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Tourism in Sydney, Australia Case Study

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Updated: Dec 8th, 2019

Target market

For a product or service to penetrate the market effectively, a target market must be identified (Abrams & Kleiner, 2003, p. 89). During 2011, Australia has forecasted an increment in the volume of its inbound tourism arrivals with a margin of 4.9%. However, the growth rate is expected to ease to an average of 3.9% annually until 2019(Invest In Australia, 2011, para. 4, 2011).

It is also forecasted that the total inbound economic value will increase with a margin of 3.8% annually during the same period. There are numerous tourist attraction sites in Australia. For example, Sydney has a considerable number of tourist attraction sites that can appeal both domestic and foreign tourists.

In an effort to promote tourism in Sydney, Sydney Tourism Authority has developed a new program referred to as ‘Sydney in a Day’. The objective of the program is to promote inbound tourism within Sydney, Australia. The core target market for this program is inbound tourists specifically leisure and business tourists.

Market entry strategy

There are different market entry strategies that a firm can use in an effort to position itself in the market. According to Schorsch (2008, p.31), asserts that joint partnership entails entering into a written agreement with other parties in an effort to undertake a particular activity. The parties to the partnership devote their resources to ensure accomplishment of the desired objective.

To ensure success of the new program, Sydney Tourism Authority will form a joint partnership with well established tour firms, management of tourist attraction sites and recreation facilities. The objective of partnering with these parties is to ensure that the program contributes towards the tourists attaining a unique experience.

Marketing mix

For the ‘Sydney in a Day’ program to be successful, Sydney Tourism Authority will integrate the concept of marketing mix. Considering the intangible nature of tourism, Rao (2007, p.347) asserts that it is critical for the marketing mix strategies to be effectively developed and implemented. This will increase the probability of achieving the desired level of customer satisfaction.

Product strategy

To attract a large number of inbound tourists, Sydney Tourism Authority will ensure that the inbound tourists associate the program with value for their money. This will be achieved by effectively designing the product. In order to enhance the image of ‘Sydney in a Day’ program amongst the tourists, the authority will ensure that the product is effectively packaged.

This will be achieved by making the product to be comprehensive. The program will start at Circular Quay and end at Darling Harbor. The Authority will also ensure that a number of elements are integrated. For example, it will be ensured that efficient and comfortable form of transportation is provided.

Additionally, the program will also entail visiting major recreation facilities and tourist attraction sites in Sydney. To give a large number of inbound tourists an opportunity to visit different attraction sites, ‘Sydney In a Day’ will be a continuous program. This means that it will be conducted every day of the week.

In order to visit all the tourist attraction sites and recreation facilities in Sydney, Sydney Tourism Authority has designed the program to take 14 hours.

Pricing strategy

Pricing is one of the most important marketing mix elements that should be considered in an effort to promote products or services (Lamb, Hair & McDaniel, 2009, p.45).Sydney Tourism Authority recognizes the fact that consumers are price conscious in their consumption patterns. As a result, the Authority has effectively formulated a pricing strategy.

Considering the fact that ‘Sydney In a Day’ is a new program, a number of pricing strategies will be utilized. To ensure that the price set appeals a large number of inbound tourists, penetration pricing strategy will be utilized. This will entail setting the price of the program at a relatively low point compared to other private tour firms operating in Sydney.

Additionally, psychological pricing strategy will also be integrated. This will involve setting the price point of the entire program at a level that influences the target market’s perception of price.

In pricing the tour package, the authority will integrate bundle pricing whereby the tourists will be required to pay a single price for the various sites to be visited (Pride & Ferrel, 2010, p. 593). The price of the tour package will be set at $89 for adults and $58 for children.

Promotion strategy

In an effort to create awareness to a large number of inbound tourists, Sydney Tourism Authority will integrate an effective communication strategy. Market awareness will be undertaken by integrating a number of market communication techniques. Sydney Tourism Authority will use both traditional and emerging marketing communication techniques.

Sydney Tourism Authority will publicize the program in major dailies within Australia. Additionally, the program will also be publicized in various Australian travel magazines such as Australian Caravan, Cruise Passenger magazine and Get Lost Travel Magazine amongst others. Tourism leaflets will also be supplied to major tourist hotel and restaurants.

Information about the program will also be posted in Sydney Tourism Authority website. This will give tourists seeking information about Sydney to learn about the program. Social media will also be integrated in creating market awareness. To achieve this, Sydney Tourism Authority will design a video which will show the tourist attraction sites and recreational facilities incorporated in the program.

The video will be posted on You Tube so that tourists can watch the tourist attraction sites. The program will also be publicized through other social communication networks such as Face Book.

Incorporation of both traditional and emerging marketing communication mediums will enhance the effectiveness with which market awareness is conducted. As a result, there is a high probability of the comprehensive nature of the program appealing these tourists.

Distribution strategy

The program ‘Sydney in a Day’ will start by visiting Circular Quay which is the center for Sydney Harbor. Circular Quay has a number of tourist attraction sites such as Taronga Park Zoo. The tour will advance eastwards towards the Royal Botanical Gardens and historical sites which include Jenolan Caves. Another historical site that will be visited is the Dawes Point.

A tour to Sydney Visitor Center where the tourists can access important information regarding Sydney will be made. A visit to Luna Park which is an amusement park will also be made. The program will also entail visiting the Art Gallery of New South Wales where a lunch stop will be made. After the lunch, the tour will proceed westwards to other tourist attraction sites such as St.

Mary’s Cathedral, Sydney War Memorial and the Hyde Park. While still in New South Wales, the tourists will be taken to The Blue Mountains where they will have bush tours through the gorges and also visit the national park areas. The tourists will be taken to major shops located in George, Elizabeth and Castlereagh Streets.

To give the tourists an aerial view of the city, the tourists will be taken to the observation deck at Sydney Tower. To enhance their level of satisfaction, the customers will be taken to Sydney Harbor Bridge which is considered to be one of the wonders of the world. The visit will then proceed to Chinatown located at Dixon Street. A stop will be made at this point for the tourists to refresh.

The tourists will have an opportunity to eat indigenous foods. Afterwards, the visit will proceed to Sydney Entertainment Center where they will be entertained by various cultural groups and later visit Darling Harbor.

To ensure that the tourists have good view of Darling Harbor, they will be taken around the Harbor using the monorail. They will also be given an opportunity to explore the Harbor. To mark the end of the day, the tourists will have their dinner at George St. and later be entertained at Sydney Entertainment Center.

Marketing action plan

For the program to be successful, Sydney Tourism Authority has developed a comprehensive marketing action plan. The action plan outlines the goals that Sydney Tourism Authority intends to achieve within a period of one year. Additionally, the specific actions to be undertaken in order to achieve the desired goals are outlined.

Sydney Tourism Authority intends to increase the number of inbound tourists who enroll with the program to 500,000 within the 1st quarter of the year. To achieve this, Sydney Tourism Authority marketing department will conduct an aggressive marketing campaign. The campaign will be aimed at creating a sufficient level of market awareness amongst inbound tourists in Australia.

Sydney Tourism Authority also intends to increase the sales revenue generated from the new program with a margin of 25% every quarter of the year. This will be achieved by undertaking aggressive marketing campaign.

The firm will ensure that information regarding Sydney in a Day program is accessed by all inbound tourists. To increase the probability of achieving this, Sydney Tourism Authority will liaise with tourist travel companies, hotels and restaurants in Sydney so as to ensure sufficient market awareness.

For the program to be successful in the future, Sydney Tourism Authority will update the program every month. The objective of updating the program will be to add value to the program. The resultant effect is that the tourists will be able to achieve a high level of satisfaction.

To be effective in updating the program, Sydney Tourism Authority will seek the opinion of the tourists who have consumed the new product. This is due to the fact that the tourists will be able to give information on what should be improved.

Reference List

Abrams, R., & Kleiner, C., 2003. The successful business plan: Secrets and strategies. Palo Alto, California: The Planning Shop.

Invest In Australia. 2011. Tourism and hospitality industry in Australia. Web. Available at: .

Lamb, C., Hair, J., & McDaniel, C., 2009. Marketing. Mason, Ohio: South-Western Cengage Learning.

Pride, W., & Ferrell, O., 2010. Marketing. Australia: South-Western Cengage Learning. Rao, R., 2007. Services marketing. New Delhi: Dorling Kindersley.

Schorsch, M., 2008. Market entry strategies for Russia: A comprehensive survey based on expert interviews. Moscow: Bremen Diplomica-Verl.

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IvyPanda. 2019. "Tourism in Sydney, Australia." December 8, 2019. https://ivypanda.com/essays/tourism-in-sydney-australia-case-study/.

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