International Marketing Plan – Basecamp Peru Stan Iakovlev and John Relyea-Voss

Agenda Introduction

PESTLE

Target Market Analysis

Market Entry

Competitive Analysis

Service Plan

Distribution

Advertising and Promotion Strategy

SWOT

Conclusion

Introduction

!  Base Camp International Hostels is your “home away from home” in Costa Rica, Nicaragua, Ghana, Ecuador, Peru and Nepal (Basecamp Hostels, paragraph 1)

!  Base Camp offers volunteer programs, hostel experiences, and internships internationally

Country Facts !  Population:

!  29.6 million

!  GDP (PPP):

!  $275.7 billion

!  8.8% growth

!  7.2% 5-year compound annual growth

!  $9,330 per capita

!  Unemployment:

!  7.9%

!  Inflation (CPI):

!  1.5%

!  FDI Inflow:

!  $7.3 billion

(Quick Facts, Table 1)

!

PESTLE Analysis

! A country overview including a PESTLE Analysis for Peru can be viewed separately here

Target Market Profile !  Basecamp’s target market profile uses

demographic, psychographic, and geographic profiles to maximize the effectiveness of our marketing plan to our intended audience

Primary Secondary

Age 18 - 25 40 – 60

Gender Male / Female Male / Female

Location North America North America

Lifestyle Students seeking valuable international experience

Retired or “mid-life-crisis” adults who need a positive change

Target Market Analysis

!  Basecamp allows anyone over the age of 16 to

volunteer

!  Two distinct groups of international volunteers

!  Students who need the international experience / value

!  Adults who are looking for a change in their life

! Geographically, volunteers can now come from

anywhere due to globalization

! North American volunteers are prominent because of

access to programs such as Basecamp

Market Entry !  Basecamp international uses alliances for their

global market entry strategy.

!  Basecamp collaborates with a network of other companies in order to achieve their given projects/ objectives.

!  Comparative advantages with companies that operate Inside Peru allow Basecamp for offer lower hostel costs per night than a standard price comparable for a hostel in Canada or the U.S. (Because of this Hostel.com has some of the lowest hostel prices internationally)

!  A diversification strategy in Basecamp has allowed them to open volunteering programs in multiple countries throughout the world.

Global Competitive Analysis !  Global Volunteer Network

!  “The Global Volunteer Network (GVN) offers volunteer opportunities abroad in 25 community projects throughout the world” (Its your choice, paragraph 1)

!  This global competitor has programs ranging from teaching, healthcare, construction, and animal rescue located all over the world

!  Target Market = young travelers, volunteer workers

!  Global Volunteer network uses their website to advertise volunteering programs, deliver information to applicants and consumers who want to volunteer.

!  “Founded in December 2000 by Colin Salisbury, its Founder and Executive Director, after spending time volunteering in Ghana, West Africa”(Who are the Global, Paragraph 2)

In-country Competitive Analysis

!  Developing World Connections

!  “Developing World Connections provides International Volunteer Experiences to people of all ages and backgrounds” (Who we are, paragraph 1)

!  Target Market = young travelers, volunteer workers

!  Developing World connections uses their website as well as websites advertising on other non profit organization’s websites to advertise volunteer programs internationally.

!  Also a global competitor, this company operates in Peru doing the hands-on work of building educational and community facilities in both rural Peru and in poor outskirts of Lima

!  Smaller volunteering company only supplying 13 volunteering destinations internationally.

Indirect Competition !  www.Hostel.com

!  “Hostels.com is the ultimate resource for backpacking and hostelling.” (About Hotstel.com, Paragraph 1)

!  Target Market = young travelers, and backpacking travelers.

!  Hostel.com uses online advertising for customer awareness of their hostel programs.

!  “Hostels.com features the most comprehensive selection of hostels on the internet with almost 35,733 hostels listed.” (About Hotstel.com, Paragraph 2)

!  Indirect Competition aimed towards attracting consumers to backpack/travel rather than volunteer internationally

!  Hostel.com offers more than 35,000 hostel locations internationally for very low prices.

Competitive Analysis Matrix

Service Plan !  Highlighted key aspects of service mode,

process, pricing

! Challenges of marketing a service abroad

! Comparison to competitive analysis

(Prices, Table 6)

Service Plan •  “Program fees covers all in country expenses and costs

including accommodation, meals, language training, activities during orientation week and cultural training. “ (Prices, Paragraph 1)

•  Prior to setting up volunteer work, the process that volunteer abroad undertakes includes, visiting with the organization to fully understand the work being done, and conduct a placement assessment.

•  Part of Basecamps service plan includes online live support to assist anyone visiting the website. This helps increase consumer engagement with the services that Basecamp provides.

•  Comparing pricing, service mode, and process to other international competitors, hostel.com offers much lower prices on non-volunteer programs.

•  International media availability makes advertising online for basecamp programs access a wider range of customers/ volenteers.

•  Basecamp fees have on average more expenses included in price than other hostel international volunteer programs.

Drivers of Globalization

1   Environmental – international volunteers are

generally well received in each country

2   Market – international volunteering is prominent

and on the rise as global issues come to light

3   Cost – labour and operation costs are

comparatively lower in 3rd world /

underdeveloped countries

4   Competitive – other hostels are present in Peru

Distribution Considerations !  Channel Relationships

!  Need to maintain relationships with partners in Peru

!  Allows distribution throughout channels to move effectively

!  Integrated Distribution

!  Physical distribution can be aligned globally to save costs

!  Grey Market Alternatives

!  No alternatives for hostels

!  Hostels are already considered part of the “Grey Market”; not

being a completely fundamental hotel

Advertising and Promotion Strategy

Where? Peru / Worldwide

When? Over 2012

Why? To increase

brand awareness amongst our determined

target market

Who? To our primary

and secondary markets (see

Target Market Profile)

Advertising and Promotion Strategy Considerations

!  Positioning Differences !  Our two target market profiles can be advertised to

and reached through very different mediums due to the difference in age

! Media Availability !  Advertising in Peru will be difficult

!  Low on the Technological Rate Index, few technology-based mediums available

Advertising Examples

Advertising Examples

SWOT Analysis

Strengths • Peru’s index for business freedom of 72 makes it ideal for Base Camp to do programs.

• Popular destination for vulunteers and travelers looking for a jungle like experience

• 8.8% growth of GDP last year with population of 28.9 million

• Low conservations 4 week volunteer program costs compared to competitors.

Weaknesses • Rule of law and levels of corruption undermine prospects for long term economic development.

• Not safest country to volunteer/ travel in

• 35% of population lives below poverty line (Background, Paragraph 1)

Opportunities • Chance to increase market share for traveling and hostel industry.

• Online presence makes advertising available to a wider international audience

• Growth in international travel, and volunteer programs increase potential number of travelers and volunteer applicants.

Threats • Foreign ownership in the financial sector is also growing.

• Rule of Law is not strongly Upheld

• High levels of government corruption

Conclusion

! Weak PESTLE Analysis

!  Keeping key considerations in mind can ensure

success of Basecamp’s implementation in Peru

!  Be aware of cultural differences when trying to

glocalize

! Go for it.

References !  About Hostels.com.(March 19, 2012).Hostels.com. Retrieved from

http://www.hostels.com/credits.html

!  Who we are.(March 20, 2012).Developing World Connections. Retrieved from http://developingworldconnections.org/index.php/aboutus

!  Who are the Global Volunteer Network?.(March 21, 2012). Global Volunteer Network. Retrieved From. http://www.globalvolunteernetwork.org/about/

!  It’s Your Choice.(March 21, 2012).Global Volunteer Network.Retrieved From http://www.globalvolunteernetwork.org/programs/

!  !Prices. (March 21, 2012). BaseCamps International. Retrived From http://www.basecampvolunteerabroad.ca/sites/bc-volunteer-abroad/index1.cfm?pagename=Prices&category=23&page=81

!  !Base Camp Hostels.(March 21, 2012).Base Camp International Centers. Retrieved fromhttp://www.basecamphostels.com/sites/bc-hostels/index1.cfm?pagename=BaseCamp%20Hostels&category=109&page=520

!  !Quick Facts.(March 21, 2012) . Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom

!  !Regulatory Efficiency.(March 21, 2012). Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom

!  Background. (March 21, 2012).Peru Economy. Retrieved From http://www.heritage.org/index/country/peru?query=peru:+index+of+economic+freedom