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Abercrombie & Kent Company: Marketing Situation Essay

Executive Summary

The global tour industry has changed significantly due to a number of forces (Showker 28). Abercrombie & Kent is a leading player in the global tour industry. With over 70 destinations across the globe, the firm analyzes the needs of its customers in order to deliver personalized services. The company analyzes the forces experienced in the industry before implementing the best business strategies. The firm’s marketing approach is characterized by powerful segmentation, targeting, and positioning strategies. A powerful marketing mix is then implemented to address the unique needs of the clients. Such measures explain why Abercrombie & Kent remains competitive in the industry. This paper gives a detailed analysis of the corporation’s business and marketing strategies.

Overview of the Market Situation

Many people travel to different destinations for business purposes, recreation, or leisure. These people “travel and live in different regions outside their homes or communities” (Showker 53). Many tour companies have emerged to offer quality services to these clients. The industry is currently attracting more competitors and players. Companies that have the potential to deliver exemplary services to their customers eventually realize their potential. The tour market is characterized by various challenges and threats that must be clearly understood by different players (Becker 49). The SWOT Analysis presented below summarizes the issues associated with the global tour industry. Abercrombie & Kent Company embraces new strategies and marketing approaches that tackle the challenges facing the industry.

  • English is used in many regions across the globe.
  • The diversity of nature is a major strength.
  • The market has many service providers.
  • Diversity in global culture attracts more tourists.
  • Tourism is supported by many governments across the globe.
  • Some destinations are isolated.
  • Many companies lack proper service delivery models.
  • Many customers are dissatisfied with most of the available services.
  • Technology is not exhausted in the industry.
  • Some destinations lack good infrastructure.
  • Some regions are politically stable.
  • The rate of economic growth in the developing world has led to better infrastructure.
  • New locations/destinations emerge every day.
  • Medical facilities are available in different regions.
  • Competition results in superior services.
  • Modern technologies can be used to drive performance.
  • Competition has become a critical threat in this industry.
  • This is the case because both destinations and tour firms appear to compete in the industry.
  • PESTEL forces affect the industry.
  • The problem of terrorism threatens many tour companies.

Marketing Strategies

Abercrombie & Kent remains one of the leading providers of desirable tour services. The company uses powerful marketing initiatives in an attempt to attract more passengers and support their needs (Napleton 2). The firm identifies specific destinations and uses powerful initiatives to transform the experiences of its customers. The marketing aspects presented below play a positive role towards supporting the company’s business objectives.

Segmentation and Targeting. Several segmentation initiatives are embraced by Abercrombie & Kent in order to deliver quality services to its customers. To begin with, the firm uses demographics to segment the global population. Potential travelers are identified depending on specific issues such as education, profession, age, income, and household size (Becker 19). The firm attracts individuals with stable incomes. Academicians are also selected because they travel widely to undertake different researches. People tend to have their unique lifestyles. Abercrombie & Kent identifies different regions for vacation and recreation (Showker 53). Individuals who have specific hobbies such as traveling are identified by the firm.

After segmenting the existing market, Abercrombie & Kent goes further to analyze their effectiveness or attractiveness of every group. Each segment is examined carefully in order to understand how the firm can realize its potentials. The ultimate goal is to target the right members of the community and provide exemplary tour services to them (Napleton 2).

Positioning. After identifying and targeting the right market segment, this tour firm goes further to use a powerful positioning approach. Abercrombie & Kent uses positioning as “a powerful initiative aimed at adding value to the targeted people and tackle the problem of competition” (Becker 73). The positioning approach focuses on the needs of the selected customers. The next stage is to identify various destinations that can address such needs. The company “offers superior services to ensure the experiences of the customers are extraordinary, unexpected, and unforgettable” (Delener 1129).

The company’s product is improved frequently in order to satisfy the changing needs of every client. For instance, the firm goes further to deliver comfort and convenience to the targeted customers. The services are matched with the unique needs of the potential customers (Napleton 2). The travelers are also encouraged to sample different cuisines and cultural practices in other regions. An aspect of tourism characterizes the products and services offered by the company.

The firm uses superior strategies to address the needs of the identified customers. Such services are delivered through the use of tailored strategies. Such methods address the unique needs and expectations of more customers (Napleton 3). The targeted individuals can select the best destination from a wide range of options. This positioning approach explains why Abercrombie & Kent remains a leading player in the industry. The firm’s competitors find it hard to deliver similar services to their customers.

Marketing Mix

After designing the most appropriate positioning strategy, Abercrombie & Kent goes further to embrace the power of the marketing mix approach (Napleton 3). The 4P marketing mix focuses on the best approaches in order to achieve the targeted goals. A detailed summary of the marketing mix is presented below.

Price. Abercrombie & Kent uses a powerful pricing strategy whenever attracting more customers. The prices are competitive since the firm offers superior services. The segmentation strategy identifies specific customers based on their income levels. Personalized tour services are also available to more people in different parts of the world. Such “personalized services are a bit expensive” (Delener 1129). The prices “are adjusted accordingly depending on several factors such as distance covered, season, period of the year, and customer loyalty” (Katsoni and Venetsanopoulou 36).

Product. This company has been on the frontline to ensure its products are admirable, competitive, and profitable. The firm targets numerous destinations across the globe. Such destinations have the potential to fulfill the expectations of many potential customers (Mihalcescu and Sion 2). The firm goes further to identify new cuisines and local cultures in order to transform the experiences of more people. The ultimate goal is to ensure every customer gets excellent services.

Promotion. This firm uses various promotional strategies in an attempt to inform more people about its superior services. The tour company has a website that informs more people about its services and products. Advertisements make it easier for more people to embrace the products associated with Abercrombie & Kent. Television channels, newsprints, and travel guides are used to sensitize more people about the firm’s products. Social media platforms such as Facebook and Instagram are used to support the organization’s promotional strategy (Mihalcescu and Sion 4).

Place. This aspect of the 4P marketing mix is taken seriously. Potential customers are targeted depending on their unique needs. Geographic attributes are considered during the marketing process. The firm goes further to identify new destinations and natural habitats across the globe (Katsoni and Venetsanopoulou 37). This business initiative has continued to support the company’s marketing approach.

Implementation Plan: When, Where, and How

The implementation plan embraced by Abercrombie & Kent is characterized by a powerful business model. The model is supported by a strong organizational culture. Different workers are empowered and equipped with powerful skills that can support the implementation process. The process is reviewed frequently in order to achieve the targeted goals. New resources such as luxury cars, modern technologies, and jets are acquired to support the needs of more customers (Delener 1129). The strategy is implemented in each and every location across the globe. Additionally, the company liaises with local people to support the implementation plan.

A powerful approach is used to support the implementation of different strategies. For instance, experienced marketers are hired, trained, and empowered to support the business strategy. Social media platforms, newspapers, and brochures are used to advertise the firm’s superior services. A lean approach is embraced to identify gaps and improve every business initiative. Such measures continue to support the firm’s business model (Napleton 3). In conclusion, the firm analyzes the issues experienced in the global environment in order to come up with competitive business strategies.

Works Cited

Becker, Elizabeth. Overbooked: The Exploding Business of Travel and Tourism. Simon and Schuster, 2013.

Delener, Nejdet. “Current Trends in the Global Tourism Industry: Evidence from the United States.” RAP-Rio De Janeiro, vol. 44, no. 5, 2010, pp. 1125-1137.

Katsoni, Vicky, and Maria Venetsanopoulou. “Use of Innovation Systems for an Effective Tourism Marketing Development Strategy.” e-Journal of Science & Technology, vol. 1, no. 1, 2012, pp. 33-40.

Mihalcescu, Cezar, and Beatrice Sion. “The Functionality of the Internet as Tourism Marketing Instrument.” Journal of Marketing, vol. 1, no. 1, 2014, pp. 1-7.

Napleton, Philip. “Abercrombie and Kent Embarks on a Global Journey with Mitel.” Mitel Networks Review, vol. 1, no. 1, 2014, pp. 1-4.

Showker, Kay. The Unofficial Guide to Cruises. Wiley, 2012.

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"Abercrombie & Kent Company: Marketing Situation." IvyPanda, 3 Sept. 2020, ivypanda.com/essays/abercrombie-amp-kent-company-marketing-situation/.

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