Harvard Case - Exotic Expeditions Tanzania Ltd.: Competing in Highly Saturated Markets
"Exotic Expeditions Tanzania Ltd.: Competing in Highly Saturated Markets" Harvard business case study is written by Nicole R.D. Haggerty, Serena Virani, Caroline Wu, Victoria Stopar, Fatima Haq. It deals with the challenges in the field of Marketing. The case study is 8 page(s) long and it was first published on : Jan 21, 2020
At Fern Fort University, we recommend that Exotic Expeditions Tanzania Ltd. (EETL) adopt a multi-pronged strategy focused on differentiation, digital marketing, and customer experience to compete in the highly saturated safari tourism market. This strategy involves leveraging EETL's unique strengths, including its local expertise, personalized service, and commitment to sustainable tourism, to create a strong brand identity and attract a loyal customer base.
2. Background
Exotic Expeditions Tanzania Ltd. (EETL) is a small safari tour operator facing intense competition in a rapidly growing market. The company offers a range of safari packages, from budget-friendly options to luxury experiences. EETL's founder, John, is passionate about conservation and providing authentic experiences for travelers. However, the company struggles to stand out from competitors and attract new customers.
The main protagonists of the case study are John, the founder and owner of EETL, and his team of experienced guides and staff. The case study highlights their challenges in navigating a competitive market and their desire to grow the business while maintaining their commitment to sustainability.
3. Analysis of the Case Study
To analyze the case study, we will utilize a combination of frameworks, including:
- SWOT Analysis: This framework will help us identify EETL's internal strengths and weaknesses, as well as external opportunities and threats.
- Porter's Five Forces: This model will assess the competitive landscape within the safari tourism industry.
- Marketing Mix (4Ps): This framework will guide us in developing a comprehensive marketing strategy for EETL.
- Customer Journey Mapping: This tool will help us understand the customer experience from initial interest to post-trip satisfaction.
SWOT Analysis:
- Strengths:
- Local Expertise: EETL possesses deep knowledge of Tanzania's wildlife, culture, and geography.
- Experienced Guides: The company employs experienced and passionate guides who provide personalized service.
- Commitment to Sustainability: EETL prioritizes responsible tourism practices, appealing to environmentally conscious travelers.
- Strong Relationships with Local Communities: EETL fosters partnerships with local communities, contributing to their economic development.
- Weaknesses:
- Limited Marketing Budget: EETL lacks significant resources for extensive marketing campaigns.
- Lack of Brand Awareness: The company struggles to stand out from the competition and build brand recognition.
- Limited Online Presence: EETL's website and social media presence are underdeveloped.
- Reliance on Word-of-Mouth: The company primarily relies on referrals and word-of-mouth marketing, limiting its reach.
- Opportunities:
- Growing Demand for Safari Tourism: The global tourism industry is experiencing a surge in demand for unique travel experiences.
- Increased Interest in Sustainable Tourism: Travelers are increasingly seeking ethical and sustainable travel options.
- Digital Marketing Channels: EETL can leverage digital marketing platforms to reach a wider audience.
- Partnerships with Travel Agencies: Collaborating with travel agencies can expand EETL's distribution network.
- Threats:
- Intense Competition: The safari tourism market is highly competitive, with numerous established players.
- Economic Fluctuations: Global economic downturns can impact travel spending and affect demand.
- Environmental Concerns: Climate change and environmental degradation pose risks to the wildlife and ecosystems that attract tourists.
- Negative Media Coverage: Negative news about tourism impacts can deter potential travelers.
Porter's Five Forces:
- Threat of New Entrants: The barrier to entry in the safari tourism market is relatively low, with new operators entering the market frequently.
- Bargaining Power of Suppliers: Suppliers, such as lodges, transportation providers, and local communities, have moderate bargaining power.
- Bargaining Power of Buyers: Tourists have moderate bargaining power, with numerous options available and the ability to compare prices online.
- Threat of Substitute Products: Other forms of tourism, such as beach vacations or cultural tours, can act as substitutes for safari experiences.
- Rivalry Among Existing Competitors: The safari tourism market is highly competitive, with numerous established players vying for market share.
Marketing Mix (4Ps):
- Product: EETL needs to differentiate its product offerings by focusing on unique experiences and personalized service. This could include offering specialized itineraries, exclusive access to remote locations, or tailored activities based on customer interests.
- Price: EETL should adopt a competitive pricing strategy, considering both value for money and the target market. Offering flexible payment options and package deals can attract budget-conscious travelers.
- Place: EETL should explore new distribution channels beyond its website, such as partnerships with travel agencies, online travel platforms, and social media influencers.
- Promotion: EETL needs to invest in a comprehensive marketing strategy that leverages both traditional and digital channels. This could include targeted advertising, content marketing, social media engagement, and public relations.
Customer Journey Mapping:
EETL should map the customer journey from initial research to post-trip feedback. This will help identify touchpoints where EETL can enhance the customer experience, build loyalty, and encourage positive reviews.
4. Recommendations
To compete effectively in the highly saturated safari tourism market, EETL should implement the following recommendations:
1. Differentiation and Brand Positioning:
- Develop a Unique Value Proposition: EETL should clearly articulate its unique selling proposition (USP) that sets it apart from competitors. This could focus on its local expertise, personalized service, commitment to sustainability, or specialized itineraries.
- Craft a Compelling Brand Story: EETL should develop a compelling brand story that resonates with its target audience. This story should highlight the company's passion for conservation, its commitment to authentic experiences, and its focus on responsible tourism.
- Build a Strong Brand Identity: EETL should create a consistent brand identity across all touchpoints, including its website, marketing materials, social media presence, and customer interactions. This will help reinforce its brand message and build recognition.
2. Digital Marketing Strategy:
- Optimize Website and Online Presence: EETL should invest in a professional website that showcases its services, testimonials, and customer reviews. The website should be user-friendly, mobile-responsive, and optimized for search engines (SEO).
- Leverage Social Media: EETL should actively engage on social media platforms relevant to its target audience. This could include sharing captivating photos and videos, running contests and giveaways, and responding to customer inquiries promptly.
- Implement Content Marketing: EETL should create valuable content that educates and inspires potential customers. This could include blog posts, articles, videos, and infographics about Tanzania's wildlife, culture, and responsible tourism.
- Utilize Paid Advertising: EETL can utilize targeted online advertising campaigns to reach specific demographics and interests. This could include Google Ads, Facebook Ads, and Instagram Ads.
3. Customer Experience Enhancement:
- Personalize Service: EETL should provide personalized service to each customer, tailoring itineraries and activities based on their interests and preferences. This could include offering pre-trip consultations, personalized recommendations, and dedicated support throughout the journey.
- Foster Customer Relationships: EETL should build strong relationships with its customers by providing excellent service, responding to feedback, and nurturing loyalty. This could include offering exclusive discounts, loyalty programs, and personalized communication.
- Encourage Reviews and Testimonials: EETL should actively encourage customers to leave reviews and testimonials on its website, social media, and online travel platforms. Positive reviews can build trust and credibility.
4. Strategic Partnerships:
- Collaborate with Travel Agencies: EETL should explore partnerships with travel agencies and tour operators to expand its distribution network and reach a wider audience.
- Partner with Local Communities: EETL should continue to foster partnerships with local communities, supporting their economic development and promoting responsible tourism.
- Engage with Influencers: EETL can collaborate with travel bloggers, photographers, and other influencers to promote its services and reach new audiences.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with EETL's core competencies, such as its local expertise, personalized service, and commitment to sustainability. They also support the company's mission to provide authentic and responsible travel experiences.
- External Customers and Internal Clients: The recommendations address the needs of both external customers, who seek unique and memorable safari experiences, and internal clients, who strive to provide exceptional service and contribute to the local community.
- Competitors: The recommendations aim to differentiate EETL from competitors by focusing on its unique strengths and leveraging digital marketing channels to reach a wider audience.
- Attractiveness: The recommendations are expected to improve EETL's profitability by increasing customer acquisition, enhancing customer loyalty, and optimizing marketing spend.
6. Conclusion
By implementing these recommendations, Exotic Expeditions Tanzania Ltd. can effectively compete in the highly saturated safari tourism market. By leveraging its unique strengths, embracing digital marketing, and prioritizing customer experience, EETL can establish a strong brand identity, attract a loyal customer base, and achieve sustainable growth.
7. Discussion
Other alternatives not selected include:
- Focusing solely on budget-friendly tours: This strategy could attract a large volume of customers but may compromise EETL's commitment to quality and sustainability.
- Expanding into other tourism sectors: This could diversify EETL's offerings but may require significant investment and expertise in new areas.
The key risks associated with these recommendations include:
- Increased competition: The safari tourism market is dynamic, and new competitors may emerge.
- Economic fluctuations: Global economic downturns can impact travel spending and affect demand for safari experiences.
- Technological advancements: EETL needs to adapt to evolving technologies and digital marketing trends.
8. Next Steps
To implement these recommendations, EETL should take the following steps:
- Develop a detailed marketing plan: This plan should outline specific marketing objectives, target audiences, strategies, tactics, and budget allocations.
- Invest in website development and optimization: EETL should hire a web developer to create a professional and user-friendly website.
- Develop a social media strategy: This strategy should define EETL's social media presence, content calendar, and engagement plan.
- Train staff on customer service and digital marketing: EETL should invest in training its staff to provide exceptional customer service and utilize digital marketing tools effectively.
- Monitor and evaluate results: EETL should regularly track key performance indicators (KPIs) to measure the effectiveness of its marketing efforts and make adjustments as needed.
By taking these steps, Exotic Expeditions Tanzania Ltd. can position itself for success in the competitive safari tourism market and achieve its goals of sustainable growth and customer satisfaction.
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Case Description
Based in Mwanza, Tanzania, family-owned and operated Exotic Expeditions Tanzania Ltd. was a leading tour operator in East Africa. The company was purchased in December 2014 and experienced considerable success the following year. The owners felt that there was an opportunity for growth within the company and believed that the best way to realize this growth was to improve their marketing efforts and service offerings. The family wanted to remain profitable and reach the company's goal of offering the best service in the industry while increasing revenue by 25 per cent within the next three years. To do this, the owners had to reach a consensus on the best marketing plan to help them differentiate against numerous competitors and continue to deliver optimal service offerings.
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