService is an intangible quality and because of this, every opportunity to interact with the customer should be a chance for the retailer to give the best.
The SERVQUAL approach of service quality identifies two gaps relevant to a travel agency. Gap five explores the discrepancy between perceived and expected service. When the perceived service quality meets the expected service, it is rendered satisfactory. Likewise, if the perception fails to meet expectation it is considered unsatisfactory. Gap three identifies the discrepancy between service delivery and the service specifications (Shahin and Nassibeh 2011). Are We There Yet? travel agency, therefore, tries to bridge these two gaps for efficient quality service delivery. The agency has employed the services of student staff because they can easily tell what their colleagues need in terms of travel.
The student customers also find it easier to relate with their colleagues and it makes it easier to predict trends. However, the agency is embarking on finding more professional employees with an experience of over two years in a successful travel agency. The professionals will help identify host destinations that are student-friendly so as to bridge gap five. They will also provide on-job training for the current employees so that they can be able to deliver adequately the service promises of the agency. Pricing strategyThere are essentially three pricing strategies; competition-driven, customer-driven and cost-based pricing (Collins and Parsa, 2006).
The competition-driven strategy involves price cuts so as to place products or services at a price lower than your competitors. The customer-driven strategy involves pricing the products or services according to the individual financial capability of the consumer. The cost-based strategy involves pricing the products or services above the production costs. The agency chooses to adopt the customer-driven pricing strategy since the market segmentation is student exclusive and their budget is low.
The agency proposes encouraging group travel through innovative marketing strategies whereby group travel is marketed as a chance to secure great relationships among friends. This is a win-win situation for both the student and the company. Group travel increases the propensity for discounted rates at destinations implying low costs for the agency and consequently low priced packages for the students. The agency will also seek new partnerships with airlines and tour operators so as to secure cheaper air tickets for the customers and affordable travel guides respectively.
During semester breaks the agency will use markdown pricing to encourage more travels during this low season as well as cover the overhead fixed costs of the agency.