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Bài luận môn Marketing nâng cao chương trình cao học Columbia Southern. In this fierce global competitive economy, a marketing plan is a very important foundation for the success of a business. A marketing plan provides an insight of the targeted market, macroeconomic factors, competitors, and the company’s weaknesses and strengths (situation analysis). Based on those analyses, companies would take advantage of the beneficial macroeconomic factors (opportunities), weaknesses of competitors, and their own strengths to design appropriate products for targeted markets and potential markets as well as surpass its competitors. Based on those analyses, companies could plan to improve their weaknesses and prepare well for the future threats in order to survive and develop sustainably.
Running head: TRAVEL TODAY’S SITUATION ANALYSIS Travel Today’s Situation Analysis Nguyen Quynh Nhu Columbia Southern University TRAVEL TODAY’S SITUATION ANALYSIS Literature Review Marketing has become increasingly important for a business's success Good marketing activities create demand for products and services in order for the firm to make a profit and build a strong brand name and loyal customer base that constitute the company value Marketing strategy shall decide designs, features, price, targeted customers, places to sell products and services, and the budget for advertising campaigns based on careful analyses on market, customers, economic and political situation, future trends, etc [CITATION Phi12 \p 3-5 \l 1033 ] There are two schools of marketing (two marketing concepts): the classic marketing concept and the holistic marketing concept The classic marketing concept is based on customer-centered philosophy; the company shall find right products for customers such as Dell, therefore the company following marketing concept tends to provide customers to design their product or service The key to achieving organizational goals in classic marketing concept is being more effective than competitors [CITATION Phi12 \p 18 \l 1033 ] The holistic marketing concept refers to internal marketing, integrated marketing, performance marketing, and relationship marketing Internal marketing mentions the task of hiring, training, and motivating employees in order to serve customers well Integrated marketing is the creation of marketing activities and marketing programs to create, communicate, and deliver value to consumers Performance marketing requires the understanding of financial and nonfinancial issues in order to build an effective marketing strategy Relationship marketing aims to build and maintain long-term relationships with key constituents such as customers, employees, marketing partners such as channels, suppliers, distributors, dealers, agencies, and financial community such as shareholders, investors, analysts in order to retain their business TRAVEL TODAY’S SITUATION ANALYSIS The holistic marketing concept is more suitable with the current fierce competitive economy [CITATION Phi12 \p 19-22 \l 1033 ] Company Overview Travel Today Ltd is a travel corporation based in Ho Chi Minh City, Viet Nam since 1991 Travel Today Ltd has 30 representative offices across Viet Nam and oversea representative offices in the USA, Australia, Thailand, Japan, Korea, China, and Cambodia Travel Today Ltd is a member of Pacific Asia Travel Association (PATA), Japan Association of Travel Agents (JATA), United States Tour Operators Association (USTOA), and Viet Nam Society of Travel Agents (VISTA) Travel Today Ltd offers inbound and trans-boundary travel arrangements for international customers including domestic and trans-boundary package tours such as caravan, cultural, medical, sea diving, mountain climbing tours, etc Travel Today Ltd also offers flights booking, car rental, accommodations, tailor-made trips at clients' requirements, travel insurance, visa assistance, and foreign currency exchange for all inbound and outbound customers The company’s mission is introducing Viet Nam to the rest of the world and making Vietnam to be the world's attracting destination The company aims to increase the number of international visitors by 5% per year by increasing visitors' satisfaction Market Research Strategy After 25 years of operation, Travel Today Ltd has become a famous trademark offering domestic and trans-boundaries tours for group of foreign tourists In recent years, the company has experienced a slowdown in business because of the outbreak of travel companies in Viet Nam, the drop in the number of international tourists to Vietnam, and changes in customer’s behaviors; they are using the Internet to plan and book their own vacations Therefore, the TRAVEL TODAY’S SITUATION ANALYSIS company has to research possible alternatives for new products and services in order to recapture lost customers and attract more international customers The classic marketing concept that was used successful in the past, may not suitable in present period when the company is facing cost competitiveness In order to create new products and services and an effective marketing plan, the company shall implement company's situation analyses including a macro-environment analysis (PEST), a segmentation & target market analysis, a competitive analysis, and a SWOT analysis The PEST analysis shall be made based on information and figures from relevant Governmental official websites PEST analysis helps identify political, economic, social-cultural, and technical issues (macro-economic factors) that may affect tourism industry and the company’s activities [ CITATION Kie16 \l 1033 ] The segmentation and target market analysis help a company understand the behavioral, psychographic, demographic, and geographic criteria then select its targeted markets correctly[CITATION Ann16 \l 1033 ] Competitive analysis help understand the rivals Eventually, the SWOT analysis identifies company's strengths, weaknesses, opportunities, and threats in order for the company to take advantage of company's strengths and economic opportunities as well as improve company's weaknesses and prepare for threats Situation Analysis Analyzing Macro-environment-PEST Analysis Viet Nam has many attractive locations that support a diverse tourism industry suitable with a variety of purpose such as historical, cultural, adventure, discovery, leisure or business tourism such as meeting and convention, incentive travel, exhibition and event, etc The Vietnamese government considers the tourism industry a key sector to promote Viet Nam TRAVEL TODAY’S SITUATION ANALYSIS economic and social development, thus, some encouraging plans and policies for tourism industry were gradually implemented However, Vietnam's tourism industry still has implicit difficulties, challenges, and opportunities The quantity of international visitors had increased over the past ten years, but the trend was not clearly stable during the period and the growth rate is increasingly lower than other countries in the region For example, during 2014-2015, growth rate of international visitors in the region are: Vietnam, 0.88%; Thailand, 20.5%; Malaysia, 6.3%; Indonesia, 10.3%; Japan, 47.1%; China, 2.3% [CITATION UNW16 \l 1033 ] International visitors to Viet Nam 2006-2016 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 06 20 07 20 20 20 10 20 11 20 12 20 13 20 20 15 20 20 st (E ) [ CITATION Vie16 \l 1033 ] The macro-environment-PEST analysis is a marketing research tool using for identifying macro issues that may affect the industry that the entrepreneur Political Issues The ongoing territorial dispute over the East Sea between Vietnam and China Political instability in neighboring countries (Thailand, Cambodia, China, etc.) Lack of international representation Hotel industry getting government incentives TRAVEL TODAY’S SITUATION ANALYSIS Economic Political instability Visa procedures are still complicated, insufficient visa-free policies limits the entry of international tourists International agreements enter into force Improving visa-free policies for visitors from develop countries The launch of new international and domestic routes, the increase in cheap international and domestic flights, the tourism stimulation programs, and the increase in frequency of key routes Average disposable income increases Improved transport infrastructure Increasing low-cost airlines, increasing air-travelers Travel expenses fell sharply compared to five years ago thanks to increasing cheap airlines, easy-visa and visa-free policies, online tools, fierce competitiveness, etc Privatization policies are improving quality of service Increasing presence of world famous brands Potential domestic market with various scenic beauty with beaches, forest, river system; varied cultures; diverse Socio-cultural cuisines; Glorious sceneries, some of them were recognized by UNESCO Travel blogging movement flourished worldwide Photography trend to share on social network such as instagram, facebook, zalo, etc Adventure travelling trends in young generation; Many festivals a year Increasing evils in some countries Illegal tour guides offer cheap prices Consumers become wiser thank to internet Majority of local people cannot use English frequently Poor local services TRAVEL TODAY’S SITUATION ANALYSIS Technical UNESCO recognized intangible heritages Vietnamese people not pay enough attention to environmental issues The growth of e-commerce and social networks: online booking services, online service flat forms Poor technical infrastructure, poor facilities at airports and stations Segmentation and Target Market Analysis Behavioral, Psychographic, Demographic, and Geographic analysis In the first month of 2016, most tourists to Viet Nam are from Asia countries (accounts for 65.3%), followed by EU (19.13%), Americas (9.48%), Australias (5.74%), and Africas (0.36%) By country, most tourists to Viet Nam are from Korea, followed by China, Japan, USA, Australia, and Taiwan [CITATION Van16 \l 1033 ] According to Nguyen, Le, Duong’s research (2015) with regard to age, marital status, and education had found that the majority of interviewed tourist is 19-29 years old (62.9%), followed by 30-39 years old (25.6%); 90% of interviewees are highly educated; 77.3% are single respondents; 38.4% are students, 15.9% is professional and 9.7% are managers; 66% are first visit and 34.2% are repeated visit Regarding to the travel partner, 60.8% travel to Viet Nam with spouse/ girlfriend/ boyfriend/co-workers/classmates Most travelers to Vietnam are attracted by the country’s wonderful natural beauty Most amazing attractions in Vietnam recognized by international tourists: Ho Chi Minh, Ha Noi, Hoi An Old Town, and Ha Long Bay [CITATION Min15 \l 1033 ] TRAVEL TODAY’S SITUATION ANALYSIS The biggest spender is China, focusing on shopping rather than discovering and sightseeing The second and third spenders are the United States and Germany [ CITATION Wor \l 1033 ] The majority of customers travels with spouse, family, and friends Most popular resources for tourists to seek advices and travel information are friends in person, followed by social media and internet, travel agency, print magazines, travel website, etc [ CITATION Ins15 \l 1033 ] The biggest difficulty for international is the complicated and slow visa procedures Targeted Market The company used to focus on middle-class and middle-age tourists who were willing to pay more for a convenient tour including a well-prepared itinerary, luxury accommodations, comfortable transportation means, knowledgeable tour guides, etc Nowadays, the trend has changed The customers become younger and they prefer discovering new lands and outdoor activities to joining convenient tour They are willing to spend more money for wild, natural, and cultural experiences rather than enjoying luxury and comfortable things However, convenient tours still remain a profitable product lines because it is suitable for those who don’t have enough time for researching and discovering The company focuses on: 25-29 years old: they are young people who love to discover new lands and outdoor activities, this group suitable with tailor-made trips and team building activities 30-45 years old: this group prefers convenience and does not like the element of surprises, this group is suitable with designed tours Couples, group of friends, and family Top countries likely visit Viet Nam: USA, Japan, South Korea, Taiwan, Singapore, France, UK, and Australia TRAVEL TODAY’S SITUATION ANALYSIS Countries likely visit Viet Nam in the future: Thailand, Europe Competitive Analysis The majority of market structure is shared by four big companies: Saigon Tourist, Viet Travel, Fiditour, and Travel Today [CITATION ToN15 \l 1033 ] Saigon Tourist holds biggest part of market share, 38% Travel Today is on the third with 19% of market share The second and the forth company are Viettravel (21%), and Fiditour (14%) Saigon Tourist focuses on both inbound and outbound customers Most of its sales come from domestic visitors including visitors traveling domestically and overseas Its outstanding strengths is organizing group tours, the international segment of Saigon Tourist only a negligible proportion Saigon Tourist is a state-owned company to operate efficiently However, the stability of earnings and revenue will lead to the situation of sleeping on the victory If they not promote creativity and innovation, they will be overtaken by rivals, especially when the support elements for a state company are no longer [ CITATION ToN15 \l 1033 ] Vietravel focuses on domestic customers buying oversea tours It aims to build a better brand experience for individual customers Vietravel is implementing low-cost strategy However, the most sales of Viettravel come from international customers, the segment that the company pay less attention to [ CITATION ToN15 \l 1033 ] TRAVEL TODAY’S SITUATION ANALYSIS 10 Tourism industry market share Other; 8.00% Fiditour; 14.00% Travel today; 19.00% Saigon Tourist; 38.00% Viettravel; 21.00% Fiditour's strategy is a combination of Saigon Tourist's and Viet Travel Most of Fiditour’s revenue come from selling air tickets and hotel bookings Fiditour is facing a fierce competition with the majority of tourist companies which are now leading to a reduction in prices and losing market share[ CITATION ToN15 \l 1033 ] SWOT Analysis Strengths Weaknesses 25-year experience One of the top leading tourism Local partner’s staffs may not speak companies Recognizable brand name Member of international and domestic English Lack of innovation Cumbersome management apparatus increases costs and become a financial travel associations Long-term relationship with customers and suppliers Varied product’s price lines suitable with different group of customers problem in difficult economic periods TRAVEL TODAY’S SITUATION ANALYSIS Available domestic and international representative office Negotiation power Opportunities 11 Threats WTO agreement enters into force Insecurity of other countries Glorious sceneries Crowded population and standard of living improved Visa-free to South Asian countries Easy-visa policy to Japan, Taiwan, Many domestic competitors Many potential international competitors Effects of world economic crisis Low awareness of environment leads to many pollution issues Korea, etc Conclusion Tourism is one of the most sophisticated industry It reflects and is impacted by complicated factors such as social, cultural, economic and political environment The South East Asian tourism industry possesses an enormous diversity potentials that has been increasing rapidly and is estimated to grow further Sustainable tourism would be a very potential segment in the near future thanks to the world's attention to environmental issues and cultural heritage The trans-boundary cooperation between South East Asian countries in tourism industry can attract more visitors from other continents because it saves time and provides a connected and diverse routes Vietnamese tourism is famous for political stability, tropical landscapes and cultural heritages The State's encouraging policies and the effect of international trade agreements not only provide many opportunities for business but also increases fierce competition Service quality and innovative products are still the biggest weaknesses of domestic tourism industry In order to survive and grow, the company should focus on enhancing its core competencies and TRAVEL TODAY’S SITUATION ANALYSIS innovation ability In the current situation, this is an appropriate opportunity for expanding market share It would be the best way to enhance Travel-Today's business as well as build a solid foundation for future competition 12 TRAVEL TODAY’S SITUATION ANALYSIS 13 References Frue, K (2016) Pestle analysis Retrieved from http://pestleanalysis.com/pest-analysis-template/ Hanlon, A (2016) The Segmentation, Targeting and Positioning model Retrieved from http://www.smartinsights.com/digital-marketing-strategy/customer-segmentationtargeting/segmentation-targeting-and-positioning/ Huy, V (2016) Du khach nuoc nao den Viet Nam nhieu nhat [What country has the most tourists to Viet Nam in January, 2016?] Retrieved from Bao moi news: http://www.baomoi.com/thang-1-2016-du-khach-nuoc-nao-den-viet-nam-nhieunhat/c/18548715.epi Insights into travellers (2015) Retrieved from http://www.slideshare.net/Cimigo/vietnamtraveller-insights-2015 Kotler, P., & Keller, K L (2012) Marketing Management Harlow: Pearson Education Limited Nguyen, M H., Le, M H., & Duong, T M (2015) Destination choice of international tourists in Vietnam Retrieved from http://khxhnv.tdt.edu.vn/en/attachments/article/165/Destination%20choice%20of%20international %20tourists%20in%20Vietnam.pdf To, N P (2015) Phatmarcom Retrieved from http://phatmarcom.blogspot.com/2015/07/cachan-che-ve-viec-xay-dung-thuong.html UNWTO Tourism Highlight (2016) Retrieved from http://www.eunwto.org/doi/book/10.18111/9789284418145 Vietnam National Administration of Tourism (2016) Retrieved from Tourism statistic: http://www.vietnamtourism.com/en/index.php/news/cat/2001 World tourism organization (n.d.) Retrieved from http://www2.unwto.org/en TRAVEL TODAY’S SITUATION ANALYSIS 14 ... http://www.baomoi.com/thang- 1-2 016-du-khach-nuoc-nao-den-viet-nam-nhieunhat/c/18548715.epi Insights into travellers (2015) Retrieved from http://www.slideshare.net/Cimigo/vietnamtraveller-insights-2015 Kotler,... foundation for future competition 12 TRAVEL TODAY S SITUATION ANALYSIS 13 References Frue, K (2016) Pestle analysis Retrieved from http://pestleanalysis.com/pest -analysis- template/ Hanlon, A (2016) The... and TRAVEL TODAY S SITUATION ANALYSIS innovation ability In the current situation, this is an appropriate opportunity for expanding market share It would be the best way to enhance Travel- Today' s