Strategic Marketing Management for Tourism Australia

This report analyzes the functioning of Tourism Australia through SWOT, PESTLE, BCG Matrix, Porter’s Generic Strategy Model, and Ansoff’s Growth Matrix model. It aims to devise a new marketing strategy for the brand to stretch its business and go international for increasing its market share and growth.

Running Head: STRATEGIC MARKETING MANAGEMENT
STRATEGIC MARKETING MANAGEMENT
Name of the Student
Name of the University
Author’s Name

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Executive Summary:
Tourism Australia is one have the well-known names present in the tourism industry of Australia
constructively adding on to the GDP of the country. Rich in natural resource this land attracts a
lot of tourist throughout the year. Thus the report intends to analyze the complete functioning of
Tourism Australia through a series of analytical framework and strategic models which include
SWOT Analysis followed by PESTLE Analysis, then employing the BCG Matrix Model,
Porter’s Generic Strategy Model as well as Ansoff’s Growth Matrix model. The main aim of this
paper is to strategies the core essentials of devising a new marketing strategy for a well
established brand like Tourism Australia which intends to stretch its business and go
international for increasing its market share and growth.

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Table of Contents
1. Introduction:.............................................................................................................................3
1.1Opportunities Identified:.........................................................................................................4
2. DISCUSSION..............................................................................................................................6
2.1Marketing Strategy.................................................................................................................6
a) Identifying Competitive Advantages:......................................................................................6
b)Marketing Objectives:..............................................................................................................9
C) Segmentation, Target Market(s) and Positioning:................................................................12
D) Appropriate Marketing Mix:...........................................................................................15
E) Implementation and Control Issues:.....................................................................................16
Conclusion:....................................................................................................................................19
References:....................................................................................................................................20

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1. Introduction:
Tourism Australia (TA) is a well-known name in the sphere of tourism business industry
operating mainly in the Australian region. The tourism industry of Australia has undoubtedly
witnessed a steady growth and has successfully emerged as the second-fastest growing industry
unit (Ruhanen, Mclennan & Moyle, 2013). Tourism Australia being a government agency is
solely responsible attracting greater number of tourist to their land with attractive and exclusive
marketing strategies that would particularly highlight the exclusivity that the nation can offer to
its tourist group, successfully identifying the present and future challenges that can come in its
smooth functioning and altogether ensure a steady rise of the tourism industry in Australia.
Tourism Australia aims in building up the sustainable tourism industry of Australia by
implicating improvements in their internal as well as external organizational functions. The main
aim of this report is to device a strategic marketing plan of a year’s duration for the organization
taking into considerations the findings from the SWOT and PESTLE Analysis that has already
been conducted in the previous assignment. The marketing plan will specifically highlight on the
key opportunities that Tourism Australia can avail and build its customer base along with
analyzing the existing market, identifying its target prospects and devising suitable marketing
operations for better addressing the needs of the present target market. The various media
vehicles that can be incorporated in marketing the organization’s objective will also be
considered in the report along with identifying the key risk control measure that needs to be
adopted by the firm to attain stability in its operation.

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1.1Opportunities Identified:
The business climate of the tourism industry in Australia is very optimistic. Thus Tourism
Australia in lieu of designing its new marketing plan for tenure of one year has identified these
basic prospective on which it can develop upon:
 New geographic areas to expand the business
 Strategic alliance with key competitors
 Identifying appropriate promotional vehicles
 Reducing cost of operations
 Controlling climate change issues to boost tourism
The strategic business unit (SBU) that the report will focus on to develop the firms
marketing tactics and strengthen its market position are:
 Tourism Product renewal strategy: this might consist of offering
complementary services to seem attractive that the immediate competitors of the
firm. For instance a free health checkup for their loyal customers or a
complementary buffet lunch
 The diversification strategy: this comprises of developing innovative strategies
to get hold of the new market share
 The distribution strategy: this strategy addresses the crucial ways of how to
company can get the right kind of market exposure. It can be ensure either
through collaborating with governmental agencies or with varied other tourism
management companies

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 Communication Strategy: this would deal with analyzing how the firm will
communicate its offers and strategies to its internal as well as to its external public
depending upon the target market structure and the audience the firm wants to
communicate to.
The Strategic Business Unit can be analyzed using the BCG Matrix:
The BCG Matrix is created by Boston Consulting Group which provides a
framework to evaluate and measure the strategic position of the brand and
measure its future potential (Mohajan, 2017). It intends to classify business
portfolio into four main categories either based on industry attractiveness which
indicates the growth rate of that industry as well as helps in analyzing the
competitive position in the market.
The four quadrants into which firms brands are classified:
Source: (Rudnicki & Vagner, 2014)

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Tourism Australia being a significant name in the tourism industry of Australia belongs
to the star quadrants as the star operates in high growth industries and maintain high market
share. Stars are regarded as both cash generators as well as cash users. As Tourism Australia
intends to build on its strategies and provide significant resourceful investment in the above
mentioned strategic business unit sector it believed to belong to this quadrant of the matrix
(Genoveva & Siam, 2017). It would require investment of both capital and noncapital investment
to turn the star quadrant into a cash cow quadrant.
As already mentioned Tourism Australia enjoys high brand equity among its
contemporaries in the tourism market, the resource based view (RBV) of this particular firm
suggests that the can further exploit their credibility standing to extend market operation in the
Asian Markets which show high growth potentials and bigger opportunities. Another strong asset
for this particular company is its transparency of business operation and continuous effort on
building a sound communication base with its stake holders to refrain from creating any duplicity
of business operations and gain considerable support from the Governmental authorities as well.
2. DISCUSSION
2.1Marketing Strategy
a) Identifying Competitive Advantages:
Tourism Australia has undertaken several research and analysis to better understand what
exactly influences the consumer decision of considering holiday in Australia as well as how

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Tourism Australia can have an edge over its key competitors that is Tourism New Zealand and
Brand USA (About - Tourism New Zealand, n.d.). Based on the strengths weakness
opportunities and threats that the company witnesses or can witness in the near future the
marketing plan must ensure certain key areas of operation. This can be analyzed using both
Porter’s Generic Strategy Model as well as Ansoff’s Growth Matrix model (Khalili, et al. 2013).
While analyzing market strategy it is impossible to overlook the crucial market
identification and analyzing strategies mentioned in the Porter’s and Ansoff’s approach. Michael
Porter (1985) has determined three major type of generic business strategies which include: cost
leadership, differentiation and focus. The focus strategy on the other hand can be
differentiation focus and cost focus (Sumpio, 2013). Tourism Australia has significantly
addressed that the issue of high expense which is the potential reason for the middle class
population to not choose Australia has their spot of vacation. Thus the main focus of cost
leadership strategy to help implement these cost reduction steps to boost tourism in Australia.
The differential strategy will help Tourism Australia gain a competitive edge over its immediate
competitors, the focus strategy will help Tourism Australia chose a particular market segment or
the niche market segment as its focal point of business operation.

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Implementing Porter’s generic strategies by Tourism Australia:
Strategy Implementation
Cost Leadership  Assistance from government availing
subsidies on transportation cost for tourist
 Reduction in visa application fees

Differentiation  Extremely safe environment for the tourists
 Extremely attractive natural and man-made
tourist spots
 Exclusive cuisines to satiate the taste buds of
the visitors
Focus  Middle upper class section of people
 Main focus on the new age generation that is
generation Z
 Targeting the Asian countries for increasing
the tourist count ( China, South Korea, Japan,
South East Asia countries)

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Figure 1: Source- As created by the Author
Ansoff’s Growth Matrix model:
Anoff’s Growth Matrix Model is a very essential as well as a strategic planning tool applied by
the marketers to assess the growth opportunities and potentials of the new market where the
business farm intends to start its business (Aziri & Nedelea, 2013). It helps the business firm to
understand core potentials that the market holds for the nature of the business the company does
by analyzing the product segment, the customer segment, and considering varied product
diversification and implementation strategies.
Figure 2: Source: (Verhoeven & Johnson, 2017)

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Anoff’s growth matrix model will help Tourism Australia analyze the four basic kinds of
marketing strategies that can be implemented by the organization in order to gain growth
opportunities: market penetration, product development, market development and
diversification (Komppula, 2013). Market penetration strategy of Tourism Australia will
particularly highlight on the issues of collaborating and partnering with varied other firms and
tourism sponsoring events to gain more exposure in the existing market with the existing
product, whereas product development strategy would imply an improvement in the existing
product/ service like cost reduction, better environmental control, improvement in the service of
hotels and food availability, collaborating with the government to control risk measures
(Corbisiero, 2018) . Market development strategy implies that Tourism Australia strategies to
extend it tourism facility to the Asian countries as well as go international in extending their
tourism facility (Amelung & Nicholls, 2014) and the diversification strategy which is counted as
one of the most complex and difficult strategy to implement will focus on how Tourism
Australia can extend and branch out its business in other related industries like extending
exclusive hotel services or promoting indigenous trade practices to help in build the local
economy.
b)Marketing Objectives:
The core objective of the new marketing strategy will focus on gaining more exposure in
the new target market, help in developing innovative and attractive promotional strategy which is
more convenient to the target population and ensure sustainable growth of tourism industry in
Australia in compliance with protecting and improving the environment that is ensuring

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sustainable development (Nassani, et al. 2018). Therefore the core marketing objective will
include:
 Growing demand from Asian Countries: As the population of these countries are seen
to spend handsome amount on vacations, the new marketing strategy will significant
focus on building its market in these locations
 Implementing digital technology in promoting its marketing strategies- As the
primary target market comprises of the new generation who are very well exposed to the
new media or to be more precise the internet, promoting using these vehicles of
communication using social media platforms like Facebook or Instagram, organizing
interactive events which help to better address this population
 Taking significant environment control measures to boost tourism- As it has been
observed by Tourism Australia that significant climate change is affecting he tourist
count in Australia as it is deploring the natural resources like Coral Reefs and the total
eco system of the country which are in turn significant places of tourist attraction, the
marketing strategies intend to promote tourism in accordance with sustainable lines of
development and more necessarily promote eco-tourism in Australia (Corbisiero, 2018).
Analyzing Marketing Objective in compliance with the SMART Goal Setting Criteria:
Setting specific goals is part of every business operation which helps to provide the
business firm the right direction, the right amount of motivation as well as build a better focus in
achieving the set targets .S.M.A.R.T Goal technique is one such goal setting, analyzing and

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measuring technique which helps a business house analyze the 5 w’s of the business operation
which are: WHO, WHAT, WHERE, WHEN AND WHY (Van, et al. 2016)
The SMART Goal technique can be implemented to better analyze the above mentioned
marketing objectives of Tourism Australia:
SPECIFIC(s) - Tourism Australia aims to increase its tourist outreach and significantly
contribute in the tourism sector of the country adding on to the overall GDP of the nation
MEASURABLE (M) - This section of analysis will emphasize on how Tourism Australia will
ensure that the objective set and the goal intended is achieved. Either through a post market
analysis once the market strategies have been implemented or assessing the profit figures of the
tourism firm.
ACHIEVABLE (A): This section comprises of identifying the actions which are exactly
required to achieve the objective. The actions include developing a strategic communication
plan, identifying the specific geographic areas where the company can expand itself and
understanding the present environmental crisis to create sustainable development plans.
REALISTIC (R): This aspect analyses how much realistic or possible the definite objectives are
which Tourism Australia intends to achieve it aligns the goals with the objective to understand
the relevance of both in the present context.
TIMELINE (T) - Specific goals can only be achieved if there is a specific deadline prescribed
for the same. Thus for Tourism Australia the duration which has been identified for bringing in

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the necessary changes by applying the above said objective is 12 months that is for a year’s
duration.
C) Segmentation, Target Market(s) and Positioning:
Market segmentation is the process of segregating the market into different classes based
on certain parameter that help companies’ identity the profitable segments for selling their
product or services (Dibb & Simkin, 2013)
Segment bases:
 Demographic Segmentation:
A) Age group- the youth sector (15-29 years old)
B) Income- Upper middle class
C) Gender- Both the genders are equally targeted
 Geographic Segmentation- the Asian countries which include China, South Korea, Japan,
South East Asia countries are the market segment that Tourism Australia intends t o
expand
 Psychographic Segmentation- this market segmentation criteria not only helps Tourism
Australia find the right audience in the market but analyze their life style to understand
and build tourism not only for vacation purpose but also for business roles as well (Muala
& Qurneh, 2012).
Target Market Profile strategy:
Based on the above market segmentation, the target market is very well outlined
and evident so an appropriate target market strategy for Tourism Australia would be

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Focus or concentrated targeting approach (Mariani, et al. 2014). In spite of several
segments being identified by a company, it might not be profitable to serve them all.
Therefore Tourism Australia has identified the core segments for a successful
implementation of its target market strategy
Positioning Strategy:
Tourism Australia has identified its two immediate competitors in the market that
is: Brand USA and Tourism New Zealand as all the three firm directly or indirectly
considers China to be their most strong customer base (2018 annual report, 2018).
However what distinguishes Tourism Australia from other two firm is strong and sound
image in the tourism market through its varied marketing and promotional campaigns
like: “There’s nothing like Australia umbrella campaign and supporting campaigns
including Dundee; Aquatic and Coastal; Restaurant Australia; and Aussie News Today”
(Ongan, 2018).

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POSITION MAP OF TOURISM AUSTRALIA
BRAND USA
TOURISM NEW ZEALAND
TOURISM AUSTRALIA
Figure 3 Source- As created by the Author
Tourism Australia holds the market position where it has high uniqueness value as well
as very expensive. Whereas on the other hands its immediate competitors that is Tourism New
Zealand has same quotient of uniqueness but is comparatively more affordable in its. Brand USA
operates as a complete non-profit organization (About - Tourism New Zealand. n.d) and is
Affordable
High uniqueness Low Uniqueness
Expensive

16STRATEGIC MARKETING MANAGEMENT
responsible for improving and boosting the country’s economy through the growth of global
travel market.
D) Appropriate Marketing Mix:
Tourism Australia being a service provider in the tourism industry aligns it marketing
objective with its 7 p’s of marketing mix which are product, price, place, promotion, process,
people, and physical evidence (Huang & Sarigöllü, 2014). Thus the marketing mix strategy will
focus on:
 Standalone and partnership campaigns collaborating with state and territory tourism
organizations, airlines and varied other government agencies to reduce tourism costs to
help control the price variant and gain maximum market share in the business sector.
 Building on the product which is in this case the service extended by the tourism industry
which might include measures like affordable travel plans, clubbing on complementary
service like medical assistance for children and the aged while travelling
 Integrated campaigns with state territory tourism and best restaurants for the supply of
exotic wine and dishes. This would ensure proper and apt promotional measures.
 Develop innovative social media communication strategy that would ensure the proper
communication of their innovative market strategies to the target audience
 Building on ecotourism base of Australia and incorporate climate control measure with
the help of governmental assistance (Riaz & Tanveer).

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E) Implementation and Control Issues:
Gantt chart:
Gantt Chart is basically a visual representation of the project plan that is been undertaken
with the help of a horizontal bar chart which contains specific elements like the tasks that are to
be achieved a specific dateline or duration assigned for the fulfillment of each goal. This is a
very systematic and strategic approach observed by various firms which intend to employee any
new strategy in its application and then measure its actual success (Gantt, 2015).
The Gantt chart of Tourism Australia takes into account the strategic planning of how the
marketing strategy will be implemented as well as evaluated to understand the overall
effectiveness of the actions undertaken

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Figure 4.
(Source: As
created by the
Author)
ACTIONS Jan-
Marc
h
April
-June
July-
Septembe
r
October-
December
Market Research:
Analyzing the market
trends, competitors
strategy analysis,
expectation of the
potential market
Market segmentation:
Identifying the target
market, classifying it
for better market
penetration, and
identifying what
position the brand
holds in respective to
its competitors in the
target market.
Formulating Target
market strategies:
Strategizing and
designing appropriate
market strategies that
would best

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Analysis of the Gantt chart:
Once the target market is identified and appropriate strategic marketing plan has been
development then comes the implementation part. Implementing the strategy and measuring its
effectiveness involves identifying certain key performance indicators or certain set parameters
to identify the extent of success of these strategies, which includes parameters like:
 How effective the strategy is pertaining to the current market scenario?
 What exposure or added advantage thus it hold for the product or the service?
 Does it cater to the needs of the target market?
 What future potentials does the strategy hold in relation to the business firm’s growth and
development?
Once these key performance indicators are monitored, the results are clear regarding the
success or failure of the marketing strategy implemented. However as the business environment
seems to be very dynamic and for a company like Tourism Australia which has already
established itself as a brand in its local market but intends to go international it needs to observe
certain control measures which pertain to international continental boundaries, laws regarding
the country borders and observe certain precautions regarding the distinct change of culture
between the Western and Asian countries, the change of language and the overall lifestyle to
make it relevant for the customers of those countries.
Conclusion:
The strategic marketing analysis report of Tourism Australia successfully identifies the
key areas that the business firm needs to focus on to identify the potential strengths, weakness,

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opportunities and threats surrounding the tourism industry. This is done by employing varied
qualitative and quantitative analytical tools like the SWOT Analysis followed by PESTLE
Analysis, then employing the BCG Matrix Model, Porter’s Generic Strategy Model as well as
Ansoff’s Growth Matrix model. Devising new marketing strategy requires thorough
understanding of the present market condition, the potential that the new market holds for the
future as well as analyzing the potential risks and threats that might come in the way of
implementing these strategies. Finally a Gantt Chart has been used to give a more realistic
approach to the strategy implementation and analysis phase for the firm to understand its real
potentials and the lines of improvement.

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2018 annual report. (2018). Retrieved from Torism.australia.com:
http://www.tourism.australia.com/en/about/our-organisation/our-performance-and-
reporting.html
About - Tourism Australia . (n.d.). Retrieved from www.tourism.australia.com:
http://www.tourism.australia.com/en/about/our-organisation.html
About - Tourism New Zealand. (n.d.). Retrieved from Tourismnewzealand.com:
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