IndexSegmentation and Positioning StrategyPricing StrategyPrice Skimming StrategyCompetitive StrategySales Package StrategyDistribution StrategyPromotions StrategyAdvertising StrategyRecommendations and TimelineSWOT Analysis Strength Flight Center Travel Group (FCTG) is considered one of the best travel service provider for travelers all over the world. We are expanding our market in Nepal, which is a major travel destination for people around the world, so FCTG has numerous advantages and strengths that will be helpful in penetrating the new market. The strengths of Flight Center can be listed as follows: It can merge with existing successful travel agents or acquire them and improve the company's operations by streamlining the process and services through the use of technology and efficient manpower. The use of technology and systems in travel operations will bring consistency, quality and reliability in services and products which will enable the FCTC to achieve more in less time. Highly trained manpower such as tour guides and expedition guides are available in Nepal at low cost. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Expanding business in Nepal can have a good long-term return on investment because travel and tourism has always been a profitable business in Nepal. Tourism is one of Nepal's largest industries, so long-term growth in revenues and returns can be expected. Some of the factors that FCTG should consider and improve when establishing its operations in Nepal are given below: Research and development on products and services are difficult to carry out as fewer facts and figures about travel and tourism are available in Nepal. Lack of data and facts can result in a product or service being tested every time it is brought to market, which can increase the overall cost. The organizational system and technology used by FCTG may be new to people over there, so it may be difficult to transition from your current employment status to a new one. More investments in advanced technology and systems are needed to streamline operations and work process as there is less use of advanced systems and technologies in travel and tourism. Return on investment and profitability are difficult to achieve in the short term as we need to invest more in resources, technology and infrastructure when starting a business in Nepal. The growth rate of international tourists with higher disposable incomes is high, so FCTG can serve this type of customers by selling travel packages to increase market share and customers. The growth of technology users is emerging at a rapid pace, so the number of people using technology is increasing. So, as a travel company that focuses on technology to integrate business processes and operations, we can benefit the most compared to other competitors. Marketing travel products and services is really simple, so growth in terms of sales and market positioning can be easily achieved if we focus on developing unique and clearly defined products and services. The change in trends of potential domestic customers also brings the possibility of entering a new market which gives FCTG the opportunity to diversify product categories with new markets and product segments. The year 2020 will be considered as the Nepal Tourism Year 2020 and Nepal is expected to attract around 2 millionforeign tourists (Nepali Times, 2017). Travel agencies like FCTG can take this opportunity to enter a new emerging market and minimize risks and uncertainties as the flow of customers can be seen during these periods. FCTG's business model or workflow can be easily imitated by other competitors because the travel industry in Nepal is emerging at a rapid pace. Other competitors may provide low-quality travel packages at a cheaper rate than FCTG, which can pose a serious threat as FCTG will have a huge investment in the industry compared to other competitors. Instability in political rules and regulations could also pose a threat to certain products or services. FCTG may be exposed to currency fluctuations as Nepal's currency index is relatively low. Additionally, operating costs tend to be high for a period of time after establishment, so return on investment may not be achieved in a short period of time. Nepal is a country prone to natural calamities and disasters, so it has always been a major environmental threat to the travel and tourism industry. Since FCTG is entering an emerging market, we need to focus on certain aspects of the product so that we can connect the product with our potential customers. Some of the strategies that FCTG can adopt for products to reach potential customers are explained below: Personalized Customer Engagement A travel product must have a personalized customer engagement feature. It helps strengthen customer relationship by providing better engagement with customers. As we interact with customers and offer them the opportunity to personalize their travel vacations, we can also learn about customer behaviors and trends which will be useful for future references to create product categories and segment new target markets. Omnichannel environment While providing personalized products for customers, we must also ensure that we connect our customers through the right channels and environment. Since we are a travel agency, our customers are not geographically determined and we need to be able to serve customers residing in other countries from Nepal. Therefore, a multi-channel approach is needed to improve the user experience so that they can book or purchase travel packages, tickets regardless of where they are coming from or what device they are using through the use of advanced systems and technologies. Omni-Channel helps customers improve their experience and as a point of sale it is also necessary to find the most suitable approach for a traveler. Creating Customer-Specific Products There is a need to change the supplier-driven approach to creating customer-based products in order to penetrate the Nepal market. “The difference is that a retailer controls their own inventory and knows their customers intimately, while an agent represents wholesalers and airlines” (Stanley, General Manager – FCTG). Therefore FCTG must establish itself as a travel outlet by selling travel products and services to understand the needs and demands of customers. This will have a competitive advantage over other competitors since they work as agents and we can focus on launching unique products and services. Segmentation and Positioning Strategy The travel and tourism industry has a very large and diverse market, so it is necessary to segment the market to understand consumer trends and behavior. Market segmentation for FCTG can be done by understanding demographics, behavioral patterns, andtrends. Market segments for FCTG can be created from one or a combination of the following: Demographics Our market segment will be characterized by people between the ages of 24 and 65 as this group of people has a lot of disposable income. People between the ages of 24 and 35 can be considered for adventure travel and expeditions as these people are young and ready for adventure, while people between the ages of 35 and 60 can be considered for trips adventure and luxury travel. Our market segment will not be limited by geography because as a travel company we have a very diversified market. Therefore, our main target consumers will be everyone who is interested in traveling to Nepal, regardless of where they come from. They can be both international and domestic tourists. Behavioral model FCTG should focus on those market segments where the consumer is looking for leisure travel, adventure travel and expeditions, wildlife excursions. We can offer a wide range of products in these categories with different price ranges. Therefore, we can benefit the most by focusing on the market where consumers want to explore unique destinations with adventures and expeditions. Status Since travel and vacations are fun activities, we should focus on those consumers who have higher disposable income. Consumers willing to travel and with high disposable income can be our target audience. People willing to spend more for a holiday with more personalized packages will be our target customers. Pricing StrategyTravel and tourism products are unique and rarely identical to each other as travel holidays and packages can be customized to the needs of the consumer. So basically, the pricing strategy for FCTG will be based on the consumers we are targeting and the marketing strategy we have set up. For example: A customer looking for luxury travel will be charged a higher price for a product than a customer looking for backpacking trips. Some of the pricing strategies that FCTG can adopt are explained below: Price Skimming Strategy The markup pricing strategy identifies all costs associated with travel such as transportation, hotel rates, resources used, time spent, and so on. This type of pricing strategy ensures that FCTG can make a profit through every sale of travel products to its customers. Price Cutting Strategy / Competitive Strategy Nepal travel business is a seasonal business where there are peak times for travelers visiting Nepal. Therefore, during the off-season, FCTG must use a bearish pricing strategy to remain competitive. FCTG can offer holiday deals and packages to domestic tourists at a low price in situations where the cost during the low season usually remains low as it is not a favorable period for travellers. Package Bidding Strategy Consumers will be able to customize their travel vacations, therefore, you can set the total cost of an entire package that includes airfare, hotel, tours and other activities. This pricing strategy also helps meet the needs of niche markets. For example: Tourists interested in rafting, bungy jumping, canyoning and zip lines can be offered packages. This type of pricing strategy is also suitable for domestic tourists. Value-Added Pricing Strategy Value-added pricing can have a competitive advantage by improving the perceived value of a travel product. This type of pricing strategyit is suitable for luxury travel as customers tend to spend their holidays or trips exquisitely. Distribution Strategy The distribution strategy for travel and tourism products offered by FCTG in Nepal will be implemented primarily through intensive distribution, selective distribution strategy and direct selling. The type of product we sell is intangible, so the best means of distribution will be the Internet. The strategy that can be used by FCTG is explained below: Direct distribution is the type of distribution strategy where the product sales are made directly to the customers. FCTG may directly sell travel products and services to customers through their outlets, online applications, websites, e-commerce or computerized reservation systems. This distribution strategy will help us take total control of the market as we interact directly with customers. Since FCTG is a company strongly focused on the use of technology and advanced systems, we can benefit from direct sales via the Internet. Frost (2004) stated that technological change has changed the way of interaction and trade between customers and the travel agency. Furthermore, Frost (2004) also identified telephone communications, use of credit cards, call centers and customer loyalty program as the four factors other direct selling methods that the tourism industry can use to facilitate direct selling and interacting with the customer. Intensive distribution is a distribution strategy where all possible sources of distribution channels are used for product distribution. All forms of distribution can be used to distribute products, such as using local travel agents in Nepal, hotels, visitor information centres, e-commerce, websites and social media. Intensive distribution strategies may be most beneficial during the off-season, when business is low and we can offer packages and vacations to domestic customers at a low price. Selective Distribution Nepal is geographically a small country, so we can only set up a small number of outlets in selected areas and cities to distribute the product. Promotional Strategy With the emerging use of technology in the tourism industry, it is easier to share information about products and services. Some of the means of promotion that FCTG can use in Nepal are explained below: Public Relations Strategy Public relations is the most important part of tourism marketing as it is defined as “promoting better understanding between operators and their audiences” (Roberts , 1993 ). The tourism industry is competitive so it is necessary to maintain public relations with consumers so that they turn into loyal customers. Public relations can be built through direct sales, internet, social media. Awareness of new opportunities within tourism distribution channels is essential for FCTG to build public relations with customers and remain competitive. Advertising Strategy Awareness about FCTG travel products and services can be created through Facebook ads, Google ads, Youtube ads, Instagram where you can choose the target market and audience to show the advertisement to. We can create our audiences based on geography, demographics and interests to whom we can reach information about our products. Lee (2013) states that over the past 4 years, the biggest change in tourism distribution channels has been social media linking to online travel agencies and supplier websites. Therefore social media such as Facebook,.