Team #: 125 (UG, GVT)

Client (Company): Memory Lane

Chosen target country: Germany

Product/Service (a brief description, 3-10 lines): Memory Lane provides its clients with an extra ordinary experience with a combination of scenic attractions and specialized activities. The tour includes visiting different locations depending on the interests of people. In addition to visiting rustic locations, memory lane also captures the experience in pictures and videos to make the visit memorable.

Number of pages, including title page: 19

Table of Contents 1. EXECUTIVE SUMMARY 3 2. INTRODUCTION 4 3. CLIENT ORGANIZATION AND PRODUCT 5 4. IDENTIFY KEY MARKET SUCCESS FACTORS 8 5. SELECT NEW MARKET 9 6. ENTRY MODE AND STAFFING 11 7. PRODUCT AND PRICING 13 8. PROMOTION AND DISTRIBUTION 16 9. CONCLUSION 19

1. EXECUTIVE SUMMARY

The selected organization is Memory Lane, a startup which offers a very specific kind of tourist package that offers a high degree of photo support. We expanded its service portfolio with an online planning option on their website, so that way they can offer tours structured based on the customer's` wishes.
There are many market characteristics that are needed for a service to be successful in a market. However, there are only a few that are key and must not be overlooked. The key market success factors that we chose are income level, location, and internet penetration. We feel that all three of these factors are indispensable, and if we do not have the advantage in these key market characteristics in the market that we are looking to enter, then it is better not to enter said market.
The selection of foreign markets in which it operates is a crucial decision in the internationalization of the company. The selection of a country commits the company to operate in a particular field, which lays the foundation for future of the international expansion. This indicates the intentions of the company against principal competitors and determines the basis for future competitive battles. The saturation of domestic markets, the growing number of competitors who are positioned in foreign markets, and the erosion of market share in "safe" domestic markets, makes the selection of foreign markets becomes an important decision in the internationalization to Memory Lane.
Choosing the entry mode for new market is one of the most important key for reaching success. For choosing right entry mode we took to consideration a balance of control, risk, and cost of entry for new market. We think that key to success is to find balance between those factors that we already mentioned. As for staffing main points are experience and knowledge of the staff. Cost for wages also perform a major role in staffing policy. We think that for hiring new staff in the new market the most suitable way is to use recruitment agencies, as it will save us time and we will be able to find employees which will fulfill our expectations.
To promote the markets, it is recommended to use various advertising platforms such as television and social media websites. Maximum number of customers can be targeted through these tools. The distribution strategy used will complement the entry mode strategy which is joint venture. Customers can be reached through the joint office in the new market and their official website. 2. INTRODUCTION

Nowadays, the international negotiation is a vital issue, the need to increase productivity and possible foray into other markets encourage companies to change the horizons already proposed and acquire a global mindset. This is because the expensive process of globalization has forced people to think about a world more interconnected.
This paper discusses the business proposal for Memory Lane. I will help the company to decide which market to enter by providing logical reasons. Furthermore, it will also discuss the entry mode it should select to enter and what marketing and promotion strategy to use to attract more customers. This report is aimed at helping the firm to solve its challenges and increase its sales.

3. CLIENT ORGANIZATION AND PRODUCT

Organization information
Memory Lane is a Ghanaian startup which specializes in guided tours in Ghana and around Africa. They are offering full travel package with: guided tours, accommodations, photographic services. The opportunity of customization is an important factor in their offer. They also plan to provide promotional materials. They already have an existing portfolio of photographic (photo and video) materials.

Products/services
There are competitors who are providing tailor made tours (African Travel Gateway and Nomad Africa Adventure Tours) and also who are providing wide range of tour options (Go2Africa, Geckos Adventures, Acacia Africa) and many others who are offering mostly safari tours (e.g. Viva Safaris, Visit Africa Limited). We could not find any competitors who provide similar services like Memory Line`s photographic services during the tours. Most of the competitors are providing fixed tour plans, you can search based on different features like country, price, etc. Some of them are offering a bit more customized tours, for example Go2Africa have 4 different holiday types (“Family Holidays”, “Honeymoons”, “Luxury Safaris”, “Beach Holidays”) and Acacia Africa has categorized its tours based on trip styles (“Short Safaris and Treks”, “Acacia Voluntours”, etc.). African Travel Gateway provides special Tailor Made Tours, the customer just complete an inquiry form and they get an offer based on their needs from the agency. The questions about their interests are quite opened, for instance “What would you like to do and see?”, so the customer should know exactly what he/she wants so he/she can use this option, and answer all the questions listed in the inquiry.
We would describe a modified version of the above mentioned tour services, with higher degree of customization and user friendly system and provide it via an online office/web page. Instead of fixed programs for different type of tours there will be separated programs which can be combined based on the customer`s wishes. The programs of the tour could be build up like puzzle, each piece of it is chosen directly by the customer, while Memory Lane structures it like a unique tour plan which contains everything that the customer is interested in and nothing that he/she does not.
A significant strength is that Memory Lane`s existing portfolio is innovative and it can be a new, higher level of tour services. Some of the competitors offer much wider scale of tours, but that can be a weakness for them because it is much more difficult to chose if they are offering many different tour plans so the customer can just get lost while they try to assimilate the informations about the options. Memory Lane`s online office should differ from most of the competitors web pages, because most of them is very similar. A well structured, interesting and unique web design can be basis for differentiation and also a strength besides professional photo services.
Since Memory Lane is a startup and enters the market with a new product it is crucial to avoid initial weaknesses like lack of experience in organizing tours. Some weaknesses can also occur regarding the online office, a new structure of the web page can be confusing for the customers.
Nomad Africa Adventure Tours provides German guided tours, too. Since the target market is Germany, to offer German guided tours should not be just an opportunity, but an important part of the business plan. And the above mentioned company gets in lane of the main competitors.
SWOT ANALYSIS Strengths•Authentic•Strong cultural and heritage tourism products.• Nature and ecotourism.• High satisfaction rating by visitors.• Friendly people.• Anglophone country.• Well‐connected flight network.• Developing telecomunications.• Political stability. | Weaknesses•Lack of active promotion of Ghana as a tourist destination.• Lack of integrated channel strategy.• Poor visa regime.• Poor online strategy.• Little tourist information. | Opportunities•Worldwide trend towards special‐interest and adventure tourism.• Increasing interest on the part of •African‐Americans in their heritage •Attractive to business travellers due to location and safety (potential conference market) | Threats•Increasing competition from other African countries as emerging tourism destinations • High cost of travel to Ghana.• Global crisis. |

4. INDENTIFY KEY MARKET SUCCESS FACTORS

There are many key market characteristics that are critical to the economic success of our client in the new market (Germany, UK) that we have chosen. However, the three key factors that we feel are incredibly critical to the success of our service are income level (economic environment factors), location (geography), and internet penetration.
We feel that the economic environment factor of Income level is crucial to our service because a trip to Africa means a higher expense and people must be able to afford it therefore people`s income level on the target market is a crucial factor. We need to consider if high enough percentage of population can afford that kind of expenditure in the chosen country. The standard of living is a crucial factor; we need to know if the people of the market earn enough to sponsor their travel. The majority of the population in the market that we choose must have a disposable income large enough to afford a vacation and the packages that come with it.
The second factor that we found important and indispensable is the geographic factor of location. We found this to be a vital factor because this can affect if people are going to travel all the way to Africa or not. We figured that people who are closer to Africa are more likely to travel on vacation, there because it is easier for them to get to Africa. We chose Germany because it is a country in Europe, which is the continent above Arica there for how long it takes, the distance, layovers in flights, etc. will be easier, cheaper, and more economical. Our market should not be far away, since it requires them to travel to Africa to buy the services which is why we decided that location of a new market was crucial to the success of our service.
The final factor that we found to be crucial was Internet penetration. We decided that this was an important factor because of our business proposal is developing and maintaining an online office for planning and selling of trips, therefore, our customers must have access to internet and use it in their daily lives so it is essential to choose a country with high level of internet coverage. This was an important factor to consider because this is where we would mostly be advertising and showing are services and we can’t do that to a population that does not have internet coverage.

5. SELECT NEW MARKET

Ghana is a striking destination for other countries, in recent years; inbound tourist flows to Ghana have grown. The country received a large number of tourists in 2013, this sector grew about 12% and this was reflected in terms of volume and value.
The government of Ghana is predominant in the issue of tourism as through their efforts have promoted the entry of tourists. The entity responsible for this inquiry is the Ghana Tourism Authority (GTA). This country has great attractions, but the events that stand out are predominant in international travel and tourism fairs and festivals.
The above is added that security and political stability of Ghana were attractive factors to visit the country. The most promising consumer market for Memory Lane are specifically Germany and United Kingdom, we have into account several factors: * Income level – In the UK the average wage is around 3000 $ and in Germany it is a little bit lower than 3000. The world average wage is just 1.480 $. * Location – (distance from Ghana) Germany 3333.6 miles (6hr, 55min from flight), UK 3176.1 miles (6hr 36mins). * Internet penetration – In Germany are 71 727 551 internet users, in the UK 57 075 826. Based on the selected factors we would prefer Germany as a target market. Between the average wages and the distances from Ghana there are not significant differences, but in Germany are approximately by 10.000.000 more internet users.
GERMANY:
Tourism trips in Germany are influenced by the importance of the holiday for the Germans. Similarly the tourism enterprises online such as Booking.com, Unister, HRS, Expedia and Opodo Holidaycheck (BCD Travel Germany GmbH, 2014) offer a variety of services for german tourists, which accompanied by a strong economy can be benefit to the industry. Outgoing travel 2013 | | Trips taken by Germans (in thousands) | 334,600 | Of which trips abroad (in thousands) | 75,100 | No. of foreign holiday trips per 100 of the population | 67 |
Own elaboration with data of Deutsche Bundesbank, April 6. 2015 the confidence of the citizens in Germany is a plus, because after the recession of the economy showed that the country can leave many troubles away. Therefore, the germans can continue to invest in tourism. Social networks play a key role, as the use of channels such as YouTube, Facebook and Google allows a direct approach with the client which leads to.
UNITED KINGDOM
This country has a concentration in online sales, accounting for more than half of total sales of tickets and travel packages. Consumers use the internet as a tool to find information about travel, making it easy to get the information to the user much faster and reliably. On the other hand, the online channel represents not only laptops or tablets but also smart phones which have applications that facilitate the flow of information. Among the major websites and applications is Facebook, twitter and YouTube as informatics catalysts.
Another factor that makes UK a market with potential, is the purchasing power possessed by the British as the low prices of tourism market in general. It is estimated that this behavior be constantly growing for some years.

6. ENTRY MODE AND STAFFING

From all given options on entry mode to new market we chose two possible ways: * Joint Venture; * Direct Investment.
In making a decision between these two options, we took to a consideration balance of control, risk, and cost of entering new market.
For our alternative way to enter new market we chose direct investment. Direct investment fits our project since we want to open an office in our new market to target our market more easily. Moreover it will provide Memory Lane full control of decision making in new country.
However, direct investment has more disadvantages than advantages in our eyes, for example, there is no guarantee if we will have enough customers in the new market. It also requires bigger investment than joint venture. Also opening a new office in Germany to attract customers to visit africa will be a little difficult and more risky, as our market share will be too low. In this case having a joint venture with a tourism agency can guarantee us at least few customers.
As we already mentioned, if we decide to open an office in the new market, this entry mode requires bigger investment, not counting payments for rent and other expenditures, MemoryLane will have to spend money for acquiring new personnel. As far as the staff, we should hire some and use some of our current. Memory Lane will need to hire locals of that market who can communicate to people in their own official language know the market, the culture, and the environment and also handle the social media. The ones we hire will be trained by some of our current employees until they are capable of doing the work on their own. When the new hires are fully trained our current employees would go back to Africa.
We have decided to do a joint venture as an entry mode for our new market. We think, to joint venture with a tourism agency in the new market, which can tell their consumers about our company and convince them to visit Africa for tourism. As we know Memory Lane specializes in customized guided tours to exotic destinations in Ghana and around Africa, with full professional photographic (photo and video documentary support). So we think, that joint venture is a good choice, because it is less risky, as well as more cost efficient than foreign direct investment, so we need to find tourism companies in each of the cities that we chose to make the alliance and promote Memory Lane service, in this way is easier to attract people to the market (travel packages: airline tickets, stay, etc).
Moreover we think, that it is imperative to create the website and enter the tourism´s Memory Lane market through internet, we can also partner with Thomson or websites like Trip Advisor for possibility to reach bigger audience.
However, doing a joint venture has also few cons, first of all a travel agency has many tours to pick from, so they would not just be showing a customer our product but also tours in africa. That would limit our sales because the travel agency is not just selling our service. Secondly if we decide to join venture with another company this will obviously mean that the profits and losses will have to be shared and all other things of working jointly. Thirdly MemoryLane will lose some a balance of control using joint venture entry mode.
If we choose to operate a website in new market, or we will be expanding the business we will need to hire more employees, for that purpose we can contact the recruitment agencies for employees since it will be difficult to find the correct fit of employees in the new market on our own.

7. PRODUCT AND PRICING

Now moving forward with using joint ventures and direct investment to expand Memory Lane’s market to the United Kingdom and Germany, we will need to allocate cost that will be spent in focusing on moving to international markets. Also our product will have to go through a whole rebranding to appeal to a new target audience, through the use of promotions, creative design, and service training for employees. All being done with the thought of keeping the things that have already made Memory Lane as successful as it has been. Moving from Ghana to the European Market will provide Memory Lane to tap consumers that they have never been able been too. So to start off, we will still be offering our full travel package of guided tours, photographic services, and accommodations. When moving to this European market we will re-staff our tour guides on knowledge of local culture, attractions, and importantly passion for their home country. These Employees will run the tours while we will have other staff on hand to provide the customers with the professional grade photography expected. This will give our staff to focus on their own job and self-manage their day to day operations. Advertising our service will be done on the front lines of travel agencies, airports, kiosk in popular tourist spots, and through Memory Lane’s online office. Depending the success of these action will determine if more things like billboards will needed to be explored. At these places we will have pamphlets made to promote our product. Depending on if it is in Germany or the United Kingdom will determine what is in the packet. No matter what it will give our successful history, services offered, accommodations offered, and promotional weekends. To spark interest in Memory Lane there will be brief summary of how we expanded from Ghana to this new European market. How Memory Lane’s creators never stop at trying to separate their company from the other Tour Companies, through their pristine photography and self-managed employees. This will hopefully separate us from the group in a positive way. Most importantly coupons or gift cards to Memory Lane, and the locations that we will be visiting (Buy one get one free drinks at Pubs visited in Germany, Discount rates on soccer games in the UK). Focusing on the trends in each country will be key to our success. Finally, we will emphasize that with our services you and your family can simply enjoy the experiences during their vacations and Memory Lane will provide the mementos.
Pricing will be the first thing anyone looks at when they are first interested in Memory Lane so it will be important to set a fair price that will leave us in the positive at the end of the day. We will offering “A Walk Down Memory Lane” (silver) and “Forever in Memory Lane” (gold). But I third option will be available that we call Custom Memories Package that will give you the option to pick and choose what sites you visit, days, nighttime or daytime, quality of pictures, videos, hotel accommodations, and so on. All prices are per person. A Walk Down Memory Lane - 75 euros | Forever in Memory Lane – 125 euros | 3 day duration | Week-long tour | Lower quality camera | High Quality Camera | Tour duration 10am-5pm | Tour duration 10am-5pm | N/A | Night tours available 10pm-2pm | 3star quality hotel arrangements | 4 star quality hotel arrangements | 300 Guaranteed edited pictures | 700 Guaranteed edited pictures | N/A | Video Package |

8. PROMOTION AND DISTRIBUTION

Promotion is the most cultural bound of the four P’s of marketing since it relies on the communication with the audience. Apart from providing a great product or service, it is important to market the product the well. If the potential customers will not be aware of the product/service, then the sales will be very low and the company will eventually have to leave the market. The company should take full advantage of the promotion tools available to market its product/service.
The most important part of the promoting a product is the massage it wants to convey to its potential customers. Memory Lane wants to provide its customers with a unique combination of scenic attractions and specialized activities for a rustic experience along with their experience being captured in pictures and videos. To convey this message to the new market, Memory Lane will use regionalization strategy by using different language i.e. keeping the same message in the advertisement but changing the language, in order for people to understand the advertisement in their own language i.e. German in case of Memory Lane. The medium it will use to advertise their message to the audience will depend upon factors such as the number of televisions owned and internet access etc. in the new market. Germany is a high standard living country and therefore, it is feasible to use television and social media to advertise the service there. It will use a variety of advertising tools to create awareness about its service including television media, newspapers and business magazines. It will advertise on German language stations and newspapers to target the German audience in addition to other stations in English. It is recommended to air the advertisements on TV during evening when the news updates are aired so that the business men can be targeted. Social websites like Facebook and Instagram will also be used through which it can target a different segment i.e. of age 18-30 who are most likely to be active on these websites. It can post pictures of locations and update about their deals and offers on their pages to excite the potential customers. Also, people who have already experienced their service can be asked to write their reviews to create a good image of the company. Memory Lane can take use of the sales promotion techniques to promote its service better in the market. These include specialized marketing efforts such as coupons, special discounts, cooperative advertising etc. It can give away coupons for a free airline ticket to win or make the service free for one family member. They can offer deals on special occasions to experience the service for a less fee or they can enjoy a longer stay or visit more locations for the same fee. These promotional techniques can encourage potential customers to make a visit to Ghana with Memory Lane.
Since the company will not be spending much on opening its office in the new market due to its strategy of joint venture, it can use more of its funds for marketing its service to increase the sales.
Distribution: The most obvious issue for an international firm is how to distribute their product in the international market. In case of Memory Lane, it doesn’t have to distribute products since they are providing a service in their own country. However, it needs to distribute information to its clients about the services it offers. Therefore, the most suitable transportation mode used by the company would be digital media which is also very fast in its nature. Memory Lane will use three distribution channels to reach out to its clients. The distribution of information will be through its joint office with a travel agency in the new market. It will have its employees hired in the joint office who can tell the customers about the services offered and about its special photography service. They will have sample photos and videos to give its potential customers an idea about its services. It is also recommended to have pamphlets ready with necessary information to give out to its customers. These pamphlets can also be given it out in malls and several different locations to reach out maximum audience. The company will also have its services offered online through their official website where its potential clients can register and plan their trip. The website will include details about all the packages, locations, discounts offered; pictures and experiences of people captured in videos. Memory Lane will also have contracts with the companies in the new market who provide regular online offers and deals like Scontodeal.de in Germany. 9. CONCLUSION

In conclusion, the best market for Memory Lane to go in would be Germany due to the several factors discussed above such as its location and the number of people making a visit to Africa from Germany. It is suggested, that the company should do a joint venture with a travel agency since they will already have potential clients. It will be less costly as well for the company as it will not have to open its own office in the new market. The company should use the social media platforms as much as possible since it is the most cost effective way to reach to the audience. In addition to that, newspapers and magazines will also help to reach target market. The most effective way to excite the audience would be to show them the photographs and videos of the clients who have already experienced their service. Memory Lane can add features like introducing a teaser video for the trip, adding extra locations in the trip, providing more variety in the choice of experience etc.

References
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