Business Report: Airline Ticket Value Proposition and Marketing Mix

This business report examines airline tickets, specifically focusing on travel to Nepal. It analyzes the value proposition and marketing mix strategies of Everest View Tours and Travels and its competitor, Cheapflights. The report integrates consumer behavior concepts to provide insights into customer preferences and offers a comparative analysis of the marketing strategies employed by both companies, with a particular emphasis on pricing and promotion. The findings highlight the justification for shifts in consumer preference and offers recommendations for enhancing product promotion and pricing to improve the value proposition for airline tickets. The report also discusses the target consumer profile, consumer behavior theories, and concepts of customer value and value proposition to understand the factors influencing purchasing decisions in the travel industry. The analysis utilizes the 7Ps of the marketing mix to provide a comprehensive understanding of the marketing strategies of both companies.

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EXECUTIVE SUMMARY
Airline tickets are an essential product offered in Travel and Tours Companies to help in
facilitating travel of their clients. The nominated product is Airline Ticket to Nepal offered by
Everest View Tours and Travels. The paper outlines travel tickets offered in Everest View Tours
and Travels and Cheapflights Company then integrates consumer behavior concepts to provide
insights necessary in developing value proposition and customer value. Marketing mix strategies
used by both companies help in justifying change in preference for Cheapflights Airline tickets
as opposed to Everest View Tours and Travel. Major findings from the marketing mix strategies
include pricing and promotion of the products. Recommendations from the findings sought to
give solution to improve product promotion and pricing to ensure value proposition.

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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS................................................................................................................3
INTRODUCTION...........................................................................................................................4
Background Information..............................................................................................................4
Target Consumer.............................................................................................................................5
Consumer Behavior.........................................................................................................................5
Concepts of Customer Value and Value Proportion........................................................................7
Analysis of Airline Ticket to Nepal Value Proposition and Marketing Mix Strategy of Everest
View Travel and Tours compared to Cheapflights Travel..............................................................8
Analysis of Airline Ticket to Nepal Value Proposition...............................................................8
Marketing mix strategy of Everest View Travel and Tours and Cheapflights Travel.................9
Justification for Change in Consumer Preference.........................................................................14
References......................................................................................................................................15

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INTRODUCTION
Background Information
Travel tickets are an essential product in the travel and tours industry. They are a
requirement in traveling to various destinations whether by flight, road or cruises. Most Travel
and tour companies have embarked on providing affordable services through fair prices in travel
tickets to ensure more clients consume their services and products. One of the companies that
have capitalized on attracting customers through affordable packages and travel tickets is Everest
View Travel and Tours Company.
Everest View Travel and Tours Company is a tour and travel company located in
Australia. Head offices are in Melbourne city with other branches in the country located in
Sydney and Perth City. It's a company that deals with tour packages, holidays, cheap and
affordable flights, cruises, book-now-pay later facilities, travel visa services and many more
services. Travel services are made easier through use of technology in service delivery and
extensive research on different destinations with an aim of providing enjoyable and memorable
moments from the experience. One of its strengths is in the provision of unique and wide range
of travel experiences to its customers which comprises affordable ticket services to customers
traveling around the world. The company offers travel services to other countries which include
India, Nepal, Pakistan, Bhutan, Bangladesh and Myanmar (Everestview Travels, 2018).
Another company offering same services as Everest View Travel and Tours Company is
Cheapflight Travel and Tours located in Australia too. It is the major competitor in offering
travel tickets to enable travel and tours of its clientele. Cheapflights offers holiday and tours
services across various destinations worldwide at competitive prices, therefore, need for better
marketing strategies to ensure profitability is achieved (Cheapflights, 2018). The purpose of the

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report is to incorporate value proposition and marketing mix strategies to ensure that travel
tickets from Cheapflights Travel and Tours Company are preferred by consumers to travel
tickets by Everest View Tours and Travel. The report format will be argumentative in order to
justify consumers' change in preference for Everest' products to Cheapflight's travel tickets.
Target Consumer
Target consumer for Cheapflights travel agencies is a 25-year-old man. The consumer is
a single man who hails from a family of five members that consists of his parents and two elder
brothers. One of the brothers lives with the consumer in Australia while the other brother lives
overseas together with the parents. There are cousins and relatives living overseas and do live in
a nearby area to the brother. The consumer is a graphic designer earning AU$45,670 while still
a masters student. In terms of the generational cohort, the consumer lies at Generation Y cohort
of consumers whose value segment is Young Optimism, Look at Me.
Consumer Behavior
Consumer behavior is the study of factors that influence decisions on purchasing products
(Iresearch, 2018). It entails consumers' psychological view, environmental influence, knowledge
of the product and marketing strategies used by brands to ensure consumers purchase their
product (Perner, 2018). Basically, consumer behavior is influenced by emotions and reasoning.
The key insights influencing consumer behavior are psychological and demographics.
Marketers need to study the insights in order to make decisions on developing strategies to
market their products (Consumer Research, 2016). To ensure proper insights are achieved,
marketers need to use consumer theories to better understand behaviors manifested by
consumers, therefore, forming a basis for designing marketing strategies. Consumer theories that

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can be used include Marshallian Economics, Motivation- need theory and Theory of Reasoned
Action (Ohio University, 2016).
Marshallian Economics was developed by Alfred Marshall and explained that consumers
purchase services and goods to obtain self-satisfaction. Purchasing of a product depends on
whether a consumer can afford it. The hypothesis of the theory to marketers show that when a
product is sold at a lower price, consumers tend to buy more (Bernstein, 2016). Cheapflights
Travels can use the theory in developing marketing strategies that ensure low prices on their
travel tickets as compared to other competing agencies.
Theory of Reasoned Action was developed by Icek Ajzen and Martin Fishbein in the
1960s. They explained that consumers make decisions based on the existing mindset and attitude
towards a certain product. Attitude to products can be based on whether the consumer had used
the product before or feedback obtained from, therefore, forming an attitude towards the product
(Ohio University, 2016). Marketers in Cheapflights Travels may use this theory in associating
themselves with a positive result from the services offered. An example is offering enjoyable and
memorable travel services to consumers such that they associate the company with quality
services.
Motivation- need theory was outlined by Abraham Maslow on the hierarchical need of
man. The theory explains people fulfill their basic needs on a five priority system which can be
well utilized by marketers. Marketers use the theory to design advertisements in a way that a
need is created to consumers. Successful marketers use the method to change psychological
perspectives that make consumers feel a need to possess the product (Ohio University, 2016).
Cheapflights Travels can package a message to consumers that demonstrate need to travel with

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them especially during holiday seasons. Messages encouraging consumers to travel and view
exciting sceneries can instill the need for a holiday to the consumers.
Concepts of Customer Value and Value Proportion
Customer value is defined as the satisfaction a customer gets after purchasing a product
that coincides with their value for money. Satisfaction results to customers purchasing the
product again, sign-up, a vote or a revisit to the outlet (Mansfield, 2014). Consumers define
value differently, therefore, marketers need to understand customer value to design products that
offer satisfaction to their target customers. Marketers may use consumer values to determine
target customers. Market research is carried on the consumers to evaluate customer tastes and
preferences that help inform the decision on which group marketers target in their marketing
strategies (Mikkola, Mahlamäki & Uusitalo, nd.). The problem needs are identified through
customer value evaluation. Customers seek different values which can be benefits, efforts, price
or risks, therefore, identification of specific value being sought by consumers helps in marketing
the right products (Hassan, 2012).
Value proposition is the promise given to customers after purchasing products. It is the
factor that attracts the consumers to the products. The value proposition should meet the
following criteria; the first is the benefits to be received from the product, another is the ability
for the product to fix consumers' problems and how different the product is from the competitors
(Hassan, 2012). Through the delivery of value proportion, customers gain trust in the product
and purchase the products consistently. In most cases, the aim of implementing value proportion
is not directed to the products but the welfare of consumers after purchasing. Implementation of
the value chain by marketers in the long run result to retention of customers thus increasing sales
(Mullin, 2018).

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Analysis of Airline Ticket to Nepal Value Proposition and Marketing Mix Strategy of
Everest View Travel and Tours compared to Cheapflights Travel
Analysis of Airline Ticket to Nepal Value Proposition
Everest View Travel and Tours Company offers an airline ticket to Nepal that
attracts most consumers to the destination. Value proposition in the tickets has the ability to
provide benefits to clients traveling to Nepal. There are nine destinations in Nepal that one can
purchase an airline ticket. Pokhara and Kathmandu Tour is a package to visit Phewa Lake where
one runs along its calm shores and watch over the tranquil view of boats painted in different
color floats atop. The holiday provides a relaxing atmosphere for clients who require a break
from work and other daily activities (Everestview Travels, 2018).
Cheapflights Travels offer Flight ticket to Nepal to many customers who are attracted to
their services and ways of doing things. The company has staff whose main duty is providing
information to clients and advising on various travel destinations in Nepal. Local knowledge and
global networks the company has formed over time ensure that customers served by the company
get the best holiday and services around. Packages offered by travel tickets cater for many
services that include a tour guide in case one needs guidance and accommodation. Many
customers are attracted to their services as they are unique and quality services.
Another value proposition one enjoys with an airline ticket to Nepal is Himalayan
Hiking. The tour entails hiking to mountain tops mostly for the sports lovers. It's a very popular
tourist activity in the area as the experience provides a chance to discover the various flora and
fauna varieties in the mountains. Incredible viewpoints are also observed as one climbs the small
mountains which may take up to a day of climbing to reach the mountaintop. Another climbing
adventure where climbers pass through villages, valleys, forests, bamboo and tropical regions

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may take up to a month to reach the snow peaks. Such fun experiences are essential in attracting
different consumers to purchase airline tickets to Nepal that cater for the holiday experience at
affordable offers (Everestview Travels, 2018).
Cheapflights airline ticket has an attractive value proposition especially with destination
to Nepal. The travel agency provides information on when to book for the flight ticket to Nepal
to avoid any inconveniences. Travelers willing to travel to the various tourist attraction
destinations are always advised to book earlier as there is always travel discount on the tickets
bought then. February to March and September to November are the peak season in Nepal when
one can travel to Nepal. Many festivals take place in the country, therefore, Cheapflights
company advice customers on obtaining tickets during off-peak season as there are discounts on
tickets (Cheapflights, 2018). Through advising customers and taking note of customers concerns
many travelers are attracted to the travel company to get the best travel experience.
Marketing mix strategy of Everest View Travel and Tours and Cheapflights Travel
The marketing mix is a marketing strategy that means positioning the right product, at the
right place, at the right time and with the right price (Marketing mix, nd.). Marketing mix
consists of 7Ps that were developed in the 1990s as an extension of the original 4Ps.
Traditionally, 4Ps entailed product, place, price and promotion then later other 3Ps were added
as marketing evolved. The 3Ps are people, process and physical evidence (CIM, 2015). The
goals of the marketing strategy are to gain a competitive advantage over its competitors,
increasing profits in the company and offering customer satisfaction. The image below illustrates
7Ps in marketing mix strategy:

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(Marketingmix, nd.).
Product developed in a company need timely promotion and release to market. Everest's
flight ticket to Nepal is the product developed to meet demands for clients traveling to Nepal.
Flight tickets to Nepal with attractive packages that may include holiday destinations, business
tours, and tourist attraction destination are essential while developing products. This informs on
when to design the product with the packages outlined (Queensland Government, 2017).
Cheapflights Travels, on the other hand, design its travel tickets during Christmas holidays, long
weekends and Easter holidays, many people desire to travel, in such times the travel company
can design its products with several benefits included. Such products attract more consumers to
the company at the right time.

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Prices attached to a product need to be competitive. The airline ticket to Nepal costs
around $999 which covered 15 days holiday tour in Nepal. Pricing serves a major role while
marketing the ticket to Nepal as it is the strategy that brings revenue to the company.
Cheapflights determine travel ticket prices on internal and external factors affecting the
company. Internal factors include distribution and promotion while external factors may be
competition, government regulations and behavior of consumer (Cheapflights, 2018). Such
factors make the company separate prices during peak season and off-peak season. The price
attached to a product makes the customer categorize a company against its competitors, therefore
need to provide a value proposition to customers.
Place is another marketing mix strategy applied by the two companies. Travel ticket to
Nepal purchased in Everest Travels provide various destination that one can tour. Different
packages for different places vary with the days to be spent in the area. Cheapflights mostly
determine destinations according to the seasons. During the summer season, travel tickets cater
for various destinations that one will enjoy the cool outdoor atmosphere. Travel tickets also cater
for tourist attraction destinations according to the time of the season (Tran, 2017). Marketers
using the place as a strategy to obtain value proposition use channels such as television,
billboards, internet site to showcase the places that tickets cater for therefore attracting
consumers who would wish to visit the place.
Promotion is the strategy used to convey the message about the product marketers seek to
sell. Travel tickets in Everest Travelers are promoted in their websites, brochures, and billboards.
The methods used are essential as consumers are aware of the product, therefore, attracted to it.
In Cheapflights, they use many channels to ensure their travel tickets are known to the
consumers in different places. Use of television, billboards, their websites and newspaper

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advertisements are the main channels used to convey messages to consumers (Valeria, 2014). A
wide variety of consumers are aware of travel tickets and the prices attached to them, therefore,
make it easy for decision making. The company also uses attractive messages that reach
consumers with informative messages on the travel tickets offered by the company. Promotion in
marketing makes consumers aware of the product offered in the market by specific companies
(Entreprenuer, 2018).
People are another component of marketing mix. Everest Travels uses staff who sell the
travel tickets to people showing up at the facility physically. The staff who are in contact with
consumers play a vital role in marketing a product. Their services through educating clients more
on the travel tickets and responding to concerns raised by consumers, the company gains value
proposition. Cheapflights ensure contact with its staff in different platforms (Hadka, 2012). They
include online platforms, physical offices and in functions organized by the company. Staff
promoting the travel tickets are knowledgeable about the services offered and different packages
catered for by the tickets. People involved in marketing mix are essential as they help in
marketing products. It narrows down from companies staff who offer quality services to
consumers. In return, the company realizes more sales in the product.
Processes in an organization are essential in marketing mix. Consumers have evolved in
how they consume products. Nowadays customers invest in entire experiences that run from the
time when the consumer learnt about the product to when they purchased the products. Everest
Travels invest in processes suitable for its clients which start from the marketing strategies to
when the consumer purchases the tickets. Cheapflights invest in simple and easy processes in its
operations. Customers go through short procedures before obtaining travel tickets in both online
platforms and their physical offices (Tran, 2017). Information on their sites is always updated to