MARKETING PLAN

ROMANTIC COAST VILLAGE TOUR

Marketing plan for: Tour 112-05

Submitted to: Susan Halsall

Submitted by: Seyoung Kang (100100564)

Soo Choe (100110222)

Jimin Han (100108501)

April 11, 2016

Table of Contents

Executive Summary......................................................................................................................3

1 Company Description................................................................................................................4

2 Strategic Focus...........................................................................................................................4

2.1 Mission/Vision Goals............................................................................................................4

2.2 Core Competency and sustainable Competitive Advantage.................................................5

3 Situation Analysis......................................................................................................................5

3.1 Industry Overview.................................................................................................................5

3.2 4 Cs.......................................................................................................................................5

3.2.1 Company........................................................................................................................5

3.2.2 Competitor.....................................................................................................................6

3.2.3 Customer.......................................................................................................................7

3.2.4 Channel (Suppliers & Intermediaries)............................................................................8

3.3 TREES-Situation & Trends...................................................................................................10

3.3.1 Technology...................................................................................................................10

3.3.2 Regulations & Legal......................................................................................................11

3.3.3 Economy......................................................................................................................12

3.3.4 Environmental/Natural................................................................................................14

3.3.5 Social/Cultural..............................................................................................................14

3.4 SWOT Analysis....................................................................................................................14

3.4.1 Strengths......................................................................................................................15

3.4.2 Weaknesses.................................................................................................................15

3.4.3 Opportunities...............................................................................................................15

3.4.4 Threats.........................................................................................................................16

4 Market- Product Focus............................................................................................................16

4.1 Marketing and Product Objectives.....................................................................................16

4.2 Target Markets...................................................................................................................17

4.2.1 Consumer analysis.......................................................................................................17

4.3 Points of Differences...........................................................................................................18

4.4 Positioning..........................................................................................................................18

5 Marketing Program (4 Ps).......................................................................................................18

5.1 Product Strategy.................................................................................................................18

5.1.1 Positioning and Branding.............................................................................................19

5.1.2 Product Decisions........................................................................................................19

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5.1.3 Delivery Decisions........................................................................................................21

5.2 Price Strategy......................................................................................................................21

5.2.1 Cost..............................................................................................................................21

5.2.2 Competitive Pricing......................................................................................................24

5.2.3 Channel Pricing............................................................................................................25

5.2.4 Consumer-level Pricing................................................................................................25

5.2.5 Methods and Terms of Payment..................................................................................25

5.2.6 Promotional Pricing.....................................................................................................25

5.3 Promotion Strategy.............................................................................................................25

5.3.1Groundwork..................................................................................................................25

5.3.2 Digital Media Action Plan.............................................................................................27

5.3.3 Advertising Action Plan................................................................................................27

5.3.4 PR and publicity action plan.........................................................................................28

5.3.5 Sales Promotion Action Plan- Consumer and Trade.....................................................28

5.3.6 Personal Selling............................................................................................................29

5.4 Place Strategy.....................................................................................................................29

5.4.1Access...........................................................................................................................29

5.4.2 Resellers/Intermediaries..............................................................................................30

5.4.3Partnerships..................................................................................................................30

5.4.4 Title transfer................................................................................................................30

Conclusion...................................................................................................................................31

References...................................................................................................................................32

Table of figures

Figure 1. Attitude Towards holiday for Koreans.........................................................................8Figure 2 Overview of Korea........................................................................................................13Figure 3 Convert Korean won to Canadian dollar.....................................................................13Figure 4 Romantic Coast Village Tour Brand Pentagon............................................................19Figure 5 The process of contact.................................................................................................20

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Executive SummaryThree G is found in British Columbia, Canada in 2016 to provide luxury tour with upscale

accommodations, soft adventure, gourmet food and high quality service to affluent customers. Our goal is to become a renowned travel company, providing high-end services in Vancouver. Our grand product, “Romantic Coast Village tour” includes various soft adventures: yachting, fishing, hiking, golfing, cooking, and sightseeing. The three women founders are Seyoung Kang, Jimin Han, and Soo Choe and passionate about the tour.

The Romantic Coast Village tour exists for reasons:

Geotourism is growing rapidly with travel to natural scenery to grow the global tourism industry

There are few providers of luxury travel for Korean in Vancouver. Asia is one of the largest market with a large growth as incomes rise and

consumers are able to travel more. According to Destination British Columbia, our target market, South Korea

was British Columbia's (BC) seventh largest international market.  

Virtually many Korean tour companies in Vancouver provide tour packages to appeal to mid-class people; however, we will focus on upper-class people or above and with higher income.

In order to operate successfully Three G will focus keys following:

Effective segmentation and targeting within the larger travel market. Successfully positing as luxury travel specialists. Communicate the differentiation and quality of our offering through personal

interaction, media, and regional marketing.

There is rapid growth in the market and increasing demand. Hence Three G's target market is an exploitable niche and our service is differentiated. Three G's target market members will have similar activity interests, more disposable income and less sensitivity to price.

We will provide a luxury service with prestige value. We are competitively priced in the luxury market. Since we appeal to luxury, volume will be limited. However, we will be able to capture a high profit.

To become a professional and respectable luxury tour company, we try to do promote in many ways such as advertising through brochure, magazine and social media, PR, sales promotion and personal selling with travel agencies. Furthermore, we will promote our brand value and brand awareness more with Korean travel agencies and other intermediaries.

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1 Company DescriptionCompany DescriptionThree G is a tour company, founded in 2016 by three prominent CEO women. It was started by only three people in Vancouver at the first step, and now we have accomplished to have over twelve wonderful employees. Three G tour is trying our best to provide a differentiated service and promote the best quality of one on one customer service. Tourists can feel as if not only escaping from their busy life, they can enjoy our best service through our differentiated tour products.

LocationAddress: 815 W Hastings St #250Vancouver, BC V6C 1B4    Phone:+1(604) 688-7942E-mail: threegtourca@gmail.comWeb site: www.threegtour.ca

ProductThe true heart of romantic and fascinating coast tour in British Columbia, Canada. Our tour has three main target markets: Korean honeymooners, Korean empty nesters and Koreans who are visiting their friends or relatives in Vancouver.Our tour provides relaxation and sightseeing with luxurious service in marvelous seaside towns in BC.

2 Strategic Focus

2.1 Mission/Vision Goals

Our mission is to create exciting and unforgettable travel experiences, and provide superior customer services beyond expectations.Goals: We will aim to become a renowned travel company, providing high-end services in Vancouver.

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2.2 Core Competency and sustainable Competitive Advantage

All staff can drive, and guide with proficiency of Korean.  Our advantages are the beautiful, natural scenery, clean air, an advanced society, high-end services, and differentiated accommodations such as Free Spirit Spheres.

3 Situation Analysis

3.1 Industry Overview

Geotourism is defined as tourism that deals with natural environment. Our closest Standard Industrial Code (SIC) is determined as 078102.

Geotourism is growing rapidly with travel to natural scenery to grow the global tourism industry. It helps people to understand nature through appreciation and learning. Factors that affect growth of geotourism is nature itself. Developed attractions can be used as a tool for the development of local and regional communities (Ross K, 2010).  

There are some government regulations we need to be aware of (Government BC 2015-2017):

Our tour only allows people who are over in age of 19 years old due to the alcohol we will have.

Customers as non-resident aliens need to get One Day Angling License costs $20 in order to fish.

3.2 4 Cs

3.2.1 Company

Head Office 815 W Hastings St #250, Vancouver, BC V6C 1B4

Phone +1(604) 688-7942

Financial year February

5

end

Employees 12

Three G is involved in the operation of high-end tour for Korean inbound tourists, Korean honeymooners, Korean empty nesters and Koreans who are visiting their friends or

relatives in Vancouver; with the differentiated services. The tour is mainly for the Korean tourists intending on sightseeing. We are a relatively new company in the market. We will focus on pleasuring travelers, who are affluent and educated with long haul travel experiences. Then we will be expanding into the regional market as time progresses. Therefore, the initial aim will be building awareness and confidence in our services; strategies following:

1. Provide unparalleled service to the tourists in order to build trust which will include superior service.

2. Our strategy is to grow the business by nurturing clients, differentiating the service from our competitors, particularly through accommodation, service and staff behavior. In order to meet customer expectations, training will be conducted on a regular basis.

3. We will focus on differentiation as a specialty provider of city/ adventure travel.

4. All criteria from customer satisfaction, service provision, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages.

3.2.2 Competitor

Even if our concept is high-end tour company focusing on Korean tourists who are willing to pay their discretionary money for travel, we cannot ignore the other tour companies which have cheaper products for the tourists. Due to the fact that there are numbers of tourism companies for Koreans in BC, we should examine our main competitors to be more remarkable and distinguishable, giving a general overview. Therefore, we focused on the competitors in the same target market and regions like companies which are engaged in operation of tour for Koreans in Canada. Furthermore, we also considered for the other high-end tour in Canada. As long as we are operating high-priced product, more luxurious packages generally provide a "soft" adventure such as fishing and sightseeing. The activities are more along the lines of sightseeing and low-risk alternatives, so we may consider for competitors who are engaged in soft adventures in BC especially for fishing. The main events of

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our tour is staying in a fishing lodge. Other company which have extensive knowledge of the industry, and key personnel and management can attract tourists using their reputation. Some have been in operation for more than twenty years. They are familiar with local service providers and have established strategic relationships. Examples of major competitors are following:

Examples of major competitorsCompany name location Theme PriceHana tour(Tour click)

4501 North Rd #103, Burnaby, BC V3N 4R7

Tour company for Koreans

Low ~ middle

Ok tour 9920 Lougheed Hwy, Burnaby, BC V3J 1N3

Tour company for Koreans

Low ~ middle

Queen Charlotte Lodge

3600 Lysander Ln #180 Accommodation with soft adventure

High

Westcoast resort

4980 Cowley Cres Accommodation with soft adventure

High

3.2.3 Customer

Target market:Korean tourists especially, honeymoon traveler and Leisure travelers.

Market needs and buyer behavior:Our package is planned for couples, high class or above who expect to spend their time to enjoy sightseeing, fishing, and relaxing in romantic places. They are tempting to escape their busy daily life and being pampered in each of the unique places in BC. It must be a good deal for spending time with our tour for several reasons for why we are offering the romantic and exotic places, high quality services, accommodations, foods, and unforgettable memories. Besides, couple tourists who just married or empty nesters, love taking pictures and what more than having a beautiful scenic background of beaches, trees, and water for their memories. Above of all, for the honeymoon, they need more free time than others and romantic mood therefore, our tour is design in having travel freely and give them the beautiful background. Our tour is also for high class people, even in transportation, they can see the beautiful scene during the moving.

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Market Trends:It is common for over half of Korean tourists to enjoy their holiday by traveling. Looking at this graph down below, most tourists prefer going to places where they can see natural beauty. Our tour product is designed on visiting the beautiful spots which can see and feel magnificent natural scene and engaged in summer season. As many tourists know, summer time in BC is the most beautiful season. In Korea, 85% of honeymoon couples go overseas and spend a lot of money for their unforgettable memories therefore, they will be willing to pay for expensive and amazing trip compared to other groups. If they are looking for the places that have unique and beautiful natural scene, high quality accommodations, and food, our tour must satisfy them for giving them treasurable memories.

Figure 1. Attitude Towards holiday for Koreans

                                                                                               (Source: e Nation Brands Index, 2009)

3.2.4 Channel (Suppliers & Intermediaries)

Our customers will only be able to access our product through Korean agencies in South Korea, our own website and somehow social media.As our product is a high-end tour and our targets are Korean tourists, five-star hotels, fine-dining restaurants, transportations, agencies in Korea and social media will mostly be our intermediaries and suppliers.

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Supplies,intermediaries

Functions Costs

Services to customers

Services to us

Hotels - Provide rooms with experience- Breakfast, lunch, dinner

High - Room Service- Personal hoteliers for only our customers

-Frequent use discount

Restaurants -  Provide high end food

High - Wine sampling

- Group Discount

Transportation(water taxi, ferry, seaplane, van, limo)

-  Provide F&B, Accommodations, and Facilities (toilets, souvenir shops)- Take customers to other places- Provide experiences

Mid-high

- Special events - fly in the air- float on sea- guiding

-Frequent use discount

Agency in Korea

- Inform our tour- Help booking our tour

Mid -Small Discount- Souvenirs Recommending

None

Social medias -  Advertise the tour- Announce our customers

Low None None

Because we are handling lots of customers at the same time and place, all the materials we need should be checked and ready in advance.

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3.3 TREES-Situation & Trends

3.3.1 Technology

Nowadays, people live and rely on technology which means technology affects everywhere. There is a strong impact of internet in tourism industry; now people can book their flight tickets, and plan the trips by searching online websites or on social medias such as Facebook, Twitters, and Instagram. Therefore, tourism markets are trying to be more accessible, more inclusive, more creative, and more ambitious.Smartphones are one of the biggest and easiest way to access internet. According to Sergiu Rus, “Smartphones can take real advantage with Quick Response (QR) codes or mobile tagging. Just as the Internet completely revolutionized the way consumers book travel, now the immense, growing reliance on mobile devices is causing a second shift in how travel is purchased. Today, rarely anyone leaves their home without their mobile phone, and twice as many people are using SMS globally compared to email. It is imperative for hotels to tap into this growing market. We must emphasize the growing importance of the Android operating system for mobile phones.”As a result, it can also affect our organization and our marketing plan. For example, we might have to decrease the costs of our products because of lack of customers, and we might have to find different ways to connect with customers because it is not easy to find and access our product on social medias.Hence, we should embrace newly developed and effective information technology solutions to run travel operations smoothly and efficiently. At the same time, the focus should be on providing excellent customer service. For all these, the only answer is to embrace best and updated information technology.

3.3.2 Regulations & Legal

There are some federal and provincial laws to govern our tour. Because of the fact that our tour contains activity: wine sampling, we are responsible for being aware of liquor laws.

Liquor laws

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The legal age of drinking alcohol is 19 years old in BC. And people in or over 19 years old must have their two pieces of ID. One has to be an official government issued ID (including official foreign government-issued IDs) with your name, picture and birth date, such as a driver’s license or passport. And the other one has to include their name and your signature or picture, such as a credit card (BC Government website 2015)

LicensingBecause we will have vans, commercial driver’s license is required to drive a bus for the bus driver. (ICBC website 2015)

Environmental lawsEveryone in our tour is also responsible for protecting the nature. Ontario’s environment web site says “Provincial environmental laws are based on provincial constitutional powers, such as over municipalities, local works and undertakings, property and civil rights, provincially owned (public) lands and natural resources. In inland areas, most environmental laws that affect private activity are provincial.”Each province has its own environmental statutes.

Business licensesIn order to start our business as partnership, there are three ways to register: go online, in person, and by mail. (Small business BC 2016) But before we register, we must have our business license which requires a copy of the business owner's current, government-issued photo ID with your business license application. And type of our business is “Commercial and industrial business: A business based within a building located in a commercial or industrial area of the City of Vancouver as defined in the Zoning and Development Bylaw”(City Of Vancouver 2014)

Taxations rates and incentivesBC in 2016 taxation rates are on a cumulative basis. According to BC Government website, “if your taxable income is more than $38,210, the first $38,210 of taxable income is taxed at 5.06%, the next $38,211 of taxable income is taxed at 7.70%, the next $11,320 is taxed at 10.5%, the next $18,802 of taxable income is taxed at 12.29% and any taxable income over $106,543 is taxed at 14.70%.”

Safety lawsWe need to be aware of Safety laws in BC due to running our business. As all employees and we deserve to be taken care of, there are some benefits that can help us: Health care benefits, Permanent disability and death benefits.

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For instance, when our employees get injured, we are responsible for report it and take him or her to the doctor (Health care benefits), and according to WorksafeBC, if there is evidence that a work-related injury or disease has permanently disabled you, and WorkSafeBC determines that the combination of your occupation and disability is so exceptional that the functional award does not appropriately compensate you, then a loss of earnings award may be paid.(Permanent disability and death benefits) . (WorksafeBC, 2016)

Labour standardsAs we are the owners of our organization, we ensure that we are following employment standards act. The purpose of this act is to ensure we treat our employees and employers equally and we give at least basic standards of compensation and conditions of employment.In our organization, we are going to provide at least more than minimum salaries, vacation pay, meal break, fair treatment such as promoting and termination.For restaurants to serve alcohol, we need to have Serving It Right certification, and for the bus rental company, we need to have car insurance and lastly for us to run our tour safely, we should ensure that our customers must have travel insurance for visitors to Canada.

3.3.3 Economy

According to Destination British Columbia, our target market, South Korea was British Columbia's (BC) seventh largest international market in terms of direct custom entries in 2013 (2014). The following table gives an overview of the market.

Figure 2 Overview of Korea

Estimated outbound trips from South Korea (2012) 14.9million

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Direct customs entries to BC (2013)                                                                        80,971BC’s share of Canada’s South Korean custom entries (2013)                              56%South Korea as a share of BC’s total international custom entries (2013)        2%GDP per capita (2015)                                                                                               33,395GDP growth (2015)                                                                                                      3.6%Inflation rate (January, 2016)                                                                                     0.8%Interest rate(February, 2016)                                                                                     1.5%Unemployment rate (January, 2016)                                                                        3.5%

                                  (Sources: Destination British Columbia, OECD, Trading economics)

The graph below shows value of  South Korea won in Canadian  dollars has consistently maintained up to 0.0010 Canadian Dollar since 2014. As a result, a weak Canadian dollar is more likely to attract Korean tourists to Canada.

Figure 3 Convert Korean won to Canadian dollar

(Source: Foreignexchangerate. org, 2016)

3.3.4 Environmental/Natural

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As the tour provides transportation, accommodation, and restaurant, in terms of raw materials, most of the things required by them could be supported from the city which is near from the location. Nature walks, and sustainable fishing are available for recreation. The tour focus on geographic scenery, so the visiting tourists should not face pollution. As the tour offers fishing, weather and season will affect the operation.

3.3.5 Social/Cultural

The following facts (Canadian tourism commission, 2014) could be decisive for the choice of our product:

South Korean long-haul travelers, and those most interested in visiting Canada, are predominantly older with higher disposable incomes.

The older, more experienced tourists recognize Canada is a destination that offers outstanding natural beauty.

Korean travelers are not very knowledgeable about Canadian destinations or attractions.

Among travelers interested in visiting Canada, the natural scenery was the dominant aspect of their trip as 54%.

Only around a third of Korean travelers who have visited Canada, would recommend it to their friends, family or colleagues.

They were almost as likely to have heard about Canada through a TV program or show (28%), while films set in specific countries were one of the top-three most influential sources, along with TV programs and friends and family.  

The social group that matches with our target market group is upper-class people or above and with higher income who are craving unique adventures in rustic luxury or honeymoon travelers.

3.4 SWOT Analysis

Strengths Weakness

- Scarcity of concept in Korean market- Employees with combination skills   - Private and one on one services

-Instability-Small market-Lack of public relation

Opportunities Threats

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- Development of tourism industry- Trends of high end tour- Increasing of Korean tourists

-Other competitors-Economic recession-Seasonality

3.4.1 Strengths

Scarcity: There are a few companies to deal with high-end tour for Koreans, therefore this will be good promotion to attract Korean inbound tourists.

Employees with multitasking skill: The employees have well-qualified service skills and experience to jointly develop business strategy and long-term plans, so as to attain company objectives.

Private one on one service: Our company always try to develop the customer service to make tourists who use our product satisfied.

3.4.2 Weaknesses

Instability: 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.

Small market: It is true that there are limits of our product because we are focused on only for Korean tourists.  However, that is why we can account for Korean market easier.

Lack of public relation:  We are relatively brand new company, so it is true that people do not know well about us. However this weakness will be better when the times go by.

3.4.3 Opportunities

Development of tourism industry: The present growth in the tourism sector will result in an increasing number of firms entering the market. ·      

Trends of high end tour: The one of the increasing tour trends is high end tour and above of all, Asians are accounted for parts of most consumers.

Increasing of Korean tourists: Asia remains the powerful market for world tourism growth this year with strong growth as incomes rise and consumers are able to travel more.

3.4.4 Threats     

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Other competitors: 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·         

Economic recession: It is true that there is recession in many countries, and will affect the travel industry.

      

Seasonality: The weather in BC shows the significant changes of climate. Especially, in BC, summer is peak season and winter is relatively lower tourists’ popularity.

4 Market- Product Focus

4.1 Marketing and Product Objectives

We planned our 5 day tour focusing on what wonderful experiences we can give our customers as much as possible.

Itinerary

Day Location Content Transportation

Day 1

Waterfront stationHorseshoe BayNanaimo

- Pick up in the morning- Depart to Nanaimo- Have free time at Free Spirit Spheres (overnight)- BBQ party

VanFerry

Day 2

Nanaimo - Free time- Yacht tour around New Castle Island- Stay at the Marinaside Resort

VanYacht

Day 3

NanaimoSonora

- Depart to Sonora Resort- Spa

Water Taxi

Day 4

Sonora - Optional Activities (Salmon Fishing, Golfing, Cooking class)- Ponding Fishing

Van

Day Sonora - Depart to Vancouver Sea plane

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5 Vancouver

4.2 Target Markets

4.2.1 Consumer analysis

During the process of researching target markets for our marketing plan, we mainly focus on three groups- Korean honeymoon travelers, Korean baby boomers, and Korean travelers primarily visiting relatives and friends in Canada. Besides our package is designed for couples, high class or above who afford to spend their time and money to enjoy sightseeing, soft adventures, and relaxing in romantic places.

According to Destination BC (2014), Korea was British Columbia’s (BC) seventh largest international market welcoming over 145,000 Korean tourists. Among the age groups, the group of 20 to 34 ages is the largest number and the group of 45 to 64 is increasing every year and they tend to stay over 20 nights in BC. Travel agencies play a crucial role in the Korean market, because three-quarter travellers are usually consulting agents about long-haul trips and also many of them make a book through a travel agent. However, Korean travel distribution system is getting complex and constantly changing using a combination of traditional and online channels to plan and book their travel. (Destination BC, 2014).

Honeymooners (primary market):

Honeymooners spend more money as approximately $4,000, which is 3 times higher than average cost of leisure travelers (OTA Research, 2013).  72% of engaged women say “they are less concerned with price and more focus on what they want” (OTA Research, 2013).  Honeymooners are more willing to escape from their ground routine with high self-esteem. Over 300,000 Koreans went abroad for their honeymoon; the figure is increasing every year (Honeymoon resort research: Understanding Honeymoon Market in Korea, 2011)  

Baby Boomers:

Luxury travel is a growing trend of tourism industry in Korea, especially for baby boomers. They have discretionary time and money to travel relatively and love to travel in beautiful place for remembering. Not only do they recognize Canada is a destination offering majestic sceneries, also wish to keep peaceful year without many stressful life events. (Korean baby boomers in transition, 2011)

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Korean travellers visiting relatives or friends:

There are many international students or permanent residents in Canada.(Economic Impact of International Education in Canada, 2012)  Since then, it is increasing that person who is visiting to their family, friends or lovers. They want to experience special activities and share their friends or family.

4.3 Points of Differences

There are many characteristics that set the Romantic Coast Village Tour by the Three G apart from our competitors:

We provide not just a tour but also the most romantic and luxury experience in the world

To meet our customer’s satisfaction, we offer variety of activities. We do not take strangers into our tour in order to keep our product as

comfortable and safe as possible. Even though It is a luxury tour, we offer extremely reasonable price. We also provide unique and luxurious transportation such as water taxi, sea

plane and limo which will give our customers unforgettable memories

4.4 Positioning

It is the desire for Romantic Coast Village Tour by the Three G to be known in customer’s minds as a sole product that provides a unique luxury tour for Korean in Western Canada. The high level of perceived benefit is associated with the high quality meals, luxury resorts and various transportation with professional guides.

5 Marketing Program (4 Ps)

5.1 Product Strategy

5.1.1 Positioning and Branding

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From the point of view of the customer, Romantic Coast Village Tour is differentiated based on unique features as a brand. This includes the fact that our tour only manages a small group in order to focus on not only better service but also safety, and camaraderie to our customers and our tour transportations: limo, seaplane, water taxi are very different from other tour’s transportations such as shuttle buses or  vans. Therefore, our customers can even more enjoy when they are moving place to place. And our tour is differentiated by tour itself because even though it is a luxury tour which people probably think it must be expensive, we have taken out any frills to provide reasonable price.

Figure 4 Romantic Coast Village Tour Brand Pentagon

5.1.2 Product Decisions

There are some unique features to meet customer satisfaction and expectation of our product. First of all, we try hard to provide the most perfect service to our customers. We will provide 24- hour on call service for any emergency contact, fully well trained guides/ local guides. Secondly, customer will only experience high quality products for example, they will only visit fine dining restaurants, take unique and comfortable transportation, and stay at upscale or unique accommodation during our tour. This will give the customer beautiful memory and experience.

We will make the last day of our tour even more special to fully meet and maximize customer satisfaction. We will spend all of our time on filming our customers during

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tour and make videos to show and give them memorable last day and this memory will stay long in their mind.

Our product needs to be more eco-friendly and sustainable in order to keep up with today’s trends, to concern about environmental issues, and also to attract tourists who concern about sustainability or environment. We will try to make our company sustainable first by reducing use of hydro, garbage, and use of disposable products and so on. Then we will make our product be sustainable by educating our customers about sustainability and showing and telling them how we do. We are also in need of making new product due to seasonality of our current product. We will work on creating winter tours in different level.

We will be wearing our company uniform with our name tags on our chests where the customer can see easily.

Points of contact

Figure 5 The process of contact

Before we go on our tour, to help our customers to organize, we will give them the brief itinerary of the tour with some pictures of how the tour will look like and welcoming handwriting letters which will give them more self-actualization.

During the tour, there is going to be some activities that the customers can learn from local experts such as cooking lesson, fishing, and history or information of some attractions.  This part of the tour will give the customers more meaningful contact with locals. And there is going to be a little surprise at the time when our customers about to get bored and tired from taking long transit in order encourage them to enjoy more.

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Initial Point of Contact

Registration Online/Personal Pre tour package

Meet at Waterfront

Commence Adventure

Post tourSouvenirs

On the last night of the tour, we will show the customers a film of themselves on the tour to touch their emotional feeling and give them great memories of the trip. Pictures and videos of the customers will be provided individually.

Finally, on the last day, we will give some special souvenir which is ocean scent candles. This is our tour themed candles so this will last long in our customer’s mind. After acquiring permission from customers, we will post the pictures and videos on social medias.

5.1.3 Delivery Decisions

In order to avoid the challenges of variability, there are some our strategies.

We take small group and separate the groups based on their ages there will be less uncomforting and customers can communicate each other easily.

Based on KSA(knowledge, skills, and ability), we will hire qualified employees.

All our employees will be gone through training sessions to support professional service and cope with a difficulty during the tour.

Technology is a great method to support our product deliver. For instance, social media will help to spread information about our company and products, and internet will help to access to us. We also upload regularly our updated news or information on our website and social medias.

5.2 Price Strategy

5.2.1 Cost

Calculation A: Package Variable Cost

Package variable cost per person

Day1

Day2

Day3

Day4

Day5

Total cost per person($)

Meals 60 64 20 0 0 144

Accommodation 184 90 400 400 0 1,074

Transportation 63.45 25 170 0 385 643.45

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Activities 0 40 80 0 0 120

Total package variable cost

A1,982

The table above is a calculation of the total cost per person of operating the tour. The costs include meals, accommodations, transportation, and activities.

Calculation B: Package Fixed Cost

Package fixed cost Cost per package($)

Divide by the number of spaces available on tour

Total cost per person($)

Guide wages (Guide and assistant guide)

2,000 12 167

Local guide wages(1 hour)

20 12 1.7

Driver wages 400 12 34Accommodation 2,148 12 179Meal 288 12 24

Total package fixed cost B 406

The table above shows a calculation of the total cost per person that we will pay regardless of the number of people in the tour. The costs include guide wages, local guide wages, driver wages, accommodation for staff, and meal for staff.

Calculation C: Business Fixed Cost

Business fixed cost

Annual cost($)

Multiply by the percentage you want

this package to contribute($)

Divide by  the number of spaces available in this

package

Total cost per

person($)

Marketing 5,000 250 12 $21Owner wages

60,000 3,000 12 250

Office cost 7,200 360 12 30Insurance 3,600 180 12 15Total business

75,800 3,790 12 C 316

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fixed cost

The table above accounts for a calculation of the total company fixed cost that might spend to maintain the company.

Calculation D: Total Package Cost

Total package cost per person($)

Carry forward the package variable cost per person from box A 1,982

Carry forward the package variable cost per person from box B 406

Carry forward the package variable cost per person from box C 316

Add A+B+C 2,704

Divide by a realistic sales occupancy rate (80%) to get the total package cost per person

D 3,245

The table above indicates the total of the calculation A, B, and C with a realistic sale occupancy rate (80%), as $ 3,245.

Price

Calculation E: Appropriate Profit

Carry forward the total per person package cost from box D 3,245

Multiply by the profit percentage(8%) you want to add to the package 260

Add the two numbers to get the total per person package cost, including profit($)

E 3,505

The table above illustrates a calculation of cost + profit margin percentage (8%) added as $ 3,505.

Calculation F: Commissions Cost

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Carry forward the total package cost per person including profit from box E 3,505

Multiply by the commission percentage(15%) you want to add to the package 526

Add the two numbers to get the total package cost per person, including commission and profit($)

F 4,031

The table above explains the total amount of appropriate price and travel agent commissions as $ 4,031. As shown the table, we will expect our commission cost as $526.

Calculation G: Discriminatory Price

Carry forward the total package cost per person including commission and profit (Box F)

4,031

Adjusted Price($)

4,031

As shown the above, our adjusted price is $ 4,031, as our product will offer same price to adult. We also do not facilitate sales promotion.

Break Even:

Fixed Cost/ Selling Price - Variable Cost

75,800/4,301-(260+406+1,982) = # of tour 48 ($193,488)

The Break-even Analysis indicates that selling 48 packages will be needed within operating season revenue to reach the break-even point.

5.2.2 Competitive Pricing

As our Romantic Coast Village Tour is an initiative product offering a luxury west coast tour in Vancouver to Korean, there is almost no competitors. However, we should consider travel companies in Korea which operates wide range of tour products. Their cost of luxury tour normally is over $4,000 during seven days. Its cost is relatively lower than us but we provide the unparalleled itinerary and superior service.

5.2.3 Channel Pricing

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Our product will be sold mainly through intermediaries so the commission is core part of channel pricing. We will pay 15% commission to intermediaries.

5.2.4 Consumer-level Pricing

We will be charging $ 4,031 per person for our product, 4night and 5day tour in Canada. Since our product is operating only for five months, mainly to the wealthier, the price will not change. As long as our target market is Korean, current Canadian currency will assist our tour package to attract more Koreans.

5.2.5 Methods and Terms of Payment

We will be accepting payments via credit card through our website and office. By our intermediaries in Korea customers can pay via credit and debit card or cash. As we estimate the cost of the product in Canada, the price is affected by Canadian currency.

5.2.6 Promotional Pricing

Our tour will be running from May to September; the package price will consistently be same. We do operate to join wedding fair in Korean and personal selling with travel agency in Korea.Commission for travel agency; it will be distributed 15% per tour priceWedding fair; Rental place expense + fee for Pen, Brochure

5.3 Promotion Strategy

5.3.1Groundwork

5.3.1.1Audience AnalysisOur main target audiences are consumers - Korean honeymooners, Korean baby boomers and Koreans who are visiting their friends or relatives in Vancouver, and intermediaries: Korean agencies.

Consumers: There are several luxury tours located on Vancouver, but there is no other same concept of Three G luxury tour. This tour will offer customers with unforgettable memories by being pampered, and making romantic summertime. This tour targets high class of honeymooners, baby boomers, and Korean travellers who are visiting Vancouver to visit relatives and lovers. We will divide accordingly into groups of similar ages to make bond of same objective of travel.

Intermediaries: travel agency in Korea; travel agency is a one of the largest market in Korea. They offers our company information to customers in Korea. They are concentrating to introduce the regions in exotic islands but it will be good chance to start marketing in Canada with us.

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5.3.1.2 Internal and External AnalysisIn terms of budgetary factors, we are positioning as luxury tour, thus, it can be quite costly. However, we will try to find the most reasonable price for our goals. However, it will be considered in the near future. Our main competitors are Hana Tours, OK tour, Queen Charlotte Lodge, West Coast resort and Tour Network. Their main promotional methods are various and include testimonials, informative website such as Destination BC, pamphlets, word of mouth, events, business, own website, and tourism association, social media such as Facebook, Twitter, or YouTube.

They are trying to use the unique, effective, and differentiated marketing to promote their own products. For example, Hana Tour which is well-known as the biggest tour company in Canada, are approached to customer as wide-range of tour products. As their USP (Unique Selling Proposition), they promote many regions in Canada giving the choices of high-end products to low price products. Their website, consultant and even pamphlets are written in Korean therefore, many Koreans feel familiar and easy to access their information.

5.3.1.3 ObjectivesOur objective in marketing communication is to build own brand image and become the company which promotes professionally for brand awareness. We want to be acknowledged by customer as incomparable tour company as one of the unique luxury companies and offering differentiated services consistently. We have come up with some behavioral objectives for our targets markets.

We aim to;

•Expand our Korean market by 10% by the end of our following high season.

• Expand our tours as prominent luxury tour Company within the next four years to reach a larger market.

5.3.1.4 Promotional Tool Strategya. Digital Media: In own YouTube channel and our website, we usually upload the videos which are recorded during the tours to promote our company and to give a preview about our product of what we are going to offer. We post interview videos with our staff or past customers on our website.

b. Advertising: Our company approaches to customers with brochures, and also advertises through social media such as Facebook, Instagram or YouTube.

c. Public relation (PR) and publicity: Making viral videos on YouTube will play a crucial role as a tool of PR and publicity.

d. Sales Promotions: We will carry out a sales promotion particularly through trade promotion. As we will regularly visit Korea, we will participate in wedding fair in Korea.

e. Direct Marketing: During bookings, we often receive customer’s personal information - e-mail addresses, telephone number and Facebook. Thanks to this we are able to contact them, and directly promote on our Facebook page.

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f. Personal selling: To facilitate personal selling to our intermediaries - travel agencies, we will visit Korea twice a year. Our marketing staff will sell the products and give brochures to the travel agencies.

5.3.2 Digital Media Action Plan

As the website is an essential part of businesses, we have a website that offers specific information, itinerary and pricing about our products. The company website address is “threegtour.ca.” The website is easy to access and simply designed for people who are unfamiliar with technology. As our main market is from Korea, there is an option to change between the languages Korean and English.

The website contains all the essential information for our customers who might want to find out, including the prices, itinerary, maps, and videos for showing beautiful sceneries as a part of a preview. These videos are, also uploaded on YouTube under the company channel "Three G Tour". There is also a review category of past customers to share their experience and information.

Three G Tour acknowledges the importance of social media as an essential tool of marketing. To use these advantages of social media, the company keeps its many accounts issued on regularly. These accounts include Facebook, Twitter, YouTube, and Instagram.

5.3.3 Advertising Action Plan

Three G tour is trying to advertise consistently with the company's marketing communications plan.

Brochures:

Our brochure is designed as simple and easy contexts: it offers a description of our tours, introduces our team briefly and has pictures of destinations. It also provides our website, address and contact number. Our customer can find our brochure in their hotel, travel agency or at a tourist information center.

Magazines:

We are targeting high class of Korean so we are approaching for fitting with their life style. They have high self-esteem and wish to experience more unique and luxurious experiences. For them, we are going to use the luxury magazines for targeting high class customers appealing that we have differentiated travel, service and special. Magazine is general and brief but fascinating information about our tours. Through luxury magazines such as Secreto introduce and attract customers who afford to consider our product.

Social Media:

Our staff who knows how to deal with social media will keep managing each of social media. Each account and channel are going to be updated three times per week and convey useful information to potential customers.  

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• Facebook: ThreeG tour

  Noticing new events, information, uploading pictures, linking to Youtube and Instagram updates

• Twitter: @ThreeGtour

  Current events and communicate with customers who are twitter users

• YouTube: ThreeGtour

Videos of tours and interviews of customers

• Instagram: ThreegGtour

Pictures of destinations, communicate with customers

Website: http://www. threegtour.ca

Our website contains comprehensive information such as itinerary, prices, brochures, maps, and mission, company information. There also is function for linking to social media accounts, and videos in YouTube will be displayed. Searching engine operates even small keywords which customer wish to know.

5.3.4 PR and publicity action plan

Viral videoWe generate and spread viral video about our company and product on YouTube. We make this video to relevant with our product and highlighted beautiful scenery. Our final object is attracting potential customers through this video.

Channel communicationWe try continuously to keep good relationship with our channel members; they can be supplier, intermediaries and business clients. Our staff will send handwritten letters to each of our channel members about our company’s information and other useful events. We can get a good image and give them good impression for better relationship with low- cost. Through the small efforts, our company’s image and product will grow.

5.3.5 Sales Promotion Action Plan- Consumer and Trade

As mentioned previously, we aim to become unique and luxury tour. However, we are new company so we will focus on our brand awareness, participating Korean wedding fair regularly.

Wedding FairWe are going to engage the fair to introduce our product and company. As there will be many potential customer, we will offer pen with our contact information and brochure.

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5.3.6 Personal Selling

We will personally sell our product with Korean travel agencies through many efforts. It is high price but essential part of business to interact with more customers. They will be strong power to make more customers in the close future. In fact, Koreans tend to rely on travel agency besides they usually consult and decide through them. We will visit to Korea regularly to keep good relationship and appeal our products and company’s brand.

5.4 Place Strategy

5.4.1Access

Romantic Coast Village Tour begins at our meeting point; Waterfront Station located in the heart of downtown Vancouver. The place is easily accessible by bus, skytrain, or seabus. The map is below:

                                                                                                                                 (Source: bing map, 2016)

In order to avoid confusion and uncertainty, we provide directions and maps on our website, as well as on our brochures which we will send. Upon booking, we will ask the customers how they plan to arrive in the morning. We will ensure to direct them.

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                                                                                                                             (Source: google map, 2016)

5.4.2 Resellers/Intermediaries

We do rely on Korean travel companies such as Hana Tour and Mode Tour as our crucial intermediaries. They will receive a 15% commission for every guest they bring in.  We also promote our tour package through social media- Facebook, Instagram, Twitter, and YouTube. By providing the participants with great unforgettable memories, former customers would be an important marketing intermediaries for us.  

5.4.3Partnerships

The three G’s operation will begin in 2016 so that we will put more effort to build partnerships in order to maximize and maintain profit. These partnership will be with Korean travel companies in Korea; we will support each other product through in Korea and Canada.

5.4.4 Title transfer

We will offer booking on our website as well as in our office. Since majority of customers are in Korea, our travel agents will help them make a reservation through online, phone, or person in Korea. Customers will receive conditional refunds if necessary. We also have an internet phone, 070-123-1234, which customers and intermediaries can call for information and booking.

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ConclusionWith the unique, luxurious tour package, Three G aim to be the largest company in tourism industry in Canada. Our tour with superior service provides all our customers fabulous and unforgettable memories. The vision for success of Three G is to attract people who are about to go their honeymoon and want to have a special tour with partners. Our employees are passionate, outgoing and well trained to add more safety and comfort into our products. In years to come, we hope that our tour is successful.

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