Strategy and Implementation Summary

Initially Forty Travels SA focused on local clients. Now we have broadened our target market and we have clients locally as well as internationally.

Our marketing strategy emphasizes focus. 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 focused on the local market, expanded into the regional market as time progresses, and as we gain the necessary experience. Therefore, the initial aim will be to instil awareness and confidence in our services.

Our strategy is to grow the business by nurturing clients, differentiating the service from our competitors, particularly through service and staff behaviour. 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 penetration. 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.

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 packages to travellers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travellers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.

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.

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. 

Opportunities 

• Current growth rate of tourism presents an opportunity for ourselves which we may take advantage of.
• International tourism trends indicate that today’s traveller wants a more enriching experience than that provided by conventional ‘sun and sea’ vacations. 

Threats

The present growth in the tourism sector may result in an increasing number of firms entering the market. This may lead to increased competition emerging from a variety of given sources including: 

• Existing competition. 
• Other start-up travel companies.  

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. 

Pricing Strategy

Forty Travels SA 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 penetration 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.

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. 

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 ones preferences.  

We intend to spread the word about our business through the following: 

1. Advertising: This shall be undertaken through various publications, which are read by tourists, as well as the locals. 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. Forty Travels SA 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. 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 authority. 

2. 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.
3. 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. 

4. 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 road 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.

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

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 so as to maximize their effect.

Positioning Statement

Forty Travels SA intends to offer a unique service to all of its clients, so as to position itself as the premier travel provider in Durban. Travels will be tailored to the individuals’/groups’ interests and thus providing enjoyment and satisfaction. Our competitive advantage is that our clients needs are fully met and our friendly staff who shall go at lengths to ensure the customer is served and fully satisfied.