Marketing Mix: A
Comparative Analysis of Two Tour Operators in Sabah, Malaysia
Yuk Fong
Chin
Chief Executive
Officer, Jesselton College Sabah
f.chin@jesselton.edu.my
6088-448-344
Fung
Lan Yong
Lecturer,
Jesselton College Sabah
fungyong58@gmail.com
6088-448-344
Journal of Business and Management (2016), 18(2), 43-47
Abstract
The purpose of this research paper was to
compare the marketing mix adopted by two tour operators in Sabah,
Malaysia. The marketing mix was defined
as the mixture of controllable marketing variables that both tour operators
used to pursue the sought level of sales in the tourism and hospitality
market. It aimed to provide a better
understanding of the four P’s (product, price, promotion, and place) in the
marketing mix and how they are used in the context of two tour packages. The two tour operators selected for this
research paper were Discovery Tours and Wildlife Tours. Findings indicated that few differences exist
in the marketing mix of the two tour operators; their product, price, place,
and promotions are rather similar. Their
target markets include both local and overseas and both emphasize adventure and
recreation. No differentiation according
to age and socioeconomic status is made as both tour operators maintain that
their products and services are safe for customers of all ages and income
levels. In general, Wildlife Tours
offers more printed information and a better package with a reasonable price
for its product, which is the trip to Turtle Islands. To popularize their product
as a nature’s paradise, they should constantly revise their itineraries to make
their package more attractive and affordable, while keeping the carrying
capacity optimal. To generate environmental awareness and attract eco-conscious
tourists, they should highlight conservation of natural resources in their
brochures and websites. They should also
mention the age groups, safety measures, and proper use of the natural
resources. Both tour agencies should practise
market segmentation to attract a particular group of consumers, for instance,
during the school holidays, they could offer a special package to high school
students and teachers. Finally, they
should arrange special trips for older persons, the physically challenged, and
charity groups.
Keywords:
marketing mix, tour operators in Sabah, tourism and hospitality
1. Introduction
Dekker (2015)
stated that product is the first consideration of the marketing mix of a tour
and activity provider; hence, it should offer a specific tour or activity that
is in popular demand. Additionally, it
should be a high-quality tour and an authentic experience in order to exceed
customers’ expectations. Place is the
second consideration in the marketing mix since a tour and activity provider
has to make its product available for booking on a wide variety of platforms. Nowadays, many travellers prefer to book
online for their reservations; hence, a tour and activity provider should
have a mobile-friendly website to promote its products and services. Price is the third consideration; a tour and
activity provider needs to price its tours and activities according to demand
and value. It does not need to give away its product in order to attract
customers, but it should offer them a valuable and worthwhile experience. Promotion is the fourth consideration; a tour
and activity provider should utilize a variety of advertising techniques and
marketing campaigns to promote its business.
Using social media is one of the most effective promotion strategies
nowadays.
Dekker (2015) added that a tour and
activity provider should adopt an extended marketing mix, one that is
applicable to its own unique products and services. First, it should invest in the right
employees because enthusiastic and entertaining guides can help attract more customers to the
business, and will enhance the overall experience. Second, it should ensure that its tours run
on schedule, and give the customers the promised experience. Since delivery of the final product is
critical to attract previous and potential customers, a tour and activity
provider should excel in its operations, for example, it should avoid long
waiting times or making customers walk for too long. Third, it should give customers physical
evidence of what they have paid for, for example, by ensuring that the
vehicles, gear, and other things are in top condition so that
customers will feel, see, and experience its tours and activities in
a favourable manner.
The
purpose of this research paper was to compare the marketing mix adopted by two
tour operators in Sabah, Malaysia. Information
for the research paper was obtained by conducting desk research, field
research, and observations. Desk
research included the use of brochures, pamphlets, and books, while field
research involved interviewing staff members of the two tour operators and the
public. Observations were carried out by
the second author who visited the two tour operators.
The
product, design, quality, range, and features of the tour operators were
carefully examined. Prices were compared
according to their pricelists, discounts, commissions, and surcharges. Places were compared according to their
distribution channels, distribution methods, coverage, and location. Promotions were compared according to their techniques
of advertisement, sales promotions, direct selling, and publicity.
2.
Secondary findings
2.1 Product of Discovery Tours
Product refers to both tangible goods
and intangible services (Kotler, 2001).
A tourism product is perishable, non-standardized, fragile, and
unpredictable. The core product selected
for this research paper was a trip to Turtle Islands, Sabah. The augmented product included all other
aspects of the trip, including staff and insurance. Both Discovery Tours and Wildlife Tours offer
this core product and used various promotional techniques to attract consumers
and satisfy their needs in order to maximize their sales revenue.
The
trip to Turtle Islands offered by Discovery Tours (2015) consists of two days
and one night. The product or tour
description and itinerary under the title of Sandakan Tour Packages are as follows:
“The morning flight to Sandakan is
followed by transfer to the jetty for a boat ride of approximately 1.5 hours to
Selingan, one of the three islands that make up the Marine Turtle Conservation
Park. Visit the hatchery and watch for
turtles after nightfall to become pat of the conservation programme that is
carried out here. Accommodation is at
the island’s resthouse. The main
journey to Sandakan is made in time to catch the feeding of the orang utans at
the Sepilok Orang Utan Rehabilitation Centre, where young utans are coached to
enable them to return to their natural habitat.”
On
the first day, tourists can take a morning flight from Kota Kinabalu to
Sandakan, ensued by a boat-trip to Selingan Island. At Selingan, tourists can
visit the turtle hatchery and watch for turtles after nightfall. They can stay
overnight at the resthouse. On the
second day, tourists will depart from Selingan to Sandakan. They will travel to
the Sepilok Orang Utan Rehabilitation Centre where they can witness how young
apes are trained to readjust to their natural habitat. After that, they will spend some time in
Sandakan’s town area, including the central market and Chinese temple. They will be served lunch at a local hotel
before returning to Kota Kinabalu on an evening flight.
Overall,
Discovery Tours (2015) has packaged its product through two glossy travel
brochures. Both brochures contain
attractive headings and colourful photos capturing the interesting activities
on Turtle Islands and the Orang Utan Rehabilitation Centre. Besides interesting information, they contain
recommended items to bring on the trip.
2.2 Product of Wildlife Tours
The trip the Turtle Islands offered by
Wildlife Tours (2015) consists of two days and two nights. The product or tour
description and itinerary under the Back
to Nature heading are as follows:
“To
Turtle Islands. Start your
back-to-nature tour from Sandakan with a taste of sun-drenched island beaches
and sparkling blue seas. But this island
is uniquely different. The only island
in the world where sea turtles come every night of the year to lay their eggs
in the sand. Witness this fascinating
natural spectacle under the guidance of local experts dedicated to the
creatures’ welfare. Spend the night on
the island in simple chalet accommodation.”
On
the first day, tourists from Sandakan are transferred to the jetty to board a
boat to Selingan Island. When they reach
Seingan, they can check in Libaran Island Lodge where they are subsequently
served lunch. After lunch, they can
select their own leisure, including snorkelling and swimming. After dinner, they can watch turtle laying
eggs on the beach, transferring of the eggs to the nursery, and releasing of
hatchlings to the sea. They will also stay overnight at the chalet.
On
the second day, tourists are transferred by boat from Selingan to Libaran
Island early in the morning. Upon
arrival, they check in a chalet, after which they can choose their own leisure
activities, such as snorkelling in the Sulu Sea, jungle trekking, river
cruising through a mangrove forest, night fishing, or taking a stroll in a
village. They will stay overnight at
Libaran, where breakfast, lunch, and dinner are served.
On the third day,
tourists are transferred from Libaran to Sandakan early in the morning. Upon
arrival, they can make their own plans, such as joining an excursion to the
Kinabatangan River or Sepilok Orang Utan Rehabilitation Centre.
Overall, Wildlife
Tours (2015) has packaged its tours in one 15-page booklet as well as two
colourful brochures. Both highlight the
major tourist spots and activities in Turtle Islands and Sandakan.
3. Comparison of the marketing mix of two tour
operators
3.1.
Products offered by the tour operators
With regard to similarities in their
products, both Discovery Tours (2015) and Wildlife Tours (2015) have
highlighted the attractiveness of their product, which is Turtle Islands. In their brochure, they have included brief
descriptions of their itineraries, leisure activities, and modes of
transport. Both tour operators have highlighted
the major tourist spots in Turtle Islands, such as the turtle hatchery,
stunning beaches, and comfortable accommodation.
However, products of the two tour operators
differ in terms of duration and itinerary.
Discovery Tours (2015) offers a relaxing holiday of two days and one
night in Turtle Islands, while Wildlife Tours (2015) offers two days and two
nights. Further, the itinerary of
Discovery Tours (2015) includes visiting the turtle hatchery in Selingan,
Sepilok Orang Utan Rehabilitation Centre, and the downtown area of Sandakan
(central market and Chinese temple). In
contrast, the itinerary of Wildlife Tours (2015) highlights visiting the turtle
hatchery in Selingan, snorkelling, swimming, and other leisure activities.
Additionally, Wildlife
Tours (2015) includes visiting Libaran Island snorkelling, jungle trekking,
river cruising, night fishing, and village strolls. However, Discovery Tours (2015) does not have
these activities in its brochures.
Wildlife Tours (2015) introduces
other products to tourists, such as joining other excursions after the trip to
Turtle Islands. In contrast, Discovery
Tours (2015) merely transfers its customers back to the hotel after completing
the itinerary.
Discovery Tours (2015)
includes the Orang Utan Rehabilitation Centre and downtown Sandakan in its
Turtle Islands trip. However, Wildlife
Tours (2015) offers a separate package for the Orang Utan Rehabilitation Centre
and Sandakan. Nevertheless, it includes
Libaran in its Turtle Islands trip, while Discovery Tours (2015) does not.
After looking at the
design, quality, range, and features of both tour operators, it is concluded
that Wildlife Tours (2015) offers a more desirable product.
3.2. Prices offered by the tour operators
Price is the value on what is exchanged,
and is the only variable that can be adjusted to respond to change (Kotler,
2001). As the livelihood of the company,
it is critical as it determines its profit margin. It provides an index to consumers regarding
the product or service. Many consumers
perceive that a more expensive product or service tends to have better quality
although it may not be true. Many budget
consumers prefer a product or service to be of reasonable cost and good
quality. They will compare the prices
charged by the various companies offering the same product or service.
Discovery
Tours (2015) charges about RM 700 per person for a trip to Turtle Islands,
including airfare. As mentioned above,
the itinerary consists of the main tourist spots in Selingan and downtown
Sandakan. Wildlife Tours (2015) charges
about RM 800 per person for the trip to Turtle Islands, including airfare. The itinerary includes the main tourist spots
in Selingan and Libaran.
Overall,
Wildlife Tours (2015) offers a better product and better price because it
includes more attractive tourist spots and activities. The price difference between the two tour
operators is about RM 100; nevertheless, it is reasonable to spend a bit extra
for a better package offered by Wildlife Tours (2015). In its itinerary, Wildlife Tours (2015) has
included Libaran Island rather than downtown Sandakan as offered by Discovery
Tours (2015). More tourists would prefer
a trip to Libaran as they could explore downtown Sandakan by themselves, which
is free of charge.
3.3. Places highlighted by the tour operators
With regard to place, both tour
operators are compared according to distribution channels, methods of
distribution, coverage, and location (Kotler, 2001). Place includes the location of all points of
sale that provide prospective customers access to tourists products. Both tour operators focus on tourist spots
that are highly accessible in terms of accommodation, transport, and other
related services.
Both
tour operators have branch offices in Kota Kinabalu, the capital city, and
Sandakan, a large town. Their Kota
Kinabalu offices are located in the same building that is high accessible. Both tour operators have a site at a
five-star hotel. Their proximity to the
capital city enables potential consumers to compare products and prices with
great convenience.
Since
consumers en route to Turtle Islands have to travel to Sandakan first, both
tour operators ensure that their Sandakan offices are easily accessible. Further, all branch offices of both tour
operators are located in close proximity to inns, hotels, and the airport. Their addresses, phone numbers, fax numbers,
and email addresses are clearly stated in their brochures.
In
all their branch offices, both tour operators have provided detailed
information concerning their products, accommodation, transportation, food, and
other related services. They readily
allow prospective customers to sample their brochures and recommend their
products and services in an enthusiastic manner. They also provide useful details concerning
room and board, transport, booking, and other services.
Discovery
Tours (2015) provides detailed information of its own products and services only
upon request. Its display rack contains
brochures from hotels, airlines, and Sabah Tourism Promotion Corporation, but
not its own products and services.
Information about the Turtle Islands trip is not on display, but will be
provided by the staff. In contrast,
Wildlife Tours (2015) displays all the products, pricelists, and other related
services on its racks, so potential consumers can get all the necessary
information about its Turtle Islands trip just by sampling the brochures on the
racks, without asking the staff.
A
comparison of the branch offices in Kota Kinabalu reveals that Wildlife Tours
(2015) has a more attractive layout. Its
office appears to be better equipped and more attractive than that of its
competitor.
To
distribute their products and reach out to consumers, both tour operators
employ direct selling, tour operators, and intermediaries. The security guards in the building could
readily provide information concerning the offices of both tour operators.
Besides, prominent billboards and a directory at the ground floor also indicate
their exact location. Finally, offices
of both tour operators are located at the vicinity of a tourism college,
tourism promotion board, post office, banks, and large shopping complex. Having
an office near tourism-related institutions helps generate useful information
concerning their products or services.
3.4. Promotions conducted by the tour operators
Both tour operators use such promotional
techniques as personal selling, direct marketing, advertising, public
relations, and sales promotion. The
promotional techniques are used to boost sales, foster a favourable image of
the tour operators, develop a long-term relationship with customers, and keep
customers informed regarding their products and services (Kotler, 2001).
To
promote their products and services both tour operators use personal selling in
the form of invoices and personal communication. Their staff members are adequately trained on
selling skills in order to attract customers.
Both
tour operators advertise their products and services in local newspapers and
travel magazines, which are either subscribed by or distributed free to airline
systems, tour agencies, hotels, resorts, and international companies. Further, to capture the local and
international markets, they advertise their products and services in trade
fairs and exhibitions.
Both
tour operators actively participate in conferences and exhibitions held in
Malaysia and other countries where they show videos on their services and
services. Further, they send travel agents
to Europe and other countries to promote their packages.
Direct marketing is practised by both
tour operators by mailing their brochures and special offers to previous and
potential customers. Their tour
operations relay information to previous and potential customers about new
holidays. Because they have branch
offices downtown, they can approach customers more directly to promote their
products and services.
Both
tour agencies have established favourable public relations with the local press
and through the Internet. Whenever they
have a trade fair or exhibition, their spokesperson will release information to
the news media and post crucial information in the website. Further, feature stories of both tour
operators have been published in the local newspapers and uploaded in the
Internet. Occasionally, the tour
operators invite the press to participate in their outings in order to give
them first-hand experience in their products or services. Some of their staff members have also granted
interviews to reporters and tourism students from the local colleges.
Finally,
both tour operators use sales promotion to add value to their products and
services. They occasionally use discount
vouchers, price cuts, and free gifts to attract previous and potential
customers.
4. Conclusions
For the Turtle Islands trip, few
differences exist in the marketing mix of the two tour operators. Their product, price, place, and promotions
are rather similar. Their target markets
include both local and overseas and both emphasize adventure and
recreation. No differentiation according
to age and socioeconomic status is made as both tour operators maintain that
their products and services are safe for customers of all ages and income
levels. In general, Wildlife Tours
(2015) offers more printed information and a better package with a reasonable
price for the trip to Turtle Islands.
Additionally, many other tour operators offer an attractive package to
Turtle Islands. As a consequence, both
tour operators have to offer competitive prices in order to develop brand
loyalty and attract new customers. To
popularize Turtle Islands as nature’s paradise, they should constantly revise
their itineraries to make their package more attractive and affordable, while
keeping the carrying capacity optimal.
5. Recommendations
Discovery Tours (2015) should produce a better
booklet providing details of the interesting activities in Turtle Islands and
other popular spots in Sabah, Malaysia. To
compete against Wildlife Tours (2015), it should include a few more places in
its Turtle Islands itinerary.
To
generate environmental awareness and attract eco-conscious tourists, both tour
operators should highlight conservation of natural resources in their brochures
and websites. They should also mention
the age groups, safety measures, and proper use of the natural resources in
Turtle Islands.
Both
tour agencies should practise market segmentation to attract a particular group
of consumers to Turtle Islands. For
instance, during the school holidays, they could offer a special package to
high school students and teachers.
Further, they should highlight the unique flora and fauna of Turtle
Islands. Outdoor activities on Turtle
Islands, such as snorkelling, wimming, and trekking should be promoted as part
of physical education and nature studies for youths. They should also arrange special trips for
older persons, the physically challenged, and charity groups.
Both tour operators
should continue to participate in local and international trade fairs to
promote the natural wonders of Sabah.
Many local and international tourists are not aware of the existence of
Turtle Islands, so they end up visiting other more famous places in Asia, such
as Langkawi, Bali, and Phuket. With the
current economic situation, it is expected that more people will visit Turtle
Islands as the trip is much more affordable compared to other places; hence, both
tour operators should take advantage of the current economic trend by promoting
their products and services to both local and international consumers.
References
[1] Dekker, N.
(2015).The 4 + 3 P’s in the marketing mix
for a tour operator.
https://www.rezdy.com/marketing mix for tour operator.
[2]
Discovery Tours Sdn Bhd. (2015). Discover Sabah with us.
[3]
Discovery Tours Sdn Bhd. (2015). Sandakan
tour packages.
[4]
Kotler, P. (2001). Kotler on marketing. Simon
& Schuster.
[5]
Wildlife Tours (2015). Back to nature in Borneo.
[6]
Wildlife Tours Sdn Bhd. (2015). Turtle Islands.
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