GO-GO TRAVEL

Backpacking Travel Agency

Marketing Plan
Tran Minh Lai, ID 1701009
Nguyen Van Chieu, ID 1701007
Pham Tran Diem Uyen, ID 1701002
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Contents

I. Introduction 3

II. Marketing analysis 3

1. Customer behavior 3

2. Competitors analysis 4

III. Marketing strategy 6

1. Market segmentation 6

2. Market targeting 7

3. Differentiation and Positioning 8

IV. Marketing mix 9

1. Product 9

2. Pricing strategy 10

3. Distribution strategy 12

4. Marketing communication strategy 13

V. Conclusion 15
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I. Introduction

Vietnam is a developing country that has a high working-responsibility burden on young

people’s shoulders. Therefore, the holidays became more and more precious when people can

take vacation trips in beautiful places to relieve stress and restore energy. However, this requires

them to spend a lot of money. Therefore, the backpacking tourism model has been born and

helped to solve the costing problem that the traditional luxurious tourism model has been facing

for so long.

This type of tourism is aimed at young people with low incomes but wants to travel to

new lands. This form of tourism is popular in the young Vietnamese community. It can be said

that Vietnam is a potential country to develop a backpacking tourism trend.

According to the survey, we found that Vietnamese people have been in a very high

demand for backpacking tourism. However, there is no company or a business that has officially

stood out to systematize this type of tourism. (Most people who take part in backpacking trips

are self-sufficient individuals or groups.) Recognizing the great potential and opportunities from

the Vietnamese tourism market and our passion for traveling and willing to bring new

experiences to the tourism community, we came up with the idea of forming a company "Go-Go

travel" to systematize the form of backpacking for Vietnamese people.

II. Marketing analysis

1. Customer behavior
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The form of the company is intermediary connecting guides operating in the field of

tourism and tourists who want to participate in self-sufficient travel.

The customers that our company wants to focus on are:

 Young people like to experience travel;

 Workers, officers want to enjoy new experiences;

 Groups of close friends who want to travel abroad but do not like the constraints of the

traditional tourism style.

Visitors will be able to actively arrange the time, choose locations including restaurants,

and hotels by following the advice of the guides for backpacking and reach the consensus

between the two sides.

This group of customers is people who like to visit, learn, explore new lands to

experience the truest life. They are passionate about taking trips abroad to visit without guides

from big travel companies. A feature of this type of tourism is that the price is very affordable

for young people. Especially when participating in the tour with a guide who is both dynamic,

enthusiastic and has extensive knowledge in the fields of culture, society, geography, history and

economy, etc.

2. Competitors analysis

Because it is a new market segment, there are not many competitors participating in this

kind of tourism offerings. According to the current survey, there are two companies that are

likely to become our competitors are “Mợ Jen" and "Bụi Tour":
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The advantage of these two companies is that they appear first in the Vietnamese market,

so they have almost conquered the most part of market shares. However, that does not mean GO-

GO Travel cannot compete with them. There are 4 aspects for GO-GO Travel to create

competitive advantages in the Vietnamese tourism industry:

 Communication competition strategy;

 Service competition strategy;

 Pricing strategy;

 Creativity.

Meeting these 4 aspects will help GO-GO Travel build up the close relationship with

loyal customers to ensure revenues and increase profits. And all four aspects mentioned above

give us a chance to deliver superior value.

First of all, on the pricing strategy, we have three trips across the country and the prices

are cheaper than competitors’ prices.

Communication strategy: YouTube and Facebook are the pivotal means for the

company, which are always updated and shared about the trip experiences.

Service competition strategy: The company and the tour guide always put the safety and

satisfaction of customers first. To do that, always maintaining the number of five-to-seven

people is best. Moreover, after each trip, the company continues its "post-purchasing service" to

provide opportunities for customers to take part in other trips or introduce the company to their

friends.
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The creativity is made up of tourist guides such as talking style, jokes, but still

transmitting enough information for visiting customers.

III. Marketing strategy

1. Market segmentation

a. Identifying customer market segmentation.

There are many ways to implement market segmentation. However, GO-GO company

mainly implements the customer-oriented market segmentation according to the following

criteria:

 Reasonable price.

 Creating an interactive environment among participating customers

 Participating in the real experience instead of just watching.

 Providing an interesting knowledge base on each trip.

According to the criteria above, segmentation in different approaches will help us

identify the market we can serve well.

Geographic segmentation

Initially, customers will mainly be Vietnamese people living in Ho Chi Minh City. Ho

Chi Minh City is a high population-density city with a high proportion of young people having a

strong passion for tourism. In addition, people living in Ho Chi Minh City have higher incomes

than the standard income level in Vietnam. Moreover, living in a narrow city also promotes a

culture of tourism to experience life.

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Demographic segmentation.

The target group of customers is from 18 to 40 years old. The company will organize

tours in groups of 5 to 7 without significantly differing in ages to help them easily communicate,

and make friends with each other, making the journey more interesting.

Psychographic and behavioral segmentation

The company focuses on young people whose culture is traveling to experience instead of

the purpose of relaxation. The customer group will be extremely dynamic, with interests to

explore and learn. GO-GO enables them to access experience tourism with the lowest cost.

Through the investigation, this segment is highly effective, especially for accessible and

differentiable criteria. The company is capable of serving this segment and makes a clear

difference from competitors.

b. Evaluating the usefulness of this segment.

After performing the segmentation, the segmentation the company has selected above the

effectiveness of a market segment will be assessed through the following criteria: Measurable,

accessible, substantial, differentiable, actionable.

2. Market targeting

Selecting target market segments.

In the following market approaches, our company chooses concentrated marketing.

Instead of going after a small share of a large market, our company goes after a large share of

one. The market we choose to hold is the backpacking tourism market. Through concentrated
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marketing, the company achieves a strong market position because of its greater knowledge of

consumer needs in the niches it serves and the special reputation it acquires. Niching lets us win

in a smaller market with less competition. In addition, with the development of the Internet,

developing niche markets is becoming easier.

3. Differentiation and Positioning

a. Identifying Possible Value Differences and Competitive Advantages

Beyond deciding which segment of the market is targeted, the company also decides on a

value proposition. A product position is a way a product is defined by customers on important

attributes. GO-GO company's service will have the following differentiation:

 Services differentiation: The company will focus on providing the most valuable

experience for participants. Each trip will give participants the opportunity to live a

different life, become new people in tourist destinations. They can forget about the

pressures of life and gain new experiences.

 People differentiation: The employees of the company will be properly trained in skills,

knowledge and experience. The employees of GO-GO will be the most active people

which is the key to improving customer experience and bringing success to the company.

 Image differentiation: The slogan "Travel experience with the lowest price" will be

committed by the company. It is the company's core value to the customer.

b. Choosing the right competitive advantages.

The following differentiation attributes are always considered when choosing the

competitive advantage: Important, distinctive, superior, communicable, preemptive, affordable

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and profitable. The GO-GO company chooses communicable and affordable advantages as the

company's unique selling proposition. Affordable advantage means that buyers can afford to pay

for the difference. Communicable advantage means the communicable and visible ability to

buyers. GO-GO company always wants to position itself as a dynamic and enthusiastic company

in the tourism industry.

c. Selecting an overall positioning strategy.

GO-GO can attack a competitor's value proposition by positioning our brand as offering

for the lower price. Although the travel experiences, we provide are somewhat different,

innovative and more interesting, customers need to pay less.

IV. Marketing mix

1. Product

The target market segment is young people who want to experience new things. GO-GO

always aims to the interests of customers and minimize costs at the most appropriate level.

Travel products include 3 levels, and GO-GO will apply them to develop the services

- Core product that meets the most basic needs of customers and answers to the

question "why do customers buy your product?”. GO-GO will fulfill its

intermediary role by providing services and essential items during the journey,

such as accommodation, accommodation, transportation, travel booking services,

etc.

- Facilitating products are elements of goods and services to bring the benefits of a

core product to customers such as design, quality, design, etc. GO-GO will use
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websites and social networking sites to introduce the company in a lively and

attractive way. Besides, visa procedures, air tickets, bus tickets will be maximum

supported by GO-GO.

- Augmented products, which are value-added products increase the value of

products and make a difference to competitors. As the differentiation mentioned

above, GO-GO will focus on services, people, and image which providing

features, services, benefits that exceed the normal expectations of the customers,

making the service different and unique.

2. Pricing strategy

In business in general and marketing-mix in particular, price is always an important

factor because it is the one that generates revenue for the company. That is not to mention, price

is also a factor considered by customers before making a purchase decision. Business is always

looking for ways to bring customers the best products and services with good value for money,

so that customers will feel satisfied with the money spent. Besides, GO-GO also builds a way to

determine the price of the tourism program, create transparency and increase customer’s trust.

The basis for GO-GO to build is that they can price products based on the following three

factors: cost-based pricing, customer-based pricing, competitor-based pricing.

According to Philip Kotler, to set the price, there are six steps:

 Select the price objective

 Determine demand

 Estimate costs

 Analyze competitor price mix

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 Select pricing method

 Select final price

From these steps, we have given prices for tours that depart from Ho Chi Minh City -

Vietnam to famous destinations in Southeast Asia, such as Bangkok - Thailand, Phnom Penh -

Cambodia, and Bali - Indonesia. The table below shows the prices between GO-GO and two

competitors.

GO-GO Mợ Jen Bụi Tour

Thailand 5.000.000 VND 7.000.000 VND 5.690.000

Phnom Penh 1.390.000 VND X X

Bali 11.290.000 VND 13.000.000 11.490.000

In today's highly competitive market, customers are strongly influenced by pricing and

associated services. So each stage the company needs to have a suitable price and strategy:

Peak season

This is the time to make money for businesses, the need to travel for high customers and

the highest priced tours and services of the year.

Low season
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This is the time when the tour becomes extremely difficult for businesses, the company

during this period will often need to offer great programs and incentives if customers travel

during this time.

Shoulder season

The interval between seasons in low season and peak season which is the best time to

attract customers, it's time for avid travelers to learn about next season travel, attractive travel

destinations, and a cost assessment. Tour and media activities will be promoted during this

period.

3. Distribution strategy

In GO-GO's marketing strategy, the distribution strategy part will be a little different

because the characteristics of the company's products are services, not tangible products, so GO-

GO's distribution channel would be online, on the Fanpage and mainly the website in the

beginning. After that, when the company develops, it will be as follows:

GO-GO

Headquarters Branch Representative Service registration Online

office room
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GO-GO will choose an extensive distribution strategy. According to each stage of

development, GO-GO will have plans to expand branches, representative offices, etc. Besides,

GO-GO will open more websites to sell tours. With such wide coverage, GO-GO can provide

information on trips and tours to all customers in need.

4. Marketing communication strategy

When entering the market for the first time, GO-GO will implement push and pull

strategies to create customers. Then, going through marketing intermediaries, GO-GO will try to

promote the tours to end consumers. GO-GO will use tools such as:

Advertising

Today, there are many social networking sites and they are used as the most effective

means of communication. GO-GO will create Fanpage, groups like Facebook, Zalo, Instagram,

etc. and run ads, moreover, create travel communities. In addition, the company will set up a

youtube channel to post videos about the trips, review experiences to attract more customers.

Sales promotion

GO-GO's programs will target price strategies at different times of the year, such as

holidays, New Year holidays, summer holidays, festivals. Ticket prices these days are not only

different from normal days but also provide additional services, which makes a difference for the

company and competes with other companies.

In addition to discount tickets, GO-GO also applies other incentive programs for member

customers to retain old customers and attract new customers.

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Events and experiences

GO-GO will organize experience contests such as hiking, jogging, etc. In addition, the

company will sponsor events such as sports, entertainment, non-profits, or community events

with the intention to strengthen the brand in the minds of customers and create long-term

relationships with them.

Public relations and publicity

In the long run, the company will have a charitable donation plan to help children with

disabilities. In addition, the company will publish publications, it will be the journey of aspiring

young people who want to explore the world with interesting stories.

Direct marketing

For technological purposes, GO-GO uses email, mobile phones, websites to communicate

directly with potential customers without involving any third party in between. Moreover,

catalogs are also effective ways to approach prospects with vivid images, creating sympathy and

closeness for viewers.

Word-of-mouth marketing

This is one of the most widely practiced communication methods in which customers

share their experiences with their friends about the goods and services they have recently

purchased. With the company's core values, GO-GO always focuses on customer experience and

listens to what customers want. From having good customer service, customers will help the

company advertise for free and build a better and better brand image.
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V. Conclusion

Start from market analysis, then develop marketing strategies in many ways, which

support the company to learn about the market, competitors, develop and bring the brand image

to customers. In the circumstances that Vietnam's tourism market is developing so strongly,

many tourism models are implemented, it is certain that the level of competition will be more

and more fierce. Because of this, having a good marketing analysis, marketing strategy with

marketing mix will help business a lot.