Marketing Strategies For Travel Management Company A In China

Business travel management is a kind of emerging business originated from western countries,specifically refers to the business travel managed by professional service providers,who can monitor,analysis and implement continuous optimization strategy,so as to provide enterprises with good travel services at reasonable cost,which will serve the ultimate goal for savings and cost-control.With the rise of China's economics,the demand for efficient business travel management is also growing.In the past 20 years,multinational TMCs with advanced management experience have begun to face challenges from local competitors in China.Although the multinational TMCs are highly trained,the domestic competitors with positive learning attitude,who deeply rooted in the local market are gradually weakening the strengthens and market advantages of the multinational TMCs in the market place.The research object Company A is the typical representatives of multinational TMCs,as well as the industry benchmark,it stuck to the global standardization marketing strategy since it entered China in 1995.Although the strategy has contributed to the good performance and competitiveness at the preliminary stage of the development,the localization marketing strategies adopted by the local competitors are proved to be more flexible due to the growing demands for customization.On the contrast,the global standardization marketing strategy prevented Company A from achieving greater advancement when the limitations enlarged over time.Based on the case of Company A and service marketing mix theory,this paper was to study how an oversea TMC could deploy localization service marketing strategy in China,and brought relevant suggestions.By reviewing the precedent literature research and through the in-depth interviews,demand and motivation surveys to Company A's target customers,specially those were purchasing staffs selected from35 domestic enterprises in charge of travel management services,the result indeed revealed customer's motivation for purchase and their perception to travel management services,and consequently,it could help Company A to explore the most potential target market.In addition,also through the case study,it turned out that the client ratio had in Company A were in serious imbalance between global and local customers.With an intent to regain the competitiveness in China market,Company A should tailor their marketing strategy covering from product design,pricing,tangible display to other aspects,this can better target the local SME enterprises,whose consumption ideas were transforming.With it being said,Company A must bright out the best from both localization and standardization strategies.At the end of this paper,author put forwards the managerial suggestions,limitations and the prospects of the research.