IM 541: Scooby Tours Marketing and Management Strategies, Auckland

This report analyzes the marketing strategies for Scooby Tours, a company offering day tours from Auckland to Hobbiton via Waitomo Caves and Great Lake Taupo. It covers segmentation, targeting, and positioning strategies, recommending a focus on the demographic segment, particularly youth in their 20s. The report details marketing mix strategies for product, price, place, and promotion, including adding more tour activities, regional language guides, customized services, price reductions, strategic partnerships, and mobile app development. An action plan outlines the tasks, responsibilities, and timelines for implementing these strategies. The justification for each strategy's appropriateness is provided, along with monitoring and control measures using a budget and key performance indicators. The goal is to increase domestic market customer numbers by 20%.

Marketing & Management
Scooby Tours
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Contents
Introduction......................................................................................................................................2
Segmentation, Targeting, and Positioning.......................................................................................3
Segmentation...............................................................................................................................3
Targeting......................................................................................................................................4
Positioning...................................................................................................................................4
Marketing mix strategy....................................................................................................................5
Action plan.......................................................................................................................................8
The justification for the appropriateness of each strategy.........................................................10
Product strategy.....................................................................................................................10
Price Strategy.........................................................................................................................10
Place Strategy........................................................................................................................11
Promotion Strategy................................................................................................................11
The justification for the appropriateness of action plan............................................................12
Monitoring and control..................................................................................................................13
Budget........................................................................................................................................13
Key Performance Indicators......................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The report is based on the case study of Scooby tours that came into existence in the year 2017
December. The company is operating its current operations in Queen Street, Auckland CBD.
Scooby Tours provide the offers to the customers for a day tour from Auckland to the movie set
of Hobbiton via Waitomo Caves and Great Lake Taupo. The report includes the marketing
strategies that the company should develop in order to achieve the market objective of the
company and to improve the business performance.

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Segmentation, Targeting, and Positioning
Segmentation
It is a process of dividing a broad consumer or business market into the sub-group of the
customers. The segmentation is divided into the demographic, geographic, psychographic and
behavioral (Hanlon, 2018). Segmentation of the Scooby Tours are discussed below: -
(Source: Hanlon, 2018)
 Demographic: -. Scooby tour provides day tour packages to the adult, children, teenagers
and the youth who mainly visit the Auckland or staying in the city. The company doesn’t
divide the market on the basis of gender as they offer their services to both male and
female irrespective of education and religion. The company also segment the family size
who visits the place.
 Psychographic: - There are many people who believe in lifestyles and interest. Scooby
tours segment those customers who have interest in tours, value it and believe that taking
a tour is the part of their lifestyle.

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 Geographic: - Scooby tours segment both the international and the domestic areas as
they provide this service to every tourist who visits the place.
 Behavioural: - Scooby tours believes that most of the people who travel a lot know about
the tour packages that they can take for visiting the place. The company segment all the
customers who are aware of the tour packages and respond to the service that is provided
by the company.
Targeting
A target market is a market to which the company is willing to sell its products and services. It
includes the targeted set of the customers for whom it directs its marketing efforts (Hanssens,
Pauwels, Srinivasan, Vanhuele & Yildirim, 2014). Considering the fact that the company is not
able to grab the attention of the domestic customers it is decided that the company should target
the specific segment which helps the company to attract more and more customers.
The company should target the demographic segment which helps the company to enhance their
business performance in Auckland. The demographic segment includes many elements like age,
race, religion, gender, family size, income, and education. Scooby tour mainly targets the youth
who are in the 20s, both male and female. This target segment will be effective as most of the
youth people are educated enough about the day tours that are offered by the company.
Positioning
The positioning refers to as the place that the brand occupies in the mind of the customers (Khan,
2014). Along with this how the company is differentiated from its competitors. The Scooby tour
is the new business due to which maximum numbers of people are not aware of the company.
Therefore, the positioning of the company can’t be stated.

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Marketing mix strategy
Marketing mix refers to the set of the controllable, tactical marketing tool that a company makes
use to produce the desired response from its target market (Kotler, 2015). Scooby tour found that
most of the customers come from the market of China and Australia. Moreover, according to the
ratio of domestic to international passengers for the first four months of the operations was 1:2.
(Source: Kotler, 2015)
The objective of the company
The objective of the company is to increase its domestic market customer number by 20% for the
next summer season against the customer’s number during the first 3 month operations.
Marketing Mix Strategies for Scooby Tours
Product Scooby tours offer a day tour to their customers from Auckland to the
movie set of Hobbiton via Waitomo Caves and Great Lake Taupo. This
tour consists of the 45-minutes Waitomo Glow-worm Caves Experience

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which includes choices like water rafting, boat tour, kayaking and many
others and it is guided tour through the movie set of Hobbiton. The
package offered by the company includes the barbecue lunch in the
restaurant that is overlooking the Great Lake Taupo.
Objective The objective is to improve the services to provide the lifetime experience
to the customers.
Strategy  The company should add more places and activities on the tour.
 Appointment of the tourist guides who can speak in regional languages.
 Customization in services.
Price The price is the amount that is paid by the customers to purchase the
product. Scooby tour provides a day tour package at the price of $370 to
adults and $175 for the child.
Objective The objective of the company is to make the service affordable for the
customers belongs to the middle-income group.
Strategy The strategy that can be used by the company to achieve the objective is: -
 Reduce the prices of the services.
 Lunch facility in other restaurants at low prices.
 No extra charge for customizing the services.
Place The Scooby tours provide their services through different places such as
online reservation, telephonic booking and the booking by a personal visit
to the office. In addition, the company works with the agents who help
them in increasing the number of bookings.
Objective The objective of the company is to enhance the places from where the

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company provides the services to the customers.
Strategy The strategies that should be used by the company are: -
 Initiate tie-ups from different tour companies.
 Initiate the tie-ups with hotels and travelers.
 Mobile App
Promotion Promotion is the activity that communicates the product’s features and
benefits so that the customers can purchase the product easily (Chernev,
2018). The lack of promotion activity is one of the major loss due to which
the company is not able to achieve its objective.
Objective The objective of the company is to generate the awareness in the domestic
market about the services that are offered by the company as most of the
people in Auckland are not aware of the services.
Strategy The strategies that should be used by the company to accomplish the
objective related to the promotion of company are given below: -
Advertisement
a) Print media: - Scooby tours should print their advertisement
on magazine, newspaper, and on pamphlets.
b) Television: - Scooby tours can involve the popular TV actor
in promoting the service on Television.
c) Hoardings: - Company can post the hoardings on prime and
tourist locations where they can grab the attention of people.
Online media: - The company can promote the services with the use of
social media platforms which include Facebook, YouTube, Instagram and

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many others.
Sales promotion: - The company need to provide some coupons and
discount to the customers to promote the products (Babin & Zikmund,
2015).
Action plan
An action plan is a detailed plan that outlines the actions that are required to reach one or more
goals. Below given is the action plan for the Scooby tours that helps the company in deciding the
steps that are essential to take for achieving the goals and objectives. Moreover, this action plan
is linked to the marketing mix strategies of the company.
Marketing
strategies
Task/s or actions
required
Person/s in
charge
Schedule
/
Timeline
Place
P1- Product strategy
Adding more
places or
activities
Identification of the
places or activities.
Research
person
2 months Te Mata Peak
(as the place is
famous for
Paraglide)
(Stuff, 2016)

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Appointment
of Tourist
guide
Recruitment of new
employees.
Human
Resource
1 month Auckland
Customizing
the services
Conducting research so
that they can meet the
needs of domestic
customers.
Research
person
2 months Auckland
P2- Price Strategy
Reduce the
prices
Initiate tie-ups with
service providers
Manager 2 months Auckland
Arrange the
lunch facility
at low prices
The company should
search the best places for
lunch at low prices
Incharge 1 month Auckland
Central
P3- Place strategy
Initiate tie-ups
from different
tour
companies
Research for the tour
companies
Research
person
2 months Auckland
Tie-ups with
hotels and
travelers
Research for the hotels
and travelers who can
initiate the tie-ups.
Research
person
2 months Auckland
Mobile App Forming Scooby Tours
mobile App
Technical 4 months Auckland

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P4- Promotion strategy
Advertisement Promotion through Print
media Television and
Hoardings
Marketing 2 months Television
Advertisement-
Across the world
Print media-
Auckland
Online media Awareness on Facebook,
YouTube, and Instagram
Marketing 2 months Across the world
Sales
Promotion
Providing discount and
coupons to customers
Marketing 1 month Auckland
Central
The justification for the appropriateness of each strategy
Product strategy
 The company is willing to add more places and activities in the tour of the Auckland
which will attract the customers.
 Scooby tours appoint the tourist guides who can speak in regional languages which will
make them feel valued and personalized.
 The population of the Auckland is multicultural so according to their demands and need,
customization is effective.

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Price Strategy
 The tour company can arrange the lunch facility in other restaurants which helps in
reducing the price of the tour.
 Reduce the prices of the services for the domestic customers as this will help in attracting
the maximum people.
Place Strategy
 The company can initiate tie-ups from different tour companies who provide packages to
the visitors for the full journey.
 Scooby Tours initiate the tie-ups with hotels and travelers so that the customers can get
the easy availability of the services.
 Scooby tours can launch their mobile apps so that the customers can book the tour
packages from the mobile app.
Promotion Strategy
 Advertisement: - This is one of the effective ways through which the company can
promote its service (Helm & Gritsch, 2014). In the market of Auckland, it is essential for
the Scooby tours to perform the activity of advertisement.
d) Print media: - Scooby tours should print their advertisement on magazine,
newspaper, and on pamphlets.
e) Television: - Scooby tours can involve the popular TV actor in promoting the
service on Television.
f) Hoardings: - Company can post the hoardings on prime and tourist locations
where they can grab the attention of people.

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 Online media: - The Scooby tours should generate the awareness about the services
through online media (Baker, 2014). The company can promote the services with the use
of social media platforms which include Facebook, YouTube, Instagram and many others
which will help to enhance customer satisfaction.
 Sales promotion: - Scooby tours can generate the awareness through the sales
promotion. The sales promotion is one of the effective ways through which the company
can attract the customers of Auckland. The company needs to provide some coupons and
discount to the customers to promote the products.
The justification for the appropriateness of action plan
Product: - The strategies of the service of the company will satisfy the needs of customers. The
company can provide convenience to the customers by providing the people who speak in
regional languages. The company can make different customize packages for which there is need
of the action plan which states that it will take approx. 5 months in achieving the strategies with
the help of task and actions.
Price: - Company needs to perform the tie-ups with service and lunch providers so that who can
offer those services at low prices. The action plan reflects person designation that will perform
the task of research and forming tie-ups to satisfy customers. It will probably take 3 months to
perform the tie-ups for decreasing the price of products.
Place: - The Company needs to conduct research for tours and hotels so that company can
perform tie-ups. Along with the mobile app of the company will enhance the customers from the
domestic market. This is one of the effective ways to enhance the place of services. The action
plan reflects the same strategy and the steps that the company will take in 8 months.

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Promotion: - The action plan reflects the different places majorly which are used by the
company to promote their products to achieve the strategies from by them. The company is
willing to promote their products through advertisement, online media and sales promotion. It
will take 5 months to achieve the objective of the promotion of the company.
Monitoring and control
Budget
Budget is the financial plan for a specific period of time and this budget is prepared for the
estimation of the expenses and revenue over a specific period of time (Miller, 2018). It is
recommended to the Scooby tours to include 4 important expenditures in the budget which is
discussed below: -
Expenditure Amount
Marketing cost $ 15,000
Rent $ 5,000
Salaries $ 6,000
Capital expenditure $ 4000
The four items that are discussed in the budget are very important considering the objective of
the company to increase 20% number of employees. The marketing cost is very important as the
company should know the estimation of the amount of cost that they are spending on generating
the awareness in the market. Rent and Salaries are two expenditures which are mainly bear by
every small business in the current situation. Every company estimates the amount they have to

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spend on rent and personnel for achieving the objective of the company. Lastly, capital
expenditure is important as it maintains or increases the scope of organization future activities
because the past expenditure affects the current activities.
Key Performance Indicators
The four performance indicators that could be used to assess the marketing performance of the
Scooby tours are: -
 Customer retention: - Company can assess the customer retention as this is the effective
way to analyze the marketing performance (Katsikeas, Morgan, Leonidou & Hult, 2016).
The customers who are loyal to the company reflect the retention of customers in Scooby
tours.
 Increase in sales and revenue: - The evaluation of the rise in the sales and revenue of
the company reflects the marketing performance of the company. The rise of the revenue
and sales reflect the effective marketing performance and vice versa.
 Customer satisfaction: - The customer’s satisfaction is used to assess the marketing
performance of the Scooby tours as it is essential for the company to satisfy the needs of
the customers.
 Returns on Advertising spend: - ROAS is a tool that is used to major the profit earned
by the company through advertisement. This tool evaluates the effectiveness of marketing
campaign (Goulart, 2016). The company will get a better perspective on the best
direction for optimizing unprofitable advertising.

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Conclusion
In the end, it can be concluded that the Scooby Tours there are numerous strategies which will
help the company to achieve the objective of increasing the number of customers by 20%. These
strategies are recommended to the company after considering the current operations of the
company. Along with this, the action plan states that it will take time to accomplish the objective
of the company. This is also assessed that the company needs to spend a huge amount of
implementing the strategy.

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References
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Germany: Cengage
Learning.
Baker, M. J. (2014). Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018). Strategic marketing management. Chicago: Cerebellum Press.
Goulart, M. (2016). 5 Critical Marketing Metrics to Follow. Retrieved from:
https://www.entrepreneur.com/article/278758
Hanlon, A. (2018). The Segmentation, Targeting and Positioning model. Retrieved from:
https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/segmentation-targeting-and-positioning/
Hanssens, D. M., Pauwels, K. H., Srinivasan, S., Vanhuele, M., & Yildirim, G. (2014).
Consumer attitude metrics for guiding marketing mix decisions. Marketing
Science, 33(4), 534-550.
Helm, R., & Gritsch, S. (2014). Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International
Business Review, 23(2), 418-428.
Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing
performance outcomes in marketing. Journal of Marketing, 80(2), 1-20.
Khan, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business, and management, 6(2), 95.

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Kotler, P. (2015). Framework for marketing management. India: Pearson Education.
Miller, G. (2018). Performance based budgeting. New York: Routledge.
Stuff. (2016). 10 lesser-known New Zealand holiday spots. Retrieved from:
https://www.stuff.co.nz/travel/destinations/nz/80795398/10-lesserknown-new-zealand-
holiday-spots