Case Study on "Marketing Communications Audit and Plan"

Case Study 8 pages (3659 words) Sources: 8

[EXCERPT] . . . .

Error! Bookmark not defined.1.2 Situation Analysis

- 8 -1.3 Strategic Goals and Short-Term Direction

Communications Audit

- 8 -2.1 Current Communications Approach

- 9 -2.2 Communications Strengths and Weaknesses

Key Audience

- 9 -3.2 Communications Strategy

- 10 -3.3 Communication Mix

- 11 -3.4 Budget

Evaluation and Measurement

- 11 -4.1 Potential Issues

Evaluation and Measurement System

Volare Aviation Limited is a newly established company operating from Wellington International Airport. They operate a small group of aircraft and offer fresh and innovative flying experiences -- lifting spirits through flight. Currently the company focus is helicopter flight training however on achieving the necessary certification; they intend to extend their services into the provision of leisure activities which is a segment of the tourist market.

This assignment; reviews relevant market information, outlines findings of an audit conducted on the company's communication programme and, makes recommendations based on these findings plus market research conducted as part of the assignment.

1.1 Executive Summary

Observations shows that the there is an increasing demand for luxury products all over the world. This therefore signals an increase in the number of companies targeting the high-end tourists and affluent class that has disposable income to spend on the luxury services. Volare Aviation Limited, which is a newly established company operating from Wellington International Airport needs to increase their level of awareness of their product while aiming to Increase annual bespoke tour and trial flights sold. The process of achieving above aims involves the fine-tuning of their marketing communication strategy. Marketing communication is important for the creation of awareness on a given business. This paper presents an integrated marketing communication plan to be used by Volare Aviation Limited in the achievement of their core business objectives. It is worth noting that the primary objective of communications is the building of business and product awareness as well as its position via materials such as websites, brochures, press releases as well as trade show presentation. The process of planning an approach which is integrated and yet consistent one requires a lot of efforts and planning. This is with the aim of reinforcing the organization's message to the target audience with aim of motivating them to buy the product. This should therefore form the core responsibility of a marketing communication manager. In order to come up with a good marketing communication plan, it became an necessity to research on certain key elements of the Volare Aviation Limited's operations. An in-depth understanding of the firm's target audience as well as the organizational processes that are involved in the buying of their services, the selling as well as communicating them was is necessary. The availability of this information then enables us to acquire the prerequisite knowledge necessary for determining the gains to be achieved from thee planed marketing activities, what the customers are aware of and how to best communicate the information to the customers. A determination of a budget schedule is done and an evaluation of the constraints that might be faced in the marketing campaign is carried out. This communication marketing plan is a step-by-step plan.

1.2 Situation Analysis

1.2.1 Wellington Domestic Tourist Market Landscape

Tourism in Wellington has grown significantly over the last decade as a result of more general increases in New Zealand tourism, a concerted effort to capture more of this growth in the capital and to develop the sector as one of the drivers of the city's economy. The broader development of events, entertainment and a cafe society has seen Wellington shed its previously somewhat dull image as an administrative centre.

As in many other urban areas and capital cities, Wellington offers a diverse range of attractions extending from cultural and heritage attractions to adventure activities. While the nature of the demand varies from attraction to attraction, local visitors are the core segment followed by other domestic visitors.

Wellington is the receptor of a significant number of domestic tourists that have a clear impact on the city's economy. The $881 million of domestic tourist spending in 2009 demonstrates such contribution.

There are no statistics outlining how much of the domestic tourist dollar is spent on leisure activities however, conference attendees spend can be used as a proxy. Research shows that 8.2% of conference attendees spend is on entertainment and amusement (excluding food and beverage)

therefore, the market value of the leisure activity market in Wellington is $72.2 million.

While tourism industry demand and profitability has decreased slightly (1.3%) from Sep -- Nov 10, it is expected that the following quarter will see a 1.5% increase. Recent announcements have indicated a continued decline due to the slow economic recovery however that is primarily the impact of reduced numbers of international visitors. Domestic visitors are expected to remain constant as the economic climate has resulted in an increasing number of people choosing to travel domestically rather than internationally.

1.2.2 Competition

HELiPRO is currently the only company focusing on providing a leisure flight service in Wellington. The company is a national company with 23 years in the New Zealand helicopter industry. They lease older helicopters to provide scenic tours of between 8 to 20 minutes primarily focusing on the Wellington harbour environment.

While direct competition is limited, the leisure activity market offers a wide range of competing activities. The following graph depicts the range of activities which compete in the leisure market, ranked according to participation by domestic tourists.

There is no specific measurement for leisure flights however, it would be fair to assume that this activity was categorised as other scenic/natural attractions comprising 1% of the activities that domestic tourists participated in.

1.2.3 Marketing Service Mix

1.2.3.1 Product

Helicopter flight training including:

commercial and private pilot training ratings (for different helicopter types and situations)

trial flights

Ancillary services include; hour building (for commercial licence requirements), helicopter leasing and flight reviews.

1.2.3.2 Price

The pricing approach for commercial and private pilot training is cost plus.

Trial flight training

$450 plus GST

Experience flights

$1,150 plus GST

It should be noted that while the prices are higher than the competitors prices, they reflect a bespoke service offering rather than the short, commonplace service of the competition.

1.2.3.3 Place (Distribution)

Customers can contact the company via the 'Contact us' option on the website or phone.

1.2.3.4 Promotion

The principal promotional tool is word-of-mouth via the unique relationships established with people within the Wellington aviation industry. For potential customers outside of these relationships, the website is the main promotional vehicle supported by a DLE brochure.

1.2.3.5 People

The company comprises three individuals with wide experience as both helicopter pilots and trainers. Gavin Murphy is the passion behind the company and has formed strong relationships within the aviation industry to provide customers with a wider range of service offerings. Gavin is passionate about offering a customer focussed service delivered by great people.

1.2.3.6 Process

The contact email address is the principal (formal) method available to customers who wish to contact the company. However, the relationships that Gavin has developed appears to have resulted in growth through 'word-of-mouth' recommendations and a less formal process for facilitating the delivery of services. This approach is also reflected in the companys terms and conditions which are presented as "dry stuffy bits" that are still deemed important.

1.2.3.7 Physical Evidence

Locating a new flight service business at the Wellington International Airport provides it with intangible benefits -- customers are likely to perceive that a company located at the airport must be credible and reputable. This perception is also enhanced by the new craft which are used (as opposed to the aging helicopters used by the competition).

1.3 Strategic Goals and Short-Term Direction

Volare Aviation stated strategic goal is to build an events management company focused on unique aviation experiences.

Short-term goals and direction include:

Developing a market strategy for the next 6 months.

Receiving operational certification (for leisure flight service)

Providing aircraft maintenance contracts to private individuals with high discretionary income

2. Communications Audit

2.1 Current Communications Approach

The current communication approach that has been employed by Volare Aviation Limited is e-mail and website-based which is actually not efficient. The other one used is telephone. Volare Aviation Limited also makes use of the old snail mail approach that relies on delivery of communications through postal addressees. These communication strategies are not very efficient since they are not integrated in its design. The need for an integrated approach is dictated by the fact that the different elements of communications have various strengths and weaknesses that can just be eliminated by complementing different approaches. These tools cannot be effectively be used in the researching of the audiences and branding. The effectiveness of communication is important in order to ensure that customers care about what is being communicated. It is also important for gauging if the content being communicated is complete. The other reason to measure the effectiveness of communication is to ensure that the elements being communicated are understood (Gray,2005)

2.2 Communications Strengths and Weaknesses

Customer communication is one of the most… READ MORE

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