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Published byKerry Benson Modified over 9 years ago
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Stephen Edge Kai Holloway Andrew Lai Tony Vo Vicky Wong
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Introduction Market the Calgary Stampede to Sydney, Australia Strong cultural similarities Strong economic stability
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The Calgary Stampede Founded in 1912 by Guy Weadick. Vision was to celebrate romance and authentic culture of Old West Evolved into the world famous 10 day Stampede Attracts 1 million during the 10 days, and 4 million yearly 2008 net income was $10.4 million
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The City of Calgary As of April 2009, population of 1,065,450 5 th largest metropolitan area in Canada During 2007, 4.85 million visitors to Calgary and Area. 2.95 million stayed at least 1 night
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Average length of stay
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Visitors segmented into seasons Visitors to Calgary and area by season
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Economy of Alberta Energy is Alberta’s main source of GDP Roughly accounts for $89.94 billion
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Economy of Alberta $69.1 billion in exports. Crude oil accounts for $30.7 billion, or roughly 44% Only province to have financial net assets above 0 Third lowest unemployment rate at 6.6% Highest after-tax family income, median of $75,300. Canadian average is $61,800
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Growth from 1999-2009
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Australia’s Environment: Political Constitutional monarchy (Australia Act of 1986), with QEII as monarch, like Canada Very stable government Strong contemporary Australia-Canada relations: Gulf War (early 1990’s), East Timor (1999), Afghanistan Common international memberships: UN, Commonwealth, WTO, APEC (Asia-Pacific Economic Co-operation)
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Australia’s Environment: Cultural Interpersonal values: + sincerity, modesty, humility, punctuality - pretentiousness Demographics:
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Australia’s Environment: Cultural Geert-Hofstede cultural dimensions: Very few cultural differences AustraliaCanadaChina PDI (Power Distance)363980 IDV (Individualism)908020 UAI (Uncertainty Avoidance) 514860 MAS (Masculinity)615450 LTO (Long-term Orientation) 3123118
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Legal Environment Australian Law Federal Power Laws on trade TaxationCommerceDefence External affairs Immigration and citizenship State Territorial Power Anything else
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Legal Environment Equal treatment of foreign firmsExcellent competition lawExcellent independent judiciaryStrict intellectual property protection
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Business Environment Quarter Ended Change from previous year (%) Inflation over previous year (%) Unemployment rate (%) Dec 20092.02.15.6 Sep 20091.01.35.8 Jun 20090.31.55.8 Mar 20090.32.55.4 Dec 20080.63.74.5 Sep 20082.05.04.3 Jun 20082.74.54.2 Mar 20083.74.24.0 Dec 20073.93.04.4 Sep 20074.01.94.2 Jun 20074.42.14.3 Mar 20073.52.44.5
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Business Environment Time zone is 10 hours ahead of GMT Corporate income tax = 30% No restrictions on trade related payments Low salaries for highly skilled labor Economic operating costs Comprehensive infrastructure at competitive prices Sydney is a global city at an affordable price
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Business Environment Prefer win-win negotiation style Greetings relatively casual Very friendly Very matter of fact Appointment necessary
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Business Environment Business attire conservative Presentations fact based Very direct Negotiations quick Decision making slow
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SWOT ANALYSIS STRENGTHS - seasonality - excellent political relations - common language - Rodeo and Rocky Mountain getaway - few barriers to overcome to do business - Calgary Stampede celebrity appearances - Possibility of US excursion WEAKNESSES OPPORTUNITIESTHREATS
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SWOT ANALYSIS STRENGTHS - seasonality - excellent political relations - common language - Rodeo and Rocky Mountain getaway - few barriers to overcome to do business - Calgary Stampede celebrity appearances - Possibility of US excursion WEAKNESSES - Distance - little to no prior exposure of our marketing campaign - existing Rodeo market in Australia - Canada and Australia may be too similar - High advertising costs OPPORTUNITIESTHREATS
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SWOT ANALYSIS STRENGTHS - seasonality - excellent political relations - common language - Rodeo and Rocky Mountain getaway - few barriers to overcome to do business - Calgary Stampede celebrity appearances - Possibility of US excursion WEAKNESSES - Distance - little to no prior exposure of our marketing campaign - existing Rodeo market in Australia - Canada and Australia may be too similar - High advertising costs OPPORTUNITIES -Advertising outlets: billboards, radio, television, etc. - 46% of foreigners come to Calgary from July- Sept - partnerships - Sydney’s airport and excellent infrastructure - Australia’s strong economy THREATS
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SWOT ANALYSIS STRENGTHS - seasonality - excellent political relations - common language - Rodeo and Rocky Mountain getaway - few barriers to overcome to do business - Calgary Stampede celebrity appearances - Possibility of US excursion WEAKNESSES - Distance - little to no prior exposure of our marketing campaign - existing Rodeo market in Australia - Canada and Australia may be too similar - High advertising costs OPPORTUNITIES -Advertising outlets: billboards, radio, television, etc. - 46% of foreigners come to Calgary from July- Sept - partnerships - Sydney’s airport and excellent infrastructure - Australia’s strong economy THREATS -Australia’s existing rodeo cannibalizing our marketing efforts - Australia’s strong dollar
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Marketing The Product: 10 Day trip Fly from Sydney Australia to Vancouver to Calgary Includes a guided tour of the Calgary Stampede Banff, Jasper and Edmonton Includes meals, accommodations, Stampede tickets, etc. The Price: $2,075.00 CAN plus airfare
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Positioning Family Fun Trip: Adults aged 30-55 with children aged 3-17 Annual household income $80 000 plus Adventure Alberta Trip: Young adults, aged 18-29 Mostly students and young professionals The key difference is the group dynamic that each tour will take on
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Promotion Advertising efforts will focus on raising awareness of the Calgary Stampede amongst our target market. Family Fun Trip: Place ads in the Sydney Morning Herald Readership is 480 000 per issue, mostly people aged 30-49 with annual income above $120 000 Adventure Alberta Trip Sydney 2-Day radio station 9.8% market share and most listeners are 18-29 Billboards around areas frequented by young people Kings Cross Areas downtown Sydney
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Promotion Cross Promotion: Advertising the Calgary Stampede at Australian Country and Western Events. Coast Country Music Festival and the All Australian Jamboree Timing: Commence promotional effort for the Stampede on January 1 st This allows adequate time to increase awareness and for people to book their trip
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Distribution Website: Will provide a complete list of what is included in the trip Will allow people to book online and pay with credit card or internet banking. Will provide a 1-800 number for people to call for more information Affiliated Travel Agents: We will partner with travel agents, such as Flight Center, to allow people to book in person
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RISKS AND MITIGATION RISKMITIGATION - Presence of domestic Rodeo’s which may act as substitutes - Emphasize Calgary Stampede claim to being world’s largest outdoor rodeo - Calgary Stampede’s star power - Close proximity to many other tourist attractions
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RISKS AND MITIGATION RISKMITIGATION - Canada and Australia may have too much in common - July is Australia’s winter and Canada’s summer - Stampede tour package which includes Banff and Jasper as an optional excursion
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RISKS AND MITIGATION RISKMITIGATION - Exchange rate risk - Canadian firm can enter into foreign exchange contracts for the interim period, effectively eliminating exchange losses.
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