The paper "Foundations of Marketing Theory: Case of Contiki Company" is a good example of a case study on marketing. Contiki Holidays is a leading coach tour operator company based in Australia and offering transport services to close to 100,000 travelers annually on up to 2,000 tour excursions. Contiki’ s excursions are intended solely for individuals aged between 18 and 35 years. Contiki targets the Y generation (people born between 1977 and 1994) because the majority of them have grown up in two income-households, in an era of economic prosperity that allows them significant discretionary income and many opportunities to spend it.
Some of the many benefits it offers its Y-generation customers include reasonable pricing, a mix of nationalities on every tour departure and programmed on and off coach activities, including more nightlife entertainment and tour guides of the same age (Pierre & Pendergast 2010, pp119). This paper seeks to analyze the Contiki Company, its background, marketing theories, and the way the company deals with competitors in the market. The analysis will focus on Contiki’ s Australian market for international holidays. This tour operator has implemented a focused marketing approach in distinguishing market fragments.
The approach implies that Contiki has decided to concentrate its marketing drive on attaining a bigger proportion of a definite fragment of the market (that is 18-35-year-olds). The strength of this approach lies in its capacity to permit specialization that may possibly generate economies in production, distribution, and promotion (Kolb 2008, pp 103). Nevertheless, such a strategy bellies a number of weaknesses, one of which being alterations in the market requirements or new tour operator companies joining the market segment.
Porters’ five forces model is used to evaluate the strengths and weaknesses of this approach. Lastly, this report re-examines areas of its business where Contiki should focus more closely to further enhance its competitive advantage in the holiday tour market and consolidate its grip as the premier tour operator for youth travel. Such recommendations include taking full advantage of the Internet in online bookings and intensifying market research on the use of pricing as a marketing strategy (Kurtz & Snow 2009, pp91).
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