AUSTRALIA TOURISM E-COMMERCE STRATEGIC PLAN | My Assignment Tutor

“AUSTRALIA TOURISM E-COMMERCESTRATEGIC PLAN”Table of ContentsIntroduction…………………………………………………………………………………………………………………………..1Company Overview ……………………………………………………………………………………………………………….2Australia Tourism Overview ………………………………………………………………………………………………….4Background of Chinese Tourist………………………………………………………………………………………………5Analysis…………………………………………………………………………………………………………………………………6Political Factor…………………………………………………………………………………………………………………….6Economic Factor………………………………………………………………………………………………………………….6Social Factor ……………………………………………………………………………………………………………………….6Technological Factor ……………………………………………………………………………………………………………6Environmental Factor …………………………………………………………………………………………………………..7Legal Factor ………………………………………………………………………………………………………………………..7SWOT Analysis……………………………………………………………………………………………………………………..8Internal Analysis………………………………………………………………………………………………………………….8Tourism Australia Strength……………………………………………………………………………………………8Tourism Australia Weaknesses…………………………………………………………………………………….10External Analysis……………………………………………………………………………………………………………….10Tourism Australia Opportunities………………………………………………………………………………….10Tourism Australia Threat…………………………………………………………………………………………….10Strategy……………………………………………………………………………………………………………………………….11Market Segmentation………………………………………………………………………………………………………….11Targeting……………………………………………………………………………………………………………………….12Positioning …………………………………………………………………………………………………………………….13Value Proposition …………………………………………………………………………………………………………..14Action Plans…………………………………………………………………………………………………………………………15Digital Marketing and Social Commerce ………………………………………………………………………………15Security and Payment Methods ……………………………………………………………………………………………16Order Fulfillment ……………………………………………………………………………………………………………….17Mobile Marketing ………………………………………………………………………………………………………………17Conclusions………………………………………………………………………………………………………………………….18References……………………………………………………………………………………………………………………………19IntroductionTourism involves hundreds of millions of people travelling the world each year. WorldTourism Organisation (WTO) said that the estimated international travelers during 2001reached 698 million. In the history, traveling is expensive and difficult (Williams, 1998). Tobe able to travel you must consider a lot of things: Food Expense, Lodging, Pocket Money etc.Nowadays, traveling has become cheaper and less complicated in the last 150 years and hasbecome one of the motivations for travellers to explore the world. Therefore, the number oftourist is increasing every year. The growth number of tourists also led to competitive rivalryin the tourism market share.Tourism Australia acknowledges that to be able to compete in tourism industry, traditionalway would not work as much as expected in this modern globalisation. E-commerce becomemore effective, attractive and bond to people in a bat of an eye. Social Media and all Marketingtools integrate with cutting edge technology enable the Organisation accomplishes its researchand reach its target market easier.The urge to obtain more tourists come to Australia, specifically tourist from China. TourismAustralia would analyse its output data, information and performance to measure its favourableand unfavourable position. Also, structure the new strategy and actions plan to improve itsservices and gain more Chinese tourists visit Australia.Company OverviewTourism Australia: formed under the Tourism Australia Act 2004 as an AustralianGovernment Commonwealth Corporate Entity.Responsibility: Attracting international tourists to visit Australia both for leisure and businessevents.Constitution: Under the Australia Act 2004 and the Public Governance Performance andAccountability Act 2013.Tourism Australia ManagementManaging Director : John O’SullivanChief Marketing Officer : Susan CoghilExecutive General Manager Event : Penny Lion(Source: Tourism Australia Corporate, 2019)Up to date, “Tourism Australia active in 15 key markets and activities include advertising, PRand Media Program, Trade Shows and Industry Programs, Consumer Promotions, OnlineCommunication and Consumer Research. The global Marketing Purpose is to invite the worldto experience the Australian way of life”.• United| One Team• Positive| Optimistic• Genuine| Authentic• Commercial|Deliver Result• Innovative| CreativeThinker• Maximisetourismcontributionto Australia’seconomy• To grow demandand fostercompetitive andsustainabletourism industry• To be the mostdesirablecountry andmemorabledestination onearth Vision PurposeGoals ValueIn 2018-2019, Tourism Australia will continue to bechampion Tourism 2020 and Corporate goal forTourism 2020 is set between $115 billion – $140billion overnight visitor expenditure. (Source:Tourism Australia Corporate Plan, 2018)2018-2020LookingBeyond 20202015-2017Seeing theResult2010-2014 Setting theFoundationAustralia TourismThe growth for the Tourism Industry is said to be expanding due to developing marketswhich includes China and is approximately one of the largest contributors to Australianeconomy specifically for tourism industry by the year 2020. China was announced as thequickest growing tourist market in 2013.As seen in Figure 1.1 below, the number of tourists in Australia is increasing every year whichgives the country a positive outlook for the years to come.Figure 1.1During 2014-15 Australian tourism has employed 580,800 people with 5% of the labor forceand 43.7% of the employed tourists were part time. However, the number of visitors fromChina doubled to 626,400 (Figure 1.2) from 2006 to 2012 which reached the zenith andoutweighed the number of visitors coming from UK.Figure 1.2 Year by Year TrendIn this report, we will be studyingthe behavior of Chinese touriststowards Australia. We have seen alot of Chinese migrating in thiscountry and at the same time whoare students. Businesses are mostlyowned by Chinese people and wewill get to know more about theirculture and the reason behind their migration leaving their home-country at once.Background of Chinese TouristsDemographics & BehaviorAccording to research, tourists coming from Western places can be a bit tough toacquire an extensive understanding with the context of Chinese civilization and theuncommon claims of Chinese travelers. In 2018, China has become the largest inboundmarket for Australia’s visitor arrivals and the biggest merchandise for total spend and visitornights. Seeing the growth of Chinese population in Figure 1.4 is tremendously active in themarket of Australian tourism.Figure 1.4 Australian Bureau of StatisticsAnalysisPolitical FactorsIn 2026-27, continuous growth is anticipated with China to sustain the numbers in thenext ten years to 3.9 million. During the Turnbull Coalition Government, social and culturalties have been strengthened under Australia’s economy with China. As expected, China madetheir way to the number-one spot that goes along with the recent completion of China-AustraliaYear of Tourism. The link between the two countries was noticed by the Year of Tourismadvertising opportunities to further develop a two-way travel and to give honor with Chinamarket for the industry of Australia’s tourism.Economic Factors$10.9 billion is being spent by Chinese tourists during their holiday in Australia withjust the intention of travelling. According to statistics, China has the biggest population leadingto 1.38 billion people which means that less than 1% of their people have visited Australia.Chinese are extravagant shoppers. Their indulgence is to travel and spend whatever amount ittakes. According to Australian Bereau Statistics, there were 1.39 million visitors from Chinaas of February 2018, with the growth of 13.2%.Social FactorsWith the challenge of the growing numbers by Chinese tourists (Li, Harrill, Uysal,Burnett, & Zhan, 2010; UNWTO, 2011), a new researched was developed to giveunderstanding to the Chinese market. In comparison with western travelers, Chinese touristhave their own expectation with regards to the service and amenities, choices of food, andshopping behavior. Chinese tourists as compared to Westerners vacation values, it wasproposed by Fu, Lehto, and Cai (2012) that both groups enjoyed scenic views, food andsocialization with other people during their trip.Technological FactorsSocial media have impacted the behavior of Chinese tourists in its role in Australia andis deserving of its commendation. 564 million Chinese were classified to be active on socialmedia at the end of 2012. Moreover, Chinese travelers have been constructed to be fullyassociated with social media (Kristensen, 2013; Shao et al., 2012). Overall the tourist marketfor Chinese is complicated.Environmental FactorsChina experience winter and summer which is somehow correlated with the weather inAustralia. Tourists coming to Australia, with not only pertaining to China, they tend to studythe weather behavior before travelling to a different country. There are different factors to beconsidered when travelling overseas and considering weather is one important componentwhen it comes to travelling.Legal FactorsSince China has become the source of tourism for Australia with 1.35 million visitorsand gaining $11 billion annually, tourism experts have teamed up to give focus with studyingthe behavior of Chinese tourists travelling to Australia. China-Australia Year of Tourism hasbeen formally named last 2017. Approved Destination Status (ADS) guarantees its bestadventures during group tours travelling to Australia and has been the greatest demand sincethen. The strong tourism partnership with the said countries have been stronger since thebeginning and has been the main feature succeeding the inauguration of its China-AustraliaYear of Tourism in 2017 by Minister for Trade, Tourism and Investment – Steven Ciobo andDr. Li Jinzao, the Chairman of the China National Tourism Administration (CNTA).StrategyMarket SegmentationThe rich cultural and geographical heritage of the Commonwealth of Australia makes the latterone of the best possible places to visit on the planet. In order to ensure the attraction of themaximum possible number of visitors to these shores, the initiation of proper marketsegmentation process is essential. Market segmentation is regarded as one of the core elementof marketing (Press & Simms, 2010). Kotler and Roberto (1989) support the idea that Strategiesmust be tailored to suit the needs, wants and behavior of theFocusing on the above figures, for the success of our e-commerce strategy, we will segmentthe Chinese market into two main segments. First is high leisure tourists (including visitingfriends and relatives) and second businessmen. The high leisure tourists generally visitAustralia for exploring aquatic and coastal attractions, experiencing the taste of Australian foodand wine. They are also interested in sightseeing and adventurous experience at natural andwildlife attractions and gaining memorable experience of local culture. On the other hand,Businessmen come to take part in business events. The good relationship between Australiaand China has also been helpful in the establishment of a proper industrial relation between thecountries, with China being the largest trading partner of Australia (Pham, Nghiem and Dwyer,2017). We will focus the people aged between 20-60 years including both working and retiredmen and Women who want to visit Australia for holidays and business activities. In regards togeographical segmentation, our targeted cities will be Beijing, Guangdong, Shanghai, Jiangsu,Zhejiang and Hubei. We will focus on these cities because the research survey shows that theseare main cities of China, the most tourists come from (Tourism Research Australia, 2018).Source: International Visitors Survey (Tourism Research Australia, 2018)TargetingTargeting involves the evaluation of market segments and the selection of target marketsegments. Differentiated marketing is the most common target market approach used in tourismnowadays. It focuses on target several segments with different offers for each segment(Tsiotsou and Goldsmith, 2012). The targeting of the different market sub-segments of Chinesetourists to Australia is an essential factor for consideration. Based on our segmentation, ecommerce strategy will focus mainly on mobile users who access internet and social mediaapps in their routine life. Tourism Australia has its collaboration with online travel portals suchas Ctrip.com, Qunar.com, Tongcheng.com and Tuniu.com (Corporate Plan, Tourism Australia,2019). So through these portals, it will convey its offers and messages to Chinese people aboutthe tourist attractions and world best experiences.Our e-commerce strategy will also pay attention to the affluent people who have the potentialto spend and invest more money while visiting Australia. This will help to generate betterfinancial growth and opportunities for Australia. Some of the main features and aspects of thetargeting strategy for Tourism Australia have been provided below: Targeted Market SegmentTargeting StrategyLeisure Tourists (Affluent and who useinternet/social media in their routine life)Promotion of Australian adventure tourismspots like Margaret River and the GreatOcean Road, natural beauty, food and wineand Aquatic and coastal attractions usingplatforms like social media websites, appswith the help of images, videosaccompanied with package offers withdiscountsBusinessmen(Affluent and who useinternet/social media in their routine life)Promotional strategies (featuring the bestqualities of the Australian accommodationsand business growth opportunities) inonline measures The implementation of appropriate focus on all the targeted market segments is necessary forthe procurement of success in attracting even higher numbers of Chinese tourists in Australiaand ensuring that they partake in Tourism Australia’s services.PositioningSince Chinese market is one of our best potential growth, being an economic powerhouse, andaccording to our market overview in 2016, Chinese travelers was the second largest inboundfor visitor arrivals, and the largest market in total spend and visitor nights, Tourism Australiawill invest a full project of marketing activity in China, to achieve our >$6 billion forecastvalue in 2025.Tourism Australia position itself to propose a creativity strategy online to promote the appealfactors that attract Chinese tourists to Australia, especially for holidays purpose, which wasmentioned in SWOT Analysis, the keys drivers of destination choice, including safe andsecurity feeling, friendliness of the people, Australian natural attractions and wildlife, wine andfood experiences.To explain why Australia is the best choice to visit, is essential to mention in additional thatAustralia has over 10,685 beaches, over 500 national parks and 8,222 islands, so it is clear thatAustralia can offers a unique experience to every kind of travelers, through its unbelievablesize, whether if they are looking for an island getaway, cultural experience, adrenaline, touchwith nature and its vast wildlife, or big cities’ experiences, such as business and entertainments.Below are descripted some examples about what Australia has to offer and what make it sounique and unforgettable.• Spots for camping, great outdoors to spend few nights• Breathtaking waterfalls: spectacular natural waterfalls and rock formations• Experience Aboriginal cultural: Canberra and other regions can offer optionalguided Aboriginal tours• The main cities offer different life styles• Great winery experiences, including South Australia and Tasmania for example.• Best food and drinks festivals, featuring local produces, wine, beer chats and spiritsaround the country, including Western Australia Gourmet Escape, Perth, SwanValley and Margaret River, Tasmanian Whiskey Week, Hobart, Tasmania,Canberra Truffle Festival, Canberra, Noosa Food & Wine Festival, Noosa,Queensland, The Grampians Grape Escape, Dunkeld, Victoria, Tasting Australia,Adelaide, South Australia, Orange F.O.O.D Week, Orange, New South Wales andMelbourne Food and Wine Festival, Melbourne, Victoria.To explore all this experience, Tourism Australia website the tourist can plan its trip, havingtips for destinations, accommodations, available tours, information about weather Australia,and other information.Value PropositionThe presence of a combined travel package that can let a Chinese tourist experience thewonders of both the Australian cities and the aesthetic natural features will be one of thegreatest offerings of our e-commerce strategy for Tourism Australia. Furthermore, it will alsoensure that the tourists (including both leisure and business tourists) actually gain a completeexperience of almost all kinds of Australian attractions (both natural and man-made) inaccordance with the procured packages. The perceived value of the provided services on thepart of the Chinese tourists and the level of expectations that they have regarding the offeringsof Tourism Australia has to be exceeded. This can lead to the management of a high level ofcustomer satisfaction as well, thereby leading to the retention of a proper marketing positionfor the reviewed company on a consistent basis.Action PlansIn order to make the marketing strategy sustainable, providing the value for tourist is essential.Consumer behaviors would be analyzed at the first step. There are two different types of factorsaffect tourist’s destination choice. First, motivation factors which will refer to comfort, climaticconditions and nature and wild life are inbuilt characteristic; second, concern factors which aresecurity and safety, affordability, food availability, friendly open citizen and transportation(Dahiya, Kirti & D.K Batra, 2016).Nowadays, safety and security gradually become the first concern factors for tourist. TourismAustralia as non-profit organization is intrinsic trustworthy. However it must be reachable bypotential tourist in China, and the best way is to cooperate with official and travel-relatedorganization. Consistent content sharing is attractive for Chinese tourism related organizations.Because they need to process destination’s information to make their own tourism product andhold the value added event.Digital Marketing and Social CommerceChinese tourist search travelling information with online resources account for 72%, travelwebsites and blogs (51%) and social media (21%) respectively, and others are traditionalchannel travel agents and tour guides(24%) and print publications(magazines, newspapers). Sothe digital marketing will be the main choice to implement the marketing strategy. The mostactive social media platforms are Wechat, Qzone, Youku and Sina Weibo. Recently, the shortvideo become most attractive content delivery method for people in China, so the Tiktok willbe the most popular alternative platform to broadcast. To create brand awareness, we choosethe Wechat official as the text based content sharing platform and Tiktok as the video basedcontent platform. Wechat official have biggest and widest users in China, and Wechat officialprovide almost all the services which always provided by apps or website as content sharingcompany. Tiktok’s decentralized algorithm brings the possibility to attract thousands of fans inone night.(Source: Kizmaz, 2019)(Source: Kizmaz, 2019)Security and Payment MethodsAll the popular platform provides third party payment method, such as Alipay and Wechatpayment system which are wildly used in China. And also all these platform provide theVISA/MASTER worldwide payment methods. Tourism Australia collaborates with itspartnership to increase their security system and minimize scam.Order FulfillmentChinese people are rarely to visit an unfamiliar website directly because it is very expensive toaccumulate users and promote the website directly. However, platforms and social mediaprovide affordable internet traffic for starters. When tourist visit Tourism Australia Wechatofficial or Weibo, Tourism Australia can import the tour package from tourist companies, andtourist can pay directly through these platforms.Mobile MarketingIn China, the smart phone penetration rate is 55.3%, and in the city the ratio will be muchhigher than that. The whole Australia tourism experience can be improved by an integratedmobile phone app. The one-stop app can be the main mobile internet entrance when Chinesetourists come to Australia. The app can integrate local information from different state inAustralian and provide Chinese version as well as can be downloaded in the Chinese app store.The most important index of the app summarize as user experience. For tourism industry, thesource of user experience is nature environment, security, convenience, local culture,accommodation and so on. Artificial-intelligence is wildly applied in China now, and thedevelopment of the app could introduce Tencent, which has the experience to develop tourismwith the tourism in China. And also the characteristics of Australia tourism and Australianservices can be showed in the app, air quality index, traffic flow index, accommodation index,and local food index and so on. The app demonstrated the combination of advanced technologyand original nature environment which are most attractive part of Australia.WeChat Platform Design for Tourism AustraliaConclusionsTo sum up, although Tourism Australia has managed to maintain a proper marketing positionon a consistent basis but to develop a competitive advantage in today’s globalization era, itneeds compatible and innovative e-commerce strategy that can help to attract more tourists. Itis necessary due to the growing engagement of people in using social media since it very fewpeople use the traditional way of planning their trips or holidays through travel agents, TV orradio advertisements. Therefore, an effective e-commerce strategy is essential to increasenumber of Chinese tourists to Australia as they are top most visitors to Australia and also spendmost money as compare to other people from different countries. To fulfill this goal under thee-commerce model Tourism Australia ensures a higher level of its resources allocated for thecontinuous betterment of the customers perceived value aspects. The initiation of theOrganisation’s action plan can potentially enable the reviewed of Tourism Australia to be moresuccessful in attracting a higher number of Chinese tourists to the Australian shores in thefuture.ReferencesAbs.gov.au. (2019). 5249.0 – Australian National Accounts: Tourism Satellite Account, 2017-18.Anon, (n.d.). 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