Marketing Plan for Bespoke Package holidays

Contents

Introduction
Page 3

The first analysis which is a requirement is a possible PESTLE analysis

along with an assessment of Porters Five Forces
Pages 4-7

Porters Five Forces as an analysis of competitive advantage and a

threat to entry within the market
Pages 8-9

Marketing Objectives
Pages 10-11

Marketing plan
Pages 12-13

Promotional Plan
Page 14

Monitoring the marketing plan

Page 15

Conclusion/Recommendations
Page 16

Bibliography
page 17

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Introduction

The organisation Expedia.com requires a business model which will provide

an expansion of products. The innovation for the organisation will be package
holidays and especially those focussing on travellers who require a bespoke
holiday and would choose a different type of holiday such as horse riding
through Tanzania or canoeing in Wales. The company is able to provide
flights, accommodation, car hire and advice to travellers regarding the
destination at present but the new concept where the company could innovate
would be to link not only the travel modes which are presently provided but
also as an end result the traveller will have all requirements provided not only
the destination, this would include a collection service from the airport and a
tour guide. There is a genuine need to create value for the customer by
expanding the product range adapted to the consumer and their
requirements. “A good company offers excellent products and services. A
great company also offers excellent products and services but also strives to
make the world a better place.”
― Philip Kotler, Corporate Social Responsibility: Doing the Most Good
for Your Company and Your Cause, thus by offering excellent products the
end result is not only providing a competitive edge against those in the
industry but also a loyal customer base.

A monopolistic strategy is possibly required as the industry witnesses several

innovative changes within the travel market for instance an increase in
consumers demanding more bespoke holiday’s online rather than visiting
travel agents who were once traditionally within the high street. There is also
a slight shift to service fees originally the commission was received from the
sale of the holiday package.

In order to ascertain if the company should be adopting the bespoke package

holidays as an extension of the services provided, there firstly needs to be a
PESTLE analysis in the first instance then an evaluation of the threat to entry
which will be determined by Porters Five Forces. This would then lead to the

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internal competencies of the organisation integrated with the marketing mix
and then the media type to be used within the marketing campaign.

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The first analysis which is a requirement is a possible
PESTLE analysis along with an assessment of Porters
Five Forces

PESTLE Analysis

PESTLE can provide an indepth understanding of the innovative service at

Expedia.com but also possible issues which could arise and how to resolve
present issues and improve the service. PESTLE analysis is a Political,
Economical, Social, Technology, Legal and Environmental investigation of not
only the organisation but establishing an appropriate business model for the
extension of a product range.

Political and legal factors are at times combined as legislation is led by

political demands of present governments. The travel industry is regulated but
in particular airlines are heavily regulated which can involve the company’s
business process, landing rights provided, passenger safety and obligations
to the passenger. The political climate will affect travel not only due to

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countries which can be visited but also attitudes vocalised by governments in
power for instance when David Cameron was the Prime Minister of the United
Kingdom he encouraged the residents of the United Kingdom to holiday within
their own country in order to generate business hence improve the economy.
(The Guardian, Thursday 12 August, 2010).

Expedia.com does not have an obligation to support governments however

the company does have a responsibly to follow trend which in turn will
influence a business model and the products provided if the population of the
UK have chosen to be influenced within their decision making process. The
political environment for holidays tends to be mainly affected by environments
abroad where the economic or political stability of the country is either
affected, by the fact the political situation is not established for instance
holidays to the Middle East where Expedia.com are not under an obligation to
rescue consumers as the company tends to source the information and has
no ownership of the various methods and mode of transport or
accommodation however cancellations will become a source of angst for the
company.

The example of civil war or terrorism will persuade consumers on the choice
of their holiday destination however other factors are combined within holiday
destinations such as an objection to tourists within Europe. There are various
countries such as demonstrations in Spain and Croatia are objecting to tourist
numbers visiting. “There are fears protests are gathering momentum across
the continent, with locals fed up in Italy and Croatia too. Dubrovnik's biggest
problem is the influx of tourists from cruise ships, which have thousands
entering the city at a time.It has become such a problem that the mayor
recently announced the use of cameras in the city to monitor the number of
tourists entering to ensure they can keep a safe limit on it.” By Claudia
Cuskelly PUBLISHED: 09:20, Thu, Aug 17, 2017 | UPDATED: 11:43, Tue,
Aug 22, 2017 Daily Express. These situations have driven British holiday
makers to seek holidays further a field such as America, South America and
the Far East but the majority require the confidence to visit new destination

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within a safe environment hence the introduction of a bespoke package
holiday.

The continual rise of the GDP within the last annual year has provided
households with additional income. A confidence within the economy can
develop a decision making process where consumers are likely to purchase
luxury products and services. The essential products are food, clothes,
transport and homes, during a recession this become the focus and the luxury
upmarket companies suffer from a lack of consumers as necessarities
become a priority. When there is growth within the economy consumers begin
to develop a confidence where luxury products and services become part of
the family or individual purchase. This in turn contributes to the economy and
organisations such as holiday firm’s benefit not only from a profit making
stance but also companies gain a confidence to grow and are able to plan
growth from short to medium term, this in turn will generate employment,
hence an increase taxpayers contributing to the country.

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This in turn can only make the country financially strong and governments are
able to fund public services, due to the increase in tax payers. The growth in
the economy influences all aspects of society. Expedia.com will be able to
take advantage of growth as holiday companies are traditional considered a
luxury service.

The social trends of society are continually changing and hence organisations
need to adapt for instance supermarkets evolved into a one stop shop where
consumers can purchase food, electrical products, clothes or toiletries. The
longer working hours can affect the hours supermarkets remain open or the
delivery services provided, Tesco for instance will deliver items purchased
online to a train stations car park for commuters who travel to and from the
city of London. The demand for organic food and coffee shops have
influenced stores such as Wholefoods to exist, even though the cost of
products would be far higher than a high street supermarket. Wholefoods
target audience is not only individuals who demand organic products but also
the stores exist in more affluent areas such as Kensington and Fulham as
they have targeted an income group.

Social also includes, health and lifestyle, education, the movement of social
mobility and an attitude to work. The attitude to health for instance witnessed
an increase in gyms and community gyms, an awareness of obesity,
secondary diabetes as well as diet. This is an industry where food trends have
associated with gyms in order to open another avenue for revenue. The
holiday and travel industry have also reacted to the health trend by offering
spa holidays or yoga retreats to Islands in the Far East such as Phuket.

When considering the holiday and travel industry the consumer will play a vital
part when expanding the organisation and products and the social trends will
influence any organisation decisions. The evidence is becoming increasingly
obvious that consumers book holidays online and would prefer to do so,
airlines, hotels, train lines have all responded by providing websites and

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availability on these for the consumer. The sharing economy is increasing for
instance Airbnb and Uber as well as online reviews affecting travel
companies. The company regardless of industry have all adapted to the social
trends of their consumer, Expedia.com must also modify their business plan
for the consumer and as the climate is changing on the requirements for
holidays the company must adapt to survive.

As Expedia.com is an online organisation for booking accommodation, travel

and transport, technology does engage within the business model. The
industry has been revolutionized by the internet. The period of a decade has
seen evidence that organisations regardless of the company which could be a
charity, educational establishment, public sector all have internet access from
paying council tax to enrolling at a university, it can all be achieved by the
use of the internet. The lack of travel agents and airline offices on the high
street has been impacted by technology, the bricks and mortar buildings are
very rare but not non existent. Expedia.com have existed only through the
internet and even though there are other brands who are part of the
company’s brand range, the company does not provide package holidays.

The legal requirements not only apply to the travel industry but how an
organisation is configured according to legislation for instance within the
United Kingdom it is law that organisations must register their Head Quarters,
Expedia.com’s British HQ is in London, then there is the consideration of
corporate tax which is established firstly by law but also influenced by the
politically government. The Labour party increase corporate tax in order to
fund public services, whereas the Conservative government have always
believed that growth and the development of employment must take priority
which in turn will create additional tax payers. The type of material on the
website is controlled by legislation for instance the company cannot mislead
consumers and need to state, products, services terns and conditions in a
clear and concise manner. The legal and political status are at times
combined as one will influence the other for instance political parties establish

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corporate law and provide an environment where an organisation must
function.

The environment has been a dominant factor for over a decade. The changes
in climate will often affect trade, which often can provide a condition where the
consumer will react to the company. The geographical location, sustainability
or reducing pollution all play an important factor within an organisation. The
travel industry are continually under pressure to reduce emissions, in such an
instance the car industry have begun the evolution of developing electric cars,
which again is led by political environments as the government in the United
Kingdom have stated that all petrol driven cars need to be phased out by
2024. The sustainability of fabrics in order to protect natural resources and
organisations either through the mission statements or as part of the branding
policy will promote their commitment to protecting the environment.

“The UK has committed to a programme that will phase coal out of all
electricity generation by 2025.

Canada has also said it will close its coal power stations by 2030, and both
countries are urging others to put a stop to coal-powered energy generation.

The commitment follows an earlier pledge by Amber Rudd to phase out coal
by 2025.”

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The fact that aeroplanes produce emissions from the plane which in turn
creates a build up of pollution within the atmosphere has been attacked and
criticised by environmentalists on a number of occasions, various
governments have signed policies to reduce pollution at present this mode of
transport remains without a solution on reducing the emissions.

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Porters Five Forces as an analysis of competitive
advantage and a threat to entry within the market

Porters Five Forces are used to analyse the threat of competition within the
industry but also how to define competition. Porter’s analysis was to not only
consider the obvious but all aspects of competition for instance competition to
a hotel is not only a hotel but every aspect of the differing accommodation
available for instance, a caravan, family holiday homes, campsites and
chalets.

The competition within industry creates bargaining power for both consumers
and suppliers depending on the proportion of other organisations within the
industry for instance if the market is saturated then the consumer has the
power to dictate the price of the product, an example could be Baked Beans,
consumers decide whether there is a need or want for a named brand such as
Heinz or the supermarket own brand which is less expensive “The value
decade is upon us. If you can’t sell a top-quality product at the world’s lowest
price, you’re going to be out of the game . . . the best way to hold your
customers is to constantly figure out how to give them more for less.—Jack
Welch, Chairman, General Electric”
― Philip Kotler, Kotler on Marketing: How to Create, Win, and Dominate
Markets

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When relating Porters Five Forces to the travel industry there is no doubt that
it has become highly competitive. The airline industry alone is competing for
routes and cost. Those consumers who require a less expensive cost and a
basic service are more likely to choose Easy Jet along with a Travel Lodge.
The more established Airlines began to compete against the budget airlines
by offering similar costs. The consumer on these occasions is driving the cost
and demand which then has provided buyer power and not supplier power.
The competition to offer cheaper or bespoke holidays is increasing because of
this. The bargaining power by the consumer is increasing as the ultimate goal
is to gain customers and customer loyalty. “consumers tend to be more price
sensitive if they are purchasing products that are undifferentiated, expensive
relative to their incomes, or of a sort where quality is not particularly important
to them.” Michael E. Porter, Competitive Strategy: Techniques for
Analyzing Industries and Competitors

The travel industry as many other industries will always experience

competitive rivalry with the exceptions of an oligarch environment which exists
mainly in the pharmaceutical industry as each company concentrates on their
own individual research and products. The travel industry does not possess
any such situation. The status is not only to stay ahead of the competition but
also to increase market share. Where competition is intense it is important to
ensure that pricing strategies meet the consumers expectations as the
consumer can purchase the same product or service elsewhere (from a
competitor), there can be instances when the competition is limited the
customer’s choice of organisations to purchase from is greatly reduced for
instance medication, Astra Zeneca are the experts in asthma medication and
it can only be bought from this organisation. “Competition has taken place at
the wrong levels, and on the wrong things. It has gravitated to a zero-sum
competition, in which the gains of one system participant come at the expense
of others. Participants compete to shift costs to one another, accumulate

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bargaining power, and limit services. This kind of competition does not create
value for patients, but erodes quality, fosters inefficiency, creates excess
capacity, and drives up administrative costs, among other nefarious effects.”
Michael E. Porter, Redefining Health Care: Creating Value-based
Competition on Results

The fact that compettion exists for Expedia.com cannot be eliminated and by
extending the product/service range will ensure that the organisation will
determine profitability and retaining market status. Organisations such as
Lastminute.com or Trivago even though are competitive regarding cost do not
provide the full range of services of Experdia.com. In order to ensure survival
within a crowded industry such as travel it is imperative to either ensure
consumers receive their wants/needs or that a want is created for instance the
innovation of developing holidays to less travelled countries and areas as a
package holiday can become an appealing concept. There are strengths for
Expedia.com as well as weaknesses, even though there are new entrants to
the market such as Airbnb or Travelzoo, or Trivago to name but a few, in
some cases the accommodation or location may only be available to
Expedia.com such as Borneo which is not a much travelled destination.

Internal competencies:

The core competencies of any organisation are essential for driving the
company forward and assessing if new products/services can be introduced.
This can involve the internal processes of the supply chain where all
competencies are linked from flight to accommodation. The internal processes
are the core of running the organisation. The brand is important to the
organisation as this would influence consumer choices.

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15
Marketing Objectives

The objectives of marketing are to ensure that the company’s objectives are
also met through a marketing strategy: the objectives need to be Specific,
Measurable, Attainable, Relevant and Time Based. The objectives have to be
specific so that the organisation will have transparency on the tasks require to
achieve the objectives. They will be measured as the company will require
evidence of progression and each milestone will be needed to record within a
time period. The objectives will need to be attainable, if they are not then it will
become difficult to measure success.

The objectives of the marketing strategy is to gain and retain a consumer

base as well as to stay ahead of the competition.

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Marketing objectives through SMART analysis

The specific marketing tools which are relevant to an online organisation such
as Expedia.com is deliver an advertising and Public Relations campaign such
as commercials on television, even though this can be costly, the return on
investment will be able to support the expenditure. Sponsoring sports events
as part of the marketing communications tools has been a successful venture.

The company can contact existing customers in order to make them aware of
other holiday deals and potential packages. This contact is also useful as
customers feedback will be used to ascertain if bespoke package holidays
can be adopted by the company. However it is important to concentrate on
one objective at a time for instance if the plan was to deliver holidays to over
50 year olds and then later only to market to a certain target audience who
live in affluent areas, then this would be two different objectives which will
require two different strategies.

The use of milestones and targets will determine if the plan is measurable
.The use of marketing tools needs to be measurable, there are various
methods where this can be a deciding factor on using certain tools. As
discussed previously if customers are contacted for feedback this can be used
to measure the success of the organisation and how to improve the service or
in some cases whether to retain a supplier. An example would be to book 35
hotels in South Africa within the Cape region for Christmas, this would be
measurable and the milestone is the date to achieve the bookings.

The importance of ensuring that marketing objectives are attainable is to

either confirm that the aims of the organisation are realistic and that the
resources are available to deliver the organisations targets. The lack of
achievable goals can create a lack of motivation within the organisation
therefore it is useful to have data from previous years in order to comprehend
a realistic achievement for instance as discussed previously the scenario of
booking 35 hotels in Cape Town, if for the previous years there had only been

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10 hotels booked then the figure of 35 is unrealistic and unattainable. The
next focus by the organisation should be the reason of low sales and what will
be a realistic target. The aims might be achievable but the resources may not
be available, in this case it could be that the hotels in Cape Town close for the
Christmas period as some bespoke bed and breakfasts do as this tends to be
the less profitable season for smaller hotel owners.

The marketing strategy will have a timeline which will involve the day it begins
and when it will end. If the marketing plan is to last a year then it would be
prudent to observe each month or every quarter depending on the product or
services for instance a new flavour of Coca Cola released onto the market,
the sales can be observed on a monthly basis to determine the success
regarding other services such as package holiday will need to be observed
over a period of six months as the majority will book a holiday for the summer
in Spring, either way a timeline of observation is required.

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Marketing Plan

When developing a marketing plan it is essential to focus on the targets,

positioning and segmentation. The positioning of a product is essential as
competition is rife within the market and to ensure they appeal to consumers.
The service of the bespoke package holidays will be positioned within the
holiday market and will need to research the segmentation and target
consumer.

The segmentation of a market is important as it allows the organisation to

focus on a target consumer as discussed previously Wholefoods, target
market was based on not only a principle of organic foods but also an income
segmentation where the stores are in affluent areas.

The segmentation of a market assists in determining the target market and

ultimately the customer base. Segmentation is imperative to focus the
marketing strategy the issue with not having a segmentation is that the
marketing strategy can be overstretched hence the effectiveness will be
limited or ineffective. The segments within the strategy can be age, income,
education, ethnic minority, geographic location or gender. Once the segment
of the market has been defined then a strategy can be developed at the target
consumer. (Kottler and Armstrong 1998). The new bespoke package holidays
should be focussed on those without families, as the individuals who would
choose such a holiday would not want to take a family hitchhiking in the
Peruvian mountains for instance, this is not to say that any family would but it
has been proved that the main destinations for families are Florida, Spain or
Greece.

The marketing mix of the 7 marketing P’s is imperative when determining the
position and target market, as well as the competition within the industry. The

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mix is used linking with each method to ensure an effective strategy is
delivered. The product is released which would have determined that the
product has the physical attributes to appeal to the general public, this would
include the design and packaging as well as quality. The price would have
been established before the product release, this would have been
determined by the competitor’s price of a similar product and the public’s
willingness to pay for the product. The correct people need to be employed as
this will also contribute to the strength of the brand, highly qualified individuals
with excellent customer service skills will ensure that the customer receives
an efficient standard of service which will then play an important role of
retaining customers as well as brand. It is important to recognise the
company through the brand reputation hence physical evidence, this links into
people as the general public see a brand name there will either have a
negative or positive feeling associated with the name. The internal process of
an organisation needs to ensure that the company will be able to cope with
the consumer demands when delivering the service, the process can include
receiving the order, delivering the product, invoicing the client.

As discussed previously price is important within the industry as there are

various competitors not only to the online bespoke holiday but also suppliers

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such as hotels where competitor may possibly provide a cheaper price to that
of Expedia.com. The product will require the detail within the destination,
accommodation and the people to be employed by the company who will
ensure that the consumer is satisfied with the holiday or to provide any form of
assistance which could include tour guides. The Place can be a physical
location but in this case will mainly be web based however as the company
expands service/product range may require limited physical evidence as well
as place. The physical evidence will mainly be an online concept however the
package holidays could also own coaches to collect travellers from their flights
which would be the company’s coaches if required as it would depend on the
number of those who have booked the holiday.

The process is an important factor within the whole introduction of the

package holiday. The internal processes need to link to each other to ensure
that the consumer is satisfied with the booking process in the first instance
then with the end result where the tour guide would be meet and greet, hotel
information has been received and tours are booked.

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Promotional Plan

The marketing budget will need to be determined by the marketing

communication tools to be used for instance social media will not be as costly
as advertising campaign on television however both are essential. The
adoption of the Drip/Burst campaign will be useful, drip will allow a slow
continual process to gain customers and the burst will allow the message to
have an impact. “Advertising consists of all activities involved in presenting to
a group a non-personal, oral or visual, openly sponsored identified message
regarding a product, service, or idea. The message, called an advertisement,
is disseminated through one or more media and is paid for by the identified
sponsor”-William Stanton.

The drip campaign should be on social media featuring on Facebook, the

reason for this would be that as potential consumers log into their Facebook
page they will view the promotion by the company continually as holidays can
be a large investment which require thought over a period of time, however
the Burst part of the campaign would be more useful as a television advert in
order to ensure that the name of the company is recognised, the Burst should
be first and then the Drip part of the campaign should be released.

The Owned part of the campaign remains effective as a tool due to the
popularity of social media. The website combined with Facebook, Twitter and
a blog will provide a foundation for the new product release. The consumer
will book holidays based on opinions found on blogs and Twitter, even though
it will also have complaints, this will need to be managed by public relations.
The challenge when using Owned media is that there is not a guarantee that
the target audience has noted the message or whether the information has
been accessed or delivered.

Paid media is a proactive method where the company will pay a channel to
advertise the company and the project on such media as billboards, bus stops

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or sponsoring sports events. This can be effective and proved to be so when
major companies sponsor large events such as the Olympics when this
sporting event was held in the United Kingdom, Cadbury were one of the
sponsors of the event, the company are recognised by the golden swirl with a
purple background. The negatives of using such a campaign cannot always
be measured for instance how many people saw the campaign on a billboard,
there is not a specific measuring tool. This said it is always more positive to
use Owned or Paid media rather than Earned media where the consumer
takes full control which will be difficult to manage by the organisation
especially if the comments and feedback are negative.
.

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Monitoring the Marketing plan

The key marketing metrics will provide evidence of a successful campaign

and the cost or budget. The key metrics will determine the customer base,
the cost of the project as well as the potential of the new service. The target
will firstly be existing customers as this would be a much less conflicting
stance to begin. The potential of the project will firstly rely on these
consumers and their feedback, once this has been determined then can the
future opportunities develop into a tangible concept.

The opportunities will be ongoing and with the retentions of loyal customers
the communication and the potential of new businesses will be continual. The
cost of the using the metrics for instance the cost of contacting targets which
then lead to opportunities will determine the budget required for the campaign.
The information regarding budgets and how they are communicated has
changed and there is much more of a science when developing costs for
campaigns.

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Conclusion and Recommendations

In conclusion the marketing strategy is able to meet the requirements of the

organisation in order to increase the product range. The use of marketing
communications and an awareness of competition within the industry will
ensure that the company is able to succeed within the new venture.

The recommendation is to develop the bespoke package holidays, once

agreed on destinations the marketing objectives can be delivered integrated
within the marketing communication tools. The various aspects of social
media, advertising and the Drip strategy will provide an effective basis on
which to begin. This will then lead to a paid media method which would be a
good fit for the company, very reluctant to use owned method as it would
provide the entire control on the consumer which would be difficult to manage
especially if there is negative feedback or an attack on the organisation.

The threat of competition even though exists to the organisation, providing a

new service will be able to survive against any new entrants and existing
organisations, as Porters Five Forces proved along with the PESTLE analysis
the company would be able to withstand external issues which may force the
organisation to adapt.

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Bibliography

Kotler, P.T., Armstrong G. (27 July 2017) Principles of Marketing, Global

Edition, Pearson, London17 edition

Kotler P.T. Kotler (7 Jun. 1999) MarketingPublisher: Free Press

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