Marketing Plan of Horizon Tours Essay Example

accomplish this, the company relies on a proficient team with vast experience in the travel industry, having previously worked for renowned brands across the globe. The primary objective of Horizon Tours is to link travelers with suitable service providers, travel destinations, and accommodation packages that meet their specific preferences.

The goal of Horizon Tours is to provide excellent customer service and cater to individual preferences with the help of committed staff. The company strives to improve enjoyable travel experiences for customers who have been neglected by competitors in the industry. Horizon Tours aspires to lead the market in providing budget-friendly travel options and utilizes technology to foster innovation.

Review: Marketing Goals and Objectives 1.2

The goal of Horizons is to target and attract newly employed individuals who are interested in technologically advanced products. The company plans to increase travel packages for this untapped market by implementing targeted marketing strategies. In order to achieve sales growth, Horizons aims to reach out to these individuals through familiar channels. The marketing strategy includes minimizing resources while ensuring that the products remain affordable.

The marketing goals and objectives align with the firm's mission of maintaining leadership in adventure travel provision by utilizing technology. The agency aims to expand its operations in the travel industry to attract more potential clients, making it crucial for Horizon Tours to use technology to accomplish its mission.

The marketing goals and objectives at Horizon Tours align with the external environment, while their strategies align with the industry's social trends. These social trends involve organizations utilizing technology to minimize advertising costs.

The marketing goals and objectives of Horizon Tours are centered on meeting the present needs, desires, and

preferences of its customers. The primary focus is on tech-savvy young travelers. By incorporating technology into its operations, Horizon Tours can successfully engage with its desired customer base. Additionally, the company will prioritize customer preferences by involving them in the creation of their travel packages. This personalized approach enhances the overall enjoyment experienced during these adventures.

For future actions, it is crucial to evaluate the current condition of the business and thoroughly assess its present marketing strategy and performance in order to make well-informed decisions.

1.3.1 The marketing strategy currently in place

The company's current marketing strategy is centered around increasing awareness of affordable travel options for young people. The current marketing strategy for the 4-Ps is outlined below:

Product

Horizon Tours specializes in providing customized and affordable luxury adventure experiences for young travelers. Their goal is to offer tailor-made packages that cater to their customers' specific needs, enabling them to select their preferred activities.

The pricing information is presented in the HTML tag

Pricing

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Horizon Tours utilizes a low-cost strategy to provide competitive pricing for its products. By adjusting prices based on the specific items in a customer's package, the company aims to maintain competitive pricing. This may make certain services seem pricier, but overall, Horizon Tours' prices are generally lower compared to competitors'. Furthermore, customers can reduce travel expenses by customizing their package's services.

Distribution

The business heavily relies on its online presence for distributing products, as the majority of the target population prefers conducting transactions online. Additionally, the group utilizes social media for operational purposes and seeks travel agents who can help establish connections with their friends and acquaintances.

Emphasizing the subject of promotion, the following text elaborates on this topic.

Horizon Tours

operates on a constrained budget and relies heavily on online platforms. The company predominantly utilizes social media for product promotion. Advertising primarily takes place through hashtags on Twitter and Facebook promotional updates. Additionally, the company relies on client referrals to generate awareness.

The company's successful pricing strategy aligns with clients' budget, giving them control over travel expenses. Positive results have been achieved through the use of social media, specifically paid Facebook posts. However, promotion on Twitter has not been as beneficial due to its user base consisting mostly of individuals less inclined to seek adventurous experiences.

1.3.2 The current performance

Horizon Torus has seen a decline in sales over the past eight months due to seasonality, which is a common issue for holiday companies globally. In the first three months of operation, the company only achieved 60% of its sales target and this declined further in subsequent months. Recognizing that Twitter did not generate expected traffic among their target groups, Horizon Torus reduced promotion activities on this platform and instead focused more on targeted marketing efforts. This strategic shift resulted in increased sales. Additionally, expanding services to additional countries helped mitigate fluctuations in the travel industry caused by seasonal variations. During the last quarter, the company generated a profit of $120,000 and anticipates further growth as promotional efforts become more precise and effective at driving sales.

Various global issues, including terrorism, have adversely affected the travel industry's performance in recent decades. Consequently, operational costs for industry players have risen. These developments have led to regulatory changes aimed at controlling the industry and increasing costs. Additionally, organizations in the travel industry have implemented ineffective strategies for attaining growth in

this new setting.

1.4 The resources that the organization currently has and expects to have in the future.

Horizon Tours has limited access to capital for its operations. The company relies mainly on its four main co-founders who manage different operations within the company. This skilled team allows Horizon Tours to operate with minimal resources in the travel industry. Additionally, the company is actively establishing partnerships with hotels and adventure sites outside the traditional markets of the United States and Europe.

Horizon Tours has limited capital access due to a lack of assets. However, the young directors have access to various microfinance opportunities online, which have lower interest rates compared to other financing options for startups. This will enable Horizon to finance its operations at a lower cost. Access to these affordable loans gives the organization an advantage over its competitors whose founders cannot access them.

The founders of Horizon Tours bring a wealth of experience that will be valuable for the company's success. One of the founders has expertise in hospitality businesses that are family owned, which will be particularly useful given Horizon Tours operates in the travel industry. Additionally, another founder has eight years of experience in internet marketing, making them well-equipped to drive the company's online marketing activities. Any areas where Horizon Tours lacks resources will be addressed by hiring skilled staff to ensure competitiveness in the travel industry.

1.5 Current and Anticipated Cultural and Structural Issues

Horizon Tours culture will remain consistent as the company expands, emphasizing its willingness to adapt. This culture is vital for the company's survival in the ever-changing travel industry and is driven by innovative responses to evolving customer demands. The existing culture

has contributed to the company's success, indicating its relevance for industry players. Currently, there are no structural problems impeding Horizon Tours' operations, and there are no anticipated issues in the near future. However, if the internal environment starts to display structural issues, Horizon Tours is prepared to make the necessary changes to address the situation.

2. The Customer Environment

2.1 The customers that the Firm currently has and could potentially gain.

Horizon Tours caters to a diverse clientele, predominantly young individuals seeking budget-friendly adventures. This includes students and recently employed young professionals without significant financial resources or children. Additionally, the company serves foreign travelers from countries like Germany, France, and Canada who opt for Horizon's services to explore destinations within the United States. In terms of Europe travel, both American and Asian customers make up the majority of Horizon's primary customer base. Despite being online-based, the company has also attracted customers from regions like Australia who wish to visit European destinations, although their numbers remain relatively small but steadily increasing. Notably, the largest customer segment originates from the United States, followed by French and Canadian patrons.

The main customers of Horizon Tours are customers who use their services to create unique experiences. This includes customers from Asia and Germany who plan adventurous group tours based on common interests. A growing segment of customers is traveling students who use Horizon services to plan their trips to new destinations, especially international students in European countries. Additionally, corporations interested in planning visits for their staff in various regions globally are also potential customers for Horizon Tours. The company recognizes that the growth of globalization has led to an increase in exchange programs

financed by different institutions.

The customers who have previously utilized Horizon Tours services are important contributors in the acquisition of the company's goods. As an primarily internet-based enterprise, the feedback shared by these customers on different forums plays a vital role in endorsing the products (Gustafson, 2012). Moreover, the company has created a virtual community where prior customers can exchange their pictures from past tours, thus aiding in informing potential customers about the goods.

Customers who have bought the company's products.

The purchase of Horizon packages is tailored to customers' travel preferences. Clients have the option to choose the number of days and places they visit, and decide whether to travel alone or in a group. Additionally, complimentary products such as internet access are provided in areas without service.

The main characteristics of heavy users of the services include those who want to visit multiple places in one trip and couples who have saved for a trip together. Young professionals starting their careers and looking to reward themselves within their budget are also considered heavy users of Horizons. Light users, on the other hand, are typically older individuals who have been recommended to use the services by their children or younger colleagues. Corporate clients who travel on a limited budget and have some control over their travel plans are also part of the light user group. Heavy users are more likely to use complimentary products, often planning their travel well in advance.

2.3 Customers Buying Products

Horizon Tours exclusively sells its products through its website, bypassing intermediaries. E-commerce is the main channel for selling their products. Lately, purchasing habits on e-commerce platforms have changed, with some customers now making purchases via

links shared on the company's social media sites.

2.4 The Time Customers Make Purchases

The promotional events for Horizon Tours have primarily taken place online through social media. The hours of operation are typically from 8 AM to 5 PM. However, due to time zone variations in the regions served by Horizon Tours, there are some individuals who submit requests after this time. Horizon Tours has no control over these time differences and the corresponding time perceptions.

2.5 The customers choosing the company

Horizons products offer customers the advantage of customization and convenient trip planning from their workplace. Through easy access to products and services, Horizons ensures that customer needs are met in comparison to competitors. As customers' needs evolve with a desire for increased earnings and time savings, they will inevitably seek the most effortless means of organizing their adventure travels.

The company's products lack the capability for non-customers to visit an office or meet with sales representatives, which is a fundamental need. In contrast, competing products offer this physical presence and appeal to older travelers. Converting non-customers into customers would require changing the current business model, which is unlikely. Nonetheless, Horizon Tours strives to cater to corporate clients in order to make their services accessible to older generations of travelers.

3. The External Environment

Competition in section 3.1

Horizon Tours stands out from its competitors with its distinct approach to service delivery. Unlike traditional travel agencies that necessitate in-person visits for trip planning, Horizon utilizes technology to engage with customers. Nonetheless, fluctuations in prices offered by other providers can affect Horizon's operations as clients may be drawn towards brick-and-mortar agencies. Jonexy Travels poses a

potential future challenge for Horizon as the company is currently revamping its website as part of promotional endeavors. Although Jonexy presently does not facilitate online booking, it is anticipated that they will acknowledge the significance of this strategy and embrace it down the line.

3.2 Economic Growth and Stability

The economic conditions in the United States, where Horizons Tours is located, indicate a 1.9% GDP growth in the final quarter of 2016 and this growth is projected to continue. California, the state where Horizon Tours operates, has positioned itself as one of the top ten economies worldwide. As per the 2016 report, California boasted a nominal GDP of $2.6 trillion, making it the 6th largest economy globally. This surpasses countries like France with a GDP surpassing $37 million.

Despite its higher GDP, life in California poses challenges for residents. The cost of living exceeds the national average in the United States, leading to increased prices for most goods. According to a twelve-month report ending in July 2017 from the U.S. Labor Department, the inflation rate is at 2.5%. However, consumer confidence remains relatively high compared to the national average. Despite facing higher expenses, consumers are able to meet their daily needs and save a significant amount of money that they can then use for indulging in luxury activities like seeking adventure. As a result, the travel industry flourishes in this region as new organizations enter the market to cater to clients' needs.

3.3 Political Trends

There has been a recent shift in political trends in the region, potentially impacting the operations of Horizon Tours. Since the November 2016 Election, there has been a greater emphasis on developing home-based organizations. This

period has seen an increased push to support the welfare of local residents, which may influence future hiring at Horizon Tours. Additionally, industry lobbyists are favoring the promotion of domestic tourism and therefore aim to limit the number of international trips organized by companies.

Legal and regulatory matters concerning the website are outlined in section 3.4.

The California State Agency for the Registration will be responsible for accrediting Horizon Tours so that it can begin operations and obtain an international travel certificate to organize trips in various countries. This accreditation will be crucial for the company to navigate any legal challenges that may arise in the travel industry (Andreu, Aldas, Bigne, and Mattila, 2010).

Technological advancements have reached a level of 3.5.

The changes in technology affect how customers search for product information. For instance, Horizon Tours, as an online organization, is affected by the introduction of new technology. The Horizon Android Application has made it easier for customers to access company information. With the Android Application, customers can get discounts and receive notifications on their phones when new products are available. Technology advancements also make it easier for clients to compare different items for their packages.

The promotion of Horizon Tours' products is greatly influenced by technological changes, as the company relies on technology to promote its brand. The introduction of new technology enhances the company's ability to place banners and distribute advertising materials online. Additionally, technological advancements improve customer relationship management by providing easier communication channels for clients to submit queries and receive timely responses from staff members. These advancements also enable customers to share their travel experiences through photos and videos, enhancing the overall client experience. Technology

further facilitates Horizon Tours' communication with partners, making it easier to promote the brand and negotiate price reductions.

Currently, the company is unable to utilize Instagram and Telegram technology because of insufficient staff. However, as new team members join, the company will gain the capacity to manage more social media platforms. The integration of all social media sites onto one platform is a forthcoming technology that can enhance the firm's opportunities.

When considering sociocultural trends, it is important to consider the following:

3.6 Sociocultural Trends

The operations of Horizon Tours are affected by changes in customer lifestyle, such as the increased need to earn a living and save for other properties and amenities. This results in a reduction of the customer's spending ability during adventure travels. The company is forced to lower its pricing and, as a result, reduce its value. In response to these lifestyle changes, the company must modify its promotion message to inform customers about the lower prices and promotions that align with their decreasing expenditure on luxury activities. Additionally, the decrease in utilization of the company's services necessitates downsizing the number of staff at Horizon Tours.

The cultural diversity of Horizon Tours' customers drives its expansion to various regions. Although the travel agency itself is not directly affected by environmental issues, its partners who oversee the sites visited by clients confront environmental challenges. When there are restrictions on visiting certain areas due to environmental concerns, it is the industry's duty to educate customers about preserving the environment in the places they explore during their journeys.

Market Needs

Horizon Tours aims to cater to the demand for cost-effective adventure tours specifically targeted at young travelers with limited budgets who

want to engage in adventures that align with their personalities. The company recognized the necessity for affordable travel services that accommodate individuals' tight budgets and busy schedules. Unlike other organizations, Horizon Tours stands out by leveraging technology to provide customers with more customizable package options rather than offering a one-size-fits-all approach. Prior to establishing the business, Horizon Tours conducted extensive market research to adapt its business model to meet customer expectations. This enables customers to enjoy affordable adventures that align with their unique personal preferences. Additionally, the company aims to foster a sense of community and enable customers to share their experiences by creating various social groups.

5. Market Trends

The rise of social media usage and the incorporation of review platforms by customers has always been a catalyst for changes within the travel industry. Through these review platforms, customers are able to provide feedback on the services they have received, which in turn highlights areas that organizations need to address. Additionally, these reviews can influence potential customers' decision to avoid certain businesses with negative reviews. Integrating customer feedback into a travel agency's strategic plans is a emerging trend that can make a significant impact on operations.

Horizon Tours stands out from its competitors by taking advantage of a market opportunity. They provide customizable travel packages, allowing customers to highlight their uniqueness and share their adventures on social media. This chance is vital for gaining a competitive edge in today's society, as the impact of social media continues to grow and individuals seek opportunities for self-expression in their daily lives.

The market's growth rate is 6%.

The rise of adventure travels, driven by the increase in the middle class population,

has led to a boost in disposable income. To maintain competitiveness in the travel industry, Horizon Tours plans to leverage technology for their expansion. The projected website sales for the first three years are $400,000, $600,000, and $750,000 respectively. The progress of Horizon Tours will be determined by quarterly sales.

III. SWOT Analysis

1. Advantages

Horizon Tours has two main advantages as it starts its travel business. One is its low initial costs, which make it easy to establish operations without extensive fundraising. As an intermediary connecting clients to their destinations, the company has relatively low operating costs and therefore requires little initial capital (Gustafson, 2012). The only major expenses before starting operations are acquiring a professional website, making a rent deposit, paying insurance premiums, and covering legal fees for registrations.

Horizon Tours utilizes the Internet to engage customers, offering packages that include transportation, dining, accommodation, and activities. Customer involvement is key at Horizon, distinguishing their products from competitors.

2. Weaknesses

Horizon Tours faces a weakness in the adoption of a lean start-up model, which prioritizes minimizing operational costs. While effective in the initial stages, this model may require significant funding from a third party for expansion. The failure to secure this funding may hinder the expansion process.

The lack of professional input in certain operational areas is a challenge for the company. Horizon Tours is unable to afford highly knowledgeable and experienced professionals in sales and marketing, so these operations will be led by the owners. However, the company will receive assistance from newly graduated interns to support its current operations. The main concern with this approach is the potential hindered growth of the company.

Opportunities

Horizon Tours' founders possess extensive knowledge of

the travel cycle, enabling them to drive the company's growth by offering customers a comprehensive tour experience. Unlike many other players in the industry, who only concentrate on providing accommodation and transportation services, Horizon Tours aims to distinguish itself by offering all aspects of travel services tailored to clients' personal preferences. This approach will help the company build a loyal customer base that values self-expression while participating in various activities.

Threats

Horizon Tours is facing a significant challenge from its competitors who are beginning to utilize internet-based promotion and customer feedback through reviews on social media. These competitors are sending website links to customers via email or SMS, encouraging them to write reviews. This strategy allows the competitors to gather valuable information from customer feedback and apply it to their operations. As a result, they are adopting a similar customer-review model employed by Horizon Tours.

Horizon Tours is at risk due to the easy entry into the industry, which is caused by the low initial capital needed to start operations. This ease of entry may result in a notable increase in competitors in the industry in the near future. If larger players with greater initial capital enter the luxury market, Horizon Tours could face heightened competition, potentially endangering its operations. These competitors may surpass the company by consistently developing new products that meet customer needs.