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Walking Peru
Marketing Plan

Prices
Service prices in the introduction stage will be US$40 for a 30 minute flight from preparation to landing. The price was fixed based on market research findings.

At this price level, it should be possible to penetrate the market by offering a quality service characterized by ease of access, innovation and safety. The price charged will cover costs of US$21 including opportunity costs to shareholders estimated at 20%.

Since the product is in its introductory stage, prices can be set with greater flexibility. However, as a rule these prices tend to fall. Therefore, the initial US$40 price will be reduced by 5% annually in the financial projections for the most likely and contingent scenarios. However, the cost structure is strong enough to stand the price reduction.

Promotion
Service promotion will seek to position the product in the market and increase coverage on the following assumptions:

  1. Concept
    Clients will derive a feeling of pleasure and freedom from gliding over choice tourist sites at a moderate price and in total safety without need of previous flight instruction.
  2. Code
    A clear image of the product will be depicted at points of sale together with lively music and a slogan presenting a novel product.
  3. Media
    Network and cable television advertising during time slots preferred by the company's target audience appear as the first choice. Despite a high cost of US$224,000, television advertising was chosen as a highly motivating and widely accepted (45%) medium, in particular by high income groups.7 Three old brochures and advertising flyers appear as the second best advertising option to be distributed at strategically chosen locations such as airports, toll gates, hotels, travel agencies, museums, universities and other. Investment in this medium will be US$36,000. Finally, radio broadcasting was selected as the third medium with an investment of US$32,250. Market research has determined 36% of the target population have a favorable attitude toward this medium. Total advertising investments amount to US$292,920. The media plan is detailed in appendix 7.

The chosen media will allow to massively disseminate the product and create product awareness among the target audience. Implemented over six months, the strategy will move from a saturation phase to year long maintenance.

To foster initial demand during the launching month, customers who complete four flights in one month will get flight time bonuses. Satisfied customers are expected to generate additional demand by word of mouth. Additionally, every six months a hang glider will be raffled among clients to:

Sponsorships of beach sports festivals in the summer season will give Airwalk added prominence in the local market.

Distribution channels
No intermediary stages or links exist between the client and the supplier of hang glider flight services. Distribution takes place at the moment and on the site where the service is supplied. The service distribution network is comprised of the following elements:

7 Source: Actitudes hacia la Publicidad. Informe Gerencial de Marketing. Apoyo Opinion y Mercado. November 1996.


Walking Peru
Table of ContentsAppendices
0. Executive Summary
1. Product Concept
2. Tourism Industry
3. Market Analysis
4. Competitive Advantages
5. Products
6. Marketing Plan
7. Operations
8. Organization
9. Financial Results
Perus's tourist calendar
Survey and Results
Letters
Operations schedule
Investment budget
Capacity expansion
Revenues first year
Most likely scenario
Contingency scenario
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