LIMITLESS ESCAPES “Limitless Routes to Escapism”
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oooo oooo N0733000 HARRIET EXTON WORD COUNT: 8,895
The submission of this report is the result of my own work. All help and advice other than that received from my tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue, I recognise the right and duty of the board of examiners to recommend what actions should be taken in line with the University’s regulations on assessment contained in its handbook.
Date: 14th May 2020 Print Name: Harriet Exton, N0733000 Signed: Harriet Exton
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CONTENTS
INTRODUCTION
1.1 Project Declaration...................................................3 1.2 Introduction................................................................8 1.3 Aims and Objectives...............................................9 1.4 Methodology...........................................................10 1.5 Rationale...................................................................19
the opportunity 2.1 Insight Reflection.....................................................22 2.2 The Identified Problem..........................................23
THE BIG IDEA 3.1 Business Overview................................................28 3.2 Corporate Objectives.........................................30 3.3 The Business Model.............................................32 3.4 Brand DNA...........................................................34 3.5 Brand Guidelines.................................................36 3.6 What Makes Us....................................................44 3.7 Who We Are.........................................................47 3.8 Customer Journey.................................................48 3.9 Partnerships............................................................50 3.10 Value Proposition.................................................52
tHE MARKET
4.1 Market Overview................................................56 4.2 Market Drivers.....................................................62 4.3 Market Readiness...............................................64 4.4 Macro/Micro Trends........................................66 4.5 PESTLE...................................................................74 4.6 Perceptual Map..................................................86 4.7 Competitor Analysis...........................................88 4.8 Porter’s 5 Forces..................................................90 4.9 SWOT Analysis...................................................94 4.10 Ansoff Matrix......................................................95
The consumer
5.1 Consumer Segmentation..................................98 5.2 Baby Boomers...................................................100 5.3 Pen Portrait...........................................................106 5.4 B2B.......................................................................109
MARKETING STRATEGY 6.1 Objectives............................................................112 6.2 Marketing Mix, 7 P’s.........................................114 6.3 Differentiation.....................................................122
COMMUNICATION PLAN
7.1 Objectives..................................................................126 7.2 AIDA Model.............................................................128 7.3 DRIP Model..............................................................130 7.4 Communication Matrix...........................................132 7.5 B2C Communication Strategy..............................134 7.6 B2B Communication Strategy...............................142 7.7 Implementation Timeline.........................................144 7.8 KPI’s.............................................................................145 7.9 Years 2 & 3 Strategy...............................................146
THE FINANCES 8.1 Financial Objectives...............................................152 8.2 Funding.....................................................................153 8.3 Start-Up Costs.........................................................154 8.4 Sales Forecast.........................................................156 8.5 Profit & Loss..............................................................160 8.6 Marketing Budget..................................................162 8.7 Sensitivity Analysis..................................................164 8.8 Cash Flow................................................................166 8.9 Risk Assessment.......................................................168 8.10 The Future................................................................170
Conclusion 9.1 Objectives Review........................................................174 9.2 Conclusion.....................................................................176
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CHAPTER 1:
INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION
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LIMITLESS ESCAPES Travel is being reimagined. The consolidation of transport and hospitality has created a coherent experience for the ever-growing travel market (Safian-Demers, 2018). A new generation of those who turned 50 in the past 10 years has emerged; they are digitally experienced, full of adventure and enthusiasm, and show little indication of decelerating their travel habits. The advances of such consumers highlights gaps within the online travel agent market, and therefore requires urgent development to meet their needs. Throughout the Stage One report, the growing trend of over-50’s travel was made apparent but, having said this, the lack of online security was significantly restricting their holiday choices. The developments of this report have taken into consideration the insights gathered from the Stage One report, which explored the future of travel the truth behind evolving behaviours and motivations of tourists aged 18-30 and 50-65. The findings revealed that the over 50’s travel market is the fastest growing sector, however their infrequent use of social media made finding unique spots incredibly challenging, inevitably creating a laborious holiday booking experience. Limitless Escapes is planning to disperse these feelings and disrupt the online travel agent market for the over 50’s.
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AIMS& oBJECTIVES AIM: This report intendeds to present an extensive business plan and analysis of Limitless Escapes, specialising in exhilarating, tailored travel solutions for the 50+ market. It will include an in-depth understanding of the brand, business structure and strategy, market analysis, marketing and communications strategies as well as a detailed insight into its forecast finances.
OBJECTIVES:
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To conduct essential research, enabling the gathering of valuable and reliable results, to make relevant progress with developments whilst being conscious of limitations. To be able to develop a commercially and financially feasible business to solve issues outlined from the preliminary Stage 1 report.
Analyse the findings from primary and secondary research in order to develop a sound understanding of the market landscape, market position, competitors and consumer needs. To create and nurture the development of a business which meets consumers needs. To coherently communicate the brands message and values through their strategies, to assure there is a maintained brand image.
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METHODOLOGY
OBJECTIVES
1 2 3 4
To understand the problems consumers face when booking holidays. To understand the bespoke services over-50’s look for when booking holidays. To gauge potential consumers opinions on the concept and rectify any aspects that are unclear.
To identify the popularity of online travel agents (OTA) and how to differentiate from competitors.
In order to successfully achieve these objectives, market research is vital which has been formulated into a marketing retail mix. (Appendix 1)
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RE SE AR CH
Following on from the extensive research undertaken in the Stage One report, further research was necessary to generate an in-depth understanding of the travel market. Primary and secondary research has been conducted to produce accurate strategies and analysis within this report. A mixed method concurrent triangulation design was utilised when obtaining research to ensure that the data was combined effectively (Vukojevix, 2016). This research will enable the assessment and viability of Limitless Escapes such as its success rate upon market entry.
AP PR OA CH
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SECONDARY RESEARCH...
sample
The elected marketplace for this business concept falls within the baby boomers and the silent generation (BBC, 2019). Focussing directly on those aged 50+, whilst being inclusive of all genders, ensures that it is reaching a wider segment to provide a breadth of insights.
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Mintel (2019a) discovered that the number of holidays taken by over-55’s reached 34 million in 2018, a record level.
As addressed in the conclusion of Stage One, a thorough understanding in regards to the travel market was vital in developing a financially and commercially viable plan. Therefore, highlighting the necessity for a wide breadth of secondary research to be gathered. The collection of secondary sources ranged from: online articles, books, journals, market research reports and publications. These were paramount in achieving a well-rounded understanding of the development of the business.
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INTENDED RESEARCH
A few means of primary research were intended, which unfortunately couldn’t be carried out due to limiting factors.
FOCUS GROUP, 8 PEOPLE, 50-76
This method was selected as it is incredibly beneficial at gaining a variety of opinions. The questions asked would allow for stimulation of discussion which gives participants ease in expanding on their opinions and providing more organic answers. The focus group was advertised on local community pages, encouraging them to make contact with family and friends who have a passion for travel. Although this particular method couldn’t be carried out as anticipated, a smaller focus group was conducted with those in my household that are within the target age (53 and 56) to gain their opinions and insights on the brand.
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INDUSTRY INTERVIEWS, 7 INDUSTRY EXPERTS 1OTA, 1 50+ TRAVEL REVIEW BUSINESS
This was carried out by directly emailing and utilising LinkedIn to message industry experts in an effort to make contact with experts within the travel industry, in particular journalists and SAGA team members. It is understood that these individuals have a limited amount of time available, even more so due to the current social climate. The planned questions were kept as direct as possible in order to obtain the required information without wasting time. Unfortunately no responses from professionals were received. The messages and connections are evidenced in appendix 2. Although it wasn’t possible to receive responses from these professionals, email interviews were conducted with those within the target age group.
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RATIONALE This report will build upon the disclosed findings within the aforementioned Stage One, by contributing to these discoveries it will enable the development of a commercially and financially feasible business plan to resolve the barrier within the online travel agent platforms for the over -50’s.
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CHAPTER 2:
THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY THE OPPORTUNITY
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INSIGHT REFLECTION REFLECTION
The rationale behind the existence of Limitless Escapes stemmed from the key insights discovered towards the end of the Stage One report (Exton, 2020) It revealed the growing rate of people travelling, and depicted how their attitudes and behaviours have evolved. The findings that were collected throughout the process, alluded that the over 50’s travel market is expanding due to their increasing desire to travel and explore. Despite this they are infrequent social media users, making discovering new trips and holiday bookings an impractical procedure.
The Stage One report explored the changing values for both 18-30 and the 5065 year olds, signifying a strong necessity to explore what the 50+ age group really desires from a holiday booking experience. Conducting this enhances the findings and ensures they are adequate. Limitless Escapes will disturb the market and create a platform solely for the over 50’s. 22
1BEHAVIOUR Culture is a key motivator for travelling, despite the literature stating otherwise.
2TECHNOLOGY Older Generations are less inclined to use social platforms to discover destinations due to privacy concerns. Travel agents and e-tailers need to present ‘real life’ aspects of the locations they are selling.
the IDENTIFIED PROBLEM Within the preceding chapter, the insights suggested that there is a requirement for a platform to be fully inclusive and provide services that are desired by consumers: offering trips from solo travelling, conscious travel, culturally immersive adventures and the discovery of hidden spots. To ensure this insight was sufficient, additional primary research was conducted to maintain these findings.
This is supported by respondents stating that “(they) hate searching through endless companies and destinations and pricing it all� (appendix 3, q2). In addition to this, respondents ranked the holidays that interest them (appendix 3, q4), with those identified as the most popular being chosen as part of the platform’s bespoke holidays.
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CHAPTER 3:
the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA the bIG IDEA
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WHAT WE DO? Limitless Escapes specialise in exhilarating bespoke travel solutions for the 50+ market. Offering distinct trips from solo travelling, conscious travel, culturally immersive adventures and the discovery of hidden spots which are tailored to your travelling desires. We want to bring you these hand-picked experiences to provide a hassle-free booking service.
WHY? 12 9
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To take away the hard work that comes with planning a dream holiday as we know that time has become one of life’s most coveted luxuries.
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HOW?
Our tailor-made service will be efficiently hand crafted to meet all your travelling desires.
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BRAND OVERVIEW
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No other platform offers these hand-picked specialised trips for you. We do all the hard work, so you don’t have to.
ENQUIRE
Tell us what sort of trip you are looking for
ACCEPT
Let us plan your dream holiday for you
GO!
Patiently wait for the big day and enjoy every minute from the moment you leave your front door.
IT IS THAT SIMPLE
ENQUIRE
LIMITLESS ESCAPES
LOGIN
SOLO CONSCIOUS ADVENTURE CULTURE LIMITLESS ESCAPES SOLO CONSCIOUS
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LIMITLESS ROUTES TO ESCAPISM
ADVENTURE CULTURE
LIMITLESS ROUTES TO ESCAPISM
Search
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CORPORATE oBJECTIVES
CORPORATE
STRATEGIC
SALES
To achieve a profit of £1 million within the first 3 years of business.
To successfully penetrate the over 50’s OTA market as well as successfully targeting the over 50’s enthusiastic traveller, achieving a market share of 10% by year 3.
To have gained 10,000 bookings by the end of year 3 with 45% of customers making a repeat booking year-on-year.
The over 50’s OTA market is widely untouched; the main players of the bespoke holiday offerings are achieving a positive turnover. Due to its unique offerings and comparing it to the turnover of our main competitors, this is achievable in retrospect of due diligence.
If the exercise of launching within the marketplace is prosperous, measured by the end of year financial reports.
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This will be achievable, with the USP in mind and the niché trips on offer, and measured by the amount of bookings fulfilled within the first year of operating. To measure the retention rate, we will calculate the amount of new customers against the rate of repeat purchases.
FINANCIALS
MARKETING
To ensure there is a positive cash flow each month, with a steady growth in profit of 20% after year 2.
To successfully disrupt the UK’s over 50’s OTA market within the first 3 years, with an aim to procure 50,000 visitors by the end of this period.
Cash flow will need to be positive to ensure that the business is kept afloat, achieved by resourceful uses of finances and maintaining a clear financial proposal for the initial years of operation.
High achievability due to there being an increase in marketing and communication activities, heightening awareness, leading to an increase in interest, over the 3 years.
COMMUNICATIONS To generate a strong brand awareness amongst the target audiences by achieving a following of 500 on both Facebook and Instagram by the end of year 1. To attain an online conversion rate of 5% from organic searches each year from year 2.
In order to achieve this, there needs to be a strong focus on engagement to ensure there is interest maintained with each post. Customers will then deem the service a necessity when going to book a holiday.
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THE BUSINESS MODEL
Limitless Escapes operates an agency business model, revenue deriving from commission agreements made with key partners: airlines, hotels, specialist guides in unexplored locations - as well as partner restaurants and local businesses. This model assures there to be no cash tied to any unsold inventory. Pulling on these services, aids in collating the bespoke trips on offer. Limitless Escapes constructs quintessential itineraries that are customised based upon the customer’s desires. When approaching growth and becoming a crucial player in the over 50’s bespoke OTA market, the destinations and trips on offer will increase, with a body of trustworthy partners.
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BRAND DNA MISSION:
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To provide our customers with access to the finest hand-picked bespoke experiences.
VISION:
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Strive to change the way over 50’s choose to book their holidays, eradicating the tedious holiday booking process to raise awareness and demand for tailored services.
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VALUES: EXCLUSIVITY
We endeavour that each holiday we create is tailored to your specific needs down to the smallest of details.
RELIABILITY
We hope to provide an exceptional level of service, whilst being fully ATOL and ABTA protected to provide peace of mind in regards to holiday payments.
ORIGINALITY
Working alongside local guides, local accommodation providers and local transport links ensures that our customers receive the highest level of service due to the level of expertise and care.
Committed to providing the greatest passion and attention to detail to your holidays as if it were our own.
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BRAND PROMISE:
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Dedication to providing our customers with an exhilarating solution for their hunger to travel. Obtaining links with local communities to provide an experience like no other forging a truly unforgettable trip.
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BRAND GUIDELINES
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MAIN LOGO
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COLOUR PALETTE
LIMITLESS ESCAPES
LIMITLESS ESCAPES
SECONDARY LOGO
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Futura Aa
CONTINUO Aa
ABCDEFGHIJKLMn OPQRSTUVWXYZ 1234567890
ABCDEFGHIJKLMN OPQRSTUVWXYZ abcdefghijklmn opqrstuvwxyz
TYPOGRAPHY 39
1234567890
NAME
Limitless Escapes’ name was drawn from the over 50’s having endless opportunities within the reach; conflicting stereotypes claiming that “older travellers dislike adventure” and “people over 50 fear technology” (SAGA, 2016). When brainstorming names, it was fundamental to debacle these myths. The name distinctly addresses that the routes to escape reality are limitless (see brand essence). The name and logo, discussed within the focus group, stating that the name suggests “there is more to life than what you see” and that the logo is “aesthetic” (see appendix 4).
As well as this, a poll on Instagram and Facebook was performed to determine the most popular name and logo and for both it was very apparent that Limitless Escapes and the chosen logo were the most favoured. In addition to this, the colour palette was influenced heavily on colours that remind people of the sea, outdoors and fresh air. This will ensure that those who are touched by the brand will be aware that it is relative to travel. According to Colour Psychology (2017), “blue suggests a feeling of peace and calm...it can promote mental clarity” providing perfect insights into the thoughts behind consumers, and that travel is a remedy for escapism.
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BRAND ESSENCE
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Limitless routes to escapism
TONE OF VOICE
1 CREDIBLE 2 INFORMATIVE 3 PASSIONATE 4 FRIENDLY
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be welcoming be understanding be honest, be dependable, be confident be educational, be helpful
be excited, be ambitious, be contemporary
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BRAND IDENTITY PRISM A Kapferer’s Brand Identity Prism (Kapferer, 1996) has been conducted in order to understand the six elements of a brand’s identity and has aided in recognising how Limitless Escapes can effectively communicate (Lombard, 2018) (see appendix 7).
o LIMITLESS ESCAPES
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what makeS US? HOW IT WORKS?
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Consumer visits Limitless Escapes - they create an online profile to access the full site, this will allow them to enquire and explore the trips that have been created for earlier consumers. Upon enquiring and detailing their holiday desires, Limitless Escapes will build them an itinerary dependent on their desires, selecting from:
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- SOLO TRAVEL - CONSCIOUS TRAVEL - CULTURALLY IMMERSIVE - ADVENTURE
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Next, the consumer will receive the hand created itinerary and any alterations (if required) will be amended.
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When the final itinerary has been approved, a full payment will be required in order to secure the trip, this will be ATOL and ABTA authorised to ensure the consumer’s money is safe. The finalised trip is stored within their profile.
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The full details will remain protected to ensure the trip cannot be replicated.
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The consumer will then wait until the trip arrives, with any final details being presented in the run up to their holiday. Once the consumer has returned from their trip, the inhouse sharing and reviewing platform will be recommended to them, in order to share their thoughts and experiences on our trip, alongside aiding any future sales.
ENQUIRE
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CREATE
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GO
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REVIEW
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THE USP
Limitless Escapes is facilitating convenience for the over 50’s traveller, providing a succinct bespoke tailor-made service, with itineraries to suit their every need.
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ENQUIRE
LIMITLESS ESCAPES
LOGIN
SOLO CONSCIOUS ADVENTURE CULTURE
WHO WE ARE LIMITLESS ESCAPES
Search by country or trip, eg Solo Travel
LOGIN
Search
LIMITLESS ROUTES TO ESCAPISM
GENERAL ENQUIRY Name: Tel: Email: Desires:
ENQUIRE Enquiry. eg 1/2 people, type of trip
ENQUIRE
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ENESS R A AW
CUSTOMER JOURNEY
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LOYALTY
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Starts browsing for a holiday
Confirmation of email sign up and receiving the enquiry form Limitless Escapes
Looking for something out of the ordinary? Head over to our website to start the adventure of a lifetime. Whether you’re a solo traveller, a conscious traveller or a thrill seeker, we have just the trip for you. Handcrafted with love and care.
LIMITLESS ESCAPES Search by country or trip, eg Solo Travel
Send on over an enquiry form, and leave the rest to us...
Name: Tel:
Search
Email: Desires:
LIMITLESS ROUTES TO ESCAPISM
ARENESS W A
INTEREST
Sees a facebook (sponsored) ad advertising bespoke hand-made holidays, leading to landing page
Browse Limitless Escapes website, read how easy and ideal the service is.
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GENERAL ENQUIRY
D E SI R E
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4 Signs up to the website.
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ENQUIRE
ACTION
5 Fill out an enquiry form.
SERVICE
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Receive the itinerary and implement any necessary alterations to the trip.
SERVICE
8 Payment made in full
Consumer Persona: Wants to get the uttermost out of travel, to embody new and contrasting cultures without the hassle of searching for these trips. Context: Came across Limitless Escapes via Facebook when scrolling, doesn’t have a holiday booked but didn’t have the time to sit and scroll endlessly. Motivation: Curious and lack of time .
LOYALTY
SERVICE
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A few days before the vacation day, any final details will be presented
Receives thank you email with some trip details
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ENJOY
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Provide a review of the trip on Limitless Escapes
ENJOY
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The day of the holiday, details of a personal concierge who will be there if and when they need them
PARTNERSHIPS Limitless Escapes will begin to work with brands in the 3rd year of operations, offering customers products related to their holiday. The items will be available to purchase as an add on to the planned holiday, each product would be matched to the prepared trip. The value of initiating external partnerships for a brand, helps to establish a connection within the industry, in addition to this, Limitless Escapes appears more trustworthy and familiar to their consumer. It undoubtedly helps to broaden reach to the consumer base of the partnered brand. The companies chosen to partner with have similar values, ensuring the brand image is seamless.
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LOWA
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Offer the finest outdoor boots, ensuring that adventurers and thrill seekers are provided with appropriate footwear to enjoy each and every step of their trip. (Lowa, 2020)
DOUCHEBAGS
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Providing functional travel gear suitable for long trips and short trips, these are ideal for any bespoke trip and ensure each consumer will have the highest quality luggage suitable for every leg of their journey. (Douchebags, 2020)
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NOMADER A portable and versatile collapsible water bottle which can be folded up or collapsed flat, making it an essential to keep hydrated. (Nomader, 2020)
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GREEN PEOPLE
A natural and organic skin care brand, packed with nutrients aiding to nourish and respect your body. Their products are ideal for any consumer but in particular those who are vegan and are a perfect essential for your packing list. (Green People, 2020)
BAMBAW They provide reusable and biodegradable alternatives to products. The products are a perfect match for those conscious travellers, taking part in their first slow travel or a conscientious traveller. (Bambaw, 2020)
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Providing a variety of partners ensures that each trip and each consumer will be suggested a product customised to their itinerary.
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VALUE VALUE PROPOSITION PROPOSITION
The value proposition is essential for customers to understand what they will expect from brands and how they solve any problems they may or may not be aware of (Sukhraj, 2018). “The less known your company is, the better your value proposition needs to be” (Laja, 2019). Limitless Escapes’ proposition needs to be incomparable, to sway customers to book their holiday with them, by communicating their desirability and their indispensability to the market.
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Limitless Escapes lets you enjoy an exclusive trip with the click of a key. Our trips are hand-crafted to offer you exhilarating solutions to your travel passions, we do all the hard work, so you don’t have to. Limitless Escapes allows consumers to experience the untouched corners of the world, forming a connection with local communities ensuring consumers encounter only the best.
CHAPTER 4:
the MARKET the MARKET the MARKET the MARKET the MARKET the MARKET the MARKET
the MARKET the Market the market the market the market the market the market
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MARKET OVERVIEW When approaching the launch of Limitless Escapes, it is fundamental to analyse the mitigating factors that can impact its success in the UK’s travel market. This chapter will delve into the current state of the market and its forecast future to determine whether the market is ready. The information will be acquired from industry reports and any over 50’s trends.
TRAVEL OTA MATURE 56
3.8% GROWTH EACH YEAR
CONTRIBUTES
£28.3B $
TRAVEL HEALTH “The UK travel and tourism industry plays a hugely important role in the UK economy, contributing around 9% of total economic activity. The outbound travel industry alone contributes £28.3 billion a year to the UK economy” (ABTA, 2019a). It is expected to expand up to 3.8% a year until 2025 (Condor Ferries, 2020a), displaying its continued growth.
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MATURE MARKET Likewise, the mature market continues to grow, with 35.5% of the UK’s population being over 50 in 2018 (ONS, 2018, see appendix 8). According to the United Nations World Tourism Organisation, “by 2030, there will be 1.8 billion worldwide tourists a year, which is 400 million more than in 2019” (Elliot, 2020). Growth within this sector is predominantly driven by the mature market which continues to hold 60% of the travel spend with the population predicted to grow by 25% in 30 years (Silver Travel Advisor, 2020).
Limitless Escapes will be a service provider to the over 50 mature market, operating as an online travel agent. Depicted above, the over 50’s account for approximately one third of the UK population (see appendix 8). Mintel recorded 36% of respondents choosing travel as their top priority and 44% as second (Mintel, 2019a), displaying the importance of travel to the over 50’s. Clearly identifying that there is an apparent opportunity to target this growing sector of the market.
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ONLINE TRAVEL AGENT (OTA) The online travel agent (OTA) market is also one for expansion, with growth rates doubling in comparison to in-store agents; their compound annual growth rate (CAGR) reaching 2.6% whereas in-store achieving a 0.8% growth according to Global Data (2020). In 2018 the market value of OTA’s overtook those in-store travel agents, identifying the evolving consumer attitudes.
The Silver Travel Advisor (2020) specialises in the over 50’s market, stating that 46% of over 50’s now use an OTA to book their trips highlighting that they are more independent and more digitally savvy than ever before. Conclusively, indicative of the growth potentials.
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MARKET DRIVERS The online travel agent market has been a huge disruptor to the travel industry. The revolutionary movement severely altered the booking process. A time when high street travel agencies representing the pinnacle of holiday bookings is no more. Prompting a fluctuation; as many high street travel agents shut down and others adapt to new technological services.
Technology has presented an array of choice for consumers, its principal intentions to inform travellers to discover and explore. The advent of new media is a remarkable instrument to explore places that may not have been otherwise accessible.
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According to Global Data (2019) “by 2030 it is likely that those who do not continuously invest in online travel and have digital innovation at the heart of a strategy will be largely at risk”.
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This seismic shift has led to an increase in online travel agents, which will eventually develop into an over saturated market as consumer interest increases. It is essential that Limitless Escapes enters the market in advance of the influx. To overcome becoming swamped with the other OTA’s, communicating the USP to their target market to build a strong and loyal client base is of utmost importance.
The distinguished trips offered by Limitless Escapes were selected due to their growth in popularity, notably within the over 50 market.
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MARKET READINESS Primary and secondary research revealed that the formation of a multifaceted platform offering tailored solutions was missing from the market with 85% declaring they would use this platform (appendix 3, q9). All interviews and focus group participants agreeing that they either require or desire the offerings presented.
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Within the past year, the UK’s OTA market has demonstrated a huge jump from just over 10% to around 67% in 2020 (Condor Ferries, 2020).
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This data represents how the UK’s market is ready for Limitless Escapes and how it will disturb the current habitants. It can be inferred that, with the tailored holiday solutions offered and the lack of direct competitors, the concept will be successful when launching into the over 50’s OTA market.
The OTA market transformation began in the 1990’s, with Microsoft creating Expedia (Webb, 2016). Signifying that Microsoft were the innovators in this market, currently the new entries into the market fall within the late majority of the innovation curve (appendix 9). Displaying that consumers are widely aware and utilising the services available on the market at present. However, in this circumstance, Limitless Escapes will be obliged to communicate their superiority, in order to increase demand for the platform.
INNOVATION
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MACRO/MICRO TRENDS
Macro trend EXPERIENCE ECONOMY One of the most substantial changes in behaviour is how experiences are dominating our purchasing decisions. Imminently becoming a means of currency; brands cooperating in this evolving economy having a higher chance of success, demonstrated by 73% of consumers being more likely to purchase a product if they have participated in an experience (Zelaya, 2019). A trend driver that is having a significant impact on the travel experience is “unfocused audience”. The average human attention span has fallen from 12 seconds to 8 seconds due to our overuse of technology (Digital Information World, 2018). Therefore, making it increasingly difficult for travel brands to make a substantial impact on consumers, demonstrating where change has to be implicated.
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73% MORE LIKELY TO PURCHASE WITH AN EXPERIENCE
Limitless Escapes have chosen a strategy which will condense the holiday options available. Ensuring their consumer’s needs are met with high quality, handpicked solutions. This has been made possible by some micro trends.
MICRO trendS
85% FEMALE
Over-55
This latest trend has been a hit sensation with mature travellers: 47% of the solo travelling group being over-55, and an immense 85% of them being women (Friend, 2019). Although it is presumed that those choosing to travel solo, are widowed, divorced or single, this isn’t strictly true, as 32% have a partner at home (Silver Travel Advisor, 2020). This may suggest a want for spontaneity and flexibility.
SOLO TRAVEL Google searches display a steady rise, of a 40% increase in searches within 2 years (Solo Traveler World, 2020). This line graph depicts the peaks and troughs of solo travel searches within the UK over the past 12 months, there is an incredibly sharp rise within the new year, a peak popularity state Google.
100 75 50 25 sep 2019
MAY 2019
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DEC 2019
APR 2020
Implying that tourists’ plans for the new year were going to include solo travelling. Klook discovered that “76% of respondents around the globe indicated that they have either travelled alone already or are considering it� (Solo Traveler World, 2020). These statistics staunchly represent the developing popularity, this was also supported by primary research with solo travelling being the first choice (35%) for respondents.
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MICRO trendS
“The journey, once simply a means to an end, is being relished as much as the final destination� (J.W Thompson, 2020).
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CONSCIOUS TRAVEL Travellers are indulging in the journey, decelerating their travel time. Enhanced due to the growing consciousness of the detrimental effects that air and auto travel has on the climate; train travel having a sudden revitalisation. This is supported by “71% of global travellers thinking that travel companies should offer more sustainable choices” (Jones, 2019). Those that have been travelling via train believe that it is far more “enriching” than flying and feels like you are part of a “camaraderie”; many European countries are cutting rail fares to encourage this kind of travel or making public transport free (Blunt, 2020). This trend has created pace towards a counter-movement for avoiding the exhausted overcrowded tourist hot spots.
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MICRO trendS CULTURE/ADVENTURE
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Recently, over-trafficking has put heritage sites in danger of destruction (J.W Thompson, 2020) and it has become impossible to ignore the impact of overtourism. This has initiated a new trend in seeking out ways to experience unique local experiences and to get under the skin of their destination (The World Shopping Hub, 2019).
Mintel (2019) established that “51% of people who have taken a holiday said they are interested in booking exclusive tours of cultural attractions when going abroad”.
”
The over 50’s travel market has seen substantial advances in adventure holidays which are up 25%, culture trips up 34%, and 65% of global travellers considering taking part in cultural exchanges to learn a new skill (Silver Travel Advisor, 2020). Supporting the justification of having these trips on offer for Limitless Escapes due to growing demands.
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PESTLE
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OLITICAL
Brexit was confirmed on 31st January 2020. with the UK currently in a transition period, due to leave in December 2020, it was predicted to cause huge uncertainty. Evidence has suggested otherwise with spending on international travel only falling by 2.1% in 2019 (Geerts, 2019). Travel companies may face difficulty in pricing up their trips as they’re typically based upon exchange rates, therefore presuming businesses will utilise lower exchange rates, inevitably making holiday’s more expensive and potentially becoming unaffordable. Although Brexit has been confirmed, businesses are confused and unsure of the future. “The shock of Brexit decision increases market volatilities” (Li, 2020) which is a cause for concern for investors increasing the risk of investing money into a business with a constantly changing market.
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brand IMPLICATIONS
Starting a business in this unstable marketplace could be a cause for concern, therefore contingency plans will need to be put in place for any potential risks surrounding Brexit’s outcome. The potential implications for starting-up in this political landscape is that consumer confidence is going to be altered and may fluctuate; inevitably affecting the rate of purchases, leading to a decrease in sales. Evidencing a necessity for travel companies to make their consumers feel secure when booking a holiday.
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E
CONOMICAL
The sterling rate is currently at its lowest in years, causing holiday prices to increase. This low rate however is beneficial for inbound travel as tourists would benefit from a weaker sterling; although, having a reverse effect for outbound travel. This would therefore make holidays more expensive, reducing consumers’ purchasing power and minimising their disposable income. Travel companies will undoubtedly want to recover any monies they have lost during this transition period; an additional reason for heightened prices. These noticeable inflations of price are more than likely going to change consumer mindsets and make them question the necessity of a holiday, this is specifically the case for those who book their own trips rather than package holidays as these rates change depending on the sterling rate. In addition to this, there may be more costs in relation to travel documents ranging from £6.30 or £60 depending on the travel schemes chosen for Britain (Holiday Extras, 2020). Although price is usually a deal-breaker for consumers, “7/10 people are planning a trip abroad in 2020” (ABTA, 2019) indicating that holidays are a priority for many with 37% of over-55’s stating that holidays are their spending priority (Mintel, 2019a).
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brand IMPLICATIONS
The uncertain political landscape has caused consequences to the economical stance of the UK for the foreseeable future. An increase in inflation has led to a slump in consumer confidence, reaching a six-year low according to YouGov (Narwan, 2019). Pairing this with travel business failures which are key inhibitors for the success of the travel and tourism industry. With the collapse of Thomas Cook on 19 June 2019 and most recently FlyBe on 5 March 2020, this will be a huge cause for concern for investors and may potentially be a huge barrier in gaining the relevant money to gain momentum in the industry.
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S
OCIAL
Travel has become a significant trend in recent years with 72.6 million trips being taken overseas from UK residents in 2019, displaying an increase of 1% from 2018. (Johnson, 2020). “Understanding different cultures is not only critical, but it also promotes ample coexistence” defines Les Elfes International (2019). Tourists are appreciating the element of learning, and understanding global cultures. The most recent and impactful social factor which is affecting the globe and the travel industry is the Coronavirus which was declared as a “Public Health Emergency of International Concern” by the World Health Organisation (Gov, 2020) on 30 January 2020. This has vastly become a global issue which has quickly affected the tourism market, with governmental bodies strongly advising that if people are choosing to travel it should be with “established and trustworthy companies...that offer a degree of protection” (Whiteside, 2020). This has led to a huge rise in flight and holiday cancellations to the affected countries, in particular Italy, which has quarantined up to 60 million people and has upped its quarantine measures to the entire country. The UK foreign office has advised against “all but essential travel” (BBC, 2020).
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brand IMPLICATIONS
The societal factors will have a substantial impact on the brands future both positively and negatively. Firstly, the growth of travel suggests that there isn’t going to be a decline in travelling, albeit a smaller increase, due to tourists wanting to become more engaged and involved with foreign cultures to broaden their understanding. However, with the worrying pandemic that is COVID-19, this could cause a catastrophic impact on the future of some travel agents. If people cut back on booking holidays due to the health concerns, this could lead to a monumental and rapid fall in sales which was unprepared for until 2 months ago.
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ECHNOLOGICAL
Technology has greatly revolutionised elements of travel. In particular the online space, which is crucial for succeeding in today’s travel industry. The online market value for travel agents is forecast to reach $372 billion by 2023. In 2018, the market value of online travel agents (OTA’s) overtook in-store travel agents (Global Data, 2019), demonstrating the importance of having an online presence. Thomas Cook is a great example of how the lack of innovation can so quickly devastate a huge corporation. The rise of OTA’s have allowed consumers to take control of their own holiday bookings without ties to a package which has become a less popular vacation for Britons, with only one in seven purchasing a package at a “bricks and mortar” travel agent (Goldstein, 2019).
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brand IMPLICATIONS
These are very positive factors and will lead to minimal disturbance to the success of the business; as displayed, OTA’s have outdistanced in-store agents and from primary and secondary research, consumers choose to book and research online as it gives them more control and assertion of their holiday. It is key to note that, although based online, innovation will be crucial and will need to be adapted to the 50+ age demographic to ensure it is efficient.
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l
EGAL
Data and online security has had a considerable impact in recent times, which can destroy brand reputations within an instant. Booking holidays requires consumers to hand over large quantities of personal data; therefore if data is breached, large quantities of personal data is exposed. It is found that those companies who have unfortunately suffered these breaches reported a loss of revenue and loss of trust from their customers (Deloitte, 2020). British Airways experienced a breach of their security systems which involved the compromising of: names, email addresses, payment card information and home addresses in 2018 causing them to pay a ÂŁ183 million fine (BBC News, 2019).
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brand IMPLICATIONS
As a result of these reported cyber breaches, it is inevitable that plans need to be put into place to ensure any customer data which is held will be kept securely and also if it is going to be shared amongst partners GDPR will be taken into consideration to ensure it isn’t shared without permission.
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NVIRONMENTAL
Travel is known to be a significant contributor to the climate, “the aviation sector currently accounts for about 2% of global emissions, and is one of the fastestgrowing polluters”, to compare this, it is reported that taking one long-haul flight emits more carbon than an average person does annually. The recent surge in people travelling has led to environmental groups, calling to propose policies such as ‘frequent flyer levy’ to progressively increase prices with each flight a person takes (Kommenda, 2019). Slow travel is a fast emerging trend which has a primary focus on local farming, regional cuisine, making connections with people, places and things (Pook, 2019). This is achieved by making informed transportation choices such as choosing to travel via trains, walking, biking etc. The benefits of adopting this travelling method enables tourists to “learn, relax and rejuvenate; to be a positive part of a place for a short period rather than just crash through it” declares Justin Francis, CEO of Responsible Travel (Pook, 2019). The shift to exploring unknown places and moving away from overcrowding at tourist attractions, has led to an increase in people visiting remote locations which have a lack of infrastructure for tourists and are potentially damaging these remote areas (Coren, 2019).
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brand IMPLICATIONS
Travel has been known to be a detrimental factor to the environment; however, with this in mind, there are now alternative methods to travelling which can cause less damage. Slow travel is going to be a key aspect of the brand, demonstrating the conscious effort in order to mitigate the environmental damage. Albeit, preventative methods will be implicated to ensure our trips appeal to the consumer base and play an essential role to protecting the environment at all costs.
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PERCEPTUAL MAP These perceptual maps have been constructed in order for Limitless Escapes to have a competitive advantage within the over 50’s online travel agent market. It was apparent that in order to strategise a clear competitor landscape, their brand positioning within the marketplaces was fundamental in achieving market prosperity. Although tailor-made holiday solution companies are unique, it is evident that it is still a challenging market for companies to stand out.
The brand’s primary competitors in regards to their positioning on the map are: Artisan Travel, and First Class Holidays due to the luxury bespoke trips they offer to their consumers. Their secondary competitors are: Responsible Travel, Brown & Hudson and Travel Counsellors. Focussing on the primary marketspace, there is scope for bespoke solutions within the solo and couple channel; this is where Limitless Escapes will be penetrating the market.
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Range of Trips
Range of Trips
Group
Solo/Couple
Basic
Luxury
GAP
GAP
Bespoke Trips
Bespoke Trips
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COMPETITOR ANALYSIS Analysis of the following brands allows for valuable insight regarding how the key players within their market respond to competitive thrust. Although it is hard to determine the future movements of competitors, by analysing them it enables us to anticipate their activities and take lessons from them. .
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COMPETITOR ANALYSIS In order to give a clear comparison, Posner’s Table of Differentiation was completed, in order to characterise the areas of contrast between Limitless Escapes and their competitors (appendix 10).
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Porter’s 5 Forces
SUPPLIER POWER
THREAT OF NEW ENTRANTS
COMPETITOR RIVARLY
THREAT OF SUBSTITUTION 90
BUYER POWER
To ensure that Limitless Escapes enters the over 50’s OTA marketplace with an advantageous strategic plan; a Porter’s 5 Forces (Strong, 2014) was conducted to provide an analytical view into the industry and given the outcome, any objectives and strategies would be adjusted to coincide with the shift in the market.
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Competitive Rivalry
Online Travel Agent (OTA) The competitive rivalry within the OTA marketplace is colossal due to the high volume of customers and the popularity of the travel market. According to FKC, “The travel industry has less consumer loyalty than any other sector�, with 39% of tourists not maintaining any brand loyalty to their tour providers (Travel Mole, 2018). This suggests that consumers are aware of potentially new or superior players in the market. Deducing that Limitless Escapes’ competitor awareness will need to be efficient and communicate to consumers effectively in order to defeat rivalry.
Threat of New Entrants Bespoke Agents
New-startups will always face a certain amount of difficulty when entering a new market, due to the lack of brand awareness. Suggesting that large corporations may potentially start to offer bespoke services. In order to be aware of this, Limitless Escapes need to monitor market share of competitors to discover where there is space in the market.
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Threat of New Entrants
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Threat of Substitution
Artisan Travel and First Class Holidays
Slow Travel/Solo Travel OTA Trust building is a hurdle for brands to overcome when launching into a new market or new markets sector. Due to these micro trends growing in popularity and more consumers desiring the need for them on the market; there will be an increase in OTA’s offering similar niche trips and experiences due to an increase in demand. It will be significantly easier for those existing OTA’s to build their own platform for these; however they have to ensure it is seamless with their brand, or else it could hinder their image and potentially damage their customer base.
For those consumers who are confident with bespoke trips and putting their trust into an agent to pick all their holiday choices there is a slight chance of threat from competitors. They may not want to sway from their current holiday providers, due to them not understanding their needs, and due to the extra effort required in order to get similar outcomes. (The threat of substitution has been explored widely, see p88 and appendix 10 for in depth analysis.)
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Buyer Power
Buyers hold a considerable amount of power within their role; due to their growing popularity. Over time, consumers have become much more savvy with the internet and the roles of OTA’s making them more comfortable with shopping around the market for the best quality and best priced holiday. There are huge levels of price-sensitivity within the market, meaning prices are variable, and given the choice consumers will look elsewhere. Due to being a price elastic marketplace, any change in price results in a greater change for demand. Tourists’ expectations on price have reduced, yet they expect higher levels of quality due to the introduction of OTA’s such as lastminute.com and booking.com. This means that for certain consumer groups the price can be the difference between a sale or not.
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Supplier Power
Airline/Accommodation
These two services are incredibly competitive in a range of means: price, quality and convenience. “37% of travellers say that competitive price is the most important factor when choosing an airline and 31% saying that convenience of flight time and departure airport is important” (Åvila, 2017). The top 5 most popular airlines for baby boomers within the UK are: British Airways, Virgin Atlantic, Qantas, Emirates and EasyJet (YouGov, 2020). This signifies that there is a wide variety of airline providers for Limitless Escapes to work alongside. However, as Limitless Escapes is a small-scale business they are likely to not have any bargaining power over the prices they are being sold at, which could impact whether consumers choose to go ahead with the holiday purchase. This is also the case for accommodation providers, therefore working alongside local economies and those small and 93 intimate locations, means that the prices can be negotiable.
SWOT ANALYSIS
In order to take advantage of any potential opportunities within the environment, a SWOT analysis has been undertaken in order to help determine strengths, weaknesses, opportunities and threats.
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ANSOFF MATRIX
An Ansoff Matrix was developed in order to establish the best suited strategy for Limitless Escapes in order to achieve growth (Strong, 2014). As previously stated, Limitless Escapes will be operating within the over 50’s online travel agent market. Inferring the most appropriate position within the matrix is within product development due to offering bespoke tailored solutions to the over 50’s market. The ‘product development’ strategy is higher risk compared to market penetration, Limitless Escapes will have to ensure that their product and promotion is exceptional; success is dependent on research collected and the insights developed (Oxford College of Marketing, 2018). According to Leonard (2019) “innovative new products are risky because you don’t know how consumers will respond to something new”. This signifies that in order for the service to be welcomed with open arms, Limitless Escapes must ensure that the journey the customers go through is faultless and transparent to ensure there is a progression in conversion rates.
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CHAPTER 5:
THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER THE CONSUMER
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CONSUMER segmentation
Understanding the consumer is central to an effective marketing strategy, in order to do this, Limitless Escapes must identify the segmentation types in order to define the appropriate consumer. The service on offer is for the over 50’s traveller.
The mature market continues to grow, with 35.5% of the UK’s population being over 50, who are holding up to 80% of the nation’s wealth and contribute to 60% of the travel expenditure (Silver Travel Advisor, 2020). The surge in travelling has created traveller groups such as “the conscious traveller”, “the solo traveller” and “the new-age explorer” (J.W.T, 2020). The mature market is lucrative, due to their financial stability and their yearning for experiences (Coren, 2018), indicating that Limitless Escapes target consumers have the monetary freedom to explore endlessly without any hesitancy.
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The consumer isn’t specified by gender, just required to be over the age of 50. In order to reach these consumers, Limitless Escapes must delve into their needs and preferences and effectively communicate their values to align themselves to these groups, in a bid to fulfil a booking. The Stage One report considered consumers perceived values and motivations to travel. Throughout the literature, it was discovered that travel motivations are invariably treated as an imperative part of consumers behaviour, a fundamental theory is Maslow’s Hierarchy of Human Needs (1943). These can be broken down into 3 needs, emotional, social and practical in order to fulfil their needs
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BABY BOOMERS
From the segmentation conducted, three types of Limitless Escapes consumers were identified:
population Within the UK, the over 50’s population is growing, with: 8.95m - 50 year olds 7.07m - 60 year olds 5.48m - 70 year olds 2.71m - 80 year olds 500k - 90+ years olds. They are spending 24% more on holidays than those in younger generations (Silver Travel Advisor, 2020).
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1 2 3
The solo Traveller THE CONSCIOUS TRAVELLER THE NEW-AGE EXPLORER
THE THE SOLO SOLO TRAVELLER TRAVELLER
F
These consumers can be described as travellers who enjoy their own company and are self-aware. They aren’t afraid of the unknown and the spontaneity that each day holds. Going solo doesn’t mean alone, along the way they may be a piece to someone else’s journey, either by becoming travel companions or just being a passerby. It is common for solo travelling to rapidly transform personalities, allowing it to channel a new “persona”. They can utilise social media due to the seismic shift of over 50’s becoming socialites with 63% of them using a social platform of some sort (Silver Travel Advisor, 2020).
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The solo traveller can be divided into a variety of sections, these include: single, widowed, divorced, married or cohabiting (Guerilla Scope, 2020), suggesting that Limitless Escapes will alter each solo travel itinerary depending on their status. “50% of solo travellers cite specialist expertise as a key decider in who they choose to book with, brands need to focus on being educators” (Guerilla Scope, 2020). That is indicative that the service provided by Limitless Escapes will be a key disruptor by providing hand-picked trips.
THE CONSCIOUS TRAVELLER
SLOW
Characterised by various ethical behaviours, from a determination to lowering their carbon footprint or reducing plastic consumption, the growth in ethical spending has risen by an astonishing 89% since 2010 (Mintel, 2020b). These travellers’ holidays start from the moment they leave their home, embracing the journey and turning it into an element of the trip. They want to redefine the means of travelling (J.W.T., 2020).
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This counter-movement encompasses a new tourist. They take their time developing a sound understanding of their destinations, ensuring that their behaviour is appropriate and that they are not contributing to the negative effects tourism has. In order to be a “conscious traveller�, they are present in each moment of their journey, welcoming to the new cultures they experience (Hampson, 2019).
NEW AGE EXPLORER This consumer is somebody who embraces the new and unusual experiences they encounter on their travels. They don’t hesitate to push the boundaries when exploring new and breathtaking corners of the world. They want to feel like they are in a local’s shoes; delving into the hidden treasure spots.
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Approaching local communities and people isn’t daunting to them, whether there may be a language barrier or not. They are the original free-spirited adventurer, craving more from their travels than just soaking up the sun (SWNS digital, 2019).
PEN PORTRAIT
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b2b b2b
As previously discussed, the initial brand partnerships will be with 5 niche, small businesses. The acquisition process is essential to ensure that each party is gaining value. As Limitless Escapes will have established themselves over the 2 years previous, building these relationships will be easier, ensuring that the partners understand what they’re gaining from working with Limitless Escapes and have the opportunity to see their growth. The relationships will be facilitated through the development of an effective and feasible business plan; supported by sharing similar values. These brands will be provided with new opportunities to reach bigger and broader consumer demographics, aiding in a boom in exposure within their market and a new market (Lowe, 2011).
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CHAPTER 6:
MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY MARKETING STRATEGYMARKETING STRATEGY
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oBJECTIVES
1 2
To successfully disrupt the UK’s over 50’s online travel agent market within the first 3 years, with an aim to procure 50,000 visitors by the end of this period. To devise an efficient brand over the 3 years amongst the core target audience by revising the services on offer to successfully meet their growing needs and desires.
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MARKETING MIX PRODUCT Limitless Escapes is an online service, providing exhilarating bespoke travel solutions for the 50+ market. Offering distinct trips from solo travelling, conscious travel, culturally immersive adventures and the discovery of hidden spots. The service will provide each customer with their own custom made itinerary. These trip types were the top holidays amongst the age demographic, identified within the primary research survey (appendix 3).
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PRICE
“ “
According to the Silver Travel Advisor (see, Doughty, 2015) “more than half of those over the age of 50 are prepared to spend more than £3,000 on a holiday, and 20 percent of those would spend upwards of £5,000”. This was supported by email interviews.
Respondent 1 - “On average for my typical summer holiday, I think I spend around £1,800 to £2,300, including spending money.” (appendix 6)
This research has helped to conclude that the average trip costs £1,800 per person. Pricing Structure: Revenue derives from the commission agreements made with the key partners that are used to create the itineraries. This means that Limitless Escapes will not have to put any money upfront to purchase any inventory waiting to be purchased. Each sale, Limitless Escapes will take 10% of the price, making the average cost of goods £1620.
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Respondent 2 - “I spend around £1,500£1,800 per person for 2 weeks.” (appendix 6)
Respondent 3 - “I think per person, I spend approximately £2,000 all in” (appendix 6)
” ” ”
PROMOTION Limitless Escape’s promotions will utilise a variety of digital and traditional media. A promotional mix has been developed (see appendix 11) in order to establish the types of mediums that will be utilised most effectively (Lake, 2019). There will be a diverse range of online and offline communications used in order to drive awareness and engagement with the target users, in an attempt to propel sales. (see communications strategy p126 for further details)
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PLACE Limitless Escapes only operates online as it is an online travel agent (OTA), providing a wide reach across the nation. This channel is better suited to the target consumer, ensuring it is mobile friendly as well. The platform’s functionality is crucial, making it easy and accessible for customers to enquire about a trip and view their profile and complete itinerary.
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“61% of holidaymakers book their holidays via a laptop/computer” - Mintel, 2019.
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PEOPLE Initially, Limitless Escapes will operate with 2 members of staff, running the business and creating the bespoke trips for the consumers. From December onwards there will be an additional full time member of staff to assist during peak holiday booking periods. From year 2 an additional full time member will be employed to aid in building the itineraries and monitoring customer satisfaction. Finally, in year 3, two more members of staff will be employed. The staff force is bound to grow along with demand and usage of the business.
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PROCESS The process refers to the users’ experience with the service (including the communications provided by the brand). All elements of their journey must be flush and faultless, from initial discovery to their actual holiday. If any touchpoint causes an inconvenience or problem this can taint consumers’ perceptions of Limitless Escapes.
ENQUIRE /
/
Enquire - Tell us what sort of trip you are looking for Accept - Let us plan your dream trip for you Go - Patiently wait for the big day and enjoy every minute from the moment you leave your front door.
ACCEPT GO!
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PHYSICAL EVIDENCE As Limitless Escapes service is intangible, consumers still rely on a physical element to aid them in their purchasing decision. Limitless Escapes will provide emails detailing all their confirmations, including their itinerary and a fact book on the destination(s) they are visiting. In addition to this, the consumer will receive various personal touch points via email and their personal account.
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dIFFERENTIATION Porter’s Generic Strategies (Porter, 2008) In order to analyse the areas of differentiation that Limitless Escapes holds within the appropriate market place. A Porter’s Generic Strategies (Porter, 2008) has been implemented to the proposed business plan. As displayed by the table displaying the generic strategies, it is evident that Limitless Escapes will operate within the “narrow/ differentiation”, displaying it within the “differentiation focus” as its competitive advantage. By adopting this strategic placement, Limitless Escapes has the opportunities to fully strategise the business model, ensuring that it is offering an aspect of differentiation, Miller and Friesen (1986) state that “the basic aim of differentiation is to create brand loyalty”. Limitless Escape’s differentiating factor is that they are offering custom made trips to the 50+ market, bespokely tailored to the 4 categories of trips on offer. Capitalising on their USP, displayed through their marketing and communication plans.
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CHAPTER 7:
COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN
COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN COMMUNICATION PLAN
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COMMUNICATION OBJECTIVES
1 2 3
To generate a strong brand awareness amongst the target audiences by achieving a following of 500 on both Facebook and Instagram by the end of year 1. To ensure there is a constant rate of conversion of 2% on Facebook consistently throughout the first 12 months.
To obtain 30 sales through non-paid means of communication within the first year, with a 50% increase year-upon-year.
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AIDA MODEL
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AIDA MODEL
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DRIP MODEL
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DRIP MODEL
These models have been used and implemented for Limitless Escapes to aid in identifying the cognitive stages that consumers go through during the purchasing process (Hanlon, 2019). Informing the communication mediums to gain peak exposure and engagement.
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COMMUNICATIONS MATRIX
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OFFLINE CHANNELS
YEAR 1 B2C STRATEGY
The Holiday and Travel Trade Show Limitless Escapes is lacking substantial physical touchpoints with consumers, therefore trading at this show will enable personal interaction and provide insights into consumer’s perceptions of the brand. Exhibiting at The Holiday and Travel Show, London boasts an attendance of 50,945, with the average visitor age being 60. Previous exhibitors declare the show generates 80% of sales (Destinations Show, 2019). This will provide a myriad of opportunities to gain new consumers and gain awareness, by forging relationships with potential consumers and introducing them to the service provided.
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THE TELEGRAPH
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WIN! LIMITLESS ESCAPES
7 NIGHT CULTURALLY IMMERSIVE TRIP Limitless Escpaes have teamed up with The Telegraph to offer one lucky winner and a travel companion of their choice to a hand crafted bespoke trip to your tasting. You will get to explore the unexplored corners of the world.
SCAN ME
Although there has been a 7% decline in print circulation in 2019, with a predicted circulation low of 602 million by 2024 compared to 794 million in 2019 (Mintel, 2019), it still remains the most trusted medium for advertising, with 82% of respondents agreeing (Davis, 2017). This is the case for Limitless Escapes target consumer, evidenced throughout the Stage One report that trust was a limiting factor. There will be a competition run in The Telegraph’s Saturday issue which has a readership of 1.6 million, with an average age of 61, spending £8.8 billion on travel (The Telegraph, 2014). Competitions significantly aid in growing the consumer base and raising awareness, as they provide up to 34% of new consumers (Outgrow, 2019). The competition will run for a month, ensuring they receive a significant amount of responses and to encourage people to visit the website and enquire about a trip even if they do not win.
Scan the QR Code, fill in details and send form with a chance to win.
WANDERLUST MAGAZINE In addition to that, a feature in Wanderlust magazine has been chosen, due to its popularity from primary research respondents (appendix 3). Holding a readership of 86,000, with an average age of 58 years old (Wanderlust, 2019). 86% of the readers state that advertisements and features within the magazines have directly influenced their travel plans. When asked if publications influence travel decisions 38% stated that they do (appendix 3), reiterating the significance of incorporating offline media advertising.
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65% of print readers typically take some form of action after viewing a magazine advertisement The Nielson Global Trust (Bruce, 2015)
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OnlINE CHANNELS
Video Campaign Videos are imperative in securing consumers’ interest prior to launch. The aim of the video will be to effectively communicate the value proposition encompassing the USP to their consumers. The video will be posted on social channels and their website. According to a Digital Marketing Executive “60% of travellers who view video content on social platforms use it as a factor in their decision-making process” (Derham, 2019) with half of them being more likely to book a trip immediately after viewing a video. Including a promotional video on a website’s homepage has the capability of increasing its conversion rate by 80% (Collins and Conley, 2019). The video will showcase the websites offerings and the types of destinations available, persuading the consumer to opt for a bespoke service.
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ENQUIRE
BRAND WEBSITE
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“61% of holidaymakers booked their main trip via a laptop/consumer” (Mintel, 2019).
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Achieving high levels of success with a sole channel as the source for sales can be high risk due to the lack of versatility and exposure the brand receives (Roiter, 2019). Limitless Escape’s website will provide a seamless experience, ensuring the enquiry process is simple and doesn’t require realms of detail. 75% of consumers make judgements of a company’s credibility based upon their website (Sweor, 2020), reiterating the necessity for ensuring each element of the website is professional and coherent. Upon entering the website, the customer will be able to create an account at any time, an account will be required if they choose to enquire about a trip. 26.5% find it frustrating and can be put off making any purchase if an account is required upon their initial visit (Salpini, 2017); therefore making it the user’s choice will be more favourable.
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facebook & instagram “Social media is playing an increasing role for the over 50’s market, with 85% using Facebook – 82% of them doing so daily” (Keeley, 2020) limitless-escapes
Limitless Escapes will have their own personal accounts and post their own content, promoting new trips and new destinations. This will engage followers and make them excited regarding their upcoming trip or encourage them to book. There will be “destination/trip of the month” detailing some aspects of an itinerary, thus aiding in their decision making and inevitable booking. The availability of an in-house sharing platform, provides a wealth of user generated content (UGC), with consumer-to-consumer conversations driving traffic, supported by “brand engagement increasing by 28% when customers are exposed to both professional content and user-generated content” (Roper, 2019). Customers will be encouraged to share their holiday experience on social platforms maintaining a strong reputation.
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Limitless Escapes looking for something out of the ordinary Head over to our website to start the adventure of a lifetime. Whether you’re a solo traveller, a conscious traveller or a thrill seeker, we have just the trip for you. Handcrafted with love and care. Send on over an enquiry form, and leave the rest to us...
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Limitless Escapes TRAVEL/LIFESTYLE An bespoke online travel agent, specialising in trips for the over-50’s market. Cambridge, United Kingdom
Email Marketing Email marketing contributed to 30% of all digital revenues (Taylor, 2019). This communication type is effective in reaching out to customers, increasing their reach and maintaining a relationship with customers that have connected with Limitless Escapes. Limitless Escapes will provide monthly e-newsletters, depicting the latest travel news and updates to destination offerings. It is essential not to bombard customers with too many emails, and initially emails will be kept to a minimum; with 61% of users preferring to receive a promotional email at least once a month (Costarella, 2017). Gradually this will increase, particularly during holiday peak seasons, to encourage consumers to complete a booking. The utilisation of customer data will aid in providing personalised emails helping the ROI.
140
CRM
F
As Limitless Escapes is a consumer facing business, customer relations management (CRM) is essential to monitor. This will help develop the necessary relationships with consumers which is at the heart of Limitless Escapes as they ensure each trip down to the smallest detail meets their desires. Due to the lack of physical presence, it is fundamental that these relationships are forged online. The following channels will be utilised in order to make Limitless Escapes communication amongst consumers accessible: Website: There will be a frequently asked questions section on the website, as well as contact details which are available for consumers to use if they are looking for questions regarding the service or if there are any problems. Social Media: Online platforms will be used to maintain communication, in particular Facebook Messenger, earning 15 times more engagement than usual communication platforms (Carter, 2018). Conversations are more personal creating that unique connection.
141
YEAR 1 B2B STRATEGY Video Campaign (3RD YEAR) This video is imperative in securing the interest of brands. The aim of the video will be to effectively communicate their value proposition, encompassing their USP to the chosen brands in order to win over business. The video will be posted on social channels and their website, promoting their bespoke service to potential brands. The popularity of video marketing is booming, with 71% of B2B marketers using this method (Santora, 2020), suggesting that this is an effective means of starting business relationships.
142
LIMITLESS ESCAPES
o
LIMITLESS ROUTES TO ESCAPISM
EMAIL Desired brands will also be contacted via email, due to the small and niche nature of the chosen brands, it is likely to increase receptiveness to work with Limitless Escapes as it opens up their brand and products to new markets and new demographics. As the trips evolve, the partnering brands will also need to be updated to ensure the recommended products are relative.
143
Implementation Timeline Limitless Escapes will launch in October, with the peak holiday booking season being January (Greenwell, 2016); providing an opportunity to raise awareness before this period.
144
KPI “A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives.� (Klipfolio, 2016) The business objectives will be met as a results of the efficacious marketing and communication strategies.
145
YEARS YEARS 22 & & 33 STRATEGY STRATEGY
The communication activities taking place in year 2 and year 3 will be largely dependent upon the success of the communications success in year 1. Any campaigns launched will be aligned with the marketing objectives. There will be a strong focus on building customer retention within year 2, encouraging loyalty as well as further acquisition of new consumers by increasing engagement.
146
148
149
CHAPTER 8:
THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES THE FINANCES
8
Financial oBJECTIVES
1 2 3
To ensure there is a positive cash flow each month.
To ensure there is a steady growth of profit of at least 20% after year two.
To achieve an increase in gross profit margin of 50% by the end of year 2. 152
FUNDING £50,000 In order to have a successful start-up, funding needs to be procured to counterbalance the costs involved with the brands establishment. Limitless Escapes will source 2 methods of funding: The Virgin Start-up Loan and Small Business Loan from HSBC in order to ensure there is a sufficient amount of funds, soliciting any losses made during the beginning months. The total amount of funding required to cover these start-up costs and to ensure cash flow stays adrift is £50,000. Virgin Start-Up Loan: This loan is specifically for those businesses who have been trading for 2 years and under. The loans on offer are between £500£25,000 repayable over 5 years with an interest rate of 6%. Each business will receive 12 months of support, providing expert guidance on start-ups, a personal business helpline and a personal experienced mentor for 6 months. This method was chosen due to the success of other brands, and the large amount of funding on offer with a low interest rate, ensuring the payback rate won’t skyrocket and be unaffordable. (Virgin Start Up, 2020) Small Business Loan (HSBC, 2020): The loans available are between £1,000 and £25,000 with a 7.1% APR Representative. This funding will aid in ensuring the cash flow remains positive within the first year, to ensure there is sufficient funds to cover all the outgoings, in particular the wages of staff.
153
START-UP COSTS
154
155
SALES FORECAST
156
Year 1
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Total
0
1,575
1,890
2,268
2,721
3,673
4,407
5,508
6,609
8,261
9,913
11,895
58,720
N/A
N/A
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
Sales made x 1800
0
0
37
45
54
73
88
110
132
165
198
237
RRP
0
0
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
Commission (10%)
0
0
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
Revenue
0
0
6,660.00
8,100.00
9,720.00
13,140.00
15,840.00
19,800.00
23,760.00
29,700.00
35,640.00
42,660.00
Visitors (P/M) Conversion Rate
157
1139
205,020.00
Year 2
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Total
12,489
13,113
13,768
14,456
16,624
19,117
20,072
21,075
23,182
24,341
25,558
28,113
231,908
Conversion Rate
2%
2%
2%
2%
2%
2.20%
2.20%
2.20%
2.20%
2.20%
2.20%
2.20%
Sales made x £1800
249
262
275
289
332
420
441
463
510
535
562
618
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
44,820.00
47,160.00
49,500.00
52,020.00
59,760.00
75,600.00
79,380.00
83,340.00
91,800.00
96,300.00
101,160.00
111,240.00
Visitors (P/M)
RRP Commission (10%) Revenue
An increase of 5% website traffic month-on-month, when marketing activity isn’t directly affecting awareness. The conversion rate displays a slow increase as they become more known, as well as the 45% retention rate, suggesting that customers trust and engage with the service on offer. Aided by email marketing each month to drive and remind customers. Dec - Feb: 15% increase due to being a peak booking period, in addition, attending The Holiday and Travel Show. May: 10% increase due to social media marketing, driving traffic and new customers August: 10% increase due to appearance in The Sunday Times Travel, helping to boost engagement and awareness and reaching to new customers.
158
4956
892,080.00
Year 3
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Total
Visitors (P/M)
28,675
29,248
29,832
30,428
33,470
36,817
37,553
38,304
39,070
39,851
41,843
43,935
429,026
Conversion Rate
2.30%
2.30%
2.30%
2.30%
2.30%
2.30%
2.30%
2.40%
2.40%
2.40%
2.40%
2.40%
659
672
686
699
769
846
863
919
937
956
1,004
1,054
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
£1,800
Commission (10%)
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
£180
Sales x Lowa (£20)
59
61
67
65
82
84
80
79
75
72
79
87
890
Sales x Douchebags (£15)
23
24
27
26
32
33
32
31
30
29
31
34
352
Sales x Nomader (£2.8)
119
123
135
130
164
168
161
158
150
145
159
174
1786
Sales x BamBaw (£2)
59
61
67
65
82
84
80
79
75
72
79
87
890
Sales x Green People (£2)
23
24
27
26
32
33
32
31
30
29
31
34
352
118,620.00
120,960.00
123,480.00
125,820.00
138,420.00
152,280.00
155,340.00
165,420.00
168,660.00
172,080.00
180,720.00
189,720.00
1,811,520.00
2,022.20
2,094.40
2,311
2,236
2,807.20
2,879.40
2,754.80
2,707.40
2,580
2,483
2,710.20
2,979.20
30,564.80
120,642.20
123,054.40
125,791.00
128,056.00
141,227.20
155,159.40
158,094.80
168,127.40
171,240.00
174,563.00
183,430.20
192,699.20
1,842,084.80
Sales made x £1800 RRP
Revenue Revenue (add-ons) Total Revenue
An increase of an average of 2% website traffic month-on-month, when marketing activity isn’t directly affecting awareness. Correspondingly the conversion rate increases 2% as marketing activity becomes more validated and the customer testimonials and word of mouth are becoming effective. Marketing will remain relatively similar to the second year, however email marketing will increase to existing customers. Within the 3rd year, Limitless Escapes will start to sell add-on purchases, available for consumers to choose. These will peak and trough depending on sales. Some products deem more popular in comparison to others. Jan - Feb: 10% increase. Considerable jump from December, where traffic decreases slightly due to consumers focusing on the holiday season rather than booking destination holidays. However, it makes up for it, in addition to the 3rd consecutive year at The Holiday and Travel Show; the 3rd show is usually where you experience the biggest pay off. July - Aug: 5% cumulative increase, due to trips being booked for September, aided by marketing activity.
159
10,064
PROFIT & LOSS
160
Year 1 Revenue 1
205,020.00
Year 2 892,080.00
Revenue 2 Cost of Goods Sold
Year 3 1,811,520.00 30,564.80
1,844,180.00
8,028,720.00
16,303,680.00
205,020.00
892,080.00
1,842,084.80
12.00
0.00
0.00
Website Development
13,000.00
0.00
0.00
Website Maintenance
33,000.00
36,000.00
36,000.00
App Development
0.00
70,000.00
0.00
App Maintenance
0.00
13,992.00
13,992.00
Phones
1,465.72
2,120.67
3,003.42
Shopify
869.00
948.00
3,588.00
Microsoft 365
310.20
451.20
676.80
Adobe
708.00
708.00
708.00
9.99
0.00
9.99
Trade Mark
200.00
0.00
0.00
263.67
383.52
575.28
Business Insurance
181.25
181.25
181.25
ATOL/ABTA
1,600.00
1,077.00
1,077.00
MacBooks
2,997.00
999.00
1,998.00
CRM
1,089.00
1,584.00
2,376.00
Quickbooks
252.00
252.00
252.00
Accountant
250.00
3,000.00
3,000.00
Wages
63,439.29
89,670.24
129,866.40
Commission to Staff (10%)
13,557.00
77,446.00
236,688.68
Rent
0.00
0.00
2,640.00
Business Rates
0.00
0.00
8,400.00
Wifi
515.74
515.74
515.74
Gas
0.00
0.00
1,200.00
Electric
0.00
0.00
2,448.00
Office Supplies
0.00
0.00
660.57
27,769.93
52,238.69
60,373.75
133,719.86
299,328.62
449,857.13
71,300.14
592,751.38
1,392,227.67
Total Revenue Costs Registration Fee
Domain Registration
Marketing Total Expenses Net Profit
161
MARKETING BUDGET
162
Activity
Year 1
Year 2
Year 3
Offline The Telegraph Comp
3500 + 1800 = 5300
0.00
0.00
0.00
15,908.00
0.00
10,000.00
15,000.00
17,500.00
CondĂŠ Nast Traveller
0.00
13,714.75
0.00
Wanderlust Magazine
3,500.00
0.00
0.00
0.00
0.00
33,841.00
2,200.00
1,950.00
0.00
Free
Free
Free
Facebook Ad
6 x 158 = 948
9 x 158 = 1422
9 x 158 = 1422
Instagram Ad
2 x 108 = 216
4 x 108 = 432
5 x 108 = 540
Emails
Free
Free
Free
Facebook Profile
Free
Free
Free
Instagram Profile
Free
Free
Free
Marketing Supplies
3,905.93
3,811.94
7,070.75
Budget (10% of gross profit)
20,502.00
89,208.00
184,208.48
Total Spent
27,769.93
52,238.69
60,373.75
RED Magazine The Holiday and Travel Show
2 x publications Online Video Campaign Website
Supplies
163
Sensitivity Analysis
164
Year 1 Revenue 1
Year 1 -20%
Year 1 +20%
Year 2
Year 2 -20%
Year 2 +20%
Year 3
Year 3 -20%
Year 3 +20%
205,020.00
164,016.00
246,024.00
892,080.00
713,664.00
1,070,496.00
1,811,520.00
1,449,216.00
2,173,824.00
Sales
1139
911
1366
4956
3964
5947
10064
8052
12076
Revenue 2
0.00
0.00
0.00
0.00
0.00
0.00
30,564.80
24,451.84
36,677.76
205,020.00
164,016.00
246,024.00
892,080.00
713,664.00
1,070,496.00
1,842,084.80
1,473,667.84
2,210,501.76
1,844,180.00
1,475,344.00
2,213,016.00
8,028,720.00
6,422,976.00
9,634,464.00
16,303,680.00
13,042,944.00
19,564,416.00
Gross Profit
205,020.00
163,016.00
246,024.00
892,080.00
713,664.00
1,070,496.00
1,842,084.80
1,473,667.84
2,210,510.76
Total Expenses
161,489.79
161,489.79
161,489.79
351,567.31
351,567.31
351,567.31
519,230.88
519,230.88
519,230.88
43,530.21
1,526.21
84,534.21
540,512.69
362,096.69
718,928.69
1,331,853.92
954,436.96
1,691,279.88
Total Revenue Cost of Goods Sold
Net Profit
165
cash flow
166
Year 1 Total Revenue
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
July
Aug
0
0
6,660.00
8,100.00
9,720.00
13,140.00
15,840.00
19,800.00
23,760.00
29,700.00
35,640.00
42,660.00
Total Overheads
22,038.04
7,910.30
8,950.30
16,549.39
20,439.79
10,273.71
14,079.71
10,735.71
14,657.71
11,395.71
11,949.71
12,509.71
Investment
50,000.00
0.00
0.00
0.00
2,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Opening Balance
50,000.00
27,961.96
19,781.66
17,491.36
9,041.97
322.18
3,188.47
4,948.76
14,013.05
23,115.34
41,419.63
65,109.92
Incoming Cash
50,000.00
0.00
6,660.00
8,100.00
9,720.00
13,140.00
15,840.00
19,800.00
23,760.00
29,700.00
35,640.00
42,660.00
Outgoing Cash
22,038.04
7,910.30
8,950.30
16,549.39
20,439.79
10,273.71
14,079.71
10,735.71
14,657.71
11,395.71
11,949.71
12,509.71
Closing Balance
27,961.96
19,781.66
17,491.36
9,041.97
322.18
3,188.47
4,948.76
14,013.05
23,115.34
41,419.63
65,109.92
95,260.21
167
RISK ASSESSMENT
In order to understand the internal and external factors affecting the business, a risk assessment has been completed, to prepare any relevant contingency plans to impede any potential risk.
168
169
THE FUTURE PLAN & OBJECTIVES
YEAR 2
1 2 3
To expand the bespoke trip offering to include luxury travel. To procure 200,000 visits to the website. To release an app for current users to have their own ‘travel wallet’ available instantly.
With the increase of active users on the website, demand increases. In year 2, to continue with the achieved success, an expansion in the selection of trips offered, widening the reach as well as widening the options available for existing customers. An app will be developed to strengthen the touch points and synthesise the travel plans into one platform. There will be a reliance on the organic and retention growth of the brand, aiding in developing meaningful relationships with previous customers, which will be helped by the communication activities. By expanding these offerings, it will help to achieve their vision of gaining a market share of 10% by the third year. In addition to this, by expanding the trip offering, it will help to procure more visitors to the website, which evolves into sales, which will help to meet the target of 10,000 sales.
170
YEAR 3
1 2 3
To further expand the trips and destinations on offer, improving offering. To gain 10,000 sales. To expand into offering trips for groups. Within the third year of operations, Limitless Escapes’ aim to continue with the success. In an effort to maximise awareness, the offerings will continue to be developed and handpicked to ensure they will be successful with the target demographic. Limitless Escape’s target market will also increase, welcoming group bookings; which are tougher to develop due to the range of needs to meet. To maximise the sales gained, a strong communication plan will be used to continue to grow awareness. There will also be internal growth, with the employing of two staff members, assisting in delivering top quality service. Further research will begin to be collected determining the expansion strategies Limitless Escapes will begin to take, developing a new business plan to identify any potential investment needed to fulfill the expansion.
171
CHAPTER 9:
CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION CONCLUSION
9
oBJECTIVE RevIEW
174
175
CONCLUSION
To conclude, Limitless Escapes proposal is an innovative and commercially feasible concept for the over 50’s online travel agent market, based upon the killer insights developed from preceding bodies of research. The in-depth scrutiny of external and internal markets aids in critically evaluating the longevity and financial viability it could hold within the UK OTA market. In order to predict its future, a strategic growth strategy was recommended based upon the projected financials across the three years.
176
Engaging and compelling communication activities that are applicable to the target consumers will be created, to widen the reach, engagement and awareness within the marketplace. With the proposed business plan, Limitless Escapes will have the means to disrupt the bespoke offerings in the current market, and actively alter the way over 50’s book their holidays. With a promise to significantly raise the standard of hand-picked trips, contributing to a contemporary travel planning solution.
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