Initially Sephats Tours will focus on the local market in the adventure travel sector. The target customers will mainly include foreign tourists intending on sightseeing various attractions.
Our marketing strategy will emphasize focus. We are a relatively new company on the market and hence must focus on certain kinds of services with certain kinds of clients. Initially the business will focus on the local market, expanding into the regional market as time progresses, and as we gain the necessary experience. Therefore the initial aim will be to instill awareness and confidence in our services. In order to achieve its goal of becoming the premiere mobile operator, Sephats intends to adopt the following strategies:
Our strategy is to grow the business by nurturing clients, differentiating the service from our competitors, particularly through service and staff behavior. All criteria from customer satisfaction, service provision, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages as areas for improvement. Alliances and collaboration with hotels, lodges and travel agencies are to be adopted as strategies for market penetration. Training will be conducted on a regular basis to ensure that our staff is fully meeting customer expectations.
Through the implementation of a fair, effective and competitive remuneration policy we intend to optimize our human resource output and advancement. We need the right people in the right place at the right time if we are to ensure optimum growth. We intend to develop our team so that our people can grow as the company grows - a mutually beneficial relationship. We are currently vigorously searching and recruiting the right people for our organization.
We intend to enter a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond timeously to the market dictates and to provide custom designed travel excursions to travelers. Our key personnel will have a wide and thorough knowledge of the areas we intend to take travelers, which will go a long way towards penetrating the market. Below are the summarized strengths, weaknesses, opportunities and threats.
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 sources including:
One core element of our strategy will be that of differentiation from our competitors. In terms of marketing we intend to ensure that our name and services are marketed on an extensive basis so that customers are aware of our existence. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Our service marketing will strive to ensure that we establish long relationships with clients.
Initial marketing and training expenses will be relatively high as we seek to become known on the market and staff get trained in the professional provision of our services. This will be brought about by the development of sales literature and advertising expenses. As our market share increases and capital is generated, further marketing programmes and the expansion of those in existence at the time will be undertaken, to ensure market development. However with time these programmes will start generating revenue for the business, which we shall in turn reinvest.
Sephats Tours will be competitively priced in relation to the dictates of the market. Due to the introductory nature of our services we intend to implement a penetration pricing strategy which will ensure that potential customers are not frightened away by our prices, up until our services are appreciated and fully operational. However this will dictate that our costs are prudently kept so as to ensure our financial goals come to fruition. This is reflected in our prices as stated in the services description of this plan charging close to PX per kilometre per person. Each trip will include an average of eight to ten persons.
We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to our employees to assure good service are balanced by the cost we charge to the customer.
This strategy will be based primarily on informing potential customers of the existence of our services and making the right information available to our target customer. The intention will be to highlight the benefit of utilizing our service(s), which will include:
In such a market we cannot afford to appear in or produce second-rate material with poor labels that make our services look less than they are. Hence we intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and pads. We intend to spread the word about our business through the following:
Sephats Tours will also be advertised through professionally done brochures, and other such sales literature, which allow enough detail to be communicated about the services offered by the company. This literature will be mainly targeted at potential clients and placed or made available at strategic points, such as travel agencies. With time we also intend to utilize billboards to advertise ourselves, likewise located at strategic points. Hence we intend to design and put up posters communicating the services we provide located around hotels, lodges, airports and other such areas where tourists typically pass by. However in doing so we always intend to obtain the consent of the respective authority.
In cases where the opportunity of obtaining a large order exists it may be necessary for the top management to go out personally, especially considering the fact that we are still a relatively new firm on the market. However this shall be the situation in the majority of cases due to our relative infancy.
In all the above we intend to communicate our ability to deliver a good service that will satisfy the customers needs. Hence our messages will influence the engagement decision of prospective customers by emphasizing our customer focus and, persuade prospective clients that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in tandem so as to maximize their effect.
Sephats intends to offer a unique service to all of its customers, primarily travelers, so as to position itself as the premier travel provider in Botswana. This shall be undertaken through provision of affordable, comfortable and luxurious transport as well as informative insights about the various sights and areas. These excursions will be tailored to the individuals'/groups' interests and thus providing enjoyment and satisfaction. Our competitive advantage shall be our customer orientation and friendly staff who shall go at lengths to ensure the customer is served and fully satisfied.
Through our reasonable charges and satisfying excursions we intend to attract a large portion of the market, both directly and indirectly. Hence all promotional material and campaigns shall be directed to fulfilling our intended positioning on the market.
For the short term at least, the selling process will depend on personal selling/networking and advertising to lure and inform potential customers about the services we offer and the benefits of utilizing our services. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the service category.
The following chart and table show our planned Sales Forecast for the next three years.
In today's competitive environment it is becoming increasingly essential for organizations to concentrate on their core activities so as to gain and maintain a competitive advantage. This brings out the advantage of undertaking strategic alliances with organizations that the firm may benefit from and visa versa. Sephats Tours intends to establish strong partnerships with several hotels, lodges and travel agencies so as to be able to deliver customer wants. These alliances will assist in ensuring that we obtain a regular stream of customers from various establishments.
At this writing, strategic alliances with several companies are possibilities, given the content of existing interest and discussions. However ultimately it is the quality of our service(s) and the skill and experience of the staff that will attract customers. During the start-up phase word-of-mouth from satisfied customers will play a large part in increasing awareness and gaining exposure for our services.
Sephats Tours recognizes the fact that as it is involved in the tourism sector of the overall economy there is need to be involved in a wide range of social responsibility engagement programmes so as to invest back into the community in which we operate. We believe that through our social responsibility programme we can indeed assist in improving peoples lives. We believe that if we are to contribute to development in a sustainable way, we need to support numerous projects.
However, before we commit ourselves to projects we intend to ensure that they will be beneficial to the community, particularly in the long term. We know that we cannot address all the development needs of our society. Where we can, we assist and sometimes may form partnerships so as to increase capacity.
One of the ways the company intends to be involved in corporate social responsibility is through organizing cleaning campaigns with various communities. Basically this will involve briefing the community on the advantages of having a clean environment, now and in future. In order to entice the community to get involved in these campaigns, as well as to increase awareness about our business and services we intend to give out T-shirts and caps with our company name. These campaigns will also assist in us being perceived and appreciated as a good corporate citizen.