Tourism in Turkey

One is to do a painting holiday in Tuscany and the there is to do a walking holiday in Turkey. Igor Anions created the Anions matrix, there are four different types of strategy within his matrix that have to potential to be market development, these include; Market Penetration, Product development, Market development and Diversification. Jeremy is planning broadening the company to a wider audience (which was frowned upon by the senior executives and his sister Caroline), he plans on doing this by introducing a new holiday which is to do a painting holiday in Tuscany which is more expensive by approximately IEEE.

This is known as versification in Nations matrix, this is the ultimate business risk, as it forces a business to operate completely outside its range of knowledge and experience. If Jeremy was to take this risk it would mean that his clients would receive tutoring on water color painting, the group sizes would be a maximum of 12 which means increasing the price to meet the costs, they would also lease a rented villa for 26 weeks to allow for successive groups of clients.

This is a significant amount of money that would need to be put in, in order to successfully book this activity, especially if they are leasing a villa. The reason being is that if no one was to come they would have spent the money on the lease which could possibly affect their cash flow forecast. There is also the problem that customers go to Patterson Activity Holidays Ltd’ to do physical activity holidays, so by changing the type of holiday and also charging more it is clearly shown in Appendix G that there is considerably less demand for Painting Holidays in Tuscany.

In 2010 the difference is 180 clients however the number difference does decrease to 90 in 201 5 due to the change in consumer tastes. This is a positive of why diversification may be a benefit. Patterson Activity Holidays Ltd compete with well known high street brands, due to this they may be charging cheaper prices for its, what’s deemed to be, a luxury holiday Painting in Tuscany. Therefore by potentially having a lower price which seems to be more accessible to a variety of families who are interested, they would potentially book their holiday through Patterson.

This means that they can increase their clientele base and also enter a new market segment for holidays and gain a larger share of the market. However, Caroline, Jersey’s sister who appreciates the cue rent and past success of the business sides with the senior executives and argues that mass marketing which is what Jeremy IS deciding in effect, would dilute the company’s mage and would mean that’s its reputation would be undermined. In terms of Anions, Caroline is practicing market penetration.

This is about increasing market share by concentrating on existing products within the existing market; this is the most common and safest strategy because it does not stray away from what the company knows best. Caroline does not want to sake the risk of leaving the niche market and entering the mass market of holidays. This would mean providing an alternative new product which involves an extension of walking holidays into new geographical areas such as Turkey, this would mean a minimum of 12 people and a maximum of 20.

By setting the price at IEEE per person makes it more accessible for individuals especially since the most common people to go on this holiday it 30-40. At this age they seem to have the most disposable income. Therefore due to a high amount of clients wanting to go on this type of holiday it guarantees that hey are able to cover the cost spent towards purchasing and booking the holidays and getting high quality in country tour guides.

However they are still able to gain a significant amount of profit. A downside of market penetration is that it can be too safe and therefore not allowing the company to grow to its full potential, in comparison to diversification which allows it to branch into different markets, in this case mass market. I believe that Jersey’s Marketing plan may be better for the company in the long run due to the change in consumer taste.