Future expansion plans Oli and the other directors have plans to expand TTC but disagree over the best strategy to use. Option 1: This is preferred by Oli and TTC's Marketing Director. It is to take TTC into niche markets by creating a separate division – possibly with a new brand name which will initially offer cruise holidays on luxury ships aimed at high-income retired people. Demand for cruise holidays is less price elastic than the demand for mass market package holidays. Discuss a suitable marketing plan for the cruise holidays in Option 1.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. [Knowledge] Marketing plan: detailed report on a marketing strategy containing research findings, objectives, marketing mix and budget
2. [Knowledge] Objective - needs to be realistic and measurable e.g. specific market share %?
3. [Application] This is a niche market – small specific, well defined part of a larger market
4. [Application] Need market research – this is a completely different market (segment) - prices of similar cruises, how retired people book holidays, forms of promotion used by potential competitors, etc.
5. [Application] Budget - needs to be adequate to meet objectives; based on estimates of what cruise competitors spend?
6. [Analysis] Mix - Price - skimming for this product in this market segment?
7. [Analysis] Product - quality/luxury important – but different brand image (name) probably essential to differentiate from existing TTC holidays
8. [Analysis] Place use existing travel agents to sell cruises or focus on internet?
9. [Analysis] Promotion – directed towards relevant market segment e.g. quality magazines with high ‘retired' readership?
10. [Evaluation] Basing mix on market research essential as TTC have no experience of this market segment
11. [Evaluation] Budget must be adequate to help differentiate cruises from TTC package holidays – and must allow for new brand creation
12. [Evaluation] New mix needs to be fully integrated and reflect the objectives set for it