Strategic Marketing Plan: Tourism Destination - Term Paper Example

Strategic Marketing Plan Student’s Name Subject Professor University/Institution Location Date 1. Tourist destination Peru in South America is the tourist destination for this tourism marketing plan. Peru is a current tourist destination from all over the world. It is situated at the middle of South America’s Pacific Coast, the eastern and central part of South America. This report focus on a two year strategic marketing plan structured and based on recent research, competitive situation and achievable outcomes. It function as the basis for destination market organizations (DMOs) activities for the coming two years and inform the marketing, branding, market and strategy development, services and management functions. The plan analysis the market niche, competition and determines the Peru unique positioning in tourism. Through the set marketing goals tourism is expected to gain a 20% increase in visits and benefits in the next two years (Peru Tourism Bureau ). The goals include the sale services, profits and customer satisfaction. To monitor the results the marketing plan will identify the working strategies through customer responses and tracking the services sales, visitors interacting with the websites and percentage sale to service impressions. To be in a better position to sell tourism services it sets goals for marketing campaign. Marketing efforts are monitored against the goals and objectives by an ongoing evaluation and review of results. Reviewing the campaigns status is meant to ensure continuous improvements of marketing initiatives and future planning. 2. Destination Features and tourist activities The products of tourism in Peru are wide varieties of natural and cultural attractions that suits and motivate visitors from many countries. It is through tourism that Peruvians have preserved their historical, as well as their archaeological interest, colonial architecture, culture and the adventurous natural beauty surrounding the main tourist sites like Cuzco and Chiclayo (LimaEasy, 2012). The main appeals to tourist are the natural beauty ranges from, valleys and volcanoes which has a deep adventure with biodiversity and outdoor natural beauty such as the Colca Valley and Colca Canyon of Arequipa, Titicaca the utmost passable lake in the world with its islands, the famous Amazon river and forests, jungle and parks and the Andean sceneries with snow-capped peaks and white mountain range. Its dozen of rivers more than 600 km long provides tourist with recreational activities. National reserves such as Paracas national and Huascaran Park are a natural world heritage target for watching birds as the succeeding country with bird species in the ecosphere and the nature. According to Landorf, (2009: 62) the most prominent features in Peru are the ancient and magical native cultures, the rich diversity of flora and fauna and other mysteries and surprises discovered in the distinguished country’s cultural heritage of the people. According to Canatur, Peru has been on track of establishing itself and become a world power in tourism. The plan is scheduled in less than 10 years. The two years plan through greater connectivity in international scale and promotion of most important investment a double-digit growth is expected to be registered. Promotion of the products offered such as nature tourism, bird watching, fishing and biodiversity as well as keeping them for the coming years is currently emphasized. In developing tourism the ministry invested ten billion soles in transportation, housing, sanitation and waste management. The set initiatives are oriented to meet the goals of Canatur. The spectacular tourist activities are chores in the parks and the jungle where there are beautiful sceneries and adventure as they also encounter the magnificent diversity of birds and other wildlife. Along with stroll are games in the parks and swimming in the rivers and the seacoast. In the evening, there are the cultural dances in the theatres and cultural halls from multicultural dancers and comedians. There are over three thousand cultural dances every year, which entertains visitors who spend in the metropolitan. . Peru is furthermore a standard tourism destination for exploration seekers and offer exceptional environments for trekking, hiking, mountain biking, and varieties of water-sports like boating, surfing, and fishing. Other tourist with interest of documenting the traditions, ecological as well as archaeological components spend much of their time in the specific grounds writing and documenting (Leask & Fyal, 2006). 3. The Role of Destination Marketing Organizations (DMOS) To sell its services the government through National Chamber of Tourism (Canatur) and Promotion Commission of Peru for Exports and Tourism (Promperu) manage and market its tourism industry (Major, 2012). The targeted and expected customers mainly will come from international arrivals from Latin America as the region has coped with main global crisis. Development of S. America region and economic growth of Peru’s neighboring countries such as Brazil, Argentina and Colombia is expected to impact on the growth of tourism. According to Promperu there was an increase in 14 percent of tourist by August 2011. Development trends in tourism promote Peru reap as the industry utilizes online platforms and e-commerce as major target channels for marketing, branding and improving the experience of the customers. Three-quarters of tourists are engaging with online marketing and brands. The future of tourism will entail the focused companies’ role in global social media. The Peruvian tourist enterprises fields are resulting to use of the website as a latest marketing tool. Peru Destination Marketing Organizations (DMOs) use official brochures and respective Websites as a main marketing strategy. The documented features in movies and tapes are distributed to wider audience for attraction. The travel leaflet has included important information such as tourist map, climate, travel tips and places to tourists’ attractions, food, accommodation and sports. This gives visitors critical orientations in its geographical area of 1,285,215 square km. The tourism organizations send these promotional materials to their consumers when requested. Advertising funds will be spread across a wide destination range. Peru’s DMO’s websites has used the information, communication relationship, and transaction dimensions to realize to realize its effectiveness. Variations exist on website effectiveness and therefore they have embodied the use of promotional brochures. The use of the World Wide Web in this age of information technology has impact tremendously on Peru tourism over the past years (Divino, & McAleer, 2010: 849). 4. The purpose and mission of the marketing plan The goals and objectives of the two years strategic market plan is meant to expand tourism economic development in the destination. It concentrates on developing a community participation and leadership to promote continuous and balanced improvement in Peru tourism industry. The stakeholders are thus brought together in the government vision and goals setting (Brooks, 2008). The DMOs will compile and update visitor profiles and data on economic impact. This will help in strategic assessment of tourism potential and marketing by the use of demand-driven approach. They will conduct facility inventory and attraction for the analysis of tourism competitive advantage. They are also mandated to survey the attitudes of residents on tourism development. The plan has identified the potential projects promoting investment goals and economic development. The implementation stage will embark on project in the economic, social and environmental scenes. The expected increase in inbound tourism determines the role of DMOs in strategic partnerships and alliances. 5. Target niche of the Service- sector Peru charges are affordable for many visitors from all over the world. As compared to other major destinations such as Europe, N. America and Asia the set charges and an array of political stability, climate conditions and varieties of features Peru is at good position for pricing and branding. Price strategies are based on services offered ranging from common to deluxe and therefore customers can select on the suiting travel, accommodation and services packages. Services are positioned for both domestic and external visitors. Through Peru DMOs, awareness of services has taken an international market niches more so the N. America, Caribbean and neighboring countries. From the information you've collected, establish strategies for determining the price of your product, where your product will be positioned in the market and how you will achieve brand awareness. Promotion and market strategies will use network to connect with tourist. Visitors on a tour to Peru and other fantastic destinations the South America regions can consider obtaining a Visit South America Pass. This pass permits unrestricted travel to 36 towns in entire principal countries in South America, such as Brazil, Argentina, Colombia, Bolivia, Chile, Paraguay, Uruguay, Ecuador, and Venezuela. The services created promote convenient travel arrangements around Peru. Visitors Catering carried about by experienced Orient-Express hotels, Cruises and trains. The company helps in arranging travel arrangements with others offering train services such as Andean Explorer trains and Hiram. The multiple packages set in a way to suit and accommodate different tourist and personal needs. All the destinations are supplied with marketing letters, flyers and brochures and this promote dissemination of market plan reaching wide customers in future. The sector has participated in N. America main trade shows as well as press releases and publicity. Web sites are major contributors of Peru tourism promotion strategy. 6. Marketing Strategies, stages and processes Peru tourism growth has gone beyond the target of emerging market niche to a global tourism brand which is aiming to reach the maturation stage. Continuous attendance at national parks has led to claims of a pervasive tourism for nature-based recreation. A global study now suggests that whereas visit rates are declining somewhat in some wealthier countries, in Peru nature tourism is flourishing. Some of the contributing factors to growth of tourism in Peru are a selection of rich historical, geographic and diversity that led Peru to be included on UNESCO's World Heritage List. An improved services system and lower charges compared to other world competing destination. Domestic demand is promoted by indigenous strong cultural appetites for historical sites and products. Peru has been minimally affected by global economic crisis in the last decade. Though tourist from Europe and North America were affected the visitors from U.S rose. This has attracted and continues to attract investments benefiting the industry mostly in areas developed in infrastructure. 7. Budgetary planning To plan on scanty budget the marketing plan has to rely on its internal planning and outsource others through partner and network organizations. The budget plan will reflect, explain and predict the nature and incidences of tourism. It has to consider the spatial contexts and identify the dimensions of the tourist concept. Gretzel, Yuan& Fesenmaier, (2000:76) argues that the success of DMOs in the current economy will be determined by approach change than just technology. a) Communication The change in the new economy promoted by information technology will determine the communication strategies. Therefore, considerations of key partners and competitors as well as the networking with other organizations will increase organizational learning and marketing capacity .Through skills and learning of tourist response, DMOs will understands when and how to structure the marketing communication to gain support and build confidence. Formica & Singh, (2006:73) argues that high congruency levels of picture in promotion media will be promoted. Communicating the current developments and changes is critical having identified the destination position and analysis of service issues. The budgetary management will guide and establish priorities, identify groups and advance their desire to Peru destination. Information on affordability and variety of experiences should target dormant and undetermined customers. b) Management As an engine for development and the increase in people in the industry the plan values management to make tourism a positive force. Poor budget management might cause degradation and the managers, stakeholders and other partners in tourism companies and destinations are making better decisions about tourism. An analysis focusing on main indicators as instrument to improve planning and management brings the information needed by DMOs, at the required time and in a ways that empower them for better decisions (Divino & McAleer, 2010:851). To attain its objective with a minimal budgetary allocation he plan has identified and purpose to attain a good planning, management and control strategy. Despite the lower market budget assigned it is possible to face and resolve the vulnerability that budget may bring in tourism sector. c) Implementation DMOs managers and policy makers in tourism will use practical tools in fostering a sustainable tourism industry growth. The challenge and complexities arising from competitive multinational destination requires an embodied invaluable insights and appropriate responses from managerial teams. The existing governments policies will set coordinate and facilitate tourism marketing. By bringing together the government departments in related areas the DMOs will cooperate into an overarching marketing strategy (Brooks, G., and 2008: 129). To meet the need for planning, managing and control the strategic plan identifies the objectives to be attained.  Ladkin & Bertramini, (2002:86) argues on how Peru government has examined the issues of collaborative approach for tourism planning. Collaboration and planning issues in the strategic plan are outlined in the strategic tourism vision, developing tourism stakeholders, promotion of coordination and collaboration between the parties in tourism; considering the input of tourism industry together with other interested groups in planning; and consideration of an array of constraints. The benefits resulting from collaboration in Peru tourism planning endear it to be considered as a major part in development process of tourism. d) Dynamism Organizational dynamics is important for effective marketing. Promotion, investment and consideration of alternatives strategies in tourism industry in Peru are addressed by comparing themselves with sectors and regions that has higher expense like Europe and exploring the Asian markets. In case there is a sense of disadvantageous change with a strategy the DMOs will modify some aspects to regain some lost efficiency. Formats that are employed and preferable in the marketing process might be haphazard, or through trial-and-error approach and might produce unexpected results. New and old techniques are to be constantly considered to apply the best one in the process. Additionally, the marketing strategy will implement changes in the blurring structure and set distinctions for influencing, managing and policy making. A combination of marketing variants is intended for quantitative outcomes through the use of different attraction elements. The strategic marketing plan mission statement has stated and analyzed key regions which contribute to its market. In strategic plan the services have been demonstrated and depict the industry size and major brands in terms of features, diversified attractions and biodiversities of Peru as a tourist destination. Distinct services proportions are outlined. It will guide the competitive intelligence for tourist market leaders ,track the key industry opportunities, trends and threats and inform the marketing, branding, developing strategy, market and services supply functions. 8. Competitive-advantage SARS outbreak in Asia will increase Peru competitive advantage. Asia will reduce its marketing initiatives that challenge Peru tourism marketing strategies. There will be little conflict in competition and therefore it is possible to utilize a political focus and dimension and interact in a political game that will influence the tourist to opt for Peru. Through the headquarters and executives DMOs will enhance their interest- based strategies and apply direct interference mechanism and indirect exploitation of their marketing niche. According to World Tourism Organization, (2004: 516) tourism is a global competitive industry and destinations have to deal with the competition issue. Since there is an overlapping tourism services, markets and travel technologies, Peru competitive position in tourism is affected significantly by Asia which is at the same competitive position. High co-ordination, configuration and integration of activities will get and appeal to consumers. By concentrating the dispersed activities to the Asian core marketing regions it is possible to reap the benefits and take advantage of SARS outbreak, by getting that tourist interested in Asian destination. The DMOs will enhance their marketing strategies to seek the apparent competition advantage. Calculative international configuration and coordination will increase benefits. 9. Challenges and Constrains There are activities that greatly damage Peru image in international tourism destination. Changing the habits is core to benefit tourism. The challenge that is being resolved is unregulated phenomenon in the industry that puts tourism at high risk. According to Mitchell & Reid, (2001: 126) informal activities in the tourism and travel industry and non-regulated services in accommodation, travel agencies, transport, tourist guides and attractions need to be resolved. In the transport robberies and accidents that involve visitors requires stern regulations and control in the industry urgently. The guide system need more improvements as currently use of visit guide, and three categories of guide identified such as university graduates, others with job-related training, and inexpert local guides' from the resident native population living immediate to the archaeological sites need to be diversified. According to Ochoa, (2000:10) there was 74% uncategorized accommodation in 2011 in Peru. This trend is prevalent in budget outlets and luxury hotels. Standards and control organizations are needed for the outlets to adhere to better services provision. However, to boost the domestic tourism PROMPERU regularly advertises and campaigns in order to fuel travel. Planning for tourism in the entire country will distribute the concentrated traveling and tourist activities in a specific destination. To promote the average spending per trip accommodation spending must be enhanced. Tourism industry has developed online information on airlifts, main tourist attractions and hotels of Peru and therefore, most tourists plan their vacation in Peru with them. With 15 tourist info centers all over the country, tourists efficiently solve any difficulties they may come upon. The industry has a working hotline in Lima, to offer all appropriate information on travel and service sector in Peru. 10. Managing Complexities Peru’s tourism industry is growing due to improved frequency of airline trips and significant events. Most tourists who spend relatively little time will use wildlife service’s air jets in the parks but the greater percentage will use the road transport comprising of the vans and private taxi. Buses are also modern and comfortable for the long journey. Railway services are a means used though for a smaller percentage. Conversely, the work of strengthening the train route Cusco – Machu Picchu will help to contract more tourists to this outstanding destination. The transport system is extensive with companies of taxis, buses and minivans that will enhance the service from the airport Cusco Machu Picchu: City of Cusco. The airport is 3.7 km from the city that reckons on the main tourist attractions and gets national and international expeditions. It is the main port of entry to come at the Machu Picchu ruins. To make it feasible domestic flights only receives an airport tax of roughly $ 6 USD. Visitors arrive here and spend in the near facilities in the museums, Cuzco which is 3 km from the airport as they wait to move to other distant parks and reserves. The rooms and suites, Lounges and resorts in and along the tourist routes facilitate timely and convenient accommodation. Private sectors also will build convenient restaurants and bar as structures for stoppage as they guide the tourists. Portable tents modernized caves for leisure and activities as well as enhanced treetops houses serve visitors in the entourage in the vast reserves and parks (Mitchell & Reid, 2001: 117). Reference Brooks. G, 2008. Managing tourism congestion at World Heritage Sites - maximizing the quality of the visitor experience. In Sustainable tourism management at world heritage sites enhancing interagency and stakeholder coordination for joint action International Conference Huangshan China 2427 March 2008. World Tourism Organization (WTO), pp. 125-144. Divino, J. &  McAleer, M., 2010. Modeling and forecasting daily international mass tourism to Peru. Tourism Management, 31(6), p.846-854. Formica, S. & Singh, N., 2006. Level of Congruency in Photographic Representations of Destination Marketing Organizations’ Websites and Brochures Level of Congruency in Photographic Representations of Destination Marketing Organizations’ Websites and Brochures. Journal of Hospitality Leisure Marketing, 15(3), p.71-86. Gretzel, U., Yuan, Y. & Fesenmaier, D., 2000. Preparing for the New Economy: Advertising Strategies and Change in Destination Marketing Organizations. Journal of Travel Research, 39(2), p.146-156. Ladkin, A. & Bertramini, A., 2002. Collaborative tourism planning: a case study of Cusco, Peru. Current Issues in Tourism, 5(2), p.71-93. Landorf, C., 2009. Managing for sustainable tourism: a review of six cultural World Heritage Sites. Journal of Sustainable Tourism, 17(1), p.53-70.  Leask, A. & Fyal, A., 2006. Managing World Heritage Sites, Elsevier/Butterworth-Heinemann. LimaEasy. (2012, 03 09). Historical Building in Lima. Retrieved 09 07, 2012, from LimaEasy: http://www.limaeasy.com Major, B. (2012, September 4). Travel News. Retrieved 09 07, 2012, from Travel Pulse: http://www.travelpulse.com Mitchell, R. &  Reid, D., 2001. Community integration: Island tourism in Peru. Annals of Tourism Research, 28(1), p.113-139. Ochoa, J., 2000. Tourism and nativistic ideology in Cuzco, Peru. Annals of Tourism Research, 27(1), p.7-26. Peru Tourism Bureau. (n.d.). Retrieved from http://www.visitperu.com World Tourism Organization, 2004. Indicators of sustainable development for tourism destinations. A guidebook. Tourism, p.516. Read More