4. Marketing Plan
4.1. Target segments and key success factors per segment: Quantitative analysis
● Accessing distribution channels is difficult → The promotion, publicity and marketing is not well enough and so practices and techniques used are useless.
Figure 3. Five forces analysis
anonymously. To obtain this information a survey and an interview has been carried out with a mix of closed and open questions to several segments of people.
So, the research strategy used is the elaboration of a “Pilot Study” with the help of a survey send to different people who are free to answer questions and even have the option to express their feelings and their opinions. Together with the Pilot Study a “Netnography Research Strategy” it is also being used because questions have been created for people who has different beliefs, thoughts and they may be part of a specific community or society group.
Next, the factors we have used for our target segments are based on carrying on Qualitative and Quantitative analysis. While Qualitative is more specific for subjectivity, Quantitative are factors of observation, focus groups, content analysis:
4.1.1 Quantitative analysis
To obtain and analyse numerical data as well as have an idea about how many people from are interested on our proposed idea, we have surveyed 154 people [See results in Appendix C ] to gather the data based on respondents from specific gender and age. Also, this survey has several closed and open questions. Thus, in order to let respondents, have freedom choice on specific answers followed up by their beliefs, thoughts, among others
.
4.1.2 Qualitative analysis
An interview has been done to eleven people of different age and gender to understand their attitudes and behaviours towards travelling choices; including the accommodations, destinations and others. Thanks to that interview of 27 different questions per each person, beliefs, perceptions, motives, attitudes and opinions have been examined. Also, with the answers we could say which are the interests of people in terms of decision - making of products, services, brands. This interview we could say is done to a specific focus group which is people who are used to travel or at least, keen on travelling once or twice a year minimum. For this reason, same as previous “Quantitative Analysis”; open and closed questions have been created to let us know several points of view and opinions and allow discussions of specific topics related to travelling choices.
4.1.3 Customer empathy map
This method is used to pay attention to customers by making use of the senses with the objective of finding possible problems and feelings they might have towards sustainable accommodations.
Likewise, new needs and desires, behaviours and attitudes.
Table 12. Customer empathy map
Feelings & Thoughts
The potential customer is interested on being green and sustainable. His or her concerns are on the maintenance of environment and taking care of it.
Surrounding
He or she see themselves in a place where community practices are applied and they may be able to interact with locals and do activities in the nature.
Social Media or Friends
The customer is mostly interested on
“Instagram” and other channels. But, also likes to travel in group (accompanied).
Behaviour and Attitudes
As we could deduce the customers are open minded and interested in discovering and knowing new cultures, places. They act with respect.
Efforts & Weaknesses
Some barriers they may find while travelling are the sustainable practices that they are not 100% applied. Also, in some aspects they mention the fact of being unemployed or the low capacity of employees.
Results and Strengths
Customers have mentioned that if their expectations are being well consolidated and their satisfaction is high then they may repeat or simply end up with a “good mouth flavor”.
This is very important because helps us achieve WOM (Word of Mouth).
Source: Own elaboration
4.2. Positioning strategy 4.2.1 Current positioning
As a new value proposition, today Alwa Eco Hotel doesn’t have a position in the market, although the current industry already has some positioned members. As it is a little- known category and at the same time it is growing, it means that what is positioned are destinations (Los Yungas) and not specific establishments. So, we find a gap as an opportunity and thus achieve the desired positioning.
4.2.2 Desired positioning
To determine the desired positioning, we have chosen to reach the minds of our potential clients as ‘’ the first innovative and sustainable eco hotel that offers an unforgettable experience taking care of the environment and the local community’’. Seeking to be the first choice of destination and get travelers to come for the type of accommodation and services we offer.
On the one hand, this will be achieved by aligning our behavior as a brand with actions and communication focused on our greatest strength: being ecological, the tangible and intangible characteristics of our product against the competition and our consumers, the relationship quality / price and work with the local community.
On the other hand, and although it is sometimes difficult to determine if the consumer has exactly received the message that we want to transmit through our services / products. Our objective as a business is to create awareness for the environment and responsible tourism, trying to make the client understand that "it is easy to have an ecological and sustainable life at home."
Then, the following positioning map will help us to visually represent the position of our brand in relation to our competition.
Figure 4. Positioning map of Alwa Eco Hotel
As you can see in the previous image, we divided the axis into four points (innovative - traditional) and (apply sustainable practices - doesn’t apply sustainable practices). Analyzing the style, the material with which the accommodations of our competition are built and if they are sustainable, ecological and environmentally responsible companies. We have observed that most of them don’t apply sustainable practices. As for the style of its facilities, spaces and rooms are common, traditional. They don’t fit with the natural environment where they are located since they are cabins made of brick and cement.
We have could analyze that our direct competition is Senda Verde Ecolodge and El Jiri Ecolodge.
Source: Own elaboration
could not find enough information, but if we discovered that it offers activities in nature, has an organic garden and works with a family that is dedicated to coffee plantation.
On the other hand, we consider that Senda Verde Ecolodge it’s an innovative initiative since apart from offering accommodation in the middle of nature it also saves different types of animals from the illegal animal’s markets. In addition to being one of the first accommodations to offer vegetarian food in the area, this is due to the type of volunteers / clients they receive from other countries. As for whether they apply sustainable practices, for the information on the internet they take care of the environment and animals, they reduce the use of plastic by recycling and making the least use and they sell ecological products such as a cutlery kit made of bamboo.
Collecting all the information about our competition, Alwa Eco hotel is at the highest point of innovation as it will be a type of accommodation that doesn’t exist yet in the area. It will also take care of the environment and the local community by applying different sustainable practices in its day to day.
4.2.3 Peste Analysis
The PESTE analysis it is used to describe the Marketing Environment and it is based on several factors which are constantly changing. The changes affect consumers, drive the market demand and influence the competitive environment. The factors are the following ones:
● Political
The Political factors is important in terms that it is needed to establish legislation, laws, among others to assure a good organization of political environment and influencing the marketplace.
Regarding the Law nº292, Ley General de Turismo “Bolivia Te Espera”; approved by The Plurinational Legislative State; this one is the main law and the most important for tourism that has to be followed and respected. It is followed by the Law Nº 031 which is the one in charge of designing new propositions and defining tourist policies in regions, localities and departments.
Related to this law, has the responsibility of autonomic territorial entities respecting the establishment and development of “Sistema de Registro, Categorización and Certification” of tourist service providers and The Information System over the national tourist offer, demand
The payment of VAT is only applied to these employees who earn more than 8,272 Bs which is a percentage of 13%.
According to pwc Worldwide Tax Summaries; “corporations make payments to individuals in relation to the acquisition of goods or service providers subject to withholding taxes of 8%
(goods) and 15,5% (services)”. Then, the “beneficial withholding taxes rates on dividend distributions are provided by double tax treaties with Spain and Sweden at 10% and 0% which it is demonstrated that Spanish or Swedish company is the ultimate beneficial owner and holds more than 25% interest in the Bolivian company”. Following up, the “tax on gross income from the performance of any economic or commercial activity are at a rate of 3% monthly basis”.
Regarding Boleto & Terrero Law Firm, there are regulations on advertising and marketing communications which are directed to the telecommunications sector (Law 164). But, there is nothing regarding the processing requirements of data either rules and still it is needed the consent of the owner of the information to transfer or disclosure the data to a third party. On the contrary, Privacy Data regulations have some protection and it is possible to get some compensation for the damages suffered even though a consequential showing of the damage is required.
● Economic
As Transformation Index BTI states there are several reports that has been done in 2018. Reports refer on political and economic transformation. An example of Economic Transformation is the following:
Table 13. Economic transformation, economic indicators
The Business Cycle is another important aspect that have major impact on demand. This business cycle is formed by five different stages that are relevant on the economic activity. First, the growth refers to increasement of demand as well as high business confidence hoteliers might have. Related to the tourist activity it has created new job positions and contributed to the development of many regions. So, the tourist activity as for example, in the hotel sector; has increased and consequently the visitors are more than the previous year, the tourist expenses
Source: The World Bank, world development indicators | International monetary fund (IMF), World economic outlook | Stockholm International Peace Research Institute (SIPRI), Military Expenditure Database.
Second, peak is referring to the occupancy and room rates that remain strong even if the customer demand tends to slow. As seen in the table below there is an increase on tourism expenditures and so, it means more demand yearly. We could interpret that the demand is still strong as seen in the table from Bolivia Tourism Statistics.
Figure 5. Bolivia tourism statistics
Third, the decline stage is the decrease on demand and the risk investors have as well as property values that begin to fall. In relation to that, it is believed that there is no specific data stating this decline but it is happening in Bolivia as in other countries. The reasons of demands decrease may be related to the Worldwide Phenomenon affecting everyone, “COVID-19”.
From the fourth stage, which is “Trough” to the fifth one “Resurgence”; it is possible to be needing a long period time because as mentioned and stated in the previous stage (decline).
Source: Ceic Data World Bank
Meaning that until the worldwide phenomenon disappears or it begins to be more controlled among people and countries; these last stages won’t have a significant change, improvement.
● Socio - cultural
In this section, it is considered the environment influences such as climate, history, religion and ethnic makeup. Indeed, cultural differences between countries as for instance, gastronomy habits. Next, the demographic changes play an important role in terms of market demand impact. As we have evaluated in the surveys and interviews carried on and in the previous sections when we explain the buyer persona; the profile will be one clear but also focused on several segments considering gender, age, groups of people, among others.
● Technological
Concerning the technological environment associated with innovation and developments in information communications technology together with the digital, internet platforms; our proposal is to create Mobile Apps. These APPs will be used in Housekeeping Department which will help improve efficiency, communication and practices. Apart from these APPs which will be Know cross and Flex Keeping; it is being considered to introduce other technological influences that are not applied yet.
● Environmental
What refers to this section are the factors that make the hospitality industry be aware of using appropriate sustainable measures and practices. As our accommodation is defining sustainable and environmental practices; we will assure the respect in natural habits and local community.
Not only thus will be factors we are already compromise on doing but the introduction of reuse of water measures, natural products renewable energy for the electricity supply which is the introduction of solar panels.
4.3. Marketing mix
We have used marketing mix to promote our product in the market based on a set of actions and tactics. In this section, we must keep in mind the client and do research their interests, preferences, comfort and conformity. We have made the following diagram based on what the customer's way of thinking and feeling would be.
Figure 6. The 4Cs of marketing mix
Source: Own elaboration
4.3.1. Product 4.3.1.1 Branding
● Name
ALWA ECO HOTEL; the name comes from the roots of the country in its Aymara language, which means dawn. We use this word since sunrise is part of nature and is one of the most beautiful moments of the day. Apart from that we wanted to transmit the idea that "you will dawn in our cabins and tree houses surrounded by nature and starting the day with us". It is an easy word to remember, to pronounce, beautiful meaning and available as a trademark for registration.
● Logo
Three different proposals were designed for the final logo, from which we chose the third option. Since our objective is to transmit simplicity, quality and style through the letters and brand colours (black and white). We didn’t choose any type of image because we simply decided to use the word ALWA so that customers remember the name and can differentiate it from the competition.
Source: Own elaboration
Illustration 2. Design of logo company
In annex 7 you will find the design of the hotel business cards, staff’s t-shirts and the welcome card design for our clients.
4.3.2. Product/service strategy
The 10 tree houses and 10 cabins are the perfect place to relax in the midst of nature. And enjoy an exclusive and eco-sustainable experience through our workshops, routes and activities. Our accommodation was thought and created to generate emotions and cultivate unique experiences for each of our clients.
Rooms: each room will have bathroom (eco-friendly dry toilet), closet, outdoor shower, king- size bed or twin beds with mosquito net, high-speed internet, light and hot water from solar panels. Moreover, one of our cabins will have a small ramp and all necessary facilities for people who are in wheelchairs. Rooms will be in the middle of trees, palms and other type of plants.
Each cabin and tree house will have their space and will not be very close to each other.
Source: Own elaboration
Illustration 3. Proposals of logo company
Table 14. Type of Alwa Eco Hotel accommodation
As it is seen in the table above, it has been created to show the number of tree houses and cabins we have. The tree houses have different names in the Bolivian native language which is the "Aymara". The rest of the cabins will be differentiated by numbers.
The daily reservation will include a daily buffet breakfast in the restaurant or IRD, visit to the property's orchards, farewell ritual, access to our pool and other facilities. Regarding the amenities will include natural basic hygiene products such as shampoo, conditioner, body cream, body soap, hand soap and a welcome kit consisting of organic orange juice, a variety of local chocolates and a personalized welcome card.
The facilities that our eco hotel has are:
1. Parking
2. Front desk, back office and lobby 3. Staff house
4. Restaurant & Bar '' Sumawa ‘‘(capacity of 60 people) 5. Events zone '' Nampi Zone '' (capacity of 40 people) 6. Tree houses
7. Cabins 8. Hammocks
9. Yoga & meditation area '' Akapacha '' (capacity of 30 people) 10. Training room and workshops (capacity of 30 people) 11. Breakfast space
12. Orchards
Source: Own elaboration
14. Bonfire area 15. Relax area 16. Hammocks 17. Animal sanctuary
All areas will be connected through a cement path and surrounded by trees that will in turn offer the client privacy and tranquility. (See Annex 8 to see images about the different spaces)
● Restaurant & Bar Sumawa will be opened for breakfast, lunch and dinner, and the bar will be opened from morning to night. About gastronomy mainly we will offer vegan and vegetarian options. There will be also a la carte dishes and a menu for lunch and dinner for those who want to try a traditional dish from the area. All our dishes will be made with local and seasonal products. Offering this type of food, we want to demonstrate to our clients that eating vegan is also tasty, healthy and take care of the environment. The schedule of the restaurant & bar will be the next.
Hours of operation:
Breakfast: 07:00 - 10:00 Lunch: 12:00 - 16:00 Dinner: 19:00 - 22:00 Bar: 16:00 - 00:00
● Staff house: in this area, will be the laundry, the storage space, a small dining room with a quiet area for staff and a dressing room with lockers.
● Events - Nampi Zone: This area will be surrounded by trees and will have a large private space for groups seeking a culinary experience or other type of events.
● Training room and workshops: area equipped with large tables, chairs, projector, screen and whiteboard to organize all kinds of workshops and staff training.
● Breakfast space connects with the restaurant; this space is for those who want to have
● Orchards: where we will plant seeds of different vegetables and fruits to consume it, with the organic leftovers we will make compost.
● Relax area: it will have comfortable seats, low tables, floor cushions and jute beanbags.
● Animal sanctuary: the area will be divided into two sections, one area for dogs rescued from animal abuse or abandoned and the other for other type of abused animals.
Activities that we will offer:
● Out of the enclosure
○ Adventure activities: zipline, rafting, paragliding, canyoning (Vagante, Concepción y Garganta de Diablo) , biking, waterfall route and trekking. For this type of activities, we will work with a specialized agency in adventure activities named El Vagante. By working with this company, we guarantee a quality service aligned with the service provided by our hotel, which will agree a commission percentage with this agency.
○ Tourist routes lead by locals ‘Coffee tour’: Coroico and in general Los Yungas is an area where coffee, cocoa, citrus, bananas, coca leaves and honey are produced. In our case, we will offer our clients only the coffee tour.
The following table refers to the type of service that other companies offer when selling tourist routes through Coroico, in regards of our competition. We focus on tourist products such as the route of coffee, cocoa, honey and coca leaves.