Pest Analysis On Target Market Tourism Essay

Sri Lankan air hoses planned to establish new service utilizing hot air balloons, to go inside Sri Lanka. They come up with three packagers as really get downing point. One bundle is for wild life lovers and they focused at Uda Walawa National park. Second finish is to cultural trigon, where Sigiriya and tonss of traditional valued ruins are based. Third bundle is to Horton Plains to people who want to experience cool clime. All packagers include one dark stay at a luxury hotel on full board footing. Up and down winging clip will be maximal 5 hours, as within that clip scope we can make our above mentioned finishs.

This subject is being investigated to minimise the hazard of establishing new service and to place nature of the concern.

Below study covers how we can run this new service in profitable manner and what are the failings and strengths, chances we have. As good it includes how we can full to current market by utilizing Sri Lankan air hoses current back land in the trade.

PEST analysis on mark market

It ‘s really of import to make PEST analysis to understand how macro environment can consequence on new service.

P- Political

Government regulations and regulations- hot air balloon services affects civil air power regulations and ordinances.

Employment legalization- EPF, ETF, verification after two old ages.

Obtain certain civil air power licenses- this service demand to hold pilot licence, air operator certification.

Authority from ministry of civil air power – demand to register and acquire valid air runing figure issued by civil air power.

high revenue enhancement degrees to be paid

authorities stableness

environmental Torahs

Safety of riders who on board the balloon- due to safety ordinances maintain by civil air power, cant board certain disable people, patients who are under interventions, pregnant ladies, kids who ca n’t make balloon basket them self ( unaided Passengers ) , below 16 old ages old childs should accompanied by grownup etc.

E-Economy

National and planetary involvement rates

Low purchasing power, high unemployment rate

Business rhythms can impact for foreign riders who look for our service.

As this is high dearly-won vacation bundle, Floating dollar rate might impact.

Global economic crises can impact single client income and it straight affects to concern.

S-social

Birth rate, population growing rate affects as work force effects to national income.

Tendencies and societal factors affects depend on the company who operates service, since Sri Lankan air hoses has good image among society it ‘s easy to acquire in to the market.

Income and societal mobility- for such a holyday experience people need to hold good income.and besides as we are concentrating on high category society societal mobility affects our service.

Age distribution- we are largely concentrating on aged people who are in their 40s, as they like to hold more out door leisure experience ‘s with unagitated beautiful environment. And full-blown people are stable on economically excessively.

T-technology

Using new communicating engineerings inside hot balloon while drive, such as cyberspace, facsimile and telephones.

Use new engineering to present new service- cyberspace advertizements, electronic mails

As whether status effects for balloon drives, we can utilize new engineering to place current conditions status on different states before the drive.

This can utilize to acquire instant consequences and how passenger’sfeedback about balloon drives.

Technology can utilize to follow where balloon is ( GPRS ) and to riders to pass on with their friends and households to explicate their experience on board at the same clip when they are going.

Micro environment

Employers – employers are the people who have to the full responsibility to run the concern keeping quality of the service with standard level.So it ‘s of import to engage right people with relevant accomplishments and besides can better their cognition and abilities via preparation plans. Since this is client service related country duties and safety comes in the first topographic point. Sri Lankan air hose is a company who believe employers reflect company position by their training and behavior. Besides employers must guaranty of safety on board and must take to the full duty about our riders on air. Besides to work on clip, be loyalty to company by giving their maximal service.

Customers- clients are the lone people where company can acquire income. With the current market competition we have to offer something new to clients who are ever looking for new ways to pass their holiday. By giving maximal satisfaction which value to the cost they bear, we can catch more clients to our concern.

Suppliers- providers has duty to supply quality merchandises on clip. And besides has duty to maintain internal communications out of rivals.

Family- as this is client service related country, sometimes we ca n’t work precisely as per the agenda on clip. So employers households has to understand the nature of the concern and has to give their to the full back up to employer for his occupation.

Owner- proprietors have to pump money for new experiments every bit good as should give full support by developing new pilots and land staff for new service.

Besides under micro environment we can place force per unit area groups, bankers, stockholders, and media.

SWOT analysis on mark market

S- Strengths

Strong trade name name- as we are traveling to establish new merchandise under Sri Lankan air hoses, clients have well acknowledgment and we can do good image on them.

Natural resources- Sri Lanka are full of natural resources where we can run our balloon service all around state with fantastic images.

Good repute – as we operate under Sri Lankan air hoses

Location of the business- we focus on traditional valued topographic points, wild life attractive countries, natural resources particularly where most tourist attractive force is at that place.

As we have staff, pilots who used to this field it ‘s easy to run swimmingly.

Number of old ages in the concern

W-weaknesses

High cost structure- fuel which usage and balloon itself extremely coasted

Lack of market expertness as its new field to Sri Lanka

Weather conditions- ca n’t run balloons on bad conditions and so we have to alter the agendas, so could lose client satisfaction.

Balloons ca n’t make all the best natural resources.

Due to height and hazard we ca n’t let childs less than 8 old ages on board and it may consequence to household Tourss.

As the safety jurisprudence in Sri Lanka rider should be able to acquire in and out to the balloon basket unaided, so disable people and some aged people affects that.

O-opportunities

Wholly new experience to Sri Lankan touristry.

Sri Lankan air hoses traveling in to new market field

Turning involvement of out-of-door activities.

Targeting bing clients at Sri Lankan air hoses.

T-threats

New rivals for same concern.

High revenue enhancement on service.

New air power ordinances.

Unable to make in-between category clients due to high cost.

SEGMANTATION

Demographic cleavage

Depending on age and income, their behaviors and life manner alterations. Most of an ageing population that is going more active and the fact that out-of-door activities are more mainstream and stylish than they used to be. Activities are besides now seen as a manner in which to loosen up and mentally wind off on a holiday.and besides they are holding good income instead than immature crowd to pass on luxury tour.and we target households every bit good.

Geographic Cleavage

As we are runing circuit balloon rides it ‘s of import to understand geographic cleavage, such as where we should turn up and where to go. In that instance we can concentrate to establish on metropolis countries where most people earn good income and want to acquire some relaxation from their busy life manners and to run Tourss at state side.

In the beginning we are turn uping balloon runing points in Ratmalana air force ground forces cantonment and Katunayake international airdrome land. Chiefly we focus to go cultural trigon where most tourer ‘s attractive force won. As good Uda Walawe national park and Horton fields are includes our circuit packagers.

Behaviour Cleavage

Behaviour cleavage shows the ground why people purchase our service.We can advance it under occasional grounds such as, birth yearss, anniversary jubilations and marrying proposals. But holiday circuit comes to the first topographic point as most people will utilize this service merely to hold new tour experience.

Lifestyle Cleavage

Agers are another group identified by the selling industry. We focus on people in their 50 ‘s retired from a profession, and have a high disposable income with clip on their hands.Elderly population is adventuresome and experimenters, as they have spent their past lives working difficult and they seek enjoyment from their staying old ages and have the income to pass on luxury items.so we can concentrate on them most other than immature crowd.

Consumer purchasing behavior

When client purchases high value merchandises, they ever go through purchasing procedure.

Ex- aged twosome is seeking for vacation program, where they have n’t experienced yet

Necessitate recognition-customer necessitate to happen out what type of holyday program they want

Designation of alternatives-they discuss with household and friends, or look into web sites for options, to seek what type of holyday program they can acquire.

Evaluation of alternatives- client will travel through how they can acquire maximal satisfaction on their journey, in this instance as we are concentrating on aged people we can direct them particular bundle, precisely fit to their programs or with sole bundle

Decision-then client will do a determination to buy our holiday bundle. Our duty is to do purchasing procedure simple and flexible.

Post purchase evaluation-it ‘s really of import to do client feel that he purchased right merchandise, without giving any uncertainty about service he purchase. We can make it by maintain making publicities about new service.

Table 01: Targeting

After cleavage company needs to place mark market and mark on it.

Hot balloon holyday bundles

Age

Aged crowd and households

juncture

Anniversary jubilations, birthday jubilations, holyday Tourss, matrimony proposals

Benefit sought

New travel experience on air, luxury air tour + hotel bundle

gender

All genders

Loyalty

Existing riders in Sri Lankan air hoses, can utilize their fly stat mis ( Fly smiles loyalty card ) to subtract air menu.

Positioning

Making a alone place in the market and making a typical topographic point in the heads of mark market about our merchandise, offers, trade name and serviceorganization. In that instance we have to come up with alone selling point.

Alone merchandising point

As we operate under Sri Lankan Airlines we have good trade name name among others. Other than that as alone merchandising point, house traveling to fall in these balloon circuit packagers combined with Sri Lankan air lines milage programme. It means whenever riders purchase our Balloon packagers depending on the milage they travelled, they get free air tickets to go other states free of charge.

Product/ service developed to prolong competitory advantage

Differential advantage this service offers than other rivals

We offer different types of circuit packagers. Ex cultural trigon, wild life experienced tour bundle to Uda Walawa, bivouacing tour bundle to Horton fields.

Features, advantages and benefits

As extra benefits they can gain free air tickets to go overseas. We provide air tour +full board luxury hotel nightlong stay.

Branding

Branding is one of the most of import things in a product.as we are lunching under Sri Lankan air hoses logo, the lone national calling of Sri Lanka. It has good acknowledgment among Sri Lankans every bit good as aliens. So it ‘s easy to trade name our new service under Sri Lankan air hoses.

Place – how distribution channel plant

We distribute our service on Business to client footing. That means straight from Sri Lankan air hoses to our clients. We would wish to utilize sole distribution as it makes control all over the concern under same house and it helps to keep service quality and equal monetary value.

Walking clients will ever helped by our staff at any Sri Lankan air hoses fining counters every bit good internet web site and 24 hours call lope will assist clients to make us to make buying.

Reservations should make 7 yearss prior going.

Operating points will be katunayake international airdrome and Ratmalana Air force cantonment.

We will be supplying conveyance to all locations ( from launch site to hotels ) . Passengers will be pickup and bead to their doorsill excessively.

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Monetary value scheme

This is sole vacation bundle where merely first category people seek. We can categorise it as premium pricing because with it high monetary values it reflects the clannishness of the service.This is an country where clients happy to pay more, where they can non acquire same service from any other house. Such high monetary values are charged due to significant competitory advantage because no other rivals due to authorities barriers, regulations and ordinances, high cost besides due to company and selling aims.

A new commercial-made hot air balloon will be about approximately $ 20,000 to $ 30,000. The propane usage as fuel and the burner which heats the air inside the envelope by and large costs $ 30- $ 40 and stopping points for one to two hours of flight. Sing pilot coursers, land handling fees, nutrient points and hotel coursers we can come up with monetary value.

For full luxury private circuit for two people -Rs.75000.00

For household package- maximal sixpeople, Luxury package- Rs98,000.00

Above bundle includes –

Pickup and bead from to your door measure.

5 hours fly clip

Full board one dark stay at luxury hotel

luxury vehicles will be arranged to go land site to hotel

Camping installation for Horton plains bundle, vehicle drive for Uda Walawa bundle and cultural trigon circuit packagers can be arranged with extra cost.

bubbly or soft drinks will be served during flight

can pre order any nutrient points to devour winging clip

travel certification will offer terminal of the circuit

Can set up surprise cards/gifts /cakes if necessary.

All orbiter installations will be provided during the flight free of charge.

Promotion activities to accomplish market aims

As its new experience and its Niche market has to make mass publicity on our service. Since we are aiming on certain crowd it ‘s really of import to place how we can make them.

As we are runing under Sri Lankan airlines we can utilize our client base and place our top category clients who purchase our vacation packagers and advance our new service through electronic mail or personal call.

We can make Television advertizements, commercials – when there are environment related programmes such as wild life programmes, and we can patronize those and advance our new service. And can seek to do new tendency of Tourss by giving thought through advertizements.

We can maintain cusps, broachers and brochures on board and run video cartridge holders each and every air trade every bit good as all fining counters.

We can rede our commercial clients who fly with Sri Lankan air hoses ever, which are keeping fly smilings frequent circular cards, sing this new service and promote them to utilize it in order to derive more fly stat mis.

Offer free Tourss for celebrated people such as histrions, politicians and cricketers and do short commercial advertizements base on their circuit.

Marketing Mix- 7’Ps

People- company has to enroll right people with appropriate working abilities on related area.Since this is passenger service related country, it ‘s really of import to engage people who have good experience on client service, so decided to engage Sri Lankan air hoses land staffs who have work experience already on same field with appropriate preparation.

Process- from the first point of reserve boulder clay rider ends his circuit it ‘s our responsibility to fallow up client demands and fulfil those. Promote riders to give feedback about experience.

Physical Evidence- when it ‘s an intangible service, physical grounds holding most of import function. Peoples are buying our circuit service to bask relaxation together with natural resources. So our service from the land managing itself, we need to hold polite service with unagitated environing with eco-friendly environment.

Planing selling mixes for different sections in consumer markets

We plan marketing mix for clients who do non involvement on our service and aiming on bing clients, and the ground of non-buying clients

Table 02: Ansoff ‘s Matrix

Existing merchandise

New merchandise

Existing market

Make more Television commercials

Introduce fly smilings loyalty programme to new clients

Locate more operating locations / more tour packagers

Introduce monthly payment strategy.

1. Introduce tour packagers with low cost, for in-between category sections.

2. Introduce new service where clients can take their ain launch site with their ain holyday program.

3. Introduce tour packagers to remain more than one dark with more flying hours.

New market

Travel overseas from SriLanka

Start hot balloon service runing from abroad

Focus on immature crowd offering safari circuit packagers in low rates.

Get support from travel agents/ other air hoses to sell new service by giving portions on net income or discounted rates.

Start new escapade tour service such as nightlong stay center of jungle, mountain mounting.

Service selling

Service, clients have to see it so and at that place. When it ‘s non possible to devour it at the same clip we offer clients have right to oppugn sing pay back processs.

No-show- if any rider no-show on peculiar travel day of the month, payment non-refundable. But can rebook with a punishment for another travel day of the month.

Flight vouchers are valid for 12 months from publishing day of the month

Cancellations- day of the month modifiers are possible with day of the month alteration fee, but have to inform 72 hours prior to departure to avoid cancelation fee. If fails to inform full cancelation fee may applies.

Tickets are movable to another party.

Booking should do 7 yearss anterior going and exigency engagements can be done depending on handiness.

If ticket expires, tickets are non-refundable.

Due to bad conditions conditions or proficient mistake occurs tickets are full refundable or can re book for another day of the month without any charge.

International market

Hot air balloon service is more familiar to international market than Sri Lanka. There clients have installation to engage their ain balloons and run it them self. For safety grounds and deficiency of cognition, in Sri Lanka we are unable to offer same installations.

They market hot balloon Tourss chiefly for matrimony proposals. Ithas good demand on that intent. But due to Sri Lankan civilization we are unable to market the same.

For international market this circuit is non a luxury point due to their high income scope. But in Sri Lanka due to high cost of revenue enhancement, fuel, income rate and high invest on concern we have to tag this circuit as luxury bundle.

Decision

Showing above study we can place the market topographic point for above new service. Since we are aiming merely on Niche market we are taking high hazard on establishing this service.

But if able to make certain class, this is a where we can gain good net income.

So would wish to suggest trial market on this service before invest.