Contiki Tours : Marketing Strategy Analysis
Contiki Tours is an organisation that offers packaged holidays to a variety of local and international
destinations. Their targeted market is limited by age. Clients must be between 18 and 35 years old.
The analysis will focus on Contiki *s Australian market for international holidays.
Contiki have adopted a concentrated marketing strategy in identifying market segments. This means
that they have elected to focus their marketing efforts on gaining a high share of one particular
segment of the market (i.e. 18-35 year olds). The advantage of such a strategy is that it allows
specialisation which may produce economies in production, distribution and promotion. However, it
does entail some risks in that market needs can change or competitors may enter the segment. The risks
and benefits of this strategy will be examined more closely in the analysis of the marketing mix.
Product
In order to assess the effectiveness of Contiki's marketing strategy it is important to understand the
nature of the product offered by the organisation in terms of the benefits that it provides. Broadly, it
is a service product (eg. flight, bus trip, food preparation) although elements of the product are
physical (eg. food, t-shirts). It is a specialty product given that it meets a specialised need and
consumers are willing to spend quite some time searching for and evaluating. It is also purchased
infrequently. It would also be considered a high involvement product due to the relatively high risks
of purchase. The notion of purchase risk will be explored in more detail in an analysis of consumer
behaviour.
Price
The nature of the product, characteristics of the target market, and consumer behaviour each have
important implications for pricing. It should be noted that the price paid for the product by the
consumer involves more than the nominal price (i.e. the 'price tag'). As well as the money paid for
the product, consumers endure time costs and must expend behavioural
destinations. Their targeted market is limited by age. Clients must be between 18 and 35 years old.
The analysis will focus on Contiki *s Australian market for international holidays.
Contiki have adopted a concentrated marketing strategy in identifying market segments. This means
that they have elected to focus their marketing efforts on gaining a high share of one particular
segment of the market (i.e. 18-35 year olds). The advantage of such a strategy is that it allows
specialisation which may produce economies in production, distribution and promotion. However, it
does entail some risks in that market needs can change or competitors may enter the segment. The risks
and benefits of this strategy will be examined more closely in the analysis of the marketing mix.
Product
In order to assess the effectiveness of Contiki's marketing strategy it is important to understand the
nature of the product offered by the organisation in terms of the benefits that it provides. Broadly, it
is a service product (eg. flight, bus trip, food preparation) although elements of the product are
physical (eg. food, t-shirts). It is a specialty product given that it meets a specialised need and
consumers are willing to spend quite some time searching for and evaluating. It is also purchased
infrequently. It would also be considered a high involvement product due to the relatively high risks
of purchase. The notion of purchase risk will be explored in more detail in an analysis of consumer
behaviour.
Price
The nature of the product, characteristics of the target market, and consumer behaviour each have
important implications for pricing. It should be noted that the price paid for the product by the
consumer involves more than the nominal price (i.e. the 'price tag'). As well as the money paid for
the product, consumers endure time costs and must expend behavioural