Académique Documents
Professionnel Documents
Culture Documents
GP Margin % 16 15 13 11
NP Margin % 3 2.9 2.1 1.8
% Growth in Turnover 20 11.11 10
Financial A n alysis
25
•NP Margin – Declining
20
GP M a rg in
15 N P M a rg in
•Growth Rate in terms of volume –
declining
%
10 Tu rn o ve r g ro w th
V o lu m e g row th •
5
•
0
1992 1993 1994 1995
year
COMPANY
ANALYSIS
Financial analysis – customer analysis
1992 1993 1994 1995
•Volume and T/O per customer rise, but NP,GP per customer decline. (as no Operating costs are
included in those figures)
•
•GP per customer figures are more accurate than the NP per holiday maker calculations; as
NP includes other expenses such as income tax, finance costs and other general admin costs,
that are not directly attributable to the holiday makers.
• COMPANY
• ANALYSIS
Financial analysis – customer analysis
(snap shot)
250
200
GP per custom er
value per customer
150
NP per custom er
100
Turnover per
custom er
50
0
1992 1993 1994 1995
ye a r
COMPANY
ANALYSIS
Value chain analysis for SCA
Infrastructure
Web based infrastructure
HR Management
•Training aimed at customer satisfaction and service quality
•Change management
n
Margi
Technology
•MKIS ( on-line reservation system and customer DB)
•CRM system
Procurement
•Value added services
n
Margi
Inbound Operations Outbound Sales & Marketing Services
logistics Customized logistics Aggressive sales of Creating CLV through
Strategic products in Internet and web packages , and building relationship
alliance with premium based to loyalty programs marketing and
Airlines, hotels prices eliminate continuous follow-
and resorts intermediary cost ups
COMPANY
ANALYSIS
Customer analysis
Segmentation Grid
Age < 25 25 - 37 38 - 60
Socio – economic Class A B C1 & C2
Benefit Sought VFM Customized Experience
Frequency (per Year) High Medium Low
Lifestyle Part of Life Occasional Once in a life
time
Number of Holiday Individual Couple Family / Group
Makers
Type of Holiday Adventure Relaxed Tour based
Product Offering Safari Beach Golfing
Skiing Ballooning Eco
The current customer profile
CUSTOMER
ANALYSIS
Customer Profiling
Target Audience Characteristics of Target Audience
CUSTOMER
ANALYSIS
Factors to consider Segmentation
Factors Segmentation Type
CUSTOMER
ANALYSIS
Targeting
Age < 25 25 - 37 38 - 60
Socio – economic A B C1 & C2
Class
Innovators Innovators + Occasional Travelers
Occasional Travelers Relaxation Seekers
Lazy Days - Positioning
Service
customization
Customize
d Desired
Position
Semi -
customize
d
Current
Positio
Generic n
Service
offering
Local Regional Global
CUSTOMER
ANALYSIS
External analysis
Market analysis
Porter’s Five Forces Analysis
MARKET
ANALYSIS
Porter’s Five Forces Analysis
Bargaining Power of Customers – HIGH
ü Several options available to customers within the leisure industry
ü Easy access to information - Internet
ü Tightening discretionary spend
ü Customers are asking for more for less price
ü Low switching cost
ü
•
• MARKET
•
ANALYSIS
Porter’s Five Forces Analysis
Threat of New Entrants – HIGH
ü Commoditization
ü Low entry cost
ü Availability of New Markets ( N. America, Asia etc.)
ü
•
MARKET
ANALYSIS
Competitor profiling
Wide
Global Holidays
Range of holiday packages
Travel Leisure's (pvt) ltd
Lazy Days Holidays
Limited
High Low
Customer focus
MARKET
ANALYSIS
Competitor analysis
MARKET
ANALYSIS
Strategic options and objectives
Objectives for sca
Corporate objective
Turn over increase by 50% by next 3 years
Marketing objective
Market share increase by 45% by next 3 years
Customer life time value increase by 45% (CRM)
Marketing functions
IMC – to increase awareness level internally and adapt to change to
strategy
Aggressive sales strategy to market new packages.
STRATEGIC OPTIONS AND
OBJECTIVES
Differentiation strategy
Multiple Niching
üLazy days to adopt MarketNicher Strategy to compete against it’s
competitions establish the competitive over their competitors.
üAs Lazy Days will be attacked by larger firms once they notice the niches
are successful, Lazy Days to focus on MULTIPLE NICHING
STRATEGY.
“[A] firm should `stick to its niching’ but not
•
•Market skimming pricing for mass crowd
•Promote skiing packages for both peak & off peak seasons
rican destinations
ed product offerings ( Innovators, Relaxation seekers, Occasional travelers)
arefully selected for these packaged holidays , E.g :Congo, Cape town
es us the maximum amount of revenue & returns
key markets in Africa which in turn brings us this purpose, this would be done through our research team which
re likely to be under scrutiny for next three years based on their returns to our business goals, thus this make
STRATEGIC OPTIONS AND
OBJECTIVES
Strategic option analysis – Ansoff’s matrix
ade which suits to the selected social groups A & B, this would include
ungles
sky
ngs would be coupled with many other supportive value added services such as : Hotel stay , Air fare, Concierg
out to innovators, relaxation seekers & Occasional travelers for whole year
e of each individual in these segments, they would be entitled to a further new product package which exclusive
VVIP Afro package given out to high value makers
Hot chocolate ladies club in Africa, Meet my princess offer & many more
ng any sort of interest for diversification, but based on the business performance in the next three years the foll
mpany in tourism & leisure
marketing organization
STRATEGIC OPTIONS AND
OBJECTIVES
Swot analysis
• Strengths We akne s s e s
• Hall of experience & familiarity in current •Lac k o f c usto me r DB. Co mpe tito r
market inte llige nc e & c usto me r lo yalty
• Company has pricing advantages & can •Po o r co mmunicatio n me tho ds in the
survive in the tag of price war. (Pricing abse nc e o f appe aling mkting
policy is below 5-8% industry rates) c ampaigns
• •Co mplic ate d pro duct o ffe rings &
• Attractiveness of African mkt and •Adaptatio n o f c o nve ntio nal thinking
potential for earning capacity amo ngst Lazy Days inste ad o f
• Comparatively less competition within c usto me r drive n c ulture .
Africa for leisure and tourism industry •
• Product Strategy
• Generic product offering (mass packages) and customization to suit
personal requirements.
• - Wild life safaris ( generic and customized safaris )
• - Honeymoon Packages (Customized & generic – safari/ Ballooning
/Golfing)
• - Tailor made tours for individuals and group
• - Ballooning in Africa
• - Family holidays
• - Adventure holidays ( Skiing / Ballooning/ Safari )
•
• Pricing Strategy
• - Competitive pricing for the generic offering (mass packages)
• - A comparatively higher price for the customized packages depending
on the customer requirements
•
• Re-positioning Strategy
• - integrated marketing communications (IMC)
• Message : “plan and design holiday packages to those who wish to
explore and discover the natural bounties”
•
• Distribution Strategy
• - No intermediaries , web based & direct marketing
• - Priority focus on reaching the customer – online and offline
•
•
On-line Off-line
•
Official web site - In-flight magazines
•
Alliance web site web ad’s (Airlines, - 24*7 customer service
• hotels/resorts and banks) •Customer friendly office – providing
People Strategy
• -Train staff on service quality, relationship marketing, ,
competitor profiling, collecting market information, etc…
• - self resourced team to develop the website ( this avoids
outsourcing expenses)
•
Process Strategy
• - MKIS & CRM systems, knowledge management, intranet
systems
• - Development of e-distribution systems
•
Physical Evidence
• - Consistent branding in staff dress, market oriented office
environment, brochures, tickets , travel guides, travel insurance
and other tangibles
BUILDING SUSTAINABLE COMPETITIVE
ADVANTAGE
Basis of competition
BUILDING SUSTAINABLE COMPETITIVE
ADVANTAGE
WHERE WE COMPETE
WHO WE COMPETE AGAINST
Global Holiday Travels –UK
Whole World Golf Travel
Safaris Direct (http://www.safaris-direct.net)
Golfing in Africa – (www.golfingafrica.com)
Balloon Safaris – (www.balloonsafaris.com)
www.lastminute.com
BUILDING SUSTAINABLE COMPETITIVE
ADVANTAGE
ACHIEVING SUSTAINABLE
COMPETITIVE ADVANTAGE
STRATEGY
Market
Development
Branding
STRUCTURE
Differentiation SKILLS
Virtual Organization
Flexible Knowledge
management
Bottomup approach
SHARED communication
VALUES IT
Innovation
Integrity
STYLE
Quality
Supportive style STAFF
Openness
leadership
T&D
Action centered SYSTEM Employee
leadership
Customer satisfaction
database Motivation
MKIS Rewards
Intranet/Extranet
IMPLEMENTATION &
CONTROL
BALANCE SCORE CARD Past
Financial
-% profitability for SBU
External -Economic value added
-Market share (as a web dealer)
Internal
ve
Internal process
VISION
on (VFM, Range of offers, service of the employee) -# of customer complaints
n ( Loyalty cards, blue tooth) -Time taken to upload the site and errors
customer -% time site down ( during peak holiday se
on -
Present
Innovation & Learning
-# of new additions to the site
-# of site links
Future
-# of language translations
-# of training hours per employee
CONTROL
- IMPLEMENTATION &
BALANCE SCORE CARD –
MEASUREMENTS
Perspective Objective Measurement Targets
96 97 98
Learning & New additions # of new additions to the site 50% 50% 50%
Development New links # of site links 35% 40% 40%
Language translations # of language translations 25% 25% 25%
Employee training rate # of training hours per employee 75% 75% 75%
Budget
1996 1997 1998
Receipts £ £ £ £ £ £
Turnover:
Payments
Web Development 25000000