2. External Environment Analysis-
(1) Demographic
• Population of Republic of Korea (ROK)
in 2010 : 49 million.
• One ethnic family & speak one language
> Korean
-main language for communication
Estimated Population of Republic of Korea
49 138
48 852
48 564
48 275
47 991
2006 2007 2008 2009 2010
Population(thousand) From: UN Population Division
3. External Environment Analysis-
(2) Economic
• Korea annual economic growth :6.2 %
• Increasing in GDP in South Korea
> good economy & increase in living
standard of Korean
>being encouraged to travel
4. External Environment Analysis-
(2) Economic
• Increase in currency exchange rate in
Korean Won to USD
> increase in intention of consuming of
our target customers
5. External Environment Analysis-
(2) Economic
According to
“Korea’s Challenges and Opportunities” ,
• Inflation
- uncertainty of global economy environment
- Japan’s nuclear disaster
- volatility of capital flows
→ lower the Korean’s desire to travel
6. External Environment Analysis-
(3) Ecological
In Hong Kong,
• 75% rural area with mountainous land
• 24 country parks with different characteristics
• official tourism-related departments :
- Hong Kong Tourist Association
- The Agricultural, Fishery and Conservation
Department
> enhances the establishments of natural tourism
spots
7. External Environment Analysis-
(4) Technological
• The technology is changing fast
• Usage of the Internet becomes popular
> effective promotion channel for inbound travel
through the Internet
> via various multimedia
→increasing competitiveness in promotion among
the tourism industry
8. External Environment Analysis-
(5) Political-legal
• A Tourist Guide Accreditation System on 1 July
2004, by The Tourism Industry Council of Hong
Kong(TIC)
> ensuring the service quality of tourist guide
→ no sufficient tourist guide supplies within the
standard
9. External Environment Analysis-
(6) Social-cultural
According to
Korean National Tourism Organization,
• Believes in trees
enjoying natural scenery
• Loves to eat midnight snack
> lots of local snack in Hong Kong
10. External Environment Analysis-
(7) Suppliers
• Our business suppliers :
traffic, parks & restaurant
> more competitive with supplies in low cost
• Many destinations : free of charge
• Operation of restaurant & transportation :
not performed by our company
> relatively low cost to obtain supplies
11. External Environment Analysis-
(8)Marketing intermediaries
Several intermediaries for promotion:
• Mass media : most common
- Newspaper, traveling magazine & TV
• Social media- Internet: effective
- Facebook, Twitter & blogging
• The cooperation with Korea travel agents
• Showcase of leaflets in the airports
> comprehensive promotion
→ high cost
12. External Environment Analysis-
(9) Publics
• Chinese-Western fusion city
> attracting tourists to experience the atmosphere
• Locals love to eat, outstanding food culture
> tasting local snack & variety countries food
• Main language in Hong Kong :
Cantonese, Mandarin and English
→ a little barriers of communication
13. External Environment Analysis-
(10) Customers
• ROK : 5th HK’s Top Five Source Markets of Visitor
Arrivals in 2010
> a rapidly growing potential source market
According to HKTB,
• Spending only 2.2-2.3 night in HK
• Mostly aged 35-40 with high education levels
• Vacations with relatives, friends or spouses
14. External Environment Analysis-
(10) Customers
According to the study from UNWTO 2007,
• Most visitors travel HK independently
• 17.7% enjoying natural scenery
> ROK is a growing source market of HK
> willing to spend money on the trip
15. External Environment Analysis-
(11) Competitors
Major competitor : Eco Travel Limited
• Attracts nature-lovers
• Offers eco-tourism to international visitors
• Targets educated visitors
• Provides experienced & specialist tour guides
16. External Environment Analysis-
(11) Competitors
Comparing with our product,
> more experienced
> more resources to provide tours
→ focusing worldwide, not nationality
→ market segment is too large
17. Opportunities Threats
Demographic -Potential demand for travelling due to growth of population. -Usually only speak one language
-Population structure is getting older, meaning their traveler
behavior is different and Korean is needed in the tour.
Economy -Upturn of economy encourages Korean to travel. -Uncertainty of global economy environment would reduce the
-Increasing currency exchange rate would increase the desire of Korean to travel.
intention of Korean to consume our products.
Ecological -More tourism spots due to government support -Natural environment easily destroyed by unbehaved tourist
global warming threathen the natural habitat
Technological -Promotion can be via various multimedia. -The increase in competitiveness among the industry.
Political-legal -Ensuring the service quality of tourist guide by the -There may not have sufficient tourist guide supplies with
regulations, certificate.
Social-cultural -Korean believes in trees and loves to eat midnight snack -Korea’s holiday is not as similar as Hong Kong
Suppliers -Be more competitive by operate in low cost. -Uncertainties in the process of obtaining supplies
Marketing Intermediaries -Various channels provide comprehensive promotion to the -The cost is high if using all intermediaries.
target customers.
Publics -Hong Kong is a Chinese-Western fusion city where can - Language barriers
celebrate both Chinese and Western festival
- Hong Kong’s culture of food and drink is outstanding-Hong
Kong is a Chinese-Western fusion city where can celebrate
both
Customers ROK visitors are a growing source market and they are willing Language is the major barrier for them to travel Hong Kong.
to spend money. They like city sightseeing and enjoying
natural scenery in Hong Kong.
Competitors -Their customers market is wide range which may not provide -They are big companies with plenty resource like staff and
specific care to some kind of customers like we do tours operated.
-They already have reputation
18. Objective
• Operating local tours
• Eco and green environment
• Republic of Korean as our target market
- usually enjoy natural scenery during their travel journey
(Republic of Korea – The Asia and the Pacific Intra-
regional Outbound Series, 2007)
- the 5th major source market of Hong Kong tourist arrival
20. Target Market
Geographic
segmentation • Korean who aged 30-60
• Usually travel with
relatives, friends or
spouses
• Working people with high
Product Target Demographic education levels and
features Market segmentation purchasing power
• Offer tour guide with fluent
Korean language skills
• Position as a travel agent
target specific market or
Positioning niche market
22. Product
• Main product : One day local eco-tour
• 5 main itineraries
Hong Kong Geopark
Hong Kong Wetland Park→ Tai O Fishing village->
Ha Pak Nai→Lau Fau Shan Giant Buddha & Wisdom path
Mai Po Wetland→ Walled village-
Nam Sang Wai & King Fai Farm Kat Hing Wai
23. Itinerary(1)
Hong Kong Geopark
• Unique natural area with special geological
significance & cultural landscapes.
Route Theme Time(Hou
r)
Sharp Island Geo Trail Volcanic rocks 1
Lai Chi Wo Nature Trail Hakka culture and ecology 1
High Island Geo Trail Hexagonal rock columns 1
Ma Shi Chau Nature Trail Sedimentary rocks and 2
Geologic structure
Ping Chau Country Trail Sedimentary rocks and 3
scenery
Tai Long Wan Hiking Trail scenery 5
- 1-2 routes can be joined by the travelers within the
same day (except Tai Long Wan Hiking Trail)
24. Itinerary(2)
Tai O Fishing village->
Giant Buddha & Wisdom path
• Chinese stilt-house community
Tai O Fishing • Kwan Tai Temple and Yeung Hau Temple
village • Local shrimp paste and salted fish
Giant • Reaching the platform of Buddha
• 360o spectacular mountain scenery of
Buddha Lantau Island
Wisdom • Nearby the Giant Buddha
• An outdoor replica of the centuries old
path Heart Sutra
- lunch is included in Po Lin Monastery
25. Itinerary(3)
Walled village- Kat Hing Wai
• Outside the town of Yuen Long
• Built about 500 years ago
• Rectangular-shaped village
• Constructed mostly with blue brick walls
• Having fascinating history
26. Itinerary(4)
Mai Po Wetland->
Nam Sang Wai & King Fai Farm
Mai Po
Nam Sang Wai King Fai Farm
Wetland
• As a Nature • A wetland in • Inside Nam
Reserve eastern Yuen Sang Wai
• home to Long • Experience of
diversity of • Ride on bicycle nurturing the
other wildlife • Nature- mullet
• explore the oriented tour of
nature and the fishpond and
wetland fishery culture
ecology
- barbecue is included in King Fai Farm
27. Itinerary(5)
Hong Kong Wetland Park-> Ha
Pak Nai-> Lau Fau Shan
• Home to various wildlife
Hong Kong • Themed exhibition galleries, souvenir
shop and resource centre
Wetland Park • Outdoor experience
• Partially covered by a wetland
Ha Pak Nai • Sunset scenery
• Fishing
• A fishing village famous for seafood
• Tasting fresh seafood in seafood restaurants
Lau Fau Shan • Traditional tea dumplings, salted
fish, shrimp paste and dried oyster
28. Product
• Guided by a certified tourist guide
- proficient in Korean
• 6-10 participants in each tour
• Image : green
- nature, woods and leave
29. Price
• Our average cost per tour: HKD$2,500
• By observations from other competitors, common
price: around HKD$500
• set a slightly higher price than others
• HKD$550-600 (depends on the cost of different
tours)
30. Price
• Psychological pricing
-Judgment of our product’s quality by customers
• Prestige pricing
-Higher prices than other competitors to create an
image of high quality
31. Price
• Special-event pricing
-Used in peak seasons
> attract more people to join our existing tour
> maximize the revenue per tour.
32. Place
For direct marketing channel,
• Official website
- details of tours as reference
• Online booking service
- for reservation
• Hotline service
-for enquiry or reservation
> lower the cost of distribution
> easier to control the performance of distribution
33. Place
For one distribution channel level,
• Hong Kong Tourism Board (HKTB) outsourcing tours
• Social media (e.g. Facebook and Twitter)
- most updated information & reservations
• Korea travel agents
- selling our products to the customers
> reach our target customers more easily
34. Promotion
• From a study of UNWTO 2007,
ROK visitors usually obtain information via Internet
and friends’ recommendation.
Internet
• Official website- forum & blog
- for discussion, feedback & answering questions
> increase the interaction
> build a good customers relationship
> reach worldwide with the least cost
35. Promotion
Social Media
• Facebook - Facebook page
- with up-dated information
• Youtube - short videos
- introduction of our tour itineraries
Visualizing our service by video & photos
Here is our promotion video:
http://youtu.be/xwYDEVu2wmg
36. Promotion
Contest
• campaign -photography/ blog competitions
- photos taken in our tour & sharing their feelings
- one free tour service as price
> drawing attention & attracting revisit customers
Leaflet
• leaflet at the HK Airport
> promoting to potential customers
37. Implementation milestone
Date Program Details Person Budget
responsible
1st month Introduction To launch our tours to public. Started the website and Marketing $10000
Facebook page. Upload the video on Youtube. Place Manager
leaflets at the airport
3rd month Market reaction To check the feedback on the forum of our official Marketing $4500
website and do adjustment and compensation if there is Manager
any dissatisfied feedback.
5th month Advertising campaign To hold a photography contest on Facebook and official Marketing $3000
#1 website Manager
6th month Make a new video and A season change after 6 months, we need to make a Marketing $8500
leaflet new video and leaflet to introduce different activities in Manager
the tours
8th month Advertising campaign To hold a blog writing contest on Facebook and official Marketing $3000
#2 website Manager
10th month Test of market Conduct a market survey online and from customers. Marketing $6000
recognition See whether they can recognize our company products. Manager
12th month Design new products Design new products to gain more market share and Marketing $13000
and enhance products enhance products based on the survey we did Manager
38. Marketing Budget
• Average Cost per tour: $2438.4
Tourist guide salary: +$700 = $3138.4
Average Cost per tourist: $392.3
• Expected Fixed Cost: (Per annum)
Fee for website $600 ($50 per month)
Promotion $36000 ($3000 per month)
$36600
• Breakeven = Fixed cost/(Selling Price- Variable Cost)
=$36600/ ($600-$392.3)
=176.2units
→177 tours per year to breakeven
• Expected Sales :$106200