International Marketing Plan – Basecamp Peru Stan Iakovlev and John Relyea-Voss
Agenda Introduction
PESTLE
Target Market Analysis
Market Entry
Competitive Analysis
Service Plan
Distribution
Advertising and Promotion Strategy
SWOT
Conclusion
Introduction
¡ Base Camp International Hostels is your “home away from home” in Costa Rica, Nicaragua, Ghana, Ecuador, Peru and Nepal (Basecamp Hostels, paragraph 1)
¡ Base Camp offers volunteer programs, hostel experiences, and internships internationally
Country Facts ¡ Population:
¡ 29.6 million
¡ GDP (PPP):
¡ $275.7 billion
¡ 8.8% growth
¡ 7.2% 5-year compound annual growth
¡ $9,330 per capita
¡ Unemployment:
¡ 7.9%
¡ Inflation (CPI):
¡ 1.5%
¡ FDI Inflow:
¡ $7.3 billion
(Quick Facts, Table 1)
PESTLE Analysis
¡ A country overview including a PESTLE Analysis for Peru can be viewed separately here
Target Market Profile ¡ Basecamp’s target market profile uses
demographic, psychographic, and geographic profiles to maximize the effectiveness of our marketing plan to our intended audience
Primary Secondary
Age 18 - 25 40 – 60
Gender Male / Female Male / Female
Location North America North America
Lifestyle Students seeking valuable international experience
Retired or “mid-life-crisis” adults who need a positive change
Target Market Analysis
¡ Basecamp allows anyone over the age of 16 to
volunteer
¡ Two distinct groups of international volunteers
¡ Students who need the international experience / value
¡ Adults who are looking for a change in their life
¡ Geographically, volunteers can now come from
anywhere due to globalization
¡ North American volunteers are prominent because of
access to programs such as Basecamp
Market Entry ¡ Basecamp international uses alliances for their
global market entry strategy.
¡ Basecamp collaborates with a network of other companies in order to achieve their given projects/ objectives.
¡ Comparative advantages with companies that operate Inside Peru allow Basecamp for offer lower hostel costs per night than a standard price comparable for a hostel in Canada or the U.S. (Because of this Hostel.com has some of the lowest hostel prices internationally)
¡ A diversification strategy in Basecamp has allowed them to open volunteering programs in multiple countries throughout the world.
Global Competitive Analysis ¡ Global Volunteer Network
¡ “The Global Volunteer Network (GVN) offers volunteer opportunities abroad in 25 community projects throughout the world” (Its your choice, paragraph 1)
¡ This global competitor has programs ranging from teaching, healthcare, construction, and animal rescue located all over the world
¡ Target Market = young travelers, volunteer workers
¡ Global Volunteer network uses their website to advertise volunteering programs, deliver information to applicants and consumers who want to volunteer.
¡ “Founded in December 2000 by Colin Salisbury, its Founder and Executive Director, after spending time volunteering in Ghana, West Africa”(Who are the Global, Paragraph 2)
In-country Competitive Analysis
¡ Developing World Connections
¡ “Developing World Connections provides International Volunteer Experiences to people of all ages and backgrounds” (Who we are, paragraph 1)
¡ Target Market = young travelers, volunteer workers
¡ Developing World connections uses their website as well as websites advertising on other non profit organization’s websites to advertise volunteer programs internationally.
¡ Also a global competitor, this company operates in Peru doing the hands-on work of building educational and community facilities in both rural Peru and in poor outskirts of Lima
¡ Smaller volunteering company only supplying 13 volunteering destinations internationally.
Indirect Competition ¡ www.Hostel.com
¡ “Hostels.com is the ultimate resource for backpacking and hostelling.” (About Hotstel.com, Paragraph 1)
¡ Target Market = young travelers, and backpacking travelers.
¡ Hostel.com uses online advertising for customer awareness of their hostel programs.
¡ “Hostels.com features the most comprehensive selection of hostels on the internet with almost 35,733 hostels listed.” (About Hotstel.com, Paragraph 2)
¡ Indirect Competition aimed towards attracting consumers to backpack/travel rather than volunteer internationally
¡ Hostel.com offers more than 35,000 hostel locations internationally for very low prices.
Competitive Analysis Matrix
Service Plan ¡ Highlighted key aspects of service mode,
process, pricing
¡ Challenges of marketing a service abroad
¡ Comparison to competitive analysis
(Prices, Table 6)
Service Plan • “Program fees covers all in country expenses and costs
including accommodation, meals, language training, activities during orientation week and cultural training. “ (Prices, Paragraph 1)
• Prior to setting up volunteer work, the process that volunteer abroad undertakes includes, visiting with the organization to fully understand the work being done, and conduct a placement assessment.
• Part of Basecamps service plan includes online live support to assist anyone visiting the website. This helps increase consumer engagement with the services that Basecamp provides.
• Comparing pricing, service mode, and process to other international competitors, hostel.com offers much lower prices on non-volunteer programs.
• International media availability makes advertising online for basecamp programs access a wider range of customers/ volenteers.
• Basecamp fees have on average more expenses included in price than other hostel international volunteer programs.
Drivers of Globalization
1 Environmental – international volunteers are
generally well received in each country
2 Market – international volunteering is prominent
and on the rise as global issues come to light
3 Cost – labour and operation costs are
comparatively lower in 3rd world /
underdeveloped countries
4 Competitive – other hostels are present in Peru
Distribution Considerations ¡ Channel Relationships
¡ Need to maintain relationships with partners in Peru
¡ Allows distribution throughout channels to move effectively
¡ Integrated Distribution
¡ Physical distribution can be aligned globally to save costs
¡ Grey Market Alternatives
¡ No alternatives for hostels
¡ Hostels are already considered part of the “Grey Market”; not
being a completely fundamental hotel
Advertising and Promotion Strategy
Where? Peru / Worldwide
When? Over 2012
Why? To increase
brand awareness amongst our determined
target market
Who? To our primary
and secondary markets (see
Target Market Profile)
Advertising and Promotion Strategy Considerations
¡ Positioning Differences ¡ Our two target market profiles can be advertised to
and reached through very different mediums due to the difference in age
¡ Media Availability ¡ Advertising in Peru will be difficult
¡ Low on the Technological Rate Index, few technology-based mediums available
Advertising Examples
Advertising Examples
SWOT Analysis
Strengths • Peru’s index for business freedom of 72 makes it ideal for Base Camp to do programs.
• Popular destination for vulunteers and travelers looking for a jungle like experience
• 8.8% growth of GDP last year with population of 28.9 million
• Low conservations 4 week volunteer program costs compared to competitors.
Weaknesses • Rule of law and levels of corruption undermine prospects for long term economic development.
• Not safest country to volunteer/ travel in
• 35% of population lives below poverty line (Background, Paragraph 1)
Opportunities • Chance to increase market share for traveling and hostel industry.
• Online presence makes advertising available to a wider international audience
• Growth in international travel, and volunteer programs increase potential number of travelers and volunteer applicants.
Threats • Foreign ownership in the financial sector is also growing.
• Rule of Law is not strongly Upheld
• High levels of government corruption
Conclusion
¡ Weak PESTLE Analysis
¡ Keeping key considerations in mind can ensure
success of Basecamp’s implementation in Peru
¡ Be aware of cultural differences when trying to
glocalize
¡ Go for it.
References ¡ About Hostels.com.(March 19, 2012).Hostels.com. Retrieved from
http://www.hostels.com/credits.html
¡ Who we are.(March 20, 2012).Developing World Connections. Retrieved from http://developingworldconnections.org/index.php/aboutus
¡ Who are the Global Volunteer Network?.(March 21, 2012). Global Volunteer Network. Retrieved From. http://www.globalvolunteernetwork.org/about/
¡ It’s Your Choice.(March 21, 2012).Global Volunteer Network.Retrieved From http://www.globalvolunteernetwork.org/programs/
¡ Prices. (March 21, 2012). BaseCamps International. Retrived From http://www.basecampvolunteerabroad.ca/sites/bc-volunteer-abroad/index1.cfm?pagename=Prices&category=23&page=81
¡ Base Camp Hostels.(March 21, 2012).Base Camp International Centers. Retrieved fromhttp://www.basecamphostels.com/sites/bc-hostels/index1.cfm?pagename=BaseCamp%20Hostels&category=109&page=520
¡ Quick Facts.(March 21, 2012) . Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom
¡ Regulatory Efficiency.(March 21, 2012). Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom
¡ Background. (March 21, 2012).Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom