Professional Documents
Culture Documents
Contact:
Lee Gysen
Penn State RPTM
100 W. Park Ave,
University Park, PA
16802
Email:
ljg5563@psu.edu
INTRODUCTION
The Alumni Association Travel Office (AATO) is a department within the Penn State Alumni
Association. The AATO is based out of the University Park campus and provides travel opportunities
to Penn State Alumni and their families. The aim of the AATO is to reconnect alumni of Penn State
back to the university, which supports the university’s overall goal of lifelong learning. Marketing is
about identifying and meeting people’s needs. This report will discuss the unique market of the AATO,
marketing methods and strategies of the AATO, as well as specific recommendations for
improvements.
The AATO provides guided, all-inclusive trips for alumni of Penn State. Everything is planned for the
customers, so they really just have to show up and enjoy the trip. Not only do they get to travel, but
they also are able to develop relationships, and re- connect with the university and other alumni.
Customers pay from 2-10k for trips, while most trips cost around 3-5k. These prices are very fair as
they include travel to and from the destination, all activities, guides, and often times food. Most trips
are international, so customers are getting their every penny’s worth, as everything is organized for
them. The AATO utilizes multiple vendors who they run their trips through. Some examples are AHI,
AESU, and GoNext Travel.
To target younger alumni the AATO is developing cheaper trips with less structure than the traditional
escorted trips. These trips target the 22 and up age group. These trips would be less organized giving
more freedom to the client to make decisions about what they want out of the experience.
AATO Assessment 2
SITUATION ANALYSIS
Cooperative Environment
The AATO has a good relationship with the rest of the Alumni Association, which is above them.
Their affiliation with the Alumni Association makes the AATO interdependent with Penn State. The
university covers all of the expenses of the building that the AATO operates out of, as well as the
salaries of the AATO employees. All other expenses are covered by the AATO themselves through
their trip profits.
The AATO also works very closely with their vendors whom they have good communication with.
Many customers feel secure in the fact that the AATO utilizes vendors. The AATO has been working
with the same trusted vendors for years. Some of these include AHI Travel, AESU, and GoNext
Travel. The AATO works closely with the vendors to discuss and develop future trips on a regular
basis.
Competitive Environment
The AATO competes with other travel companies not affiliated with Penn State. A local example
being Centre For Travel Inc, who provides travel opportunities similar to those of the AATO, but to
anyone willing to pay. The main difference is that the AATO focuses on providing services to Penn
State Alumni. Due to the AATO’s unique focus on Penn State alumni I do not think Centre For Travel
Inc is taking business away from them. The AATO offers more than just a travel experience. They
offer a chance for alumni to reconnect with the university and make connections.
Social Environment
The current social environment of the U.S. is very favorable to the AATO. Travel and the value of
experiences has never been as popular as it is now. Upcoming generations are valuing experiences
more and more. Now that most COVID travel restrictions are gone, people are very eager to travel.
This is a great opportunity for the AATO. While most COVID travel restrictions are gone, there are
still many different political and economic factors people must consider when traveling in this day and
age. Because of this more and more people are choosing to use travel agencies like the AATO.
Travel agencies make things convenient, and save people time because they do not have to do any
research or planning themselves.
AATO Assessment 3
STAKEHOLDER DESCRIPTIONS
Approach
Strategic planning is the development of a clear mission for a whole organization, and a plan to
achieve that mission. In order to effectively develop our organization’s strategy, it is imperative that
we first determine our key stakeholders. We must focus on our relationships with the stakeholders
that matter the most because we cannot please everyone. Doing this is important because it narrows
down our objectives and allows us to have clearer, more focused goals. In the paragraphs to follow
we have outlined who we believe to be the AATO’s key stakeholders.
AATO Assessment 4
WHAT THE CUSTOMERS WANT
Problems Customers Face
Two of the top ten reasons people avoid traveling is because it is too time consuming, and they are
simply afraid to go out of their comfort zone and visit foreign places. Planning a vacation can often be
just as tiring and time consuming as the actual vacation. Additionally, people tend to avoid travel
agencies because they feel they can plan an organized, meaningful vacation themselves. All of these
factors are things the AATO solves for their customers.
AATO Assessment 5
AATO MARKETING APPROACH PROBLEMS
Fail to Effectively Segment the Market
According to Thomas Hammond, the AATO has no defined method of segmenting their market. As
explained by Thomas Hammond and Kelly Morgante, the little segmentation they do is done by age,
and the customer’s history with the AATO. Thomas Hammond explains their segmentation is a work
in progress, and there is currently little difference between the methods of marketing their different
segments. The majority of the trips offered by the AATO are targeting the 55 and up age group. Kelly
Morgante explained that the AATO has been experimenting with providing trips that target younger
alumni, however they have had little success. Kelly admitted that the AATO is unsure of how to
market to this group.
AATO Assessment 6
MARKETING STRATEGY RECOMENDATIONS
Stakeholder Focus
The most important stakeholder for the AATO is the Alumni Engagement Office. Because the
Engagement Office is above the AATO, and they are a part of the Engagement Office’s larger overall
goal, the AATO should focus on their needs and interests first. The mission of the Engagement Office
is the same as the mission of the AATO: to reconnect alumni of Penn State back to the university.
One of the Engagement Office’s current goals outlined by Thomas Hammond is creating a better
individualized approach to the alumni. The AATO is a tool for the Engagement Office to carry out that
goal. Since the mission of the AATO aligns with that of the Engagement Office, by focusing on the
interests of the engagement office they also fulfill their mission of reconnecting alumni back to the
university.
The youngest age group is fresh out of college, and often times low on money. The youngest age
group also likely has student loans and other expenses to worry about. The youngest age group also
has different interests than the older age groups. The youngest age group also gets most of their
information from social media. A large reason the AATO’s current trips targeted towards younger
alumni are not successful, is because they do not have their market segmented properly, which in turn
means they are not marketed to properly. The middle-aged group likely has children, and their lives
are now at a different pace than they once were. The middle-aged group is now also at a similar level
of technology use as the youngest age group. The middle aged group will likely not go on vacation
without their family, so the AATO must be able to accommodate this. Again, the reason family trips
were not successful in the past is because they were not marketed properly. The oldest age group is
still at the point where technology is not their preferred method of communication. They may
appreciate emails, but this group appreciates the mailed brochures that the AATO sends out. By using
these segments, the AATO can improve the personalization of their services and reach more alumni.
The AATO does very little advertising. Most of their advertising is done alongside the Alumni
Association itself in things like The Penn Stater Magazine. We really reach the younger alumni, we
recommend the AATO to start where it all begins by advertising around campus. By utilizing poster
boards, flyers, and billboards around campus, students will be introduced to the AATO before they are
even alumni. By doing these future alumni will be introduced to what the AATO is and when they are
alumni they can connect with the AATO. Additionally, the best opportunity the AATO has to reach
AATO Assessment 7
alumni of all ages is home football games. Using these same methods around campus and in the
tailgate areas would reach alumni of all ages.
The AATO also does not utilize content marketing. Content marketing is not only a way for the AATO
to showcase their services, but an opportunity to build trust between them and their customers. 77%
of shoppers state they are more likely to buy from brands that personalize their experience. Content
marketing allows the AATO to further personalize their services by marketing in a way other than
advertising. It is acceptable to advertise, but it is crucial to keep it at a minimum on social media. We
recommend the AATO to create separate social media accounts from the actual Alumni Association.
By doing this, customers and prospective customers can get a clearer idea of what the AATO can
offer. The AATO can do things such as post recent trips and include the customers in the photos.
When customers see themselves on the AATO’s social media they feel more connected to the
AATO. These are ways to build and keep lasting connections.
On the final page of this assessment is an example of a proposed AATO promotions schedule during
football season.
Update Services
Lastly, we recommend the AATO updates the product, or services they provide. Right now, all of the
trips the AATO offers incorporate an educational aspect. Additionally, most trips are targeting the 55
and up age group and are designed not too be physically strenuous. The trips are also high in price
with most trips costing around 3-5k. For the older age groups this is often not a problem. However,
price is an important factor for the younger age group.
A large reason the AATO is unsuccessful with the younger alumni is because they are ignoring
trends among the younger age group. One of the biggest travel trends among younger people is
extreme expeditions. People in the younger age group want to work for their rewards when they
travel. Hiking is one of the largest growing trends. More and more young people are being steered
towards locations such as Machu Picchu, and away from places like London. We recommend the
AATO listen to the trends and offer more physically demanding trips to accommodate the younger
age groups. We also recommend the AATO offer cheaper more affordable trips. Younger alumni do
not have as much money to spend on travel as the older age groups do.
Additionally, middle aged alumni are more likely to be married and have children. Because of this
they are not likely to travel without their families. We recommend the AATO incorporate more trips
open to families. This way the AATO has a way to incorporate every group of alumni. There is an
experience the AATO can offer to any alumni, no matter what stage of their life they are in.
AATO Assessment 8
Week 1 Week 2 Week 3 Week 4
Content -Instagram and -Instagram and -slow down social -Instagram and
Marketing Facebook posts Facebook posts media this week Facebook posts
throughout the throughout the -Insta story, one throughout the
week week Facebook post week
- Example of a mock AATO promotion schedule for a month during football season. This
example is based around the month of the 2022 white out game, with week one being the
week of the whiteout game.