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When developing our marketing plan, we held some focus groups to gather information on the customers' needs and desires. From this information, we were able to make useful decisions concerning our target consumers. We will be giving our clients a chance to praise or criticize our services. In this way, we will be able to know our weak points and improve on them. They can either do it by filling the forms that we give them at the end of their trip or by writing a review on our website. Finally, we will be keen to note any business model changes that our competitors will implement.
Customer and Competitor analysis and pricing
Customer Analysis
The psychographics and demographics of FreeStyle Travel Company cut' across people from all works of life. This includes; Families, business, friends, and other boutique-style tour groups. For those who naturally need the services of this company, there is no boundary or distinction to it. Unlike other traveling companies and agencies, which usually concentrate on high-earning clients and corporate clients, Free Style Traveling company serves any customer who can afford to travel from one country to another and within the boundaries of China. This company will mostly be focusing on those foreign tourists who are seeking excursions and leisure travels in China and more importantly the tourist attractions which are found in Dalian. The impression that Dalian gives first-time tourists the beautiful lawns, fountains, squares and gardens. A part of those attractions, the tourists, are also welcomed to see and appreciate the numerous attractions which are found in the country. Although Free Style Company realizes that the majority of its tourists come from South America, the company will target those tourists who are Africa and Europe. Often these tourists lack adequate and transport knowledge about China. The company shall hence target those tourists who want to see as many sites as possible and are not mobile. The company is a reliable source; it will escort tourists around the country and help them minimize wastage of money through vehicles to move them around by themselves (Tomczyk et al. 3652-3658).
Research which was carried out in China shows that traveling industry is growing at a rapid state. The main reason for this growth is because of the devaluation of other countries currency, a healthy domestic economy and improved infrastructure which is an excellent boost to the country. Statistics which was carried out in 2017 showed that leisure travel had increased by 3.2% and it is predicted to increase by 1.2% in the next year. The healthy economy in China has led to an increase in business which in return has helped cod the traveling business. Many customers who are from within and from abroad are usually unsure of the location of their destination, but our company has a vast knowledge of the various destinations within the country. Because many customers look for traveling companies which will maximize their satisfaction and ensure that the money is spent as required, Free Style Company is there to provide them with that satisfaction which they require. Tour and travel industries are a continuous state of growth. Because of that, ideas and business strategies are also evolving as days' pass. In the few traveling§ and touring agencies in China, it was found out that males are the ones who dominate in the touring services which were rendered. Statistic showed that 57% of the travelers were males while 43% were female. The difference in these percentages is because of the hard adventure which is offered by many traveling agencies. The other adventure which will also be offered by our company is the soft adventure which is much loved by the female. Thirty-six years is the average age of an adventure traveler in China. Comparing it to non-adventure travelers whose average years is forty-one years old, this shows that the number of travelers who are single is higher compared to those who are married. Most of the tourists and travelers are usually very educated, and it was estimated that their annual salary is $45,800 per annum. In the adventures list, most of the travelers like to travel to areas of natural beauty where they can relax and push their selves to the limits.
Competitor Analysis
Presently, in this line of business, few competitors are offering similar services like ours. Considering the current growth rate and the change of pace in the tourism industry, many companies are being lured into this sector. To avoid the company to be short-lived, the company will firmly be established on the market and strongly be differentiated from another genre of businesses. Most of the company’s competitors are hotels and travel agencies which offer traveling excursions to their customers. Most of the travel agencies and hotels help travelers book their hotel accommodations, rent or reserve a car or a taxi cab and also book a flight before the departure of his journey through the internet and just from the comfort of his or her own home. Being aware of the level of competition in the tours and traveling agency, we will ensure that we deliver timely and consistent quality service. Secondly, our customers will be able to experience remarkable improvement and difference in the way our services are being provided. We will ensure that the tourists, travelers, and our service providers expectations are met to the fullest. To minimize the competition between our competitors and us, in the form of a strategic alliance, we will create and establish a conducive and good working relationship between us. By this, our company will offer services to their clients, and this will enable them to effectively and conveniently undertake their main activities hence ensure that their customers are satisfied to their fullest. When this gap is bridged, due to the excellent working relationship which we created, the customers will be inclined towards our services. Lastly, under competitor analysis, the owners and management staffs of this company are referred to as gurus. These people are licensed, core professionals and very highly qualified tours and travel experts in China. This kind of people makes us count it as a competitive advantage to us (Sun, 125-141).
By the end of 2017, Dalian had 365 travel agencies in the whole city. In addition to relevant agencies and offices, the scale of the travel agency industry has been unprecedentedly developed. Of these, only 30 travel agencies are international travel agencies, and the remaining 80% are medium and small travel agencies. Their operation efficiency is relatively low, they have no brand awareness and are at a disadvantage in the competition. Such situation poses a severe test for the survival and development of medium and small travel agencies.
Pricing strategy
FreeStyle traveling Company will make its money through commission they get by offering services such as securing transit visas, booking flight tickets, booking for taxi cabs or shuttle buses, hotel bookings, car rentals and cruise line booking among many others. Apart from those sources of income, the company will generate incomes from selling of covers, related insurance policy, the sale of tour guide books and sale of foreign currencies. For our all of our clients, the fees will be below the average market rate. This will be enhanced through the collection of payment in advance and the overhead as low as possible. To nonprofit organizations, start-ups, small social enterprises, and cooperatives, a special discount will be offered to them. Clients who will need regular access to tours and travel consultancy, assistance and advisory services, they will be offered a flat rate service.
A markup pricing strategy will be used for the company to ensure profits are realized at the end of the sale of products and services. The costs that have been associated with setting up the business have been given an upper hand since the primary purpose of setting the business will be to make profits. Care will be taken to ensure that the pricing strategy is one that ensures the company is not loaded down with the administration and associated costs. An online booking system will, therefore, be implemented from the onset. At this technology paced age, there is an urgency which comes from following in the footsteps of the people who laid down the foundation for the business (Nagle et al.)
Since the business relies heavily on seasons, it is crucial that the different times and seasons be prioritized when setting up the pricing formula. Prices will be up depending on the times of the year and the demand that has been set by the market. Typically this will be experienced once every year. Last minute pricing will be used to some extent. The strategy will be used to fill the inventory gaps that may exist due to previous transactions. It will be applying discounts to daily prices depending on the prevailing rates in the market.
Level of Analysis
SWOT Analysis
In this rapidly growing economy, we are planning on entering a very lucrative market. We project our strengths by providing custom designed travel excursions to our customers and to respond to what the market dictates. The company's personnel will have a thorough and comprehensive knowledge of the areas we intend to take the tourists. Building a business which stands out at this age and time requires extensive planning and thoughtfulness which becomes vital as the business grows with time. It assists in many aspects of the business like establishing the goals and defining strategies which make the vision to appear brighter with each passing day. Business analyses help the business to stand out from those other businesses which have been in the industry for a while. This will enable us to penetrate the market and overcome the milestone. Below are the summaries of the strengths, weakness, opportunity, and threats (Boonyarat, Crowder, and Wills). |
