Impact of Marketing on Tourism Industry

This assignment examines the influence of various marketing strategies on the success of businesses within the tourism industry. Students are expected to delve into concepts such as brand personality, customer satisfaction, loyalty programs, and online service booking. The analysis should consider the role of perceived service quality, relationship quality, and the impact of financial leverage on profitability in tourism companies. Furthermore, students will need to evaluate the effectiveness of niche marketing research and knowledge management capabilities within the context of the tourism sector.

Running head: MARKETING AND MANAGEMENT
Marketing and management
Name of student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the market strategies being followed by G adventures in
the current market scenario. In addition, this report also discussed about the internal and external
factors being faced by them. There are number of positive and negative factors being identified.
This report stated the ideal segmentation, targeting and positioning strategies for G adventures.
This report concludes with number of recommendations along with recommending an ideal
marketing mix strategy.

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Table of Contents
Introduction......................................................................................................................................3
Company profile..........................................................................................................................3
Product/service offerings.............................................................................................................4
5C’s of G adventures.......................................................................................................................5
Determination of the internal environment..................................................................................5
Customer profile..........................................................................................................................6
Collaborators................................................................................................................................7
Competitors..................................................................................................................................7
Determination of the external environment.................................................................................9
Market research mechanism..........................................................................................................10
Determination of the potential target market.................................................................................11
Identification of the target market.................................................................................................11
Segmentation.............................................................................................................................11
Targeting....................................................................................................................................12
Positioning.................................................................................................................................12
Recommended marketing mix strategies.......................................................................................15
Product.......................................................................................................................................15
Price...........................................................................................................................................16
Place...........................................................................................................................................16

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Promotion..................................................................................................................................16
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................18

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Introduction
Marketing plays an important role in enhancing the business effectiveness and
performance of the organizations. Moreover, in the current business scenario, the role played by
the marketing is more important and holds more value for the business organizations. This is due
to the reason that in the current competitive business scenario, organizations should have
effective marketing strategies in order to stay ahead in the competition (Akaka, Vargo and Lusch
2013). However, it is also to be noted that prior to the initiation of marketing strategies, there are
number of factors that should be considered by the marketing organizations.
This report will discuss about the different marketing aspects for G adventures in
Australia. In addition, the external and internal environmental factors will be discussed for G
adventures. Based on this, the potential target market segment will be identified along with
determining the positioning statement for them. In accordance to the identified factors, this
report will state the ideal marketing mix strategies for them.
Company profile
G adventures are one of the leading tour service companies in Australian market.
Currently, they are holding a significant market share in the Australian market. They are founded
in 1990 with just having a handful of employees in the initial stage to having more than 2000
country presence around the world along with having more than 20 offices. They are mainly
known for their customized and small groups travel plan (Gadventures.com 2018). The mission
statement of G adventures states that they want to offer distinctive and unique tour experience
for the travelers and offers the maximum value for the customers. They also target to provide the
travelers with authentic experiences without being too professional.

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It is identified that G adventures is market oriented due to the fact that they design their
service offerings in accordance to the market trend and requirements. As per the information on
their official website of G adventures, they offer number of tour services to match with different
set of requirements of different set of travelers. Moreover, the mission of them of providing
customized services in small tour groups is also an element of marketing orientation of G
adventures. Moreover, they are marketing oriented organization due to the reason that their
major concentration is mainly on the distinctiveness of service quality rather than on the regions
and locations covered (Salyova et al. 2015). It denotes that G adventures are more oriented
towards the providing effective travel experience rather than offering more tour locations to the
customers. However, they still offer good number of locations to their customers.
Product/service offerings
G adventures offer tour services to the travelers around the world. As per the available
information, they are providing large diversity of exotic locations ranging from mountains to
seas and Arctic and Antarctic expeditions (Cabiddu, Lui and Piccoli 2013). In terms of the
service customization, they offer varieties of the resorts, cruises and motor coach.
Accommodations are having number of varieties to meet different requirements of the customers
and to target customers across different income levels.
The positive branding of G adventures is helping them to push their service offerings in
the market. This is due to the fact that the branding of G adventures in providing customized
travel experience along with the more than 20 years of the operation in this sector have helped
them to built positive brand image and recall in the market. This is helping them to effectively
penetrate in the market with their new offerings.

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5C’s of G adventures
Determination of the internal environment
Strengths  Positive brand image for being the world’s largest adventure travel
company (Severi and Ling 2013).
 High market penetration in the Australian market (Stummer et al.
2015).
 Offering large and diverse number of locations.
 Offering customized and authentic tour experience.
Weaknesses  They are not having significant global presence.
 Their service offerings do not cater to mainstream travelers, rather
they are having niche customer segment (Toften and Hammervoll
2013).
 They are not having brand value as some of their global competitors.
Opportunities  Market for Eco tourism is increasing (Chiu, Lee and Chen 2014).
 More customers are willing to have customized and authentic tour
experience.
 Entering in some foreign markets will further increase their business
potentiality.
Threats  Emergence of more competitors in the market.
 Initiation of new rule and regulations regarding visiting a few places.
 Economic recession will cause reduction in the potential target
customers (Cowling et al. 2015).

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Thus, from the above analysis, it can be concluded that G adventures are having number
of key resources. One of their key resources is positive brand image that helps them to cater to
the target market effectively. In addition, the human resources for G adventures can also be
termed as their key resources. This is due to the fact that human resources of G adventures help
in gaining competitive advantages by providing distinctive service to the customers including
providing guidance to the travelers during the tour (Shamaileh and Khanfar 2014). However, on
the other hand, there are number of negative factors also being identified. It is identified that
origination of the economic recession may cause reduction in the number of potential customers
due to the reason that economic recession will reduce the purchasing power of the customers to
spend money for tour activities.
Customer profile
Currently, G adventures are offering services to the travelers seeking adventure in their
tour activities. In accordance to that, G adventures provides majority of the adventurous
activities to their customers. Thus, the target market for G adventures is the younger generation
with having adventurous attributes. It is identified that the target customers for G adventures
expect that they will be provided authentic local experience of the destination region (Canhoto,
Clark and Fennemore 2013). In addition, the target customers for G adventures prefer more real
world experience rather than being cocooned in the higher end accommodation. These customers
are also inclined towards visiting more extreme locations. These customers will not get attracted
towards popular destinations rather they will get attracted for more offbeat locations.

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Collaborators
The major collaborators for G adventures are the resorts that help them in providing
effective accommodations to the travelers. G adventures are having collaboration with different
resorts and home stay services in different locations around the world. They are important for G
adventures due to the fact that quality of the accommodation will determine the level of
satisfaction for the travelers. Another key ally for them is the travel agents who help them in
managing the ticket booking mechanism for the travelers along with dealing with the new and
potential customers (Tseng 2014). The local communities can also be considered as their key ally
due to the fact that tours of G adventures always involve the local communities. This is having
dual advantage by empowering the local communities in involving them. These local
communities are involved in providing guidance to the tourist and offering authentic local
cuisines and experiences to the travelers.
Competitors
The major competitors for G adventures are intrepid, Intro travels, Cosmos, Ultimate
travel and Globus. All these players are operating in the same market and they are catering to the
same set of target customers. Thus, it can be concluded that the market scenario for G adventures
is much competitive.
Threat of new entrants  Threat of new entrants is high due to the fact that low
investment is required to start tourism business in small
scale (E. Dobbs 2014).
 Rules and regulations in relation to the domestic
tourism are less.

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 Thus, it will further increase the threat of new entrants.
Bargaining power of the buyers  Bargaining power of the buyers is moderate (Sheu and
Gao 2014).
 Number of options is available for the buyers.
 However, loyalty level of the buyers in this sector is
high (Segoro 2013).
 Brand value and image also matters for the buyers.
Bargaining power of the
suppliers
 Bargaining power of the suppliers is higher.
 Dependence on the suppliers is more for G adventures.
 Suppliers determine the level of customer satisfaction
(Fabbri and Klapper 2016).
Threat of substitute  Threat of substitute is high.
 Availability of number of players is increasing the
threat of substitute.
 Switching cost is also lower.
Competitive rivalry  Competitive rivalry is high.
 Rival organizations are initiating newer strategies to
stay ahead in the competition (Singal 2015).
 Different promotional events and offers are being
carried out by the players in the market.
Determination of the external environment

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Political factors  Political factors are diverse for G adventures due to the fact that
they cater to the international tourist also.
 Having different political scenario in different region may pose
challenge for G adventures to adhere with (Boddewyn 2015).
 Different countries are having different regulations for the
international tourist. Thus, it is difficult for G adventures to
maintain their operation in different regions.
 It is also important for G adventures to adhere to the legal
formalities in managing the international tourists.
Economical factors  Change in the global economy will have direct impact on the
business potential for G adventures.
 Cost of eco tourism is more and thus it will affect the business
of G adventures.
 Cost of operation will get increased in case of increase in the
cost of associated activities (Buscher and Davidov 2013). This
will increase the price and will reduce the customer share.
Social factors  Customers are becoming more aware about the eco tourism and
thus it will have positive impact on the business potentiality for
G adventures.
 However, social differences between the regions may pose
challenge in managing the group tours.
 There is always a risk of cultural clash in the case of
international tourism (Matzler et al. 2016).

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Technological factors  Technological development in ticket booking is changing the
existing scenario (MolChanova 2014).
 Different organizations are coming up with online portals to
manage their customers.
 Thus, it is important for G adventures to be always updated with
their technology in staying ahead in the competition.
Market research mechanism
G adventures are having effective market research mechanism in order to collect
information about their 5Cs. In order to collect information about the need and want of the
customers, G adventures initiate different activities including social media interactions. This
helps them to initiate direct communication with the customers and determining their need and
wants. Moreover, online market research is initiated in order to gain the practical insights of the
needs and wants of the customers (Cechanowicz et al. 2013). Online research is being done
through posting the questionnaires in the public portals. On the other hand, competitive analysis
is also being done by G adventures in order to gain information about the competitors also.
Initiation of the competitor analysis by comparing the performance of the rival organizations
with that of them helps them in identifying the nearest and close competitors.
Market data regarding the tourism industry is being used by G adventures in gaining
information about the market trend. Moreover, they periodically conduct five forces and PEST
analysis in order to have the idea about the change in the current market scenario. Accordingly,
they bring change to their strategies. In terms of determining the role of the collaborators, G

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adventures initiate supplier management mechanism in order to maintain effective relationship
with the partners in their business operation.
Determination of the potential target market
In accordance to the internal and external factors identified for G adventures, there ae
number of aspects identifies. These aspects will help in stating the most potential and effective
target market for G adventures. In order to identify the target market for G adventures,
segmentation, targeting and positioning model will be the used.
Identification of the target market
Segmentation
According to the segmentation, targeting and positioning model, the first step is to
identify the target segment for G adventures. In terms of the geographical segmentation, the
target segment for G adventures will be the travelers from the Australian market seeking for
domestic or international destinations. Moreover, it is also recommended that geographical target
segment for G adventures can also be the neighboring countries of Australia such as New
Zealand and South East Asian countries (Cross, Belich and Rudelius 2015). In terms of the
demographical segmentation, the target segment for G adventures will be the people aged above
45 years up to 65 years of age. Currently the target customer segment for G adventures is the
younger segment. However, it is recommended that customers above the age of 45 should also
be targeted due to the fact that they are having more real income in the form of savings.
Moreover, in the current time, older age people are opting for international tourism in post
retirement stage. Thus, this segment should be targeted.

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Targeting
The next step is targeting the customer segment. It is recommended that G adventures
should launch new service offerings to cater to the new target segment. They should have more
classic type of tour plans, which will suit with the requirement of the older aged people.
Moreover, the location should also be selected that will be convenient for the older aged
travelers. Added facilities such tour guidance, travel insurance and medical facilities can be
offered in order to create a holistic experience for the new target customer segment.
Value proposition for the target market will include customized service, covering all the
associated need and requirement of the customers in the tour and guiding and assisting them in
touring (Osterwalder et al. 2014). This will help them to enhance the value for the customers.
Moreover, the travelers will have the option to experience the local cuisines and home stay. This
will enable them to have the authentic experience of the tourist destination.
Positioning
Currently, the services of G adventures are positioned towards more premium side. It is
recommended that G adventures should position themselves for the upper middle class segments.
This is due to the reason that targeting the upper middle class segment will ensure that market
exposure will be more. In addition, services of G adventures should not be limited in the niche
market; rather they should target more mainstream travelers in order to enhance the market share
and revenue. The services will be offered in more diverse manner and not only providing eco
tourism and adventurous tours. Thus, the diversity for the service will get increased that will help
in targeting more diverse section of the customers.

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High price level
Low price level
High customer valueLower customer value
G-adventures
Intrepid
Globus
Cosmos

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The above positing map shows that G adventures will be positioned as a premium
offering with having more value compared to their competitors. However, the price level will not
be as higher as Intrepid. Thus, the recommended positioning statement will ensure that G
adventures will have an untapped market.
Positioning statement of them will be “experience life, experience world”. This statement
will convey the experience that will be gained by the travelers in touring with G adventures.
Moreover, it will also help to convey enhanced values for the customers.
Recommended marketing mix strategies
Product
G adventures will come up with new service for targeting the newly identified target
segments. This service will be more mainstreamed compared to their existing service offerings.
According to the ansoff matrix, product development is one of the major strategies for
developing business potentiality. Thus, with the initiation of the new service in the market, G
adventures will be more equipped to cater to their existing market and it will also help in
increasing their market share. The new service will be targeted in the popular tourist destinations
that will be acceptable to larger section of the target customers. Moreover, this service will be
provided by offering standard hotel accommodation and other standardized facilities compared
to the distinctive facilities provided with their current service offerings.

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Price
It is recommended G adventures should have both premium and market penetration
pricing strategy. This is due to the reason that the existing service of G adventures will have
premium pricing while the proposed service offering will be priced for market penetration.
Initiation of the two pricing strategies will ensure that different customers across price level can
get targeted. Having the premium pricing will ensure that the exclusivity of their existing service
offerings. On the other hand, initiation of the market penetration pricing strategy will help to
cater to more number of customers. Thus, G adventures will be able to gain positive market share
in the initial stage of launching the new service.
Place
It is recommended that G adventures should initiate exclusive distribution strategy.
However it is also being recommended that they should have extensive placement of their
branches or outlets. Initiation of the exclusive distribution strategy will help in providing holistic
service to the customers. Moreover, having the market presence in more regions will ensure that
penetration in the market will be more. It is also recommend Omni channel distribution should
be in place. This will add convenience to the potential customers by providing the service
through online mediums. The core objective of distribution strategy will be to ensure the
maximum penetration of the market.
Promotion
It is recommended that G adventures should also initiate Omni channel policy in their
promotional strategy. This is due to the reason that initiation of the Omni channel strategy will
help in promoting the services through both online and offline mediums. Thus, the market

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exposure will be more. On the other hand, social media marketing should be initiated in order to
promote two ways communication with the customers. Seasonal discounts can also be provided
to ensure the customer traffic is maintained.
Conclusion
Thus, it can be concluded that G adventures are effectively operating in the current
market. However, this report identified number of internal and external factors that will pose
challenge to them. In accordance to these factors, this report stated an ideal marketing strategy
that includes the new target segment, targeting strategies and how they should be positioned in
the market. In addition, this report also recommends an ideal and effective marketing mix
strategy for G adventures. This will help them to operate in the market effectively. It is also
concluded that effective implementation of the recommended marketing mix strategy will help G
adventures to enhance their market share in their existing market.

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