Experiential Marketing in Tourism: Cox & Kings' Strategy Assignment Sample

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The Future of Experiential Marketing in Tourism: Cox & Kings' Path to Revival

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Introduction: Experiential Marketing in Tourism: Cox & Kings' Strategy

Experiential tourism has a quite popular in recent periods considering the wide variety of experiences it provides to tourists and visitors (Smilansky, 2017). As a result, companies operating in the tourism and hospitality industry that specifically offer tour packages to adventure-seeking tourists value their experience during the tour of a particular destination. In this regard, the following study aims to develop a tourism marketing plan that specifically aimed towards the development of an experience tourism package. This purpose Cox & Kings have been taken into consideration and the marketing plan wood specifically aimed towards the development of an experienced tourism offering for the organization. Cox & Kings is one of the oldest travel and tourism companies operating in the global market and has great potential in terms of offering experience tourism to diverse groups of tourists having different interests in different kinds of experience tourism.

This report aims to crucially evaluate the experiential marketing concepts, their theories, and the important role of the theories. The aims and objectives of the report further involve identifying the disadvantages and advantages of these theories and the importance of the application of these theories to the well-known travel company Cox and Kings for identifying us different weaknesses in the company. In addition to these, several recommendations will be provided which will be further used for preparing a communication plan. This plan will be highly helpful for attracting as well as maintaining communication with the target audience that is tourists and travellers. Concerning the communication plan will provide suggestions and responses detailing efficient ways through which customers can be handled during and after their encounter with the company. The communication plan that will be provided in section two will help in giving a better understanding of the topic.

Section 1

1.1 Evaluation and synthesis of Experimental marketing:

Experience and its advantages and disadvantages

The word experience has several meanings in context of academic literature. Some scholars define experience as a conscious event. In a restricted sense it refers to some particular types of consciousness such as sensation or perception, through which the knowledge about the world is attained by the subject. However, in a broader sense the definition of experience includes aspects other than sensation or perception. It essentially refers to not only a particular conscious event but the knowledge of a particular familiarity that comes with it. Experience has several advantages and disadvantages. The benefits or advantages that a person faces with proper experience have been provided in the following. Experience provides one with in depth knowledge and gives him mastery over soft skills therby making him more worthy. However, disadvantages include presence of lesser options, pressure during handling of expectation and poor life work balance. (Jain and Lamba., 2020)

Experiential Marketing and its importance

In modern times, several services and goods are available. Hence businesses need to sell in a manner such that the attention of the customer is readily captured. Through Experiential marketing, a personal connection is established with the customer, which helps them in remembering a particular product and the experience they had with it (Batat, 2019). Unlike television or billboard commercial, it appeals to the customer's emotional side. Further, it is widely used during different live events where the customers can participate. Considering Y's CocaY, The customer can closely interact with the product.

For instance when company Y is distributing its products at some political or sports event, then the customer can closely analyze how it tastes, feels, and looks (Chang, 2020). This process facilitates high levels of involvement which can never be achieved through tv or billboard commercial. Lastly, the customers who are having a positive experience with the services or products can further share their experience on social media.

Theories of experimental marketing

It can be seen that the framework of experiential marketing consists of two main components.

• People who provide experience. Their valuable experience serves as a major tool
• Five separate types of experiences are vital in the module of strategic experiences and serve as the strategic basis of experiential marketing (Le, et al., 2019).

Experiential marketing is the process of marketing that is chiefly based on experiences. The process of experiential marketing can be defined as the method of identifying as well as satisfying the customer's requirements via a two-way communication process. Maintenance of proper communication helps in improving brand image and adds value to the audience that is being targeted by the company. Through this, a company can serve the emotions and memorable involvements of the customer. It further helps the customer is closely interacting with the services, products of the company, and the company itself. Experiential marketing is essentially a communication technique that brings forth the responses of the customer concerning the company's services (SOLIHA, et al, (2021).

Every definition concerning experiential marketing which has been discussed above highlights the common aspect of senses, feelings, and emotions. This marketing technique is less concerned with human objectives and cognition (Smilansky, 2017). In this context, Gilmore and Pine's (1999) experience economy is important which is efficiently described by the term experience economy. Gilmore and Pine stated that Esthetic, Educational, Escapist and Entertainment are important experiences in relation to experience marketing. These concepts have also been shown by Smilanysky. In simple words, Experiential marketing is the process of financially addressing and discovering the consumer requirements consumer ambitions and needs via a two-way communication process (Singh, et al., 2018). Proper communication helps in improving brand image and provides value to the company's targeted audience (Rather, 2020). In modern times, the internet and social media have facilitated the promotion of different hospitality as well as other types of business among customers. However, these online marketing strategies cannot properly maintain relationships and communication with the customer leading to a lack of a lasting on the customer. The marketing technique focuses on connecting different customers and creating memorable experiences with them which can lead to improving the brand image of the company thereby improving the image of the brand to the customers.

Disadvantages and advantages of experiential marketing

There are several disadvantages of experiential marketing. Soliha et al 2021 state there are fiscal difficulties. In the following section the disadvantages of experiential marketing has been outlined.

Disadvantages

1. Fiscal Difficulties: In experiential marketing suitable human labor is required who can develop systems for capturing the interest of the consumers. However, the lack of employing individuals with inadequate qualities and lack of proper funding can affect the marketing process thereby jeopardizing the whole campaign (SOLIHA, et al., 2021).
2. Problems in evaluating people's reactions: If a huge number of customers is present then it might be difficult to note each of their reactions. In simple words, the inability of the audience to express their experience about the product can affect the overall process. Moreover, associating the experience of each individual with their sentiment towards the company's brand can be challenging. If the company fails to gain the attention of potential buyers, then they may feel left out resulting in a decrease in return over the company's marketing budget (Urdea, et al., 2021).

Advantages there are many advantages for businesses engaging is experiential marketing. These have been outlined in the following.

Establishment of reputation and credibility: Companies can demonstrate their current prospective and genuineness through this marketing process. Customers can form, significant connections with the company and engage in human close contacts with the brand ambassadors. Studies have revealed that 65 percent of the consumers think that live events are highly helpful allowing them to understand different aspects of a product. In addition, in an immersive marketing event, over 70 percent of the customers can be usual clients. This is a major advantage concerning this marketing technique which positively affects customer attitudes and the company's reputation (Rather and Hollebeek, 2020).

Experiential marketing benefits: Through this marketing approach, companies try to create a unique encounter with the customer that efficiently compliments social media marketing. Notable memories are shared by people on social media through the utilization of hashtags. Hence, through social media marketing complementing experiential marketing companies can have their events widely shared. Further, it also helps them in measuring their performance during the social media marketing campaign (Batat, 2019). .

Provides Engaging and Interactive Experience with the customers: Currently, the incorporation of digitization within the marketing process is growing and most high-performing firms are significantly investing in the experience marketing approach. Studies have shown that 98 percent of customers are compelled to buy the products of a brand after a major event. These events provide the company with significant opportunities and they can use the gathered data to remarket the product to the customers. This enhances the value generated under the brand marketing budget (Batat, 2019).

Importance of Experiential Marketing Theory

Organizations need to take strategic decisions to differentiate themselves from their competition in the service sector. Providing great client and travel experience should become the main objective of the companies within the industry to increase their revenue. Experience marketing can be highly helpful in this context. The purpose of marketing is established through establishing suitable relationships between the perceived value, the happiness of the customer, and the impact on the intention of the behavior. Close and personal experience substantially affects the perceived value of the customers. On the other customer satisfaction is influenced by the experience of the guest sense. The prospect of experiential marketing is seen to be helpful particularly when customer satisfaction is improved. The outcomes of the marketing approach measure the performance of a particular product or service in terms of the variables – behavior intention, perceived value, and customer happiness. This data can be further used to improve the product or services of the company. Experiential marketing is a modern and efficient process of marketing and so organizations are slowly shifting from traditional marketing approaches to experiential marketing approaches. Due to the incorporation of experiential marketing approaches, the process of marketing has become quite easy in hospitality and turned the travel sector.

1.2 Applying Experiential marketing Theory in the context of an international Hospitality business

Overview of the company

Cox can be regarded as the oldest travel company. It was established in India as well as the UK. The education and holiday travel group has further subsidiaries in Canada, the UK, the US, UAE, Singapore, Japan, New Zealand, and Australia (Singh, et al., 2018). The company faced bankruptcy in 2020 and is currently undergoing different proceedings of bankruptcy under IBC. In March of 2021, the company lenders moved to the National Company Law Tribunal after the creditor's committee voted for liquidating the assets over 66 percent. The company has operations in over 22 countries spread across 4 major continents. Since the beginning of its operations in 1758, Cox and Kings Ltd has been a travel agent, a publisher a printer an army agent. In addition, the company has also worked as a banker, cargo agent, insurance agent, ship owner, and other travel related activities. Currently its activities include sale of different packaged holidays.

The above graph clearly shows the revenue of the travel company Cox and Kings have declined in the year 2019 (Jain and Lamba, 2020). Although, not present in the graph, it should be mentioned that Cox and Kings faced bankruptcy in the year 2020. These led to the significant decrease in their revenue in the year 2020.

To mitigate this the company should use Experiential marketing which can help the company in creating a an unforgettable brand experience for prospects and customers. In modern times the mobile technology, content marketing and social media marketing is growing thereby creating ideal conditions for experiential marketing.

Elements of Experiential Marketing

Experiential marketing has five key elements which have been outlined in the following.

Experiential marketing increases the brand significance in the marketplace: The targeted customer can benefit from through relevant sites. Hence, it is important that the company uses content marketing and social marketing strategies which are suitaible with the current activities and location of the company. This particularly involves the aspects of marketing persona and buyer persona in social media (Österle, et al., 2018).

Experiential marketing in improving the relatability towards the brand: The core objective of this marketing approach is to provide the customer with a unique, emotional and personal experience with the product and services of the company which they can share with others ultimately resulting in brand loyalty. Instead of just advertising, it allows a consumer to see how their lives whould be if they were using the companies product (García, et al., 2018).

Experiential marketing in improving the brands emotional resonance: Through Experential marketing, the customer is able to connect with the product, services and in turn the company at an emotional level. Hence, the company is provided with supplementary purchase related data. (Jainand Lamba, 2020).

Experiential marketing in raising brand awareness:The ability of the customer to personalize as well as share their customer experience is growing. This is due to the increase in the number of people who use tablets, smartphones and mobile devices. Through using these devices they are able to get more information about a particular product and at the same time share their thoughts about a particular product with their friends and family (Jain and Lamba, 2020)

Experiential marketing in capturing the attention of the people: This is an important marketing standpoint in which customers share their experience in relation to a service or product both offline and online. In modern times people highly trust in advertising and the credibility of the company’s services or products will be boosted by the consumers positive word of mouth (Urdea, et al., 2021).

Issues at Cox and Kings

Cox and Kings is perhaps the oldest travel company. It was established in the year 1758. Over the years it has increased its operation. However, the company has some major weakness and faces some significant threats. The company faces intense competition from other travel companies in the hospitality industry which means it has a limited market share. Further each company provide almost similar services the opportunities for service differentiation are quite low. In modern times, online booking portals have grown rapidly that also provide with international holiday packages. The company also highly relies on the review of the travellers that can considerably erode the market share of the company. In addition to these the company has also faced bankruptcy in recent times.

Recommendation in relation to Experience that should be added by Cox and Kings to improve their total brand experience

From the above discussion it is evident that Cox and Kings are facing some major issues. Some recommendations can be provided as to how the company can mitigate these issues. For instance Cox and Kings can involve a new product to their travel portfolio, The company can arrange for the masterclasses of the guests with renowned chefs. The company can further arrange for the visiting of the guests to organic firms. The guests could view and know about the different types of fruits and vegetables that are naturally grown in the farm. After that they can pick the vegetables, spices and fruits of their choice and bring them into the kitchen. Next, with the supervision and help of the chefs the guests can cook food according to their choice.

If this new product is introduced in the product portfolio of Cox and Kings, the customers or guests of the company will have particular experience. This can be described through Glimore and Pines 4Es. The Cooking under the supervision of the chefs will be education as well as entertaining for the guests. Moreover, the aesthetic recipes suggested by the chefs will help them to help them to overcome their escapist nature during cooking.

Section 2 - Communication Plan

From the recommendations provided above, several objectives can be identified which have been outlined in the following.

• To increase the market value of the brand.
• To draw attention of the people and boost brand awareness.
• To increase customer reliability through efficiently utilizing the Experiential marketing approach.
• To build b relations and maintain proper communication between the company and the targeted audience.

To suitaibly address these objectives, a communication plan is necessary. In this Report the RACE model has been used to prepare a suitaible communication plan for the company. Core aspects of the Race model has been demonstrated in the following

2.1 Race Model

In Race Model the word Race stands for Reach, Act, Convert and Engage. The first aspect that is Reach is important during the stages of planning of any marketing strategy. Target audience, demography and what are the requirements of the customer are all important in the early stage of developing a suitable marketing strategy. The second step in the Race model is Act (Dilami, et al., 2021). This step helps in defining what core information needs to be communicated and the way through which thecommunicationcan be done efficiently to the targeted audience.

The third phase within the Race model is the Convert phase. Here a particular individual will be responsible for distribution of the content generated during the action plan. Some resources which could be highly helpful in this step include contact list and media contacts as they can efficiently assist in disseminating information (Rautela, 2021). The last phase is the Engage phase which helps in critically assessing and measuring the public relations strategy achievements Different aspects such as calculating the Return on Investment is important in this stage.

Significance of using RACE Model

RACE Model helps to develop a strategic action plan for businesses. It is for public relations, communication, action planning, and evaluation-related facets of growing a business. RACE model stands on the ideals of research (understanding of stakeholders, market, consumer base, etc.); action and planning (research will lead to the taking of some necessary actions which are specific, realistic, and attainable, and to go about such actions proper planning is required.); relationship building through communication (maintaining honesty, transparency, etc. to build consumer trust so as to create positive relationships and maintain a social responsibility of serving); evaluation (an ongoing process of finding the outcome of campaigns, objectives, etc. to guide the business through future prospects) (Goldfarb & Tucker, 2019).

It is structured in four stages or phases-

1. Reach- This deals with creating of building brand awareness, to the extent possible. In the case of experiential marketing, the reach can be achieved by providing the brand experience to the customers. The aim is to build traffic through collaborating with other sites, and using earned, owned, paid media touchpoints to create multiple interactions.
2. Act- The act mainly involves interacting with the consumers and potential consumers so as to generate leads. Moreover, it is about persuading or influencing the minds of the consumers to initially visit the site and eventually opt for the services.
3. Convert- This is the final step every business tries to achieve. In this step, the potential consumers finally turn into consumers by adopting the services. A final inducement might be made from the side of the business to influence consumers and thereby increase the conversion rates.
4. Engage- Engaging with consumers have a lot of functions- it aims to establish a sense of trust among potential consumers and first-time buyers, it tries to generate repeat customers, it also tries to build customer loyalty through its direct interactions, availability, and a responsible social presence and therefore engagement helps in boosting customer lifetime value (Chu, et al., 2020).

Goals

• Creating a special low budget travel section under which the service will be more relatable and the first choice of an ordinary man. This is to be achieved through the provision of brand experience and ultimate benefits, which makes the company distinct from its competitors.
• Looking out for customers. Aiming for sustainable profits so that the profits do not come at the cost of consumers and their experiences.
• Increasing brand awareness, recognition and its market worth. This is to establish the company as a noteworthy competitor and to look for not only the present successes but future prospects, opportunities and benefits.

Conclusion

Throughout the report, the topic of experiential marketing has been discussed. This has been done through discussion of different theories, and advantages and disadvantages of the marketing approach

In addition to these, several recommendations have been provided which will be further used for preparing a communication plan. For preparing the communication plan the RACE model has been used (Harrison, et al., 2017). The significance of the model has been given and several goals for preparing the communication plan has been identified. This plan has been highly helpful in attracting as well as maintaining communication with the target audience that is tourists and travellers. The communication plan that has been provided in the section two has help in giving a better understanding about the topic.

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