Marketing Management Report: Kiwi Experience Case Study Analysis

This report provides a detailed analysis of the marketing strategies employed by Kiwi Experience (KE), a company focused on the backpacking market in New Zealand. The report begins by examining customer purchase behavior, highlighting how KE targets young adults and caters to their needs t...Read More

Management
4/21/2019

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Contents
Task 1:.............................................................................................................................................2
Task 2:.............................................................................................................................................3
Task 3:.............................................................................................................................................4
Task 4:.............................................................................................................................................5
References........................................................................................................................................7

Management 2
Task 1:
The first time zone influences the purchase behaviour of the customers as well as the
organisation that include the process of searching and selecting the product. There are different
steps a consumer may take while selecting the product that begins with understanding the needs
of the customers. In the case, this has been found that Kiwi Experience (KE) is looking to
facilitate the experimental group of customers who are generally adults with the age group of 18-
25 years as they are the one who make the expenditure on backpacking (Fanning, 2019). In
addition to this, it also considers customers based on lifestyle. The needs of the customer can be
driven by different internal as well as the external factors (Social, cultural and economic). This
has been found that KE follows the Maslow’s hierarchy of needs that helps them to respond to
the different types of needs and motivations of the backpackers (Elliot & Feltman, 2012). Once
the needs are identify, then the next step is identification of the suitable alternatives within the
market that can meet the needs of the customers. Then the customer evaluates the products and
makes the final decision based on perceived trust as well as brand recognition. Thus, KE product
is the well reputable brand due to which customers will consider it over the competitor.
Expectations of the customers are dynamic which are generally formed at the time of pre-
purchase, during purchase and after use. This has been found customer turned into the customer
when the company achieve the perceived expectation related to value, quality, and satisfaction.
This is very simple to understand that the customers select the product, expectations are based on
it, which is achieved by KE, and thus it leads to the customer satisfaction (Eisingerich, Merlo,
Heide & Tracey, 2016).

Management 3
The customers of KE evaluate the product and price with other facilities that enhance their
experience and lead to customer satisfaction. KR offers bus service as well as superb service via
knowledgeable and fun bus drivers that lead to rise in overall customer satisfaction.
Task 2:
The success and failure of the organisation is based on the satisfied customer expectations with
company that is based on the total product. The understanding related to the total product is
given below -
Product considerations: - KE deals in the tourism industry and due to which it is aware about
the target market, which majorly include backpackers. Thus, this makes the company to offer the
product with additional service that becomes unique value proposition. The augmented product
of KE is there recruitment of experience and knowledge bus drivers. This contributes in reducing
the cost of customers, as they will not hire guide. This is fact that the Kiwi Company is depended
on the destinations due to which they collaborated with Air New Zealand and STA Travel to
enhance experience. The promotion of the product and service is done in order to grab the
attention and the tagline for promotion is “Travel alongside like-minded travellers while
exploring the hot spots and the hidden treasures of New Zealand”.
Product layers: - There are majorly three product layers that include core product, expected
product, as well as potential product, all these help in satisfying the needs of customers.
 Core product: - KE is core product is its services that they offer to customers that include
getting from one place to another.

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 Expected product: - The customers expected a lot with the core product that is essential to
meet for the customer satisfaction. Kiwi Experience meets the expectations of the
customers by reaching at the destination on time with good service during the journey. In
addition, the consumer expects services at better prices comparing it with competitors
(Bılım, Bıșkın & Kaynak, 2018).
 Augmented product: - KE is effective when it comes to offering the value added services
to its customers that include the strong and close relationship with the customers. This
has been evident that there was a bbq at a backpackers' hostel in Auckland and there are
staff as well as accountants who does not direct contact but contribute in offering
effective services.
Task 3:
Product mix and line: - The product mix refers to as the wide range of the products that are
offered by the company. This has been found in the research that tourist demographic needs are
changing which is required to take care by company. For instance; more than 50% of the New
Zealand’s tourists are over the age of 40 and company is appealing to young people that is less in
percentage. In the case, this has been found that the company majorly focuses on the offering
high volume services but at low-margin as this is a paramount.
Product value proposition: - The products need to offer a benefit to the customers for which
they are making the payment. The strength of the value proposition is the surplus value that thee
customer ascribes for the product. The key value proposition of the company is reliable fun bus
drivers, the activities that they offer to the customers at trip, social experiences at the place and
the recommendations that they provide to their customers. In addition, KE communicates about

Management 5
their value propositions with the help of IMC tools that include social media and their website
(Jashi, 2013).
Product positioning: - The positioning of the product is a process of forming as well as
upholding a very distinctive market position for a company. KE is able to offer diverse services
to their customers in the market. This will help the company to form an effective position in the
mind of customers for the product. This position can be achieved with market that can be done
with beautiful New Zealand waterfalls or the destinations.
Product desirability: - This has been found that generally customers of KE are typically
approach motivated. Thus, this means they desire to consume the products that are majorly
offered by company. KE needs to consider the approach element in order to engage the product
as pleasure or happiness.
Utilitarian/hedonic value: - KE company service both as the consumer places an inherent value
requirement that is considered as their basic needs. The customers can purchase the Kiwi
Experience activity pack in order to seek the enjoyment as well as excitement.
Product uniqueness: - Products are required to be unique in terms of the objective and
subjective degree from the competitors. It is important when considering the role of competitors
like stray who operate and provide similar services in New Zealand market and targets the
similar market segment (Kotler, Bowen, Makens & Baloglu, 2017).
Task 4:
Service: -KE is able to provide the services with the help of their drivers as these people are
selected based on the adventurous and youthful nature that can offer the service of enhancing the

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driving experiences. In addition, these drivers offer enthusiasm, knowledge, and personality that
can create huge impact on the customers.
Experience: - Experience of the travellers is based on the service that is offered to them. KE is
able to deliver the delight experience with the help of meeting new people, experiencing a new
culture, and seeing new things, taking different activities (bungy jumping and kayaking).
Ideas: - KE communicated the idea behind the unique product concept of a coach transport
network that was neither an express point-to-pint service nor an inflexible coach tour. This idea
is communicated by the customers for forming reputation in market (Lumsdon, 2016).
People: - In the case, this has been found that people is considered as one of the crucial the
component of the KE as this supports the product by motivating the customers by social value.
Sharing of the experience with the new, interesting, and like-minded people is the part of the
allure of the product for customers as well as reason people.
Place: - Travellers who generally contact KE wants different options of the destination where
they can visit. This has been found that KE offers bus routes and different adventure packages to
their customers. KE boasts approx. 37 different destinations while on the other competitors stray
boast only 30.
Goods: - KE is able to offer reliable as well as assurance for the services that varied a lot from
the manufacturing goods quality indicators that include useful life, durability, and good design.
KE product offering are majorly entrenched in experiences and services instead of an exchange
of a physical product (Vellas, 2016). The quality of the service offered is more conducive to
customer’s satisfaction rather than the transfer of any kind of physical product that my take
place.

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References
Bılım, Y., Bıșkın, F., & Kaynak, İ. H. (2018). Marketing approaches and problems of Islamic
destinations. Islamic toursim: management of travel destinations, 38-54.
Eisingerich, A., Merlo, O., Heide, J., & Tracey, P. (2016). Customer satisfaction and purchase
behavior: The role of customer input. In Looking forward, looking back: Drawing on the
past to shape the future of marketing (pp. 220-220). Springer, Cham.
Elliot, A. J., & Feltman, R. (2012). Approach and Avoidance Motivation. Encyclopedia of the
Sciences of Learning.
Fanning, S. (2019) Activity: Backpacking New Zealand. Retrieved from:
https://www.themarketingconcept.com/activity-ke/
Jashi, C. (2013, May). Significance of Social Media Marketing in Tourism. In 8th Silk Road
International Conference “Development of Tourism in Black and Caspian Seas Region”.
Tbilisi: Black Sea University Publishing (pp. 37-40).
Kotler, P., Bowen, J. T., Makens, J., & Baloglu, S. (2017). Marketing for hospitality and tourism.
Lumsdon, L. (2016). Marketing for tourism. Springer.
Vellas, F. (2016). The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.