STA Travel Marketing and Business Environment Analysis

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Table of Contents
INTRODUCTION...................................................................................................................................3
ANALYSIS.............................................................................................................................................4
CONSUMER BEHAVIOUR.....................................................................................................................5
SEGMENTATION, TARGETING AND POSITIONING...........................................................................6
CONCLUSION........................................................................................................................................7
REFERENCES........................................................................................................................................8
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INTRODUCTION
STA Travel is a private travel holding limited which was founded in 1971 and headquartered in
London, Zurich and Australia. This is the largest company in adventure travel for young people
and students with having 200 branches in 12 countries and it employs 2000 people.
The main purpose of this investigation is to research marketing and business environment
including micro and macro. It will also demonstrate the stakeholders of the company, market
and sales trends, target markets, competitors, the behaviour of consumers based on making a
purchase decision and will focus on market segmentation and their benefits.
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ANALYSIS
Marketing environment: it is a combination of internal and external factors which can affect
the business in establishing relationships with the customers. According to Philip Kotler (2019),
the marketing environment of any company consists of the forces and actors outside the market
which affect the ability of marketing management for maintaining the relationships with
targeted consumers. It is important as it is a dynamic aspect for a company for understanding
the market environment and to operate in the market.
PRESTCOM of STA travel
Political Government orientation, stability, export-import etc. impact STA travel.
Regulatory Changes in regulations, laws and institutions impact the STA travel.
Economic Disposable income, tariffs, inflation, business tax etc. Impact STA travel.
Social Population, age profiles, lifestyle etc. impact the STA travel (Travel industry,
2017).
Technological Change in transport, software, medical, communication technology etc.
Competitive Competitors, product nature, industry structure etc. impact STA travel.
Organization Location, budgets, stability, reputation, services etc. impact STA travel.
Market Customer’s attitude, decision, habits, motivation etc. impact STA travel.
SWOT analysis
Strengths STA Travel has a strong relationship with suppliers, reputation in the market,
having 200 branches in 12 countries and it employs 2000 people.
Weaknesses STA Travel is lacking behind in understanding social media, leader programs
and no experience with niche cruises as it only has flights for students.
Opportunities It has the opportunity to merge with cruises for expanding its services and
overcome its weaknesses (Travel industry, 2016).
Threats Political and market factors are becoming a threat to the company.
Stakeholder analysis
STA travel aims to keep the stakeholders satisfied and informed by the travelling policies and
regulations aspect. STA travel makes efforts in increasing interests of the stakeholders for
engaging them into management teams. It also works for key players by giving them proper
time and effort to manage their interest and satisfaction (Gonzalez-Zapata and Heeks, 2015).
Figure 1 Power and Interest
(Source Gonzalez-Zapata and Heeks, 2015)
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CONSUMER BEHAVIOUR
Consumer behaviour is a study of the groups, organizations and individuals for selecting,
buying, using and disposing of goods and services for satisfying their wants and needs. STA
travel limited understands the customers that at which cause they make the purchase decision
of their product and services (East et al., 2016). Consumer buying behaviour involves the total
of their attitude, intentions, preferences and decisions. Benefits to the organization are as
follows:
Influence: This helps STA travel limited to increasing their sales and revenue, the strong brand
image of the company positively impacts the customers to buy the products and services of the
company. The shifting market trends also benefit the company for changing their services and
products according to the choice of the customers for satisfying them (East et al., 2016).
Consumer buying process:
The buying behaviour arises out of the need of the customer’s need in response to which
customer gather information to fulfil the desire. Then an alternative is found for the same want
which leads to the decision of the purchase and then the post-purchase behaviour is shown by
the customer (Euan Johnston, 2016).
Business people and frequent travellers are the main customers of the company. The customers
expect the best customer services and best deal for travel and accommodation as compared to
other companies (Euan Johnston, 2016).
Customer pays the offered price with discounts and taxes to the company for travelling. The
customers frequently compare STA with other providers because the customer wants
everything to be best and affordable (Euan Johnston, 2016).
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Need
Recoginition
Information
Search
Evaluation of
Alternatives
Purchase
Decision
Post
Purchase
Behaviour

SEGMENTATION, TARGETING AND POSITIONING
Segmentation: It is the process of dividing the potential customers based on the different
parameters for the sale of the product or service (Camilleri, 2018).
Targeting: It is the process where a particular group of people is being selected to sell the
goods and products to the customers depending on various factors. Targeting helps the
company to focus on the particular group of the customer so that the strategy can be
implemented accordingly in the market (Camilleri, 2018).
Positioning: It is the process of placing the product in the market among the target customer so
that STA can attract potential customers. The position of the services and the product should be
done in such a way that it can overcome the weak point of the strategy and can lead the market
(Camilleri, 2018).
Benefits of STP: The benefit of STP is that it will help STA to attract potential customers. This
will also help STA to have a strong market position which ultimately will lead to high sales. This
will increase the competitiveness of the company which ultimately will make the company
stronger. Another important benefit is that this strategy is also helpful in market expansion
(Schlegelmilch, 2016).
Sales/Market trend: Market trend is a phenomenon where the consumer's buying capacity
based on the want, need, desire etc. is identified in place of the economic and political factors.
Market segment: The market segment is the process where the market is segmented on the
base of the demographics, income, status etc. This helps the company to push the sales in the
market (Schlegelmilch, 2016).
Target market: target market is the group of target customer which is focused on STA travel.
The development of the target market is done so that the company can increase sales
(Schlegelmilch, 2016).
Competitors: The competitors are those companies or brands which are working in the same
product line and are a kind of threat for STA travel. There are few competitors of STA are
Carlson Wagonlit Travel, Inc., and Expedia Group, Inc. The competitors also provide the travel
facility to the customers with affordable deals (Alexander et al., 2015).
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CONCLUSION
The assignment has covered the various marketing strategy that is important for STA to be
implemented in the business. This will help the company to increase the sales of the company
by attracting potential customers. Different marketing steps are to be implemented by the
company to boost the sales of the company. This can be done with the help of STP, focusing on
the competitor’s strategy, focusing on the USP of the company etc.
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REFERENCES
 Alexander, J.M., Diez, J.M. and Levine, J.M., 2015. Novel competitors shape species’
responses to climate change. Nature, 525(7570), p.515
 Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel
Marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham
 East, R., Singh, J., Wright, M. and Vanhuele, M., 2016. Consumer behaviour: Applications
in marketing. Sage
 Euan Johnston, 2016. 5 steps to understanding your customer’s buying process. Online
available at https://www.b2bmarketing.net/en-gb/resources/blog/5-steps-
understanding-your-customers-buying-process last accessed on 6 August 2019
 Gonzalez-Zapata, F. and Heeks, R., 2015. The multiple meanings of open government
data: Understanding different stakeholders and their perspectives. Government
Information Quarterly, 32(4), pp.441-452
 Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In
Global Marketing Strategy (pp. 63-82). Springer, Cham
 Travel industry, 2016. SWOT analysis: online available at
http://marketingdawn.com/pestle-analysis-of-travel-industry/ last accessed on 5
August 2019
 Travel industry, 2017. PESTLE Analysis: Online available at
http://marketingdawn.com/swot-analysis-of-travel-industry/ last accessed on 5 August
2019
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