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New Product Invention: Australian Tourism Report

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Updated: Jun 9th, 2020

Executive Summary

Australian tourism sector has experienced a consistent growth over the past. It is one of the main contributors to the country’s gross domestic product on a yearly basis. Finding an appropriate investment opportunity in this industry can be very viable. Given the stable economic growth in many countries around the world, getting a new investment plan in the field of tourism can be a very viable idea. The hospitality industry is one of the most attractive investments that an investor can think of in this market. The number of visitors into this country, and especially around Kimberly is one the rise. Coming up with Kimberly Beach Resort is an investment that will surely give a positive reward to the investor. Kimberly region is one of the places that have been receiving visitors throughout the year. This project will be beneficial because the hotels in the region have since been overwhelmed by the current flow of the visitors. There is a gap in this market that this firm will easily fill.


Tourism is one of the fastest developing industries in Australia. In Kimberley, North Western Australia, tourism has been one of the leading sources of income. This is so because of the location of the region. The region borders Indian Ocean to the west, Timor Sea to the north, Tanami Desert and the Great Sandy to the southeast. This makes this region one of the best located regions for tourism in the world. Tourists always come to this region from all parts of the world. According to Kahn (2013, p. 86), Kimberley is one of the most visited regions in Australia by both local and international tourists. This strategic location means that those who visit this region can see several sites while in its hotels. Because of this, many tourists would spend a lot of time when they visit the region.

Finding an appropriate business opportunity in these regions can result into a great success to the investors. As Kahn (2013, p. 38) observes, most tourists always come to a region to spend money as they relax away from their offices or workplaces. The ultimate aim of a tourist is to spend time enjoying the luxury offered by their hard-earned money. Coming with a viable project in this region targeting tourists can be a massive success if this is done appropriately. A tourist’s hotel is the best business opportunity that can be very successful in this region. Kuri Bay may be the best location for this project. This is because of the location of this bay. The bay is remotely located and in order to access it, one would need a helicopter or a seaplane that can reach it. Despite the difficulty of reaching the bay, tourists have continuously been attracted to the beach due to its beauty and the remote location.

Tourist’s hotel would prosper because the place is a little further from the mainland and when one gets into the bay, it is cumbersome to get back to the mainland. People find it difficult using the seaplane to this place, especially those who are using it for the first time. Using a helicopter is a very expensive venture, especially those who may need to make several visits to the place such as those making educational tours. Coming up with a hotel in this bay will eliminate the need to travel back and forth once one lands on the bay. The tourists will have an opportunity to stay in this hotel for as long as they are interested in staying in this bay. This will offer them a cheap alternative cost of staying in this region compared to a situation where they would be forced to book hotels in major Australian cities.

This business idea may give returns after a very short time. This is because of the recent rise in the number of tourists who come to this region for tour. According to Kumar and Phrommathed (2005, p. 72), tourists sector has been experiencing growth in this country, especially in the past ten years. The number of hotels available for both the local and international tourists is reduced. The country has been ranked as one of the safest nation around the world. This has attracted various holidaymakers, and even investors who feel that their investments will be safe in the country. This means that the hotels are under intense pressure to host these visitors. This business venture would attract customers depending on the marketing strategy that would be taken by those who are in charge.

Industry Definition

The hotel industry is one of the oldest industries in the world. In this country, the industry is well established, with some of the players having been in existence for over the last fifty years. The hotel industry can best be defined as an industry that offers accommodation and meals to travellers who are miles away from their homes, but need somewhere to stay and eat while they are away from their homes. In Australia, this industry has been growing in equal proportion with the growth in the number of visitors who come to the country. The scope of this industry can be analysed at different levels, each defining the competitors that this firm will face. The following tree diagram demonstrates this.

Industry Analysis using the Tree Diagram

Industry Analysis using the Tree Diagram

The above tree diagram shows the industry players that this firm will be facing. From the top of the tree, this firm will be all the industry players in the hospitality industry irrespective of their level and size. As we narrow down the industry, the firm will be facing a competition from all the four star hotels and above. Narrowing this down further, this firm will face off with all the hotels with Spa and casino services in the industry. There are visitors who cannot stay in hotels with the tag casino because of the impression they have towards casinos. However, there are those visitors who only books hotels with spa services and casinos. It is this market segment that this firm will be competing with. Firms operating in this region have very strong brands which helps them attract and retain customers. To operate successfully in this industry, a firm needs to develop a strong brand that will be able to compete favourably with the existing brands.

Suitable Brand Name

According to Annacchino (2003, p. 118), brand is one of the most important asset that a firm can ever have. Kahn (2013, p. 83) on the other hand, defines a brand as the substance that remains of a firm after all the physical asserts have been taken away. It is the way the market view a firm and its products in the market. The best brand for this business venture will be The Kimberly Beach Resort. The brand name should adopt this brand name because of a number of reasons. The firm should adopt the name because of the popularity of Kimberly as a region. Although the resort is in Kuri Bay, adopting the name Kuri will make advertising difficult because Kuri is a region that is not as well known as Kimberly.

Kimberly is known, and advertising a product using this name will ease the awareness creation process. This brand name is also appropriate because of the region that Kimberly covers. The name Kimberly would mean that tourists who want to visit any part of Kimberly region would consider booking the hotel because they will be made to believe that the hotel will make their movement to this region easy. The name Kimberly will also open doors for expansion for this firm. By restricting, the name to a small region like Kuri Bay will make it difficult to expand the hotel beyond Kuri. Any expansion to other parts of the Kimberly region would force the firm to develop a different brand name.

The brand logo should be a beautiful coastal beach. This would help pass the message about the location of the Hotel. It will emphasize the fact that visiting the region and staying in the hotels will enable the visitor access the beauty of the beaches.

This industry has experienced a number of changes in the past few years. According to Kahn (2013, p. 96), the tourism industry is experiencing massive competition in this century. This is because of the number of players that have entered this field. This scholar holds that many investors have been attracted to this industry, and this means that they have to fight for the available customers. Annacchino (2003, p. 67) notes that in the past, the hotel industry was considered as being different from the tourism industry. However, this is not the case currently. The hotel industry forms the backbone of the tourism industry. This is because most of the hotels have come up with strategies where they take care of the tourist’s interest from the time they check in to the time they leave. Annacchino (2003, p. 112) says that currently, hotels uses their cars to take tourists to every destination they may wish once they check into the hotels. They would carry most of the activities that were previously done by urgencies in this industry. This makes them the main players in this industry.

Overview of the Competitors

This industry has very strong players who have been in operations for over five decades. The industry has numerous five and four star hotels that have gained popularity with both the local and international customers. The Sheratons are some of the strongest brands in this industry. Their main strength is in their financial power and the strong brand they have developed over the years. This makes them very strong in the market. However, they also have some weaknesses such as slowness in responding to the emerging technologies. This makes it easy for new investment to launch an attack and manage the competition in the market.

Macro environment Analysis

The macro environment analysis for this investment can be analysed both from the political, economical, social, technological and legal perspectives. The political and economic environments in this country have been very stable. The social environment is accommodating of such new investments. Just like any other industry, this industry is open to technological advancements. The legal structure put by the government support investments in the country

Marketing Strategies when Launching the Product

It is therefore, important to develop a strategy that would help make a firm be seen as a unique in the industry. This may be developed during the launching this product to the market. According to Kahn (2013, p. 129), the process of launching a product into the market is very important in developing the image of the firm and of the product in the market. According to Brown and Leavitt (2004, p. 63), the first impression that a product gets in the market will always determine its image among the customers. Product proposition is important in determining the type of consumers that would be attracted to the product. When launching the product into the market, care should be taken to avoid instances where the product gives the wrong image it should give to the market.

Annacchino (2003, p. 93) advises that when launching a product into the market, a firm should determine market forces, mainly the competitors it faces. Launching a new product should be done in a way that would attract the consumers and convince them that the new arrival has a better opportunity to meet their needs as compared to the existing products. This should not mean that it is done in a way that would provoke other competitors to act in a manner that may result into competition in the market.

Kahn (2013, p. 37) says that launching a product into the market requires a firm do determine the current needs of the market. The firm should determine what the market needs the most despite the existence of other firms offering the same product. The firm should then preposition itself in a way that would convince the market that the product comes to fill in the gap that existed before. The firm should convince the market that it comes with the solution that existing competitors were unable to offer. This will help in pulling away customers who were loyal to other established competitors in the market.

Annacchino (2003, p. 57) says that introducing a new product by a new firm is different from introducing a product by a firm that is already established in the industry. In this case, this firm will be introducing a product into the market as a new firm. This scholar advises that the best way of doing this is to try to ensure that this product is introduced as a new product into the product other than a product that is already in the market. The biggest task will be to come up with a way through which this firm such a product as hospitality service will be introduced into the market as a new product. Brown and Leavitt (2004, p. 13) say that the best way that this can be done is to offer this product in a different manner, or alongside other products.

Consumer Behaviour and Market Positioning

The consumer behaviour in the market will always determine market positioning that a firm takes in the industry. Given that this shall be a five star hotel, the hotel shall master consumer behaviour of customers in this class. Kimberly Beach Resort should be propositioned as a hotel that offers tourists more than just accommodation. The rooms should have internet connectivity and a computer that will enable Travers to conduct various activities online. A traveller who has some work pending can come to Kimberly Beach Resort, complete the task and send it back to the office through online means.

This means that those whose work can be conducted with access to internet-enabled computers may not need to cut short their tour because they have to go back to their offices. The hotel will offer them the facilities they need at the office, and therefore, it shall be an office away from the office. Kimberly should go beyond this. The firm should offer its visitors most of the indoor games. For instance, such games as pool, table tennis, poker, swimming competitions, and gym facilities should be available to the visitors. The management should make another step and find a way of making it easy for the lovers of gulf to be attached to the local golf clubs that are close enough to this facility.

The aim of the firm will be to convince consumers that this firm will offer the best facilities that any tourists may need. The pricing strategy should be based on the facilities offered and the prevailing prices in the industry. According to Annacchino (2003, p. 71), the pricing process should be done in a way that will not provoke competitors to equally lower their prices. It should be a price that would is worth what the firm is offering. The firm should not offer a lot but charge too little because this may make consumers feel that the firm offers substandard products in the market. Similarly very high prices may send away customers who may view the firm as being exploitative. Forming a niche in the market may help this firm set its own prices that would reflect its niche. As Kahn (2013, p. 121) says, the best way that a firm can come up with the best price is to develop its own niche in the market and develop a pricing mechanism that is unique to the market.

Promotional Strategies

Promotional strategies will always determine success or failure of firm in the contemporary world market (Brown & Leavitt 2004, p. 67). This is because in the current market, a firm will be competing for attention in the market. Ability of a firm to attract and retain customers will not only depend on the quality of the service offered to the customers, but also the advertising strategy that a firm employs. The current market has so many competitors that a firm will be forced to come up with mechanisms through which it will make its products outstanding in the market. As Annacchino (2003, p. 119) notes, the customer is always left to guess which firm has the best capacity to offer the desired benefits it needs. In order to make a decision on which product to purchase, a consumer will look for the product that has been positioned as that which meets the needs of the consumers.

For Kimberly Beach Resort, advertising will be based on the market segment that is desired. This means that segmentation will be important for this firm. Segmentation of the market helps in determining the best way in which a firm can meet the needs of its consumers. Consumers’ needs vary depending on their social class, religious groupings, age, culture, among other demographical factors. Kimberly Beach Resort should understand all the market segments that exist within this market. After this, the firm will then determine which segment is the most appropriate for its products. This will be important because as Kahn (2013, p. 82) says, promotions is always a reflection of what a firm offers.

This scholar warns that it is dangerous for a business unit to position their product in a given way only for the customers to confirm that what the firm offers is way below what is advertised. This is because when what is offered is below their expectation, and then the product will generate dissatisfaction. This will mean that the customer will not make a repeat purchase of the products offered by the firm. Customer retention is what determines the market share of a firm. When a firm is able to attract and retain customers, then it will be able to experience growth, and this will help it capture markets beyond the current scope.

After understanding the right market share, Kimberly Beach Resort should design a promotional campaign that will attract this segment. In the promotional campaign, customers should be informed of the location of the resort, all the products that are offered, the reason that makes the resort superior to the existing ones, and any other reason that may be needed by the consumer. The firm will target the middle class local and international travelers who come to Kimberly region for leisure travels. This market segment forms the majority of travelers, and they are easier to satisfy as compared to the upper class members of the society. This makes the segment attractive.

The channel through which the promotional campaign will reach the target group should be clearly defined. Social media marketing has become popular among marketers in the 21st century. Kimberly Beach Resort should consider using such media as Facebook, Tweeter, and YouTube among other social media to reach out to the market. This will help the firm reach for the international markets. The marketing management team should develop television commercials that should be uploaded in YouTube. The commercial should be given a name that is closely connected to key words that anyone who searches for information about Kimberly region may use.

This will make it easy for them to access this commercial. The mass media should not be ignored. This firm should use the local television channels to promote this product among the locals in Australia. The radio stations can also be helpful in reaching out for the customers. International televisions stations such as Aljazeera, CNN, and BBC can help reach out for consumers in Europe, Asia, and Africa and American markets. In the commercials should be snapshots of both the interior and exterior parts of the hotel, its proximity to the beach. All the important facilities found in the hotel should be captured in the commercial.

According to Brown and Leavitt (2004, p. 67), it is important to ensure that a firm conforms to the regulations put in place by the relevant authorities to avoid cases where the authorities interfere with its operations due to non-compliance. In this industry, consumers are very sensitive about their well-being. It can be embarrassing when an officer of a regulatory authority forces customers out of the firm and orders its immediate closure because of non-compliance. Customers will not only shy off from the hotel for fear of substandard products, but will also get annoyed with the firm due to the inconvenience caused. When a firm turns away customers because the authority has suspended its operations, customers will develop an impression that the firm lacks the capacity to meet the needs of the market. The management should ensure that such departments as the department of health, environmental agencies, and building and construction agencies, tax authorities amongst others are well consulted, and that their full consent is gotten before operations begin.

Finally, Kimberly Beach Resort should maintain safety within this facility. In this location, travelers will be concerned about their safety, especially given the fact that only a helicopter and a seaplane can be used to access the beach. It is a fact that Australia is one of the safest countries in the world. However, consumers would want to see a sense of security when they visit the facility. This is especially important for the international travelers who may be coming from insecure countries like Afghanistan. Their perception about security is presence of armed security officers at the entrance and the entire compound ready to arrest any security concern that may arise within the facility. This will convince them that once here; there security is not left to chance. The firm may hire officers who have experience in matters about security. These officers will ensure that all the visitors’ security is well taken care of while within the firm.


The above discussion is an elaborate description of the strategy that this firm should take in coming up with a new product concept. The following recommendations should be taken into consideration when implementing this project.

  • The marketing management team should ensure that they have an understanding of this industry within this country before launching the product.
  • The management should develop a marketing strategy that would convince the market that the products of this firm are unique.
  • It would be important for the management of the firm to employ people who have some experience in this industry to serve in most of the managerial positions.
  • The marketing management team should develop a mechanism through which the level of satisfaction of customers can be determined. This will help know when adjustments are needed or not.

List of References

Annacchino, M 2003, New product development: From initial idea to product management, Butterworth-Heinemann, Amsterdam.

Brown, M &Leavitt, P 2004, New product development: A guide for your journey to best-practice processes, American Productivity & Quality Center, Houston.

Kahn, K 2013, The PDMA handbook of new product development, John Wiley and Sons, Hoboken.

Kumar, S & Phrommathed, P 2005, New product development: An empirical study of the effects of innovation strategy, organization learning, and market conditions, Springer, New York.

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