Executive Summary
The report is designed to develop the strategic marketing plan for Vertical Horizon Company for its coming three years. The company was founded in 2003 in New Zealand,and it offers adventurous services. The major activities of the company include Team building, Training of leadership, camping, camps for children, adventurous activities, Family get-togethers and reunions, parties, events and celebrations and Catering, Venue and accommodation services.
Based on the situation analysis, strength and weaknesses of Vertical Horizon are found along with the future opportunities and threats to the company. Keeping the analysis in mind, the three marketing objectives are designed in line with the mission of the company that includesincreased customer, anincrease in revenue and improvement in services.
The company is going to target new market within New Zealand such as institutions apart from schools and direct targeting to the young people through social media involvement. The company will attract young customers by introducing WIFI connections at camps. For this purpose, the company will increase its prices than earlier to improve the service quality. The relationship with the customers will be managed by using social media platforms.
Introduction
The following strategic marketing plan is intended to outline the marketing objectives, marketing mix strategies, plan for marketing information system and customer relationship management based on the external situation analysisand marketing objectives of Vertical Horizon for the next three years. The strategic marketing plan is going to be used by the company for planning. It will work as a roadmap the external environment, strength, and weakness and threats and opportunities for the company.
Vertical Horizon Background Information
Vertical Horizon is the trust that was founded in 2003. It is an independent organization working for acharity in New Zealand. It was established with the aim to run experience of camping based on the Christianity,facilitating the learning in outdoor locations creating camps and building leadership and team building opportunities for business, schools and families as well in Taranaki based on the adventures.
Vertical Horizon offers a range of services to the customers. Some of the major activities include the following (Vertical Horizon, n.d.):
Team building in organizations
Training of leaders and leadership
Holiday camps for children
Adventures and adventurous activities at outdoor locations
Family get-togethers and reunions, parties, events and celebrations
Catering, Venue and accommodation services
In line with these services, the company is aimed to offer excellent and outstanding experiences to the customers. The mission of the company is to facilitate the market with unique and diversified services, mainly for camping along with various extensive services and activities. These activities aim to provide learning opportunities and motivation to the people to improve their mental, physical, spiritual and emotional strengths. The company is mainly run and managed by four key personnel, however, on the whole, it employs seven workers include one manager, one chef, two for kitchen staff and three as indicators. The company’s efficiency is keeping the relations with schools; however, its other services such as leadership, catering and celebrations are not successful in attracting the strong relationships and partnerships.
Current Marketing Situation
PESTEL Analysis
Political
The political system of New Zealand is democratic. The stability of thepolitical system in New Zealand is one of the major factors that attract the investors from both domestic and international markets to invest in New Zealand (New Zealand Parliament, 2013; Corbett & Angell, 2011). However, many of the rules and policies from the government are very important for the companies to keep in focus such as it is very important for the companies to ensure the health and safety of the workers mainly for the local workers. In addition to this, the government also increased the minimum wages in the country (Anderson, 2011; Ministry of Business Innovation & Employment, 2016)that will directly impact on the labor cost of the company. Hence, the company is required to think of the changing strategies to balance between the increasing cost and income.
Economical
The report has found that along with political stability, New Zealand is also successful in improving the stability of the economy and the economic risks are very low in the country. The economy of New Zealand has been improving and growing from last many years. The growth rate was 1.5% in 2010 that was increased to 2.9% in 2015. Export of the country covers the major part of theeconomy (Treasury, 2016). The major reasons for the improvements include business investments, tourism and private spending (AMB Country Risk Report, 2015). The tourism industry of the country contributed $11.7 billion in the foreign exchange market. It means that tourism opportunities and domestic spending of $18.1 billion are an advantage of Vertical Horizon (Tourism Industry Association New Zealand, 2015).
Social-cultural
The tourism and adventure are directly relatedto the social and cultural factors, and these factors play a very important role in the development of adventure and tourism business (World Tourism Organization, 2014). Due to the cultural influence, it is very important for Vertical Horizon to operate the camps without those factors that can negatively influence the culture of the people live in New Zealand. The major culture of New Zealand is Maori that adopted the Christianity in their religious practices. Based on these cultural factors, it becomes important for the company to keep the cultural aspects of the customers in mind while camping such as taboos are being avoided because of the culture of Maori. The recent study has found that the Christianity is not a majority of New Zealand anymore (Trimmer, 2013). However, Vertical Horizon is mainly involved in organizing camps of Christianity. It means that it can face the potential risk of decline in the customers in future. Though, the business of Vertical Horizon is helpful in sharing the information about the Christian religion.
Technological
The technology and digital developments are not only influencing the tourism and adventure industry, but every field of life is being influenced by it. Mainly in business and marketing, digital channels are considered as very important in the distribution and promotion of the product or service. Information technology plays a very important role in the communication with the clients. However, there are two problems involved with the technological factors. These problems include no signal of mobile in the camps and no access to WIFI.
It means that the company is failed to satisfy the technological development needs of the clients, and the clients facedifficultyin contacting in emergencies from camps. Furthermore, the young customers also face issues with no opportunities to connect with social networks from the camps, if they like to share their fun, experience and statuses with the friends (Colas, Gonzalez &Pablos, 2013). It means that if the company will put some information and connection sources within the camps than it will help the company to improve its features and performance for the customers. Apart from this, the company is now considering the information technology as important for the business, and now the clients can find the services on thewebsite. It helps the company to navigate more customers in future.
Environmental
The environment and nature beauty also include in the list of major factors that impact on the tourism and adventure industry. The environment and nature of Taranaki are one of the significant advantages for Vertical Horizon and its business performance. However, some seasonal issues and problems impact negatively. The temperature in summers rise to very high, and it decreases the willingness of the customers to spend their time outside the home and it the sunshine. (Angus & Associates Limited, 2013). It shows that environmental factors can impact the business and performance of Vertical Horizon.
Legal
The rules and policies of thegovernment and other authorities related to schools, camps, tourism and adventures within the country can impact the business of Vertical Horizon. However, the recent regulations of Education Outside the Classroom(EOTC) that the schools have to manage the outdoor learning and education program based on the approved standards of New Zealand (Ministry of Education, n.d.). As the company is able to meet the health and safety and other requirements hence, it is an opportunity for thevertical horizon.
Competition
Five Forces Analysis
Using Porter’s five forces model, the competitive forces to Vertical Horizon is going to analyze. These five forces include rivals, buyers, substitutes, new competitors, and suppliers. However, the substitutes are the major threat to Vertical Horizon such as various other activities are available to the students that provide them learning as well as fun and due to the high risks in adventures; they prefer the alternatives of camps.
Apart from this, the company is also required to focus on other similar type of companies that are offering to camp and also to the new entrants that can give tough competition to the company in future. Therefore, it is very important for the company to differentiate itself from the competitors by value proposition and unique selling point (Porter, 1979).
The bargaining power of buyers is high as the company offers unique services at lower prices. It means that the buyers can face the high switching cost. However, the power increases with the low switching cost to the substitutions. Therefore, the company must focus on offering quality and best service with uniqueness and affordable prices.
Competitive Advantages
The focus on the health and safety standards in mind is one of the major capabilities of the company that makes it achieve the competitive advantage. Apart from this, meeting the requirements of EOTC is also providing the opportunity to the company to achieve competitive advantage. These two major capabilities along with its resources and other capabilities such as business strategy, relationship with schools and many others help the company to achieve the competitive advantages. The quality of the service is another capability of the company that places it in the competitive position in the market.
Customer
The main target of the company is young people of age between 7 and 25 within the province of Taranaki. It targeted the customers because the young people in the targeted provide are more challenging and confident that is very important for the adventures and camping activities. However, these are not the direct target of the company as the company approach to the customers using other channels such as schools and educational institutes to organize outdoor learning programs for the students. Hence, the schools are the direct target market of the company. It divides the customers of the company into primary and secondary customers. Targeting the schools has been found as very effective; however, the revenue of the company is declined because of the limited ventures with the schools. The company also targets the organizations as aprimary customer to approach the employees and management to get leadership training services. However, it is not successful in developing the relationship with the organizations. Hence, the company is required to target new market as well to target the customers directly.
Customer needs and wants
The primary customers i.e. schools require educational training and off class learning programs. The schools want excellent and quality services for the students to provide them outdoor learning and activity opportunities. The families, mainly parents, require safety of their children as well as professional developments for their young children. The parents always desire to see their child confident, skilled and more participative in extracurricular activities. The organizations mainly focus on the uniqueness and differentiation in the services. However, the safety is not being ignored by them.
SWOT
Strength
The vision, mission, and aim of the business of Vertical Horizon are the major strength of the company that helps it to achieve the good image and reputation in the company because of the supportive nature of the students, individuals and companies.
The company since it has founded successfully developed the strong relationships with the clienteles mainly schools and fund providers. These relationships played very important role in the success of the company over the period of time and to facilitate the company with adequate funds. However, now the fund requirements of the company are changing because of the growth in the business and personnel.
The programs and activities of the company are also included in the list of strengths. The adventures, experiences, physical challenges and building confidence in the customers at camps give the unique identity to the company.
Weaknesses
The impact of adventure activities on the environment and society is directly related to the sustainability issues. It is very difficult for small companies to make sure their contribution to the economy as well.
The need of the resources is increasing in the company with its increasing operations and business activities; however, the company is still working with limited staff. The company is required to plan for the future resources include all other facilities apart from personnel.
The lack of technology and no access to the social media is one of the major weaknesses of the company in the modern world. It is very important to ensure the technological involvement to satisfy the customers.
Opportunities
The reputation in terms of thestrong relationship with the schools will help the company to attract other organizations as well as more schools in the new markets.
The access to the target market directly is possible using different communication channels.
Threats
The threat of high competition in the market can make the company face serious issues.
Another threat is the government policies and rules for the employment that may impact the overall business cost of Vertical Horizon.
Marketing Objectives
In line with the current market situation, industrial impact and internal strengths and weaknesses of the company, Vertical Horizon is aimed to achieve the marketing objectives with the help of this marketing plan and its efficient implementation. The marketing objectives are decided based on the mission and purpose of the company as well to deal with the existing issues and potential risks to the business.
Objective 1
The objective to increase the number of client will help the company to achieve its business objective and mission. With the increase in customers, the services will extend and the market of the company will increase. The increase in customers will directly show that the services of the company are being promoted.
Objective 2
The sufficient source of fund in very important to run the business efficiently. The increase in revenue will help the company to improve its investment and expenses to expand and improve the services for the customers in the present as well as in the new markets. It will also help the company to achieve the leading market share in the market.
Objective 3
The aim of the company is to offer the best services; therefore, with introducing the information technology, the company will increase the chances of achieving the business objective. The three objectives are directly linked to the mission of the company that is to offer extensive activities encourage people to learn and grow themselves. The increase in the clienteles will directly mean that the number of people encouraged to learn is improving, where, the third objective will show the uniqueness and attractiveness in the services of the company that will help the company to run in line with its mission.
Target Market
The company has been targeting the schools at its first priority. However, it has already revealed that Christianity is reducing in New Zealand that will directly impact on the number of Christian students in the schools of New Zealand. Apart from this, remain stuck in the schools limit the customers of the company that influences the revenue and sales of the company. Therefore, the company is going to target other institutions in other markets of New Zealand apart from its operations in Taranaki. The company is going to target the young students and employees directly using direct communication channel and will offer competitive prices for the services rather than lowering the prices to make sure the customers that the service is quality based.
Positioning strategy
The strategy of the company is to target the customers in three different sectors include directing the target customers that are young people and employees as well as to target the organizations and schools by offering the competitive prices for the best and unique services in the market (Buell, Campbell &Frei, 2014). The services will be offered with strong health and safety suretyand other requirements for the customer satisfaction.
Unique selling point
The unique selling point will make the company to enjoy acompetitive advantage and to attract the customers.
The outdoor learning and adventure program in camping is the best unique selling point as many other companies also offer adventure programs (Watts Projections Limited, 2010) but they are not very secure and safe
The health and safety programs at camping will also help the company to attract the customers
The direct communication with the customers will motivate them by sharing their needs and demands from the camping event
Conclusion
In the analysis of the situation of the company and its external environment, it is concluded that Vertical Horizon is one of the unique and different type of trust organization that supports the individuals and young people in learning and improving their mental and physical skills and strengths. The company is based in Taranaki, New Zealand; hence, the external factors in the New Zealand market directly impacts on the business of Vertical Horizon. During the Pestel and other situational analysis, there are much strength, weaknesses, opportunities and threats are found to the company that can both positively and negatively impact on the business of Vertical Horizon. The company, however, is making all efforts to deal with the external pressures such as ensuring health and safety, providing unique programs to compete with competitors but it needs more improvements in its marketing aspects to attract new target market, new clienteles, and new partners and to increase the revenue of the company. Therefore, the strategies are going to recommend to the company for its marketing mix that will help the company to decide its framework and roadmap for the marketing strategies and actions for coming three years of the business.
Recommendations of Marketing Mix Strategies
The marketing mix strategies using 7ps are going to design for Vertical Horizon. The 7ps include product, price, place, promotion, people, physical environment and process (Rafiq& Ahmed, 1995; Ivy, 2008; Goi, 2009). The strategies are as follows:
Product
The activities and programs of the company are the major strength for Vertical Horizon. Hence, the changes and product development strategy are not required. The company is already involved in meeting the requirements of EOTC while dealing with young people. The training and development programs are provided by the company and further going to facilitate to the target market of the current marketing plan along with catering and accommodation services. Apart from this, the company is going to improve some aspects of the services such as it will integrate WIFI service in the camps to encourage those young people and other customers who are discouraged from participating of lack of social connections from the camps. It will help to attract more customers and younger people and will directly result in an improved number of customers.
Price
The sales price of the company remained lower yet, however, now the company is going to increase the prices and fees to the clienteles, making sure that they are providing the quality services and programs in the market in competition with the competitors. Although, the main target of the company is remained towards the schools and parents, however, now the company is going to target new schools in the new markets, where, the company will charge competitive prices rather than low prices to provide excellent services ensuring the connectivity and WIFI availability.
Place
The distribution channel of the company has been required to improve (Bowersox&Morash, 1989) as it remained limited. It is one of the major reasons for the limited customers and decline in its demand. The distribution channel of the company is going to exaggerate and improve in line with digital media channels. The company along with previous distribution channels through schools is going to provide its services directly to the young people through online mediums such a social media and promotion of thewebsite.
It will also help the company to directly found the clients for its catering and accommodation services. The company will also develop partnerships and ventures with other business firms and companies to organize leadership programs. Hence, the new distribution channels will help the company to attract new clients and improve market demand.
People
The existing labor force of the company is now not enough for the operations of the company as with the growth in the sales; the company will be required to have individual sales management staff. The sales activities, for now, are managing by the manager of the company. However, it is risky for the growing business as a manager can feel hectic situation to deal with many bookings and sales at a time and record keeping. Therefore, the company is going to hire a new sales manager to perform the role.
Process
The process of the company is going to remain same. However, some changes are going to adopt such as the process will not remain stuck in the schools, but the company will operate through other channels and partnerships improving its marketing mix strategies.
Physical Environment
The physical environment given to the clients and customers is always good and satisfactory that improves the image of the company. The natural environment at camps, the facilities and accommodations to the tourists, and comfort zone are the major successes of the company in its physical environment. The high quality services are being provided to the customers by Vertical Horizon and the service will further improve by providing WIFI connections at camps.
Promotion
The introduction of connectivity and WIFI facility at camps are needed to be promoted to make the customer and target clienteles aware about the improved services of the company. Hence, the changes in the price and product mix strategies, the changes, and improvements in promotional mix strategies are also required. For now, the company is using word of mouth communication and clientele basis. Now, the company is going to advertise itself on social media platform such as Facebook, Twitter, Pinterest, and Instagram, etc. These social mediums are very popular among young people and hence, it will easily to attract them through efficient advertising.
MIS & CRM
The information about the new target market must be collected efficiently. Vertical Horizon is a member of Christian Camping New Zealand (CCNZ) and thus, both national and international channels and networks are used to get information. However, for the new target market and to achieve the marketing objectives within three years, the company is required to place a well research system within the workplace. It will help the company to reduce the weakness of lacking strong market knowledge and customers’ understanding. As the company is going to introduce itself on the social media platform, it will help the company to efficiently deal with customer relationship management (Bhuvaneswari, 2013; Lein&Ugstad, 2012).
The customers will be socially connected with the company and will easily provide their ideas, feedbacks, suggestions to the company to improve the services. It is very important for the customer relationship management that the company must have the information about the customers and the social media is the best source of getting vast information about the customers.
References
AMB Country Risk Report.(2015). New Zealand. Retrieved May 5, 2016, from http://www3.ambest.com/ratings/cr/reports/NewZealand.pdf
Anderson, G. (2011). Labour Law in New Zealand.Kluwer Law International.
Bhuvaneswari, R. (2013). Social Media And Customer Relationship Management: A Relational Study. International Journal of Logistics & Supply Chain Management Perspectives, 2(4), 535.
Bowersox, D. J., &Morash, E. A. (1989). The integration of marketing flows in channels of distribution. European Journal of Marketing, 23(2), 58-67.
Buell, R. W., Campbell, D., &Frei, F. X. (2014). How Do Customers Respond to Increased Service Quality Competition?. Harvard Business School Accounting & Management Unit Working Paper, (11-084), 11-084.
Colás, P., González, T., &Pablos, J. d. (2013, 3). Young People and Social Networks:Motivations and Preferred Uses. Scientific Journal of Media Education (1134-3478), 15-23.
Corbett, L. M., & Angell, L. C. (2011). Business excellence in New Zealand: Continuous improvement, learning, and change. Total Quality Management & Business Excellence, 22(7), 755-772. Retrieved May 5, 2016, from https://www.researchgate.net/profile/Linda_Angell2/publication/241740492_Business_Excellence_in_New_Zealand_Continuous_Improvement_Learning_and_Change/links/54562e590cf2cf5164802bfd.pdf
Goi, C. L. (2009). A review of marketing mix: 4Ps or more?. International Journal of Marketing Studies, 1(1), 2.
Ivy, J. (2008). A new higher education marketing mix: the 7Ps for MBA marketing. International Journal of EducationalManagement, 22(4), 288-299.
Lein, S. M., &Ugstad, M. (2012).Social media in customer relationship management.
Ministry of Business Innovation & Employment.(2016, 3).The minimum wage.Retrieved May 5, 2016, from http://employment.govt.nz/er/pay/minimumwage/
Ministry of Education.(n.d.).EOTC.Retrieved May 5, 2016, from http://eotc.tki.org.nz/EOTC-home/For-providers
New Zealand Parliament. (2013). Our system of government.Retrieved May 5, 2016, from http://www.parliament.nz/en-nz/about-parliament/how-parliament-works/our-system/00CLOOCHowPWorks111/our-system-of-government
Porter, M. E. (1979). How competitive forces shape strategy.
Rafiq, M., & Ahmed, P. K. (1995).Using the 7Ps as a generic marketing mix: an exploratory survey of UK and European marketing academics.Marketing Intelligence & Planning, 13(9), 4-15.
Tourism Industry Association New Zealand.(2015, 3).Quick Facts and Figures.Retrieved May 5, 2016, from http://www.tianz.org.nz/main/key-tourism-statistics/
Treasury.(2016). Overview of the New Zealand Economy.Retrieved May 5, 2016, from http://www.treasury.govt.nz/economy/overview
Trimmer, M. (2013).Christians no longer a majority in New Zealand. Retrieved May 5, 2016, from http://www.christiantoday.com/article/christians.no.longer.a.majority.in.new.zealand/35053.htm
Vertical Horizon.(n.d.).Company Website.Retrieved May 5, 2016, from http://www.verticalhorizon.co.nz/
Watts Projections Limited. (2010, 4).Vertical Horizon Camp Strategic Business Plan.Inglewood, Taranaki, New Zealand.
World Tourism Organization.(2014). Global Report on Adventure Tourism. Spain: the World Tourism Organization.
