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[pic] All Italia Adventure Travel Marketing Plan Presented by December 2nd, 2008 Table of Contents Mission Statement3 Executive Summary3 Introduction4 Situation Analysis4 Market Planning6 • Market Strategy7 • Market Objectives7 • Financial Objectives8 • Target Markets8 • Description of Product9 • Service Offering9 • Strategy10 • Marketing Mix11 1. Product11 2. Place12 3. Price12 4. Promotion12 • Market Research13 • SWOTT Analysis13 Implementation and Control of the Marketing Plan14 Summary15 Financial Analysis16 • Break-even Analysis17 • Marketing and Sales Budget Forecast18 References19 All Italia Adventure Travel Marketing Plan

Mission Statement All Italia Adventure Travel (AIAT) is a travel agency that specializes in Italian adventure travel. We provide consulting and custom travel arrangements and packages. AIAT’s mission is to become the foremost provider of adventure travel to people looking outside of the norm for a more exotic adventure. AIAT’s employees and owner are outdoor adventure and travel enthusiasts, as well as seasoned travel-industry professionals. AIAT seeks to connect adventure travel newcomers and veterans with service providers, adventure activities, and accommodations that fit the client’s desires, budget, and skill level. Executive Summary

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All Italia Adventure Travel (AIAT) will begin operations in March, 2009 and provide adventure, sport, culinary, wedding, vineyard/travel packages to people around the world looking for adventure in Italy. The founders and employees of AIAT are experienced travel-industry professionals and passionate about the activities AIAT will promote and offer. An opportunity for AIAT’s success exists because the international tourism and travel industry is growing 4% and adventure travel 10% annually. Further, the adventure travel market is growing at least 12% annually and almost no all-exclusive providers who specialize solely in custom Italian travel.

AIAT is poised to take advantage of this growth and specialized services with an experienced staff, easy to navigate website, and effective management and marketing. These health-conscious adventurous individuals, couples, and groups interested in popular adventures such as skiing, kayaking, trekking, cooking vineyard tours, Etruscan sites etc. , are AIAT’s primary customers. AIAT’s target market is an exploitable niche and AIAT will provide a specialized and custom service. Prices will be competitive with the existing market.

The estimated sales for the company for the first year of operations are $534,607, increasing 10% annually for the next two years. Introduction The travel industry is thriving in today’s on-line retail market. Opening a new and exciting adventure travel agency is not new but our concept is. Italy is a top resort destination and has millions of visitors per year. There is not a single web site devoted to Italian adventure travel from experts that have lived there and are natives to the land. This is a unique concept in which we are able to bring our clients the best prices and adventures customized to their specific needs and requirements.

Situational Analysis According to the Department of Commerce, the U. S. travel and tourism industry is the nation’s third largest retail industry in 2001 now travel remains the largest online retail category, growing from $63 billion in 2005 to $119 billion in 2010. Revenues from travel have increased approximately 100% in the last decade with U. S. travel agencies producing over $100 billion in revenues each year. Adventure travel, a segment of the travel and tourism industry, is growing at least 10% per year. More than 50% of the U. S. dult traveling population, or 147 million people, have taken an adventure trip in their lifetime, 98 million in the past five years. Thirty-one million adults have engaged in hard adventure activities like whitewater rafting, scuba diving, and mountain biking. An additional 25 million engaged in both a hard- and soft-adventure activity. Activities most commonly participated in during adventure vacations: camping (85%), hiking (74%), skiing (51%), snorkeling or scuba diving (30%), sailing (26%), kayaking or whitewater rafting (24%), and biking trips (24%).

Customers tend to be young and affluent, ages 18-34, and one fourth are from households with annual incomes of $75,000 or more. In addition, statistics show that 8,000 U. S. companies offered adventure packages that generated $7 billion. There was a 66% increase in executive participation in adventure travel in the last ten years. Planning an Italian adventure trip requires in depth knowledge of the travel industry and specific adventure sport destinations, as well as adventure travel activities. Adventure travel customers are a specialty group that continues to grow.

These are primarily young professionals who often lack the time and experience necessary to effectively plan an adventure trip on their own. AIAT will utilize its ability to meet and out perform the demands of this market and fill this need. [pic] Market Planning The travel and tourism market is separated into two main categories, business and leisure travel. Each contributes about 45% to total revenues. The remainders of revenues are generated from combined business/leisure trips. International travel accounts for approximately 40% of industry revenues.

Business travel can be divided into two categories, the medium to large corporate account, and the small independent businessman. Leisure travelers are classified according to the types of trips they take, income, or age. The four primary leisure travel groups are: 1. Adventure, Special Interest, R&R, Honeymoons & Sightseeing Trips. 2. High-Income Travelers. 3. Budget-Conscious Travelers. 4. Families, Students & Seniors. Adventure travel generates approximately $15 billion of the approximately $100 billion-dollar annual industry revenues. AIAT estimates that it will capture about 8% of this market. Market Strategy

AIAT believes that the goal of business is to create and keep customers. Its marketing strategy will reflect this goal as it builds its reputation around the world. Though AIAT operates in the travel industry, it provides much more than travels. AIAT provides adventure and freedom. Many of AIAT’s customers spend 50 weeks of the year in an office. AIAT offers people the ability to get away and remember how much they love the challenge and excitement of an athletic endeavor. AIAT will promote the benefits of adventure travel. These benefits include better health, excitement, personal growth, ear-to-ear grins, and a whole lot of fun.

AIAT will also promote the benefits of its services. These benefits include saving time and money, and confidence in the vacation’s success. Market Objectives • Achieve an annual growth rate of at least 10%. • Promote Italian adventure activities through strategic alliances with health clubs, local athletic organizations, and retailers. • Become the market leader of adventure travel in the area of international adventure travel Financial Objectives • Generate sales of approximately $550,000 in year one and increase sales 20% annually. • Capture and maintain a gross margin of 18-20%. Achieve a positive net worth by year two. Target Market AIAT will target the following groups: • Couples and individual adventure travelers: This is the customer group that meets the demographic profile for adventure travelers — ages 25-35, married, with household income greater than $50,000. • Group adventure travelers: These are groups that belong to local athletic organizations, such as cycling or kayaking clubs. • Corporate adventure travelers: ATI will target businesses in an attempt to secure corporate accounts. Adventure travelers are slightly more likely to be men age 18-34.

However an increasing number of adventure travelers are women (some statistics suggest that women comprise 49% of the adventure market). Men on average spend more than women on their adventure travels. AIAT’s primary customers are married couples, ages 25-35, with children and household incomes over $50,000. Italy’s natural beauty, abundance of outdoor activities and mild climate attracts many fitness oriented individuals AIAT will focus on the sale and promotion of adventure travel primarily to individuals, but also to corporate clients around the world looking for a unique travel adventure.

Description of Product Italian adventure travel activities are a specialized product, and first-hand knowledge of these activities is necessary in order to effectively promote and sell them. Many potential customers are unsure of the location they wish to reach. Part of the value associated with travel agencies is the knowledge they possess about destinations. Customers look to the agency to provide them with sound advice for a competitive price. AIAT is confident in its ability to do so. AIAT can save the customer time and money, and help to ensure that they are satisfied with their vacation.

Service Offering AIAT is a full service agency and sells standard travel agency goods and services, including airfare and travel packages. Additional services include assistance with passports, providing access to top-of-the-line equipment and supplies, and a superior offering that includes access to better than average terrain and activities, accommodations, and entertainment. The value added of AIAT’s offering is its knowledge and expertise, competitive rates, and specialty focus on adventure travel, which translate into increased satisfaction for the customer.

Strategy STRATEGY 1: Develop brand recognition through the use of effective advertising, marketing communications and promotion. Tactic: Develop a marketing mix designed to target adventure clientele. • Program: Print and electronic advertising campaign, using specialty publications and local radio as primary media. • Program: Use strategic alliances to conduct promotions and giveaways. Tactic: Expand brand recognition to an international market through increased industry participation and WWW presence. Program: Utilize the networking benefits of industry associations, trade shows, and publications. • Program: Develop and promote AIAT’s website. The availability of information and the ability to schedule and purchase online will be beneficial to the customer and AIAT. STRATEGY 2: Increase revenues and reduce costs by establishing repeat and corporate customers. Tactic: Customer satisfaction program. • Program: Focus AIAT’s efforts on customization of adventure travel and utilization of its core competencies. Program: Post purchase and post trip follow-up. Research indicates that the communication between the firm and the customer after the sale positively influences repeat purchase. Tactic: Corporate account acquisition. • Program: The corporate sales program will depend upon specialized literature and personal promotion. Corporate accounts generate recurring revenue and will help diversify AIAT’s sources of income. • Program: Corporate giveaway promotion. Trips will be awarded as prizes and will be promoted via local radio. Marketing Mix

AIAT will employ a wide range of advertising communications and promotion to achieve its marketing goals. Research on the demographics of AIAT’s target market suggests that the most effective communications will come through advertising in several specialty publications and via local radio. In addition, direct interaction or promotion at health clubs, shopping malls, sporting events, etc. will be part of AIAT’s marketing mix. Product AIAT will sell standard travel agency goods and services including airfare and travel packages.

Additional services will include assistance with passports, providing access to top-of-the-line equipment and supplies, and a superior offering that includes access to better than average terrain and activities, accommodations, and entertainment. Place The value added of AIAT’s offering is its knowledge and expertise, competitive rates, and specialty focus on adventure travel, which will translate into increased assurance and satisfaction for the customer. AIAT’s decision to focus on adventure travel was made because economic indicators suggest that an increased demand for adventure travel services.

It is hoped that this enthusiasm will be communicated to the customer, and AIAT’s experience will translate into satisfaction and repeat business. Price Much of AIAT’s pricing is determined by market standards. AIAT will attempt to maintain margins of 10% on all airline travel. Margins on all other products and services vary depending upon the provider but are expected to average 20%. AIAT will make every effort to maintain a competitive pricing policy. However, as AIAT builds its reputation as the premier provider of adventure travel, it expects to earn the ability to charge a premium for its services.

Promotion During AIAT’s first year of operation, it will hold a grand opening and will organize and sponsor several athletic events. Events will include, among others, an off-road triathlon, 10k race and 5k fun run, and a mountain-bike race. AIAT will provide various travel packages and other items as prizes. All AIAT employees belong to local athletic clubs and will, through interaction with other members, promote AIAT ‘s services. Negotiations with area health clubs will begin and additional promotion will likely occur through these strategic alliances.

Specialty rather than large national publications will serve as media vehicles for AIAT advertising. Local radio stations will also be used. Personal selling will also occur, though phone solicitation will be limited. Market Research Ongoing industry analysis is conducted by several organizations, including the U. S. Department of Commerce, and is available for sale. Research on the travel and tourism industry will be purchased as necessary. Demographics and spending patterns of adventure travelers have been secured and used to formulate communications strategy.

AIAT will conduct customer surveys when a specific research problem is identified. AIAT subscribes to several industry publications and will attend trade shows to stay abreast of relevant issues. SWOTT Analysis Mission Statement “To become the foremost provider of adventure travel to people looking outside of the norm for a more exotic adventure”. The love of the environment is one of AIAT’s greatest strengths and the reason adding an adventure travel services to the company’s portfolio will be successful. The following SWOTT Analysis details reasons for continued success. |Location of Factor |TYPE OF FACTOR | |Favorable |Unfavorable | |Internal |Strengths |Weaknesses | | |Totally Committed Employees |Expensive, High-End Merchandise and Travel Costs | | |Niche Market |Limited Customer Base | | |Quality Products |Limited Stores | | |Environmentally Conscious Business | | | |Philosophy | | |External |Opportunities |Threats | | |Youth |Environmental Destruction | | |Alternative Sports Growth |Competition | | |Marketing Opportunities | | |Trends | |Participation in Extreme Sports | |Environmentally Conscious Lifestyles Increasing | |Reality Show Popularity | Implementation and Control of the Marketing Plan AIAT ‘s marketing efforts will be reviewed quarterly.

Variance between sales goals for the first year of operations and revenues will be AIAT ‘s only real source of comparison. AIAT will seek customer feedback on marketing efforts and may conduct surveys or focus groups to test ad effectiveness. Implementation Milestones • AIAT ‘s opening event will take place in the first quarter. This will be a combined effort with local rock gyms, which are AIAT ‘s strategic alliances. The events will be hosted by a local radio stations and will include a prize giveaway of an adventure travel package. • AIAT will begin its corporate account marketing in the first quarter and hopes to secure at least one corporate account during that time. AIAT ‘s website should be operational by the middle of the second quarter of operation. The website will be capable of online transactions with secure site protections. AIAT banners will be placed at several World Wide Web locations. • Tracking of ad exposure will begin in the first month of operation. AIAT has a designated 800 number that is only used in advertising. Summary To effectively evaluate, monitor, and control the effectiveness of the Marketing Plan, AIAT will use the following quantifiable elements: • Merchandise Sales • Travel Package Sales • New Customers loaded to Internet Database When AIAT implements the Marketing Plan for the Adventure Travel Services, the company will realize success in more than one way.

Sales should begin to grow for the travel services but effective marketing will also generate increased sales of AIAT’S existing merchandise and products; therefore, merchandise sales increases will be used to evaluate effectiveness of the Marketing Plan. Effective marketing will also generate new customers viewing the company’s website. The customer information from the website is housed in a database. AIAT will view the baseline numbers for current customers prior to the final implementation of the marketing plan. Comparisons to the baseline numbers and the growth rate will provide quantifiable evidence of the marketing plan’s success. Financial Analysis AIAT ‘s marketing budget for year one of operations is taken from the start-up investment and is equivalent to approximately 6% of anticipated first-year revenues.

The marketing budget will be evaluated quarterly, and at the end of year one, adjustments will be made to advertising schedules, media vehicles, effective frequency, etc. as necessary. The following issues are relevant to AIAT ‘s marketing efforts: • As a start-up, AIAT has no baseline by which it can determine the effects of its marketing efforts on sales. Year two marketing activities will benefit from the financial results of year one operation. • The marketing budget has been established based on anticipated revenues. AIAT plans to employ the use of more sophisticated budgeting methods as a baseline is established. Break-Even Analysis AIAT ‘s break-even analysis, including monthly sales break-even points, is located in the following table. Break-even calculations assume a 20% gross margin.

AIAT plans to improve its margin by year three or four. The improved margin will come as the result of economies of scale, strategic alliances, and AIAT ‘s position as a premier service provider. AIAT will be able to raise prices without affecting demand. Fixed costs may increase slightly over the next two years. Break-even Analysis [pic] Monthly Revenue Break-even: $1501 Marketing and Sales Budget Forecast Budget |Category |2009 |2010 |2011 | |Sales |$550,000 |$660,000 |$792,000 | | | | | |Sales Expenses | | | | |Direct Costs of Sales |$445,000 |$515,000 |$602,000 | |Variable Costs of Sales |$0 |$0 |$0 | |Total Cost of Sales |$445,000 |$515,000 |$602,000 | | | | | | |Gross Margin |$105,000 |$145,000 |$190,000 | |Gross Margin % |19% |22% |24% | | | | | | |Marketing Expenses | | | | |Events |$25,500 |$35,000 |$39,000 | |TV Ads |$18,000 |$21,000 |$25,000 | |Radio Ads |$7,000 |$9,000 |$11,000 | |Advertising |$10,000 |$14,500 |$18,650 | |Promotion |$6,000 |$7,500 |$9,500 | |Internet Website |$4,000 |$5,500 |$7,200 | |Publicity |$16,000 |$19,000 |$22,000 | |Total Marketing Expenses |$86,500 |$111,500 |$132,350 | |Percent of Sales |15. 7% |16. 9% |16. 7% | | | | | | |Contribution Margin |$18,500 $33,500 |$57,650 | | | | | | |Contribution Margin/Sales |3. 4% |5. 07% |7. 3% | References • http://www. hotelmarketing. com/index. php/content/article/study_travel_will_remain_largest_online_retail_category/ • http://www. rtmnet. com/Portals/1/2007%20and%202008%20Top%20Ten%20Trends%20-%20July%202007. pdf • http://www. xolaconsulting. com/Adventure%20Travel%20Industry%20Growth%20Statsv2. pdf • http://www. theadventuretravelcompany. com/us/? clid=CPXC88uqhJcCFRPBDAodbmFnZg, The adventure Travel Company • http://www. adventurebizsuccess. com/opt-in. php, Warren, Tim, Who Else Wants Profitable Tourism Business & Travel Marketing Tips & Trainings Guaranteed to Improve Your Bottom line? • http://www. hospitalitynet. org/news/4034921. search? query=travel+and+tourism+works+for+america%2c+september+2006 • Armstrong, G. , & Kotler, P. (2005). Marketing: An introduction (7th ed. ). Upper Saddle River, NJ: Pearson/Prentice Hall. • Business Link (n. d. ). Practical advice for business [Create your marketing strategy]. Retrieved March 31, 2007, from http://www. businesslink. gov. uk/bdotg/action/detail

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