http://ads.brainia.com/essays/To-What-Extent-Will-The-Success-71762386.htmlTo what extent will the success of the proposed diversification into walking holidays in turkey be dependent upon management implementing an effective marketing plan?
A marketing plan is a written document that outlines in great detail what the organisation hopes to accomplish by following the plan. The plan should have specific strategies when implemented and will help the organisation achieve its goals. In this case the marketing plan is to advertise two different types of holidays for its current and possible customers. One is to do a painting holiday in Tuscany and the other is to do a walking holiday in Turkey. Igor Ansoff created the Ansoff 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 £200. This is known as diversification in Ansoff’s 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 colour 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...