1. Business Plan The nature of the business is travelling, tourism and entertainment which will be service based.
The name of the business will be ‘Thar Safari’. It is a thrilling
experience travelling through a region known as Thar Desert, which till date remains virtually isolated from the rest of the world. A completely different world altogether waits for the traveler, young adventurist and is a complete place for leisure amongst group of friends. All over the Desert tour of Thar, the sun-rising and sun-setting scenes, camel caravans, grazing and traveling herds, big and small sand dunes with thorny bushes, traditional dresses and jewelry of women, folk music and dances may attract you for their richness and originality. One encounters typical lifestyles, culture, desert safaris, customs, stories and experiences. The business will be a new venture and the nature of the Business will be private limited. The Directors of the company will be equally responsible for the profit and loss sharing. Any profit will be shared at the end of the year when the books will be closed. The Directors of the company are friends and are graduates from the SZABIST. Mr. Aurangzeb holds a Bachelors and Masters degree in Finance. Mr. Talha, also hold a Bachelors and Masters Degree in Marketing and Mr. Musavir hold a Bachelors and Masters Degree in HR. They do not have much experience in this business but possess good management skill. They have the experience of doing some successful projects in their university like re-launching of Mr. Burger outlet, Student Biryani and etc. They belong to the business families which have their own family business running.
2. Product and Services ‘Thar Safari’ will be service based and will be selling different packages to cater wide variety of market. The packages would include travelling to the desert, food and other entertainment activities. Additional services include providing tour guide 1|Page
and a superior offering that includes access to better than average terrain and activities, accommodations, and entertainment such as dune bashing and camel safari. The value added offering is its knowledge and expertise, specialty focus on adventure travel, which translate into increased satisfaction for the customer. The way it is unique from other safari is that there is no need to travel to other countries like Dubai to enjoy safari experience and you could easily have a better experience being in your homeland. The other difference is that Thar is full of cultures and history loving people could easily explore it through our experienced travel guides. Our customer will be our first priority giving them the best service at affordable price.
3. The Market 3.1 The Market Summary Although it is not the right time to launch this business because of global economic crisis the assumption is that by the year 2011 when the business will be started all conditions will be restored to normal. The market for tourism and entertainment is a growing market. According to TDCP (tourism and development corporation Pakistan) it is anticipated that by the year 2018 the tourism industry will surpass all the other industries, in revenue and employment generation.1 Leisure travelers are classified according to the types of trips they take, income, or age. The Three primary leisure travel groups are: 1. Adventure, Special-Interest, Honeymoons & Sightseeing Trips. 2. High-Income Travelers. 3. Families & Students So according to the emerging market and being a leader it can capture a huge market share in this business.
1www.tdcp.gop.pk/tdcp/AboutTDCP/WhatTDCPisdoing/DevelopmentProgram/tabid/535/Default.aspx
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3.2 Market Need Travel and entertainment activities are a part person lives they need some leisure and entertainment for relaxation. Many potential customers are unsure of desert safari and this business can be more attractive through better promotion. Thar Safari is confident in its ability to do so. Thar Safari also known as TS can save the customer time and money, as many of them spend thousands to enjoy desert safari and it will also help to ensure that customers are satisfied with their vacation.
3.3 How the setup will be developed? The setup will be developed by making an office in the Karachi in the area of Shahrah-e-Faisal for reservation purpose. Then as we will be providing food, accommodation and other entertainment activities in the desert an attractive place in the desert will be acquired with the permission of the government or the concerned authority so in future to minimize the losses. Then there is a need for vehicles which will be needed for transportation purpose. These vehicles would be not normal ones like Toyota Corolla; they would be 4 x 4 SUVs such as Toyota Surf or Toyota Hilux that could be used for a smooth drive in the desert sand. In the start we would be purchasing 8 of them and would include more in the future as our business would be expanding. The experienced divers would be hired who could handle the driving in the sands as there are many chances of the vehicle to turn over if not handled properly. A partnership ship will also be formed with the people of Thar who have camels so that camel safari could also be provided to the customer. Other workers and professional staff would be hired as per requirement. As being the leader in the industry we would be getting a trade mark of our design so that no one else could copy it and we would minimize the possibility of entering new entrant in this business.
4. Main Analytical Techniques
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4.1 SWOT Strength •
Market leader: As being the first one to explore this business most of the population would be targeted and other entrants would be the follower or challenger to follow.
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Location: It will be ideally located where the culture of Thar could also be observed and desert safari could be enjoyed.
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Experienced Drivers: Our drivers are professional and licensed drivers and are trained in First aid, to help them in case of any accident.
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Popularity of the business: These types of Entertainment are becoming very popular, such as sand skiing, Camel rides and dune bashing have been popular ones in other deserts.
Weakness •
Start-up: As a startup there could be chances of odds thing to occur although care would be taken.
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Limited Pay: During the first year of the business the workers will be given a very little pay so there could be chances they might not turnover or get de motivated.
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Financing: The cash position of the company in year one would also be vulnerable as cash outflow would be more than the cash inflow.
Opportunities •
Become a premier service provider in this field of business as se have the better management.
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Expand to national level that it is currently in the province of Sindh and would be difficult for people from other provinces to have this experience so same set up could be arranged in Punjab province near Thal Desert and in Balochistan province near Cholistan Desert.
Threats •
Economic Downturn: The current economic situation could pose a threat to the business as people would save more and spend less toward these types of activities. 4|Page
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Political Instability and uneven law order situation. This instability can cause the fear in the mind of people to use this service.
4.2 Macro Environment Factor Political Factor The political factor in the country Political unrest, military action, and other issues determine availability to many customers. These situations affect the entertainment industry as people will develop the fear and will not travel to far places. Permission from Thar would be taken on legal basis where government would be briefed about the new business in the industry.
Economic Factor Due to an economic downturn, entertainment is affected. Purchasing power has declined due to which less are willing to spend as prices of almost all the commodities have inflated.
Social Factor In this era where every person is busy Leisure time is limited and is in competition by other responsibilities and recreation options.
4.3 Competitor analysis Thar safari does not faces any direct competition as there is no one in this business rite now but however for leisure time for group of friend there are some indirect competitors who have many to spend for the whole day like dream world, farm house and amusement parks such as Aladdin water park, Sun Way lagoon and etc. In other words all those would be consider as indirect a competitor who offers entertainment and traveling, but as mentioned earlier Thar safari will create a customer delight by giving them, unique and exclusive packages that will also minimize these indirect competitors.
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5. Strategy and Tactics 5.1 Vision To make Thar safari a preferable entertainment world wide by giving the unique experience ever.
5.2 Mission Thar Safari is a company that specializes in providing desert experience. We provide custom packages according to the budget. TS mission is to become the foremost provider of desert safari to the target market. TS employees and owner are devoted to the work. TS seek to connect expert with service providers, entertainment activities, and accommodations that fit the client's desires and budget.
5.3 Objectives Marketing Objectives •
Achieve an annual growth rate of at least 5-10%.
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By the end of year three, achieve 15% of sales through the corporate sector.
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Become the market leader of Desert Safari in the Karachi.
Financial Objectives •
Generate sales of approximately Rs 2,000,000 in year one and increase sales 10% annually.
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Capture and maintain a Prominent and greater Market Share than others in the industry.
Strategy •
Develop brand awareness through the use of effective advertising, marketing communications and promotion.
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Successfully position ourselves as specialists.
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Communicate the differentiation and quality of our offering through personal interaction and media 6|Page
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It will create such an experience that customer will repeat the purchases and spread a positive word of mouth about the service. So viral marketing will be a part of the campaign.
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It will also perform CRM where a database is setup to keep a track of loyal customers.
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Effectively segment the market and target them.
6. Marketing Plan 6.1 Marketing Mix Product/Services The service includes different packages to cater wide variety of market. The packages would include travelling to the desert, food and other entertainment activities. Different packages according to the purchasing power of the customer A/C Camps These camps would be air conditioned for those are willing to spend more and are more interested in having dinner and relaxing at the camp. This package would be exclusive for the upper-upper class whose disposable incomes are high. Luxury Camps These camps would be ventilated with air cooler. This could be the excellent camps for the groups of friends and families who contribute to have these entertainments and recreations. This package would be for upper class. Deluxe Camps These camps would be for the upper-middle class who would like to spend on these activities but in relatively few amounts. 7|Page
The Package includes •
Welcome Drink On Arrival
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Camel Ride For Sunset (02 person On Each Camel)
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Evening Tea/Coffee & Snacks
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Food of all kinds
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Camp Fire (In The Winters Only)
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Thar Folk Music & Dances
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Tented Accommodation For Night Stay
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On The Following Day Breakfast
Additional Services •
All kind of drinks.
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Camel Ride ( Beyond The Package)
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Cocktails at Dunes
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Gala Dinner at camp (Minimum 10 Persons)
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Dinner On dune
Extra Activities Can Be Arranged •
Conference/Seminar
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Quad Riding
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Jeep Safari/Camel Polo/Camel Race
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Sand skiing
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Special Gala Evening
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Mobile Camping’s
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Sunset photography
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Sheesha (Flavored)
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Cultural Ride
Price A/c Camps * Two People 9999/Single 8999/-
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Luxury Camps* Two People 7999/Single 6999/Deluxe camps* Two People 6999/Single 5999/*On booking for groups of more than twelve special discounts (30%) would be given. * Children’s below 15 will be charged 3500/Additional cost of other services •
All kind of drinks. Rs 50 to 175/-
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Camel ride ( Beyond The Package) 350/-
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Cocktails at Dunes 200/-
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Gala Dinner at camp (Minimum 10 Persons) 1000/- Per head
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Dinner On dune 1500/- per head
Place The
Distance between
Thar
Karachi Karachi
and
Thar
is
247.06 kilometers. The
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approximate travel/road distance can be around 284.12 km to 308.82 km. It would take around 4 to 5 Hours at an average speed of 80 km/hr. An office would be physically located in Clifton and/or Shahrah-e-Faisal. Other than the entire setup would be arranged in Thar Desert. We would require a large place for this because of the safari experience. The area we would require is approximately 5 acres. Most of the area will be allotted to safari experience.
Promotion TS will keep an opening ceremony as a part of promotion. The offering for different packages will be promoted through providing information. The medium that it will use most will be electronic media, print media and internet marketing as a tool for promotion. During a grand opening it will offer a special discount for the first month of it startup.
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6.2 Target Market The target Market would be from the upper-middle to upper class because larger segment could be segmented. The middle income group could opt for less expensive packages.
6.3 Market Segmentation Geographic Segmentation Country City Climate
Pakistan Karachi Moderate Temperature
Demographic Segmentation Age Gender Family life cycle Income Education level
Above 18 Male and Females Bachelors, married, new couples, married with children Above Rs 35,000 per month Primary, Secondary, Under Graduate and Post Graduates
Psychographic Segmentation Outdoors, enthusiast, status seeker, adventurist and all of them who would love to travel and better spend their holidays and vacations.
Psychological Segmentation Personality Involvement
Social and extrovert High because people involve themselves most for selecting the right place for entertainment they would evaluate the worth they are paying and the amount of service they are
Attitudes
getting. Positive attitude towards entertainment
Socio Cultural Segmentation Cultures Religion Social classes
Pakistani and tourist Mixed Elite, upper and upper – middle class 11 | P a g e
Use related/ Situation Segmentation Time Objective Awareness Status
Leisure Have fun Are aware of desert safari but this form of entertainment is not available in Pakistan.
Benefit Segmentation The customers are getting the extent of quality service with the amount of money they are paying for this activity.
6.4 Competitive Advantages The competitive edge of Thar Safari is its focus, passion, dedicated work, and in its superior product with Exciting packages. Thar safari provides a differentiated offering with creative management and commitment.
7. Organization Plan 7.1 Management and organization The initial management team depends on the founders of Thar Safari. Initially there would be 3 Directors of the company for different departments. A board of directors will be formed and additional employees will also be added in Operation, Finance and marketing respectively.
7.2 Organizational Structure Thar safari will begin operations with full-time positions and will hire contractual employee for sales and field operations. It will also hire the permanent managers for Marketing,
Finance
and
Operation
under
their
supervision
will
be
others
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subordinates and each manager would be under the supervision of the Directors of their respective departments. •
Director Marketing : Mr. Talha
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Director Finance: Mr. Aurangzeb
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Director Operation and HR : Mr. Musavir
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Line Managers and other employees.
7.3 Departments •
Human Resource
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Finance
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Marketing
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Operation
7.4 Organization Hierarchy
7.5 Recruitment and Selection There would be proper hiring for the drivers with assessing their driving skill in the desert. Trained employees will be hired who will be selected through formal procedure held by the HR Department. After the selection the desired numbers of employees they will be trained according to the company’s goal and objectives. They will be given above salary above the market rate so that they could remain motivated and better serve the customer.
8. Financial Plan 8.1 Sources of Finance •
Four wheeler will be bought on lease from banks which is the one of the major cost
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Short term loans from bank 13 | P a g e
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Initial investment by the partners
8.2 Capital Required
Asset 8 four wheeler 10 quad bikes Setup Miscellaneous
Expenses Rent Fuel Camel rides
Per Amount (approx) 2,000,000 each2 90,000 each3
4000 per trip + 2000 150/ ride
Lease payments Interest payments Advertising *tentative
Total* 16,000,000 900,000 1,250,000 600,000
Total* 80,000 60,000 (Varies) 9,000 (Varies) 80,000 5,000 50,000
8.3 Assumption •
Economic condition will improve in the country and favorable for the company.
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Political situation in the country will also stabilize by 2011.
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Entertainment Industry will grow.
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Other factors remain constant.
8.4 Forecasts in the business plan
2 Price 2,000,000 from cardeals.com 3 Price from internet varying ¥ 500,000 to ¥ 750,000
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The sales during the first year will be less as it will be in the introductory stages and as a new it will have to heavily promote itself through marketing so its marketing and other overhead expenses will be too high. Hence low sales and high expenses will lead to minimum profit in the first year but as the business will grow it net profit will also increase if condition remains constant.
9. Exit Strategy In case we have to finish off the easiest approach is to sell the asset that we have purchase to any tourist industry because they are the one who can utilize these very effectively. The asset like four Wheels car will be from bought from bank on lease. If the company fails to pay the lease payment the bank has the every right to take back the vehicles.
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