Escolar Documentos
Profissional Documentos
Cultura Documentos
0
Executive Summary 1.1 1.2 1.3 Objectives Mission Keys to Success
3
4 4 4
2. 0
Company Summary 2.1 2.2 2.3 2.4 Company Ownership Start-up Summary Company Locations and Facilities Company Values
5
5 5 8 8
3. 0
Products 3.1 3.2 3.3 3.4 Product Description Competitive Comparison Future Prospects Fulfillment
9
9 9 9 9
4. 0
SWOT Analysis 4.1 4.2 4.3 4.4 Strengths Weaknesses Opportunities Threats
10
10 10 10 11
5. 0
Market Analysis Summary 5.1 5.2 Market Segmentation Target Market Segment Strategy 5.2.1 Market Needs
12
13 13 13
14 14
6. 0
Strategy and Implementation Summary 6.1 6.2 6.3 Value Proposition Competitive Edge Marketing Strategy 6.3.1 Product Marketing 6.3.2 Price Strategy 6.3.3 Promotion Strategy 6.3.4 Distribution channel Sales Strategy 6.4.1 Sales Forecast Corporate Social Responsibility
15
15 16 16 16 16 17 19 20 20 21
Human Resources Summary 7.1 7.2 7.3 7.4 Management Team Personnel Plan Training Feedback and Control
22
22 22 23 24
8.0
Financial Plan 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 Important Assumptions Break-even Analysis Key Financial Indicators Expense Forecast Projected Profit and Loss Projected Cash Flow Projected Balance sheet Business Ratios
25
25 26 27 27 28 29 32 33
9.0
36
36
1. Executive summary
Travel Solution will be a company that will provide the most suitably designed as well as the customized travel packages to its customers. Today's extremely stressful work environment dictates that individuals requires some joyful holiday, this presents an opportunity that we may exploit, and provide them stress-free joyful refreshing holidays with cost competitive and customized packages according to their needs. This project plan is developed to get the required finance for the project. There financing will be required to purchase busses, cars, the working capital and to cover the expenses for operation for first year. The finance available today with the company is about Rs. XXXXXX Travel Solutions will be incorporated as LLC. This will shield the owner Mr. Amit M. Rampure and it will find investors for additional financing to make the company stable. The investors are treated as shareholders. The financing ,in additional to the capital contributed from the owner, shareholders and bank will allow the Travel Solutions to successfully start and maintain the operations through one year. A unique, upscale innovative idea of the travel packages will help Travel Solutions to become successful in first year of its operations. Company will market its products through aggressive marketing, innovative concepts, participating in trade shows, newspaper ads etc. Successful operation in year one will provide Travel solutions a base for its market to move forward with high growth rate.
1.1 Objective
Travel Solutions objectives for the first three years of operation include:
The creation of a unique, upscale, innovative and customized tour Packages that will differentiate from other companies The formation of a companys image that will bring people with diverse interests and backgrounds together in a common forum. To serve its customers with best possible quality and provide them more things in price on one.
1.2 Mission
We want to serve our customers with best possible service and provide them the kind of comfort they want. We would also want to customize our tours as per our customers need without reducing joy or quality of tour. People of all ages and backgrounds will come to enjoy the unique, upscale, joyful, and refreshing environment that Travel Solutions provides.
Serving with best possible quality. Customized and attentive approach to its individual customers Making tour packages more interesting with innovative ideas. Make Tour packages more attractive as well as cost effective. The establishment of Travel Solutions as hub for socialization and entertainment.
2. Company Summary
Travel solutions will be a company which will organize tours to different parts of country. The company will start its operations from Pune and provide service to customers targeting Maharashtra area as the first destination. It will subsequently launce its service to other parts of country. It will focus initially on providing and satisfying two kinds of tours: Yatra: Different religious places Heritage sites: This will undertakes site tours like Ajanta-Ellora, Forts etc.
As it grows it will take on people and expand into related markets. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.
Description
20,000
Start-up Assets
Sr. No. 1 2 3 4 5
Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets
Description
Sr. No.
Assets
Description
Amount reqd.
1 2 3 4 5
Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
0 20000 0 0 20000
Sr. No.
Capital
Description
Amount reqd.
1 2 Sr. No. 3 4 5 6 1 2 3
Description
Amount reqd.
Liabilities
4 Sr. No.
Investor 3 Current Borrowing Investor 4 Long-term Liabilities Additional Investment Requirement Accounts Payable (Outstanding Bills) Total Planned Investment Other Current Liabilities (interest-free)
0 0 Amount 0
Description
Total Liabilities Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding
Start-up
Click to Enlarge
We intend to conduct our business ethically and transparently, respecting all applicable laws. We intend to be a responsible corporate citizen fulfilling our obligations as an integral member of society. Hence our business decisions shall give appropriate weight and consideration to social and environmental impacts.
We intend to provide products of uncompromising quality to meet the needs of our customers. We intend to seek mutually beneficial and enduring relationships in all the commitments that we make, ensuring that they are straightforward and honest. Hence our communication shall be open and accurate, internally and externally.
We intend to optimize the creation of wealth to provide fair reward and recognition for the contributions of our stakeholders. Ultimately we intend to uphold all the above company values, promoting our employees and respective third parties engaged by us to do likewise.
Through promotion and implementation of the above stated company values we believe that we will be able to attain our corporate and stakeholders' goals and objectives for the benefit of all concerned, in particular the communities in which we will operate.
3.0 Products
Travel Solutions will provide all kind of travel and tour services to its customers. Some of the Tours designed by the company are AshtaVinayak yatra, Shakti, Sai, Ajanta etc. Please see the concerned leaflets for details. We also provide customers the customized travel solutions depending on their suggestions and requirements.
Identifying competition in terms of companies that fill the same needs that we do, our competitors are few in our main tour business, though dominant in the market. Hence there will be a need to strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms.
3.4 Fulfillment 1. The key fulfillment and delivery will be provided by the principals and values of the
business. The real core value will be the provision of a quality based service. Hence we intend to ensure that tours we provide to customers of high quality and service.
2. We will try to build our travel image by mouth to mouth publicity, advertising, and taking
part in social functions.
4.1 Strengths
Strategic market segmentation and implementation strategies. Diversified market segments: ensuring the lack of dependency on one particular market.
Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business knowhow.
Establishment and maintenance of strong capital base. An aggressive and focused marketing campaign with clear goals and strategies.
4.2 Weaknesses
Lack of a reputation in comparison to our competitors. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company. A limited financial base compared to the major players in the industry. Lack of clear-cut channels of distribution. Establishment on the Internet will produce technological challenges.
4.3 Opportunities
Specific niche: we will design special and customized packages for our customers. The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious). Internet marketing and sales--though still in its infancy.
4.4 Threats
The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including:
10
identify and target your most profitable customers and prospects. Critical issues in the travel industry include: impact of downturn in travel
11
acquisition of customers maximizing customer value Multi-channel marketing customer retention Claritas' customer segmentation systems are an important element of any marketing program for the travel industry. Gain a better understanding of your existing customer base and learn how to more expertly target new customers. Analyze the composition and behavior of your segments to uncover a wealth of information to help guide all aspects of your marketing campaign. Focus your efforts on
optimize advertising and promotional activities. By linking travel behaviors with consumer media preferences for newspapers, magazines, television, radio, and the Internet, you can penetrate the relevant media channels to reach your most likely consumers. We appreciate that entering such a market is not a bed of roses, particularly as it is monopolistic. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions. The above prognosis influenced our decision to enter the brewing industry.
12
exists, including where to find it. The marketing will convey the sense of quality in every picture, every promotion, and every publication. There is already a sense of segment strategy in the way we define our target market. We are choosing to compete in areas that lend themselves to local competition, service and channel areas that match our strengths, and avoid our weaknesses.
13
its September 2005 edition. A 5,000 year history, culture, religion and alternative medicine fascinate both budget and luxury travelers alike. The Department of Tourisms resolve in promoting Indian tourism has strengthened as it recognizes its potential. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP. It also makes a direct contribution to economy with significant linkages with agriculture, horticulture, handicrafts and construction. The outlay on tourism development rose to Rs7, 860 million in 2005/2006, from Rs3, 500 million in 2003/2004, and continued to focus on the Atithi Devo Bhavan campaign, targeted at the inbound foreign tourists in the country. Translated literally this means Guest is God. With 390 million Indians on the move in 2005, it is little wonder that it is domestic Travellers that sustain the travel and tourism business. Domestic business travel and visiting family/friends, as well as pilgrimages, contributed to the 13% growth in number of trips within the country that year.
14
We intend to achieve growth by creating a more enthusiastic customer culture than that of our competitors. All criteria from price competitiveness to staff attitudes are to be initially measured six-monthly, and then on a more regular basis as time goes on. The results will go down to depot level and be compared with the overall target. This form of consistent measurement of strategic goals will ensure that the organization remains focused on its goals and objectives, making any necessary adjustments where need be.
15
oneself amongst friends, family and/or colleagues. This will come out in our advertising, delivery and collateral such as sales literature and business cards. Our product marketing's most important challenge will be the problem of being accepted and appreciated on the market as a provider of quality products. Hence we intend to not only meet customers' expectations but to exceed them. We intend to focus on the individual or group who want to enjoy themselves through their requirements of tours. However, not wanting to limit our horizons in the initial period, we intend to be continually looking out for opportunities that we may exploit. In all cases we intend to provide a thorough understanding and appreciation of the products to the customer and the benefits of them.
16
brochures and other sales literature, including promotional material such as pens, complimentary slips and stickers. Due to the fact that our products are in the introductory phase on the market, promotional expenses are high in order to generate customer attention and knowledge of our products existence. We intend to spread the word about our business through the following: Advertising We intend to undertake extensive advertising of our packages in addition to our brand name--company name. This is so as to instill awareness and knowledge of our existence in the market place, which hopefully shall convert into market share. Hence the need to ensure that our packages are constantly available to our target market, and of consistent high quality. Whilst we are committed to providing products of uncompromising quality to meet the needs and expectations, the company believes its products should be advertised and promoted in an honest and ethical manner that respects the values of our consumers' societies. A constant look out will also be made of any special editions in the local newspapers, which may provide an opportunity to advertise.
Events These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to participate in trade shows. Not only will these increase awareness of the products. The organization will be able to take advantage of this in all its promotional campaigns, adding leverage to its reputation and image. Undoubtedly this would add confidence and pride in our staff complement as their hard work would be recognized often at the highest levels. Communicating such achievements often gives customers a feeling that they can rely on the product, and this builds strong customer loyalty Public Relations Recognizing that we are relatively new on the market there will be a need to organize an event, of grandeur nature, introducing ourselves onto the market. At this we intend to invite potential customers, senior officials, including the Minister of Industry and Commerce, and other stakeholders so as to penetrate the market. In collaboration with this we also intend to place news stories and features in magazines and newspapers to keep stakeholders updated on the latest developments and to increase awareness. This will assist in the recognition and appreciation of our company in the surrounding community especially. Our efforts on community service will show that the company has its community at heart, contributing towards
17
the establishment of a good and reputable image. Homes for the under privileged will be also be built in the medium, to long term as we plough back into the society we operate in. In addition we intend to pursue educational sponsorship for the less advantaged but promising young individuals in the community. This will constitute some of our corporate social responsibility details of which are provided in the respective section. We also intend to experiment with a road show in the various often-neglected remote areas giving out caps, bags, and other such prizes to individuals who answer questions correctly. This will also enable our business name and products to be better known by the respective communities. However we are extremely confident that these road shows if well planned will be a success as they encourage community participation. Hopefully visitors will leave impressed and confident in our products, adding to the possibility of positive referrals. Personal publicity This shall be undertaken in the form of sales calls whereby a sales person will go out to potential customers and distributors informing them what products we are able to offer them. In addition the sales person will listen to client's needs at close hand, so as to ensure that the product is delivered timely and that it is the right product as demanded by the surrounding community. Close analysis shall also be undertaken of the respective communities. This will ensure that our products are customized as much as possible to the surrounding community's needs and wants. In cases where there is the opportunity of obtaining a large order it may be necessary for the top management to go out personally, especially considering the fact that we are still a relatively new firm in the market. Direct Marketing This will be used, but only to a limited extent, in the form of telemarketing and informing potential customers and obtaining referrals where possible. In the case of telemarketing it will involve our targeting potential customers/distributors of our products and informing them of our existence and the products we offer. We may then arrange for an appointment with the respective decision-maker/order-maker, with the intention being to lure them into ordering one or more of our product lines. Internet Marketing The increasing growth of the Internet as an information source provides an opportunity that we may exploit. This is particularly so in view of the increasing investment and global trade amongst countries, as both large and small organizations look at obtaining the best deal possible. More often than not these organizations will seek out potential clients over the Internet due to the cost of transport and accommodation, apart from the obvious time factor,
18
which is increasingly becoming of importance in view of the dynamic environment. However this will require adequate planning and research so as to establish a professionally done website. This will mainly serve foreign customers and other stakeholders including potential investors. In all the above we intend to communicate our ability to provide good quality service that will satisfy the customers needs. Hence our messages will influence the buying decision of prospective customers by emphasizing our unique selling proposition, and persuade prospective buyers that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in tandem so as to maximize their effect.
19
Sales Monthly
Click to Enlarge
Sales Forecast Year Sales Yatra others Customer customized Total Sales 2007 2008 2009
20
21
Responding and promoting human rights issues, such as equity in the workplace and in community relations. Adoption of a good remuneration policy aimed at developing our people through employee benefits, training and group initiatives. Maintaining preventative health and safety structures for employees and support for surrounding communities.
22
Year President and CEO Operations Manager Marketing Manager Office manager Account officer Driver-1 Driver-2 Total People Total Payroll
2007
2008
2009
7.3 Training
In-house training shall be continuous with regular external training being undertaken particularly following any new developments in the market. This is so as to ensure that we are continuously able to anticipate our markets needs--a proactive approach, which is so essential if we are to gain and maintain a competitive advantage. Internal training will not only include product and technical aspects, but also expand to give much greater knowledge of customers, market trends, products, new technology aids, and time management amongst other such variables. We intend to conduct health education sessions for groups and individuals on health risks in the workplace, balanced with lifestyle education and employee assistance programs that incorporate rehabilitation and counseling in a range of illnesses and social or personal problems. This is of particular importance in view of the AIDS epidemic that has grappled the country and continent as a whole to unparalleled levels.
We acknowledge the fact that successful recruiting, motivation and discipline procedures are keys to the growth of the organization. Hence we intend to promote and maintain good labor relations, strong morale and high quality work per employee.
23
philosophy. Such a culture will enhance innovativeness and creativity in turn leading to job satisfaction and enrichment.
24
Willingness to follow the company and contribute valuable input to strategy and implementation decisions.
General Assumptions Year Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 0 0 0 2007 1 2008 2 2009 3
25
Break-even Analysis
Click to Enlarge Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
26
Benchmarks
Click to Enlarge
27
Pro Forma Profit and Loss 2007 Sales Direct Costs Other -----------Cost of packages Sold ----------------------2008 2009
Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other -----------Total Operating Expenses -----------------------
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred
Cash flow projections are critical to our success. Detailed monthly numbers are included in the
Cash
Click to Enlarge
Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations
29
New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received
Expenditures
Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent
30
Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets
Long-term Assets
31
Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities
Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital
Net Worth
32
Other Current Assets Total Current Assets Long-term Assets Total Assets
Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes 100.00% 100.00% 100.00% 100.00%
Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets
33
Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover
Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
34
9.0 Controls
The local tourism market has been growing steadily over the last few years due to increases in people's disposable income and opening of the economy. With this in mind we intend our marketing programs to expand accordingly. The introduction of quality catalogues and sales literature will enable travel Solutions to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, a presence on the Internet and participation in regional trade shows will be key milestones to expanding sales and marketing potentials through the utilization of new channels and identification of potential customers. Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in-line with our intended objectives. In summary we intend to undertake the following: 1. Tracking and follow-up: We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement.
35
2. Market segment focus: We intend to have the discipline to maintain the market segment focus. 3. Saying no: Though difficult initially, we intend to be able to say no to special deals that take us away from the target focus and are unprofitable.
9.2 Contingency Planning 1. We intend to watch our results very carefully. We may need to re-design our certain
packages if we cannot get the margin up becomes difficult to obtain. We might be able to avoid the straight competition with the major companies by focusing more on the previously mentioned products. 2. Another possibility is the introduction of a new company(s) in our niche. Hence the need to undertake aggressive marketing and networking.
3. We need for commitment in our work and striving of total quality in our organization.
36