Al Deyafa is an innovative service that will link the mysterious world of Arabic culture and travelers from all over the world. The venture involves the provision of such services as cultural tours across major sites of the United Arab Emirates, Ramsa courses, the arrangement of traditional meals in local households.
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It will also involve marketing of traditional handicrafts and so on. The competitive advantage of the startup is its novelty and the use of innovation. The internet has become an indispensable part of people’ lives and many travelers make use of their gadgets when visiting other countries. Al Deyafa is a perfect platform for these people. It is necessary to note that the target audience of Al Deyafa is the traveler between 15 and 55 years old who is a savvy user of technology (smartphones and tablets).
The Emirati hospitality market is increasing at a considerable pace. It is expected to grow by 65% by next year while online travel penetration grew up to 22% in 2014 (Akerman, 2015). The hospitality sphere in the USE will continue being an attractive touristic destination for travelers from all parts of the world due to its political and social stability, unique culture, heavy investment into the sector (Chaudhary, 2013).
At present, airlines and hotel online bookings exceed 50%. More so, the vast majority of people use their smartphones and tablets when planning their trips (Akerman, 2015). At the same time, it is clear that the technology is mainly utilized by these types of players in the market (UAE hospitality is on the move, 2015). Travelers’ online helpers (like Al Deyafa) are hardly available in the Emirati hospitality market. This provides a variety of opportunities to develop the business.
Marketing mix and STP strategy
The product is a platform travelers may use to make their visit to the UAE as pleasant and culturally saturated as possible. The platform will occupy the niche where only a few competitors operate. It is possible to note that there are no competitors at the time when this report is under development. However, there are quite high chances that such competitors will appear in the near future or are already about to enter the market.
As for the pricing strategy, it is possible to utilize price skimming approach. This method is appropriate for such new services as Al Deyafa. There are no competitors to compare with. However, to establish a particular price, perceived value approach can be used.
This strategy involves such aspects as the cost and benefits (Ferrell & Hartline, 2013). This strategy ensures the establishment of the most appropriate price. The company’s costs will be covered, the revenue will be developed, and the customer will be ready to pay a reasonable price.
Since this is an online platform, the services will be provided through the Internet. The use of smartphones will also be regarded as it is possible to develop specific smartphone applications.
The promotion will be implemented with the help of online resources. It is vital to make use of social networks. The service can be promoted through Twitter, Facebook, Instagram and similar networks. Placing visual ads is also beneficial. These ads can be placed on various websites. Later, it will be necessary to address Google and other search engines to ensure proper advertising options. Since the target audience is the cohort of savvy users of technology, promotion through online resources is the best option.
This is a small startup, but the company needs clear culture. It is possible to provide customer-oriented services. Therefore, the employees will try to develop services that are most helpful for travelers. A limited number of IT professionals can be hired to develop the resource. Since the budget of the startup is limited, it is possible to hire people the owners may know. These can also be bright students of local universities.
The service will be delivered online, which makes the processes carried out automatically. The customer can purchase the service online, but after-sale service may require some support team. This can be an IT professional responding to all request of customers. Clearly, the better the service is developed, the fewer questions may arise.
The logo of the company can be an Arabic genie who will make all the dreams of an ardent traveler come true (see Appendix 1). The slogan can be “No Rubbing! Just Click!”
It is possible to implement the STP analysis (O’Guinn et al., 2014). As has been mentioned above, the target audience is the cohort of people aged between 15 and 55 years old. The Segment A consists of active people who are eager to explore the world. They seek for new experiences. Segment B consists of people who are active but may often have limited resources. They are willing to be in total control of their time. They like planning. Segment C includes high-income people who may want to explore cultural peculiarities of the UAE.
The sizes of the three markets are quite different. The largest one is Segment B as the young traveler may often have limited resources. However, these are the most numerous groups of tourists. This makes this segment the most attractive. More so, these are mainly young adults who use technology extensively.
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The focus will be made on a variety of options to explore the country. The reasonable price should also be mentioned. Such values as control, diversity, local flavor in everything should be stressed.
It is important to assess the implementation of the strategy (Fifield, 2012). The number of customers who purchase the service is one of the factors revealing the effectiveness of the strategy. The customers’ satisfaction should also be assessed. This can be done through the use of a feedback platform. People are likely to share their ideas using social networks. The more satisfied customers appear, the more effective the strategy is.
It is crucial to develop the resource and implement the marketing strategy within three to six months. Otherwise, there are high chances that instead of early movers the entrepreneurs will be followers, and the strategy should be changed. It is also essential to make sure that the services provided meet the needs of the travelers.
The services should be diverse, and the focus should be made on cultural peculiarities of the UAE. It is also necessary to make sure that mobile applications and the Internet resources are easy to use. It is necessary to start with the resources in English and Arabic. It is important to remain flexible and be able to change the strategy if necessary.
Akerman, I., 2015.Tourism going mobile. Gulf Marketing Review, 242, pp. 34-38.
Chaudhary, S.B., 2013. UAE tourism and hospitality sectors take off to a new high. [online].
Ferrell, O.C., & Hartline, M., 2013. Marketing strategy, text and cases. 6th ed. Stamford: Cengage Learning.
Fifield, P., 2012. Marketing strategy. 2nd ed. New York: Routledge.
O’Guinn, T., Allen, C., Semenik, R.J., Scheinbaum, A.C., 2014. Advertising and integrated brand promotion. 7th ed. Stamford: Cengage Learning.
UAE hospitality is on the move, say mobile technology experts. 2015. [online].