Marketing Plan Example

The purpose of this marketing plan is to analysis and identify the market plan of “We love Foreigner” which will be created by Translation call centre and information for tourism Service (TCCT) company. This service is an innovative and TCCT is the only one provider of this service in Australian Market. This call centre provides the service in six significance languages namely Japanese, Korean China, Spanish, Portuguese and France, called service language. “We love Foreigner” provide diversify customer value depend on particular purpose of using it.

However main customer value of this service are reducing miscommunication, creating good customer experience and more understanding in travel related information. The prospects customers are categorized into two groups, business entity and individual. These two groups create difference economic inflow to TCCT. Business entity will generate contract service revenue, which accounts 90% of total revenue in first two years and reduce to 70% after that, and individual customers will create income by purchasing translation card, accounts 10% of total revenue in the first two year and increases to 30% later on.

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Moreover, after the first year increasing 20% of total revenue is a reality expectation for each year. Advertising and promotion are the most important factors to introduce this service to Australia market. Basic time farm of advertising and promotion period are distributed into three period that are pre-launching, first six months and second half of the first year. The promotion will be done not only in Australia but also in our major countries that use our service language. The objective of pre-launching is to increase service awareness.

The first six months will carry on total revenue to break even point which is AUD 415,700. Cooperation of market research and control will bring TCCT to key of successes which are understanding customers’ need and providing the best customer service. To reach these key, TCCT need strong internal marketing and also external market. Table of Contents Executive Summary2 1. “We Love Foreigner”; Service Overview4 2. Market overview4 3. Market Analysis5 3. 1 Market target5 3. 2 Market Segmentation5 3. 3 Focus Segment and customer value5 4. SWOT analysis6 5. Key to success6 6. Market Strategy7 6. 1 Mission7 . Objective7 7. 1 Market objectives7 7. 2 Finance objective7 8. Market Mix7 8. 1 Product7 8. 2 Prices7 8. 3 Places8 8. 4 Promotion8 9. Market Research8 10. Financial Analysis8 10. 1 Break Even Point8 10. 2 Sales Forecast9 11. Control9 12. Reference list10 13. Appendix11 Appendix A: Employment plan11 Appendix B: Break Even Point Calculation12 Appendix C: Pricing and Start up cost13 1. “We Love Foreigner”; Service Overview “We Love Foreigner” is a translation and information for tourism call centre service which will be located multi culture cities of Australia such as Brisbane, Sydney and Melbourne.

This service aims to be a communication connector between non-English speaking visitors and English native speakers that will carry on out come of reducing miscommunication and improvement in quality of service in travel industry. Sources of income will be divided in two group of customers which are business entities ,revenue will be generate from contract service fee, and individual, TCCT will get income from selling translation card. The business entities can use our service to improve their quality of service and increase value of their product for customers.

For example hotel can reduce misunderstanding between their staff and customers which will be a result of higher customer satisfaction. In additional, the customers can also use our service to ask some traveling information in their own language that can count as extraordinary service of the hotel. Individual user can buy TCCT translation card that they can use it as easy as international phone card. They call to our call centre and let our staff translate for them and also can use to ask travel information in their own language. Therefore they can reduce risk from misunderstanding as well as plan the best trip for themselves.

TCCT will provide six languages namely Japanese, Korean China, Spanish, Portuguese and France. These languages will be called Services Language in this report. Providing Service Language, TCCT will cover approximately 32% of all visitors in 2008 (Tourism Australia, 2009). This statistic was exclude number of visitor from South America countries which almost all countries speak Portuguese and Spanish (Language Log, 2007). 2. Market overview Australia is thought to be a mix culture country because there are a lot of foreigners come into the country with difference objectives which generate benefit for Australian economic.

For example, overseas students are accounted as customers in export education services which are the third largest export income of Australia (Reserve Bank of Australia, 2008). Moreover, travel industry accounted 11. 5 billion dollar in 2007 (Anthony, 2008). However, communication problems between non-English speaking visitors and native speaker, obviously, become common problems in Australian society even in daily activities basis. For example, overseas students misunderstand in important conditions in serious negotiation such as house rental, employment, and bank.

Hotels or travel accommodations might have the same problems. Their staff might not able to understand customers’ requirement because the customers can not speak English properly so, finally, the guests go back home with dissatisfaction on the hotel. Therefore, there are a wide range of problems in Australia that is a result of the communication problems. Moreover, for Australians, who need to travel overseas such as business men and backpackers, might face a lot of communication problems as well, especially, when they are in rural area.

Local people might not be able to speak English. They might be willing to help but do not understand what is this foreigner want. The problem might be even bigger if the Australians involve in serious situation and can not clear themselves to police officer, who can not understand English very well. Consequently, not only people from non English country suffer from communication problem but also English speakers might experience it when they travel to other country as well. Translation call centre service does not exist in Australia yet so there is not complete service line.

Traditional translation service business might be the closest service that already spread in this the market. However, this business aims to solve problems of misunderstanding in official or legal documents rather than day to day activities. 3. Market Analysis 3. 1 Market target • Hotels, Service Apartments and other from of accommodations for traveller • Non English speaking travellers • Overseas students • Native English speaking who are going to 65 countries which the service Language is official language 3. 2 Market Segmentation

Geographic’s Region: Australia. Major cities:Sydney, Melbourne, Brisbane, Perth, Adelaide and Cairns Demographics Individual Mother tongue language: English, service language and other Purpose to be in Australia: Study, travel, business or work, other Business Entity Rating : Budget and one to five star Its majority customer’s demographics Length to stay : Short, middle and long stay Purpose to stay: Travel, business Mother tongue language: English, service language and other Psychographic Individual

Travel style: Back packer, Program traveler, business traveler, Self interest traveler Personality: Follower, Information seeker Business Entity Organization: Traditional and Model Its KPI: Profit only and mixture of customer satisfaction and profit 3. 3 Focus Segment and customer value For both individual and business entity, Brisbane, Melbourne and Sydney are main geographic focus segment. These regions accounted eight place in top ten regions for visitors and represented 5. 26 million visitors in 2007 (Tourism Australia, 2007).

Moreover, more than 7,000 hotels and accommodations for tourism are in these regions (Australian Bureau of Statistics, 2009) Demographic segment for individual customer, TCCT set out center of attention on Australia’s visitor who came from area of our service language for education and travel purpose as much as English mother tongue, who go to overseas, in business and travel purposes. In the top ten ranging of Australia’s visitor, there are five countries use our service language (Tourism Australia, 2007). These persons are expected to be a majority who need translation.

For example, overseas students come to who have high chance to go into a contract such as mobile and rental contract and our information for tourism provide benefit for travelers. The traveler, who come for business or work purpose, might not have much problem with miscommunication. Unlikely, native English speaker who are going aboard probably can speak only English, Thus, they can communicate with local people to get what are they looking for as well as prevent them from dangerous situation. Psychographic segmentation will make the focus segment of individual clearer.

The priority of each will be arranged by the order of self-interest travelers, backpackers and business travelers because these people are, usually, independent and make their own traveling plan. As the result of our service, they will get clear information and make their best suitable travel plan. For business customers, four and five star hotels are the main prospect. These hotels, usually, concern about their reputation and customer satisfaction more than budget accommodation. Length and purpose to stay of their customers can be used to identify this focus segment closer.

Short to middle stay for travel purpose would be the first priority in this prospect. The model organizations accept new ideal easier than the traditional one and also “We love foreigner” suite with the organizations that concern about their customer satisfaction as much as their profit. These organizations will get more customer satisfaction, developing good customer experience, increasing repeated customer, brand royalty and end up with more revenue. Moreover, they can increase their revenue immediately by advertise our travel information as their extraordinary service for their customers. . SWOT analysis Strengths • Easy to get high level employee at normal or low wages, there are a number of overseas student wants to work in office to increase their experience even for standard payment • Innovative, TCCT is will be the first and only provider of this service • Low operation cost, just like selling information or service and not depend on location • High cost of investment is a good barrier for discourage new comer • Easy to extend market to others areas such as add new service language and increase overseas number Weaknesses Need strong training team for call centre customer service • High cost of investment is a cause of high interest expense Opportunities • Australian government promote travel and education industry • Increasing trend of study overseas approximately 5 to 7 percent each year (Australian Education International, 2005) Threats • Season of traveling • Sensitiveness of travel industry in economic, epidemic, natural disaster etc 5. Key to success Two main factors that are key to success of TCCT business is Quality of Service and Quality of Information.

These two factors will create significant value for our customers. In term of Quality of Service means to be the best of both people and process. TCCT staff, especially primary activity staff, needs to have very good service mind and excellent English and one of Service Language as well as customer service skill. Fast and clear process is also necessary factors to success. Moreover, in the same significant important level, reliable, correct, variety and relevance information are used to identify our Quality of Information which is essential for achievement of this service. . Market Strategy Meet the key to success by using internal marketing make TCCT ready to create value for our customers then use external marketing to communicate this value to both prospect customers in focus segment. (The list of communication is provided in marketing mix). Creating and maintaining relationship as well as increasing value of our service to business entity customers is the main component to generate sub market plan.

Fast and effective advertising is major strategy to explode our service in individual group 6. 1 Mission TCCT is the founder and the best translation call centre service in Australia by providing the best customer value with understanding customer need. Well trained staff will carry on the great customer experience for both direct and indirect customer. This core competitive will lead us through Australia and nation wide. 7. Objective 7. 1 Market objectives Individual Communicate customer value of “We love foreigner” and its process in pre-launching and advertising period • Create 20% service awareness for individual in geography focus segment by pre-launching and advertising period in the first 3 month • Generate another 30% in the first 6 month • Increasing trial customers 10 % each month after six month of first launch Business Entity • Introduce customer value of our service to 30% of business entities in focus segment • Increase service awareness and communicate value of the service to end user, such as hotel’s customer, through variety advertising.

Expecting 30% in the first year 7. 2 Finance objective To create substantial profit, revenue must exceed operating cost. This cost mostly come from wages of the staff which are not expensive so TCCT should reach break even point in 6 month (See Appendix B: Break Even Point Analysis). 90% of this revenue will generate from contract service, business entity, and 10% from individual. The proportion will be change to 70% of service contract and 30% of individual at the end of third year and total revenue increase 20% each year (See detail in sales forecast). 8. Market Mix 8. 1 Product • Translation service Travel information of Australia in Service Language 8. 2 Prices Business Entity Service contract fee will be collected in monthly basis with fix term minimum of one year. This basis will generate stable income to the company and easier to adjust market plan to keep on progress and also easier to convince new customer. Moreover, the setting price will depend on the length of the contract and size of the business entity including their number of customers and amount of equipment, VOIP phone. Price of three basic packages will be provided in the following table (See detail in Appendix C: Pricing and Start up cost) Packages |Price per month | |Small |3,000 | |Medium |6,000 | |Large |8,000 | However, customization packages are also available to serve need of each customer. Individual The translation card will be sold at AUD 10 which can be used for 300 minute. Distributers will get 20% discount from this price. 8. 3 Places The translation card will be sold by distributers as follow • Convenient stores, News agents Travel agency • Education Agency in focus segment areas • Education Agency in countries of our service language • All kind of accommodation for tourism 8. 4 Promotion “We love foreigner” will be advertised on travel magazine and website in pre-launching and first 6 months in Australia and major countries that use service language such as France, Japan, Korea, Brazil and China. These advertises aim to increase service awareness. After launch our service to market, sales person and seminar will be the methods for business entity customer.

These two methods are selected because each customer might have completely difference need so they should be advised in the difference way. Moreover, these methods are two way communications so the company will understand need of each customer which is the way use our product to create customer value. In additional, “We love foreigner” is an innovative service thus the customer might need to be convinced and explain what the benefits they will get from this service. Translation card will be advertised in both Australia and major countries that use service language. • Travel agency Education agency • Travel website • Search engine • Community website 9. Market Research To understand the market need, the following market research method will be use to identify need, possibility and also indicate effective of market plan in each stage. • Focus group will be use in research and development period • Survey will be conducted after pre-launching and 3 months after start launching • After 6 months from start launching, focus group will be done again for individual customer • Feed back form will be sent to business customers to determine their satisfaction 0. Financial Analysis 10. 1 Break Even Point Normally, majority operating cost of call centre business comes from wages of operators which accounted around 65% of total cost (ACM Diagnostics, 2004). Break even point will be calculated base on this information. Regarding to Break Even Point analysis in Appendix B, TCCT need to get contract service at least 66 contract to cover 90% of total operating cost and also 5,212 translation cards need to be sold to cover another 10% of total cost. 10. 2 Sales Forecast

During first six months, both business entity’s and individual’s revenue will reach break even point then the second half of the first year, 10% increasing of revenue is expected and 20% at the end of second year. However, on the ground of single provider in Australia, the second year revenue possibly over more than expected. On the other hand, 90% of our revenues are related to business entities which are sensitive to economic situation therefore in the financial objective intended to reduce proportion of business entities to 70% at the end of third year. This balance will carry on stability of revenue increasing.

Moreover, business’s customers, who use our service on their hotel, are potential to be customers of individual, translation phone card. Therefore, 20% revenue increasing each year start from the second year in this forecast is reality and challenge. 11. Control Market researches and revenue are the indicators to identify situation of the company and promotion will be adjusted to bring this marketing plan on schedule in the first year. After first year, where TCCT will spend less on the market research, number of call, customer feed back and revenue will be the main key indicators to determine progress of this plan.