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The objective of VisitBritain itself is to extend market share through enhance the number of international visitors come to the UK. At the meantime, enlarge British image and increase public investment. Under some analyses, it can be clearly seen that VisitBritain has done their job effectively. However, our team has discovered that the elderly people in China might be underserved as the fact indicated that senior group of people only consist 1% of total Chinese international visitors. Therefore, this market could be an opportunity for VisitBritain to develop. In order to develop deeper into this market our team has make a specific marketing plan and the main objective of the marketing plan is increasing the market share from 1% to 5%.

Executive Summary

Chinese elderly visitors are underserved
In the Chinese market, France and Germany are two main competitors of Britain
Recommendation:
A travel package designed for old people is created in terms of the ageing society with booming economy.

1. Business Mission
VisitBritain is a company operating in the tourism business which aims to increase inbound tourism in Great Britain and to improve Britain’s raking in the eyes of international travellers but also to expand the tourism industry.!
VisitBritain is marketing Great Britain worldwide especially in emerged countries like France, Germany, North America and Australia (which are considered as high volume/high value markets) but the company is now trying to attract more visitors from newly emerged countries such as China and Brasil.!
The tourism market is described as fragmented as 200,000 small and medium-sized tourism business are operating on it.!
To achieve its goals, the company has a lot of partners in the UK and overseas, but it also sponsors events like festivals or advertise Great Britain using visual marketing.

2. External Marketing Audit
Macro-environment

VisitBritain is Britain’s national tourism agency, a non-departmental public body sponsored by Department for Cultural, Media and Sport. It must comply with EU and national laws and is influenced by the Department’s wider governmental priorities. (VisitBritain Statutory Annual Report, 2012)

Some international visitors have to get a visa before they travel to UK so that they must go through all the visa processes. The more complex the processes are, the lesser the people come to UK. In 2012, VisitBritain employed a consultancy. They identified that one of the key drivers of future success is to make visiting Britain easier by addressing the current visa issues. (VisitBritain Statutory Annual Report, 2012)

In 2008, global financial crisis occurred and significant number of people lost their jobs (i.e. unemployment rate was high). It therefore adversely affected consumer purchasing power and spending pattern. In 2012, global economy remained sluggish and people were unwilling to spend their money on luxurious life (i.e. they became financially cautious consumers). (VisitBritain Statutory Annual Report, 2012) However, the situation wasn’t that worse because pound sterling started to depreciate (i.e. foreigners used less foreign currency to exchange for a pound). UK gradually turned into a desired place to visit because travel costs were reduced significantly in the eyes of international travellers.

The poor weather in UK has led to some consumers cutting out trips. (VisitBritain Statutory Annual Report, 2012) In the past few years, some activities were rained off. As weather is an uncontrollable factor, VisitBritain can only react and adapt to forces in the environment.

Recently, consumers concerned about the environment and they started involving in sustainable tourism. They travelled green and tried to make the lowest impact on environment and local culture. (VisitBritain Overseas Visitors to Britain, 2010) This trend was able to benefit the whole world.

The world population was rapidly aging. In 1994, 13% of visitors to Britain were aged 55+. Fifteen years later, in 2009, the proportion had risen to 18%. (VisitBritain Oversea Visitors to Britain, 2010) Culture, sport, music, countryside, food, shopping and heritage are great in UK. (VisitBritain Marketing Highlights Film, 2012) UK ranked the 4th in terms of contemporary culture (music, films, art, and literature) and it was the 7th position in terms of cultural heritage. (VisitBritain Overseas Visitors to Britain, 2010) Elderly travellers would like to experience different cultures around the world. UK was therefore able to satisfy their needs.

Business to business communication is important. VisitBritain were using video conferences and webinars to hold meetings and conferences. (VisitBritain Statutory Annual Report, 2012) Advanced information technologies led to the increase of the firm’s efficiency in decision making and travel costs were reduced significantly.

Communication between business and consumers is also essential. Nowadays, people can easily access to online social networking services. VisitBritain has already set up fans pages and tried to promote its services in these websites. There were over 1 million fans on Facebook. (VisitBritain Marketing Highlights Film, 2012) This promotion method could largely reduce the advertising expenses and built up good relations with public.

The Market

Tourism is an important industry in UK. In 2009, it was worth £115.4 billion to UK economy which was equivalent to 8.9% of UK Gross Domestic Products. (VisitBritain Visitor Economic Facts, 2013) In 2012, UK shared 2.8% of global arrivals and 3.4% of international tourism receipts. VisitBritain forecasted that tourism would still account for 8.8% of UK economy in 2020. From 2010 to 2020, the company believed that the growth rate of visitor economy will be around 3.5% per annum which grow slightly faster than the economy as a whole. (The economic contribution of Visitor Economy, 2010)

(VisitBritain Visitor Economic Facts, 2013)

Customers

In 2012, one-third of the visitors were come from France, Germany and USA and they accounted for over one-quarter of total visitor spending in UK. Last year, significant number of youth travellers came to UK for their holiday and they contributed £20 billion to the economy. (VisitBritain Targeting the youth traveller, 2013)

Due to the global economic downturn, people recently tended to choose day trips because they avoided spending money on accommodation. In 2012, there were 1.8 million day visitors and they spent about £30 million. (VisitBritain Statutory Annual Report, 2012)

Customers chose going to UK mainly because they would like to visit museums, art galleries and heritage attractions. British Museum was the most popular attraction last year and its admissions were about 5.6 million.

People perceived that UK was one of the expensive countries to travel to. (VisitBritain Foresight, 2011) Value conscious customers avoided traveling to UK because its cost of living was relatively high.

(VisitBritain Inbound Tourism, 2013)

(VisitBritain Visitor Economy Facts, 2013)

(VisitBritain Foresight, 2011)

Competitors

Italy and France were the two major competitors of UK. Both countries were able to attract the prior visitors to return. In 2012, Italy ranked the 5th in terms of international tourist arrivals. Visitors enjoyed eating Italian foods and they thought that Italian was warm and welcome. (VisitBritain Overseas Visitors to Britain, 2010) In the last decade, France was the most popular tourism destination in the eyes of international travellers. It was seen to be a romantic country and people perceived that it was a suitable place for honeymoon.

Distributors

The travel trade was an important channel for VisitBritain and the major distributors included travel agents and tour operators. They acted as intermediaries between travellers and tourism products, opened up new markets and encouraged visitors to stay longer in Britain. (VisitBritain Travel Trade, 2013) Travel agents were the distributors for tour operators and they sold holidays to customers. Tour operators planned the individual components of a holiday package. They also negotiated with different organisations to keep the costs (travel, accommodation, transfers and sightseeing) as minimum as possible.

Suppliers

VisitBritain established an online shop which was mainly for the international travellers. The company treated its suppliers as partners to offer customer value and the cooperation between both parties also provided a profitable route for them. The three major suppliers included tourist attractions companies, sightseeing tours companies and transportations companies. The tickets and tours sold encourage people to stay longer in UK and travel around the country. (VisitBritain Retail, 2013) Visitors would benefit from being able to plan their holiday in advance, accept the given discounts and avoid long queues while in Britain. (VisitBritain Overview, 2013)
3. Internal Marketing Audit

Strategy is to attract overseas traveller in order to expand market share and meanwhile encourage more partner engagement and commercial event to enlarge public investment. Furthermore, support promotion of the UK tourism abroad using our global network. Moreover, provide some advises for government and the tourism industry and especially rise our worldwide competitiveness. Specifically, firstly spending £1 billion in public relation and promote a positive image for Britain, at the meantime to increase foreign traveller by 4.7 million to achieve the visitor spending for £2.3 billion. In terms of job market, our target is to create about 60,000 new jobs (VisitBritain Overview, 2013). Market is based on Geographic segmentation. It includes 42 countries across the world. The competitive advantages include strong relationship with partners and worldwide network. The partner consists of government agencies, global brand such as Samsung and official tourism bodies. They are not only can promote British image abroad but also support us to enlarge the influence of the tourism agenda. In terms of global network, our firm has 24 foreign offices covering 21 markets which occupy 74% of inbound tour spend (VisitBritain Overview, 2013). Additionally, core competencies are that visitor economy is beneficial from VisitBritain. Particularly, the international marketing and business activities generate appreciable revenue every year. Moreover, our partner and public reduce costs by our export platforms and commerce services. Furthermore, in relation to wide economy, the VisitBritain also make a great contribution as it promote Britain’s image not only for tourism but also for investment and working. In terms of positioning, VisitBritain use culture, heritage and countryside through shopping, food, sport, adventure and music to attract international visitors and youth travellers. Particularly, the intentional travellers achieved about £10 million of turnover in retail activities and generated over v£500,000 net profit, these achievements are supported by VisitBritain shops which occupy 13 local market websites with 150 product and discount for foreign visitors (China market and trade profile, 2013). According to the marketing mix, VisitBritain has done effectively as they are not only providing travel product, but also offering some travel essentials for global customer, such as SIM card, travel adaptor and travel audio with many countries languages. For product, they have a wide variety of product, such as sightseeing tour, Royal Britain and Animal attractions. Furthermore, these attraction is spread over the country, the place contain England, Wales, London, Scotland. The product also involved aspect of sport, music and food. In terms of price, it is reasonable as they have divided it into adult ticket, children ticket and free ticket along with some discount. For instance, visitor buys the ticket within 48 hours or during a particularly period (VisitBritain online shop).
4. SWOT Analysis
Strengths:
Visit Britain is a government agency operating at arm's length with a private sector Chairman and a Board. Funded by the Department for Culture, Media and Sport, we work with partners in the UK and overseas to ensure that Britain is marketed in an inspirational and relevant way around the world. (http://www.visitbritain.org/aboutus/overview.aspx)
We also have 24 overseas offices covering 21 markets that together account for 74% of inbound tourism spend. Some of these markets offer immediate returns, others have long-term promise. We implement differentiated marketing strategies to maximise return in all of them. (http://www.visitbritain.org/aboutus/overview.aspx)
We operate a network of online shops for visitors to Britain. www.visitbritainshop.com allows tourists from all over the world to book UK and London attractions, sightseeing tours and travel tickets prior to travelling, in their local language and currency. Customers benefit from being able to plan their holiday in advance and avoiding queues whilst in Britain. (http://www.visitbritain.org/aboutus/overview.aspx)
Weaknesses:
Marketing Programme does not achieve targets
GREAT branding does not resonate with consumers
Poor choice of markets in which campaigns are run
Poor choice of delivery channels
Constraints on Visit Britain’s freedom to act, particularly with the image campaign
Poor or infrequent reporting on impact of campaign hinders ability to alter plans
Failure to raise match-funding and in-kind support
Website instability
Lack of credibility of as delivery body
Lack of credibility of as delivery body
Failure to secure agreement from partners to deliver an agreed tourism strategy for growth for Britain
State aid or competition law complaint;
Survey-based measurement & evaluation methodology not considered to be robust/ credible
Partnership deals are challenged; failure to adhere to transparent tender processes when appointing agencies and suppliers
Industry dissatisfaction

Major business interruption
External/internal event results in total business disruption to office and/or network; failure of IT systems

Reduction in operating budget lead to failure to meet targets due to less funding for operational spend
Failure to reach targets for on-line shop/loss of key supplier
Unplanned demand on grant-in-aid due to financial risks from new business method and activities/changes in tax regimes/interpretation
Rise in irrecoverable VAT due to changes in operation/patterns of spend and additional monies received affecting recovery rates
Pension deficit increases at 2012triennial valuation leading to increase in deficit funding
Major downward currency movement in markets not covered by forward contracts (increased risk due to inability to forward purchase until image campaign funding finalised)
Direct funding of ETB leads to increased costs
Opportunity:
Tourism is one of the largest industries in the UK. Tourism contributes £96.7bn to the economy in England (8.6% of GDP), £11.1bn in Scotland (10.4%), £6.2bn in Wales (13.3%) and £1.5bn in Northern Ireland (4. 9%). (http://www.visitbritain.org/insightsandstatistics/visitoreconomyfacts/)
Our priority is to deliver a four-year match-funded global marketing programme - GREAT Britain - you're invited - which takes advantage of the unique opportunities of the Royal Wedding, the Queen’s Diamond Jubilee and the London 2012 Games. (http://www.visitbritain.org/aboutus/overview.aspx)
Prominence following the London 2012 Games
Large global aviation route network
Strong associations with culture and heritage
Strong tourism infrastructure
English language
London is a global city

Threats:
Britain’s image is good but competitors do better on some key aspects
Perceived deterrent effect of the visa regime
Small share of voice in a crowded marketplace
Product and packaging gaps
Lack of future airport capacity
Lack of awareness of attractions outside London
External factors (e.g. oil price, currency movements, recession etc.) impact on visitors’ ability to travel

5. Marketing Objectives

In terms of strategic thrust, elderly people in China are the market to target. There are several reasons below. Firstly, Chinese visitor have a considerable amount of travel budget. For example, they have spent $102 billions on international tourism in 2012. Secondly, China is an underlying growth market as VisitBritain state that the number of Chinese visitor comes to the UK will be trebling in coming ten years. More importantly, there are 150 million people over the age of 60 in China (China market and trade profile, 2013). However, the senior group of people only consist 1% of total Chinese international visitors (Foresight issue, 2013). Thus, the market objective is enhancing the market share from 1% to 5%.

Additionally, the strategic thrust of market development should apply due to the senior group is a new market for VisitBritain. The specific tactic would be firstly design a particular travel plan within options to meet their demand and interests. It may include aspect of British culture, customs, natural view and traditional castles. (As the report claimed that, 42% of Chinese travellers are interested in visit the Buckingham Palace. Also, Museum and Galleries attract half of holiday visitor.) Secondly, there will be a fixed team to give special support services, such as bilingual tour guide or provide equipment, such as wheelchair and First-aid case. Moreover, the strategic objective is to build market share and increase sales. More specifically, it may implement by market expansion (Jobber and Chadwick, 2013). There are two possible methods. First of all for new users, we can increase awareness of travel to the UK by advertising and also to imply that the expense is valuable. Furthermore, increase the frequency of travel. For instance, persuading people to travel to Britain not only on the best season like July and August, but also encourage them to come during off season by adverting to explore the difference aspect of Britain, such as Christmas or Easter holiday.
6. Core Strategy

TARGET MARKET
With a population of over 1.3 billion, China is the world’s most populated country. It is the biggest market (in volume) for VisitBritain and the largest source countries tourist in Asia (China Market and Trade Profil ; November 2013). However, China is not in the top ten markets by volume or value, but is one of the countries that shows a recent growth in the average absolute growth.

(Inbound tourism facts ; VisitBritain corporate site)

Moreover, the company seems to perfectly target people in China for leisure tourism, study, and business travel, but it seems to underestimate the growth and especially the up-coming demographic change in this country. According to the NPC Standing Committee's law-enforcement report on the Elderly Protection Act, in November 2010, China had 178 million people over 60 years old, (13.26% of the total population), and makes China the only country on the earth with more than 100 million elderly people. The report also predicts that China’s elderly demographic will top 300 million by 2025 and more than 30% of its population will be over 60 by 2042.
This demographic change might also lead to changes in the tourism trends in the next decade as it might increase "inter-generational" travel (grandparents taking their grandchildren on holiday). Plus, 'improvements in life expectancy, general health in old age and a greater desire to remain active in a later life' (Overseas Visitors to Britain, Understanding Trends, Attitude and Characteristics, September 2010) may lead to a significant growth of the old people travel and also a big change in their travelling attitude.

COMPETITOR TARGETS
By developing the Chinese market, VisitBritain will be faced to multiple competitors mainly in Asia as most of the top ten destination of China’s outbound tourism are located there.

(Most visited outbound destinations in 2012, China Market and Trade Profile, November 2013)

This might be explained by the short-journey travel required to go to these destinations. But, if we only consider competitors who are at an equal distance to China i.e. competitors in Europe, France and Germany are Britain’s biggest competitors. They seem to attract more visitors than Great Britain as France is one of the most visited country in the world. However, Britain has several competitive advantages that can be used by the company in their marketing campaign to compete with those countries.

COMPETITOR ADVANTAGE

The British culture is known worldwide and is one of the most attractive cultures. It is a mix between old and contemporary culture and provides multiple activities to all travellers coming to Great Britain. Some particularities make Great Britain really attractive to foreign visitors such as visiting British pubs which give travellers the feeling of being an authentic British and make them feel welcome, museums, but also the English Football.

The English Football League which is the Barclays Premier League is particularly highly rated in China as it "attracts television audiences between 100 million and 360 million". Chinese people are more likely to travel to Great Britain to attend to a football game as "opportunities to experience top-class football matches can be limited" in China. (Overseas Visitors to Britain, Understanding Trends, Attitudes and Characteristics, September 2010)

The fact that Britain is an English speaking country can also be a competitive advantage over France and Germany as it might be easier for foreigners or especially Chinese travellers to communicate during their stay in England. Moreover it seems like the British English has a "snob value" that makes it even more appealing and gives Britain a competitive advantage over other english speaking countries.

7. Marketing Mix Decisions
8. Organisation and Implementation
9. Control
Overall, I think the market objective that Chinese senior group increase to 5% will achieved. There are several reasons below. Firstly, market objective is clearly identified. Secondly, a performance standard of increasing 1% market share to 5% is achievable due to there are 150 million people over the age of 60 in China and the report also predicts that China’s elderly demographic will top 300 million by 2025 and more than 30% of its population will be over 60 by 2042. Furthermore, Britain has a strong competitive advantage, such as British culture and English football. More significantly, contrapose elderly people in China, a strategic thrust and strategic objective is conducted through market development and market expansion. Therefore, the market objective will achieve. However, if the market objective is not achieved as we expect, there are some corrective actions. For instance, the performance standard can reduce from 5% to 4%, change advertising method.

Reference:

Jobber, D and Chadwick, F (2013) Principles and practice of marketing Berkshire, McGraw-Hill.

VisitBritain (2013) Foresight issue< http://www.visitbritain.org//Images/Foresight%20-%20issue%20120_tcm29-39146.pdf >(October 2013)

VisitBritain (2013) China market and trade profile (November 2013)

VisitBritain (2013)

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