International Tourism & Hotel Marketing PR 2018: A Strategic Analysis

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This report presents a comprehensive marketing analysis of international tourism, focusing on a DMO in Mexico and its competitive landscape. It evaluates current experience offerings, identifies essential competitor features, and explores marketing implications using SWOT and PESTLE analyses. The report details customer analysis through market segmentation, targeting Chinese families as a new international market. Strategic opportunities are examined using Ansoff's Diversification strategy, connecting the strategy to the new target market and proposing new product ideas like customized experiences for Chinese families. Furthermore, it assesses the DMO's website using the AIDA model and suggests improvements. The report concludes by proposing new communication items, including customer exhibitions and dioramas, to enhance marketing efforts and attract more tourists.
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Running head: INTERNATIONAL TOURISM
2222HSL INTERNATIONAL
TOURISM&HOTEL
MARKETINGINTERNATIONAL
MARKETING PROJECT
September 3
2018
Student Name:
Student ID:
Tutor name:
Class: 1
Due Date:
Words count:
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INTERNATIONAL TOURISM 1
Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Current Experience offering and Analysis.......................................................................3
2.1 Experience Offering.....................................................................................................3
2.2 Essential Features of Competitor’s Experience...........................................................3
2.3 Marketing Implications................................................................................................3
3.0 Customers Analysis..........................................................................................................4
3.1 Procedure of Marketing Customer Segmentation........................................................4
3.2 Selection of New International target Market..............................................................5
4.0 Strategic Opportunity.......................................................................................................6
4.1 Marketing Strategy.......................................................................................................6
4.2 Connection of New Strategy and New Target Market.................................................6
4.3 Product Level and Product ideas..................................................................................6
5.0 Integrated Communication Mix.......................................................................................7
5.1 Definition.....................................................................................................................7
5.2 Assessment of Website................................................................................................7
6.0 New Communication Item...............................................................................................8
6.1 Customer Exhibition....................................................................................................8
6.2 Diorama........................................................................................................................9
7.0 Conclusion..........................................................................................................................10
References................................................................................................................................11
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INTERNATIONAL TOURISM 2
1.0 Introduction
The quick growth of the community around the world reflects that Globalization will be the
definitive trend. Hence, the strategy of marketing is required with respect to the growth of the
international market. In the context of the marketing mix theory, a business must differentiate
itself from its rivals by creating a unique marketing mix to compete with them.
(Chattopadhyay, Nedungadi & Chakravarti, 1986, pp. 129-136). Therefore, the aim of
framing this report is to perform the marketing analysis and based on that make a marketing
strategy. The DMO of tourism is placed in Mexico. It provides a memorable experience to
the visitors or consumers but it deals with numerous challenged from the rivals. Initially, the
report will evaluate the present experience offerings. After this, it will represent the customer
analysis and the explanation of strategic opportunities. Besides this, an integrated
communication mix and news items of communication will be elaborated. In the end, based
on the complete analysis a conclusion will be framed.
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INTERNATIONAL TOURISM 3
2.0 Current Experience offering and Analysis
2.1 Experience Offering
In Mexico, there are various unique and attractive locations that are worthy for visiting and
touring. This tourism location provides a different kind of experiences to visitors, which
comprises places of interest like Angel of Independence, products like beverages and food,
physical indication, diverse races, etc. Competitors that offer the same type of attributes
comprise Italy and Albania. These rivals approximately offer a similar type of experience as
Mexico. Hence, it has a probability that the rivals might appeal more visitors as compared to
Mexico.
2.2 Essential Features of Competitor’s Experience
Albania- Few of the distinctive attractions present in this place are Radhima, Vlora, and
Narta. However, consumers will spend less because of the low rate of currency exchange
against dollars.
Italy- Some of the unique products and locations are- Leaning Tower of Pisa, Colosseum,
Italian Food, and Pantheon. Italy is considered the well-known attractive locations in the
whole world.
2.3 Marketing Implications
Under marketing implications, the topics that will be of maximum use are PESTLE Analysis
and SWOT Analysis.
SWOT Analysis
SWOT tool is utilized to support a business or company to recognize its external threats and
opportunities as well as its internal weaknesses and strengths. It is one of the essential
procedures, which is used before taking any final decision related to strategy development.
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INTERNATIONAL TOURISM 4
PESTLE Analysis
A PESTLE framework is used by an organization to evaluate the external environment of the
business (Yüksel, 2012, P12). It is very important to look at all the six elements or factors
before developing or making a strategy. The factors of PESTLE Analysis are Political,
Economic, Social, Technological, Environmental, and Legal.
3.0 Customers Analysis
3.1 Procedure of Marketing Customer Segmentation
The procedure of Market Segmentation comprises three important steps i.e. Market
Positioning, Market Targeting, and Market Segmentation. In the context of Market
Segmentation, the business recognizes different methods to divide the market and create
market profiles. Besides this, various ways are utilized to evaluate the segmentation
variables, which comprise Psychographic, Geographic, Behavioural, and Demographic
segmentation. The data related to this topic could be extracted from the government statistic
page. With the help of market segmentation marketers of the company can evaluate the
diverse features and compare them with each other.
After Market Segmentation strategy, another important element is Market Targeting. This
step is related to planning the methods of attractiveness and chooses the target segments. In
order to select a target, a business should consider the three factors, like the objectives and
resources of the company, the attractiveness of the structured segment, and the size and
growth of the segment. Our potential consumers are Family of China because it is one of the
largest markets. China possesses around 1.3 billion population and the number of Chinese
arrivals is increasing yearly in Mexico. Hence, to achieve the growth, marketers of the
company choose the target and create different measures of segment attractiveness.
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INTERNATIONAL TOURISM 5
After Market Targeting there is another important step i.e. Market Positioning. In this
positioning and marketing mix of each target is developed. Position means, the place of the
product or destination in the mind of the customer as compared to other products in the
market. For instance, Tourist from China generally does the comparison between Mexico and
France. The elements of comparison include budget low or high, close or far away.
3.2 Selection of New International target Market
The new international target market is a tourist from China. There are various data available,
which reflects that the tourist from China is the largest market and they possess a huge range
of growth in the coming time. In 2015, from January to December there was an increase in
the Chinese Tourist from 47,482 to 55,097, which was approx. 16% increase.
Mexico is considered as one of the top ten destinations for the tourist from China. Greece is
at the 10th position for the Chinese tourist and 17% people choose this location (Jing Daily,
2014, p. 1). This reflects that Mexico is in the list of top ten destinations of tourism for the
visitors from China and there will be people who must be planning their trip in the future.
Besides this, for Mexico Chinese Tourist is the largest market. The tourist from China shows
their willingness towards spending money as compared to another country tourist. As per the
World Tourism Organization (2016, p. 1) in 2016, Tourist from China spends approx. $261
billion USD and at the second position are a tourist from the USA with around $122 billion
spending. The amount spends by the Chinese tourist is double from the amount of United
States. This reflects that the biggest market for Mexico is China. Moreover, the government
of Mexico and China are planning to enhance the tourism quality, for instance, starting direct
flight services from China to Mexico. As per Drakopoulos (2017), after three years there will
be an increase in the number of visitors from China to Mexico. Therefore, it could be said
that Mexico has become the first choice of tourist from China.
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INTERNATIONAL TOURISM 6
4.0 Strategic Opportunity
In the Strategic opportunity section, the report will be discussing the Ansoff's strategy. This
strategy of marketing will support the marketer in understanding how to differentiate the
processes from the competitors. Furthermore, the new experience/ product will be established
in this particular section.
4.1 Marketing Strategy
Ansoff’s Strategy is being used for the Mexico destination because it supports DMO to
handle and plan the destination future growth. The Ansoff’s strategy that has been selected
for the tourism destination is Diversification as it is appropriate for the tourism industry of
Mexico because in 2.3 sections it was mentioned that Mexico requires a new experience/
product to appeal new target segment or market and increase international tourism. As per the
fact, that Mexico is abundant in resources, they can utilize them to offer the new experience
to their new international target market.
4.2 Connection of New Strategy and New Target Market
As per the above discussion, National Tourism Organization of Mexico (DMO) will be
utilizing the Ansoff’s Diversification strategy. The new market that has been chosen is
Chinese Families, is one of the markets that carry maximum potential, which was yet not
focused by the Mexico tourism authority. Hence, this is the chance for Mexico to appeal
those consumer, because more Chinese Tourist will carry maximum income to the
destination. The new experience that will be offered by the destination will be suitable for
Chinese Family Tourist and them towards the destination.
4.3 Product Level and Product ideas
In the product, there are four levels that are utilized in the development of the product i.e.
support product, core product, augmented product, and facilitating product. The new
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INTERNATIONAL TOURISM 7
experience in Mexico is modifying the knowledge that will complement the Chinese family
tourism. The traveler will get the welcome email, the time they will buy from us. The email
will be covering all the important information related to activities they will do in Mexico.
Besides this, customers will be offered different costumes for videos and pictures to keep it as
a memory of the Mexico trip. The Chinese language will be used to interact with Chinese
Family Tourist and make them feel comfortable. The tourist will be offered a photographer
on the double-decker bus for taking family photographs. Moreover, in the island and cruise,
there will be the facility of kid zone.
5.0 Integrated Communication Mix
5.1 Definition
Integrated Communication mix works as an influential tool that direct specialists in
marketing communications successfully (Shakeel-Ul-Rehman, 2011, p189. IMC comprises
sales promotion, public relations, advertising, direct marketing, and personal selling. By
utilizing diverse channels of marketing, IMC forms the operative transfer of marketing
information and offer maximum value when diverse channels are utilized at the similar time;
IMC can certainly look at the accomplishment turned into promotion in practice.
5.2 Assessment of Website
The report makes use of the AIDA model for assessing the strengths and weaknesses of
Mexico website. The AIDA model is the tool of marketing, which reflects the four steps
those consumers’ deals with when they come into the contact of advertisement. AIDA stands
for attention, interest, desire, and action (Lewis, 1898). The Mexico DMO communicates the
message of marketing communication to the target customers. On the website's homepage,
there are some images of appealing locations of Mexico and general information to present
Mexico, which is the process of attention of AIDA model. With the help of these images and
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INTERNATIONAL TOURISM 8
information, consumers can receive the invitation of visiting Mexico. The official website of
Mexico offers various links to get in contact with social blogs and websites. It could appeal
the interest of tourist as per the AIDA model. Hence, the consumer gets interested in the
product. In the context of weaknesses, the Mexico website does not provide information in
multiple languages, like Japanese or Chinese. This reflects that it lacks in action aspect of the
AIDA model, which means that the visitors have to visit another different website if they
want to buy the tickets for the well-known destination of tourism. Therefore, the Mexico
website might get the attention of people and arouse their interest, but then might not induce
their action. In comparison to the Albania, which is the key rival of Mexico's DMO also lacks
in action. On the other side, the website of Albania is very creative and the structure of the
website is clear because it can simply scan through two websites. Therefore, Mexico's official
website should work towards adding more languages to nunnery invitees and have an
acquisition link with the destination of tourism.
6.0 New Communication Item
6.1 Customer Exhibition
The aim of customer exhibition is that the worldwide industry of exhibition has experienced
the essential growth in last few years, which results in considerable growth in commerce and
trade. As per Veronic Suhler and Stevenson Communications, the total spending on the
exhibitions in 2006, was around US$10.3 billion, it is expected to exceed that on print media,
earlier the maximum marketing disbursement for the enterprise of trade in 2008 ([41] Reed,
2007). Increasing budgets of corporate travel and value, the marketers do head-on interaction
with the potential as well as current consumers, which shows the possible reasons for the
increasing growth of exhibition. The motive why it is essential to a DMO is DMO could
market their locations to appeal to more consumers, solve present problems and generating
more money for the upcoming period.
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INTERNATIONAL TOURISM 9
6.2 Diorama
As our model is very colorful, so it will support in getting more attention from customers.
Customers could see well-known sightseeing and historic building of Mexico. Besides this,
we have the facility of a double-decker bus for their Chinese family tourist and famous
Mexican food such as Yogurt. In the interim, they have factories of yogurt, which can
produce yogurt. Most importantly, we have a website for bookings and telephone number for
customers to have a direct contact for making an order. The distinctive selling point of our
destination is yogurt factory, double-decker bus and destination's famous sightseeing and
historic building of Mexico. All the historic building, factory of yogurt, sightseeing, and
transport are provided to the new target market i.e. Chinese family. Our competitive
advantage is that we allow consumers to prepare their local food by themselves, which is not
allowed at every location and the factory of yogurt will deliver the finished good to their
residence, so in China also they can enjoy the Mexican Yogurt.
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7.0 Conclusion
In the conclusion, it could be restated that the report has reflected the new position of the
current tour of Mexico with the help of PESTLE and SWOT analysis, which will be
appropriate for the family tour of China. A tourist from China is the potential consumers due
to their increasing visits to Mexico. Depending on the Ansoff’s strategy of marketing,
diversification strategy has been selected for the destination. Therefore, Mexico has to
introduce new experience/ product to attract the people of the new target market with the help
of welcoming emails, Chinese photographer in the bus, kid zone, yogurt tour, and so on. To
deliver the message of marketing communication to the target market, the report has made
use of A.I.D.A model for the assessment and creation of new communication item for the
target market.
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INTERNATIONAL TOURISM 11
References
Chattopadhyay, A., Nedungadi, P., & Chakravarti, D. (1986). "marketing strategy and
differential advantage": a comment. Journal of Marketing, 49(2), 129-136.
Chinese Tourists Are Headed Your Way With $264 Billion. (2015). Home page. Retrieved
from https://www.bloomberg.com/news/articles/2015-03-11/chinese-tourists-are-headed-
your-way-with-264-billion
Chowdhry, A. (2016). Chinese International Travel Monitor 2016. Retrieved from
http://www.citmhotels.com/english.pdf
Jin, X., Bauer, T., & Weber, K. (2010). China's second-tier cities as exhibition destinations.
International Journal of Contemporary Hospitality Management, 22(4), 552-571.
Ledsham, C. (2016). Greece Looking To Attract One Million Chinese Tourists Per Year By
2021. Retrieved from http://china-outbound.com/2016/06/15/greece-looking-to-attract-one-
million-chinese-tourists-per-year-by-2021/
Lewis, E. St. Elmo. (1899). Side Talk about Advertising. The Western Druggist. (21
February). p.66
Makris, A. (2017). Chinese Tourists Visiting Greece Could Exceed 250,000 in Three Years.
Retrieved from http://greece.greekreporter.com/2017/02/17/chinese-tourists-visiting-greece-
could-exceed-250000-in-three-years/
McArthur, D. N., & Griffin, T. (1997). A marketing management view of integrated
marketing communications. Journal of Advertising Research, 37(5), 19-26.
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Mungai, F. N. (2010). Growth strategies applied by the institute of advanced technology; the
study of Ansoff model. The University of Nairobi Kenya.
Shakeel-Ul-Rehman, & Ibrahim, M. S. (2011). INTEGRATED MARKETING
COMMUNICATION AND PROMOTION. Researchers World, 2(4), 187-191.
Yüksel, I. (2012). Developing a multi-criteria decision-making model for PESTEL analysis.
International Journal of Business & Management, 7(24).
Zikakou, I. (2013). The Average Turkish Tourist in Greece. Retrieved from
http://greece.greekreporter.com/2013/12/14/the-average-turkish-tourist-in-greece/
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