Table of Contents
2.1.Current market situation6
2.4.Industry and Competitor Analysis7
2.6.1.Strengths and Weakness8
2.6.2.Opportunities and Threats8
6.2.Cost of sales13
6.5.Profit after marketing13
7.1.Performance requirement to achieve objective14
7.1.2.Sales Volume Controls14
7.1.3.Marketing cost controls14
It is evident from HWT’s vision and corporate objectives that they are striving to dominate the travel Industry. HWT is Australia’s leading retail travel franchise group with financial strength and business transparency unparalleled in the franchise sector. HWT extensive franchising experience, technological leadership, travel expertise and purchasing power enable them to deliver significant market advantage to their franchise network. Growing their franchise system is integral to their strategic vision. Importantly, a HWT franchise permits one to be in business by themselves but having a strong support and leadership of HWT expertise. A HWT franchise offers features and benefits that are designed to help secure financial success in the retail travel industry. In order to meet these objectives they are pursuing a Market-Development strategy according to Ansoff’s product grid. They are using current product in new markets, for e.g in 1997 they entered the Southern African market to pursue their development strategy using existing products. They achieved market penetration into SA by offering HWT franchises. HWT covers 2 market segments which are achieved by forming joint ventures with travel groups like Rennies Travel as it is very well positioned as a corporate/government supplier while HWT focus on leisure. A 50% stake in Harvey holidays, a joint venture with Quantas Airways also indicates a tendency to diversify their business. Joint ventures with travel Insurance companies also enable HWT to provide a quality service to its customers all under the HWT umbrella.
Although the HWT as a group are not in a financial crisis, the travel industry as a whole are experiencing rapid environmental changes, such as supplier commissions being cut and the rapid advancement of e-commerce changing the way people transact and research travel destinations.
This marketing plan will address the above issues to ensure that HWT will survive this changing environment in the long term and most importantly maximise the value of the HWT group and franchise owners.
Current market situation
* Size: Largest agency franchise business in the Southern hemisphere comprising of 534 retail outlets across AUS, NZ, UK, SA, Egypt and Timor. * Growth: Significant growth has been experienced in the global arena by recently expanding operations in the UK and Southern African market through franchising its name and expertise. This growth path will eventually put HWT in every country. * Trends: Trends in the travel industry have revolutionilised since the advent of e-commerce. This affects how HWT will in future interact with its customers as the traditional approach of customer visiting the HWT outlets will start to decline as more people get access to the internet. Move to service fees instead of supplier commissions have forced the travel industry to restructure pricing. * Shares: Rennies and Harvey travel.