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Creating credibility through web-based marketing : Case of a start-up company in tourism business

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The secondary problem is finding the most efficient web-based marketing communication tools to reach the target group. The overall aim of the thesis is to present cost-effective web-based and non-web-based marketing communication tools that gain credibility for a start-up company.

Company Introduction

Internal Analysis

SWOT Analysis

Internal Factors

According to the theory of the necessary qualities of an entrepreneur, a commission agent is considered the ideal person for business. Since the owner and her husband are entrepreneurs, finding time for family matters will be challenging.

External Factors

Problems with partners can also arise, which can affect the experience of the entire trip. The fact that customers will be flying from different parts of Germany increases the risk of delays.

Product Description

Another risk factor is that in rural areas it is difficult to have the right or necessary equipment for certain operations. It can be in the form of nature, culture and art (New Atlantis 2013.) Many tourists, especially frequent visitors to a particular destination, seek experiences based on the "authenticity" of the local area.

The Experience Economy

At the last level, called spiritual level, a positive emotional response is experienced by the customer, followed by a personal change (Lapland Center of Expertise for the Experience Industry 2009.). The last element is interaction, which is in charge of a successful communication between the product and customers (Lapland Center of Expertise for the Experience Industry 2009.).

Figure 1. The Experience Pyramid (Lapland Centre of Expertise for the  Experience Industry 2009)
Figure 1. The Experience Pyramid (Lapland Centre of Expertise for the Experience Industry 2009)

External Analysis

Competitor Analysis

Since the company has a clear business idea that it offers its services only to German-speaking tourists and that it offers only authentic cultural experiences in Lapland, the number of direct and indirect competitors is quite small. As a result, it was determined that there were no direct competitors in the market to compete with. However, there are few indirect competitors with a similar vision, whose operations should be carefully monitored in the future, as they can attract potential buyers from the same segment.

Competitors in Scandinavia

Both the local offices of the Rovaniemi Development Center (Rovanimen Kehitys) and the Centers for Economic Development, Transport and Environment (ELY-keskus) were visited by the Commissioner in the fall of 2013. According to both institutions, the Commissioner has no competitors in the Finnish market and its business idea is unique (Rovaniemen këvets 2013, ELY-keskus 2013.) On the other hand, there are two competitors that are worth mentioning as they can attract customers from the same segment. They share a different vision than the commissioner, but can be considered indirect competitors on the Scandinavian market.

They offer nature based recreational tours for women (8 seasons 2013.) The other company is a Finnish company operating from Muonio. They have two packages in German only for German speaking customers during the winter season. However, they have ready-made packages based on Lappish activities for larger groups, up to 15 people (Regio Arctica 2013.).

Table 6. Competitors in Scandinavia
Table 6. Competitors in Scandinavia

Competitors Worldwide

Small group packages to the North Pole, Arctic Canada, Alaska, Greenland, Iceland, Spitsbergen, Russia and Antarctica.

Pricing

The prices of the packages, offered by the client, include all transport costs during the tours, so both train and car costs. The owner is going to own accommodation-related equipment such as pillows, blankets, some kitchen utensils, some fishing equipment and decorations. As mentioned, customers from Central Europe expect high quality, and drinking alcohol while eating is also a common habit (Bohn 2013). However, transport to Finland will not be included in the pricing strategy, at least not at the start of sales. operation.

It would be quite a challenge to book flight tickets for each participant, so it is wiser not to offer this additional service in the price. Of course, assistance will be provided by the commissioner for those customers who require assistance in choosing and booking their flights to Finland (XXX 2013.) According to a study conducted by the Allensbach Institute, income level has the greatest impact on travel of German behavior. As stated in the table below, over 10% of expenses were spent on premium travel by German travelers in 2011, figures which are quite promising for the commissioner.

Table 8. Relation Between Income and Amount of Booked Tours Online (IFD  Allensbach 2012)
Table 8. Relation Between Income and Amount of Booked Tours Online (IFD Allensbach 2012)

Communication Objectives

Target Groups and Segmentation

The people in this group are curious travelers who want to visit places that are unique and have not yet been touched by mass tourism. They want to experience and walk in the untouched nature, which in their opinion is found in Finland and Norway out of all the Scandinavian countries. These travelers want to get away from their average normal life and want to get to know and experience a new exotic culture through the local people, which would ultimately lead to a life-changing experience (Rannisto 2012, 10.).

Cultural tourists want to fully engage with the destinations and interact with local residents. They are constantly looking for authenticity and spectacular experiences (Smith These travelers want to visit local places such as bars, supermarkets and restaurants where they can meet local people and learn something new about their exotic culture and lifestyle. Table 11 shows the activities that Modern Humanists want to experience in Finland.

Table 10. Characteristics of Senior Free Travelers (Rannisto 2012, 12)  Characteristics of Senior Free Travelers
Table 10. Characteristics of Senior Free Travelers (Rannisto 2012, 12) Characteristics of Senior Free Travelers

Marketing Communication Mix

It offers a mixture of benefits such as samples, gifts are distributed to the audience, and the company name is mentioned and highlighted during these events (Chron 2013.). Although public relations, which is another form of impersonal communication that reaches large audiences, the company has less control (Chron 2013.).

Web-based Marketing Communication Tools

Social Media

Social media can also be described as an online platform where people can participate in a conversation. Since social media has become so popular today, being present and active on these channels is a critical element of customer care for businesses. Social media includes all online communication channels together and enables its users to interact, collaborate and share content.

It functions as a free microblogging service and allows members to share short messages called "tweets." The figures indicate that the niche segment can be easily reached via various social media networks. These social media channels should contain less text than the blog, which would function like an article or a magazine.

Table 13. Top 10 Social Networks Among Internet Users in Germany, 2012  (E-Strategy Trends 2012)
Table 13. Top 10 Social Networks Among Internet Users in Germany, 2012 (E-Strategy Trends 2012)

Blog

The blog can be launched separately or through Facebook by including the blog link on the company profile. Each new post helps search engines to find the blog (About.com 2013.) The most effective topics in the case of the commissioner are posts about everyday life in Lapland illustrated with spectacular photos. After declaring the username, the link to the blog can be left, so it is always available to other users.

After signing up for the most popular sites, for example Facebook or Twitter, a link to the blog can be posted in the user's profile. Including the blog's URL in your email signature, business card, and in pretty much every possible place will increase traffic (About.com 2013.). If the price is tempting enough, more and more people will subscribe to the blog.

Table 15. Online Social Media Activities by Age Distribution in the First  Quarter of 2012 (Destatis 2013)
Table 15. Online Social Media Activities by Age Distribution in the First Quarter of 2012 (Destatis 2013)

Search Engine Optimization

According to the table below, more than 80% of Germans search for information about consumer goods and services on the Internet. The recommended keywords are: Lapland, Arctic holiday, art/culture holiday, creative holiday, experience holiday, individual holiday, name of the different events and festivals, summer and winter in Lapland, Finland.

Other Recommended Marketing Communication Tools

Trade Fairs

According to McCabe, in Germany trade fairs have a bigger role than in any other country in the world. These events often bring people and companies together, who otherwise might not even have heard of each other. The commissioner is going to visit the Culture Travel Fair organized in Hamburg at the end of February 2014 (XXX 2013.) To find out which are the most interesting and important exhibitors to visit, the map of the fair should be checked carefully, before proceeding participate in the event.

Smaller trade shows may offer more interaction with the exhibitors than a huge trade show full of attendees. Most of the exhibitors put a bowl or box at their table for this purpose, since exhibitors spend a lot of money to participate in these events, they don't want to miss out on potential customers. These companies will use the time to contact the participants after the fair (Entrepreneur 2013.).

Word-of-mouth

Web-design

On the other hand, visually appealing images such as photographs and logos can increase interest. It is recommended that a professional photographer be hired by the company to provide the best possible quality for website illustration (Arrow internet marketing 2013.). Responding in an engaging way to every comment left on the company's website or blog also builds trust.

For example, an "About Us" section that describes the company's history, followed by pictures of the owner and employees, is a great way to build trust. A separate "Leave Your Feedback" section allows customers to share their experiences. If a company acts honestly and is open to negative or positive feedback, it will increase the trust of future potential customers (Arrow internet marketing 2013.).

Recommendations

The website contains reviews and opinions about those tour companies that are listed on the website. The site has more than 260 million monthly users and over 125 million reviews covering more than 3.1 million accommodations, restaurants and attractions worldwide. All services on Trip Advisor are free; therefore it is an excellent and cost-effective marketing communication tool, especially to reach foreign visitors (Trip Advisor 2013.).

Another free marketing communication tool recommended for business is Google Maps, provided by Google. Businesses wishing to be listed on Google Maps must create a Google account and will receive a free listing space on the map. When visitors search for information on Google Maps, the business address will automatically appear on the map (Google 2014.).

Terms of Payment

Adresa: http://www.da- group.co.uk/index.php?option=com_content&view=article&id=18. Adresa: http://serene- chen.com/blog/use-online-marketing-to-build-credibility-and- develop-a-presence-in-your-niche/.

Table 17. Online Banking Activities by Age Distribution of 2012 (Destatis  2013)
Table 17. Online Banking Activities by Age Distribution of 2012 (Destatis 2013)

Imagem

Table 1. SWOT Analysis of the Company
Figure 1. The Experience Pyramid (Lapland Centre of Expertise for the  Experience Industry 2009)
Table 3. Characteristics of an Exotic Holiday Destination Described by the  Modern Humanists (Rannisto 2012, 15)
Table 5. Summer and Winter Activities in Finland that Interest the Modern  Humanists (Rannisto 2012, 31)
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