Student Flights: International Market Entry Strategy Analysis Project

This project analyzes the international marketing strategy of Student Flights, a travel agency targeting students and young travelers. The assignment focuses on entering the Chinese market, examining the company's background, marketing strategies, and competitor analysis. A PEST analysis of the Chinese market is conducted, evaluating political, economic, social, and technological factors. The project proposes a market entry strategy using franchising and emphasizes adapting to local market conditions and building trust. The analysis highlights the importance of high-volume destinations, adaptable marketing, and advocacy marketing. The project also discusses the use of discounts, online promotion, and applications to engage with the Chinese market. The report references competitor analysis, including Flight Centre and STA Travel, and provides a comprehensive overview of Student Flights' approach to international expansion.

STUDENT FLIGHT
MARKET ANALYSIS

• Black market > Student Flights > Universal Traveler
• Founded by Graham Skroo Turner
• 52 Student Flights stores in Australia
• 10 stores across Brisbane• Flights for people under 30
years old or full time students
• Student Flights are all about
a great airfare deal
• The flights include one-
way, return
and round the world airfares
(UT, 2020).
Distribution Channel
• Directly - In store and website (travel agency)
• Types of Distribution Channel – B2C or direct to
consumer Model
BACKGROUND OF STUDENTS FLIGHT

MARKETING STRATEGY OF STUDENT FLIGHTS
• Product:
 Domestic flights
 International flights
• Pricing strategy:
 mark down strategy to compete with the competitors.
 special discounts for students
 value added services.
• Place:
 both online and offline presence
 extensive presence globally.
(ttps://www.universaltraveller.com.au/flights/international)

MARKETING STRATEGY OF STUDENTS FLIGHT
• Public Relations:
 exclusive deals for students
 Holiday promotions
 Book Now, pay later policy
• Social Media Connections:
Student Flights website
(Universaltraveller.com.au)
Mobile Application
Facebook
Twitter
Instagram
YouTube
Snapchat
LinkedIn
(UT, 2020)
• Promotional Mix
 Print and TV ads, in-store
branding, brochures and
marketing collateral (websites,
banners, mass mailing or
emails). (Nadia, C 2015)
• Sales promotion:
 Holiday promotions
Exclusive deal for a
student
Book now pay later (UT,
2012)

COMPETITOR ANALYSIS
Major Competitors:
1. Flight Centre
2. STA Travel.
3. Ctrip- in host country China
Advantages of Student flights over other companies:
4. Focuses on the local sites over the overpopulated tourists
spots and hence have a good domestic market.
5. Has the widest range of discounts and concessions.
6. offers a responsible travelling experience. (Biddle, P 2019)
7. targets the travelers

COMPETITOR ANALYSIS
Students flight STA Flight Centre Ctrip (China)
Revenue- 226.3M$ Revenue- 141M$ Revenue-264.2M$ Revenue- 30.97B
Yuan
Global presence -
yes
Global Presence-
yes
Global Presence-
yes
Global Presence-
yes
Service Service Service Service
Opportunities- to
explore the Chinese
market
Opportunities- to
explore new
markets as they
provide multiple
benefits
Opportunities- to
explore new
markets as they
provide multiple
benefits
Opportunities- to
explore the
international
market (Ctrip, 2020,
)
Customer and
service- target
customer under 30
years of middle
class strata (Flight
Centre Travel Group
Customer and
service-
Targets mainly the
young group and
well off society.
Customer and
service-Customers
are generally of
high class society.
Customer and
service-
Local citizen who
are mainly travelers.

PEST ANALYSIS IN CHINESE MARKET
Political:
1. Political market is stable and open to international market.
2. currently no international company operating in china.
3. Opening of the free trade zone in Sanghai enhanced the opportunities.
4. simplified visa application procedure in China.
Economic:
5. China is the largest economy in world with growing GDP.
6. Tourism industry is developing.
7. exchange value of the Chinese currency is rising and hence people
are tending to fly abroad.

PEST ANALYSIS IN CHINESE MARKET
Social:
1. Chinese like travelling (Nadia, C 2015)
2. It is a huge population can be potential customer
3. China has around 30 million students over 18 year old
4. there are reportedly above 43% well off individuals and family
and this improved condition is a good market for travelling.
Technological:
5. We chat has improved communication
6. on average most of the Chinese population uses the
internet thus communication is easier.
7. use of micro messaging and micro blogging helps the
business.

SERVICE AND BRAND STRATEGY
• Must aim at creating the high volume
destinations.
• Adaptable to the market specific factors since
the population is not standardized like
America or Australia.
• creating a global versus local attitude.
• create the concept of advocacy marketing.

MARKET ENTRY STRATEGY- FRANCHISING
• Can enter the market through franchise that would lower the
risk of loss.
• Mass market pricing since China is a developing country. (Yao
Bai and Xu 2019)
• Discounts for students as it is primarily aimed for consumers
below 18.
• Must promote the idea of trust and comfort since most of the
Chinese customers believe on recommendations from other
acquaintances.
• Investing for future plans and keeping the options open.
• promote through radio, internet and allow online applications.

REFERENCE LIST
• Aryan,Norozi 2014, 3 reasons why Flight Centre Travel Group Ltd is ready for take-off,
https://www.fool.com.au/2014/07/31/3-reasons-why-flight-centre-travel-group-ltd-is-ready-for-take-off/
• Biddle, P 2019, Flight Centre targets youth travelers and further online growth, viewed 17th January 2020,
https://insights.ehotelier.com/global-news/2019/06/12/flight-centre-targets-youth-with-new-universal-travel
ler-brand/
• Ctrip, 2020, about us, https://au.trip.com/pages/about-us/
• Flight Centre Travel Group (FCTG), 2020, About Us, viewed 16th January 2020,
http://www.fctgl.com/about-us/who-we-are/
• Flight Centre, 2020, about us,https://www.flightcentre.com.au/about-us3
• Nadia, C 2015, How Flight Centre is mapping out a new kind of customer journey, viewed 17th January 2020,
https://www.cmo.com.au/article/563967/how-flight-centre-mapping-new-kind-customer-journey/
• STA Travel,2020, about us, https://www.statravel.com.au/why-travel-with-sta.htm
• Universal Traveller (UT), 2020, About Student Flights, viewed 16th January 2020,
https://www.universaltraveller.com.au/student-flights/about
•
• Yao, R., Bai, H. and Xu, H., 2019. Where should China's thermal power industry prioritize its B&R investment?
A study based on an environmental site selection analysis. Journal of cleaner production, 215, pp.669-679.
• ttps://www.universaltraveller.com.au/flights/international