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Evaluate Marketing Opportunities for New Zealand Tourism

Essay by   •  February 7, 2011  •  Research Paper  •  3,013 Words (13 Pages)  •  1,738 Views

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Introduction

Analysing marketing opportunities is importance in the marketing planning process. It is to analyse the long-run opportunities in the market so as to improve the business unit's performance.

This assignment is to evaluate marketing opportunities of Abel Tasman National Park Experiences (ATE) that has a very interesting in marketing strategy to develop its credibility in tourism. Many changing of marketing system have been used in ATE and it is need to be analysed for expand our knowledge about marketing.

ATE is located in the northern coast of New Zealand's South Island. It features subtropical forest, spectacular stretches of coastline, sheltered bays and unspoilt golden beaches. ATE is become the dominant player in the tourism industry catering for Park visitors. It is positioned at the top end of the market and offers Park visitor's luxury lodge accommodation, a water-taxi service and guided bushwalking and sea-kayaking tours. It has and annual turnover in excess of several million NZ dollars.

The business began by accident in 1977 after Cyclone Allison destroyed the Park's only water-taxi and a local resident, John Wilson, found his motor launch in demand to ferry friends and acquaintances to and from the Park. He established a regular water-taxi schedule, allowing passengers to board at Kaiteriteri Beach in the Park's southern boundary for drop-off and collection at any one of six beaches within the Park. He involved other family members in his growing business. He had the key insight that launch-cruise and water-taxi services were merely one element of a latent marketing opportunity. He also protected a concession from the Department of Conservation to operate guided bushwalking and sea-kayaking programs. This strategic expansion of the enterprise's commercial base allowed John to realise both these aims.

Early 1990s John Wilson stepped back and ATE's general management role was taken over by his eldest son, Darryl. This was a good time to develop a clear strategic direction for what was now a mature enterprise in a fast-evolving and increasingly competitive market.

Thus, this assignment is to evaluate the marketing opportunities after Darryl Wilson take a management role for ATE. We can see there are so many changes since he took this role of management that is acknowledge us in marketing subject that can be useful in the future. ATE's marketing strategy challenge involves giving direction to two different core businesses; guided walking, kayaking and accommodation services. These comprise the heart of the business and are the easiest to manage from a strategic marketing perspective.

1. Marketing Opportunities for Wilson's Abel Tasman National Park Experiences (ATE)

1.1. New Zealand Tourist Market Analysis

* In the year ended March 2005, NZ tourist market was NZ$6.14 billion, down 2.7% from previous year.

* Expenditure by the Holiday market raised 9% to NZ$3.2 billion while education spend was down 30% to NZ$621 billion.

* Package visitors were 13% visitors, similar to 2001 and 2002 pre-SARS. Tour Groups are increasing but are still lower than pre-SARS period. Just over half visitors were Fully Independent Travellers and around a third were Semi Independent Travellers, consistent with the year ended March 2004.

* Accommodation usage shows an interesting and consistent pattern. 47% of International visitors had stayed in a Hotel, more than any other type of accommodation, while 39% had stayed in a private home of friends or relatives.

* When length of stay in each accommodation type is analysed, more nights are spent in a private home than any other accommodation type.

* International visitors to New Zealand are most likely to travel by car or van than any other transport type. In the year to March 2005, 48% International visitors reported using a car or van to visit New Zealand. The most next used transport is domestic air travel, with 29% of all International visitors are taking at least one domestic flight.

* Nearly two-thirds of international visitors (63%) had not visited any other country on their way to or from New Zealand. Just 37% visited some other country with 67% of them also visiting Australia in addition to New Zealand. Of these multi-country visitors, 25% were from the UK and 15% from the USA. Just under half of International visitors were repeat visitors with 53% of them being from Australia and 9% from the UK.

Overseas Visitor Arrivals and Forecasts 1987-2007

Source: McDermott Fairgray, Statistics New Zealand

Over one million holiday arrivals are forecast for 2001. The high growth rate of holiday visitors - currently 13.3 percent - is expected to slow to 9.2 percent in 2001 and then to 5.6-6.7 percent a year for 2002 to 2007. This results in an average annual growth of 6.6 percent for holiday arrivals over the 2001-2007 period, compared with 6.1 percent and 6.3 percent for VFR and business visitors respectively. Growth in VFR visitors is forecast to drop from 15.6 percent in 2000 to 7.0 percent in 2001, while growth in business visitors is forecast to increase from 4.7 percent in 2000 to 5.7 percent in 2001.

1.2. The ATE's Macro-Environment

The marketing environment within which a company operates is dynamic. It's consists of a micro-environment and a macro-environment. The macro-environment consists of six types of forces: demographic, economic, natural, political, technological and cultural forces. A company's marketing strategy must take into account changes and trends in these environments that can present opportunities or pose threats. A successful firm is one that regularly modifies it marketing mix and strategies to adapt to these changes.

Below I outline briefly the six types of macro-environmental forces, and how they may affect the ATE market.

1.2.1. Demographic Environment for ATE

New Zealand visitor arrivals indicators on 2005 are:

* 18-34, Male / Female

* Student, part-time employee, full-time employee

* Mostly Australian, goes to the bar or nightclub for socialize,

* Like

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