Dive in the droplets of fun.

Submitted By: Ghazanfar Talib (11554) Hafiz Obaid Ur Rehman Muhammad Omer Raees Anum Altaf (8320) Muhammed Bilal (10020) Submitted To: Mr. Shahnawaz Ali Date: April 21, 2012

TABLE OF CONTENT
EXECUTIVE SUMMARY VISION MISSION VALUE ORGANIZATION OBJECTIVE AND GOALS INDUSTRY ANALYSIS PEST/EL ANALYSIS INTERNAL ANALYSIS SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS) SWOT CONVERGENCE THE MARKETING MIX PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL EVIDENCE MARKETING STRATEGIES PRICING STRATEGY DEMOGRAPHICS 1 2 2 2 3 3 4 5 5 6 7 7 7 7 7 8 8 8 9 9 10

MEDIA PLAN/ PROMOTIONAL PLAN PROMOTIONS HUMAN RESOURCE PLAN HIRING PHASE PLAN FINANCIAL PLANNING CONTINGENCY PLANNING REFERENCES APPENDIX

10 10 11 11 12 13 14 14

EXECUTIVE SUMMARY

The idea is to give people of Karachi a chance, to take a break from their busy lives and make them feel good. For this we thought of something which is not available in the market and is need of the hour, we have many boating services in Karachi and some water parks too but there is no water sports activity in Karachi. That is why, we thought of introducing a new attraction to this huge market seeking quality adventure and entertainment. By introducing water sports, we seek to target the latent demand of the market that wants to experience thrill and adventure. We plan to import jet skis and speed boats, and make it a public attraction in a serene and peaceful ambience.

VISION

To become Pakistans best and only provider of water sports, through our superior products and services and relationships, that adds entertainment in our customers life.
MISSION

To Provide BEST hedonic pleasure.

VALUE

Assurance of quality Assurance of safety

ORGANIZATION OBJECTIVE AND GOALS

To maintain gross profit of every year. We at aqua ride seek to provide best quality adventure sport is Pakistan, by our superior and specialized services. By continuously, keeping a check on the market we will create more opportunities for our business To create an environment for the lifelong pursuit of fun and excellence in water sports in Pakistan. To develop capacity what we are able to attract and cater maximum number of customers. To be recognized as the best quality water sports. Be the top choice of fun and leisure activity among people of Karachi. To create a fun filled and up-scaled entertainment platform for people of Pakistan.

INDUSTRY ANALYSIS

If we expand our scope, in the industry of water activities, our competitors can be water parks but our business is one of its kind. All water activities are away from the city, the advantage we have that we are located in city, hence access to market is becomes easy. In this way we can cater a vast market. Therefore, we say that this business is on introduction stage in this region.

Introduction stage

We assume that, this particular business at its introduction stage in Pakistan. This is a latent demand that we wish to target.
PEST/EL ANALYSIS

We are aware that the following broader external issues and activities need to be considered and understood during planning processes. These issues have the capability of influencing future Association activities and operations.
POLITICAL

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political situation in Karachi is very uncertain; we face day to day strikes, shutdowns and terrorist activities. Bribery is also one of the major issues and it will effect are finances, we need to consider this cost while performing and planning our business activity. The area we have chosen for our business activity is the prime location and very much secure that gave us the opportunity to be at a very safe side.
ECONOMIC

Due to the high cost of the sports equipment, sport participation is directly correlated to the economy. Future economic conditions are critical to long-term planning. Oil prices are raising and are volatile that will effect are cost of goods sold, this will result in raise in prices. On the other hand it will also affect the spending power of people.
SOCIAL

Health and safety issues are important considerations for more and more people. Skiing is a social, family based activity. Adventurous activities are appreciated. People look for leisure activities. People look for good entertainment attractions.

TECHNOLOGICAL

Environmental concerns for peaceful enjoyment of the outdoors and improved use of natural resources (i.e. fuels) is driving technological change in boat and engine design. Such activities yet not been provided in our area and changes in technology has no longer effect.
ENVIRONMENTAL

The mega city of Karachi in Pakistan is at high risk from sea-level rise. Our business will be affected in the monsoon seasons. The overall climate of Karachi is in favor of our core business activity as the environment remains suitable throughout the year.
LEGAL

Government boating regulations have created a requirement for licensing and business license.
INTERNAL ANALYSIS

Internal factors are accommodated in such a way that they manage external factors in favor of the firm. The internal factors in a business can be monitored by SWOT Analysis.
SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS)

Our growth and development plans must consider how the following can be harnessed for its betterment: STRENGTHS First movers advantage. We have the competitive edge over the market by providing quality entertainment on a wide scale. Location Adherents are passionate about the sport and its ideals. People define the sport they are the doers, they are the volunteers. There is a strong social and family component to the sport. It has fun and serious components.

WEAKNESSES Sport funding is limited. Limited budget. Initially we have less number of jet skis to meet the demand of customers

OPPORTUNITIES Will be the trendsetter in the entertainment industry; we can grab attention by publicity. Growing need of outdoor entertainment is our key opportunity. Capitalize on the excitement and interest in Wakeboarding and use to cross promote all disciplines. Use the sports high achievers to market and promote the sport. Build bridges with other sports with related skill sets (i.e. parasailing).

THREATS. Entrance of competitors Lack of resource / shortage/ allocation. Increasing liability and insurance issues. Environmental and ecological threats, high tide and rainy season can affect our business.
SWOT CONVERGENCE

By the extensive growth and plundering of our business, we will expand our expertise and we plan to introduce other water sports as well in this way we can minimize the threat of new entrant and also our lack of resources and ultimately convert our threat into opportunity. As we have targeted a latent demand, we will try to promote this activity and make this our strength. As we have already discussed that we plan to extend our hands in other water sports we can overcome our weakness and grab onto an opportunity.

THE MARKETING MIX

PRODUCT

Our product/ service is Jet Ski Ride, Jet ski is a small water craft vehicle which is also known as wave runner. Jet ski ride is all about speed, thrill and fun, these powerful are terrific fun for adventurous people. Its for those people who love racing vehicles and flirting with danger, this sport provides all. You would be able to enjoy the speed of the powerful jet ski and at the same time drink in the extraordinary beauty of this place. At every turn there would be something that would amaze you the scenery, the crystal clear azure waters, the flora and fauna everything there would make this experience surreal.
PRICE

Price would be set keeping in mind the demographics of market. We will have Premium price strategy for our product/ service. 15 minutes ride Rs. 700/=

PLACE

The area we have selected for our business activity is in middle of the city, nearer to market. It is very much secure. Easy excess to consumers that will help us attract more people and will help us in performing our activities. Aqua ride, will be located in the new heart of the city, DHA Phase VIII, near Emaar project. This is the ideal location for our business as it is easily accessible to our potential customers.
PROMOTION

For promotion of Aqua Ride, we will use both push and pull means of promotion.

PEOPLE

Hiring of trained and experienced will be done in close supervision, this will assure safety and quality to our customers. Our life guards and trainers will surely be professionals and highly skilled.
PROCESS

Customer arrives

Providing service

Post purchase behavior

Briefing customer about safety

Executing safety measures

Customer Feedback

PHYSICAL EVIDENCE

Our location, is a prime location in Karachi this adds value to our business. The ambience and the feel of our venue will create exotic visions and imaginations in our customers mind and hence will provide our customers with superior value.

MARKETING STRATEGIES

Here we market the existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. We are the first movers in water sports, therefore the business will enjoy competitive advantage.

PRICING STRATEGY

Pricing is a major element of marketing any product, and it is vitally important to set the right price. Our pricing strategy will premium, we will charge high price and provide high quality. It will portray better image and will help us recover sunk cost.

DEMOGRAPHICS

Age: 15 years and above Income: Rs. 50,000/= and above Family Size: All family sizes Social class: Middle class and Upper class

MEDIA PLAN/ PROMOTIONAL PLAN

When we talk about jet ski, there is no established market or industry for this particular business, our promotional strategies must be established in such a way that must be able to reflect the fun and joy in jet ski ride. Also it helps in stimulating demand among our potential customers. Advertisement in DAWN Classified on Sunday = Rs. 1300 (64 words, 25 rs for each word) 4 ads/month. Advertisement in HOMEXPRESS Magazine = Rs.17500 (50,000 copies at the rate of 0.35 paisa per copy) 1 ad/month 1000 broachers = Rs. 4,000 TVC media (style 360, Geo super and cable operators) = Rs 2 million SMS Marketing (100,000: 0.5Rs) = Rs. 50,000

PROMOTIONS

Karachi has tropical climate, keeping this in mind we will formulate our promotional plan. We will offer: Free rides at the inauguration, to guests. (One time) Seasonal Discounts (June & July vacations) 3 for 1 on the purchase of 3 rides get 1 ride for free Extending customer relation will help us promote our business Facebook rage will also help us in promoting our business; we will share the endeavors and experiences of customers on Facebook. And also share attractive pictures that would appeal to our potential customers. We conclude that our promotional strategy will be a combination of Push and Pull.

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HUMAN RESOURCE PLAN

HIRING PHASE PLAN

PLANNING/ JOB DESCRIPTION

Employees required: Life Guards Trainers Jet Ski Technicians

ATTRACTING THE CANDIDATE

Job announcement (ad in the news paper- JANG)

HIRING DECISION

Interviews

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FINANCIAL PLANNING

Financial summary/ highlights of our business are as follows: Sales Years Year 1 Year 2 Year 3 Year 4 Year 5 Net Income Year Year 1 Year 2 Year 3 Year 4 Year 5 Initial Investment Total Assets at year 0 Net Present Value NPV Ratios of Interest Ratios Fixed Asset Turnover Net Profit Margin Return on Assets
1

Sales (Rs.) 37,744,000 43,405,600 45,292,800 49,067,200 56,616,000

Net Income (Rs.) (9,040,074) (1,300,195) 2,891,748 8,857,659 25,157,628

Rs. 16,691,240.00

Rs. 779,487.86

Year 1 3.67 x -23.95% -68.6%

Year2 4.35 x -2.995% -10.95%

Year 3 6.81 x 6.385% 19.58%

Year4 4.97 x 18.052% 37.94%

Year 5 7.31 x 44.436% 51.57%

Details of financials are provided in appendices.

12

CONTINGENCY PLANNING

In a worse situation if our business venture aqua-ride fails to attract customers and remain unable to come to a break-even point in two years then we may have a back-up plan to steer consumer to our way. One of the things that we could do to possibly attract a larger number of customers to us that besides providing consumer water sports such as jet ski rides we can also bring in a other number of water entertainment for our customer catering to the segment that are young and are afraid of jet-skis or those who are little hydro-phobic. We can bring in new safe water entertainment that especially caters to kids and to hydro-phobic people. Those water sports may include sports such as: Water polo - water polo or water ball is a team water sports. This sport can especially cater to children and can attract a large number of customers who are young adolescents. Water aerobics or water gymnastics with the use of jetski for this water sports we would need to hire few professional water gymnastics that can provide our clients a show cause or can teach and train willing candidates. Waboba - Waboba is played with a waboba ball on beaches or in pools. This type of sports can easily cater to kids to youngster alike. Its a sport that keeps you fit and athletic and comes with a solution of exercise with fun! Surfing - is where the participant "surfs" behind a boat on a surfboard. This kind of activities attracts people who are up to adventurous sports and likes to take risks. Body boarding- is similar to surfing, but the board is smaller and the person (normally) lies down on the board. To make these above activities interesting to all people rather than to only those who are up to doing it, we can actually make a roundabout seating arrangement for spectators as well who can come and watch matches of water polo or can watch and enjoy water gymnastics. This will attract families to aqua-ride as well and this will help in growing our revenues most possibly.

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REFERENCES

http://onlinemedia.pk/sms-marketing.html http://www.higher.com.pk/pricelist.htm http://www.aym.ae/yamaha/productsubcategory2.aspx?id=10&subcat1Id=20 Synergy Advertisement: Imran Kapadia (0332 2204384)

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APPENDIX

Working
Land License 1000yards 100,000 per month 25,000 1,000,000 Fixed Asset Jet sky Garage Buldings Computer/Misc cost Boat Variable cost: Genator Security Guard Lifegaurds Fuel Advertising Expenses 684,450 1,232,010 25,000 1,257,010 8 1,257,010 each 50,000 each 150,000 each 300,000 each 1,510,160 Total 10,056,080 50,000 150,000 300,000 1,510,160

Working Cash

Addition of 4 jetski in the end of the 4th year

3 4 4 7,000 3,000,000

5,000 8,000 10,000 104

each each each each

15,000 32,000 40,000 728,000 3,000,000

Jetski

pkr custom(income and sales) frieght total cost

Boat

pkr custom freight total cost

811,200 1,460,160 50,000 1,510,160

Misc Cost life jackets rescue rope accesssories entertainment exp computer total Fuel(jetski) Fuel(boat) Total

24,000 (1500*16) 2,700 83,300 150,000 40,000 300,000 5,760 1,240 7,000

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Sales Forecast
Jan 3,840.00 700.00 2,688,000.00 Feb 3,840.00 700.00 2,688,000.00 Mar 3,840.00 700.00 2,688,000.00 Apr 4,340.00 700.00 3,038,000.00 May 4,840.00 700.00 3,388,000.00 Jun 6,260.00 700.00 4,382,000.00 Jul 6,260.00 700.00 4,382,000.00 Aug 4,840.00 700.00 3,388,000.00 Sep 4,340.00 700.00 3,038,000.00 Oct 3,840.00 700.00 2,688,000.00 Nov 3,840.00 700.00 2,688,000.00 Dec 3,840.00 700.00 2,688,000.00

Sales Price per ride Total Sales is Rs Jan 2

64

128 per day 3840 per month 192 per day 5760 per month 256 per day 7680 per month

64

64

Note: One bike per ride consumes 1.5ltr of fuel. Balance Sheet for year 0
For the year 0 Cash Jet sky Dep: Garage Dep: Buldings Dep: Computer/Misc cost Dep: Prepaid Rent License Boat Dep: total 1,000,000.00 10,056,080.00 50,000.00 150,000.00 300,000.00 3,600,000.00 25,000.00 1,510,160.00 16,691,240.00 total 16,691,240.00 Owners Investment 16,691,240.00

15

Income statement for year 1

Particular Sales Less: Expenses Genator Security Guard Lifegaurds Fuel Depreciation Expenses Advertising Expenses Rent Expenses Total Expenses Operating Profit Tax 6% Profit After Tax Add:Depreciation Net Profit Jan 2,688,000 Feb 2,688,000 Mar 2,688,000 Apr 3,038,000 May 3,388,000 Jun 4,382,000 Jul 4,382,000 Aug 3,388,000 Sep 3,038,000 Oct 2,688,000 Nov 2,688,000 Dec 2,688,000 Total 37,744,000

15,000 32,000 40,000 728,000 151,135 3,000,000 100,000 4,066,135 (1,378,135) (82,688) (1,295,446)

15,000 32,000 40,000 735,280 151,135 3,000,000 100,000 4,073,415 (1,385,415) (83,125) (1,302,290)

15,000 32,000 40,000 742,633 151,135 3,000,000 100,000 4,080,767 (1,392,767) (83,566) (1,309,201)

15,000 32,000 40,000 750,059 151,135 3,000,000 100,000 4,088,194 (1,050,194) (63,012) (987,182)

15,000 32,000 40,000 757,560 151,135 3,000,000 100,000 4,095,694 (707,694) (42,462) (665,233)

15,000 32,000 40,000 765,135 151,135 3,000,000 100,000 4,103,270 278,730 16,724 262,006

15,000 32,000 40,000 772,787 151,135 3,000,000 100,000 4,110,921 271,079 16,265 254,814

15,000 32,000 40,000 780,515 151,135 3,000,000 100,000 4,118,649 (730,649) (43,839) (686,810)

15,000 32,000 40,000 788,320 151,135 3,000,000 100,000 4,126,454 (1,088,454) (65,307) (1,023,147)

15,000 32,000 40,000 796,203 151,135 3,000,000 100,000 4,134,337 (1,446,337) (86,780) (1,359,557)

15,000 32,000 40,000 804,165 151,135 3,000,000 100,000 4,142,299 (1,454,299) (87,258) (1,367,042)

15,000 32,000 40,000 812,207 151,135 3,000,000 100,000 4,150,341 (1,462,341) (87,740) (1,374,601)

180,000 384,000 480,000 9,232,862 1,813,615 36,000,000 1,200,000 49,290,477 (11,546,477) (692,789) (10,853,688) 1,813,615 (9,040,074)

Balance Sheet for year 1

current assets Cash Prepaid Rent total current assets Fixed Assets Jet ski Dep total jet ski building Dep total building Computer/Misc cost Dep total misc cost Garage Dep total garage License Baot Dep: total boat total fixed assets total 500,000.00 2,400,000.00 2,900,000.00 10,056,080.00 (1,436,582.86) 8,619,497.14 150,000.00 (5,000.00) 145,000.00 300,000.00 (60,000.00) 240,000.00 50,000.00 (10,000.00) 40,000.00 25,000.00 1,510,160.00 (302,032.00) 1,208,128.00 10,277,625.14 13,177,625.14 Owners Investment additional invesment less: retianed earning 16,691,240.00 5,526,458.71 (9,040,073.57)

total

13,177,625.14

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Income Statement and Balance Sheet for year 2

Particular Sales Less: Expenses Genator Security Guard Lifegaurds Fuel Depreciation Expenses Rent Expeneses Advertising Expenses Total Expenses Operating Profit Tax 6% Profit After Tax Add:Depreciation Net Profit Total 43,405,600
current assets Cash Prepaid Rent total current assets Fixed assets Jet ski Dep total jet ski building Dep total building Computer/Misc cost Dep total misc cost Garage Dep total garage License Baot Dep: total boat total fixed asstes total 2,213,420 Owners Investment 1,200,000 less: retianed earning 3,413,420 10,056,080 (2,873,166) 7,182,914 150,000 (10,000) 140,000 300,000 (120,000) 180,000 50,000 (20,000) 30,000 25,000 1,510,160 (604,064) 906,096 9,974,170 11,877,431 total 22,217,699 (10,340,268)

198,000 422,400 528,000 10,156,148 1,813,615 1,200,000 32,400,000 46,718,163 (3,312,563) (198,754) (3,113,809) 1,813,615 (1,300,195)

11,877,431

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Income Statement and Balance Sheet for year 3

Particular Sales Less: Expenses Genator Security Guard Lifegaurds Fuel Depreciation Expenses Rent Expenses Advertising Expenses Total Expenses Operating Profit Tax 6% Profit After Tax Add:Depreciation Net Profit Total 45,292,800

216,000 460,800 576,000 11,079,435 1,813,615 1,200,000 28,800,000 44,145,849 1,146,951 68,817 1,078,133 1,813,615 2,891,748

current assets Cash total current assets fixed assets Jet ski Dep total jet ski building Dep total building Computer/Misc cost Dep total misc Garage Dep total garage License Baot Dep: total boat total fixed assets total

8,118,783 Owners Investment 8,118,783 less: retianed earning 10,056,080 (4,309,749) 5,746,331 150,000 (15,000) 135,000 300,000 (180,000) 120,000 50,000 (30,000) 20,000 25,000 1,510,160 (906,096) 604,064 6,650,395 14,769,179 total

22,217,699 (7,448,520)

14,769,179

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Income Statement and Balance Sheet for year 4

Particular Sales Less: Expenses Genator Security Guard Lifegaurds Fuel Depreciation Expenses Advertising Expenses Rent Expenses Total Expenses Operating Profit Tax 6% Profit After Tax Add:Depreciation Net Profit Total 49,067,200

234,000 499,200 624,000 12,002,721 1,813,615 25,200,000 1,200,000 41,573,536 7,493,664 449,620 7,044,044 1,813,615 8,857,659

current assets Cash total current assets fixed assets Jet ski Dep total jet ski building Dep total building Computer/Misc cost Dep total misc Garage Dep total garage License Baot Dep: total boat total fixed asstes total

13,762,018 Owners Investment 13,762,018 less: retianed earning 10,056,080 (5,746,331) 9,337,789 150,000 (20,000) 130,000 300,000 (240,000) 60,000 50,000 (40,000) 10,000 25,000 1,510,160 (1,208,128) 302,032 9,864,821 23,626,838 total

22,217,699 1,409,139

23,626,838

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Income Statement and Balance Sheet for year 5

Particular Sales Less: Expenses Genator Security Guard Lifegaurds Fuel Depreciation Expenses Advertising Expenses Rent Expenses Total Expenses Operating Profit Tax 6% Profit After Tax Add:Depreciation Net Profit Total 56,616,000

252,000 537,600 672,000 12,926,007 2,115,647 14,400,000 1,200,000 32,103,254 24,512,746 1,470,765 23,041,981 2,115,647 25,157,628

current assets Cash total current assets fixed assets Jet ski Dep total jet ski building Dep total building Computer/Misc cost Dep total misc Garage Dep total garage License Baot Dep: total boat total fixed assets total

41,035,293 Owners Investment less: retianed earning 15,084,120 (7,484,946) 7,599,174 150,000 (25,000) 125,000 300,000 (300,000) 50,000 (50,000) 25,000 1,510,160 (1,510,160) 7,749,174 48,784,466 total

22,217,699 26,566,768

48,784,466

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