Assignment advice and purchase the most enticing travel packages

Assignment 1

 

For all answers please provide
references.  Check Harvard Referencing
criteria for further information.

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PART A

Choose a company
that you know or/and you like. Visit its website and answer the following
questions:

Provide a brief
description of who they are and what they do.

 

TravelBird

According to TravelBird:
https://jobs.travelbird.com/ “they a
travel agency based in Amsterdam who are driven by a continuous pursuit of
delighting their customers with enticing travel offers and disrupting the
travel industry. They bring inspiration, personalization and freshness together
by curating their own travel packages as well as selling those of others.”

 

 

QUESTION 1

Identify the company’s business portfolio.
Categorize its products/services based on the Boston Consulting Group matrix.

TravelBird offers services based on
5 products in 82 countries across the world; 32 countries in Europe, 17 in America
(including North and South America), 9 in Africa, 22 in Asia and 2 Ocean
(Australia and New Zealand). Each country has a unique travel package to
various destinations, attractions and activities grouped in to 6 categories;
weekend getaway, city trip, holiday resort, wellness, restaurant, zoo and
experience. They get the best rates based on air fare, accommodation and, or
activities. They have a customer service center that is readily available to
help their customers who have various questions and concerns about the packages
in 6 different languages. TravelBird has a strong social media presence on
Facebook with 884,592 page likes and 883,955 followers and on Instagram with
30.6K followers enabling their customers to tag and post pictures of the
destinations they have traveled to with bookings made via TravelBird. The
social channels are full of compelling images that are inspiring, personalized
and fresh just as their company objectives state. They use the social channels
to post offers and mostly engaged their followers both previous and potential
customers on various tips, tricks, facts or adventures across the countries
they offer travel packages.

TravelBird employees are from all
over the world. Some, if not most are from the countries they offer various
travel packages who are there to help the customers select, advice and purchase
the most enticing travel packages for the available countries. This makes it an
international work environment just as the services offered are.

 

We shall use the 5 products:
Europe, America, Africa, Asia and the Ocean to create a BCG matrix and using my
best judgment, I shall allocate resources, as a percentage, for each SBU –
Strategic Business Unit making sure that the total is 100 percent.

 

Stars: These are the market leading
products for TravelBird: America and Africa. These are the two most traveled to
continents by Europeans at any time of the year booking under the categories
holiday resort and experience. 40% of resources allocated

Cash Cows: they hold a dominant
position and generate lots of profit to the company: Europe. This is because
they are based and well known across the continent for their great travel deals
and packages enabling great and affordable travel experiences within European
countries. TravelBird books Europe under all 6 categories. 15% of resources allocated.

Dogs: Oceans, because of its
distance and expensive economy, not many people make bookings frequently to
Australia and New Zealand. Compared to the other four, it is unlikely to
compete at their pace. 10% of resources allocated.

Question Marks: Asia. The only
reason Asia is a question mark is because it is the go to paradise for
backpackers. Considering TravelBird doesn’t offer packages for backpackers and
in their nature backpackers are always in need of the cheapest packages, they
perform bookings for themselves. The number of customers who book to TravelBird
to travel to Asia aren’t as many as the other continents although Asia is a
desired destination in the world. 35% of resources allocated.

 

 

 

 

 

 

 

 

 

 

 

 

 

QUESTION 2

Complete an analysis of the
environment the company works within.

Include:Macro
environmentMicro
environment

TravelBird works within both the
micro and macro environments. The company is made up of top management,
finance, human resources, accounting and marketing departments. The marketing department works closely with the other
departments to help TravelBird understand and create customer value. TravelBird
sells its own travel packages but also sell travel packages from other sources.
These sources enable TravelBird to have a wide variety of packages available to
most of the customers needs. This not only narrows down the competition for the company, it also
sets them apart from other Travel Agencies. They collaborate with many others
who offer affordable packages and formulate a plan to enable entice the
customers. They focus strongly on their customers:
who have various channels: email, phone services and social media to enable
them either ask questions, give comments or suggest various ways to enable the
company to improve its services and always deliver what they promise. They also
create a suitable environment for their employees
to work in to enable their best at work. They offer their employees free
healthy lunches, boot camp, a Mac Book computer, drinks and dress up events as
well as discounted prices for any package they are interested in booking via
TravelBird. This in return ensures they deliver their best work and help the
company achieve its objectives.

 

The travel packages on TravelBird
range in prices depending on the type of booking within their 6 categories.
They target everybody: from couples, students and families and have various
packages that suites the needs of each whether it is a short weekend gateway,
city trip on foot or in a vehicle, a wellness retreat or a Safari, they have it
all. They offer various discount prices on certain trips at certain times of
the year (the low peak seasons). During low peak season such as January, not
many people travel because of the recent holiday therefore many discount offers
are made available on short trips to nudge customers to spend on a trip. Yet in
times such as Valentine’s Day or Christmas, many couples are booking weekend
gateways or family holidays and therefore prices are higher than usual for both
flights and accommodation. TravelBird is keen on recycling of materials used by
employees in the office and keen on serving healthy food to their employees.
TravelBird employees use MacBooks, one of the most powerful computers in the
market, and is keen on every employee owning one in such that whenever they
hire a new employee they are handed a MacBook. This is because all the work
done in TravelBird is done online. From the bookings to the financial
transactions. They keep current on technology and have an I.T department
designated to update, maintain, help and generate new ideas in technology. The
cultural environment in TravelBird is diverse. Ccoring to TravelBird, According
to TravelBird: https://jobs.travelbird.com/
“They are an international team that hire employees from across the world.”
This enables for a common ground regardless to be the company where they can
share their views of society, nature, themselves and others in order to facilitate
the best packages and best transactions of global customers.

 

Create a brief analysis of how you
believe this company is responding to the marketing environment i.e. positively
or negatively and reasons to support your thoughts.

I think TravelBird is reacting
positively to the marketing environment. As a company that is fully based
online and relies on the internet for its bookings, you can tell that they have
already gathered quite the audience by viewing their social media channels.
These channels are not available only to show case their products, it gives the
customers a voice and an ear to be heard by either rating the company well or
poorly depending on services received as well as having an open channel between
the customer and the company. By selling other travel packages other than those
curated by themselves, it shows that they support their competitors to give the
customers the best available experience through them. This shows that the
company is customer driven and focused on delivering the best services
available.

 

 

 

 

QUESTION 3

Choose a
specific product/service that the company offers. Now you want to find out what
customers think about your product/service and how it compares to your
competitors. Prepare a customer satisfaction questionnaire. Minimum 5
questions.

The product
Africa has a selection of 9 countries. One of the countries is Kenya. There is
a travel package offered to take a safari. The travel package includes:

1 night in Crown
Plaza Nairobi incl. Breakfast

    1 night in Kibo Safari Camp. full board

    1 night in Ngulia Safari Lodge full board

    1 night in Voi Safari Lodge o.b. full board

    6 nights at Amani Tiwi Beach Resort. half
board

    5 safaris (including all entrance fees for
Amboseli, Tsavo West and Tsavo East)

    English speaking driver / guide

    And a return ticket to Amsterdam

The price of
this package is 1.979 euros per persons

 

The greatest
competitor would be a travel agency located in Africa where you could book this
trip and maybe at a cheaper or at the same price and for the same period.
Through africatravelresource.com, the packages seem more expensive but more
exciting. This is what a package of 3997 euros per person comprises of:

4
days visit to the Maasai Mara, Kenya

5
days stay in Zanzibar, Tanzania.

This package
allows you to spend 4 days in one game reserve to have the ultimate safari
experience and after takes you to a paradise island of Zanzibar with glorious
beaches in Tanzania to enjoy 5 entire days at the beach but at double the price
TravelBird offer.

The package
however includes more exciting activities such as:

paid
park visits vehicle
for the safarisailingballoon
safari across the Mara divingswimming
with dolphinskayakingnight
safarisnorkelingtown
tours and village visits

Africanresources.com
covers all of the accommodation and interconnecting
transport costs it however does not cover air fare.

 

For this
customer satisfaction questionnaire, we shall focus on 4 main questions:
experience, package activities, distribution of package activities and
destinations.

 

Kindly
rate your Kenya Safari experience with TravelBird. (1 as least
satisfactory and 5 as very satisfactory)

1          2          3          4          5

Would
you book a safari with TravelBird again?

Yes                                          No

Please
give a reason why

……

What
did you like most about this package?

o  
Price of the package

o  
Included flights

o  
The game reserve you visited

o  
The hotels included in the package

o  
Duration of Stay

TravelBird
has two separate packages offering travel and safari in both Kenya and
Tanzania. Would you have preferred a visit to both countries?

YES                                        NO

Which
of the following would you pay for 1000 euros more (please pick a maximum
of 3)?

o  
Balloon Safari over the game reserve

o  
Snorkeling

o  
Kayaking

o  
Surfing / wind surfing

o  
Historic town visits with a guide

o  
Bungee Jumping

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUESTION 4

Consider a
business that you manage or that you would like to launch, and one of its
specific products or services. For this product or service, you are required
to:

The business
I have chosen is our family business based in Nairobi. It is called Barons
Hostel The hostel provides the main service of housing backpackers or anyone
else in need of affordable accommodation for short or long stays when traveling
through Kenya and passing by Nairobi. The business not only provides accommodation
but has the option of breakfast, lunch, and dinner available at a separate
price as well as a bar and restaurant, games, discount on nearby attractions and
swimming pool facilities available to the guests.

a)     
Suggest how to segment the market;

Geographical segmentation: The hostel is located in the center,
Nairobi. This is a great location because Nairobi is the beginning and end of
most destinations using air travel within the country. It is located in a
suburban neighborhood in Karen area, that makes it easily accessible to
transport facilities, restaurants, attractions and a beautiful natural
environment that is both scenic and peaceful.

Demographic Segmentation; our business shall be targeting the
millennials. The ages of 21-30 who have a decent amount of income to spend and
are traveling across the country and continent, with a backpack. It is targeted
to both male and female travelers.

Psychographic Segmentation: The hostel shall have various packages
suited to fit every lifestyle of travelers between the various ages. There 6
double rooms (either twin bed or single bed) available to couples who are
traveling together or friends traveling together who prefer a separate room.
The room is fitted in with a separate bathroom and toilet as compared to the; 4
other available rooms fitted with 12 bunk beds. 2 rooms are open sharing to
both male and female who do not mind sharing with other travelers and the other
2 rooms: 1 room for males only and 1 room for females only fitted with 8
separate showers and toilets each for those who are more comfortable sharing
with the same gender. The hostel is very safe and accepting of solo female travelers.

Behavioral segmentation: because backpackers do not tend to visit a
place more than twice, we rely fully on providing the best customer experience to
promote word of mouth. We provide the best quality services and market the
products in such a way that it attracts new customers whose needs are fully met.
We issue surveys and questionnaires at the beginning and end of every stay to
help improve our customer satisfaction and add new improvements to the stay of
the next guests. The hostel is likely to receive a lot of bookings during low
peak seasons but this does not stop us from keeping the hostel open throughout
the entire year for bookings made by students within the country who take short
trips between semesters and seek affordable accommodation as well as the
occasional loner traveler who is seeking a spiritual path.

b)     
Select the target market(s) to go
after, keeping in mind segment size and growth, structural attractiveness, and
probable company resources;

Differentiated marketing strategy: Barons Hostel offers accommodation based
on 4 services: double rooms, female only rooms, male only rooms and shared
rooms. Most of the travelers that book accommodation either choose female only
or shared rooms. This however does not mean that the double rooms are never
used, in fact 80% of couples use the double rooms and 20% of female who travel
in pairs opt for the double rooms. The male only rooms are occasionally used
and preferred by Christian travelers considering we are the only hostel that
offers this service. If we target the market based on each individual set of
rooms offered, we shall be able to sell the services at a better understanding
of our customers. Solo female travelers are always in need of an environment that
shall be safe and accepting to them and respect their privacy, Christian male
travelers are not always comfortable and accepting to share rooms with females,
most travelers have no problem sharing among each other so long as they can
have their privacy and their belongings are safe. Couple travelers always worry
that there shall be no room for them to share their stay together without interference
of others. Separate offers shall be available for each of the targeted market.

c)     
Choose your positioning and
differentiation strategy;

Barons hostel aims to
provide accommodation of high quality and service but at an affordable price. Motels
tend to provide anybody with accommodation at the cheapest price available however,
Barons Hostel aims to give priority to cleanliness, quality, décor, and activities,
to have our guests make the most and remember the experience they had, most
importantly felt during their short stay. Our hostel is in the suburbs
surrounded by nature which is important to us to enjoy a peaceful and calm
atmosphere. With bonfires that happen every weekend we encourage talent: music:
in forms of live bands, solo acts, DJs, plays in form of acted theatre, and all
and other artistic talent to either perform or gather around and share stories
of heritage and experiences. This is to create an atmosphere of connecting and networking
which in turn leads to inspiration. Our brand “inspire your stay” is aimed to provide
inspiration not only to creatives but everyone else who is in need. Barons
Hostel positions itself to provide “more for the same”. The price range of
accommodation is valued at the same price as most hostels in the city, only
difference is we offer more in terms of atmosphere, experience, stylish décor,
and value.

d)      Draw
a positioning map;

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Luxury
Hotels

Barons
Hostel

Other
Hostels

Motels

 

e)      Write
a positioning statement.

“To backpackers and
travellers in need of affordable accommodation, Barons Hostel offers
inspiration and peace in a natural environment among trees, a lake and twice a
night bonfire to promote talent as you receive the best experience and value
for your money throughout your stay.”

 

 

 

 

 

 

 

 

 

 

 

QUESTION 5

Analyze the latest version of the company’s
produce or service, identify the three levels of the product/service. Discuss
the brand strategy that the company has for this product, including brand positioning,
brand name selection and brand development.

The latest version of Barons Hostel
service is renovation of the shared rooms to be fitted with bunk beds each with
an individual cubical that have curtains to be drawn to assure the guests
privacy.

Core Customer Value: Barons Hostel
is aimed to provide accommodation in an inspiring, peaceful and calm environment.

Actual Product: Barons Hostel enables
guests pay for rooms, either shared or private to enjoy short and long stays as
they travel and move within the country. The hostel and rooms are styled and decorated
to enable a peaceful and calm mood based on color choices, scented candles, art
work on the walls and most of all, as many open windows as possible to bring in
natural light as well as have sight of the nature in its surroundings. The bunk
beds have recently been designed in a cubical to have guests have their own
privacy. The cubicals are fitted with charging outlets, two lamps and drawers
to create the illusion of a single bedroom and allows the guests to be more
comfortable sleeping among many others.

Augmented product: Alongside the
rooms, Barons Hostel accommodation is accompanied by activities and services
disposable to the guests: bar and restaurant, swimming pool, meditation and
yoga classes, bonfires, events by guests or locals and discount prices in
nearby restaurants, museums and parks. It is surrounded by trees and flowers
that pave the way to the reception and rooms, has a man-made lake within its
compound where bonfires and events are held and is surrounded by animals such
as birds, dogs, ducks in the lake and tortoises to really bring about the
natural but beautiful environment. As soon as a guest is booked in, we offer
three surveys they fill online or in person that help us improve our services
and give the most customer satisfaction. When they sign in they are given a
questionnaire to rate how easy the process was whether booking online or in
person, to rate the service they received while booking and information
available as to whether they understood it easily. As well as what could be
done to improve the quality of service and customer relations. As they leave,
the fill out a questionnaire and survey rating their stay, their rooms or beds,
stating what they liked most and what could be improved about their stay. This
questionnaire is aimed to always put the guests needs first and have us collect
information as effectively as possible in order to guarantee the best, most
comfortable, affordable and memorable experience.

 

PART B

QUESTION 6

a)      A
food processor manufacturer has the following costs and expected sales:

Variable cost =
$16 per unit

Fixed cost =
$700,000

Expected unit
sales = 50,000

What is the unit
cost? $30

 

b)      A
reseller buys a product from a manufacturer for $50 and wants to earn 30% on
the sales price. What will the price be? $71.43

 

c)      What
is the break-even volume for a company with fixed costs of $45,000, variable
costs of $15 per unit, and a price of $25 per unit? 4,500 units

 

d)      The
same company (with fixed costs of $45,000, variable costs of $15 per unit, and
a price of $25/unit) wants to make a profit of 100,000. How many units should
it sell to achieve that profit goal? 14,500 units

 

BCG Matrix

How to use the BCG Matrix model

Principles of Marketing (Seventeenth Edition) P. Kotler,
Gary Armstrong