Contiki Company Analysis: A Marketing Perspective Report (MKTG1001)

This report presents a marketing analysis of Contiki, a travel and tour company. It begins with an executive summary and table of contents, followed by an introduction outlining the report's structure. The analysis includes an examination of Contiki's market and consumer situation, detailing the indus...Read More

Running head: COMPANY ANALYSIS
COMPANY ANALYSIS
Name of Student
Name of the University
Author Note

1COMPANY ANALYSIS
Executive Summary
The aim of the study is to carry put a marketing analysis of the company Contiki. For this, the
macro-economic analysis is carried put, the marketing mix of the company is analyzed, the
company is market situation is evaluated , the competition in the market is evaluated and other
activities are carried out. A SWOT analysis of the company is carried out that shows all its
strengths, weakness opportunities’ and threats.

2COMPANY ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
Market/Consumer Situation.............................................................................................................3
Industry and market/product............................................................................................................4
Target market...............................................................................................................................4
Consumer behavior issues...........................................................................................................5
Conclusion and recommendations...................................................................................................6
Reference.........................................................................................................................................7

3COMPANY ANALYSIS
Introduction
Market analysis refers to market assessment by using various quantitative and qualitative
methods. It helps in analyzing the market both in terms of value and volume, the segments of the
customers, patterns of buying, the market competition and environment in terms of various
regulations (Joll et al., 2018). The company Contiki belongs to the leisure and travel industry and
provides coach tour services tom its customers (Contiki, 2019). The main aim of the paper is to
focus on highlighting the market situation of the company and to highlight information about the
industry they compete in, how to paper the target market using the segmentation, target and
positioning approach. The paper also highlights the various customer behavior issues that affects
the buying behavior of the company.
Market/Consumer Situation
Contiki is a travel company that is engaged in carrying in carrying out the activities of
tour coaching operations throughout carious countries such as – new Zealand, Australia, japan
and others. The target market of this company are the peoples belonging to the age groups of 18-
35 years of age since its formation in the year 1962. It provide for these people the packages of
sightseeing, cultural place visits and other activities. The main goal of the company is to bring
together people so that through travelling and the company also allows individuals to travel
alone. According to an article that has discussed on why Australians love travelling, the various
reasons why Australian travel so much especially the people between the age group of the 18-
35years is given in the article. The main reasons are that they are financially strong enough.
Australia is one of the richest countries of the world which gibes the travellers the strength the to

4COMPANY ANALYSIS
travel throughout the world. The hourly working rate of other countries is different from
Australia that gives them the freedom to travel. These people are also attracted to the cultural
aspects of different countries.
Industry and market/product
The company Contiki belongs to the leisure and travel industry as it carries out the
operations of Travel Corporation. The company can get the opportunity in the tourism market in
case of any government policy that is taken in favor of the transportation industry, in case of any
change in the customer’s lifestyle the industry can get affected and it can act as an opportunity
for the company. The threats on this industry is that there can be technological and financial
challenges. Some of the major trends in the travelling and tourism industry that is affecting the
industry is that of- about 61% of the leisure travel is made online, personalization is another
major trend in the travel industry because people these days want more personalized and
customer services to meet their needs, artificial intelligence is another major change that is
taking place in the travel industry and others (Seo & Buchanan-Oliver, 2015). These trends are
creating a lot of the problems for the companies engaged in this field and they have to adapt to
these in order to become sustainable and to meet the needs of the people.
Target market
The target market for the company since 1982 is the age group of people between 18-35
years and the same is reflected in the mission statement. The mission of the company is to bring
together the young travellers for the purpose of travelling. In order to carry out its marketing
activities properly, the company applies STP techniques (Phillips, 2016). Segmentation refers to
dividing the whole markets into different segments such that the company can focus on a

5COMPANY ANALYSIS
particular target market. The company divides the market as young adults who come under the
age group of 18-35 years and there are older adults who are above 35years of age. The second
step after segmentation is that of targeting. The company is targeting the age group of- 18 to 35
years of age. The company targets these people through various strategies such as niche
marketing to meet the needs of these people. For positioning itself in the minds of the customers,
the company carries out various promotional activities such as advertisements and continuous
on-season and off-season offers to the customers. Positioning refers to the activity of creating the
company image in the mind of customers in such a way that whenever they decide about
travelling, the first company that comes to their minds is Contiki. The company needs to heavily
invest in advertisements such that the company can attract the attention of new customers and
retain the interest of the existing customers.
Consumer behavior issues
The consumer behavior issues is that the buying behavior of the customers are affected
by the social, cultural, economic and psychological factors (Szmigin & Piacentini, 2018). If the
customers can be motivated to go for travelling through various offers of the company and other
promotional activities. The customer’s decision of buying behavior is affected by the beliefs they
have towards travelling. The customers are affected by the social factors such as others decision
regarding things also affects their decisions (McConnell & Rydell, 2019). Keeping this point in
focus, the company has defined its objective of bringing people together through travelling and
the company also makes providing for people who want to travel alone through various packages
to suit their needs. Since travelling is liked by the Aussies it creates an environment where
people like travelling. Personal or demographic factors affect their decisions such as their income
level, lifestyle , their age and other factors.

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Conclusion and recommendations
From the above discussion, it can be concluded that the study focuses on the marketing
analysis of the Contiki Company that is a travel and tour company. The market or the customer
situation refers to information about the target customers such as what is the reason behind their
behavior and others. Industry analysis provides information about the present trends in that
industry of the company. In order to attract and retain the targeted customers, the company uses
the strategy of Segmentation, targeting and positioning. The study also highlights about the
consumer behavior issues that affects the buying behavior of the customers.

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Reference
Joll, C., McKenna, C., McNabb, R., & Shorey, J. (2018). Developments in labour market
analysis (Vol. 11). Routledge.
McConnell, A. R., & Rydell, R. J. (2019). Implications for Understanding Consumer
Behavior. Handbook of Research Methods in Consumer Psychology, 143.
Phillips, A. (2016). How books are positioned in the market: Reading the cover. In Judging a
Book by its Cover (pp. 41-52). Routledge.
Seo, Y., & Buchanan-Oliver, M. (2015). Luxury branding: the industry, trends, and future
conceptualisations. Asia Pacific Journal of Marketing and Logistics, 27(1), 82-98.
Szmigin, I., & Piacentini, M. (2018). Consumer behaviour. Oxford University Press.
We are Contiki | Our Mission and Core Values | Contiki. (2019). Retrieved from
https://www.contiki.com/ap/en/about/we-are-contiki