Transcript No Slide Title

ANALYSIS
•Multi-lingual
•Unclear image
•Government stability
•Restrictive air policy
•Economic growth over past 2 decades
•Distance
•SAFE cable
•Education
•Colourful history/heritage & culture - “An African
success story”
•Over dependence on textiles & agriculture
•Legal
•Unemployment 10% and no development of sectors
to absorb unemployment
•Strategic Location - Time & Topography
•Skills gap/balance
•Manages change well - past experience - already
starting to make changes
•Funding - international
•Good existing foreign relationships
•Branding
•Competitors
•Ethics - a growing concern
•Declining sectors
•Higher value textiles - if branded & ethics
•Relocation of business - outflow of capital
•BPO
•Time - window of opportunity to move is closing others are also doing similar
•Travel - high growth - world’s largest market
•Tax - opportunity if tax policies attract others
•Access to 24 countries - growth opportunities
•French - market place does not appear to have been
tapped into yet
•China/India/RSA
•Cost (v competitors)
•Service culture - not good at this
•Size - limited physically, financially & HR
•Debt payback
•(Natural disasters - cyclones)
•Experience - workforce, infrastructure
•Highly dependent on textiles
•Low labour costs
•Lack of identity - no designers or retailers
•Less exploitative working conditions & wages
•Location - freight costs & time in current
•Existing reputation - quality/trading
relationship
market
•Perceived as being more “European”
•EPZ
•Unattractive image - hard to recruit
•No level playing field
•Don’t take full advantage of access to 24 countries
due to regional trading bloc
•At low value end of market
•Regional Trading Bloc - 24 countries duty free
access
•AGOA II
•Vertical integration
•Brand creation
•Growth of ethical/fair trade - opportunity to add
value
•Less protection and removal of quotas
•Competition from new entrants - low cost,
closer to market/speed
•Rapidly changing market fashions - currently not
good at adaptation
•Growth/experienced - tourism developed
•No clear USP
•Perception - imagery, climate and reputation
•“Premier” destination
•Long flight times for existing
customers/market
•Green tourism & cultural activities
•No open skies policy
•Coral reef
•Poor customer services and poor retention rates
•Board - Mauritian Tourism Promotion Authority and
good links currently with other counties
•High prices, low variety
•Time zone
•Over reliant on EU market?
•Government support for ISO9000
•India, China & Africa - growth economies of
the future
•Eco-tourism - a growth industry
•Brand re-positioning & communication
•Current room for increases in hotel capacity
•ISO for carbon neutral hotels
•Poor language & communication
•Poor marketing skills
•Increasing competition from other countries
e.g. Maldives, Seychelles, Red Sea, Spain,
N.Africa
•Power of mega tour operators & influences
•Competition with ISO9000 standards
•Price/last minute deals
•Development possibly having an impact on tourism
•Bilingual
•Higher telecom costs
•Lower labour costs
•Lack of skills currently and rate of
development - (only 500/600 from
Uni per year)
•Time zone
•Training & financial aid
•Cyber City development
•SAFE cable
•Safe Haven - protectionism & well placed to offer
range of outsourcing - disaster recovery to application
development
•Poor marketing skills
•No world wide reputation currently
•Only 3.6% of orders done across internet
•Highly dependent on India for expertise & growth
•Digital signatures, copyrights - other legal offers
•No tax on PC’s
•Good IT level/Digital Access Index
•Government support to create a computer culture and
service culture
•French market - growing market
•International scope for outsourcing
•Disaster recovery - assume it is a growing
market
•Software development - assume it is a growing
market
•Government assistance - citizenship & work permits
if invest more than $500,000
•ISO for outsourcing, business recovery etc.
•Competition from Morocco, Tunisia
& Senegal for French market
•Other competitors worldwide
•Lack of differentiation - other countries can offer
•Competition from established players
Porters Five Forces and
PESTLE to come
Brand Strategy
• Conduct a brand audit
• Conduct a brand repositioning exercise Fundamental re-focus of core values
• Re-weight values
• Previously neglected values
– Family branding i.e. Mauritius tourism, M textiles, M
BPO – underpinning values are consistent as is imagery
and ‘feel’
– TOURISM: Eco-tourism, exclusivity
– TEXTILES: High quality, socially responsible
– ICT: Location (economies), Efficient, highly skilled
– ISLAND: Unique, exclusive, socially responsible,
working practices as idealistic as natural elements,
shared vision and culture, striving to improve the
environment, people and economy
Critical Success Factors
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Integrated Development plan
Create a brand image and position against competitors
Bridging the skills gaps and employment
Change management (product life cycle, BCG matrix)
Internal marketing (Stakeholder mgmt, CRM)
ICT
Funding
Legislation (Tax system and Open Skies policy)
CSR (eco-tourism, working conditions)
Time constraints (1st Jan 2005 – Textiles hit by WTO, 2006 or later
37% drop in sugar price likely)
Vision
• Mauritius will continue to be the growth success story of Africa
and be recognised as a premium, multi-cultural thriving socially
responsible environment in which people are encouraged to live,
work, visit and invest in.
Mission Statement
•
Through restructuring the economy by developing the seven pillars of growth
through a process of change management, Mauritius will continue to respect
the environment and traditional values of the island.
– Tourism: For Mauritius to become one of the premier tourist destinations
in the world, known for its commitment to eco-tourism (related activities),
high quality standards and exceptional customer service.
– Textiles: To position Mauritius as a socially responsible nation respected
for its high quality textile goods, efficient and professional labour force
and for it to continue to be a significant contributor to the economy.
– ICT: To become the outsourcing location of choice for overseas businesses
specialising in French and English, offering training and development to
Mauritian citizens to enhance their skills to become the key pillar of
growth for the economy.
Values
• Committed to social and environmental responsibility
• Committed to education and training
• Committed to creating a stable economy through the development
of the 7 pillars of growth
• Committed to obtaining support and participation of all citizens in
achieving our vision.
Corporate Objectives
• Reduce unemployment by 5% by 2008/2010
• Implement socially responsible employment legislation by 2010
• Establish nature reserves and environmental protection/planning
laws to maintain environment by 2010
• Increase GDP of the island by X% by X
• To achieve a more balanced portfolio of economic activity in the
island by increasing the proportion of GDP from tertiary
industries, specifically tourism & BPO from X% to Y%
• To increase the number of students attaining qualifications from
tertiary school enrolment from 12% to 20% by 2010
• Success against objectives will be dependent against the
achievement of all goals in an ethical and sustainable manner.
TOURISM
MISSION/VISION
• Tourism: For Mauritius to become one of the premier tourist
destinations in the world, known for its commitment to ecotourism, high quality standards and exceptional customer
service.
Marketing Objectives
• TOURISM:
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To develop a brand position and logo for the island by 2007
To achieve and maintain an 80% room capacity by end of year 5
To have 80% of hotels accredited to ISO 9000 by 2010
To introduce a measure of customer satisfaction and improve results
year on year by 15%
– Create support infrastructure for the industry to monitor growth,
quality, customer characteristics etc.
Year 3
Year 5
Year 10
SHARE OF ECONOMY increase
25%
30%
35%
NO. TOURISTS
764k
983k
1200k
(3%)
(4%)
(4%)
Spend per tourist increase per annum
7%
7%
7%
Increase share of tourists traveling
from S.Africa, India and China
20%
30%
40%
Strategic Options
-Ansoff Matrix
Existing Products
New Products
Market Penetration
Product Development
•UK
•Eco- Tourism
•Germany
•Other EU countries
Market Development
•South African Mkts
with the premium
branded product
•India & China
Diversification
Tourism Segmentation
• Segment on needs & wants:
– Sophisticated traveler looking for range of activities,
new cultures, willing to travel further
– Psycho graphic/activity level based segmentation
(in implementation would commission market research,
surveys at the airport, hotels )etc
Tourism Target Audience
• Recommend key areas for growth:
•Target Market - Existing EU - France, UK, Germany (long haul)
- Growth/potential - S.Africa, India, China (shorter haul)
• “B2B”
•Tour Operators & Cruise Operators - top end market
•Agents
• “B2C” (Need to influence MTPA, Hotels etc.to improve direct
selling to customers)
•Affluent Couples & other lucrative individuals prepared to
pay a premium
•Interest in eco-tourism and culture - want more than just a
beach holiday
Positioning Grid Tourism from EU
Long Haul
South Pacific
Cuba/Dom Rep
Mauritius
South Africa
Caribbean
Seychelles
Maldives
North Africa
Economy
(mass mkt)
Red Sea
Premium
Italy
Greek Islands
When considering flying
from S.A - Mauritius will
fall in this segment
Spain/Balearics
Short Haul
Positioning Statement
• Premium Holiday
• Premium Pricing - offers certain amount of exclusivity
• Differentiate on “Green tourism” (ethical & socially responsible) &
range of cultural activities
• Rapidly improving quality - positioning will become more important
(ISO 9000, exceptional customer services, staff - diverse language
skills)
Marketing Strategy
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From Porter’s 3 generic strategies, we will follow the focus
differentiation route
WHY
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Targeting specific countries - therefore have focused on geography
Able to differentiate on:
Multi-cultural
Unique history
Eco tourism (coral reef)
Rapidly improving quality
Strategic Management of the
Marketing Mix
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PRODUCT
– Core: Holiday
– Physical: Premium offer - location, package, price; service, excursions, hotels
– Augmented: BRAND. Develop range of Eco-tourism activities. Develop extended
personal service throughout travel chain such as premier check-in, airport lounges,
flight, collection etc. Certify environmental credentials with awards by experts.
– Offer “working holidays” to link with historical and other educational issues.
•
PRICE
– Establish pricing strategy - premium but ensure ethical & value for money - hotels,
tour operators follow these guidelines, (hotel taxes to be used to implement)
– Price Bracket will vary for each target market
– Encourage volume discounts for tour operators (B2B) and discounts for repeat
visitors (B2C)
– Look at opportunities for re-investing money into local economy to make
improvements - e.g. green tourism, local skills training
Strategic Management of the
Marketing Mix
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PLACE
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Existing locations & new target markets
World Travel Market, Trade Fairs
Develop internet site for direct bookings - managed by MTPA
Mauritius Airlines and facilities in departure nations
Offer flight access to other tourist operators
PROMOTION
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Combination of Profile, Push & Pull Strategies in an Integrated Marketing Plan
Campaign is to be developed around re-branding and increasing awareness levels
Ensure promotion links with all other aspects of the island
Build on existing work carried out by MTPA
Experiential displays, Familiarization visits (tour operators, agents)
Brochures, DVD, Internet, Direct Mail - more B2C focused
Annual conference of stakeholders
Awards for services to Tourism
Celebrity chef
Film location – tax incentives to encourage movie usage
Strategic Management of the
Marketing Mix
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PEOPLE
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Internal Marketing Campaign
Inspire all those involved through training programme
Mauritian Tourism Authority
Staff training for Hotel, restaurant, activity businesses - customer services,
language training
Attract local staff and overseas personnel for specific areas - ensure right mix of
languages & culture to match visitors.
Establish government assisted hotel exchange programme for staff
Retain staff and progress employees through personal development
Internal buy in of premium positioning
“Member get member” - positive word of mouth from existing visitors
Consider use of an external marketing agency
Strategic Management of the
Marketing Mix
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PROCESSS
– MKIS
– Regular Internal/External communications
– Co-ordinated and effective process in its management of the delivery of the
marketing plans
– Long-term relationship building - B2B - customer involvement
– Marketing branding strategy
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PHYSICAL EVIDENCE
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Mauritius logo and brand - present new brand
Mark of excellence for tour operators and hotels
Minimum hotel standards and code of practice for employees
Development of tourism related qualification at University of Mauritius
Quality of island -litter policy, infrastructure improvement
“Green tourism” - body responsible for protection i.e. to ensure tourism etc.. not
having an affect on local environment
Mauritius Tourism
Promotion Authority
Government
Mauritian residents
traveling abroad
ISO9000 enforcement bodies
Existing tourists repeat visits
New/targeted tourists
-Air France
-Air Mauritius
-British Airways
TOURISM STAKEHOLDERS
Business visitors - encourage to
extend trip?
Foreign workers employed in
tourism
Travel Agents
Mauritian
residents looking
for employment
-Hotels,
-Restaurants
-Eco-tourism
activity firms
-Other tourism
businesses
Tour Operators
TEXTILES
Mission/Vision
• Textiles: To position Mauritius as a socially responsible
nation respected for its high quality textile goods, efficient
and professional labour force and for it to continue to be a
significant contributor to the economy.
Mauritius - “The home of ethical clothing.”
Marketing Objectives
• TEXTILES:
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Establish clear brand position and logo by 2007
Develop internationally recognised ethical certification by 2008
Achieve ethics certification in 80% of exports by 2010
Work with supply chain to develop ethical practices, achieving
ethical supply of fabrics into Mauritius textile firms of 80% by 2010
– Reduce focus of low value exports from X% by moving towards
higher value, ethically produced export goods of X%
– Maintain the contribution to the economy from the textile sector £
– Maximise allowance in AGOA II to 5% cap
Marketing Communication Objectives
• To increase brand awareness of Mauritius textiles as ethically
made to 30% (year 3), 55% (year 5), 75% by 2010
• To increase sales by 10 % within existing markets by 2008
ANSOFF MATRIX
Existing Products
Market Penetration
Reduce focus on LV in
•USA 30%
•UK 23%
•France 26%
New Products
Product Development
•Higher value brand for
medium market integration with designers
• Ethical label
but move to ethically
produced & labeled goods
Market Development
•USA trade pot
•Japan trade pot
•Germany trade pot
•S.Africa trade pot
•24 Countries duty free
Diversification
• Explore opportunities for
raw material fabric
production
Market Segmentation and Targeting
•End User (customers & retail outlets)
•Ethically Minded
•Higher Socio-economic groups
•Younger/Youth
•Develop niche with existing/traditional markets penetration of market with more ethically
produced products - USA, France, UK.
•Develop new markets for existing goods (and
newly branded ethical goods) - Japan, S.Africa,
Germany & develop trade with the 24 duty free
Countries 24 nations in duty-free agreement would be considered for higher
value exports but would be minor markets
Positioning Grid Textiles
Named Brand
USA
France
Morocco
Algeria
High Cost
Low Cost
Pakistan
Vietnam
Thailand
China
Italy
Mauritius
Own Label
Positioning Statement
To become a leading supplier of ethically produced fashion garments
in a socially responsible corporate manner thus setting the standard
for others to follow.
•Medium value - justified by:
•Ethically produced
• Socially responsible - labour wages, working conditions
• “Setting the standards for the world to follow”
Domestic & Overseas firms:
-Retailers
-Wholesalers
-Buyers
Government
US Government (AGOA II)
Textile suppliers
Textile factory workers
Regional Trade Blocs:
-COMESA
-SADC
-IOC
-IOC-ARC
Textile factory owners
TEXTILES STAKEHOLDERS
International Confederation of
Free Trade Unions
Mauritius Export Processing
Zone Association
Federation of United
Workers
WTO
Named company:
Star Knitwear (2nd largest textile firm
Stakeholder Communication Strategy
A ud ie nc e
Ob je c t iv e
S t ra t e g y M e s s a g e
M e d ia
M e a s ure me nt
NGO's
(o p inio n
lead ers )
Reco g nitio n,
ap p ro val. Create
level p laying field
Pro file
PR, d irect
invo lvement meeting s ,
co nferences ,
Co nsumer PR,
Ad vertis ing
End o rs ement,
Po s itive PR,
Feeb ack.
Co nsumers
Build ing p o s itive
rep utatio n
Increas e sales and
Pull
s p read ing p o s itive
mes s ag e b y wo rd o f
mo uth
Dis trib uto rs , Increas e sales .
Push
Retailers ,
Prefered cho ice o f
Buyers etc.
s up p ly.
Ethically p ro d uced ,
hig h q uality, justify
hig her p rice
Emp lo yees ,
Trad e
Unio ns,
Facto ry
Other
co untries
Go vernments
M o tivatio n, Prid e,
Ad o p tio n o f
s tand ard s
Pro file
Part o f a wo rld wid e
reco g nis ed ethical
is s ue.
Reco g nitio n. Lo b b y
fo r level p laying
field .Set stand ard s
fo r d o mes tic firms .
Pro file
Build ing p o s itive
rep utatio n
Sup p liers
To ensure co mp lete
ethical b ehavio ur
thro ug ho ut sup p ly
chain
Pro file
Co llab o rate and wo rk
with ethically mind ed
co mp ab ies
Build ing p o s itive
rep utatio n - Ethically
p ro d uced , hig h q uality,
justify hig her p rice
Trad e PR,
Ad vertis ing .
Direct sales Trad e Fairs ,
Co nventio ns.
Internal
M arketing , CSR,
Training .
Immed iate fo cus.
Lo b b ying
invo lvement,
Literature
Face to face
Sales ,
Awarenes s ,
Recall,
Reco g nitio n
Sales , Prefered
s up p lier status.
Emp lo yee
s atis factio n,
Staff turno ver.
Relatio nship ,
Sup p o rt.
Chang e o f
p o licies ,
taxatio n.
Ethical
"traceab ility".
Achieving 8 0 %
o b jective
Marcomms Budget - needs work!!
1) Objective & task method
– Determine marcomms objective
– Determine tasks necessary to achieve these objectives
– Determine the cost of each element
Percentage of economic share?
ICT/BPO
Mission/Vision
• ICT: To become the outsourcing location for overseas
businesses specialising in French and English, offering
training and development to Mauritian citizens to enhance
their skills to become the key pillar of growth for the economy.
Marketing Objectives ICT
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Grow the share of GDP to x% by 200x
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Increase the number of companies investing in BPO by 5% Yr3 (from
UK and France), 10% Yr5 (from USA/Canada,), 20% Yr10
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Recruit 7000 IT professionals for Cyber City by 2007, 2000 of these to
be Mauritius citizens.
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Create a further 5000 associated jobs within this sector by 2010
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Set up a training and development Institute for BPO increasing the
number of skilled professionals by 20% by X
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Develop alliances with overseas firms to agree a recognized standard
for businesses
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Achieve digital access index of 0.7 by 2020
Positioning Statement
To be the ultimate cyber Island offering state of the art technology to conduct
full service outsourcing with a bilingual labour force, in an environment
that is ethical.
– To ultimately become a Cyber Island
– offering state of the art technology with enviable connections through the
SAFE fibre optic cable
– Ideal location as a “Safe Haven” and full service outsourcing facilities
– Bilingual and highly skilled and trained labour force
Segmentation & Targeting
MARKETS:
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Prime focus on French & UK market
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Develop relationship with other French & English speaking firms
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Consider targeting firms in India to relocate to Mauritius
INDUSTRIES:
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Consider cross links with key economic sectors
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Overseas tourism firms - outsourcing to Mauritius - combining two
economies
– Textile firms - offering speed of communication between manufacturing &
retail
GE Matrix - Which Markets to enter
UK
high
FRANCE
South
Africa
Canad
a/USA
med
Australia
India (not companies
within)
/NZ
China
Low
Strong
Medium
Business Strengths
Week
Positioning Grid ICT
High Labour Costs
Italy
UK
Mauritius
Low skilled
High Skill
India
North Africa
South America
Senegal
Low Labour Costs
Marketing Strategy
• The strategy adopted will be a focused differentiation
strategy initially to create a niche within French and
English countries specialising in working with firms
that deal with fashion/textiles in the first couple of
years then Tourism.
Internationalisation Issues
• Make Mauritius as attractive as we can for FDI from BPO
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Favourable taxation
Skilled labour force or access to immigrant skills
Robust infrastructure/technology/power supply/security
Citizenship
location
Legal environment such as digital signatures
low set up costs and barriers to entry
4 key parameters client, strategic, employee, cost
Internationalisation of ICT
• Integrate other strategies
• Offer specialisms
• Focus on offering solutions - e.g. back office processes for Textile
companies and then Tourism
NEEDS SOME WORK
Internationalisation - Standardisation
vs. Adaptation
• An adaptation strategy would be adopted as we would be providing
varying different processes for the different businesses.
• Adaptation of government offer to specific country-firms e.g.
French firm labour regulations and repatriation of profits may be
different
Strategic Management of the
Marketing Mix
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Product
– Core: A location for BPO
– Physical: Infrastructure, SAFE cable, labour force, electricity, initially specialising
in full back office processes for the textile/fashion industries
– Augmented: Legal, reputation, ancillary services, Cyber City
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Price
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Low Taxation
Favourable Business Rates and utilities
rebates for employment generation from the local economy
Favourable land costs for development respecting the environment
Strategic Management of the
Marketing Mix
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Place
– Set up EPZ type zones for BPO around Cyber City
– Establish green belts to limit over development, specifically use brown-field sites
e.g. decommissioned sugar cane processing factories
– Provision of leasehold outsourcing buildings by government (reduces barriers to
entry and set up costs)
– First target the French and UK markets, then focus on attracting investment from
USA and Canada (Have links with Textiles here).
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Promotion
– Profile and pull strategy to encourage FDI through trade bodies and embassies in
target countries.
– Publish PR related material for senior decision makers/opinion leaders in relevant
magazines
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People
– Train and educate the labour force. Encourage immigration from target markets to
manage teams for each target country e.g. US, UK, France. Then need to think of
German, Indian and Chinese markets for the future.
Government
Government Board of
Investment
Indian Government
World Bank
National Computer Board
BPO STAKEHOLDERS
National Computer Board
Educational institutes:
-Uni of Mauritius
-Schools
- Massach Institute of
Technology
Two named companies:
-Infosys
-Ceredian
Newly qualified students
and school leavers
Overseas businesses
Domestic businesses
IMPLEMENTATION
& CONTROL
Implementation
McKinseys 7 S’s
Structure
Mauritius Tourism Promotion Authority(already exists)
Create Mauritius Textile Authority (MTA) and Mauritius IT
and Comms Authority (MICA) as a vehicle to implement
Strategy. Organisation structure between these bodies must
ensure synergy between all bodies.
Strategy
Tourism – Differentiated, aimed at premium customers
Textiles – Branded as ethical clothing, premium quality
ICT - Focus differentiated aimed at Fr/UK markets
Important to regularly review these against objectives.
Systems
Develop MKIS and Control systems to regularly review
to monitor effectiveness of all strategies. Develop
benchmarking system to monitor against key market indicators.
Tourism - develop computer system that allows access to
view what hotels, tours etc. are still available.
Implementation Cont…..
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Staff
Ensure that an immigration policy is in place to encourage
workers into each of the 3 areas and improve skills balance.
Measure Buy-in to CSR, have regular appraisals to help
maintain motivation - use this with development
programmes and training.
•
Skills
Ensure the correct training and development
programmes are established for each sector. Set up
alliances with top US, UK and French business schools,
fashion colleges, IT Universities (continue with
Mass. Uni) to ensure skills are transferred and there is a skills
balance. Immigration policy to be tailored to fill skills
shortages.
Implementation Cont…..
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Shared
Values
Ensure that all ethical values and CSR are shared
by everyone within Mauritius, organisations and
Suppliers (esp. Textiles)
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Style
Mauritius is committed to offering ethical practices.
Prime Minister should be the main influence in setting
the style and vision. Commitment top down.
Control: Balanced Scorecard
Kaplan & Norton
Internal
Employee awareness, staff turnover, assess performance
against benchmark, participation in training schemes,
develop CRM databases for collecting customer insight
Innovation &
Learning
Skills training, development of industry training
centres, tertiary education levels of completion
Financial
Sales v target in each sector, Profitability of each sector,
Endorsements
Customer
TEXT: No orders placed, No retailers stocking goods,
TOUR: Repeat visits, Customer satisfaction survey
ICT: Customer feedback,
ALL: Recall/awareness of brand