1 DIGITAL MARKETING Introduction The report throws light on the overall analysis of Cape Town which is situated at South Africa. Proper external analysis is required to be conducted which will be providing a brief overview on the environment of Cape Town for promoting it and creating a huge impact on the travelers. On the other hand, the micro-environment analysis is required to be conducted in which the market analysis, company analysis along with competitor analysis and analysis of the city are required to be identified which will be helpful in analyzing the competitive advantage. Lastly, the target customers are required to be identified which will be beneficial in analyzing the digital marketing aspects which will be beneficial for the success of the firm. External Environment Analysis Political Factors-The political aspects ofCape Town in South Africaare not stable and due to the instability of the entire economy; therefore, the respective problems often slow down the economic development along with progress. However, there is corruption in the business scenario and it affects the overall growth of the economy in a negative manner (Sajid, 2016). However, the winning the support along with confidence of general public along with investors in light of the different political challenges becomes one of the most aspects which will improve the political instability to a great extent. However, inAustralia the political environment is stable and the efficient and transparent legal framework will be beneficial for growth of the country (Ryan, 2016). Economic Factors-The economic aspects ofSouth Africaare stable as SA is 34th largest economy in the entire world in terms of nominal GDP. Moreover, the economy is weak and slow, however as of June 2018, the GDP of the country stands out at 371 billion-
2 DIGITAL MARKETING dollar USD (McDonald & Wilson, 2016). The travel and tourism industry of South Africa directly contributed towards ZAR 102 billion to South African GDP in 2012 and it helps in supporting 10.3% of the jobs in the entire country. It is similar in case ofAustraliawherein the economy is strong and diverse natural resources attract high level of foreign investment which will be the other positive aspect of the country (Lovelock & Patterson, 2015). Social Factors-The economic inequality is one of the major social issues which affect the overall growth ofSouth Africain numerous manners. Moreover, the digital trends in Cape Town has been strong as more than 99% of the individuals uses the smart phones and tablets and they are technologically advanced (Kotler et al., 2015). InAustralia,it is similar as most of the individuals are educated and there is utilization of the smartphones and tablets which has increased the internet subscribers in the market. Technological Factors-In the past two decades, there has been rapid adoption of the game changer technology wherein the digitization of the different products and services in SAis disrupting the travel and tourism sector, banking along with retail aspects along with theotherindustriesaswell.Therehasbeenhugeexpenditureontheresearchand development activities in the different sectors (Kotler & Armstrong, 2015). InAustralia,it is the similar situation wherein there is advancement in marketing technology in tourism sector which helps them in becoming more advanced in their operations. Environmental Factors-InSouth Africa, the environmental condition is stable and it is one of the diverse countries in the entire world. There are various places such as mountains and beaches which attracts the tourists in the market (Kauškale & Geipele, 2017). In Australia,about 5% of Australia is national parks which provides excellent places which inhabit them and it will be beneficial for the overall success of the country.
3 DIGITAL MARKETING Legal Factors-InSouth Africa,there is a mixture of mixed and hybrid legal system and the main concerns include the non-tariff barriers along with there are different export and import restrictions which can affect the overall growth of the country. On the other hand, in Australia,there is inclusion of Australian consumer law which will be beneficial for the success of the company (Kauškale & Geipele, 2017). Moreover, there is inclusion of data protection and privacy related laws which affects the overall growth of the tourism in Australian economy. Micro Environmental Analysis Market Analysis As per the market analysis, the major competitor of Cape Town city is Johannesburg as the population is less and the scenic beauty is appreciable in comparison to Cape town. The parks and gardens in Johannesburg are maintained by Johannesburg city parks and zoo (Johansson, 2017). Moreover, Johannesburg is one of the green cities and it is one of the young and sprawling cities and the availability of the public transportation is effective. Competitor Analysis The three major competitors of Cape Town along with the background of the countries are stated as follows: ParticularsCape TownJohannesburgDurbanPretoria Costof Living Thecostof living in Cape Townisway tooexpensive The cost of living isexpensive; however, it is less thanCapeTown InDurban,the cost of living is low and it will be beneficial for InPretoria,the cost of living is high and it costs $7.88
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4 DIGITAL MARKETING innatureand in comparison, totheother competitors whichcan affectthe tourism related activitiesfor themiddle- class individuals and a three course mealcostsR500 whichis9% cheaperthan Cape Town theyoung collegestudents to visit the area and spend time. The basic dinner costing is R338 whichisway cheaperthan Cape Town R104.11andit willbesuitable forthedifferent familymembers along with other members ConvenienceThemajor convenience or thestrong aspectis relatedtothe transportation asthereare variouspublic transport whichare cheapand cheerful The transportation isoneofthe majoraspects whichcanbe helpfulfor attractingmore tourists and it will becheaperin nature Moreover,the convenienceis themost appropriate aspect which has beenseenin caseofDurban isthatthe countryhas variousnumber ofpublic transportations which helps the tourists to travel In Pretoria, there areconvenience whichisrelated tothedifferent kindsofaspects suchas transportation andplentyof entertainment theatreswhich will be beneficial forattracting tourists
5 DIGITAL MARKETING at an affordable rate Metro Attractions Thedifferent kindsof attractionsare inclusive of the different islands as well asother markets whereinthe shoppingis providedwith themost appropriate preference Itisoneofthe largestcitiesin SA and it is the wealthiest province in South Africa.Itwas foundedongold rush and it is the financialand entertainment epicentreofthe country(Fill& Turnbull, 2016). Thenightlife alongwiththe weather, beachesalong withheady culturalmixto thefamous curries,Durban isscorching whichwillbe beneficialfor thetouriststo visittheplace and improve the experienceof thetourists (Fahy & Jobber, 2015). Thereare different international embassies, monuments alongwith museums,the respective city is sportsmadwith plenty entertainmentin the theatres along with proper night life(DeMooij, 2018). Competitive Advantage Johannesburg-The respective city is famous in comparison to the other competitors present in the market as it is famous for the catchy lyrics that embody the post-apartheid
6 DIGITAL MARKETING township culture of the city (Chaffey & Ellis-Chadwick, 2019). The city is known as the city of gold because it is the major beginnings as the gold mining town and it is known to be fondly to local people by the shortening the name to Joburg or now it is known as Jozi. Durban- It is located in the east coast of South Africa and Durban is famous for being the busiest port in the overall country. The city is famous for the different centres of tourism of tourism as because of the subtropical climate of the city along with the extensive beaches which are present in the city and it is not available in the other cities as well (Bowie et al., 2016). Pretoria-It is defined as the Jacaranda City as there are more than 50000 Jacaranda trees and it features number of cultural along with natural attractions along with significant old buildings as well as museums which will be the most competitive advantage of the country in comparison to the other competitor countries (Baker, 2016). Country Analysis Background Information of Cape Town Cape Town is one of the oldest cities in South Africa which is colloquially named the Mother City. It is the port city on the southwest coast of SA and it is one of the most important cities in South Africa. The major attractions of Cape Town include the mountains, the original Capetonians, colonial ping pong as well as art and design presented in the country are the different attractions of the country in comparison to the other competitors present in the other cities present in SA (Atwal & Williams, 2017). Moreover, the natural wonders of the country is inclusive of the flat topped mountains is the headline act and there are inclusion of natural landscapes with the extensive boundaries of the different parks.
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7 DIGITAL MARKETING Moreover, the people and culture of the country is diverse and it is the city of determined pioneers. Current Positioning of Cape Town Cape Town has positioned themselves as one of the most established cities in South Africa in comparison to the other competitors. Cape Town is one of the multicultural cities with technological advancements that make the tourism aspects more effective in nature (Armstrong et al., 2015). The South African tourism has been one of the most technologically advanced aspects wherein there is inclusion of the different social media channels to connect with the different tourists and it increased their presence throughout the entire world as well. Reputation or Brand Image of Cape Town Cape Townis one of the most technologically advanced countries that helped in promoting the ecotourism aspects among the different tourists present in the market. From the table below, it can be identified that brand image is strongest in comparison to the other competitor countries and it attracts various customers of different age groups (Armstrong et al., 2015). In the era of digital technological advancements, Cape Town is one such cities in South Africa which offers such wide range of technological advancements to the tourists which help them in understanding the tourist spots along with the packages of the tour to the respective city within a limited time. Foreign traveler arrivals (2000-2015) YearForeign arrivals (in thousands) Yea r Foreign Arrivals (in thousands) 20006 001 00020089 729 000
8 DIGITAL MARKETING 20015 908 000200910 098 000 20026 550 000201011 575 000 20036 640 000201112 496 000 20046 815 000201213 796 000 20057 518 000201315 155 000 20068 509 000201415 092 000 20079 208 000201515 052 000 Table 1: Tourist Attractions at Cape Town (Source:Armstrong et al., 2015) Target Marketing Persona for Cape Town Youth Demographic Age Range- 18-26Gender- FemaleName- Mary WinsletMarital Status- Single
9 DIGITAL MARKETING Job Type- Studying in College Geographic Place of Stay- AustraliaCulture and Lifestyle- Tech Savvy and she loves travelling and exploring new places with the help of identifying the different aspects about the same from social media websitesPsychographicHobbies- Travelling and exploring new destinationsLifestyle Characteristics- Simple and wants to explore the places in pocket friendly budgetProducts/Services-TheCapeTowntourismprovidesvariouspackagesforthe different groups of people. As Mary has the passion to travel the world, Cape Town offers the different kinds of pocket friendly options which is suitable Behavior BehaviorsRelevanttoProductsandServices-CapeTownistechnologically advanced and it helps in attracting the youth who likes to explore the nightlife of Cape TownDigital Behaviors-There is inclusion of online social media behaviors such as official website along with ticket booking facility availability are the two major factors Customers Supposed to do with marketing-The customers can spread word of mouth promotion which will be helpful in improving the overall effectiveness
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10 DIGITAL MARKETING Business Professional Demographic Age Range- 27-50 years and aboveGender- MaleName- Tim JonasMarital Status- MarriedJob Type- Working in Private Multi National Firm Geographic Place of Stay- AustraliaCulture and Lifestyle- Prefers to travel around the world and he travels for attending business meetings. He has low of knowledge on the digital content importancePsychographicHobbies- Surfing on digital marketing aspects and travelling to new placesLifestyle Characteristics- Moderate and spend huge money on travelling
11 DIGITAL MARKETING Products/Services- The different products as well as services inclusive of social media marketing techniques can help him in gaining knowledge on the places to visit as well as the different attractions of Cape Town Behavior Behaviors Relevant to Products and Services-The technologically advanced country with high internet usage can be helpful for attracting such business personnelDigital Behaviors-Through proper official website along with digital channels such as Twitter and mailing them personally Customers Supposed to do with marketing-There can be increase in the promotions among the customers and it can increase the popularity of the place as well Family Demographic Age Range- More than 35 years with kidsGender- Parents and kidsName- Mr. Williams and FamilyMarital Status- Married
12 DIGITAL MARKETING Job Type- Working in Multinational Corporation Geographic Place of Stay- AustraliaCulture and Lifestyle- Rich and Loves travelling with family Psychographic Hobbies- Loves to travel with family twice or thrice in a yearLifestyle Characteristics- Spend huge amount of money for the family travellingProducts/Services- The various products and services which are offered by the country Cape Town includes the social media marketing along with other digital media which helps them in improving the overall experience of the customers Behavior Behaviors Relevant to Products and Services-Technologically advanced wherein there is huge use of offline behaviors and the online aspects such as Facebook which helps them in improving the overall experienceDigital Behaviors-With the help of official website, it can be helpful in improving the overall scenario and making awareness about the attractions provided by them Customers Supposed to do with marketing-The customers will be supported through such online and offline channels of marketing that will be beneficial for the growth of the country Conclusion Therefore, from the above, it can be concluded that proper external and internal environmental analysis is essential in nature which is required to be performed by the
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13 DIGITAL MARKETING companies or countries in order to gain competitive advantage in the market. With the proper PESTEL analysis, it has been identified thatthe Cape Town is one of the most popular destinations in terms of the money spent by the customers as well as the attractions of the country in comparison to Australia which has been helpful in attracting more customers and gain competitive advantage in the market.
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