MARKETING PLAN FOR CAVALA

SEASIDE RESORT, GOA, AIMED AT

THE UK MARKET

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CONTENTS

1. EXECUTIVE SUMMARY.......................................................................3

2. INTRODUCTION.....................................................................................3

3. INTERNAL ANALYSIS...........................................................................4

4. PEST ANALYSIS......................................................................................6

5. CORPORATE OBJECTIVES..................................................................9

6. MARKETING OBJECTIVES..................................................................9

7. MARKET SEGMENTATION.................................................................11

8. MARKETING MIX..................................................................................13

9. IMPLEMENTATION...............................................................................14

10. BUDGET...................................................................................................15

11. REFERENCES..........................................................................................16

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EXECUTIVE SUMMARY

The following is a marketing plan for Cavala seaside resort located in Goa, a coastal state in

India. The marketing plan includes step by step process of the entire mode of operations and

budget allocation. The target market for the plan is the younger population of UK who are

looking to Asia and more importantly India as a preferred holiday destination. The report

includes environment scanning of the Goa tourism market and the resort and reasons for it

being a favourable holiday destination for tourists from the UK. Marketing strategies and its

feasibility has been assessed through and the budget requirement has been validated after

ample research.

INTRODUCTION

Goa, India’s smallest state located at the west coast of the country is one of the most

attractive tourist destinations of the country. Although the local population of the state is

recorded to be the fourth lowest of the nation, the steady influx of tourists from all over the

world make the state lively and crowded most of the year (Chaudhary, 2000). Tourism has

been the main economic driver of the state for a few decades now. The beaches of Goa are

the main tourist attraction for the state owing to 105 kilometres of coastline bordering the

Arabian Sea. The coastline takes up the majority of Goa’s geographic demography and the

government has been cashing in on it among other tourist destinations (Beerli & Martin,

2004). Cavala seaside resort is one of the most appealing resorts of Goa located in one of the

most popular beaches of Goa, the Baga beach. It has a history of 27 years of immaculate

service and one of a kind ambience that is a subtle mixture of old age charm and new age

comforts(Chaudhary, 2000). The target audience for the resort will be the UK population who

have a culture of enjoying their vacations touring the world and visiting various destinations

of international appeal. The UK market is quintessentially European in culture owing to the

constant inflow of people from other European nations. People share similar cultures and

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tastes and thus the concept of a relaxing holiday away from familiar surroundings is high on

the priority list of Europeans.

INTERNAL ANALYSIS

STRENGTHS

The main strength of Goa has always been its scenic beaches and all the activities

surrounding it on its behalf. Goa has created an identity for itself over the world with the

“sun, sand and beach” concept which has been its selling point for years. Beach is seen a part

of daily life for people in Goa as everyone inevitably lives in and around beaches and it had

made its impact on the lifestyle of the population. All the major businesses in Goa like

restaurants, spas, leisure centres, hotels and resorts, clubs and bars are located within close

proximity to the beach thus making it a one stop location for all tourist activities (Chaudhary,

2000). The warm climate attracts people from cold countries like the UK where people want

to get away from the cold weather for a while. Weather is very pleasant starting September to

March which is also the peak season for tourists (Chaudhary, 2000. The rest of the year is a

mixture of summer and monsoon which attracts its lovers as well. These periods also attract

tourists looking to enjoy the place with lesser crowd. On the whole the climate of Goa is one

of its premier attractions which combine well with the festive mood of the beach.

Another important strength of Goa is its vibrant night life which is essentially a mixture of

beach parties and time spent in beach bars. The lowered restrictions on night life and

deadlines when compared to other cities have also worked well in Goa’s advantage. Beach

parties are known for its lively atmosphere, music and good food which are perfect stress

busters for hard working Europeans. Shopping is another important attraction in Goa where

local items such as hand carved woodwork, linen garments, junk jewellery, shell work and

other handicrafts are brought as souvenirs by tourists. Another major attractiveness of Goa is

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the easy availability of transport in all forms namely train, local and long distance buses and

international airport (Chaudhary, 2000). Goa boasts easy accessibility to all local destinations

through taxis as well as auto rickshaws which is the most common form of short distance

transport in India. Good food is also a major attraction as well as a factor of strength for

tourism in Goa. Goa is a hotspot for a variety of seafood available at restaurants and stalls

located in and around all the beaches and the food alone attracts sea food lovers from all over

the country and abroad.

WEAKNESSES

One of the main weaknesses for Goa and Indian tourism in general is the comparatively weak

infrastructure when compared to most western developed nations. Tourists from UK are used

to quality infra structure which makes for comfortable living. India is not high on

infrastructure and most parts of the country have a long way to go before it can match up to

their expectations (Beerli & Martin, 2004). India is still on the back foot when it comes to

booking all forms of accessibility options online, using credit cards for online purchases and

other dealings, accessing transport at a click of a button and other such offerings that are

commonplace in countries like the UK and the US.

The heat of Indian summers can sometimes get to the foreign tourists. Although tourists like

to get away from the cold that they are used to, it is not easy to adjust to soaring temperatures

and humidity of Indian summers. The climate which can be a definite strength can also pose

as one of the weaknesses when it comes to tourism in Goa (Chaudhary, 2000). Also the safety

of women tourists in scarcely populated areas in Goa is also a hindrance to having a peaceful

stay during the course of the tour. It can be quite a contagious weakness as such instances are

quickly spread rough word of mouth and can affect the industry in the long term if it persists.

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A significant threat that has affected the Indian tourism industry on the whole is the threat of

terrorist attacks that have been maligning the image of the nation for quite a while. Terrorist

attacks in most major cities in India over the last couple of years have had its impact on

Indian tourism and the case has been no different in Goa (Beerli & Martin, 2004). Fear of

attacks has considerably reduced tourist influx into the country and it is likely to remain the

same for quite some time. People will tend to remain in the comfort of their homes rather

than take the risk of holidaying in red alert destinations.

PEST ANALYSIS

PEST analysis is one of the most reliable analytical frameworks to assess any business

environment. It uses the variables of political factors, economic factors, social factors and

technological factors to scan the potential of businesses in a particular area. A PEST analysis

of Goa will give a clear idea about the current scenario for tourism which will help in

strategic decision making by the management of the resort.

POLITICAL FACTORS

The political situation of Goa hugely favours tourism as it is the highest gross earner for the

state and any false step by the government to hinder tourism could hamper the economy of

the whole state (Chaudhary, 2000). Goa is unique in a sense that it is the only state in India

where government has given extended deadlines for late night parties. It has also made

casinos legal in Goa and also reduced taxes heavily on liquor and associated products when

compared to elsewhere in the nation. Such government steps have made a huge impact on the

tourism industry in Goa and thus people do not shy away from choosing it as a premier

holiday destination. Currently terrorism and security are the primary agenda of political

powers in India due to the recent issues of terrorist attacks in most of the major cities of the

nation.

ECONOMIC FACTORS

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As mentioned earlier, tourism accounts for the bulk of economic development in Goa. Over

the years the success of the tourism industry in Goa has forced the government to provide all

support to the industry and loosen the grip on taxes and tariffs. The rate of economic

development has also helped in boosting infrastructural capabilities of Goa thus enabling

further investment and returns in the sector. All this has its impact in the inflow of foreign

tourists as the marketing of tourism on an international level is fierce in the case of Goa

tourism.

Goa is the more expensive when compared to other states in India in terms of rates of

accommodation, food and leisure. Since the tourist industry targets foreign clients from all

over the world it does not make a huge difference as it would still end up being cheaper when

compared to other tourist destinations across the globe. The exchange rates between UK and

India are favourable for people coming in from the UK. It ends up being favourable for both

sides as both don’t feel the pinch (Chaudhary, 2000).

SOCIAL FACTORS

Culture is an important factor that affects any business environment positively or negatively.

Goa was a Portuguese colony until the 1960’s and this has had a definite impact on the

culture of the place (Beerli & Martin, 2004). People of Portuguese descent are common in

Goa and this has influence the Goan lifestyle. People are very contemporary in their thinking

and fun and leisure very much an essential part of the Goan lifestyle. This also has been one

of the attractions for tourists who prefer Goa over other destinations in India. There is no

issue of a culture shock for foreign tourists when compared to situation in a tourist

destination like Kerala. The average age of the population of Goa is essentially young and

this too has positively impacted tourism. Drinking and socialising is seen as part of the

culture and it rubs off on the people creating a light and friendly atmosphere for tourists and

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locals alike. These are factors that make people repeatedly visit a destination and thus Goa is

not new to frequent visitors due to its immaculate charm and charisma.

TECHNOLOGICAL FACTORS

Goa is known more for natural reason and is not high on technological advancement. It has

reliable infrastructure but does not boast any technological intervention in their activities.

That being said, it is not wise to say that this has had a negative impact on tourism and people

visit destinations to get away from the daily rush of their lives of which technology plays a

major role. Tourists are happy to get off technology for a while and spend time interacting

nature and other delights the destination has to offer (Beerli & Martin, 2004). As long basic

technological necessities are fulfilled such as availability of mobile phone and internet

connectivity, tourists would not have much to complain on that front.

CORPORATE OBJECTIVES

Other the next year Cavala resort should look to achieve the following objectives

Obtain high levels of customer satisfaction through immaculate customer service with

customised facilities according to client requests and interests.

Obtain more customers through customer outreach programs, direct client

procurement and interaction beforehand.

Lessen cases of visitor harassment by working in association with the public sector.

Provide in-house transport facilities for clients looking to visit local tourist spots.

Provide services for clients who require assistance with local visits and shopping.

Obtain competitive edge through being ahead of competitors in all aspects.

MARKETING OBJECTIVES

Over the next year Cavala resort aims at achieving the following:

Increase market share by at least 10% by the end of the year.

Obtain a turnover of more than 20% by the end of the year.

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To obtain a strong hold of the UK tourist market by giving it first priority over other

nations.

To obtain competitive edge over rivals through innovative marketing strategies.

MARKET SEGMENTATION

Cavala resort is looking at the UK market for potential clients and customers looking for a

holiday hotspot. The UK market is one of the most desired markets for any business because

of a lot of factors that separate the population from the rest of nations like higher annual

income, better spending capability and such. Market segmentation is done by separating the

market into distinct categories so that each category can be handled differently and

effectively. The UK market can be segmented into the following categories

DEMOGRAPHIC:

Cavala is looking to target two demographic categories life stage wise, young singles and

young couples. This is because of the nature of Goa, its lively culture, the party scene and the

overall youthful charm of the place which is best suited for young singles and young couples

married or else wise. Targeting an older audience for a destination like Goa will not be

advisable as the generally crowded nature will not suit peace loving older peopleOccupation

wise Cavala resort will look to young office going clients and students who are looking for

breaks from hectic work schedules and course works in the case of university students

PSYCHOGRAPHIC:

In the lifestyle category, Cavala resorts will be targeting an audience who are looking for

high end comfort and service as that is what Cavala resorts offer at least and the company

cannot afford to change its image from being a quality high end service provider to a

mediocre organisation. However, it can also provide similar services at smarter prices for

people looking for simpler and comfortable facilities and services.

BEHAVIORAL:

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In terms of product usage, the company will look to attending to clients who require stays as

per their requirements, whether it is just for a night or even a week’s stay. The company will

target audience looking to come during the winters as it is the best season of the year and the

temperature is best suited for hanging out in beaches.

MARKETING MIX

PRODUCT

The product that Cavala resort is offering is services in the hospitality industry that is targeted

at customers in the UK. The product is a high and medium end services that includes stay at

our premium hotel which includes a classy in-house restaurant and attached bar catering to all

the needs and requirements of the customers.

PRICE

The service that is offered by Cavala resorts is set at medium and high prices. The resort has

been catering to an audience that appreciates good facilities and this inevitably requires

moderate and high pricing and cannot go below a particular level. Premium service is what

the company stands for this cannot be bargained with as it would ruin the image of the

company and affect future business.

PLACE

The place is one of the most vital aspects of the resort as it is placed on Baga beach which is

one of the most important and popular beaches of Goa. The placing of the hotel is one of its

USP and it is among the most important factors used for the marketing of the resort.

PROMOTION

Promotion is one of the most important aspects when it comes to the tourism industry.

Without proper promotion any resort or hotel or destination cannot find popularity or

acceptance amongst a global crowd. Cavala resort is being promoted among the UK audience

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with the help of online promotional that would include special offers and season specials.

Promotion would also be done with the help of association with international travel agents.

PEOPLE

Every person involved with Cavala resorts has something to give and something to take from

the organisation. The teamwork and the perseverance of the entire group is what have made

Cavala resort one of the most sought after resorts in Goa. The company’s policy is to treat

Cavala resort as home and members of the organisation as the family. Even the customers are

treated as part of the extended family and this has found its place in the hearts of people and

makes them visit the resort more than once

PROCESS

Achieving targets is not an easy task. It is a carefully planes out process that is the effect of a

lot of subtle precise activities right from planning to decision making to implementing and

each and every step is given a lot of thought and a high level of teamwork goes into making

the company a success.

PHYSICAL EVIDENCE

No company can be successful unless what it portrays and what it markets is what it is in real.

The company projects itself as being amongst the most popular resorts with high standards of

service maintained at every level and unless this is what the company has to offer to the

clients it cannot hope for success. The turnover and the general popularity of the company

indicate what it provides as a form of physical evidence.

IMPLEMENTATION

The company aims at using the market segmentation details and putting it to use by targeting

the audience specified according to it. The primary mode of marketing will be through the

company website which will describe the offers available to tourists during different seasons.

The target audience will also be approached with the help of travel agents in the UK who the

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company are associated with. Magazines and newspapers are also an important mode for

marketing and both Indian as well as UK magazines will be used as marketing options to

reach foreign clients. Once an audience is approached through either option, they would be

contacted through emails or phone calls and services would be provided according to specific

requirements.

BUDGET

Any marketing activity requires a substantial budget to meet requirements. However, since

the target market here is clients in the UK, the most significant option would be through

online activities which are the most cost effective approach for the company. The budget

details are as follows:

OPERATIONS COSTS (USD)

WEBSITE MAINTENANCE

2500

MARKETING THROUGH UK PORTALS 6500

ASSOCIATION WITH LOCAL TRAVEL AGENTS 5% COMMISION

MISCELLENEOUS

5000

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MARKETING THROUGH PRINT MEDIA 10000

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REFERENCES

Beerli, A., Martin, J.D. (2004), "Factors influencing destination image", Annals of Tourism

Research, Vol. 31 No.3, pp.657-81.

Chaudhary, M. (2000), "India's image as a tourist destination – a perspective of foreign

tourists", Tourism Management, Vol. 21 No.3, pp.293-7.

Das, D., Mohapatra, P.K.J., Sharma, S.K., Sarkar, A. (2007), "Factors influencing the

attractiveness of a tourist destination: a case study", Journal of Services Research, Vol. 7

No.1, pp.103-34.

Ecthner, C.M., Ritchie, B. (2003), "The meaning and measurement of destination image",

The Journal of Tourism Studies, Vol. 14 No.1, pp.37-48.

Gallarza, M.G., Saura, I.G., Garcia, H.C. (2002), "Destination image: towards a conceptual

framework", Annals of Tourism Research, Vol. 29 No.1, pp.56-78.

Jenkins, O.H. (1999), "Understanding and measuring tourist destination images",

International Journal of Tourism Research, Vol. 1 No.1, pp.1-15.

Tasci, A.D.A., Gartner, W.C. (2007), "Destination image and its functional relationships",

Journal of Travel Research, Vol. 45 No.4, pp.413-25.

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