Marketing Plan 2013

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Nicole Day Sinthusha Varendran Erica Sweeney Andrea Runco Professor: Mary Louise OHara March 20th TMS200TB

Marketing Plan Awaiting Amsterdam

Mission Statement: To promote the historical and cultural aspects of Amsterdam to improve the social image that Amsterdam portrays. Goals and Objectives: Bring more revenue to Amsterdam, create jobs, increase tourism rates and to make sure our consumers are experiencing Amsterdams culture to its fullest potential and not for what its perceived as. Executive Summary: Our goals and objectives to market a highly successful destination are to highlight Amsterdams essential unique qualities and for our travellers to see our destination in another light. Our goal is to bring a new personality of tourism to Amsterdam. We want to give our customers an exclusive experience of partying history and culture! Our strategy is to advertise, promote, and get our product out there to our specific target market resulting in a successful product launch. Our objective is to ensure our customers experience an intimate memorable vacation that they are able to share with friends and family. The only issue we had was regarding our pricing factors, as anywhere in Europe is fairly expensive. Amsterdam pricing is a little high so we did have to work extra hard to create an affordable trip. We expected peoples first impression of the vacation to feel hostile towards it because Europe is expensive and people associate any place in Europe to be expensive and high end. We also expected our age group to take an interest in this destination because Europe is the in place to travel to right now. We did expect the marketing/advertisement of this destination to be relatively simple because we chose the social networking approach, which is a huge part of our target markets life in this current generation.

A) Analysis forecasting Amsterdam is the nominal capitol and it being the countrys largest city to a population of more than 750,000 and with over 3.5 million foreign visitors a year. Since a portfolio analysis evaluates a very diverse group of goods and services, based on long term planning and economic forces and allows managers to compare a range of diverse products and look at their current contribution and future potential (Hudson 40). Some of Amsterdams main attractions are: The Red Light District Dam Square Begin of Amsterdams Castles Magere Brug Van Gough Museum etc. Reasons for visiting Amsterdam Culture and history Easy going atmosphere Museums Reputation Wandering around the city 68% 33% 50% 33% 95%

Amsterdam is progressively starting to get recognized for its new attractions. The number of visitors that leave from Amsterdam to visit one or more attractions in the reign has progressively risen by 28% since 2007. The most popular attractions are the Zuiderzee towns with 34%, The Zaanse Schans with 29% and Haarlem with 15%. Research shows that American and British tourists are mostly in the nightlife area while Dutch visitors embrace their culture and city in the theatre and concert locations ("Culture becoming increasingly important to visitors to Amsterdam"). Americans and the British spend the most amount of money on the duration of their stay which averages to 188 Euros and 155 Euros per person. Amsterdams visitor economy generates and estimated 5.7 billion Euros annually and an excess of 54,400 full time jobs. Amsterdam has recently moved to 9th place on the Euro plan league table for the number of nights spent in hotels due to international exposure of new attractions. B) Competitor analysis: As Amsterdam being a country in Europe it has many different competitors with Germany and Belgium being two of the bordering countries but, a city that in the textbook says provides similar goods and services to the consumer at a similar price (Hudson 41) would be Belgium. In the chart below it will show you how many attractions are similar due to either the night life factor or historical aspect of these cities in which makes these cities similar in product category:

Belgium Attractions Antwerp (Night life) Bruges Ghent

Amsterdams Attractions Red Light District (Night life) Canal Ring Venice of The North

B) Segmentation Analysis: Demographic analysis: in the textbook can be defined as the primary variables of age, gender, family life cycle and ethnicity to segment the markets (Hudson 43). Visitor profile: due to the article I am Amsterdam they quote that Amsterdam is increasingly becoming more diverse an example could be nationality and age. Tourists aged from 21-30 years old at (29%)are the largest group of travellers to Amsterdam as opposed to all the other age categories range from 12%-16%. Amsterdam is also attracting a higher percent of new comers; the city percent of new comers is almost equal to the return visitors ("Culture becoming increasingly important to visitors to Amsterdam"). The top 4 countries in terms of visitor numbers are: The Netherlands, Great Britain, United States and Germany. In the chart below it shows you the age groups and percents of visitors who were travelling: To narrow it down 48% of the travellers who travel to Amsterdam are leisure travellers. People who would most likely travel would be people in their younger years of life and who are looking to party and have a good time or who are back packing through Europe.

20-30 (30%) 31-40 (14%) 41-50(13%)

Geographic: Amsterdam is located in the northwest part of Europe and is bordered by East Germany and the South part of Belgium. 25% of visitors visit Amsterdam as a part of their European trip and 75% is not a part of their European trip. Amsterdam has over 10 million visitors every year that are primarily from Germany the UK

United States, Israel and Belgium. Geographically speaking the textbook states division of markets according to geographical boundaries such as countries, provinces/states, regions, cities, or neighborhoods (43). Since the definition states that it is the division of markets according to geographical boundaries in the chart below shows the countries visitors to Amsterdam:

Over Night Stays Netherlands Great Britain United States Germany Italy Spain France Belgium Other countries

Total amount of people 1,684 1,317 980 741 584 570 567 243 9,747

Benefits: There are many benefits of visiting Amsterdam not only yes it does have things like coffee shops and the red light district, which it is most famous for it, is also an amazing historical city with amazing architecture with beautiful scenery. 66% of people visit Amsterdam for it being a beautiful historic city, 50% of people visit Amsterdam because of Museums, 32% of people visit Amsterdam because of the amazing atmosphere

and 95 of people love to just wander the city ("Culture becoming increasingly important to visitors to Amsterdam). Behavior: A behavior analysis divides the market into groups based on various types of buying behavior such as usage rates, user status, loyalty status, buyer readiness stage and occasions (Hudson, 43). We are going to demonstrate user rates and how Amsterdam has progressively brought up their tourism rates from when they were in a so-called recession. In 2010 Amsterdam attracted 5.3 million tourists. Tourism in Amsterdam has increased by a mere 22%. Due to the bunch of tourists there has been a 1.2 million increase in bed nights in Amsterdam. Due to Amsterdam having many attractions and the Rid Light District being their number on attraction they had to increase the length of stay per visitor and their room rates. In mid 2010 Amsterdam had 370 hotels with a total of 21,700 rooms and 47,000 employees, because of this increase this have given Amsterdam a better occupancy rate of 72% in 2010 and it also gave hoteliers spaces to increase their room rates in 2010(City of Amsterdam Research and Statistics). Psychographic: In the text book Psychographic analysis is defined as dividing buyers into different groups based on social class, lifestyle, and personality characteristics such as motivations, attitudes and activities (Hudson 43). We look at the types of travellers that travel to Amsterdam. In the business travel class people who are from the ages of 21-30 15% travel to Amsterdam, ages 31-40 30% travel to Amsterdam and ages 41-50 28% travel to Amsterdam due to business. In the class of leisure travel ages 21-30 30.5% travel for leisure, ages 31-40 14% travel due to leisure and ages 41-50 13% travel due to leisure. In 2011 61% of people are first time travellers and 86% of those people are repeat travellers (City of Amsterdam Research and Statistics). Therefore it can be concluded that people who are from the ages of 21-30 travel to Amsterdam because they simply want to ("Culture becoming increasingly important to visitors to Amsterdam.

3. SWOT Analysis Strengths: Living conditions: Proximity to capital district Historical architecture Large stock of repurposable buildings Landscape and scenery (rivers, canals, bike trails, parks hills) Dematerialization of downtown Physical and digital infrastructure All these things are classified as strengths because they showcase how reliable it is to live there and how Amsterdam isnt just known for things like the red light district and to know that most of the countrys strengths are because of its historic architecture and scenery. Liberal: Freedom of expression Creative support by its residents throughout centuries The points above are classified as strengths because it shows how the economy care about what the people want in asking there opinion on things like for example paintings and design throughout the country, also as you know Amsterdam is a country who supports freedom of expression no matter what you look like, religion, race, ethnicity etc. you are accepted for who you are.

Weaknesses Society: Unlivable neighborhoods (neglect, quality of life) Aged and less desirable housing Fear of change, innovation, risk aversion, cultural mindset/ values. Lack of growth (high taxes) Subservience to town development at cities expense Lack of city core

The points above are all classified as weaknesses because they prevent many travellers to come into the country. Knowing that there are such things as unlivable neighborhoods and how the government fears change tells tourists that Amsterdam will always be perceived as The Red Light District and nothing else.

Education: Bottom tier school district and performance relation to neighboring areas. This is classified as a threat because it goes to show that the governments or high authority dont care about the education that they are providing to children in their country. Where in a society today where you need an education to do everything this is a major weakness. Economy Poor internal and external perception of Amsterdam amplified by local opinion makers / media Demolition trumps development Dysfunctional economic development These are classified as weaknesses because without a strong economy there is no success. With Amsterdam having many other competitors in Europe alone seeing things like how there is a poor perception of the country is a major weakness driving tourists away from seeing things like the beautiful landscape and history and not the things like prostitution and drugs. Opportunities: International reputation Structural changes Ride the rebirth of cities trend Piggy back technology development in the world South side development and build south side as a destination Leverage the river as a destination Restore and preserve historic assets Venice of the North turning eco friendly Blending modern and historical buildings These are all classified as strengths because they are all catering to tourism. Amsterdam wants to rebuild its self and taking what is not recognized for example its amazing history and historical buildings and making them one of the main attractions and focal points of Amsterdam. These are all amazing strengths because it showcases how Amsterdam was so behind but is now taking annotative to change things. Threats: Economy: Nearby local cities are more aggressive in economic development Nearby cities already have rebuilt and modernized their city (Amsterdam is way behind) Property tax cab and consolidation- zero investment in programs and staff to learn around school district performance

Marginal housing stocks likely to convert demo without growth and investment Falls in cultural mindset These are all threats to the customers needs because if nearby cities are already more advanced in things like technology and architecture what is the point in visiting Amsterdam? These are all threats because it really shows how the economy does not take annotative in changing things and progressing as a country, meanwhile they are behind in everything possible making Amsterdam an unattractive place to visit.

The SWOT matrix Strengths: Opportunities: International reputation Structural changes Ride the rebirth of cities trend Piggy back technology development in the world South side development and build south side as a destination Leverage the river as a destination Restore and preserve historic assets Venice of the North turning eco friendly Blending modern and historical buildings

Proximity to capital district Historical architecture Large stock of repurposable buildings Landscape and scenery (rivers, canals, bike trails, parks hills) Dematerialization of downtown Physical and digital infrastructure Freedom of expression Creative support by its residents throughout centuries

Weaknesses: Unlivable neighborhoods (neglect, quality of life) Aged and less desirable housing Fear of change, innovation, risk aversion, cultural mindset/ values. Lack of growth (high taxes) Subservience to town development at cities expense

Threats:

Nearby local cities are more aggressive in economic development Nearby cities already have rebuilt and modernized their city (Amsterdam is way behind) Property tax cab and consolidationzero investment in programs and staff

Lack of city core Bottom tier school district and performance relation to neighboring areas. Poor internal and external perception of Amsterdam amplified by local opinion makers / media Demolition trumps development Dysfunctional economic development

to learn around school district performance Marginal housing stocks likely to convert demo without growth and investment Falls in cultural mindset

Marketing Goal A: Focusing on adventure travel, our goal is to successfully market our product to our specific target market from the ages of 19-32. Objective A1: To market our product to our target market age group 19-32 Marketing Goal B: To introduce a new kind of travel to Amsterdam Objective B1: To increase the revenue of Amsterdams tourism sector by 30%. Marketing Goal C: Creating jobs for locals due to the high number of travelers coming to Amsterdam. Objective C1: Due to the increasing amount of travelers, restaurants, stores, attractions etc. will be forced to hire and expand, thus creating more jobs. Primary Target Market:

Demographics Segmentation o Younger consumers preferably ages 19-32 o Adventure based travel Younger age group looking to explore Europe o Our consumer would have the time and energy to take visit this destination o Our consumers would be looking for experience o Our consumers would typically visit this destination as a group thus being eligible for a discount

Geographic Segmentation: Since 1960 Canadas population was just a little over 17 million, it is now just past 34 million and is only getting larger. With provinces expanding in population Canada is opening itself up to be a great travel market. We feel as though the population has a wide variety of the young age group ready to experience Europe, and not just the typical leisure vacations in the Caribbean but in Europe.

Psychographic Segmentation: o High school graduates/college/university educated people o Spring break/March break type trip o Able to participate in most/all activities on the trip due to young age and lots of energy o Interests in all aspects of Europe (red light district, culture, history beaches etc.) o Consumer would partake in soft and hard adventures as there age group lets them do so

o Consumer may be looking to travel before/after attending school

Benefit Segmentation: o New aspect of the world Experience o Friendship revelations o Open minded-ness o Learning about the history and development of the country. o Developing new interests, hobbies, and goals

Behavior Segmentation: o Marketing the destination to have an affordable price for our young target market o Open to trying new food o Open to partaking in Amsterdams culture

Positioning Statement: A chance for young adults to experience a side of the world they have never seen. Weather its enjoying Amsterdams crazy exotic nightlife or its enjoying some of the finer parts of Amsterdam your bound to enjoy yourself. Open your mind up to new things when visiting Amsterdam take some time out of your travel to visit all aspects of Amsterdam weather its the Red Light District or the holocaust and historic museums!

Product Differentiation: A lot of travellers look at Amsterdam the wrong way and we want to show our travellers the real beauty of Amsterdam. Amsterdam differs from other places in Europe as it has a very set in stone culture. The population, primarily being Dutch is a very welcoming kind community. We want our travellers to engage in bike tours (a very popular activity in Amsterdam) so they can view the city and see how special and unique it ismaybe even engage in some conversation with the locals at Leidseplein, one of Amsterdams most popular squares. Competitive Advantage: Amsterdam being the capital of The Netherlands is an amazing destination to travel to due to its uniqueness and ability to have a variety of activities. The Red Light District being one has always been an interest to young adults because they want to see the unknown as well as see what Amsterdam is really like. Its very subtle beautiful and a simple city in a sense and has very comfortable living styles. It has an advantage as it has a unique side to it and simple provides everything a traveller may need weather its to experience nightlife, relaxation, culture, culinary or historic sites, Amsterdam truly has it all. Tactics and Action Plans: Product Strategy: Through Awaiting Amsterdam travellers can experience a new side of the world. We strive to give our customers a trip of a life time that they will remember years down the road, a trip our

customers tell not only family, but friends, coworkers and peers about. Our strategy is to highlight Amsterdams beautiful features and to give our customers an experience they will never forget. Our brand is representing a safe once in a lifetime experience to Amsterdam, to experience the great nightlife Amsterdam has to offer but not only that, its intimate culture. o Product Features: o Nightlife/Entertainment o Holocaust/War sites (Educational) o Culinary experience o Friendly locals o Shopping o Easy navigation o Ability to experience Dutch culture o Product Benefits: o Culture/experience o Learning environment o Lots of historical sites for educational purposes o Famous attractions (once in a life time view) o New environment/atmosphere o Friendships/relationships o New mind set/aspect of life Packaging:

Our brand Awaiting Amsterdam has a wide knowledge in Amsterdams finest affordable hotels for our primary target market. Our customers will have the option of selecting whichever hotel, transportation attractions and activities they want but we strive to suggest to them which ones will satisfy them the most. Accommodation: Although hotels/accommodations in Amsterdam can be expensive there are other options for our customers, such as hostels. However our company does work its hardest to find the best deals in hotels. What Awaiting Amsterdam offers? Core: Adventure, culture, excitement, beautiful landscape. Different product levels: Tangible: Hotel accommodation, cleanliness, quality of food, exceptional service, affordable service, safe/timely transportation, language services (English offered), exceptional dinning services, Augmented: Quality staff, reputable city, accepting of tourists, locals interactions with tourists, weather, cleanliness of the city. Pricing objectives: Are high quality, low price. We offer affordable prices that will guarantee a full experience, just at a lower price. Pricing methods: Made to fit the lifestyle of our targeted customers.

The differences in our pricing: Our Companys prices are made specifically for our targeted market. We have designed our prices to work around our customers lifestyle and make trips like this possible. With out promotional options, we offer group trips. If you have groups of 30+ we have bundle deals and trips planned for groups, or clubs.

Distribution Our company Awaiting Amsterdam has chosen many different types of distribution .To help our company get more known we will need assistance from different organizations. Intermediaries that we will use are: o Travel Agents o Tour Wholesales and Operators o Tour Companys ex. Breakaway tours, TaiPan tours o Colleges, universitys and malls o Job fairs where we can advertise as well as gain employees o Travel Shows o Social Networking

We will have a website in order to educate future consumers of the trip and the details of. Because our target market is fairly young we propose that they consult with the tour reps or travel agents to book for this trip. We will be using conventions and job fairs as a distributor to show possible consumers that there is such a trip. Working with colleges and other schools will maximize our Awaiting Amsterdam tour and because that is where most our target market lies. We are going to focus more on paper advertising and sending reps to job fairs as well as schools.

Integrated Marketing Communication Campaign Plan: Campaign Strategy: The campaign strategy is to use promotional ads in newspapers and magazines that would be read and seen by our target market, and we will also promote by having a rep go from school to school advertising to students why they should come to Amsterdam. The message we are trying to convey to our target market is that Amsterdam not only is not only all about fun and party central but there are many other things they could experience. The appropriate time to advertise would be in the summer months, from May - Aug. Communication Strategy: Our communicating strategy is to set the mood for a fun and educating time. All of the advertisements will have the feel of and exciting fast pace yet relaxing time. Having our target market being so young would be easier for us to portray and give them what they want. Making emotional connections are also easy because of the location and the way we are advertising. Media Plan: Our media plan will be of word of mouth from our tour reprsentives, as well as newspaper and magazine advertisements. Having tour reps go from campus to campus is good to bring in consumers simply because word of mouth gets the message out and could clear any doubt that the

consumer might have. Magazines and newspapers that we would publish our ads in include Toronto Sun, Metro and magazines like People, Travel Weekly and more. The advertisements will be released at least a few months before the actual trip date scheduled to be around January to midApril so that the target market will have a good amount of time to plan and be prepared for the trip.

Communication Strategy and Evaluation: Campaign: Our strategy is to promote this destination as an affordable but luxurious destination. We are trying to create a vacation that is well put together at a reasonable price but still receiving quality goods, services and accommodation. The image we want to portray is an educational adventurous party vacation for our young target market, a once in a light time experience. Communication: We would like to convey an image of an adventurous experience filled vacation. We want our customers to experience a life changing fun filled vacation. So in order to obtain that image we will encourage our travellers to engage in conversation with one another and develop personal intimate friendships. Media Plan: Our way of getting our product out there is to introduce is to all social media, and media in general. We will put our product on all social media websites as young adults are known for engaging in those sites, we will make sure to have not only adds on these pages but banners so we can have as much exposure as possible. We will also advertise our product in magazines such as People, Star, Cosmo and Travel Weekly. These give a wide variety for our target market to view our ads. And last but not least we will advertise our product via radio on stations such as z103.5, 92.5 and b101. We chose these radio stations because our target market tends to listen to these stations quite often.

Campaign Evaluation: When partaking in the campaign we wanted to ensure our customers took reaction to our product in a positive way. We wanted to ensure we had the reaction we anticipated for a successful campaign. In order to do we will evaluate peoples reactions, and the amount of sales and revenue we receive etc. Citations: . N.p.. Web. 9 Apr 2013. <http://prezi.com/q-uuwopwyq7t/amsterdam-visitors-profile/>.
. City of Amsterdam Research and Statistics. N.p.. Web. 9 Apr 2013. <http://www.os.amsterdam.nl/pdf/2011_factsheets

Culture becoming increasingly important to visitors to Amsterdam. N.p., 2 jul 2012. Web. 9 Apr 2013. <http://www.iamsterdam.com/amsterdam visitor survey 2012>.

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