Contiki Tours : Marketing Strategy Analysis

Essay by Chloe123University, Bachelor'sA+, March 2004

download word file, 2 pages 0.0

Contiki Tours is an organisation that offers packaged holidays to a variety of local and international

destinations. Their targeted market is limited by age. Clients must be between 18 and 35 years old.

The analysis will focus on Contiki *s Australian market for international holidays.

Contiki have adopted a concentrated marketing strategy in identifying market segments. This means

that they have elected to focus their marketing efforts on gaining a high share of one particular

segment of the market (i.e. 18-35 year olds). The advantage of such a strategy is that it allows

specialisation which may produce economies in production, distribution and promotion. However, it

does entail some risks in that market needs can change or competitors may enter the segment. The risks

and benefits of this strategy will be examined more closely in the analysis of the marketing mix.


In order to assess the effectiveness of Contiki's marketing strategy it is important to understand the

nature of the product offered by the organisation in terms of the benefits that it provides.

Broadly, it

is a service product (eg. flight, bus trip, food preparation) although elements of the product are

physical (eg. food, t-shirts). It is a specialty product given that it meets a specialised need and

consumers are willing to spend quite some time searching for and evaluating. It is also purchased

infrequently. It would also be considered a high involvement product due to the relatively high risks

of purchase. The notion of purchase risk will be explored in more detail in an analysis of consumer



The nature of the product, characteristics of the target market, and consumer behaviour each have

important implications for pricing. It should be noted that the price paid for the product by the

consumer involves more than the nominal price (i.e.