Case Study on Inkaterra Assignment

To increase the demand of tourism
in Peru by using effective marketing
strategies: A case study analysis of
Inkaterra

ACKNOWLEDGEMENT
I am thankful to all those individuals who have provided guidance and assistance as well
to accomplish the dissertation. Firstly, I owe my thanks to mentor who gave me chance to
undertake this dissertation and motivate me to do it in ethical manner. Furthermore, I am
thankful to my team members, family and friends who helped me in all possible settlements.
This leads successful finishing point of dissertation and achievement of meaningful results.

ABSTRACT
In the contemporary ear, hospitality industry is growing very fast. It this situation it can
be said that when an industry grow with exponential rate then the organizations of that sector
start of face competition and same thing has found in the present research. The following study is
based on to increase the demand of tourism in Peru by using effective marketing strategies by
Inkaterra. The entire investigation has based on secondary research where different types of
models related to international marketing, strategic management and international business has
taking into the consideration. The reason of applying all these frameworks is because Inkaterra
has various kinds of problems related to marketing. Application of 9 models have helped in
analysing the issues of the organization and find the solution of those to minimize the impact on
the business operations. Along with this, it has also explored that Inkaterra has used lower
pricing and profit level strategies to increase the sales of the services. From the case study, it has
found that the buying behaviour of the customers have changed with the time. At last in the
investigation, it has been some recommendations have also given with respect to Inkaterra so
that organization can effectively use marketing strategies and increase demand of tourism in
Peru.

TABLE OF CONTENTS
ACKNOWLEDGEMENT...............................................................................................................2
ABSTRACT.....................................................................................................................................3
CHAPTER 1- INTRODUCTION....................................................................................................1
Background of the study.........................................................................................................1
RESEARCH PROBLEM (MARKETING MANAGEMENT OF INKATERRA, LOW
DEAMND OF TOURISM IN PERU, INTRENATIONAL BUSINESS OF INKATERRA)........2
RESEARCH QUESTIONS.............................................................................................................3
RESEARCH AIM AND OBJECTIVES:.........................................................................................3
STRUCTURE OF CASE STUDY ANALYSIS:.............................................................................3
CHAPTER 2 - CASE BRIEF..........................................................................................................1
Description of the situation....................................................................................................1
Scope of the study..................................................................................................................3
Chapter 3: Problem statement and plan of analysis.........................................................................1
Marketing management problem of Inkaterra and models.....................................................1
Tourism and hospitality strategy in global market place of Inkaterra and models................6
International hospitality Management of Inkaterra and models.............................................9
Research Methodology.........................................................................................................13
CHAPTER 4: ANALYSIS AND FINDINGS...............................................................................17
CHAPTER 5: PROPOSED SOLUTIONS TO PROBLEMS/ RECOMMENDATIONS AND
LIMITATIONS OF THE ANALYSIS..........................................................................................31
Solutions...............................................................................................................................31
Recommendations................................................................................................................37
Action plan...........................................................................................................................38
Limitations............................................................................................................................39
Implication............................................................................................................................39
CHAPTER 6: FUTURE APPLICATION OF RESULTS.............................................................40
About Hilton Hotels and Resorts Group..............................................................................40
Application of models on the identified problems on Hilton Hotels and Resorts................42
TRANSFER OF LEARNING.......................................................................................................52
REFERENCES..............................................................................................................................55

LIST OF ILLUSTRATION
Illustration 1: Structure of case study analysis................................................................................4
Illustration 2: Sales performance of Inkaterra Financials in 2011...................................................2
Illustration 3: Gross income of Inkaterra Financials in 2011..........................................................3
Illustration 4: Research Problem and relevant models....................................................................1
Illustration 5: SWOT analysis.........................................................................................................2
Illustration 6: Online marketing strategies......................................................................................4
Illustration 7: Core Competence model...........................................................................................5
Illustration 8: Porter’s Generic Strategies model.............................................................................7
Illustration 9: PEST Analysis..........................................................................................................8
Illustration 10: Value chain analysis model.....................................................................................9
Illustration 11: Porter’s five force model.......................................................................................10
Illustration 12: CAGE framework.................................................................................................11
Illustration 13: Foreign Market Entry Modes................................................................................13
Illustration 14: SWOT analysis of Inkaterra.................................................................................17
Illustration 15: Marketing issues faced by Inkaterra.....................................................................19
Illustration 16: Porter's Generic Strategies Model of Competitive Advantage for Inkaterra........21
Illustration 17: PEST analysis of Inkaterra....................................................................................23
Illustration 18: Porter’s Five Forces Model of Inkaterra...............................................................26
Illustration 19: CAGE Framework of Inkaterra.............................................................................29
Illustration 20: Foreign Market entry issues faced by Inkaterra....................................................30
Illustration 21: PEST analysis of Hilton Hotels and Resort (Source : Tribe, 2015)......................44
Illustration 22: BCG Matrix for Hilton Hotels and Resorts..........................................................50

CHAPTER 1- INTRODUCTION
Background of the study
Inkaterra can be determined as a sustainable tourism institution which was founded in the
year 1975. This organization provides different types of travel services and develops packages
which helps in attracting customers (Thqerle and Soto, 2015). In addition to this, cited firm has
rain-forest in Amazon of stewardship over 17,000 hectares located at south east Peru. Moreover,
in urban area of Maachu Picchu Historical sanctuary it has 10 hectares of cloud forest. In the
year 2011, cited firm received about 100,000 visitors at its hotels and restaurants. In addition to
this, there are about 500 employees and has served over 900,000 travellers (Collantes and
Martel, 2015). In addition to this, there are few of the things for which cited firm is devoted and
it includes protecting the culture and diversity of Peru. Conservation and preservation of
sustainable tourism in Peru. Focusing on providing visitors with memorable experience. In order
to grow, it is very important for any organization to provide its customers with high quality
service and in accordance with Inkaterra do focus on their services and help their travellers to
develop memories and experience (Abraham, 2012).
In this respect, there are three types of issues identify from the given case study of
Inkaterra which are ineffective marketing management, poor strategic management and problems
faced during the international expansion of business. In this context, marketing management and
strategic management both are important factor for the success of an organization (Candela and
Figini, 2012). With the application of both of these, it becomes easier to gain competitive
advantages in the marketplace. Along with this, the future planning relating to promoting the
services in the market place also based on both marketing and strategic management tactics. In
the case of Peru, the ineffective marketing strategies have deceased the demand of travel and
tourism at cited location. Along with this, the lack of cost leadership style and other issues, the
strategic management of Inkaterra has also failed to attract more and more travellers across the
world (Casprini and et. al., 2016). So, to increase the demand at cited destination, it is more
important for the organization to change marketing strategies and adopt different types of
solutions to attract more customers. On the other hand, with the application of various kinds of
strategic models, the reasons behind poor strategic management can be easily resolve. In this
context, various kinds of problems has to solve by Inkaterra at the time of expansion of business
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at international level. For this, company has required to adopt some strategies that can resolve
business expansion problems in more effective manner (Cooper, 2013).
RESEARCH PROBLEM (MARKETING MANAGEMENT OF
INKATERRA, LOW DEAMND OF TOURISM IN PERU,
INTRENATIONAL BUSINESS OF INKATERRA)
In accordance with the current study, the main issue is that the Peru which is the 3rd
biggest kingdom in South America. There are many beautiful place in Peru in which can be
effectively used in order to increase tourism but the main issue is that the travel and tourism
agency are not able to make use of effective marketing strategies with the help of which they will
be able to increase tourism (Glanz, Bader and Iyer, 2012). As the cited country has about 1.28
million square kilometres and half of the country is covered with water. With this respect, it is
very important for the organization to make sure that they provide proper information to their
potential customers. In this context, the research problem is regarding making use of different
types of marketing strategies which will be helpful in providing proper information to travellers
(Hallbäck and Gabrielsson, 2013). In this context, there are different types of marketing
strategies which can be adopted by Inkaterra and they will be able to increase tourism in Peru.
People prefer to visit those places which fulfil their needs and requirements and a place where
they will be able to enjoy their holiday. It been 41 years since Inkaterra has been established
however it has not been able to develop a great impact over the customers mind. This type of
issue is because of lack in use of marketing strategies. By using marketing strategies, firm will be
capable to increase their perception among customers mind (Green, Whitten and Inman, 2012).
Peru has high potential of increasing its customer’s base as there are many beautiful spots which
is very effective in attracting customers. In this context, Inkaterra have to develop awareness
among the various place and this can be done effectively with the help of making use of different
types of marketing strategies (Glanz, Bader and Iyer, 2012). Further, there are many
organizations which provide similar types of services like Inkaterra but it is very important for
the cite firm to make use of different strategies through which they will be able to attain
competitive advantages and this is very helpful in developing positive perception among
customers mind towards the services which are been provided by Inkaterra.
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RESEARCH QUESTIONS
Marketing management of Inkaterra1. What are the necessary changes in marketing strategies of Inkaterra which can increase
the demand of tourism in Peru?
Tourism and hospitality approach in global market place of Inkaterra2. What are the major reasons behind failure of tourism and hospitality approach in
international market place of Inkaterra?
International hospitality Management of Inkaterra3. What are the major problem of Inkaterra for expending its business at international level?
RESEARCH AIM AND OBJECTIVES:
Aim
To increase the demand of tourism in Peru by using effective marketing strategies: A case
study analysis of Inkaterra.
Objectives:
 To make necessary changes in marketing strategies of Inkaterra which can increase the
demand of tourism in Peru?
 To determine the major reasons behind failure of tourism and hospitality approach in
international marketplace of Inkaterra.
 To identify the major problem of Inkaterra for expending its business at international
level.
 To suggest appropriate strategies for growth and development of tourism industry of
Peru.
STRUCTURE OF CASE STUDY ANALYSIS:
For analyzing the give case study researcher will follow a systematic structure which will
comprise different chapters. These chapters will helps in understanding research problem and
getting appropriate solution to resolve this problem in effective manner (Hollensen, 2015).
Structure of this case study analysis will be based on research process and different chapters of
this analysis will be based on stages of research procedures. These stages are understanding
research subject and given case study, identifying research problem, collecting facts and figures,
analyzing collected data, interpretation and analysis of findings, making conclusion and
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