Wilderness Newfoundland Adventures

Wilderness Newfoundland Adventures

Case Study #28

Presented to: Professor Linda Blakney

Presented by: Sparkle Smile Marketing

Antonette Azzi

Edona Berisha

Wing Yu Cheung

Kerry Forrest

Jinghua Xie

Marketing II: MKT 2302-070

Table of Contents

1. Executive Summary 3

2. Situation Analysis 4

3. Assumptions 9

4. Core Problem 9

5. Alternatives 10

6. Evaluative Criteria 11

7. Analysis of Alternatives 11

8. Decision and Justification 14

9. Implementation 15

10. Bibliography 17

11. Appendix 17

1. Executive Summary

Wilderness Newfoundland Adventures' high quality adventure tourism product presents a unique business opportunity. The demand for adventure tourism is growing throughout the world. The location of the operation in a pristine environment with strong natural attractions of whales and icebergs, as well as other wildlife gives us an advantage of other outfitters.

The total market of adventure tourism products is growing and projected to grow into the next century. Because of our limited resources and the strength of international competitors, our recommendation is to enter into the market of the United Kingdom as the focus for our marketing strategy.

The recommended strategy allows us to exploit our environmental advantage and limit the possibility of excessive demand. The market for adventure tourism is estimated at 787,000 Britons. Our conservative goal of reaching 0.35% of this market will result in 2754 new customers. This combined with a strong local market will result in approximately $286,450 in revenues in the first year. These numbers are less than current capacity projections of 3600 customers served in a season. International customers would also be more likely to take extended visits in the region, offering incentive to other local industry members to enter into agreements with us to present a package of services to international travel wholesalers. This maximizes our resources and product offerings.

We estimate revenues from year one will be increased by approximately 573%, generating needed capital to expand capacity and increase marketing activities in year two to sustain our continued viability and growth.

The recommended strategy has three strategic imperatives. 1) The hiring of a dedicated sales/marketing person. 2) Meeting with and developing local tourism package with other industry members. 3) Creating a relationship with travel wholesalers in the United Kingdom.

2. Situation Analysis

External Environmental Analysis

Demographic

Baby Boomers are an opportunity for market growth. They as a group have large disposable incomes and are looking for new experiences. The North American market is an opportunity for market growth. The market for adventure and ecotourism numbers 30-40 million Americans and 1.3 million Canadians. International Markets are an opportunity for market growth. Statistics from the United Kingdom alone reveal 787,000 potential customers.

Competitive

The market for adventure tourism in North America is growing; but is underserved. Quality outfitters are underrepresented in North America in general and in Newfoundland in particular. Those already serving the marketplace have an advantage competitively including knowledge and experience in the sector.

Market Factors/Customers

Life Styles: There is a growing shift in focus of tourists from the traditional leisure focused vacations to specific activity or activity focused vacations. Adventure and Ecotourism activities are a growing trend. Adventure tourism is divided into two segments: Soft Adventure and Hard Adventure. Soft Adventure is defined as providing unique outdoors experiences with limited risk, physical exertion and skill. All ages and fitness levels can participate. Hard Adventure is defined as providing unique outdoors experiences with excitement and risk, which demands physical exertion, a level of skill and often requires specific preparation and training. Ecotourism is defined as purposeful travel to understand a region's culture and natural history, while safeguarding the ecosystem and producing economic benefits that encourage conservation. This can be soft or hard adventure. There is also a trend to visiting specific locations or cities for history or location. These urban touring visitors are closely linked to casual adventurers in characteristics, and may be enticed from their urban tour to adventure tourism markets.

Needs

The tourism market shift from leisure to activity based vacationing is causing the demand to grow for more active vacations

Adventurers

There are three major types of Adventurers; each has different buying behaviors. These types can be classified as Casual, Committed and Expert Adventurers. Casual Adventurers take short trips to get a taste of adventure. They provide the greatest short term growth potential. Committed Adventurers are the most affluent segment. They are fitness conscious and between 30 to 55 years of age. Generally they are well educated and urban dwelling. They demand and will pay for quality accommodations. The opportunity for longer term growth is presented here. Expert Adventurers are looking to master a sport-related skill or improve their knowledge on natural sciences. They tend to be younger than the Committed Adventurers segment and more willing to rough it. They have less disposable income. This segment is drawn from through out the whole of the population.

Product Knowledge

There is a lack of exposure to the sport of sea-kayaking. Sea kayaking is safer and