Opportunity analysis Company Transportation Locating at the intersection of three provinces, Exiting enjoys the convenience of transportation. Less than two hours of driving, tourists can reach Exiting from those big cities like Shanghai, Hangout or Ouzos. Direct and non-direct shuttle coaches to Exiting are also available in those big cities. General information The whole Exiting town is 83. 61 square kilometers with sixty thousands of population, whereas the Exiting old town is only 1. 04 square kilometers.
The average temperature throughout the year is about 15. 8 degrees Celsius. The hottest month is July with the average temperature of 27 degrees Celsius, whereas the coldest moth is January with the average temperature of 4. 5 degrees Celsius. Economies The incomes for residents in Exiting are mainly from tourism. The tourism business of Exiting town is flourishing in recent years. According to the record, there are 25% increase of number of tourists who come to Exiting every year, and the total tourism income in 2009 was about 4. 5 billion RMI .
One of the reasons for its fast thriving was due to the massive film and drama making after establishing the “Exiting Movie and Television base” with Chinese Film Association in 2003. Another reason is due to the successful international events holding and other cultural activities proving during the year, which had attracted more and more tourists to come and get involved. Consumer Students Consumers like students, who have least purchasing power, find the expenditure in Exiting is highly affordable. Thus, going there would be a great choice to spend less money, while having best memories.
According to some primary resources, the average expenditure per person for two days would be around RHOMB to 300 ARM, which is far less than having a luxury dinner in a metropolitan. Office workers Exiting is also good for office workers who experience high pressure from work. They can drive to Exiting with their family and lovers on weekends, and revivalist themselves with the relaxing environment. Competitors There are several similar watery towns in Jagging and Jungian provinces, like Wheeze, Gauzing, Toning etc..
Among those competitors, Wheeze is the main challenge faced by Exiting. Wheeze, lies at the Tattooing city of Jagging Province, China, 57 kilometers from company called Wheeze Tourists Development Ltd. , its reputation grows steadily and internationally. First of all, the well-organized office website enables tourists to find out the detailed information about restaurants, tourist attractions, accommodations and cultural activities easily. Second, having those five-star hotels, luxury restaurants and clubs made Wheeze successfully targeted at high income consumers.
Also, there are bunches of cultural activities during the peak seasons to attract various types of consumers. Finally, it uses price bundling to encourage tourists to choose tour combos, which include the price of transportation, meal, accommodation and some cultural activities. However, Wheeze has several weaknesses as well. Because of the smaller area, Wheeze is crowded during the weekends and festival period. People cannot really enjoy the feelings that watery town supposes to provide, and the price for accommodation is higher than usual.
It is also undeniable that Wheeze has become more commercial in recent years. Some of the natural resources have been replaced by artificial architectures, so that tourists cannot feel the original Wheeze anymore. Market segmenting, targeting and positioning Segmenting In order to effectively locate the groups of people who are interested in traveling Exiting, we explore multiple segments using different variables. In particular, we are interested in economic status (budget size) and nationalities segmentation.
The economic status segmentation consists of people with different income. The nationalities segmentation consists of people from different countries, such as Chinese, Japanese, Russians and Americans. Targeting Economic status (budget size) – low budget Exiting is currently targeting at group of people who have medium or low budget size. The goods and services there are highly affordable in Exiting because of the conservative development from local government. For example, the inns in the Exiting are priced at around RHOMB to RHOMB per night.
Also, according to various first hand sources, the total spending of having a 2-day tour in Exiting is consistently reported at around RHOMB to RHOMB for each persons 3 4. Exiting is not targeting at high income people because the current situation cannot meet the higher requirements of quality. Exiting currently has no world-class hotels, nor any restaurants that provide premium services. Thus, Exiting may only suitable for those high income owners to walk and experience the view, but not to sleep over night. Nationalities – Chinese Chinese.
For example, the service people in local restaurants and shops are speaking Chinese at most of the time, and some older local citizens may even speak local dialogue only. Positioning The target segment for Exiting is identified to be local vacationers with medium or low level of purchasing power; thus, it becomes evident that Exiting should position itself as a historic cultural town in China, which aims to provide quality Chinese cultural tour experience for less money. Marketing Mix Product features The core benefit of escaping to Exiting is to experience the old Chinese watery town.
Exiting has a peaceful and beautiful environment, crisscrossed rivers and well- preserved ancient architecture. One ceilings corridor called main You Change Lang” is about one thousand kilometers long, and it is like the silk belt winding along the river. There are also romantic stories about Exiting and this ceilings corridor that helps tourists to better understand this place. Exiting is known as “The Land of fish and Rice”. Basis Fish, which was bred and grew in the lake, is famous for the fresh, nice meat quality and rich nutrition.
Also, there are crabs called “Red of June” is famous for the delicious taste and fresh meat as well. The story behind the name is that the crabs are from the river at June of the lunar calendar, and it will become brightly red immediately after steaming in the clean water. Along the ceilings corridors, tourist can find various handcrafts in those small featured shops. Like earnings, long dresses, stylish clothes. Those are all made by local people and it is hard to buy from somewhere else. There are lots of other activities tourists can Join.
Boats renting are available every day from pm till pm. Tourists can rent a boat and enjoy the stunning view along the canals, which takes about half an hour. Other activities like lantern festival and Chinese New Year will also be available during the particular time period. Pricing strategy Facing the strong competitions with other similar watery towns, Exiting has advantage on its price strategy. The objective for Exiting is to become a market share leadership. Among those competitors, Exiting has better than average environment in terms of clearness, peacefulness, and watery town impression.
The ticket for Exiting is RHOMB, including those 11 tourist attractions; or RHOMB for purely side walking. Heritage guesthouses owned by residents, the price for one night is around RHOMB ere two people, and it tends to be higher on the weekends and holidays. Tourists can find those featured dishes in any restaurants easily. The prices for most of the dishes are around RHOMB, while the recommended cuisines are around RHOMB per dish. The prices for local handcrafts are reasonable. Like the earrings, are about RHOMBI per pair, and the dresses are about RHOMB per item.
For the activities, the regular price of boat renting is RHOMB per boat for six people, but tourists can always share one boat with others, which means RHOMB per person. Therefore, because of the above than average natural environment, even if the accommodation and other services are slightly weak in Exiting compared with other places, Exiting is still adopting a good value strategy. Distribution Distribution concerns consumers’ accessibility to the product. Exiting has multi-level distribution channel. Tourists can either buy tickets and tour package at the entrance, or from the travel agencies.
Due to the fact that Exiting is only an old town and less popular among Chinese tourists, there are only a few big travel agencies can provide tour packages to Exiting directly. Most of the travel agencies only provide tours to Exiting as one of the tourist spots. Promotion Advertising Official advertisements for Exiting are found in Asia rather than in the west. In these ads, image of Exiting as an ancient water town is emphasized. Moreover, on the official website, there are several videos which give an introduction about the history and the beautiful scenery of Exiting.
Exhibition Exiting is promoted through active participation in exhibitions. For example, the Taiwan-Jagging Trading and Cultural Exchange Exhibition help to collect bilateral governments and traveling agencies to promote Exiting together. TV plays and movie The beautiful environment of Exiting attracts not only tourists but also film makers. Famous Hollywood movie “Mission Impossible Ill” contains several scenes in Exiting. It helps to promote the town by showing the historic and classical Chinese town to more foreign countries.
Also, the town is attracting more and more Chinese film makers to film the Chinese costume and dramas here, as to increase the reputation of the place. Targeting and positioning We believe that Exiting can target not only for Chinese people, but also foreigners. Joining the campaign with Shanghai Expo this summer, there are 116% increase of the number of tourists who arranged to Exiting for a months. In addition, because of he geographical advantage, tourists who look for premium and international services can travel back and forth from Exiting within one day.
Hotels and transportations are convenient and available in those big cities near Exiting. Thus, Exiting should be re-positioned as a place for historical cultural tours for people in world. Furthermore, it should also be positioned as a complementary tourist place for Shanghai. By positioning in the way as described above, Exiting can have a sustainable tourism development in the near future. Product recommendations Intensify the government protection Although the government of Exiting has developed the place conservatively, there are still some damages occurred due to the increased commercial activities.
For example, the water condition of the canals is worse than previous year, as some of the restaurants and hotels discharged effluent into canals illegally. Also, there are some manmade damages on the heritage architectures. Thus, the local government should intensify the regulations on littering and discharging sewage, as well as the promotion on heritage sites protection. Service Service is a key factor that influences the level of customer satisfaction. Exiting should pay attention on the quality of hotels, restaurants, and other services such as multi- language tour guide.
Some foreign tourists may complain that the local tour guides are unable to communicate effectively. As most of them only speak Mandarin, and they may lack of professional trainings to meet the higher tour guide standards. Thus, in order for Exiting to success in the larger market, some professional training on multi-language speaking and better tour guide services are highly necessary. Activities Scheduling is an important factor for successful events arrangements. As Chinese ND Western calendars are different in term of festivals and holidays, activities should be held accordingly.
It is not about holding Christmas events in Exiting, but spotting the periods of Western holidays, such as Easter in April, Thanksgiving in November and Christmas in December. For example, during Easter, it is the best time to appreciate cuckoos in Exiting etc. Thus, it can attract foreigners by promoting this kind of events. Promotion recommendations Increasing the variety of cultural activities in Exiting would attract more tourists to come. For instance, hopscotch, throw sandbags and guessing games, those activities an be provided during a set of time period in summer holidays.
Also, during those traditional Chinese festivals, Exiting can have some cultural related activities to interact with audience, like wrapping the dumpling, or traditional paintings. Those cultural interactions can help to build up the positive impressions and create more fun to tourists’ Exiting experience. The official website The official website, wry. Exiting. Com. CNN, is the face of Exiting. The website should be user friendly, and well communicate with both current and potential consumers. However, the Exiting official website fails to meet this demand in some aspects.