Table of ContentsSegmentation and Positioning StrategyPricing StrategyPrice Skimming StrategyCompetitive StrategyPackage StrategyDistribution StrategyPromotions StrategyAdvertising StrategyRecommendations and TimelineSWOT Analysis Force Flight Center Travel Group (FCTG) is considered one of the best travel service providers for travelers around the world. We are expanding our market in Nepal, which is one of the major travel destinations for people around the world. FCTG therefore has many advantages and strengths that will be beneficial in penetrating the new market. The strengths of Flight Center can be listed as follows: Can merge with or acquire existing travel agents and improve business operations by streamlining processes and services through the use of technology and one hand -efficient work. The use of technology and systems in travel operations will bring consistency, quality and reliability to services and products, enabling FCTC to achieve more in less time. Highly skilled labor such as tour guides and expedition guides are available in Nepal at low cost. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Expanding operations in Nepal can have a good return on investment in the long run as travel and tourism has always been a profitable business in Nepal. Tourism is one of the largest industries in Nepal, so growth in revenue and returns can be expected in the long term. Some of the factors that FCTG should consider and improve while establishing its operations in Nepal are given below: Research and development of products and services. are difficult to achieve as fewer facts and figures on travel and tourism are available in Nepal. Lack of data and facts can force a product or service to be tested every time it goes to market, which can increase the overall cost. The organizational system and technology used by FCTG may be new to the people there, so it may be difficult to transition from current working conditions to new ones. Additional investments in technology and advanced systems are required to streamline operations and work processes as advanced systems and technologies are less used in the travel and tourism sector. ROI and profitability are difficult to achieve in the short term as we need to invest more in resources, technology and infrastructure while establishing the business in Nepal. The growth rate of international tourists with higher disposable incomes is high, so FCTG can serve these types of customers by selling travel packages to increase market share and customers. The growth in the number of technology users appears at a rapid pace, so the number of people using technology is increasing. So, as a travel agency that focuses on technology to integrate business processes and operations, we can get the most out of it compared to our competitors. Marketing travel products and services is very simple, so growth in terms of sales and market positioning can be easily achieved if we focus on developing unique and clearly defined products and services. The change in trends of potential domestic customers also brings the opportunity to enter anew market, which provides FCTG with the opportunity to diversify product categories with new market segments and products. The year 2020 will be considered as the Year of Tourism in Nepal and Nepal is expected to attract around 2 million foreign tourists (Nepali Times, 2017). A travel agency like FCTG can use this opportunity to enter a new emerging market and minimize risks and uncertainties as the flow of customers can be observed during these times. FCTG's business model or workflow can be easily imitated by other competitors as the travel industry in Nepal is emerging at a rapid pace. Other competitors may offer poor quality travel packages at a lower rate than FCTG, which may pose a serious threat as FCTG will have a huge investment in the industry compared to other competitors. Instability of political rules and regulations could also pose a threat to certain products or services. FCTG could be exposed to currency fluctuations as Nepal's currency index is relatively weak. The operational cost also tends to be high for some time after creation, so the ROI may not be achieved in a short period of time. Nepal is a country prone to natural calamities and disasters, hence it has always posed a major environmental threat to the travel and tourism industry. As FCTG enters an emerging market, we need to focus on certain aspects of the product so that we can be able to connect the product to our potential customers. Some of the strategies that FCTG can adopt for the products to reach potential customers are explained below: Personalized Customer Engagement A travel product should have personalized customer engagement functionality. This helps strengthen customer relationships by providing better engagement with customers. As we engage with customers and provide them with the ability to personalize their vacations, we can also learn more about customer behaviors and trends, which will be beneficial for future referrals to create product categories and to segment new target markets. While providing personalized products to customers, we also need to ensure that we connect our customers through the right channels and environment. As we are a travel agency, our clients are not geographically determined and we must be able to serve clients residing in other countries of Nepal. Thus, a multi-channel approach to improve user experience is required so that they can book or purchase travel packages, tickets regardless of their place of origin or the device they are using through the use of advanced systems and technologies. Omni-Channel helps customers improve their experience and, as a travel agency, it is also necessary to find the most suitable approach for the traveler. Customer-specific product creation There is a need to change the supplier-driven approach to customer-based product creation in order to penetrate the market in Nepal. “The difference really is that a retailer controls their inventory and knows their customers intimately whereas an agent represents wholesalers and airlines” (Stanley, Managing Director - FCTG). FCTG therefore needs to establish itself as a travel outlet selling travel products and services to understand the needs and demands of customers. This will give us a competitive advantage over other competitors because they work as an agent and we can focus on thelaunching unique products and services. Segmentation and Positioning Strategy The travel and tourism industry has a very large and diverse market, so it is necessary to segment the market. understand consumer trends and behaviors. Market segmentation for FCTG can be done by understanding demographics, behavioral patterns and trends. Market segments for FCTG may be created by one or a combination of the following: Demographics Our market segment will include people aged 24 to 65, as this group of people has significant disposable income. People between the ages of 24 and 35 may be considered for adventure and expedition trips, as these people are young and ready for adventure, while people between the ages of 35 and 60 can be considered for trips excursion and luxury travel. Our market segment will not be limited by geography because as a travel agency we have a very diverse market. So, our main target consumers will be everyone who wants to travel to Nepal, regardless of their country of origin. They can be international and domestic tourists. Behavioral model FCTG should focus on market segments where the consumer is looking for leisure trips, adventure and expedition trips, wildlife excursions. We can offer a wide range of products in these categories with different price ranges. Thus, we can gain the most by focusing on the market where consumers are eager to explore unique destinations with adventure and expedition. Status Since travel and vacations are fun activities, we should focus on consumers who have higher disposable income. Consumers who are ready to travel and have significant disposable income may be our target audience. People who are willing to spend more on vacations with more personalized packages will be our target customers. Pricing Strategy Travel and tourism products are unique and rarely identical to each other because vacations and packages can be customized according to the consumer's wishes. So basically the FCTG pricing strategy will be based on the consumers we have targeted and the marketing strategy we have defined. For example: a customer looking for a luxury trip will be charged a high price for a product compared to a customer looking for a backpacking trip. Some of the pricing strategies that FCTG can adopt are explained below: Price Skimming Strategy Markup pricing strategy identifies all costs associated with the trip, such as transportation, hotel costs, resources used, time spent, etc. This type of pricing strategy ensures that FCTG can make a profit on every sale of travel products to its customers. Markdown Pricing Strategy / Competitive Strategy Nepal travel is a seasonal business where there are peak times for travelers visiting Nepal. Thus, during the off-seasons, FCTG must resort to a markdown pricing strategy in order to remain competitive. FCTG can offer holiday deals and packages to domestic tourists at low prices in situations where the off-season cost generally remains low because it is not a favorable time for travelers. Package Strategy Consumers will therefore be able to customize their travel vacations, the total cost of a complete package including airfare, hotel, tours and other activities can be fixed. This pricing strategy also helps meet the needs of niche markets. Byexample: tourists interested in rafting, bungee jumping, canyoning, zip lining can be offered packages. This type of pricing strategy is also suitable for domestic tourists. Value-Added Pricing Strategy Value-added pricing can provide a competitive advantage by improving the perceived value of a travel product. This type of pricing strategy is suitable for luxury travel as customers tend to vacation or travel exquisitely.Distribution StrategyThe distribution strategy of travel and tourism products offered by FCTG in Nepal will be mainly through through intensive distribution, a selective distribution strategy and direct sales. The type of product we sell is intangible, so the best means of distribution will be the Internet. The strategy that can be used by FCTG is explained below: Direct distribution is the type of distribution strategy where the sales of the product are directly made to the customers. FCTG may sell travel products and services directly to customers through its retail locations, online applications, websites, e-commerce or computerized reservation systems. This distribution strategy will help us take full control of the market since we interact directly with customers. Since FCTG is a company strongly focused on the use of advanced technologies and systems, we can benefit from direct sales via the Internet. Frost (2004) stated that the evolution of technology has changed the way customers and travel agencies interact and trade. Additionally, Frost (2004) also identified telephone communications, use of credit cards, call centers and customer loyalty programs as the four other direct selling methods that the retail industry tourism can use to facilitate direct selling and interact with the customer. Intensive distribution is a distribution strategy in which all possible sources of distribution channels are used for the distribution of the product. Use of all forms of distribution, such as employment of local travel agents in Nepal, hotels, tourist information centers, e-commerce, websites and social media may be used for product distribution. Intensive distribution strategies can be more beneficial in the off-season when business is low and we can offer packages and holidays to domestic customers at low prices. Selective Distribution Nepal is a small country geographically, so we can only set up a small number of outlets in selected areas and towns to distribute the product. Promotion StrategyWith the emerging use of technology in the tourism industry, it is easier to share product information. and services. Some of the means of promotion that FCTG can use in Nepal are explained below: Public Relations Strategy Public relations is the most important element of tourism marketing as it is defined as “promoting better understanding between operators and their audiences " (Roberts, 1993). ). The tourism industry is competitive and therefore it is necessary to maintain public relations with consumers so that they become loyal customers. Public relations can be built through direct sales, the Internet and social networks. Awareness of new opportunities within tourism distribution channels is essential for FCTG to build customer PR and remain competitive. Advertising strategyAwareness of.