Contiki Tours : Marketing Strategy Analysis Essay
Contiki Trips is an organisation that gives packaged getaways to a variety of local and international places. Their targeted market is limited by age. Consumers must be among 18 and 35 years aged. The examination will concentrate on Contiki *s Australian industry for worldwide holidays.
Contiki have used a concentrated marketing strategy in identifying marketplace segments. This means that they have selected to focus their particular marketing work on gaining a high share of one particular segment in the market (i. e. 18-35 year olds). The advantage of this sort of a strategy is the fact it permits specialisation which may produce economies in creation, distribution and promotion. Yet , it does entail some hazards in that marketplace needs can adjust or competitors may your segment. The risks and advantages of this strategy will be examined even more closely in the analysis with the marketing mix.
Product In order to assess the success of Contiki’s marketing strategy it is crucial to understand the size of the product made available from the business in terms of the advantages that it gives. Broadly, it is a service merchandise (eg. airline flight, bus trip, food preparation) although components of the product happen to be physical (eg. food, t-shirts). It is a niche product provided that it meets a specialised need and consumers are ready to spend a while searching for and evaluating. Additionally it is purchased infrequently.
It would also be considered a high involvement merchandise due to the comparatively high hazards of obtain. The notion of purchase risk will be investigated in more detail in an examination of customer behaviour. Selling price The nature of the merchandise, characteristics of the target market, and consumer actions each have important implications to get pricing. It has to be taken into account that the selling price paid for the item by the buyer involves more than nominal cost (i. elizabeth. the price tag’). And also the money taken care of the product, consumers endure time costs and must expend behavioural and cognitive work.
Cognitive work may require the customer coping with some of the risks of buy (Ross, 1984). There are a number of implications on this analysis intended for Contiki. Firstly, the business can deal with the price that consumers shell out by minimising the time, behavioural and intellectual effort which is used purchasing the item. By lessening the costs to the consumer, Contiki is able to raise the perceived worth of their item to buyers.
Over-the-phone or internet info and arranging services would decrease the time taken in in fact purchasing the item, and therefore the expense of the product for the consumer. Also, convenient agent locations would minimise the behavioural work for buyers. Contiki make an effort to coordinate using a wide range of travel agencies who also are informed by Contiki sales personnel on merchandise attributes (the distribution channel and its significance for costs with always be covered more thoroughly in a later portion of this analysis). It should be recognised, however , that numerous consumers get utility coming from extensive intellectual involvement in the purchase process.
For instance , some customers may enjoy discussing for length with consultants, all their itinerary and travel choices. To the extent that this occurs, friendly and knowledgeable travel consultants needs to be an integral part of Contiki’s product giving. In order to achieve this, promotion (i. e. personal selling) for the distribution channel should be emphasised. From this conversation it is obvious that the interaction between specialist and buyer is a crucial aspect of the value delivery collection.
Increasing perceived value entails managing those or individuals in the intake process (Berry, 1980; Feus & Bitner, 1981).