Harvard Case - Makoye Safaris: Marketing Tanzanian Safari Tours
"Makoye Safaris: Marketing Tanzanian Safari Tours" Harvard business case study is written by Makarand Gulawani, Liliane Pasape. It deals with the challenges in the field of International Business. The case study is 15 page(s) long and it was first published on : Jan 29, 2024
At Fern Fort University, we recommend that Makoye Safaris adopt a multi-pronged strategy to expand its reach and solidify its position as a leading Tanzanian safari tour operator. This strategy will focus on leveraging digital marketing, building strategic partnerships, and enhancing the customer experience. It will also involve a focus on sustainability and responsible tourism practices to attract environmentally conscious travelers.
2. Background
Makoye Safaris is a family-owned business that has been operating in Tanzania for over 20 years. The company offers a range of safari tours, from budget-friendly options to luxury experiences. However, Makoye Safaris is facing increasing competition from larger, more established tour operators, both domestic and international. The company recognizes the need to expand its market reach and attract a wider customer base to ensure its long-term sustainability.The main protagonists of the case study are the Makoye family, who are the owners and operators of the business. They are passionate about showcasing the beauty of Tanzania and providing exceptional experiences for their customers. However, they are also aware of the challenges facing the tourism industry and the need to adapt to changing market conditions.
3. Analysis of the Case Study
To analyze Makoye Safaris' situation, we can use the Porter's Five Forces framework:
- Threat of New Entrants: The threat of new entrants is relatively high due to the ease of setting up a safari tour company in Tanzania. However, established companies like Makoye Safaris have a competitive advantage due to their experience, reputation, and existing relationships with local communities.
- Bargaining Power of Buyers: The bargaining power of buyers is moderate. Tourists have many options for safari tours, and they can easily compare prices and services online. However, Makoye Safaris can differentiate itself by offering unique experiences and personalized service.
- Bargaining Power of Suppliers: The bargaining power of suppliers is relatively low. Makoye Safaris relies on local suppliers for services such as transportation, accommodation, and guides. However, there are many suppliers available, and Makoye Safaris can negotiate favorable terms.
- Threat of Substitute Products: The threat of substitute products is moderate. Tourists can choose to visit other destinations in Africa or engage in alternative forms of tourism, such as beach vacations or cultural tours. However, Tanzania's unique wildlife and natural beauty make it a highly desirable destination for safari enthusiasts.
- Competitive Rivalry: Competitive rivalry is high, with both domestic and international tour operators competing for market share. This rivalry is further intensified by the growing popularity of online travel agencies (OTAs) and the increasing use of social media for travel planning.
SWOT Analysis:
Strengths:
- Strong reputation and brand recognition in Tanzania
- Experienced and knowledgeable staff
- Unique and diverse tour offerings
- Strong relationships with local communities
Weaknesses:
- Limited marketing budget
- Lack of online presence and digital marketing expertise
- Limited international reach
- Dependence on word-of-mouth marketing
Opportunities:
- Growing demand for sustainable and responsible tourism
- Increasing popularity of Tanzania as a safari destination
- Expanding use of technology and digital marketing
- Potential for strategic partnerships with international tour operators
Threats:
- Increasing competition from larger tour operators
- Economic instability and political uncertainty in Tanzania
- Environmental concerns and the impact of climate change
- Fluctuations in exchange rates
4. Recommendations
To address the challenges and capitalize on the opportunities, Makoye Safaris should implement the following recommendations:
1. Enhance Digital Marketing Strategy:
- Develop a user-friendly website: The website should be visually appealing, mobile-friendly, and provide comprehensive information about tour offerings, pricing, and customer testimonials.
- Utilize social media platforms: Create engaging content on platforms like Facebook, Instagram, and YouTube to showcase the beauty of Tanzania and promote Makoye Safaris' unique experiences.
- Implement search engine optimization (SEO): Optimize the website and social media content for relevant keywords to improve search engine rankings and attract potential customers.
- Utilize online advertising platforms: Run targeted advertising campaigns on Google Ads and social media to reach a wider audience.
- Develop a content marketing strategy: Create informative blog posts, articles, and videos about wildlife, culture, and responsible tourism in Tanzania to attract and engage potential customers.
2. Build Strategic Partnerships:
- Collaborate with international tour operators: Partner with established tour operators in key markets like Europe, North America, and Asia to expand Makoye Safaris' reach and access a wider customer base.
- Form strategic alliances with local businesses: Partner with hotels, lodges, and other tourism-related businesses to offer package deals and create a seamless customer experience.
- Engage with travel bloggers and influencers: Collaborate with travel bloggers and influencers to promote Makoye Safaris' tours and reach a targeted audience.
3. Enhance Customer Experience:
- Offer personalized services: Provide tailored itineraries and experiences based on customer interests and preferences.
- Invest in customer service training: Ensure that all staff members are knowledgeable, friendly, and provide exceptional customer service.
- Gather customer feedback: Implement a system for collecting customer feedback and using it to improve services and address any concerns.
- Offer unique and memorable experiences: Develop new tour offerings that showcase the unique beauty and culture of Tanzania, such as wildlife photography tours, cultural immersion experiences, and community-based tourism projects.
4. Embrace Sustainability and Responsible Tourism:
- Implement sustainable practices: Reduce the company's environmental footprint by using eco-friendly vehicles, minimizing waste, and promoting responsible tourism practices.
- Support local communities: Partner with local communities and businesses to ensure that tourism benefits the local economy and environment.
- Promote conservation efforts: Educate customers about the importance of wildlife conservation and encourage them to support conservation initiatives.
- Obtain certifications: Seek certifications such as Fair Trade Tourism or Green Globe to demonstrate the company's commitment to sustainability.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Makoye Safaris' core competencies in providing exceptional safari experiences and its mission to showcase the beauty of Tanzania.
- External customers and internal clients: The recommendations are designed to attract and retain customers by offering personalized experiences, promoting sustainability, and providing excellent customer service. The recommendations also consider the needs of internal clients, such as staff members, by providing training and opportunities for professional development.
- Competitors: The recommendations are designed to differentiate Makoye Safaris from competitors by leveraging digital marketing, building strategic partnerships, and embracing sustainability.
- Attractiveness ' quantitative measures if applicable: While it is difficult to quantify the impact of these recommendations, they are expected to increase revenue, market share, and brand awareness. The recommendations are also expected to improve customer satisfaction and loyalty.
- Assumptions: The recommendations are based on the assumption that the tourism industry in Tanzania will continue to grow and that there will be increasing demand for sustainable and responsible tourism.
6. Conclusion
By implementing these recommendations, Makoye Safaris can successfully expand its market reach, solidify its position as a leading Tanzanian safari tour operator, and ensure its long-term sustainability. The company can leverage digital marketing, strategic partnerships, and a focus on sustainability to attract a wider customer base and provide exceptional experiences.
7. Discussion
Other alternatives not selected include:
- Merging with a larger tour operator: This option could provide access to resources and expertise, but it could also lead to a loss of control and brand identity.
- Focusing solely on luxury tours: This option could target a niche market but could also limit the company's growth potential.
- Expanding into other tourism sectors: This option could diversify the company's offerings but could also require significant investment and expertise.
Risks associated with the recommendations include:
- Failure to adapt to changing market conditions: The tourism industry is constantly evolving, and Makoye Safaris needs to be agile and responsive to changes in customer preferences and market trends.
- Dependence on technology: The company's success will depend on its ability to effectively utilize digital marketing and technology.
- Competition from larger tour operators: The company will need to continuously innovate and differentiate itself to compete with larger, more established tour operators.
Key assumptions include:
- Continued growth of the tourism industry in Tanzania: The recommendations are based on the assumption that the tourism industry in Tanzania will continue to grow.
- Increasing demand for sustainable and responsible tourism: The recommendations are based on the assumption that there will be increasing demand for sustainable and responsible tourism.
8. Next Steps
To implement the recommendations, Makoye Safaris should take the following steps:
- Develop a detailed implementation plan: This plan should outline the specific actions to be taken, the timeline for implementation, and the resources required.
- Allocate budget and resources: The company should allocate sufficient budget and resources to support the implementation of the recommendations.
- Hire additional staff: The company may need to hire additional staff with expertise in digital marketing, customer service, and sustainability.
- Monitor progress and make adjustments: The company should regularly monitor the progress of the implementation and make adjustments as needed.
By taking these steps, Makoye Safaris can successfully implement its strategic plan and achieve its goals of expanding its market reach, solidifying its position as a leading Tanzanian safari tour operator, and ensuring its long-term sustainability.
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Case Description
Makoye Safaris, a jungle safari tour company based in Tanzania founded by Vicent Makoye, offered fully guided, safe, and environmentally friendly tours largely to international tourists. The tours were private, custom designed, and flexible and included airport pick-up and drop-off, accommodation, transportation, and three meals daily. Makoye wanted the company to grow and acquire a larger market share. However, in 2020, the COVID-19 pandemic spread worldwide, and Tanzania's tourism sector went into a downturn. Although the number of tourists started to increase in 2021, Makoye Safaris needed a good marketing plan to achieve its target of doubling the number of international tourists it served by 2025.
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