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HOST 1096: DESTINATION MARKETING
BALI, INDONESIA
Ishan Dupar 100862133
Pauline Garcia 100847801
Lauren Hine 100667232
Simon Lam 100804456
Xiaoran Li 100850640
Donna Lee
George Brown College
2013
Executive Summary
This document discusses the marketing plan in regards to boosting Bali’s tourism sector. This
report analyzes Bali’s position among the competitive tourism market. One of our main focuses is being
able to communicate the type of experience we are trying to market towards our target demographic.
This marketing plan also discusses our avenues of marketing, taking into consideration the demographic
that incorporates the involvement of locals, tourists, and government among social and economic
aspects. Bali falls under a tourism-based economy, making it necessary to support all objectives of
creating Bali as a destination of interest.
Corporate Statement
Vision statement
A new exotic adventure beyond paradise
Mission statement
Our mission is to create your wildest dreams, to provide you with a jaw dropping ultimate
experience, breath taking scenery, and memories to treasure and last a lifetime.
Competitive SWOT Analysis
[SWOT Analysis – Bali]
Strengths:
1. Countless Tourist Attraction- The biggest industry in Indonesia is tourism industry, the
reason for that being is the natural beauty and heritage of Bali which consists of countless
tourist attractions.
2. Fiscal Constraint- The fiscal constraint policy saves Indonesia from bank crisis and economy
melt down. It also boosts the GDP of the country every year.
3. Young Working Population- The fast growing economy is due to more young population
working. The young population always gives the tourists better service and experience.
4. Aqua Culture- Bali is very well known for its aqua culture which attracts more tourists to Bali.
5. Technology- Superior technology allows Bali Seafood to better meet the needs of their
customers in ways that competitors can’t imitate.
Weaknesses:
1. Corruption- Corruption is one of the biggest problems in whole Indonesia right and this
affects Bali tourism also.
2. Over Population- Over population is also one of the advantages that Bali faces.
3. Drug War- The drug war which has been going on since 20 years between different gangs is
also a disadvantage for Bali.
Opportunities:
1. Chindonesia- The relationship between China and Indonesia has been very strong and this
could be one of the biggest opportunities for Bali.
2. Budding Democracy- Change from communist to democratic gave economy a boost and
made investment much less riskier.
3. Urbanization- The transfer of citizens from rural to urban populations results in an economic
boost, because urban residents tend to earn more money and purchase more goods, which
is a significant factor in economic growth.
4. Emerging markets- Markets that emerging at a very high rate are opportunities to expand
the tourism industry.
5. International Expansion- International markets offer Bali new opportunities to expand the
businesses and increase sales.
6. Battle against Corruption- Recent election victories pitted the political leadership with the
tools needed to battle corruption and graft.
Threats:
1. Potential for Religious Extremist- Recent bombings in Bali which can continue is one of the
biggest threats for Bali.
2. Piracy on Water- Water piracy is very common in Bali.
3. Forest destruction- Deforestation is a very big threat to the natural beauty of Bali.
4. International Competition- International competitors are a big threat to Bali.
[SWOT Analysis – Hawaii]
Strengths:
1. Tourism Industry- Huge tourism industry which is the main source of income of the country.
2. Well Known Destination- Hawaii is very well known and popular for holidays.
3. Cultural Diversity- Hawaii is a multicultural destination. There are many different types of
cultures that make Hawaii a unique place.
4. Brand Name- A strong brand name is a major strength of Hawaii. This gives Hawaii the
ability to charge higher prices for their products because consumers place additional value
in the brand.
Weaknesses:
1. High Cost of Living- This is one the biggest weaknesses as it is very expensive to live there.
2. High Taxes- The taxes are really high in Hawaii which is another weakness for Hawaii.
3. Lacks of Affordable Accommodation- The accommodations are really very expensive in
Hawaii than the competitors.
4. Lack of Scale- A lack of scale means Hawaii’s cost per unit of output is very high. Increasing
volume, while maintain quality, would help reduce those costs.
Opportunities:
1. Increasing Cruise Lines- Cruise lines to Hawaii has been increased and this serves as an
opportunity to expand small businesses of Hawaii.
2. Growing Tourism Markets- Tourism markets that are growing rapidly also is a good
opportunity.
3. Improving Infrastructure- Improving public and private infrastructure affords Hawaii to
provide a more comfortable, sanitary and attractive destination to visiting tourists thereby
reducing visitor dissatisfaction.
Threats:
1. Invasive Species & plants- Invasive plants and species are a potential threat as they are very
harmful and dangerous.
2. Tourism is volatile- Hawaii’s tourism is very volatile and changeable.
Product Positioning and Branding
Socio-cultural Demography Analysis
Bottle of Bintang (beer):
15,000Rp
Average spenditure:
Foreign tourists spend an average of US$100 per day in Bali.
In comparison, locals in Denpasar spend less than $2 per day
Visitors per annum:
2 million
Rubbish tip:
Bali produces 150 tons of waste each day as a direct or indirect result of tourism
Staple dish:
Rice is revered as a gift of life from God. Anything not served with rice is considered jaja (a snack)
Percentage of land used for rice production:
20%
The tropical island paradise that is Bali has long since been a dream place to visit for travelers
from around the world. The beautiful beaches, its warm, clear blue waters and the friendliness of its
native people have all combined to make Bali a very popular holiday destination.
There is no effective substitute in Bali, in order to see the island to best effect, for taking a
guided tour. All you have to do is sit and relax and be introduced to the best sights the island has to
offer. Many tours will include visits to The Besakih Temple, which is of huge religious importance in Bali
and covers almost a whole hillside, it is so vast. Another likely destination is Lake Batur, in the
mountainous, volcanic region of Bali, and the views to be appreciated are stunning. The lake sits at the
foot of the active volcano that is Mount Batur. There are also many boat tour options around Bali to see
the island from
a different perspective.
It may well be the case that you choose to relax in Bali on one of the beaches which can be
found in profusion on the island. The food culture of the island is so diverse; however, it is more than
worth sampling some of what it has to offer. Prices vary hugely, from the extremely inexpensive street
stalls to the better restaurants which can be fairly expensive, so care should be exercised. One special
treat to try to take in is a Balinese dance performance, which is afforded at some of the better quality
hotels along with an informal buffet dinner at a reasonable cost.
Brand Image and Recognition
When considering the type of image that will be used to represent the tourism in Bali, the brand
image poses a distinctive yet intangible idea of what the value is that this brand is representing. Our
brand image for Bali is based on the interests of the culture within Bali. Famously known as “Paradise
Island” and the “Island of a Thousand Temples”, we know that Bali is renowned for both its great detail
of hospitality among the locals of Bali, and that they are deeply devoted to the culture fundamentals
that have been around during most of Bali's history.
As a secondary interest to Bali, an objective observation would be the geological site of the
island. The thought of an island can immediately be connected to the attributes of being by open water,
sandy beaches, and tropical nature and wildlife. Such an image already compliments the direct focus of
hospitality in terms of the visual, physical, yet also the intangible feeling of the hospitality on an island.
Through the focus of tourism and all the industries that work hand in hand, such as culinary or retail, our
brand aims to integrate the demographic of customers that will instantly think of Bali's links to
hospitality through the brand image we aim to serve.
Social Responsibility Campaign
Recognizing Bali as one of the largest tourist destinations in Indonesia, their tourism is a
important opportunity for visitors in Bali to recognize the type of lifestyle in Bali's social structure. I
support to the 80% of Bali's economy depending on the source of tourism, our campaign focuses o
strengthening the ability to incorporate a trust between visitors, locals, and the government. Our
campaign provides funding towards the many businesses that continue keeping Bali hospitable among
the countries for tourists. By maintaining a naturally clean and green-friendly environment, while
keeping the tradition of the Balinese culture, we hope to maintain the image that Bali's destination cares
for the needs of the land, and both the visitors and locals alike.
Cultural Considerations
Bali may be small in size – you can drive around the entire coast in one long day – but its
prominence as a destination is huge, and rightfully so. Ask travelers what Bali means to them and you’ll
get as many answers as there are flowers on a frangipani tree. Virescent rice terraces, pulse-pounding
surf, enchanting temple ceremonies, mesmerizing dance performances and ribbons of beaches are just
some of the images people cherish. Small obviously doesn’t mean limited. The manic whirl of Kuta
segues into the luxury of Seminyak. The artistic swirl of Ubud is a counterpoint to misty treks amid the
volcanoes. Mellow beach towns like Amed, Lovina and Pemuteran can be found right round the coast
and just offshore is the laid-back idyll of Nusa Lembongan.
As you stumble upon the exquisite little offerings left all over the island that materialise as if by
magic, you’ll see that the tiny tapestry of colours and textures is a metaphor for Bali itself.
And those are just some of the more obvious qualities. A visit to Bali means that you are in the most
visitor-friendly island of Indonesia. There are pleasures of the body, whether a massage on the beach or
a hedonistic interlude in a sybaritic spa. Shopping that will put ‘extra bag’ at the top of your list. Food
and drink ranging from the freshest local cuisine bursting with the flavours of the markets to food from
around the globe, often prepared by chefs and served in restaurants that are world class. From a cold
Bintang at sunset to an epic night clubbing in Kuta, your social whirl is limited only by your own fortitude.
Marketing Strategy
Major Avenues of Marketing
Advertising
− Radio
− Television
− Internet (YouTube)
Distribution
− Printed Media (billboards, brochures, bus sides,
newspaper)
− Merchandise
− Business Contact
Conference
− Trade shows
− Festivals
− Business meetings
Public Relations
− Official Website
− Social Connectivity (Facebook, Twitter)
− Programs and events
Marketing Budget per year // (Total Cumulative Activities) [estimated]
Advertising
$7,000.00
Conference
$10,000.00
Distribution
$2,000.00
Public Relations
$50,000.00
Total Estimated Budget for Marketing Strategies: $69,000.00
These amounts are contingent to the many factors that are involved in each process. It is
important to maintain an organized focus on keeping amounts updated to the smallest variance, so that
budget amounts do not go into deficit. Generally, our percent of our overall marketing budget should be
from 5-10% of our overall project value, making it a high priority to confirm our communications in
product marketing and profiting from investments.
We expect the Return on Investment to be after we have a minimum break-even or profit out of
the marketing strategy expenses that were used. If that set goal has not been found consistently, for
example a negative trend in tourism affecting visitors, or a market drop in the economy forcing people
to hold onto their opportunity to travel.
Timelines and Return on Investment
Primary timelines to consider:
General public for minors (who must be accompanied by an adult)
ie: Christmas/Summer break, Long-weekends, (statutory) holidays
Cultural events and holidays
ie: Hindu New Year (fluctuates in date)
Low-capacity season
ie: Low amount of opportunities (less turnout of tourists)
The objective for planning ROI is to continuously be prepared for each timeline by solving
weaknesses and capitalizing on strengths and new opportunities. Creating a quarter-cycle timeline
within the year, our expectation is to manage the timeline cycle before and after each quarter timeline
is about to occur.
Communications
Our communication strategy involves our company's ability to provide the image and feeling of
our product. In addition, we look for the inequality of satisfaction that customers may feel they would
like to have improved on. An example may be a detail in a specific experience from a customer, where
we can identify the contingents of tourist demographic, topic of interest, or type of feedback from
where we can further understand the tourism market and utilize customer knowledge.
Communication strategies should incorporate our mission and vision statement
In the form of direct customer contact, this includes (logs of any connectivity networks):
Facebook - comments and feedback, 'likes'
Twitter - tweets, hashtags
Website - official contact information, polls and questionaires
Trade shows/confernces - surveys, brochure printables
External links - referrals, word of mouth, partnership sources
Travel services – TripAdvisor, Facebook’s ‘Check-In’
Advertising
The benefit of advertising and promotional strategies is to create an effective campaign. We
decided to use a logo which is a komodo dragon to promote our mission and vision statement. We are
appealing to the couples market. Both old and young couples want to experience the luxury of exploring
the rich heritage of this land and the excitement of being on the same land where dinosaurs once
roamed. I want to induce our couples to experience the leisure and adventurous side of Bali while still
satisfying their desire to soak up the sun on Bali’s white crystal beaches. Our brochure is designed to
create a sense of romance and the adventure to be found in this beautiful destination. This nation-wide
well known Komodo dragon promotes the adventurous side in this beautiful, exotic and Zen like setting.
The benefit is Bali, as a destination, is easy to promote. Bali has something for everyone to enjoy and
engage in. The main objective of this campaign is to spice up one’s typical tropical vacation with
adventures you can only find on this specific island in Indonesia. I want couples to explore this
fantastically amazing yet interesting land. To ask the question as to how the komodo dragon adapted to
these conditions and survive for all this time without the threat of becoming endangered. Travelers will
be interested in coming to this spectacular island to learn and to satisfy their curiosity as to how the
Komodo dragon adapted to living alongside human beings. I hope to encourage travelers to experience
diverse cultures and to break away from the norm that we usually encounter in our everyday lives.