Integrated marketing communication plan for Volare Aviation Limited

Error! Bookmark not defined.1.2 Situation Analysis

- 8 -1.3 Strategic Goals and Short-Term Direction

Communications Audit

- 8 -2.1 Current Communications Approach

- 9 -2.2 Communications Strengths and Weaknesses

Key Audience

- 9 -3.2 Communications Strategy

- 10 -3.3 Communication Mix

- 11 -3.4 Budget

Evaluation and Measurement

- 11 -4.1 Potential Issues

Evaluation and Measurement System

Volare Aviation Limited is a newly established company operating from Wellington International Airport. They operate a small group of aircraft and offer fresh and innovative flying experiences -- lifting spirits through flight. Currently the company focus is helicopter flight training however on achieving the necessary certification; they intend to extend their services into the provision of leisure activities which is a segment of the tourist market.

This assignment; reviews relevant market information, outlines findings of an audit conducted on the company's communication programme and, makes recommendations based on these findings plus market research conducted as part of the assignment.

1.1 Executive Summary

Observations shows that the there is an increasing demand for luxury products all over the world. This therefore signals an increase in the number of companies targeting the high-end tourists and affluent class that has disposable income to spend on the luxury services. Volare Aviation Limited, which is a newly established company operating from Wellington International Airport needs to increase their level of awareness of their product while aiming to Increase annual bespoke tour and trial flights sold. The process of achieving above aims involves the fine-tuning of their marketing communication strategy. Marketing communication is important for the creation of awareness on a given business. This paper presents an integrated marketing communication plan to be used by Volare Aviation Limited in the achievement of their core business objectives. It is worth noting that the primary objective of communications is the building of business and product awareness as well as its position via materials such as websites, brochures, press releases as well as trade show presentation. The process of planning an approach which is integrated and yet consistent one requires a lot of efforts and planning. This is with the aim of reinforcing the organization's message to the target audience with aim of motivating them to buy the product. This should therefore form the core responsibility of a marketing communication manager. In order to come up with a good marketing communication plan, it became an necessity to research on certain key elements of the Volare Aviation Limited's operations. An in-depth understanding of the firm's target audience as well as the organizational processes that are involved in the buying of their services, the selling as well as communicating them was is necessary. The availability of this information then enables us to acquire the prerequisite knowledge necessary for determining the gains to be achieved from thee planed marketing activities, what the customers are aware of and how to best communicate the information to the customers. A determination of a budget schedule is done and an evaluation of the constraints that might be faced in the marketing campaign is carried out. This communication marketing plan is a step-by-step plan.

1.2 Situation Analysis

1.2.1 Wellington Domestic Tourist Market Landscape

Tourism in Wellington has grown significantly over the last decade as a result of more general increases in New Zealand tourism, a concerted effort to capture more of this growth in the capital and to develop the sector as one of the drivers of the city's economy. The broader development of events, entertainment and a cafe society has seen Wellington shed its previously somewhat dull image as an administrative centre.

As in many other urban areas and capital cities, Wellington offers a diverse range of attractions extending from cultural and heritage attractions to adventure activities. While the nature of the demand varies from attraction to attraction, local visitors are the core segment followed by other domestic visitors.

Wellington is the receptor of a significant number of domestic tourists that have a clear impact on the city's economy. The $881 million of domestic tourist spending in 2009 demonstrates such contribution.

There are no statistics outlining how much of the domestic tourist dollar is spent on leisure activities however, conference attendees spend can be used as a proxy. Research shows that 8.2% of conference attendees spend is on entertainment and amusement (excluding food and beverage)

therefore, the market value of the leisure activity market in Wellington is $72.2 million.

While tourism industry demand and profitability has decreased slightly (1.3%) from Sep -- Nov 10, it is expected that the following quarter will see a 1.5% increase. Recent announcements have indicated a continued decline due to the slow economic recovery however that is primarily the impact of reduced numbers of international visitors. Domestic visitors are expected to remain constant as the economic climate has resulted in an increasing number of people choosing to travel domestically rather than internationally.

1.2.2 Competition

HELiPRO is currently the only company focusing on providing a leisure flight service in Wellington. The company is a national company with 23 years in the New Zealand helicopter industry. They lease older helicopters to provide scenic tours of between 8 to 20 minutes primarily focusing on the Wellington harbour environment.

While direct competition is limited, the leisure activity market offers a wide range of competing activities. The following graph depicts the range of activities which compete in the leisure market, ranked according to participation by domestic tourists.

There is no specific measurement for leisure flights however, it would be fair to assume that this activity was categorised as other scenic/natural attractions comprising 1% of the activities that domestic tourists participated in.

1.2.3 Marketing Service Mix

1.2.3.1 Product

Helicopter flight training including:

commercial and private pilot training ratings (for different helicopter types and situations)

trial flights

Ancillary services include; hour building (for commercial licence requirements), helicopter leasing and flight reviews.

1.2.3.2 Price

The pricing approach for commercial and private pilot training is cost plus.

Trial flight training

$450 plus GST

Experience flights

$1,150 plus GST

It should be noted that while the prices are higher than the competitors prices, they reflect a bespoke service offering rather than the short, commonplace service of the competition.

1.2.3.3 Place (Distribution)

Customers can contact the company via the 'Contact us' option on the website or phone.

1.2.3.4 Promotion

The principal promotional tool is word-of-mouth via the unique relationships established with people within the Wellington aviation industry. For potential customers outside of these relationships, the website is the main promotional vehicle supported by a DLE brochure.

1.2.3.5 People

The company comprises three individuals with wide experience as both helicopter pilots and trainers. Gavin Murphy is the passion behind the company and has formed strong relationships within the aviation industry to provide customers with a wider range of service offerings. Gavin is passionate about offering a customer focussed service delivered by great people.

1.2.3.6 Process

The contact email address is the principal (formal) method available to customers who wish to contact the company. However, the relationships that Gavin has developed appears to have resulted in growth through 'word-of-mouth' recommendations and a less formal process for facilitating the delivery of services. This approach is also reflected in the companys terms and conditions which are presented as "dry stuffy bits" that are still deemed important.

1.2.3.7 Physical Evidence

Locating a new flight service business at the Wellington International Airport provides it with intangible benefits -- customers are likely to perceive that a company located at the airport must be credible and reputable. This perception is also enhanced by the new craft which are used (as opposed to the aging helicopters used by the competition).

1.3 Strategic Goals and Short-Term Direction

Volare Aviation stated strategic goal is to build an events management company focused on unique aviation experiences.

Short-term goals and direction include:

Developing a market strategy for the next 6 months.

Receiving operational certification (for leisure flight service)

Providing aircraft maintenance contracts to private individuals with high discretionary income

2. Communications Audit

2.1 Current Communications Approach

The current communication approach that has been employed by Volare Aviation Limited is e-mail and website-based which is actually not efficient. The other one used is telephone. Volare Aviation Limited also makes use of the old snail mail approach that relies on delivery of communications through postal addressees. These communication strategies are not very efficient since they are not integrated in its design. The need for an integrated approach is dictated by the fact that the different elements of communications have various strengths and weaknesses that can just be eliminated by complementing different approaches. These tools cannot be effectively be used in the researching of the audiences and branding. The effectiveness of communication is important in order to ensure that customers care about what is being communicated. It is also important for gauging if the content being communicated is complete. The other reason to measure the effectiveness of communication is to ensure that the elements being communicated are understood (Gray,2005)

6. Communication challenges facing Volare Aviation Company

7. Given the fact that volare Aviation Company is still a small organization, they have not established a customer support department. There is therefore a dire need for a dedicated customer support department to be established by the company that will be capable of managing all variety of customer questions and meeting their problems.

8. Volare Aviation Company needs to carry out brand development, they also need to design logos, and conduct magazines and newspapers advertisements. Besides, they should conduct show guides, write leaflets and branded t shirts. The company should therefore strive to rely on paid advertisements both in print and online media. The company should also engage in public relations and numerous events that will draw in more customers.

9. The company should vigorously hold seminars, conferences and trade shows besides downloadable materials. They should also sponsor numerous events and also conduct merchandising promotions. All these will be able to draw a wide range of customers. The company cannot only rely on the website and emails as a means of attracting tourists. They should practice all these.

Weaknesses

Babcock (2007b) also points out the following weaknesses of email communication.

1. The effectiveness of email communication relies solely on the diligence of the recipients in the checking of their inboxes.

2. It is much easier to ignore messages in email than the ones delivered through a verbal communication/interaction.

3. E-mail conversations require a long process to complete the communication process of understanding since the emails have to be sent back anmd forth.

4. Emails lack personal touch that is existent in spoken as well as face-to-face conversations

5. Email communications have a high risk of unauthorized disclosure of otherwise private and proprietary information

6. Emails can be a distraction

Snail Mail

Strengths

There is proof transactional signatures and authorization

Weaknesses

As the name suggests, the snail mail is extremely slow for the dynamic corporate environment.

3. Recommendations

The recommendations in this case is for Volare Aviation Limited to adopt an integrated marketing communication (IMC). Integrated Marketing Communications (IMC) involves the integration as well as the coordination of all of the available marketing tools, functions, avenues as well as sources that are within a given firm into an otherwise seamless program that aims at maximizing of the impact of the marketing campaign on the consumers as well as other end users at a cost that is minimal (Clow & Baack, 2007).

3.1 Key Audience

The 2009 Domestic Tourism Market Segmentation report identified that New Zealander travellers can be grouped into 8 market segments -- each different in its demographic and psychographic profile, its travel behaviour and its travel needs, and each calling for a different marketing approach.

There are 2 segments which would be appropriate audiences for Volare to target. They are identified as the "Rewarding" segment which accounts for 13% of New Zealanders and, the "Aiming High" segment which accounts for 8% of New Zealands.

Salient characteristics of the "Rewarding" profile are:

More likely to be males in management or professional positions. Eight in 10 are 25 years or older and one in four are 55 years or older.

Members are typically couples who have never had children or whose children have left home.

Have above average domestic travel for business

Travel products that appeal: golf products, short domestic breaks, food and wine

Market to this segment through: business media, special interest groups/media/online (e.g. golf clubs or magazines)

Core market proposition: "You work hard, you deserve it"

Salient characteristics of the "Aiming High" profile are:

Two thirds of its members are under 25 and almost 90% under 40.

Members of this segment thrive on challenge and excitement and aspire to take part in a wide range of activities

Holidays are an integral part of their existence. They travel the most frequently, both overseas and in New Zealand.

The ideal holiday destination for "Aiming High" is exciting, different, entertaining and challenging with a wide range activities and experiences.

Coming from affluent backgrounds where sports equipment and accommodation is a given, the most significant barriers to domestic travel are annual leave and work commitments.

Travel products that appeal: adventure and sports product, youth/sporting/adventure events, urban products

Market to this segment through: youth media, special interest media (e.g. surfing, skiing etc.), online channels, clubs, cinemas

Core market proposition: "More bigger, best!"

3.2 Communications Strategy

The communication issues or problems to be addressed are related to the disadvantages of employing only email and snail mail in the marketing communications. The communication strategy to be employed is to be made up of an Integrating Marketing Communications (IMC);This includes the available marketing tools, functions, avenues as well as sources that are within a given firm into an otherwise seamless program that aims at maximizing of the impact of the marketing campaign on the consumers as well as other end users at a cost that is minimal (Clow & Baack, 2007). Integrated marketing communications strives to put into it that uniformity of message and the balancing use of media. The perception comprises of online and offline channels of marketing. Online marketing avenues comprises of any e-marketing campaigns and programs, ranging from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro-blogging, RSS, podcast, Internet Radio, and Internet TV. Offline marketing channels refers to the traditional print which includes the newspaper and magazines, mail order, public relations, industry relations, billboard, traditional radio, and television. A company can improve its integrated marketing communication programmer by making use of all the marketing mix elements. These are the product, price, place, and promotion. Integrated marketing communications plans are very vital for an organization to achieve success

3.3 Communication Mix

The Internet has greatly distorted the way business is conducted in the present world. The variables of segmentation, targeting and positioning are looked at in different perspectives. The way in which new goods and services are being marketed have greately changed desoite the fact that the sole purpose of business in bringing both economic and also social values remain the same. Indeed, the sole purpose of the business increasing revenue and profit remains the same.Marketing has greatly changed to more of connectedness, due to the new distinctiveness brought about by the Internet. At one time, marketing was viewed as a single way. firms broadcasted their offerings and value proposition. Marketing is now seen more as a talk between the customers and markets (Strokes,2008). Marketing efforts makes up the marketing mix. Product promotion is a constituent of marketing mix. Some of the activities intended for promotion include advertising . this can be done by using a variety of media. Other activities for promotion includes sales promotion which includes sales and trades promotion, and also individual selling activities. Internet marketing is also included and besides, marketing by sponsorship, straight marketing, database marketing and public relations. amalgamation of all these tools aimed at promotion coupled up with other marketing mix mechanism can make an organization to get ahead of other competitors.The starting point of the IMC process begins with the marketing mix and includes several types of marketing, sales and advertising efforts. Without a full IMC plan there can be no amalgamation or agreement between the patron and customers. The aim of any organization is therefore to establish and uphold efficient communication throughout the organization's own employees and all through its customers.Integrated marketing has its basis on greater marketing plan. This plan should strive to organize efforts in all mechanism of the marketing mix. A good marketing plan should consist of the following steps: first, situation analysis, the marketing objectives and marketing budget.(Clow & Baack,2007)

3.3.1 Listing Online

Travellers are becoming increasingly confident researching and booking their holidays and holiday activities online. It is therefore essential that you have an online presence. If your customers can't find you online, there's a good chance they'll go elsewhere.

There are a number of websites that allow tourism businesses to list their products, along with contact details, photos and booking information. It is free to list on Tourism New Zealand's travel website www.newzealand.com. By registering free on this site, you'll be connecting with the more than 100,000 travellers that visit the site every year.

WellingtonNZ.com remains by far the most visited official regional tourism site in New Zealand with around 200,000 more visits annually than their nearest competition.

3.4 Budget

Jan Feb March April May June July Aug Sept Oct Nov Dec

IMC objective 1

IMC objective 2

IMC objective 3

Total budget

4. Evaluation and Measurement

4.1 Potential Issues

There are various challenges of implementing an Integrated Marketing Communications (IMC).These include; legal challenges (Fitzpatrick,2005);Others are;

Lack of consistency in the strategy

Lack of necesary skill sets by the marketing staff

LACK of creativity as well as innovation

Insufficiency of marketing budget

Lack of a standardized measurement process

Lack of technology appropriate advancement support.

Ambiguity on the identification of issue

Complexity of the cultural as well as social values

4.2 Evaluation and Measurement System

A number of factors that affect the way customers do respond to marketing offers as well how marketing communication scan effectively be managed are studied by Duncan and Mulhern (2004), Schultz and Schultz (1998) and Shimp (1999).They incluu the following;

Reduced level of faith in the mass marketing approach as a way of marketing products; outcome is a dilute media loyalties or its dilution

Increase in the level of reliance on highly targeted communicating approaches for marketing in order to reflect the element of "relationship-marketing"

Increased turnover

The evaluation and measurement system to be used in order to allow the determination of the affectivity of the communication plan objective are;

End user response

Improvement I profitability

Consumer survey