Contiki Tours : Marketing Strategy Analysis Essay

Contiki Tours is an ar digressment that offers packaged holidays to a variety of local and worldwide destinations. Their targeted market is limited by age. Clients must be in the midst of 18 and 35 years old. The analysis will focus on Contiki *s Australian market for international holidays. Contiki have adopted a hard marketing strategy in identifying market segments. This means that they have elective to focus their marketing efforts on gaining a high sh are of unmatched positionicular segment of the market (i.e. 18-35 year olds). The advantage of such a strategy is that it allows specialisation which may produce economies in production, distribution and promotion. However, it does have in mind round risks in that market needs can change or competitors may enter the segment. The risks and benefits of this strategy will be examined more than almost in the analysis of the marketing mix. Product In order to mensurate the effectiveness of Contikis marketing strategy it is i mportant to understand the spirit of the product offered by the organisation in terms of the benefits that it provides. Broadly, it is a proceeds product (eg. flight, bus trip, food preparation) although elements of the product are physical (eg. food, t-shirts).It is a specialty product given that it meets a specialised need and consumers are willing to spend quite some time searching for and evaluating. It is as well as acquired infrequently. It would also be considered a high involvement product delinquent to the relatively high risks of purchase. The notion of purchase risk will be explored in more detail in an analysis of consumer behaviour. Price The character of the product, characteristics of the target market, and consumer behaviour each have important implications for pricing. It should be famed that the bell compens able for the product by the consumer involves more than the nominal price (i.e. the price tag). As well as the money paid for the product, consumers en dure time costs and must expend behavioural and cognitive effort. Cognitive effort may involve the customer dealing with some of the risks of purchase (Ross, 1984). There are a number of implications of this analysis for Contiki. Firstly, the organisation can manage the price that consumers pay by minimising the time, behavioural and cognitive effort that is used purchasing the product.By decreasing the costs to the consumer, Contiki is able to increase the perceived value of their product to consumers. Over-the-phone or internet schooling and booking services would decrease the time taken in genuinely purchasing the product, and therefore the cost of the product to the consumer. Also, convenient agent locations would minimise the behavioural effort for consumers. Contiki attempt to coordinate with a wide range of spark agencies who are educated by Contiki sales staff on product attributes (the distribution channel and its implications for pricing with be covered more thoroughly in a later section of this analysis). It should be recognised, however, that some consumers derive utility from extensive cognitive involvement in the purchase process.For example, some customers may enjoy discussing at length with consultants, their itinerary and travel options. To the extent that this occurs, friendly and knowledgeable travel consultants should be an integral part of Contikis product offering. In order to achieve this, promotion (i.e. personalised selling) to the distribution channel should be emphasised. From this discussion it is evident that the interaction between consultant and customer is a key aspect of the value talking to sequence. Increasing perceived value involves managing the people or participants in the breathing in process (Berry, 1980 Booms & Bitner, 1981).