1. Pricing, Promotions and Sales Pricing, Promotions and Sales Presentation №3 Manjiri Awachat Elena Menk Hrishikesh Munj

2. According to the survey of the Russian Tour Operator Association: NoTour OperatorAverage Mark 1Pac Group4.38 2ICS Travel Group4.36 3Ascent Travel4.33 4Wind Rose4.31 5VKO Travel4.22 6Neva4.17 7Tris- T4.13 8DSBW4.09 9Natalie Tours3.97 10Danco3.95 11Intourist3.94 12Roman Holidays3.94 13Jet Travel3.89 14Holiday M3.69 Pac Group is #1 customers’ choice (Rating company “Super Brand Russia”, 2011) Pac Group is one of 37 Russian Tour Operators with a financial assurance of more than 100 million rubles PAC GROUP Table 1 Russian Tour Operator Association: The list of tour operators with the financial assurance of 100 million rubles and more, 2012

3. Competitors Natalie ToursAscent TravelTEZ tour Since 1992 20 travel destinations Since 1992 16 travel destinations Since 1994 17 travel destinations 2011 number of tourists served = 650 thousand = $750 million 2011 number of tourists served = 100 thousand $170 million 2011 number of tourists served = 500 thousand = $ 550 million Budget: R15 000 = $ 480 Luxury: R 80 000 = $2550 Budget: R 17 000 = $ 540 Luxury: R 65 000 = $ 2100 Budget: R 12 000 = $ 380 Luxury: R 72 000 = $2300 PAC GROUP Price Range: Budget: R 9 500 = $ 300 Luxury: R 320 000 = $ 10 000

4. Marketing Objectives: 1.Market-share Leadership – Best offers for different market segments 2.Product-Quality leadership - Best quality of the service for our customers 3.Competitor Leadership - Number 1 company in the Italian Destination Pricing Approach: Value Based pricing approach = “Unique Experience for the Best Price”

5. Organizational Consideration Corporate Level Regional Manager and Italian Department manager General Manager Ytkyn Iliya President Sokonin Alexander Italian Department Manager Kapshai Polina Italian Department Supervisor Dmitrii Kopshai

6. Sustainable Core Products Agricultural ToursSpiritual ToursAdventure toursLocal Culture Tours Thematic City Tours Shopping ToursWellness Tours Sport Tours

7. Pricing Strategies Prestige Pricing: Sports tours, Shopping Tours Market Penetration pricing: Spiritual tours, thematic City Tours, Agricultural Tours, Local culture Tours Promotional Pricing: Adventure Tours, Wellness Tours Overall Strategy is to introduce Discriminatory Pricing, depending upon the success of the ten sustainability products

8. Distribution Channels Push Strategy: Booking through Company’s website or 11 representative offices in Russia

9. Distribution Channels Pull Strategy: A wide network of Retail Agencies, located in different cities of Russian Federation (Rosa Mira – Moscow, Voyage – Chelyabinsk, etc) or through retail agency’s web -site

10. Selling Techniques: Up-selling = 10 day trip vs 7 day trip, BB package vs HB package Cross –Selling = tours + air tickets and transfers, tours + excursions + guides, tours + equipment + passes Special packages = Family package (2 adults + 2 children), Friends package (5 people), etc. Loyalty Program = 3 Levels: Regular Client = after 3 trips = 3 % discount Favorite Client = after 7 trips = 7 % discount Golden Client = after 15 trips = 15 % discount Personal Selling

11. Promotion Budget Strategy: Objective and Task Oriented Approach Promotional Mix Strategy: Advertising: 1.TV Commercials (30 -45 second clips for each of new tours ) 2.Place ads in newspapers and magazines (National Geographic: Traveler, Voyage, Okhota, FotoTravel ) 3.Signs and logos : logo and slogan on the company business cards, promotional materials, company brochures, company vehicles. 4.Giveaways : logo t - shirts, hats, pens, etc. 5.Direct marketing: E - mailing – personal updates about best offers and new products and services

12. Online medias 1.Company website - sales promotions, best offers, tour of the week 2.Facebook - company profile: company’s description, recent achievements, new tours, pictures of customers and reviews 3.Twitter - twitter account, blogs, customer comments 4.YouTube - company’s power point presentations to advertise new tours, company’s informative videos, tour videos or even videos taken by our customers. 5.Printable page - online adds on the sites of our where consumers can take print of informative part (Google maps)

13. Public Relations Strategy Tourism Conferences and Fairs ( International tourism fair “Leisure”, Extremex (Extreme World Expo Show), Conference “SPA & Health”, MIBEXPO Russia, “Expotravel” TV Programs, devoted to travelling – special PAC Group issues (“Traveler's Notes” (Neputevye Zametky), “Around the World”, “Searching Adventures”, etc) Sponsor Alliance – 2% from each purchase of a new sustainable tour will be sponsored to non-governmental charitable foundation, created to help children with cancer, hematological and other serious diseases “” Gift a Life” Customer’s Participation 1. On-line quizzes (101 question about Italy) 2. Video competition “Mia Italia” or “the best vacation of my life” 3. On – line journal on Facebook or official website “My View”

14. Public Relations Strategy Company – Customer Relations: Quality Control Service 24 hour Support Service

15. THANK FOR YOUR ATTENTION!!! ANY QUESTIONS???

16. References Pac Group: Official information, Retrieved October 29, 2012, from www.pacgroup.ru Natalie Tours: Official information, Retrieved November 2, 2012, from http://www.natalie-tours.ru/ Ascent travel: Official Information, Retrieved November 2, 2012, from http://www.ascent-travel.ru/msc ExpoCom: Expotravel Exhibition, Retrieved 6 November, 2012, from http://expo-com.info/index.php/vistavka-expotravel-2012.html Mibexpo: International Fair and Conference, Retrieved November 7, 2012, from http://www.mibexpo.ru Charitable Foundation: Podari Zhizn, Retrieved November 8, 2012, from http://podari-zhizn.ru/main First channel: Neputevye Zametki, Retrieved November 8, 2012, from http://www.1tv.ru/projects/si=31 http://www.1tv.ru/projects/si=31 International Tourism Fair: Leisure 2012, retrieved November 5, 2012, from http://www.tourismexpo.ru http://www.tourismexpo.ru

17. References TezTour: Official Information, Retrieved November 2, 2012, from http://www.tez-tour.com V Poiskah Priklucheniy: Video clips, Retrieved November 9, 2012, from http://video.sibnet.ru/alb14979-V_poiskah_priklyucheniy_s_Mihailom_Kojuhovyim/ http://video.sibnet.ru/alb14979-V_poiskah_priklyucheniy_s_Mihailom_Kojuhovyim/ Vokrug Sveta: Telejoutral, Retrieved November 9, 2012, from http://www.vokrugsveta.ru Russian Tour Operator Association: The list of tour operators with the financial assurance of 100 million rubles and more, Retrieved October 28, 2012 from http://reestr.russiatourism.ru Super Brand: Tour Operators. Rating of the best tour operators: Italian destination, Retrieved November 2, 2012 from http://www.superbrend.ru/italy.html