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1
Global Marketing PlanMall of America
Final Paper
By: Group #2 B2BAshley Hamilton
Kayla Zart Babalola (Bobby) Coker
Sebastian KloddaBrandon Vlasak
Global Marketing 416
Date: August 5th 2010
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Table of Contents
1.) Executive Summary…………………………………………………………………………..3
2.) Introduction: Company Background/Situational Analysis:
2.1 Description of product and services-...................................................5-7
2.2 Description of product and services-………………………………………………..7-11
2.3 SWOT analysis-…………………………………………………………………………………12-13
3.) Market Analysis:
3.1 Industry Tends- ………………………………………………………………………………..13-14
3.2 International Destinations-………………………………………………………………15-16
3.3 Global and National competitors-…………………………………………………….16-21
4.) Global Marketing Strategy:
4.1 Segment and Target Market { B2B }- ………………………………………………….21-23
4.2 Info about Potential Market-……………………………………………………………23
4.3 Positioning-………………………………………………………………………………………23-25
5.) Conclusion/Recommendations:
12.1Over all Analysis-……………………………………………………………………………26
6.)* Bibliography/ References Attached*
*Appendix attached*
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EXECUTIVE SUMMARY:
1.The introduction includes research analysis on data concerning the Mall of America,
which was analyzed in order to determine the market parameters. Going forward, research was
done on Minnesota as a tourist destination, specifically the Mall of America in section 2.1.
Several barriers to entry have been pertaining to people who are coming from Mexico, dealing
specifically with travel to the Mall of America. In continuation of this research, reasons
compelling Mexicans to travel to the US were also found. In section 2.2, this is elaborated in the
context of Minnesota as a whole, based on characteristics that make it a tourist attraction and
what entry barriers exist. The differences between Minnesota and Mexico’s traditional heritage
and culture were also evaluated. Information was found about the perception that Mexicans have
of Minnesota. In 2.3 the SWOT analysis, analyzed the strengths, weaknesses, opportunities, and
threats of the MOA compared to its competitors. Section 3.1 includes information about industry
trends concerning shoppers in Minnesota and Mexican visitors. Positive and negative initiatives
in the context of government involving immigration laws were researched. Emerging Air
Transportation trends from Mexico to the Twin Cities was analyzed; in addition, section 3.2
recognized the most popular tourist destinations in Minnesota for visitors traveling from Mexico
City, and stated what their purpose of travel involved. In section 3.3, the competition of global
and national competitors was analyzed, on information involving what they have done to attract
Mexican travelers.
Section 4.1 Evaluates B2B segmentation and target market for travel/tourism agencies in
Mexico City and the Twin Cities. This section also investigates popular tourist agencies and their
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company’s size, location, annual sales volume, and number of employees. Section 4.2 states
information concerning the size of the travel target market, specifically focused on what potential
exists. Section 4.3 discusses how the positioning strategy will be formulated. This includes
important issues involving the target market, specifically how the target market perceives the
Mall of America and what the MOA does to differentiate itself from other tourist attractions. The
analysis done in section 4.3 states the rationale for the positioning statement as well as the
objective positioning statement. The subjective positioning statement is included in this section
as well.
Section 5.1 includes conclusions and recommendations for this global marketing report.
INTRODUCTION: COMPANY BACKGROUND/SITUATIONAL ANALYSIS
2.1More ways to be you, whether you are 1 or 100, have $1 or $100 to spend! The Mall of
America (MOA) has a variety of different stores, entertainment, and restaurants to accommodate
almost anyone and all different demographics. The Mall of America tries to market to tourists
and segments itself for a tour destination. The way the MOA markets a number of their stores
and entertainment venues that exist to its customers are sometimes functional or affective,
however occasionally they could be both.
Functional Aspects of MOA
Functional aspects of the mall include, the mall is one building, it has a metro rail which
is easy for transportation, the mall is close to the airport, there is free parking, there is no tax on
clothes or shoes, and it is next to IKEA.
Affective Aspects of MOA
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Being that everything is indoors, you can shop any time of the year, even in the coldest
weather. There are a variety of activities that take place in the mall. There is always something
new there, MOAs great reputation, the memories people make there, and experiences customers
get out of visiting the mall.
Both Functional and Affective Aspects of MOA
Being that the MOA is close to the Twin Cities, ease of access exists to a multitude of
events and activities that can be found taking place throughout the year. With the MOA having a
High School onsite, this allows the students easy access to hands-on learning. Everyone’s desires
are fulfilled at the MOA due to the variety of shops that exist in the mall. Even before “going
green” became the norm, the MOA has always been environmentally friendly building. There
are 520 stores in the MOA along with Nickelodeon Universe, Underwater Adventures Aquarium,
Lego, Moose Mountain Adventure Golf, A.C.E.S. Flight Simulation, Movie Theater, Magi
Quest, 60 places to eat, wedding chapel, and a high school. The MOA has 400 different events
that take place annually, including 108 celebrity appearances each year. These activities are
always free to the public. The cliché, shop till you drop is very easily done at the MOA, if you
spend ten minutes in each store it would take you 86 hours! (Arts Publications)
The Mall of America targets many different audiences. Woman ages 25-54, men ages 18-
24, teens, families, activity seekers, and tourists. MOA considers tourists to live 150 miles away
or further to consider them tourists. The mall brings in around 400 million people per year, 60%
local and 40% tourists. The Mall of America continues to reinvest into the infrastructure, which
always keeps the building updated with new features and trends, therefore, there always is
something new to find that hasn’t existed in the mall since the last visit by guest. This includes
new tenants and new attractions, which keeps the customer coming back for more. The MOA is
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set up in a way which tries to keep the same target market segments in the same area. This makes
it easier for shoppers to find the stores they like. For example, there are four major stores at the
corners of the mall, Sears, Macy’s, Nordstrom’s, and Bloomingdales. Stores are grouped
together based on their target markets, therefore guests don’t need to traverse the entire mall to
get to another store. There is a low budget area of the mall which consists of Dollar Tree,
Nordstrom’s Rack, Marshalls, and Payless shoes, amongst other stores. Some sections attract
upscale shoppers, who tend to shop for teens, kids, and men.
The Mall of America is currently working on a modernization plan, which is commonly
referred to as Phase II. This plan would consist of adding hotels, a gateway to the Mayo Clinic,
Bass Pro Shop, a water park, luxury and family retail stores, Performing Arts Theater, and a
space exhibit. MOA also tries their best to keep their customers feeling safe, this is very
important to the customers. The Mall of America keeps their safety at a low by having 130
security officers, who are mainly former police officers, ex military or officers in training (MOA
Power Point). Also they have years round bike officers who control the perimeter of the building.
The mall also offers medical station in case of emergencies, lost and found, way findings, and
maps all around the mall to guide you. `
Some barriers to entry that MOA might face are culture differences, Exchange rates,
needs/wants of the customers, and the climate of Minnesota. Passports are required to enter the
United States. Typically Mexican Men are not willing to shop for multiple days. The entrance
that most tourists enter the building is not very welcoming, especially with non-English speaking
customers. Customer Service could help non-English speaking people around the mall, but
sometimes it is hard to locate these staff members. Needs and wants of customers could be a
barrier of entry to the mall, for example, men from Mexico do not want to shop all day with the
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women in their family, therefore they need market to the males information about what other
activities can be done in the mall. Of course the climate that people portray of Minnesota is a
barrier for customers not coming to the Mall of America. The common perception of Minnesota
is that it is cold and snowy all year round, which could be unattractive to some of the tourists
from warmer climates. A new law stating, that people must show a valid passport to get into the
US from Canada, which started in 2009, made it much harder to enter the United States (The
United States Embassy Consular Services Canada). Before, this law, people from North America
could enter each country with only a Passport or Drivers License. This new law has turned some
Canadians against entering into the United States because of the inconvenience.
2.2
Minnesota as a Destination:
When looking at Minnesota and evaluating the tourist destinations there are many
different places. First there is the aspect of nature and the fact that Minnesota is connected with
the great lakes which brings many people from all over the globe, Lake Superior to be specific
which has many miles of lake shore. Continuing on the nature theme, there is the Gooseberry
Falls area which draws many tourists due to the waterfalls. Needless to say you don’t have to
travel more than a few hours in any direction in Minnesota to get a great sense of nature, whether
it is water or land that is preserved (exploreminnesota.com). For those who aren’t interested in
the great outdoors, Minneapolis and Saint Paul offer the guests a vast array of entertainment and
musical venues. The new Twins stadium is the latest big attraction for not only Minnesotans and
Twins fans, but many people come to visit due to the innovative engineering and “green”
construction (MLBnews.com). Many business contractors have made their way to the stadium to
observe the construction advancements done in the stadium. The Minneapolis Sculpture Garden,
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which is the largest urban sculpture garden in the country, attracts many tourists
(exploreminesota.com). St. Paul (which is the capital of Minnesota) is home to the Science
Museum of Minnesota which offers hands-on exhibits that gives visitors the chance to touch a
tornado, walk under a dinosaur, board a Mississippi River towboat, and learn about all sorts of
thing including the human body, a very family friendly place. Another attraction is the Guthrie
Theater which is the largest regional playhouse in the country.
Barriers to Travel:
One of the barriers to traveling to Minnesota is the distance from Mexico to Minnesota
compared to other places near the middle of the U.S. Mexico City is 1,675 miles from the
Minneapolis airport (www.geobytes.com). The fact that the flight is about four hours means that
it could make our destination less attractive for families (ask.com). Due to Arizona implementing
SB-1070, this had created a negative image on the US by Mexicans; therefore they may not even
look at coming to United States in the first place. Minnesota law enforcement is dedicated to
protecting and preserving the civil rights of all members of the communities. In the Hennepin
County Sheriff's Office, they are working to build trusting relationships with all of the residents
and visitors in our communities, regardless of their legal status. Minnesota has a dozen or so
"Sanctuary Cities" with "don't ask, don't tell" (http://www.sanctuarycities.info) mandates to
prohibit police officers from asking about immigration status without criminal cause. Another
barrier is language, even though Spanish is the second highest spoken language in the US, only
15.4% of the population in Minnesota speaks Spanish (US Census 2000).
Minnesota Culture:
Minnesota has a vast number of Indian reservations that still exists and many in the area
take great pride in the land. The people originate from Scandinavian Americans, German
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Americans, Native Americans, African Americans, Polish Americans decent
(http://www.pomeroyformn.org/culture.htm). Minnesota is also known for its strong sense of
community and togetherness. Many occasions are known to be potlucks; this is when everyone
brings a dish to share with one another. Many think this is where the “hot dish” or “casserole”
idea came into play. Theater and music has become an ever increasing part of Minnesotan
culture. Many festivals and concerts such as the Taste of Minnesota, Festival of Nations,
Minnesota State Fair, We Fest, and Renaissance Festival, which takes place throughout the
summer. During the winter, the Saint Paul Winter Carnival draws in many tourists from around
the country and overseas. This festival has numerous ice carvings and is the celebration of winter
activities. The population of Minnesota is 4,375,099 the 20th largest state –made up of 70.6%
urban, 29.4% rural, 94.4% White, 2.2% African American, 1.8% Asian or Pacific Islander, 1.2%
Hispanic, 1.1% American Indian, Aleutian, or Eskimo, 0.5% other(1990 US census)
Mexican Culture:
Mexico City’s culture consists of music and dance, vibrant colors, and theatre. The top
attraction in Mexico City is a place called the National Museum of Anthropology; the people in
Mexico are very interested in past anthropology and preserving the past. Mexico City Natives are
very family oriented and enjoy traveling together. The population of Mexico City is 19,013,000
which are the largest population group being Mestizo (Amerindian-Spanish) 60%, Amerindian or
predominantly Amerindian 30%, white 9%, with 1% consisting of other races. The religions in
Mexico are Roman Catholic at 89%, Protestant at 6%, others at 5%. Mexico City forms the core
of the Federal District and is the commercial, industrial, financial, political, and cultural center of
the nation. Among its diverse and important manufactures are chemicals, petroleum, food
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products, textiles, automobiles, machinery, pharmaceuticals, and consumer items. Population has
increased rapidly in a city, the metropolitan area of Mexico City is currently the largest in the
world, but it suffers from severe overcrowding (http://www.facts-about-mexico.com).
As for the buying decision in Mexico City, it is strongly influenced by family and friends,
however, most of the time the buyer is the housewife. Mexicans frequently use customer service
(http://.blog.nielsen.com). Promotional prices are very much appreciated. It is difficult to
influence the Mexican consumer; they are very aware of brand names and knowledgeable on
cost-benefit ratio. They expect to be treated individually and prefer the places where there is
personalized service. In general, Mexicans are very loyal to their preferred brands. As for
activities in the Mexican culture; diving, camping, canoeing, fishing, and surfing are a few they
enjoy in spare time. When it comes to gifts and gift giving, Over two-thirds of gift-givers in
Mexico said they will spend over $250 American dollars on gifts to celebrate "Love and
Friendship Day," (which is just like the US Valentine’s Day, but not just for lovers) primarily
giving to love interests (51%) and friends (27%). The top three gifts for Mexican couples
included dinner, clothing and flowers. When questioned on who should pay for dinner, 58
percent of those surveyed believed that the man should pay the bill on the first date
(http://www.inside-mexico.com).
When comparing Minnesota to Mexico City, many similarities in culture and activities
can be found, namely with sports and family values. One difference is that the women are the
main purchaser in the household in Mexico, which is some cases, is very different than the
cultural norm of Minnesota and the US. The population of each area is a huge difference; the
population of Mexico City is 19,013,000 (http://www.citypopulation.de/Mexico.html) and the
population of Minneapolis (the largest city in Minnesota) is 368,363 (www.city-data.com) A
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similarity of religions exists between Minnesota, which is made up of roughly 69% Catholics
and Mexico City, which is made up of 89% Catholics. (www.adherents.com/largecom)
How do Mexican people perceive Minnesota? This could be hard to find initially, but the
reason for the difficulty could have something to do with the fact that fewer than half of all
Latinos living in Minnesota in 2000 were foreign-born (Census Bearue.com 2000). As far as
other destinations in the US, many Mexicans only know of the southern states for example:
Arizona, Texas, California, and New Mexico. As far as how they perceive those states, mixed
opinions due to the poor treatment of Mexican workers, and the discrimination Mexicans face
when in the US. What is happening in Arizona is giving the Mexican community a reason to
believe all the states will adopt the policies that are going on and that is perceived negatively.
The New York Times stated “A strong local economy helps pull Mexicans from steamy Morelos
to the chilly Minnesota plain.”(http://www.nytimes.com) Also a man who was interviewed in the
same article said (BEGINNING OF PERAGRAPH), "Ninety percent of the population there has
people over here. Kids come here as soon as they come of age." According to jrank.org, there is
a push and pull that has been going on for the last decade with Mexicans coming to Minnesota.
The push is the immigration laws along with the harsh treatment of Mexicans in the Southern
U.S. and the pull is the demand for low wage labor. (http://www.jrank.org) What you can infer
from these statements is that Mexicans know of Minnesota and they are coming here because
they want to, therefore the perception can’t be that bad. Also once they come to Minnesota most
do not return to Mexico.
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SWOT ANALYSIS
2.3
By researching The Mall of America we found that there are many different strengths,
weaknesses, opportunities, and threats that the mall faces in relation to the competitors. The Mall
of America has strengths, due to its size and different activities, stores, and restaurants stated in
2.1. Another strength that the mall has is that it has been using low cost energy sources, since it
has opened, which increases efficiency. The MOA is a “green” facility. The mall does not use
any heat; it is simply conducted by the lights, skylights, and body heat of the customers.
Weaknesses that the MOA might are fact that it could be a little overwhelming for someone that
does not speak the English language. Most signs are in English and the majority of the clientele
speak English. Tourists may become frustrated and overwhelmed with the huge mall and not
know where to go or even where to start. Having this language barrier might be a problem even
for the customer service representatives. The MOA would have to find full-time employees who
are fluent in Spanish to work as Guest Services assistants at the Information desk. Another
weakness the organization might face is that it could be difficult for the tourists to even find the
customer service department if all of the signs are in English. Also cultural barriers from
Mexico to the US could be a weakness for the Mall of America. Finding what is important to
Mexico’s people is crucial for the MOA to be successful in having many Mexican tourists.
Mexico has different traditions, values, norms, and shopping experiences than the US, therefore
to make the tourists feel more comfortable, the cultural differences need to be accurately gauged.
We found that there are many opportunities for The Mall of America to inform and
attract tourists to the mall. Beginning with their website, we found that it is very hard to navigate
with cell-phones. Many people are now using their Smart phones to look up an ever increasing
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amount of web content. The website needs to be made more assessable for these people. Other
opportunities they might have are Social Media sites. Having access to people on these sites
should be a huge opportunity for the mall to let people know what is happening. One threat that
we found out about the MOA is that since Smartphone’s have existed the web traffic from the
MOAs official site has dropped 50% (MOA PowerPoint). Although this is seen as a threat, there
is also a huge opportunity that goes along with it. This threat makes it easier for other malls in
the local area to look more professional and make it seem easier to shop at their malls. Although
the MOA has a tough security system, safety at the mall is always a threat. The size of the mall
makes it just too big to keep track of everyone. The mall is a favorite hangout place for many
teens around the Twin Cities, where teen crime rates have been a problem. Security has been
unable to stop many rapes, robberies, and other fights on the premises (ArtsPublication).
Market Analysis:
3.1
From our initial research, we have determined that both in Mexico City and Minnesota,
there are no travel initiatives that are currently in place. The Explore Minnesota office has
planned several joint sales activities and participation in upcoming trade shows in the months
ahead as per the Director of Travel Trade Marketing at the State Tourism office. One issue that
could affect tourism inbound to Minnesota is the general perception of the United States in
relation to the recent state law enacted by Arizona, SB-1070. The State of Minnesota’s official
stance on this new Arizona law is that they are boycotting such legislation. The state takes a very
critical view on the recent Arizona law, due the fact that a decent sized population of Mexicans
resides here, who actively provide to the local economy. Saint Paul, for example, has taken an
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official stance by banning all travel to the state of Arizona on taxpayer money and plans to
boycott the 2012 Political Conventions (City of Saint Paul, 2010.)
Therefore, the fact that Minnesota takes a strong stance on this law; this could be used as
an advantage when trying to market Minnesota as a tourist destination. As far back as 2007,
Aeromexico had applied for, and won Route authority to commence flights to Minneapolis from
Mexico City, but they have yet to act on being awarded the slots by the US Government. With
Delta now starting flights between Mexico City and Minneapolis, the chance of them actually
acting on their rights remains rather low at this point. One thing to note is that via the Skyteam
Global Alliance, both Delta and Aeromexico are partners through this alliance.
According to the U.S. Department of Commerce (U.S. Commercial Service, 2009), in
2008, spending by Mexican travelers totaled $9.7 billion, of which 75% of this spending was tied
to only 1.7 million Mexicans who traveled to the United States by air. It is to note that this
counts for less that 20% of the total visitors who provided 75% of the total amount spent.
One of the main benefactors of the Mexican tourists is the shopping industry. In fact, shopping
expenditures are often at the top of the list of overall tourism expenditures based on visitor
studies (Cai, Lehto, & O’Leary, 2001).Bojanic’s (2009) research found the following: The
results of these early studies suggest that bachelors, newly married, empty nest, and solitary
survivor are the FLC stages with the highest amounts of discretionary income. This is
particularly important to organizations that market leisure travel (Bojanic, 2009, p. 2). According
to governor Pawlenty (State of Minnesota, 2009), “Over the past ten years, Minnesota’s exports
to Mexico have risen from the 13th largest market to the 6th largest.” Positively Minnesota (Dept.
of Employment and Economic Development. 2010) states that Mexico is currently the 4th largest
export market for Minnesota.
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3.2
The most popular destinations internationally for Mexican travelers besides the U.S is
Canada (http://en-corporate.canada.travel). Consumers in Mexico appear to be more positive
about current economic situation and their ability to purchase big-ticket items seems to be strong
as well. “Mexico has seen strengthening economic activity in 2009 and is expecting a 4.5%
GDP growth in 2010 and 5.1% in 2011, reflecting global economic growth” (Source: Oxford
Economics May, 2010). Mexican travelers made 161,100 overnight trips to Canada in 2009 and
Mexican travelers spent on average $1,438 per person-trip. The average stay in Canada was 22.5
nights. Pleasure travel has remained the most popular reason to visit Canada, holding 42% of the
market in 2009, while visit friends and relatives came in second, with a 25% share of the market.
Spring and summer was the most popular time for Mexican travelers to visit Canada and the age
group of under 24 years of age was the largest proportion of Mexican travelers. (http://en-
corporate.canada.travel) Canada is second only to the US as the most preferred international
destination of Mexicans (2010 Canada Tourism Commission). The high costs of the American
dollar and the Euro are important factors that have helped maintain Canada's position as an
accessible and affordable destination for Mexican travelers. However, the world economic
situation and the H1N1 (swine) flu outbreak in the country resulted in a decrease in the number
of Mexicans travelling. Those who are travelling are more likely to visit local destinations such
as Veracruz which is the most popular destination for Mexicans to travel within Mexico
(http://travelstate.gov). Also, in July 2009 the announcement that Mexicans travelling to Canada
would now require a visa has had a negative impact on Canada's welcoming image. This is a
great opportunity for the U.S to appeal to Mexican traveler.
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The destination for Mexican travelers in the U.S has changed dramatically in the last few
months. Arizona used to be a bi-annual shopping stop and travel destination for many wealthy
Mexicans, but not anymore since the new immigration laws (http://marketplace.publicradio.org ).
Many Mexicans would travel to shop at the malls in the southern U.S states. This has now been
put on hold. But the U.S is still the leader with 87% of the market share when it comes to
Mexican travelers. The competition is getting stronger with Canada and Europe. Within the U.S
Los Angeles is the largest with 21.6% followed by Miami with 11.4% and New York with 9.4%
of the tourist market share. Why Mexicans travel to the U.S is broken down into four different
segments the largest being vacations and Holiday with 41% then Business being 27%, Visiting
relatives and friends being 26% and last conventions being 6% (www.rsana.com/). What this
tells us is that when Mexicans travel to the US they are coming to relax and spend money. But
that 27% who come for business is an opportunity for Minnesota as well for MOA.
3.3
MOA Conducted 38 tour operator and media familiarization trips to MOA® from
international markets such as Scotland, England, Holland, Germany, Japan, Mexico, Iceland,
Sweden, Norway, Denmark and Canada. There have been continued sales efforts in rapidly
expanding Latin American markets by meeting with tour operators from Mexico, Brazil, Peru,
Argentina and Venezuela. Mall of America® offers over 70 travel packages from 32 countries on
5 continents represented on this map. (MOA Marketing Plan)
From the map in the appendix, it depicts that most of the shoppers who visit are mostly
from the upper Midwest and the East coast. Very few visitors come from the southeast, and an
even fewer percentages of visitors come from the West coast... This could easily be attributed to
people from warmer climates not being able to withstand the seemingly five-month cold season.
17
The UTAH Tourism Office does not seem to do much to attract Mexican visitors. What
they do have, is a large population of Hispanic descendants and inhabitants who instill the
impression that UTAH is a welcoming place for Mexican visitors. The Institute of Public and
International Affairs state that Utah has always been a destination for outdoor enthusiasts with a
variety of recreational areas and activities. Also, on the travel website in UTAH,
(travel.utah.gov) the facilitators put together events like “Fuzion and National Night Out” -
Fuzion brings a “no boundaries or borders” style to their music, creating a “fusion” of musical
styles including Latin, funk, reggae, country amongst other genres.
Presently, the Quebec Office of Tourism is not doing anything specific to attract guests
from Mexico. They do, however, incorporate the awareness that there are many visitors from
other nations who visit Quebec. Therefore, their website has an array of languages that are
offered. A tab that is easily located on their site allows visitors to easily switch between
languages. The section of the page for Mexican visitors is tailored to suit the ethos appeal of
Mexican visitors. For example, destinations and events featured for American travelers are
different from destinations and events offered to Mexican tourists. The website
(http://www.canada.travel) provides a list of places to go, cities to see, and events that almost no
one can say no to. There are pricing and packaging information on the website, a list of other
interests, and of course accommodation. This is one reason why that region sees so many
tourists, which is attributed to the bundling of services and transportation into one package.
In essence, applying this level of specialization allows Mexican visitors to believe that
they are welcomed in that country. The Mall of America should incorporate into their own
website some sections in Spanish, in order to take the first steps at welcoming guests from
Mexico City.
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Chart 1.1
Persons of Hispanic or Latino origin
State % USA %
Utah 12.0% 15.4%
Arizona 30% 15.4%
Minnesota 4.1% 15.4%
Quebec 0.91% 15.4%
The chart above visually shows a slight popularity of Hispanic individuals in Utah and
Arizona. Compared to Minnesota, Utah has three times as many residents of Hispanic. Apart
from the fact that Utah is closer to the border of Mexico, it can be easily argued that more
Mexicans are more viable to visit Utah than they would Minnesota because there will be able to
get along more with their own kind. The MOA flash website is very well laid out, but it is not
appealing to anyone else who does not speak, write, or understand English. Having the website
offered in Spanish language would be beneficial to help target Mexican guests.
The MOA website is currently available in Japanese at http://www.link-usa.jp/go/moa/index.html.
Flight Data Mexico City to Utah --- Cheapest Price $690 after Tax Mexico City to Minnesota -- $853 after tax Mexico City to Quebec -- $922 after tax
Search Date (7/18/2010)
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These prices are for the time period of the 10th -15th of January, 2011. January can be considered
as a peak season for travel; however the ticket prices are shown for what it would cost today.
These prices can fluctuate based on availability and demand. During the off peak season like
September, the fares were about a hundred dollars cheaper than they were for January. The
prices were taken from Delta Airlines website, to reduce inconsistency. The Delta website was
used simply due to the fact that the Minneapolis-Mexico City nonstop service begins December
18, pending the approval of the Mexican government. (cheapoair.com)
An interesting point to note is that destination branding has always been a major deciding
factor on where Mexican visitors travel. According to the U.S. Commercial Service in Mexico
City, Los Angeles, Miami, and New York are the top three places Mexican shoppers go to.
Reasons why Mexican shoppers visit these places more often is perhaps due to the fact that these
are major cities, and they have a lot of diversity as well as many people from their own culture.
The top three destinations are located on Costal regions. These cities can usually be associated
with high standards, high quality, and Luxury, meaning that it can be an alternative to visiting
London or Paris. Accessibility to these locations has been made easier to visitors from Mexico,
due to low-cost airfares. Plane tickets are slashed by 50%+ from what they would initially cost
when compared to traveling to Utah, Quebec or especially Minnesota. (Note: Utah is much
closer to Mexico than California but the cheapest one way ticket from Mexico City to Utah is
$619, and the cheapest one way ticket from Mexico City to Los Angeles is $380 when booking
for one week between the end of august and the beginning of September)
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Mexico City to New York, Los Angeles, & Miami -$300 - $400 (Current Prices as of 7/28/10 for august travel) (www.bing.com)
Pros And Cons of Mexican visitUtah Quebec Mall of America
(MN)
Trade shows Terrain Family Vacation/Camp
Packages Tourist info printed in
Spanish Sustainable Hispanic
population Pressure from Arizona
law
Website fully translated in Spanish
Destinations tailored for Mexican guests
Lot of Pictures of destinations to entice
Visa needed
Open minded Family orientated Diverse Nickelodeon
Universe Package Border crossing
card
Effects of the Arizona Law The Arizona law was signed April 23, 2010, its aim is to “…identify, prosecute and deport
illegal immigrants” as well as to “…make the failure to carry immigration documents a crime
and give the police broad power to detain anyone suspected of being in the country illegally.”
(New York Times, April, 2010). Since this law has been passed, government officials in Utah
have been feeling pressured since the state of Utah is directly above Arizona on the U.S. map.
When Arizona passed legislation requiring employers to use E-Verify in 2007, an illegal
alien living in Arizona was quoted as saying, "My plan is to go to Utah because I see a lot of
problems here." Another illegal alien said, "It is very quiet there [Utah]. There is less chance they
are going to come and deport me." (Center for Immigration Studies)
First coast news covered this particular controversy, they interviewed several other illegal aliens
21
about their plans for the future and some were thinking about going back to Mexico. Others are
considering moving to states such as Oregon, Utah, New Mexico, Texas, Illinois and New York.
Global Marketing Strategy:
4.1
According to the U.S. Department of Commerce (U.S. Commercial Service, 2009),
“Wholesale operators continue to be the most important distribution channel in the Mexican
travel and tourism market.” This is due to Mexicans generally not being confident about
providing their credit card information over the internet.
Out of twenty calls and/or emails to Travel Agencies in Mexico City, none of them
offered a single travel package to the Mall of America. Calls and emails were placed to agencies
located in: (8) Miguel Hidalgo, (4) Ciudad Nezahualcoyotl, (5) Benito Juarez, (3) Gustavo A.
Madero. Two agencies out of twenty in the Districto Federal said that upon request they can
bundle a package for people who are interested, but the demand barely exists. When asked if
travel agencies work with Mexican businesses, fourteen out of twenty said yes, but customers are
mainly individuals.
Thirteen businesses advised to look for financial companies like Banks, because they are the
ones who offer travel packages to their employees and clients as rewards. Three agencies said
that shopping centers offer travel trips to their customers in a way of lottery (Win a trip to
destination X, just fill out this form and submit it). The average of the frequency of when
employees received benefit packages amounted to once every three months.
Out of fifteen calls and emails to Businesses in Mexico, only four offered employee
benefits. Calls and emails were placed to (7) Coyoacan, (3) Ciudad Nezahualcoyotl, (4) Benito
22
Juarez, (1) Miguel Hidalgo. All four of the companies who offered employee benefits were
banks. When asked what their recent benefits were, FIFA World Cup 2010 for two, I-Phone,
Disneyland (Florida), and prices valued below 5000 MXN = $400 US. The businesses who did
not offer employee benefits advised to look for companies who employ more than 50 employees.
When asked if they would consider giving a luxury shopping trip (compras de lujos en
Minnesota Mall of America) all four Banks said yes. The names of the four banks that we
contacted were: HSBC Sucursal Torre Mayor S.A. de C.V., Afore Santander Mexicano, Ixe
Banco, and Santander. It has been identified that most banks are located in the following
districts; Miguel Hidalgo(110) and Coyocan (80). In the districts of Miguel Hidalgo and
Coyocan, the three banks that were represented the most were: HCSB, Santander, and Banamex.
In Miguel Hidalgo 15 HSCB Banks, 15 Santander, and 20 Banamex have been indentified out of
approximately 110 banks in total.
According to the U.S. Department of Commerce (U.S. Commercial Service, 2009), “most
Mexicans like to buy packages that include admittance and transportation to the main attractions
and amusement parks they visit. According to the Minnesota Trade Office (B. Mattson, Personal
Communication, July 30 2010), there are approximately twenty Minnesota-based companies that
have extensive operations directly in Mexico City. Those companies include: 3M, ADC
Telecommunications, Best Buy, C.H. Robinson, Cargill, Donaldson Company, GE Capital
Solutions Fleet Services, Imation, Dairy Queen, Medtronic, Hoffman Enclosures, Starkey, and
Mosaic. As far as Minneapolis travel agencies doing inbound travel from Mexico and Mexico
City, Carlson Wagonlit Travel has an office in Minneapolis and they are the world’s largest
business travel management company. They also have an office in Mexico City. Total revenue
generated in 2008, including joint ventures, was 27.8 billion dollars. This company is based in
23
France but is partnered with Carlson Companies which is based out of Plymouth, Minnesota.
Carlson Wagonlit Travel has many global connections, which would be beneficial for marketing
Mall of America through their agency. After contacting the office in Mexico City, the agent said
that the three most popular destinations for Mexicans out of Mexico City are Panama City,
Panama, Houston and San Antonio Texas. It was discovered that when booking the flight via the
website, the Delta flight to Minneapolis had a 5% temporary discount offered.
4.2
The business to business potential target market which has been chosen is the
banks in Mexico City. The characteristics most of the banks are that they are limited liability
companies. We have also identified that there are approximately 20 major banks, with each
having more than five branch banks within Districto Federal. Most are located within the
following districts: Miguel Hidalgo, Benito Juarez and Coyoacán (Appendix 4.2). Upon
reviewing the target market, our research has shown that it would be wise to target the banks that
are the largest, as they have the most branches, therefore, having access to more capital
resources. A few examples to target would be:
HSBC S.A. México, Afore Santander Mexicano, Grupo IXE, Santander, Banco Azteca, The
Royal Bank Of Scotland México, S.A., Banamex, and Banorte.
In the Appendix, our research has identified fifteen additional banks that operate within
Mexico City. Of the ones identified, it is of special interest that several are Multinationals.
4.3
As stated, the main target markets are banks. The large banks in Mexico City have more
capital to bundle a shopping package for their employees and clients. The costs associated with
24
this shopping bundle will be the first thing to be considered. Also, the length of time on vacation
and peak banking seasons, and return times are big factors as well. The MOA will represent a
luxury shopping experience for the consumers. Since there are far too many stores to advertise,
the MOA will showcase major high end upscale stores like Burberry, Coach, Guess, and True
Religion. The banks can offer the shopping package to employees in several ways:
For Sale
Gift
Business retreats
Reward
Benefits
Bonuses
In order to be more cost effective, the bundle package will only be for the MOA experience. The
package should consist of a flight, hotel and transportation to the MOA. If the hotels are closer to
the MOA, shuttle buses can be easily provided. By making the package entirely for the MOA
alone, the cost of doing business will be lower for both the MOA and our target market. It also
makes it easier for our market to decide when their employees can receive the package. This way
they would not need to adhere to a package deal that is only good for a certain period of time (for
example, a previous bundle would only good between September 18-21st because the
Timberwolves game and the Tyler Perry play are on that weekend).
The Target market (banks) should perceive the destination (MOA) as luxurious and
representative of the U.S. “….strong local economies help pull Mexicans from Mexico” (New
York Times) The MOA is an indoor city itself with so many things to do and such little time to
spend. The MOA differentiates itself by promoting a green environment and the use of
25
renewable energy. The Mall of America is also the best place to shop (indoor mall) in any
weather 365 days a year. It features approximately 520 stores; a combination of restaurants, retail
and entertainment. The Mall also gives accessibility to upscale stores that cannot be found at a
regular outlet or in local areas. The environment is customer friendly and the people are very
diverse.
Our B2B strategy is to large banks that embrace the idea of keeping up with their
employee satisfaction to hopefully reduce turnovers. This shopping getaway is for all large banks
with a flexible budget and upper class business employees. The mall features 520 stores, which
includes several hard to find luxury stores and major attractions like Nickelodeon Universe and
Underwater Adventures .The Mall of America is an indoor shopping experience that is easily
accessible and has the best security, it is guaranteed to be the destination for all shopping needs.
“MOA is the best place to spend time and spend money
26
12.1 Conclusion/Recommendations:
In conclusion, we have found that the Mall of America should target high-tier
banks to form an effective B2B relationship. This is due to high revenue and buying potential of
employees and customers. After speaking with four different banks we found that they already
offer benefit packages to their employees. All four banks said they would consider giving a
luxury shopping trip (compras de lujos en Minnesota Mall of America). The names of the four
banks that we contacted were: HSBC Sucursal Torre Mayor S.A. de C.V., Afore Santander
Mexicano, Ixe Banco, and Santander.
This would give the Mall of America the opportunity to offer different luxury packages to the
upper-class, who will spend money upon their arrival.
Knowledge of AZ law. (Lobby against)
Translate website
Language/help accessibility in MOA
Bilingual customer service
When travelers from Mexico travel to New York or Los Angeles, it easier for MOA to infer
that distance between Mexico and Minnesota is not always a problem. The airline industry
must be aware of the growing market of Mexican visitors that have been traveling to these
destinations; so in order to capitalize from the consumers, they lower the prices to these
particular destinations by yielding the buyer power of consumers and applying economies of
scale.
27
Appendix:
3.3
28
Appendix to 4.2
29
TOWS ANALYSIS MATRIX
External Opportunities (O)1. International Markets2. Cell phone (marketing)3. Increase MOA on face book (just one picture on main page)??4.Social Media5.Green movement
External Threats (T)1. Competition / Smaller stores2. Outlet malls3. Other large indoor malls (like in West Edmonton in Canada and Dubai Mall)4. Online Shopping
Internal Strengths (S)1.Size and # of stores2. Go green (energy efficiency)3.Indoor shopping4. Security5. Luxury brands6. Accessibility (cost)
Luxury brands & Social Media
# of stores & Intl. MarketsIndoor shopping &
Go green & Green movement
Indoor shopping & Outlet malls
Security & competitionLuxury brands & Online Shopping (real/fake?)
Accessibility & similar competitors
Internal Weaknesses (W)1. International diversity2. Language barrier3. Security (teens)4. Theft
Language barrier & Social Media
International diversity & Cell phone (marketing), MOA on face book
International diversity & Other large indoor malls (both may have little or no diversity)
30
List of Banks
Grupo IXE http://www.ixe.com.mx/portal/
Banorte http://www.banorte.com/portal/banorte.portal
BITAL http://www.hsbc.com.mx/1/2/
Scotiabank Inverlat http://www.scotiabank.com.mx/IN/Pages/default.aspx
BANAMEX http://www.banamex.com/
BBVA-Bancomer http://www.bancomer.com.mx/
BANXICO http://www.banxico.org.mx /
Hsbc México S.A. http://www.hsbc.com.mx/1/2/en/home
Banco Azateca http://www.bancoazteca.com.mx/PortalBancoAzteca/inicio.do?flash=true
Banca Afirme http://www.afirme.com.mx/Portal/Portal.do
Bansefi http://www.bansefi.gob.mx/Paginas/Inicio.aspx
Banco Wal Mart http://www.bancowalmart.com/
Banco Interacciones http://www.interacciones.com/portal/?id_category=1
Banca Mifer http://www.mifel.com.mx/Portal/?id_category=1 The Royal Bank of Scotland México, S.A. http://www.rbsbank.com.mx/psp/public/pagebuilder.aspx?page=mxen0100
Ixe Banco Paseo de La Reforma 505, 06500 Ciudad De Mexico, Distrito Federal 01 55 5268 9000
Hsbc Sucursal Torre Mayor S.A. de C.VPaseo de La Reforma 505, 06500 Ciudad De Mexico, Distrito Federal 01 55 5286 3869
HSCB Mexico D.F. Tel: 5262 9105 , 5262 9117
Ixe Banco Ciudad de México: 5174 2000
Ixe Banco Teléfono(s): 5658 3441
Banco Santander Tel. (55)5544-2092 / 5544-6306
31
Santander S.A. Tel. (55)5424-3984 / 5424-4153
Alaila Restaurante Teléfono: 56166336, 4912
Benkay Restaurante Teléfono: 5280-1111
Global Trip Mexico Teléfono: (55) 53617032
Ecoexploradores Teléfono: 26147959
Ortega & Zepeda Abogados Tel: 5555591754
Integradores Tecnicos Mexico Tel: (0155) 46109210
Silaracks Tel: 55-38749972
Web Empresarial Tel: 01+55-41738176
MUEBLES Y DISEÑOS URIBE Tel: 55 26362491
Ramon Tel: (55) 42042169 o 70
Servicio Tecnico Rf Tel: 005.530-2217; 005.530-2267; 005.530-4770
Viajes Liberación México - 01 55 5279 4010
Agencia De Viajes, Viajes Aviamex Tours De México, S.A. De C.V 01 55 5705 2072
Kinich Coyol Viajes de R.L. de C.V. 01 55 5525 7512
Viajes de Superacion Tel: 55-52545122
Viajes Sol y Son Tel:01 55 5545 8215
Viaja a las Estrellas 01 55 5395 1203
32
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