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Case study: New Frontiers

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  1. A comprehensive market analysis of the market of Nouvelles Frontières
    1. The external analysis of Nouvelles Frontières
    2. SWOT analysis
  2. A marketing strategy to grow the market share 'two-fold' over the next five year
    1. The related differentiation strategy by distribution
    2. NF online and the e-tourism
    3. NF online and the competition
    4. NF online and the key success factors
    5. Useful recommendations

G
rowth of the budget of households for leisure and travels, increase in the free time of employees, retirement of the ?Baby-Boomers? who want to travel more, general decrease in the air transportation prices? The European tourism market takes advantages from a structural positive situation. Nevertheless, the world tourism industry is not standing still. It is performing in an environment which has experienced strong changes these last years. Especially since 2001, the tourism market has gone through a difficult phase due to the slowing down of the world economy and international pressures (Roussel 2003: 1).
More generally, since fifty years, mass tourism has developed in a large scale and has had consequences on tour-operators which must adapt to an increasing demand. Competition in this market is strong and most of the companies had suffered consequences of the ?war of prices?, more or less deeply.
In this way, creating in 1967, Nouvelles Frontières (literally traduced ?new borders?, in French) has been launched into this market since its beginning phase. This company is a generalist tour-operator which performs on the wide tourism market in France ( turnover of 250.1 billion of Euros in 2006, according to the French Tourism Directorate (2007: 4)). Since 1967, Nouvelles Frontières has known a strong growth to become the leader of the French market in front of Club Méditerranée, its first competitor.

[...] Tour-operator + travel agency: allow to manage prices in adding margins and to offer ?finished? products (flight + stay + services) NF is the owner of all the travel agencies : no franchise The size of the company allows to obtain competitive cost conditions from suppliers market share in France economic situation Exclusivity of the Decrease of the number of SALES distribution network: customers: information) Good image in France in the organisation of trips Card fidelity process The forecasting result for A low result : protection against currency changes Low net margin A new server (IBM e-business IT PROCESS on demand) Use of the back-office of TUI to reduce costs DECISION MAKING Loss of the charismatic founder PROCESS of NF : Jacques Maillot Loss of numerous decision powers. [...]


[...] A comprehensive market analysis of the market of Nouvelles Frontières 1967, Nouvelles Frontières proposed to its first customers new experiences of travel. In 2007, forty years later, we have conserved the crux: our founder values. Today, we offer to most of individuals the possibility to travel differently, during a journey, a cruise, an expedition or a tour. To meet the enjoyment to discover new people, new cultures and to share new emotions. To live more, simply.? says Mr Jean- Marc Siano, the new Manager Director of the tour operator. [...]


[...] The companies extend their size and new competitors appear on internet. Evolution of the destinations (fashion phenomena). Growth of the globalisation. Maturity of the market. Nouvelles Frontières and its market do not ?live alone?. Though it is interesting to provide some main issues about its macro-economic environment: Effects of the 11th September 2001: - Psychosis of travellers. Promotion of secured destinations. Decrease in the air traffic by 10%. - Increase in the internal tourism to far destinations for the West Indies, for the USA). [...]

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