Strategy and Implementation Summary
Initially Sephats Tours will focus on the local market in the adventure travel sector. The target customers will mainly include foreign tourists intending on sightseeing various attractions. We are a relatively new company on the market and hence must focus on certain kinds of services with certain kinds of clients. Initially the business will focus on the loca
l market, expanding into the regional market as time progresses, and as we gain the necessary experience. Therefore the initial aim will be to instill awareness and confidence in our services. In order to achieve its goal of becoming the premiere mobile operator, Sephats intends to adopt the following strategies:
Establish Sephats reputation as a differentiated, specialty provider of city/ adventure travel and excursions. This will be accomplished through a diverse marketing communications programme directed at Sephats target market, utilizing various media as well as the establishment of strategic allies. Provide unparalleled service to the tourists, local and international, of Botswana in order to gain repeat business and build trust. This will include providing superior service in all phases of the transaction, including timely follow-through. Aggressively promote excursions as healthy, eye-opening and exciting activities with those who participate in them as appreciative of the finer things in life. We intend to build image and awareness through consistency and distinctiveness in our service provision. Our strategy is to grow the business by nurturing clients, differentiating the service from our competitors, particularly through service and staff behavior. All criteria from customer satisfaction, service provision, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages as areas for improvement. Alliances and collaboration with hotels, lodges and travel agencies are to be adopted as strategies for market pe*******on. Training will be conducted on a regular basis to ensure that our staff is fully meeting customer expectations. Through the implementation of a fair, effective and competitive remuneration policy we intend to optimize our human resource output and advancement. We need the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows - a mutually beneficial relationship. We are currently vigorously searching and recruiting the right people for our organization.
5.1 SWOT Analysis
We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timeously to the market dictates and to provide custom designed travel excursions to travelers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travelers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.
5.1.1 Strengths
Diversified client base: This will reduce our dependency on one particular market. Combination of skills in employees: The directors intend to engage well-qualified and experienced employees to jointly develop business strategy and long-term plans, so as to attain company objectives. Extensive advertising and marketing: The company will undertake extensive advertising and marketing, promoting both its name as well as service/product awareness. Hence an aggressive and focused marketing campaign with clear goals and strategies shall be one of our mainstays.
5.1.2 Weaknesses
Lack of a reputation in comparison to our competitors. This is due to the fact that we are still new on the market. However this shall be addressed as shown in the marketing section of this plan. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the organization. A limited financial base compared to the major players in the industry. Lack of clear strategic allies.
5.1.3 Opportunities
Current drive by government towards encouraging the participation of indigenous entrepreneurs in tourism presents an opportunity which we may fully utilize. Current growth rate of tourism presents an opportunity for ourselves which we may take advantage of. This is further supported by the current marketing campaigns by both the government and regional tourism body, the Regional Tourism Organization of Southern Africa - RETOSA, aimed at promoting tourism into the region. Presently there is no reliable public transportation company to take tourists to areas of interest. International tourism trends indicate that today's traveler wants a more enriching experience than that provided by conventional 'sun and sea' vacations.
5.1.4 Threats
The present growth in the tourism sector may result in an increasing number of firms entering the market. This may led to increased competition emerging from a variety of given sources including:
Established travel agencies, hotels and lodges may look at the development of new lines and vertically integrate transportation so as to provide additional services to clients. New marketing strategies and tactics by established companies aimed at providing excursions of our intended nature. Existing competition. Other start-up travel companies generated by healthy nationwide economic and tourism growth.
5.2 Marketing Strategy
One core element of our strategy will be that of differentiation from our competitors. In terms of marketing we intend to ensure that our name and services are marketed on an extensive basis so that customers are aware of our existence. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Our service marketing will strive to ensure that we establish long relationships with clients. Marketing Expenses
Initial marketing and training expenses will be relatively high as we seek to become known on the market and staff get trained in the professional provision of our services. This will be brought about by the development of sales literature and advertising expenses. As our market share increases and capital is generated, further marketing programmes and the expansion of those in existence at the time will be undertaken, to ensure market development. However with time these programmes will start generating revenue for the business, which we shall in turn reinvest.
5.2.1 Pricing Strategy
Sephats Tours will be competitively priced in relation to the dictates of the market. Due to the introductory nature of our services we intend to implement a pe*******on pricing strategy which will ensure that potential customers are not frightened away by our prices, up until our services are appreciated and fully operational. However this will dictate that our costs are prudently kept so as to ensure our financial goals come to fruition. This is reflected in our prices as stated in the services description of this plan charging close to PX per kilometre per person. Each trip will include an average of eight to ten persons. We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to our employees to assure good service are balanced by the cost we charge to the customer.
5.2.2 Promotion Strategy
This strategy will be based primarily on informing potential customers of the existence of our services and making the right information available to our target customer. The intention will be to highlight the benefit of utilizing our service(s), which will include:
Access to exclusive travel destinations
Service to fully appreciate destinations through information packages, and not just sight-seeing
Access to special interest travel according to the groups preferences
In such a market we cannot afford to appear in or produce second-rate material with poor labels that make our services look less than they are. Hence we intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and pads. We intend to spread the word about our business through the following:
Advertising: This shall be undertaken through trade and industry publications, which are read by tourists, as well as the local newspapers. A constant look out will be made of any special editions in the local newspapers, which may provide an opportunity for us to advertise our services and business name. Sephats Tours will also be advertised through professionally done brochures, and other such sales literature, which allow enough detail to be communicated about the services offered by the company. This literature will be mainly targeted at potential clients and placed or made available at strategic points, such as travel agencies. With time we also intend to utilize billboards to advertise ourselves, likewise located at strategic points. Hence we intend to design and put up posters communicating the services we provide located around hotels, lodges, airports and other such areas where tourists typically pass by. However in doing so we always intend to obtain the consent of the respective authority. Personal Selling: Undoubtedly customer solicitation face-to-face will be a powerful form of promotion mainly due to the fact that its flexibility will enable us to match the customer's needs to specific attributes of our services as well as giving concise details of what we have to offer. Another important determinant in utilizing personal selling is the fact that we are relatively new on the market. As such, potential customers/clients will, to a certain degree, be skeptical towards the intended service(s) and how they are able to benefit from them. In cases where the opportunity of obtaining a large order exists it may be necessary for the top management to go out personally, especially considering the fact that we are still a relatively new firm on the market. However this shall be the situation in the majority of cases due to our relative infancy. Direct Marketing: This will be used but only to a limited extent in the form of telemarketing and informing potential customers and obtaining referrals where possible. In the case of telemarketing it will involve our targeting potential customers of our services and informing them of our existence and destinations. We may then arrange for an appointment with the respective decision-maker, with the intention being to lure them into utilizing of our services. Events: These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to promote itself through attending trade shows and expositions. Not only will these increase awareness of our services and business name, but also enable us to interact with potential clients who may decide to utilize our service. Trade shows that come to mind include Botswana International Trade Fair (BITF) and BITEC. Internet Marketing: The increasing growth of the Internet as an information source provides an opportunity for ourselves that we may exploit. This is particularly so in view of the increasing dissemination of information over the World Wide Web, as individuals and groups look at obtaining the best deal possible. More often than not these individuals and groups seek out information over the Internet due to its relatively low cost and ease of use helping to minimize time wasting. However this will require adequate planning so as to ensure that all information on the website is accurate and up-to-date, ensuring we market a professional image. This will mainly serve foreign tourists and other interested stakeholders. In all the above we intend to communicate our ability to deliver a good service that will satisfy the customers needs. Hence our messages will influence the engagement decision of prospective customers by emphasizing our customer focus and, persuade prospective clients that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in tandem so as to maximize their effect.
