Pricing, Promotions Pricing, Promotions and Salesand SalesPresentation №3

Manjiri Awachat Elena Menk

Hrishikesh Munj

According to the survey of the Russian Tour Operator Association:No Tour Operator Average Mark

1 Pac Group 4.38

2 ICS Travel Group 4.36

3 Ascent Travel 4.33

4 Wind Rose 4.31

5 VKO Travel 4.22

6 Neva 4.17

7 Tris- T 4.13

8 DSBW 4.09

9 Natalie Tours 3.97

10 Danco 3.95

11 Intourist 3.94

12 Roman Holidays 3.94

13 Jet Travel 3.89

14 Holiday M 3.69

Pac Group is #1 customers’ choice (Rating company “Super Brand Russia”, 2011)

Pac Group is one of 37 Russian Tour Operators with a financial assurance of more than 100 million rubles

PAC GROUP

Table 1 Russian Tour Operator Association: The list of tour operators with the financial assurance of 100 million rubles and more, 2012

CompetitorsNatalie Tours Ascent Travel TEZ tour

Since 199220 travel destinations

Since 199216 travel destinations

Since 199417 travel destinations

2011 number of tourists served = 650 thousand = $750 million

2011 number of tourists served = 100 thousand$170 million

2011 number of tourists served = 500 thousand =$ 550 million

Budget: R15 000 = $ 480Luxury: R 80 000 = $2550

Budget: R 17 000 = $ 540Luxury: R 65 000 = $ 2100

Budget: R 12 000 = $ 380Luxury: R 72 000 = $2300

PAC GROUPPrice Range:Budget: R 9 500 = $ 300Luxury: R 320 000 = $ 10 000

Marketing Objectives:

1.Market-share Leadership – Best offers for different market segments

2.Product-Quality leadership - Best quality of the service for our customers

3.Competitor Leadership - Number 1 company in the Italian Destination

Pricing Approach:

Value Based pricing approach = “Unique Experience for the Best Price”

Organizational ConsiderationCorporate Level

Regional Manager and Italian Department manager

General ManagerYtkyn Iliya

PresidentSokonin Alexander

Italian Department Manager

Kapshai Polina

Italian Department Supervisor

Dmitrii Kopshai

Sustainable Core ProductsAgricultural Tours Spiritual Tours Adventure tours Local Culture

Tours

Thematic City Tours

Shopping Tours Wellness Tours Sport Tours

Pricing Strategies

•Prestige Pricing: Sports tours, Shopping Tours

• Market Penetration pricing: Spiritual tours, thematic City Tours, Agricultural Tours, Local culture Tours

• Promotional Pricing: Adventure Tours, Wellness Tours

Overall Strategy is to introduce Discriminatory Pricing, depending upon the success of the ten sustainability products

Distribution ChannelsPush Strategy:Booking through Company’s website or 11 representative offices in Russia

Distribution Channels

Pull Strategy:A wide network of Retail Agencies, located in different cities of Russian Federation (Rosa Mira – Moscow, Voyage – Chelyabinsk, etc) or through retail agency’s web -site

Selling Techniques:

Up-selling = 10 day trip vs 7 day trip, BB package vs HB package

Cross –Selling = tours + air tickets and transfers, tours + excursions + guides, tours + equipment + passes

Special packages = Family package (2 adults + 2 children), Friends package (5 people), etc.

Loyalty Program = 3 Levels:

Regular Client = after 3 trips = 3 % discount

Favorite Client = after 7 trips = 7 % discount

Golden Client = after 15 trips = 15 % discount

Personal Selling

PromotionBudget Strategy: Objective and Task Oriented Approach

Promotional Mix Strategy:Advertising:

1. TV Commercials (30 -45 second clips for each of new tours )2. Place ads in newspapers and magazines (National Geographic: Traveler,

Voyage, Okhota, FotoTravel )3. Signs and logos : logo and slogan on the company business cards ,

promotional materials , company brochures, company vehicles.4. Giveaways : logo t - shirts, hats, pens, etc.5. Direct marketing: E - mailing – personal updates about best offers and

new products and services

Online medias

1.Company website - sales promotions, best offers, tour of the week

2.Facebook - company profile: company’s description , recent achievements , new tours , pictures of customers and reviews

3.Twitter - twitter account , blogs , customer comments

4.YouTube - company’s power point presentations to advertise new tours, company’s informative videos, tour videos or even videos taken by our customers.

5.Printable page - online adds on the sites of our where consumers can take print of informative part (Google maps)

Public Relations Strategy

• Tourism Conferences and Fairs ( International tourism fair “Leisure”, Extremex (Extreme World Expo Show), Conference “SPA & Health”, MIBEXPO Russia, “Expotravel”

•TV Programs, devoted to travelling – special PAC Group issues (“Traveler's Notes” (Neputevye Zametky), “Around the World”, “Searching Adventures”, etc)

•Sponsor Alliance – 2% from each purchase of a new sustainable tour will be sponsored to non-governmental charitable foundation, created to help children with cancer, hematological and other serious diseases “” Gift a Life”

• Customer’s Participation 1. On-line quizzes (101 question about Italy)2. Video competition “Mia Italia” or “the best vacation of my life”3. On – line journal on Facebook or official website “My View”

Public Relations Strategy

Company – Customer Relations:•Quality Control Service•24 hour Support Service

THANK FOR YOUR ATTENTION!!!

ANY QUESTIONS???

References

Pac Group: Official information, Retrieved October 29, 2012, from www.pacgroup.ru

Natalie Tours: Official information, Retrieved November 2, 2012, from http://www.natalie-tours.ru/

Ascent travel: Official Information, Retrieved November 2, 2012, from http://www.ascent-travel.ru/msc

ExpoCom: Expotravel Exhibition, Retrieved 6 November, 2012, from http://expo-com.info/index.php/vistavka-expotravel-2012.html

Mibexpo: International Fair and Conference, Retrieved November 7, 2012, fromhttp://www.mibexpo.ru

Charitable Foundation: Podari Zhizn, Retrieved November 8, 2012, from http://podari-zhizn.ru/main

First channel: Neputevye Zametki, Retrieved November 8, 2012, from http://www.1tv.ru/projects/si=31

International Tourism Fair: Leisure 2012, retrieved November 5, 2012, from http://www.tourismexpo.ru

References

TezTour: Official Information, Retrieved November 2, 2012, from http://www.tez-tour.com

V Poiskah Priklucheniy: Video clips, Retrieved November 9, 2012, from http://video.sibnet.ru/alb14979-V_poiskah_priklyucheniy_s_Mihailom_Kojuhovyim/

Vokrug Sveta: Telejoutral, Retrieved November 9, 2012, from http://www.vokrugsveta.ru

Russian Tour Operator Association: The list of tour operators with the financial assurance of 100 million rubles and more, Retrieved October 28, 2012 from http://reestr.russiatourism.ru

Super Brand: Tour Operators. Rating of the best tour operators: Italian destination, Retrieved November 2, 2012 from http://www.superbrend.ru/italy.html