Unit VIII (Part III to Unit VI)
Kato0694
bhm_4680_unit_vii.docxRunning head: BHM 4680 Unit VII Project 1
BHM 4680 Unit VII Project 2
BHM 4680 Unit VII Project
Columbia Southern University
Kayl’n Vives
06/14/2016
BHM 4680 Unit VII Project
In any business, marketers use market segmentation to identify the most profitable clients for their services or products. In the modern economy, it is indeed important to for developers to locate the most desirable group to whom they should promote and advertise their offerings. It is believed that marketers are tasked with the duty to provide the right services and products to the desired customers and at the right place (Kotler, Bowen & Makens, 2014). Therefore, marketers use market segmentation to break up the larger market into meaningful segments. Each of these segments bears its unique attributes.
Market Segmentation
Marketing strategies aim at identifying target markets and developing a marketing mix that appeals potential customers. Marketing mix ideas are organized in terms of 4Ps. However, the goal for Napa Private Tours is not just to develop a particular strategy but to concentrate on providing value to their main marketing segments. Recently, research on potential wine or even wine tourism segments has been increasingly limited (Kotler et al., 2014).
Geographic Segmentation
Majorly, winery visits to Napa Valley definitely compel long-distance tourists and foreigners. However, most demand for Napa Private Tours will resonate from both regional and local markets. With an increase in packaging and promotion, it can be expected that more tourists will frequent Napa Private Tours and a higher percentage of these people visiting the winery will be dedicated wine tourists.
Socioeconomic and Demographic Segmentation
The main target market for Napa Private Tours is the middle-aged and the old. Further, this will stretch to include the affluent, knowledgeable wine consumers. What is more, special-interest populations, like family affinity groups and wine clubs are also a reliable potential.
Psychographic Segmentation
Napa Private Tours will conduct more research on the attitudes, lifestyles and personalities of their wine tourists and fanatics, including how these aspects impact on demand and tastes.
Napa Private Tours will segment wine tourists centered on their travel patterns, purchasing behaviours and levels of spending. Just like wineries and destinations, the development will seek to ascertain highest ‘yield’ clients, those that re-visit the premise regularly and spend the most as well as the countries of origin that send the best yield tourist. In this case, dedicated wine tourists will have the highest spending, frequencies compared with larger tour groups of common interest sightseers.
Target Market
Although the search for a dedicated wine tourist is detrimental, Napa Private Tours will not assume secondary markets, especially those with keen interest in entertainment, sightseeing, socializing and culture. Interestingly, the development fully understands that it can attract passers-by and local residents with relatives or visiting friends to make spontaneous visits and might seek to influence the spending power. Although many wineries in the region might implies stiff competition for Napa Valley Tours, especially from Napa Valley Wine Train, the greater the drawing power for the dedicated wine tourists.
The company will use variables like compatibility, size, cost to reach, and expected growth to determine whether they have targeted a viable market. It will be important to determine the size of the target market and ascertain whether it will be worth pursuing. The company should understand that although the targeted market might be small, it might be profitable is it is projected to grow. Further, there will be concerns whether the market is accessible with Napa Private Tours’ tactics and how the market is aligned to the company’s goals.
Marketing Objectives
Napa Private Tours will identify specific marketing objectives to rapport their long-term goals. Resultantly, they will use the SMART mnemonic to coin the objectives (Kotler, Bowen & Makens, 2014). The prompt will assess the sustainability of the objectives aligned to push the strategies or improve their business processes. Also, the company will seek to grow its revenue by achieving a 20 % return on the capital employed by 2017. Further, it is worth noting that, as a new development, Napa Private Tours will be required to conduct increased promotional campaigns to enlighten potential customers of their presence in the market.
Since the company is just making its entry in the wineries industry, it will be important for them to develop survival strategies due to the increased competition from established rival companies like Napa Valley Wine Train. More importantly, the company will be required to target new customers with the main idea of growing their market share. Return customers are indeed a good deal for any business and the business will invest in customer relationships to ensure that all they earlier customers re-visit in case they need a wine tour. Lastly, the company will be required to invest largely in enhancing their brand awareness. This will be done through online portfolios and media advertisements.
References
Kotler, P., Bowen, J., & Makens, J. C. (2014). Marketing for hospitality and tourism. Upper Saddle River, NJ: Prentice Hall.
