Table of Contents

1.0 Introduction ........................................................................................................................ 2 1.1 Objectives of this report ................................................................................................... 2 1.2 Overview of Walkers Tours Limited (WTL) .................................................................... 3

2.0 Methodology ....................................................................................................................... 4 2.1 Marketing Concepts / Philosophies / Orientation ............................................................ 4 2.2 McKinsey 7S.................................................................................................................... 4 2.3 Branding and its Importance ............................................................................................ 5 2.4 New Product Development .............................................................................................. 6

3.0 Current Marketing Orientation of Walkers Tours ........................................................ 6 3.1 How to create Marketing Orientation with use of McKinsey 7S ..................................... 7

4.0 Branding at Walkers Tours ............................................................................................... 8

5.0 How the Market Dynamics are been identified? ........................................................... 10

6.0 New Product Development (NPD) Process at WTL ...................................................... 11

7.0 Conclusion ........................................................................................................................ 12

8.0 Referencing ....................................................................................................................... 13

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1.0 Introduction
Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customers point of view . Business success is not determined by the producer but by the customer. By Peter Drucker

Therefore when it comes to Hospitality and Tourism, travel trade marketers should be able to make consumers dreams come true, by offering unforgettable experiences which they can hold closer to their heart throughout their life. Main purpose of any organization is to create and maintain satisfied, profitable customers, therefore managers should look in to new ways in generating more satisfied customers every day, because the most important thing what they leave is positive word of mouth, which becomes anonymous profit generating factors in the long run. This has a huge affect especially when it comes to Tourism Industry.

1.1 Objectives of this report

Identify the orientation which prevails within the organization Get a understanding about current Brand Management strategies How Market Dynamics are been identified from the current market place And to get a more insight look of NPD process

Report will be addressing all the current issues which are taking place at Walkers Tours, with regard to creating a Marketing and Customer Oriented culture, and will address the required theories which can be used as appropriate tools to overcome any difficulties in creating a Marketing Oriented work place.

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1.2 Overview of Walkers Tours Limited (WTL)

Walkers Tours, as Sri Lankas premier Destination Management Company handles over 20% of the total organized tourist arrivals to the country. Since the beginning of the company, more than four decades ago WTL has gained a reputation for the highest levels of quality, and service levels which are hard to match. The Company offers a unique mix of programmes from customized packaged tours to special interest excursions conducted by multilingual tour guides. The professional staff of WTL can plan and operate a comprehensive range of Individual tours or Group tours, Shore Excursions for Cruise Ships, Incentive tours or Honeymoon packages and vacations that include excitement, adventure, sport, culture, education, wellness, nature or simply leisure by the beach, in rural country or in the mountains. (www.walkerstours.com). To service its clients from over 40 countries, WTL operates the largest tourist transport fleet in the island, consisting of cars, mini vans, mini and large coaches - in fact, it is the only Sri Lankan company to use European Volvo coaches. WTL is currently working with more than 1500 registered tour operates from world wiled such as Thomas Cook, Virgin Holidays, TEZ Tours, Cox & Kings, STIC Travels, Make My Trip etc. Departments are been mainly divided according to the Nationality of the clients which they handle or according to the Tour Operators which they handle. As per the clients requirements via email and telecommunicating facilities we organize different tour packagers. All the service are been outsource to different suppliers, including accommodation, transportation, adventure sports activities, water sport, etc. Therefore company has to play a very responsible role in guarantying that all the ends are met in the final outcome and customers is happy.

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2.0 Methodology
2.1 Marketing Concepts / Philosophies / Orientation
There are few main Marketing concepts such as: Manufacturing / Production Concept Focus of Production and distribution efficiency Product Concept Focus on quality improvement of existing products Selling Concept Focus on getting maximum number of sales, without thinking of long term relationships and, customer satisfaction Marketing Concept Focus on developing products and services according to consumers needs Societal Marketing Concept Focus on consumers needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumers and societys well-being. (Kotler, Bowen, Makens, 2008)

2.2 McKinsey 7S
The 7S Model specifies seven factors that are classified into "hard" and "soft" elements. Hard elements are easily identified and influenced by management, while soft elements are fuzzier, more intangible and are influenced by the corporate culture. The hard elements are: strategy, structure and systems. The soft elements are: shared values, skills, style and staff. (www.investopedia.com). Hence 7S model is an effective tool in initiating change process in the organization. One should look at the current status of these seven elements in the organization and compare with the ideal state. Which would enable the company to plan and implement a appropriate programme.

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Strategy: the plan devised to maintain and build competitive advantage over the

competition. Structure: the way the organization is structured and who reports to whom. Systems: the daily activities and procedures that staff members engage in to get the job done. Shared Values: This is a set of traits, behaviors, and characteristics that the

organization believes in. This would include the organizations mission and vision. Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company. (www.mindtools.com).

2.3 Branding and its Importance

Heart of a successful brand is a great product or service, backed by careful planning, a great deal of long-term commitment, and creatively designed and executed marketing. A strong brand commands intense consumer loyalty. (Kotler, Keller, 2009) Strong powerful branding is a vital factor for achieving sustainable competitive advantage in any market, because it gives and edge which will enable your brand to be on the top among other competing brands.

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2.4 New Product Development

Companies need to grow their revenue over time by developing new products and services and expanding into new markets. New product development shapes the companys future. Improved or replacement products and services can maintain or build sales; new to-the-world products and services can transform industries and companies and change lives. (Kotler, Keller, 2009)

3.0 Current Marketing Orientation of Walkers Tours

When the current marketing efforts are been closely examined at WTL, it can be identified that the organization is practicing Marketing Concept to a greater extend, but primary concern is about the numbers they produce more that customers satisfaction.

Marketing concept is a more recent business philosophy and one that is being rapidly adopted in the hospitality industry, this helps to meet the organizations goals by creating long-term customer relationship based on customer value and satisfaction. Therefore today many organizations practice this concept, such as Four Seasons Hotels, Accor, McDonalds, etc. As per Herb Kelleher, CEO South West Airlines, We dont have a Marketing Department: we have a Customer department. This example clearly shows how much companies have become marketing oriented, and how much their concern about their customers has grown. Because long-term customer relationships are the most important asset any organization has to achieve sustainable competitive advantage in the long run.

Currently WTL is trying to have a close relationship with the agents they work with by going on sales visits to those countries and by meeting them to promote the business. Also WTL provide Free of Charge Educational Tours to the main agents who gives the most of the business, this had worked very well for WTL, because this gives the first hand experience for the agents to enjoy a well organized Sri Lankan Tours and also to meet the executives who they corresponded with daily, over the years this has becomes a very bonding experience with our main connecting parties, who gives us businesses.
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For countries such as India, Middle East, WTL provide mainly customize tour packagers according to the clients requirements. But for countries such as Russia, UK, France and Italy most of the businesses are promoted through seasonal and promotional packagers which we send to our agents. This also depend on the agents who we work with, some agent prefer pre made packagers, while some demand for extremely customize tours. Special Interest tours such as Adventure Sports, Team Building, Nature Tours, are been offered according the clients requirements. Therefore WTL practice marketing orientation and try to satisfy the consumers with their special request, but all these matters according to with agent they come through.

3.1 How to create Marketing Orientation with use of McKinsey 7S

Today Travel and Tourism market is getting extremely saturated with so many new entries, therefore WTL as one of the most pioneer and leading Destination Management Companies (DMC) in Sri Lanka, must have to focus more on becoming a marketing and Customer oriented company without focusing more on numbers. Numbers can be achieved easily, once the customer satisfaction and long-term bonds are been set for a life time. Application of McKinsys 7 S Strategy: There should be a strategic plan on where WTL wants to be in another 5, 10, 20 Years, and how to achieve it. Structure: Organization structure must be more flat, and employees must have to be more empowered to carry out their job more effectively. Systems: With use of new technology, every employee must be given Google access and Skype chat availability to keep a better rapport with agents, and new systems must be introduce to do the daily work more effectively. Shared Values: Organization Vision and Mission must be emphasize more frequently, may be by posting it on company survey, and importance of customer satisfaction must be communicated to all the employees at every level. Style: Larders must work more closely with lower level employees, and correct guidance is important to build the future of the organization.

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Staff: Employees must be hired for their attitude, any must be trained to develop the skill, because job doesnt require many skills, but it requires a lot of positive attitude to give an outstanding service to a very demanding client. Skills: This can be developed by giving, more on-the-job training and by arranging filed visits, which gives the first hand experience to enjoy and lean the art of tourism.

4.0 Branding at Walkers Tours

One of the ways in which organizations signal their positioning and competitive advantage is by creating a distinctive brand image. A brand name gives the product and early recognizable identity. It promises reliability. People prefer to buy from someone they recognize than from strangers. The brand image says, We are wellknown firm with a professional approach to our business and a reputation to maintain. Trust us. A brand name also promises consistency. When a consumer opens a pack of Kelloggs or Heinz Baked Beans, they know what theyre going to get exactly. That is why people prefer to buy branded goods rather than loose products in brown bags. (Morgan, 1996) In the same way, the shop-front designs of Thomas Cook or Going Places travel agencies promise a consistent travel of service and range of products. It saves customer having to spend time checking the reputation and specializations of the agent before entering.

In most instances WTL work as the middle party between a travel agent from another country and a consumer who wants to come for a vacation in Sri Lanka. Therefore WTL should develop a brand name for reliability and consistence of service among other tour operates as well as consumers, because this gives an huge competitive advantage, when it come to a closing a deal. WTL has the advantage of quoting for a higher price due to the high service standards which comes with their branding. Therefore WTL must focus more on building their Brand Equity and using it to promote the products and services accordingly. Currently WTL doesnt focus very much on building and promoting the brand. WTL doesnt have any special department or set of people who consistently works on promoting the business and on developing the Brand.
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Brand focus and effort putting in building brands have been very low over the years, but as the tourism is picking up with end of civil war in the country, I think its high time for WTL to give more attention on promoting their business with use of correct branding strategies. Only brand which WTL has focused so far is on Nature Odyssey which mainly promotes Nature and Adventure tourism. I think it is a good start, because nature and adventure tourism sector is growing rapidly, at the same time WTL should focus on developing the Mother company brand as well as coming up with sub brands to focus on different segments of the markets.

Brand Equity is the added value endowed on products and services. It may reflect in the way consumers think, feel, and act with respect to the brand, as well as in the price, market share and profitability the brand commands for the firm. (Kotler, Keller, 2009) Brand Equity must be build by creating the correct knowledge structure with the right consumer. As WTL provide an intangible service, company has to make sure that they sell and visualize their brand at every possible point. Almost 98% of deals are been done via email, so executives can use the company logo with their signature, and can state that WALKERS TOURS LTD AWARDED BEST INBOUND TOUR OPERATOR FOR THE YEAR 2010 BY SRI LANKAN TOURISM BOARD because these little facts can help to improve the brand image and give a feeling of credibility and reliability of the service to the clients and agents. Also company must develop a strong slogan, which they can use with the Signatures, in Tour Packagers, Customer Feedback Forms, in Buses, Paging Boards and everywhere, where customer get a direct link, and this must illustrate the real personality of the brand to the consumers.

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5.0 How the Market Dynamics are been identified?

Trends of tourism keep on changing every day; therefore consumers start demanding wider variety of service every day. As a well established DMC, WTL should be concerned about the future demands and changing life style patterns of consumers well in advance. Anticipating the customer needs and pro-actively preparing to meet their needs will provide a competitive advantage to WTL. If WTL want to be the Premier Destination Company as it statured in the vision statement, company should be more concerned about the identifying market dynamics and consumers ever changing demand pattern more closely. Therefore, WTL has to use Quantitative and Qualitative market research techniques to recognize the changing market place, because presently company doesnt conduct any major activity in gathering customer feedback and about their future expectation. Current feedback form which is been given to customers only addresses about the satisfaction level about the hotels and the guides, it doesnt ask any comments on how the service can be improved, and are their willing to visit again, and what would they like to expect on their next visit. These two questions can help to get a good insight about the future market trends in the tourism industry.

Currently WTL is not showing any concern about collecting data and gathering information about the current market situation and about predicting the future trend, but this cant be followed any longer. As one of the leading DMCs in Sri Lanka, WTL now has to put more attention to these areas, because company cant adopt a more marketing and customer oriented culture, without knowing what really matters to their customers, if not future success becomes doubtful to WTL in the long run.

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6.0 New Product Development (NPD) Process at WTL

Today ever company has to be good at developing products, disregard of the industry and the market they operate. It also has to be good at managing in the face of changing tastes, technologies, and competition. Every product seems to go through a life cycle; it is born, passes through several phases, and eventually dies as younger products come along that better serve consumer needs. All hospitality companies and tourist destinations must continuously be alert to trends and ready to try new products. According to the research done in hospitality and tourism industry, it shows that half of the profits come from products and services which didnt exist ten years ago. There for NPD is a vital factor which WTL should be concerned about, because it can be the changing factor for the future growth of the company.

WTL has started working on this from resent past, but still not in a mega scale. Currently one executive and Manager is been allocated for NPD process, and they try to come up with different tour packagers, and also to find new tourist attraction, which we can promote to the world. Idea generation is very important when it comes to NPD, therefore WTL now encourage and reward employees who come up with effective NPD ideas, and customers are another good source to collect new ideas, which the company doesnt use currently. Suppliers are the people who directly serves the consumers, therefore they get direct feedback from consumers changing demand, so WTL must gather data from suppliers as well, because by generating many ideas only we can select few good once to implement.

To achieve great results from NPD, companies should follow the NPD eight step program. Starting from Idea Generation, Idea Screening, Concept Development it goes up to Test Marketing and commercialization. Most of the time, 9/10 NP are failures, this happens because, companies doesnt give attention to all of these steps, NPD can bring great results, but it should be implemented with utmost care. Therefore WTL must give more attention to NPD process, and should put a real effort on coming up with NPs which will fit in to the future customer needs and wants.

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7.0 Conclusion
Focus of marketing is to understand the consumer needs and provide a service that exceeds customer expectations, therefore organizations are working together with customers to develop relationship based on trust. This becomes even more critical in leisure services, where there is nothing tangible for customer to examine beforehand or to take away afterward. Customers pay money on promise of receiving an experience, but experience can depend on the interaction of staff they meet with. Therefore quality of the service can be variable, at the same time they cant be stored for later use, because of perish-ability. In leisure and tourism sector what is even more significant is marketers are competing for consumers spare time and disposal income. There is nothing essential about a holiday, therefore skill in leisure marketing lies in creating value, in packaging and promoting the experience so that the customer feels he/she must buy it, and buy it from us rather than a competitor.

Therefore WTL as one of Sri Lankan largest and pioneer DMC must give a more focus on creating a Marketing Orientated culture. And this message must be communicated very clearly to all the staff members from top to bottom. More clear the message is, and more frequently it is been recalled, and more effort that goes in will decide future success of the organization. McKinsey 7S model can be very useful to WTL, if it can be implemented and practiced well, because it gives a clear strategic direction on creating a marketing oriented culture within any organization.

WTL must give more attention on finding the Market Dynamics and on NPD process. Future success of the organization depends on these factors. Today companies are moving from marketing orientation to societal marketing concepts, therefore there is lot of caching up to be done in the area of improving the marketing strategies of the organization to make sure that company remains in the position of Premier Destination Management Company in Sri Lanka.

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8.0 Referencing
Johnson, G, Scholes, K, & Whittington, R, (2009), Exploring Corporate Strategy, 7th Edition, Pearson Education in South Asia.

Investopedia - www.investopedia.com, [Retrieved on 01st September 2011]

Kotler, P, & Keller, K. L, (2009), Marketing Management, 13th Edition, Prentice Hall, New York.

Kotler, P, Bowen, T. J, & Makense, C. J, (2008), Marketing for Hospitality and Tourism, 4th Edition, Pearson Education in South Asia.

Mind Tools - www.mindtools.com, [Retrieved on 01st September 2011]

Morgan, M. (2006), Marketing for Leisure and Tourism, Prentice Hall, Europe.

Walkers Tours - http://www.walkerstours.com/aboutus.html , [Retrieved on 21st August 2011]

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