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RS2K VACATIONS

TMS200: Marketing Plan


Assignment
Tokyo, Japan
TMS 200TA

Ric Anthony Rigos 057-377-137


Selwyn DSouza 064-297-138
Kevin Wong 066-288-135
Kritsana Bubchaiya 011-852-142
Lynda Hoff

EXECUTIVE SUMMARY
RS2K has done well since it has opened in 2010. The tours we have been selling
in Toronto have been successful thanks to our dedicated, hardworking, and
knowledgeable staff. However, we have experienced a setback due to the product we
bought in Argentina. Sadly, this product caused us to lose a big portion of our market
share, and it led to profit loss of our company. With a renewed policy and with the aim to
regain our prestigious position in the field, our research team found out a possible
solution to this problem: Asian destinations are getting popular to the Canadians
particularly Japan. Because of this, we plan to market Japan as a product, for this offers
a variety of attractions especially in Tokyo: good shopping opportunities, amazing
natural attractions, entertainment, cultural, and historical sites. With this opportunity, we
recommend changing our target market to age 18-35 year-old Canadians, for they are
most likely looking for an exotic destination. We will also implement an outstanding
value-for-money approach in our pricing that will give our customers an affordable
product, yet valuable and could satisfy their needs. Moreover, we will conduct an
intensive distribution strategy to increase the exposure of this product to our chosen
target market. We also recommend maximizing the benefit of various means of
promotional tool, and many more.

This marketing plan will discuss further these

recommendations in order to effectively solve our downfall, and to regain our position
with the help of our partners in the field of travel industry.

I.

The Corporate Connection


A. Mission Statement
To offer a safe, friendly, and affordable vacation that satisfies our
customers that leads to an unforgettable experience by exploring
destinations designed for travellers craving for fun and adventure. In
RS2K Vacations, you will have an experience to remember.
B. Goals

RS2K Vacations aims to increase our profitability and market share in


Canada by collaborating with our industry partners domestic or
international. We also strive to contribute in the economy and tourism
industry of Canada.
C. Objectives
RS2K Vacations is committed to deliver excellence in our business
performance by focusing on the following:

Build a good relationship with our industry partners and customers.

Meet our customers motivations, needs, and expectations.

Maximize the benefit of various means of promotional tool: Social


Media, Public Relations, Direct Marketing, and Word-of-mouth.

Give a life-changing experience to our customers through the


products that we are selling.

Increase the awareness of our Canadian market in Asian


destinations, particularly Japan.

II.

Analysis and Forecasting


A. Portfolio Analysis
Using the Boston Consulting Group (BCG) model, this table shows what
destination is offering a high potential, and those that drain RS2Ks
organizational resources.

CASH COW

RS2K Vacations biggest

RS2K Vacations has had

selling tours in Canada are in

some bad sales during the

Caribbean (i.e. Cuba and

year of 2013-2014 in

Cancun).

Argentina.

STARS

DOG

Tours to Japan has just

QUESTION MARKS

Tours to Europe are also a

recently launched by RS2K

popular product by other

Vacations because the

Tour Operators. As a new

interests of Canadians in this

player in the industry,

destination are starting to

entering this market has a lot

peak.

of potential, but it has a highrisk in return.

B. Competitor Analysis
Our main competitors are the suppliers in Canada, who are also offering
the same product as ours: Japan as a destination. Because they are
sharing the same market with RS2K, our market share will be reduced.
However, with our companys capability in delivering an excellent service,
life-changing experience, and by keeping our commitments with our
consumers, we are expecting to get the majority of the market share in our
target market in the future. In addition, our intensive distribution strategy
will help us boost our revenue, take over our competitors, and make it
hard for our potential competitors to enter our target market.

C. Segmentation Analysis
a) Demographic
18-35 year old Canadians, male and female, who are Leisure travellers
looking for an exotic destinations to visit during their holidays.
b) Geographic
We are promoting Tokyo, Japan as a destination to our potential
customers.
c) Benefit
Our product provides

quality accommodation,

convenient and

affordable prices to our consumers. In addition, this will also satisfy


their desire to visit destination that offers a wide-range of attractions
such as Tokyo.

d) Behaviour
Consumers of this tour might be the young Canadians who want to
explore East Asia and those who are willing to pay more to get a
unique experience. These young travellers are eager to gain
experience outside Canada and their usual destinations, so this group
might pay more just to satisfy their needs.

e) Psychographic
Travellers might have different attitudes such as aspirations, interests,
attitudes, opinion, lifestyle, and behaviour (Hudson 88). This
destination product might be suitable for the travellers who have an
interest on a destination that has rich cultural and historical sites such
as Japan.

D. SWOT Analysis
Strengths
a) Variety of Attractions
To begin with, Tokyo offers a wide range of attractions: beautiful
natural attractions, stunning sceneries, good shopping places, theme
parks, historical, and cultural sites (Japan-guide). In addition, Tokyo is
the center of everything in Japan; it is where business, entertainment,
and government are mainly placed. It is also one of the cleanest cities
in Asia, so the sanitation is up to the Canadian standard (Travelience).

Surely, this destination will satisfy the needs of our customers due to a
wide variety of choices that our consumers may choose from, and it
provides a friendly and comfortable environment that we want to
provide to our customers.

b) Accessibility
Another one of the strengths of this product is that Tokyo is an
accessible destination for the Canadians. It is convenient and
accessible by air travel especially for the citizens of Toronto, for there
is a flight that goes from Pearson International Airport. Air Canada also
offers 7 flights weekly from Toronto to Tokyo (Airlines). This provides a
safe, smooth, and satisfying travel for our consumers (Travelience).
Indeed, this opens up the window for the young Canadian travellers to
go to Tokyo for a holiday vacation.

Weaknesses
a) Long-Haul Destination
Distance is always a concern for all travellers. This could be a
determining factor if a customer, young or old, will purchase the
product or not. The truth is, the distance between Canada to Japan is
more than 5 thousand miles (DistanceFromTo). Because of this, our
product destination, which is Tokyo, will not be an attractive product for

the baby boomers because of their physical condition. Thus, it limits


our product to our main target market.

b) Cultural Differences
Due to the difference in culture, it could be a weakness for our product.
Some Canadians might not embrace the thought of adjusting to the
culture of the Japanese, and they might find it a turn-off.

In fact,

correct manners are very important for the Japanese, so our


customers should be familiar with at least the common ones: bowing
as a greeting, conducting a short prayer when visiting temples and
shrines, and the use of chopsticks when eating, etc. (Japan-Guide).
For this reason, our customers might choose another destination over
Japan.

Opportunities
a) Inclusion of a local Tour Guide
Our products weakness can be an opportunity; due to the possibility of
a language barrier in Japan, a country wherein not all people can
speak English, we can turn it into an opportunity to market our product
even further. A local Tour Guide who can speak English fluently can be
a solution to this weakness; our Tour Guide will be the companion of
our customers during the length of their stay in Tokyo. This may be
included in the tour package of our customers who will go to Tokyo.

For this reason, we can eliminate the possible cause of their hesitation
to purchase this product. Consequently, the appeal of this destination
to the potential customers will increase.

b) Popular Destination
Another opportunity of our product is the fact that Japan is a
destination that is already popular. Although it will take a day in order
to get into Japan from Toronto, this could be a unique destination for
many Canadians especially the younger target market. These target
market are mostly interested in a long-haul, exotic, and experiential
destination. Thus, they may find Japan as a suitable destination for
them. Surely, Tokyo can satisfy the MNEs of the younger demographic
due to the fact that it offers a variety of choices when it comes to
attractions: good food, popular shopping places, spa and wellness,
arts, rich cultural history, and beautiful natural resources. Again, this
may broaden the appeal of Tokyo, Japan as a holiday destination to a
younger demographic in Canada.

Threats
a) Natural Calamities
First of all, Mother Nature is unpredictable at best; it is beyond our
control. These threats such as earthquake, tsunami, volcano eruption,
and snowstorm can impede the sales of our company. Also, this can
hinder our potential customers to come to Japan if these kinds of
phenomenon occur as they may result into casualties.

b) Terrorism
The unpredictable condition of the world that we lived in is a threat:
Terrorist attacks. A no-fly zone could be declared as it was during the
9/11 attack. For this reason, people will be afraid to fly especially to
Japan that is located on the other part of the world. Moreover, Japan
also has territorial dispute concerning their multiple islands with China.
This may be a reason for a potential war between the two countries.
Therefore, we have to keep an eye on what is happening all around
the world, not just within the boundaries of Canada.

III.

Setting Marketing Goals and Objectives


A. Marketing Goal
a) Marketing Goal A:
Keep our existing and new customers happy with our product offerings.

b) Objective Goal A:
We will offer incentives or add-ons into our Tokyo product such as 1
day Tokyo subway pass, and discount coupons in souvenir shops in
Tokyo. By doing this, it will make our customers happy.

B. Marketing Goal
a) Marketing Goal B:
Another goal is to Increase our market share for our chosen target
market by offering a unique, exciting, and memorable travel product
(Tokyo, Japan) by the end of 2014.

b) Objective Goal B:
We will keep the costs as low as possible by offering an Early Booking
Discount which gives them a 10% off of its original price. In addition,
we will guarantee worthy attractions in Tokyo to see and visit.

IV.

Marketing Strategy: Targeting and Positioning


A. Primary Target Market
For 18-35 young Canadian professionals, singles, and students who have
the desire and capacity to travel to the other side of the world. This is an
important market for our product since this age group are most likely being
funded to travel by their parents and grandparents (UTS). Apart from that,
this age group are adventurers who are seeking to travel outside their
usual destinations such as Europe and Caribbean. Also, this age group is
more capable of travelling long distances compare to the baby boomers
due to the health conditions of the latter. This product destination, if
advertised well, can grow, and we can possibly expand this product to our
national and international market in the future.

B. Positioning
Our international flight interest to Asia is on a rise, so exotic destinations
such as Japan, South Korea, China, Thailand, and Vietnam are starting to
become profitable. In comparison with our competitors, we are still on a
developing stage. As a company on a rise based in Toronto, we are
located in a multicultural country. For that reason, we want to achieve and
promote as much as countries within our abilities with the great amount of
resources available, which is our clients themselves. We will strive to meet
and satisfy the needs and expectations of our clients in order to obtain and
achieve a status equal or better than our competitors here in Canada.

V.

Tactics and Action Plans


A. Product Strategy
Product Mix: Our product offers the following features and benefits for
our consumers.

PRODUCT FEATURES
Low-cost airline

BENEFITS
Affordable to consumers
High quality hotel, comfortable

All-inclusive accommodation

beds, indoor swimming pool, sauna,


room service, etc.
Amazing natural attractions,
entertainment, good shopping

Wide-range attraction destination


centres, historical, and cultural
sites.

Packaging: Our product will be a package of air fare, train, hotel


accommodations, transfer, and a local tour guide. Our customers will
benefit more, and it is more convenient for them.

Branding: We will introduce Tokyo, Japan, as a destination that offers a


wide-range of variety in attractions. The customers will benefit from this
destination because it is affordable, and Tokyo is a popular destination
that contains an amazing natural attractions, entertainment, good

shopping opportunities, cultural, and historical sites. By the end of their


trip, our customers will be happy, satisfied, and fulfilled due to the
experience that they got. We will give them an experience to remember.

Product Level: Our core product will provide the basic needs of our
customers by serving an air and train for transportation, and an
accommodation in a hotel that will provide shelter and rest for our
customers (Hudson). Also, this product will offer a wide range of
attractions: beautiful natural attractions, stunning sceneries, good
shopping places, theme parks, historical, and cultural sites (Japan-guide).
We will also offer add-ons such as 1-day subway pass in Tokyo, discount
vouchers/coupons in souvenir shops in their destination, and a 10%
discount to those who will book early with us. All of these are to influence
the decision of our customers to purchase our product (Hudson).

Connection to differentiation/positioning strategy: Our product is


relative to our target market: Leisure travellers, aged 18-35. In addition,
we will position our product in areas such as a room at a Hotel
Metropolitan Tokyo, or at a Capsule Hotel located in Tokyo depending on
the preference of our customers.

B. Pricing Strategy
We will implement an outstanding value-for-money pricing approach for
this product; medium price, but the product we are selling will represent an
excellent value at the price (Hudson). We will set our prices based on a
competition-oriented pricing: we will fix the price in relation to our
competitors prices. By doing so, we will have an opportunity to increase
our sale volume or market share. In addition, we will give a 10% discount
to our consumers who will book with us early in a short period of time.
Apart from that, we will implement a product-bundle pricing technique; our
product will be a package that includes air fare, accommodation, transfers,
and many more.

C. Distribution
Our company aims to use an indirect distribution channel; we will
distribute our product to our consumers with the assistance of various
kinds of intermediaries; Tour Operators, Travel Agents, Travel Specialists,
and Internet, etc (Hudson 222). For instance, with the help of Travel
Agents, they can provide insightful information and counselling to our
consumers about the product that we are selling. Because of this, our
customers will be safe and comfortable when they get into the destination.
Truly, this is the kind of service that we want to deliver. Furthermore, with
the growing use of Internet nowadays, especially in the age group that we
are targeting, we envision to utilize this kind of intermediary in order to

further promote and distribute our product. In fact, airlines, car rental
companies, international hotel chains, have been marketing their products
and selling their services online (Hudson 230). We will also use different
kinds of online distribution: our corporate website, e-mail, and social
media (i.e. Facebook, Twitter, and YouTube). By doing all of these, we are
doing an intensive distribution strategy (Hudson 239), for this will
maximize the exposure of the growing market of our product that is just
starting to peak.

D. Integrated Marketing Communication Campaign Plan


Other Marketing Communications Activities:

Campaign Strategy: We will be campaigning our product to our target


market, which is 18-35 year old Canadians, to convince them in
purchasing our product. We may have some positive and negative
reactions as to how we will campaign our product because we will have to
analyze the situation and pick the best possible solution to our campaign
strategy. Also, we have to keep in mind our companys goals and
objectives while keeping our campaign strategy to be realistic,
measurable, and achievable within the given time period. The tour
package will be composed of an airfare, hotel accommodation, transfers,
tour guide, and add-ons are bundled with it. We will position our campaign
in our partners in the industry such as: travel agencies, tour operators,

hotels, and other means of advertising. We will invest in it in order to be


creative and make it more appealing to catch the attention of our target.
Thus, they will purchase our product, and we will be able to get the return
in our investment.

Communication Strategy: We will use both personal and non-personal


channel. First, we will conduct a personal selling or face-to-face interaction
with our customers and potential customers. Secondly, we will use an
effective media mix to convey our message to customers and potential
customers by using brochures, website, Internet, telemarketing, and many
more to get our message across. Our message strategies will be a fantasy
by using anime, which Japan is popular of, in our advertisements. Our
slogan will be Amazing Tokyo: An experience to remember.

Media Plan: Our media plan is to use an effective media mix to


communicate our message through various vehicles and reach as many
as possible, if not 100%, of our target market. First, we will advertise our
product in Print media: brochures. Also, we are communicating it in other
media as well. We will be using direct mail, telemarketing, newsletter, and
the Internet. We will make use of the popularity of social media such as
Facebook, Twitter, and YouTube to convey the message to our customers
and prospective customers. Lastly, we will also develop our own corporate
website that is easy to use and displays the products that are being

offered by the company to get our message across our target market. We
will be making an impression that they will not have any regret in doing
business with us. Instead, they will have an experience to remember.

Other Marketing Communication Activities: In order to improve and


maintain our relationship with our partners in the industry, we are going to
use Publications as a technique in Public Relations. We will provide
brochures and newsletters to draw the attention regarding our products
and services, and help us build our image and convey the news to our
target market (Hudson). Newsletters will showcase our exclusive deals,
promotional offers, and news about RS2K Vacations. On the other hand,
our brochures will show our products, promotional offers, exclusive deals,
trip inclusions and exclusions, and our company background to the
consumers. We also want to reach our customers or prospective
customers by conducting a Direct Marketing via telemarketing, e-mail and
direct mail. Just like in our brochures, our telemarketing, e-mail, and direct
mail will provide information about our product offerings, promotional
offers, and exclusive deals to our potential consumers. Lastly, our Sales
Promotions techniques will be focused on our customers, distribution
channels, and our sales force. Our objectives for doing this are to attract
customers and reward our partners and employees. For our customers,
we will implement a price cut in our product which is 10% off of the original
price if they book with us early. We will also provide discount

vouchers/coupons that they may use on the souvenir shops when they get
to the destination and 1-day subway pass for Tokyo. Lastly, our partners
and employees will be awarded a Familiarization trip in our product
destinations, if they reach a certain sales quota within a certain period of
time. We will also give them extra commission and overrides for their hard
work.

Budget: With the aims of increasing our market share in our chosen
target market, and to surpass our competitors in terms of sales, we will
implement percentage-of-sales method. Our budget will be set based on
our prospective number of sales, so our budget will be above average.

Campaign Evaluation: We will conduct a Persuasion Test to our chosen


target market, which are 18-35 year old Canadians in Toronto, to evaluate
if the advertisements that we are conducting are leaving a mark on them.
This is to ensure that we are doing what is right in advertising our product.
Furthermore, we also want to find out if our campaign is getting our
customers and potential customers intention to purchase our product.

WORK CITED LIST


Airlines and Destinations. Toronto Pearson. N.p., n.d. Web. 16 Jul 2014.
DistanceFromTo. Distance from Canada to Japan. Distancefromto. N.d., 2014. Web.
28 Jul 2014.
Entrepreneur. Using an Effective Media Mix. Marketing. N.p, 2014. Web. 29 Jul 2014.
Hudson, Simon. MARKETING for Tourism and Hospitality. 2nd Edition. Nelson
Education Ltd. 2009. Print.
Japan-Guide. Attractions. Japan Travel Guide. N.d. 2014. Web. 16 Jul 2014.
Japan-Guide. Etiquette. Japan-guide.com. 2014. Web. 28 Jul 2014.
Travelience. Visit Tokyo, Japan The BEST Travel Destination! Travelience. 9 Sept
2013. Web. 16 Jul 2014.
UTS. Contiki Shades of Green. UTS: Library.UTS Cricos. N.d. Web. 16 July 2014.