Marketing Plan for Ticketing Office/Travel Agency

I.

Executive Summary Romano Travel and Tours, an authorized Domestic Ticketing Program (DTP) agent of General Santos City has been operating for over six (6) years. It started its operations last August 8, 2008 and currently owned by Elsie P. Romano. The company is responsible for booking and issuing tickets. It does not only cater their walk-in clients but they also cater different sub-agents (small ticketing agency companies across SOCSKSARGEN) The company offers low fare prices of plane in both domestic and international airlines. The basic market need is a reasonable fare prices for all. The company's target customers are anyone who can afford an airline ticket. The major purchasers are located in urban areas within General Santos city. Our customers are more likely to be businessmen/women or government employees.

There is rapid growth in the market and increasing demand. In addition, more niche markets are evolving. Initially, it will be difficult to compete with experienced providers, especially the market leaders.

We will provide a comfort service with prestige value. Our prices will be within of reach for the majority of travellers. Service will be priced based upon competitor prices and the value added of our offering. Providers that offer services similar to ours do so at prices similar to ours. We are competitively priced in the market.

II.

Situation Analysis a. Analysis of the internal environment Romano Travel and Tours offers a good selection of ticket fares to choose from. The company offers tickets exclusively limited from PAL before but due to certain circumstances, it later open its doors to cater ticket fares from Cebu Pacific Air in both local and international destinations. The company has given access to provide different promotional fares through the purchase of ABACUS System for PAL , and AMADEUS System for CEBU PACIFIC. By this, the company could be able to access the cheapest prices offered by the two airlines. Since the two giant airlines offer promotional activities from time to time, the company continually nudges their customers through text brigades/online social networks. The patron will surely be impressed with the level of personal attention they receive. b. Analysis of the customer environment Romano Travel and tours obtains good information about the market and knows a great deal about the common attributes of their most loyal customers. They cater walk-in clients. Aside from that, they continually expand their target market through “marketing” in schools, in different private workplaces and in different government agencies. RTT seeks to fulfil the following benefits that are important to their customers. In just a text away, customers can simply send a text message to their

travel consultants about their desired flights, especially if the scheduled flight will be later or tomorrow. And they make sure that customers can probably pay their tickets on time. Also, they extend their working hours to issue tickets at home. c. Analysis of the external environment Filipinos have been identified as one of the fastest growing travel spenders among emerging markets in 2013, data from the United Nations World Travel Organization (UNWTO) showed. 1.5% is the share of Travel & Tourism spending or employment in the equivalent economy-wide concept in the published national income accounts or labour market statistics. The General Santos International Airport is the

largest

airport

in Mindanao. It has a 3,227-metre concrete runway capable of handling widebodied jets like Airbus A340 and Boeing 747. It was also called Rajah Buayan Airport in the 1990s and Tambler Airport in year 2008 before it was renamed to its current name. Flights to and from Manila, Iloilo, and Cebu are currently being operated in the airport by Philippine Airlines and Cebu Pacific. General Santos International Airport is the second busiest airport in Mindanao and 9th busiest airport in the Philippines. III.

SWOT Analysis a. Strengths  Already has established its name  Trained employees  Large network of connections  Can offer cheap prices of plane tickets  When there are concerns/complaints about the tickets, the company is open for resolutions

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For loyal customers, they can simply text their desired flight provided that

details are complete  DOT Registered  Earned PAL Awards: Silver Awardee- 2013 and Gold Awardee-2014  Sales increased from 32M to 67M in a span of 4 years. b. Weaknesses The company offers plane tickets exclusively from PAL and Cebu Pacific only. Limited offers on International flights. c. Opportunities  Ability to access online ticketing system and to issue tickets that other travel agencies cannot do.  General Santos City has its own airport. d. Threats Airline technical difficulties Cancellation of flights Change of schedule Terrorist attacks e. Developing competitive advantage

The competitors in this market are of two primary types. First there are the other travel agencies. Our strengths include how large our network of connection is. The weakness for some is that there are travel agencies that only provide bookings but do not sell the airline tickets as they are not authorized.

Second

are the people with access to the internet. Airlines nowadays offer online booking. Therefore, with this innovation, some people have this mindset that there is no need for them to book and buy plane tickets through travel agencies. Their weakness is that prices on online bookings, except on promo fares, are more expensive compared to travel agencies.

For us to have a competitive advantage, we should widen our connections so that more customers will choose us. We should grab the opportunity of online marketing when there are no promo fares available online. Also, this should make this threat an opportunity because there are some customers who books online but don’t have a credit card so they are obliged to pay it in cash through travel agencies.

f.

Developing a strategic focus A focus strategy is usually employed where the company knows its segment and has products to competitively satisfy its needs. Since, RTT is already known for providing fair-priced airline tickets, the company has plans of expanding the business by initiating package tours in both local and international destinations.

IV.

Marketing Goals and Objectives a. Marketing goals  Providing discounts to students or senior citizens, group bookings and discounts  Providing promos to attract customers on the cheapest fares b. Marketing objectives  To provide customer satisfaction  To cater customer needs  To draw a network of connections  To maximize the efficiency of operations  To maximize profit

V.

Marketing Strategy a. Primary target market

Our primary target is everyone who can afford an airline ticket. On average, typical walk-ins are buying tickets for a business trip. b. Overall branding strategy Since Philippine Airlines and Cebu Pacific Airlines already created goodwill and good credit standing amongst consumers, the branding strategy that the company uses is that we are known to be one of the top ticket providers in South Cotabato, catering not only walk-in customers but also our sub-agents. c. Product strategy The entity offers services that accommodate plane tickets to their customers based on their desired flights. The company’s tenured employees offer the best and efficient strategies in operations for attain a smooth process in ticketing services. d. Pricing strategy Pricing strategy used is mark up since we don’t make the products, we’re only retailers. Mark-up is considered our service fee for payment of operations. e. Distribution/supply chain strategy RTT’s distribution strategy will focus on the target market to whom they can sell it directly (e.g. private offices, schools, government agencies, walk-in customers). Secondarily, RTT seeks to establish distribution capability through the existing social networking sites. Doing so will improve RTT’s ability to establish a good

f.

reputation. Integrated marketing communication (promotion) strategy

Romano Travel and Tours will use several different forms of communication for their marketing strategy. The first effort will revolve around the social networking sites. RTT’s demographic relies heavily on the internet for information.

Another form of communication is through circulars. The advertising will occur in a form of flyers, pamphlets, and the like. This will be used to increase visibility of RTT and position it as the top service provider in the market.

As time progresses and a loyal customer base is established, RTT will rely on circulars, text messages that are stored on their office phonebook. The information sheet provided by the entity will share specials (both trips as well as special deals) to this select group of customers. The goal of this kind of marketing strategy is to incentivize the past customers to buy tickets to RTT for another trip with a special deal.

As operations progress, the RTT will continue to measure their progress relative to competitors and to the growth of the markets in which they operate. Though the primary target market has been defined, there may be new possibilities to serve additional segments. As the product is defined and the strategy differentiation is defined based on competitive strengths, RTT will be better able to determine whether adjustments in positioning are necessary. Access to important information concerning the market, competitors, etc., is available. However, it is not free. For the purposes of this project, the entity feels it is unnecessary to incur additional expense.

The marketing strategy will be to develop long-term relationships with customers. As the business becomes profitable, plans will be implemented to expand. The goal is to establish RTT as a primary provider of top of the line of other entities.

VI.

Marketing Implementation Types of marketing promotions that must be implemented include radio advertising, sponsoring in activities such as Tuna Fest/Kalilangan festival, broaden the scope of sub-agents, not only in SOCCSKSARGEN but to places like Davao and broaden the market trough recruitment of sub-agents in different regions.

VII.

Evaluation and Control a. Formal controls To maximize the return on our marketing plan, there should be existing controls in order to examine and make necessary actions for the progress of the marketing plan. As the marketing plan moves along, the controls are continuously evaluated in order to know how to actual performance of the plan compares to the expected output. Input Controls: These are the actions taken earlier of the implementation of the Marketing Plan. Proper tools must be in place for the plan to succeed. Process Controls: These are actions taken during the implementation of the marketing plan. Romano Travel and Tours should evaluate their travel consultants.

Customer Feedback: In order to evaluate effectively, Romano Travel and Tours should monitor customer feedback through polls and surveys. Should there be an ineffective marketing strategy based on the results, then the marketing plan shall be adjusted according to the results. Target Market Sales: Revenues are measured based on generated profit amount. It is important to determine the effect of the marketing plan on the target market of Romano Travel and Tours. Again, this is conducted through surveys or any meaningful and effective means. Actual revenues earned from the target market shall be compared to the marketing plan projections to see if any changes need to be made. Budgeting: A marketing budget is a balance between the cost of advertising Romano Travel and Tours and the revenue created by the marketing plan. All of these costs must be closely monitored in order to minimize spending and maximize profitability. b. Informal controls Employee self-control: This denotes that the travel consultant’s objectives can be consistent with Romano Travel and Tours marketing strategies if they have high job satisfaction and strong commitment to the establishment.