New Business Plan

Project-The New Camp PREPARED FOR BODIRUJJAMAN CONTENTS . †¢ Executive Summary03 †¢ Description of Venture04 †¢ Mission and Vision05 †¢ Market Analysis05 †¢ Competitive Analysis07 †¢ Strategy10 †¢ Services 11 †¢ Marketing & Sales13 †¢ Human Resource Plan16 †¢ Customer Service and Support17 †¢ Financial Data19 †¢ Conclusion21 Executive Summary The main purpose and objective of our assignment was to develop a business plan in perspective of our country.The New camp as we want to call it is a camping site that we plan to introduce for the first time in Bangladesh. The idea is to provide accommodation services to locals and tourists during peak seasons but in a unique way, that is our services will be based on outdoor activities. During peak seasons, especially the winter season, it is really difficult to get a place to stay in Cox’s bazaar as most hotels and motels are booked by tourists. As a result, many people are una ble to spend their holidays in Cox’s Bazaar just because they could not find a place to stay.This is where we want to take the opportunity to capitalize on the situation and provide accommodation services which is going to be much cheaper and affordable for the tourists and other potential local customers. As the set up cost of the venture is Low, we can take the opportunity of cost leadership thus making our business profitable. The business: Description of venture The New camp we want to identify it is a camping site that we plan to bring in for the initially in our country. During peak seasons, it is hard to get a place to stay in Cox’s bazaar as most hotels and motels are booked by tourists.As a result, many people are unable to spend their holidays in Cox’s Bazaar just because they could not find a place to stay. So we want to use this opportunity to take advantage of on the situation and provide accommodation services that is going to be affordable for the tourists and local customers. The set up cost of the venture is low; we can take the prospect of cost leadership as well as profit seeker. The purpose of our business is to provide outdoor accommodation. In order to do so we need to have our own land but since it is very costly to have our own land, we decided to lease the land from the government.Currently to start the business we will take the lease a land which area is 3 bigha at Laboni point, Cox’s Bazaar. Our estimated budget is 30000000 taka. So we need to do the following activities to start the business: ? Lease the land. ? Land development ? Recruit Management employees ? Buying tents of various types – starting off with 60 tents ? Hiring security guards, helpers/care takers ? Chefs ,assistants & lifeguards ? Administrative officers in charge of supervision ? Equipment and utensils Logistics & other Developments Vision & Mission Vision Statement: Our vision is to promote and encourage outdoor activities for f amilies and friends and to become the number one camping resort in Bangladesh. Mission Statement: Customer satisfaction is our top priority and we want to make sure every customer that we will have will be satisfied with our products and services. We want to achieve this feat by providing top quality services by ensuring healthier environment, quality food items and spacious tents, outdoor activities within a much cheaper package. Market AnalysisAlthough marketing in tourism sector is competitive, the lifestyle changes created by modern living continue to fuel its steady growth. So competition in this particular sector is increasing day to day in perspective our country. Market segments: Here for our business we divide out market segment according to demographic segmentation that includes age, gender, income and social class. |Age: |Here we are targeting specially certain level of aged people like| | |children’s, teenagers, adults (18 – 45). |Gender: |Our products ar e purposeful for both male and female gender. | |Income level: |We will not provide such products which is not very much | | |luxurious as well as that not appeal directly to consumers on low| | |incomes.Such incomes level customers whom income level is | | |reasonably priced in terms of our products & services. | |Social Class: |For this portion we will choose specially upper and middle class | | |people. | Target Markets & Customers: The market for new camp product cover large area of diverse populated groups. Although it will locate in Laboni point near beach, it is an area where people travel and one that is also frequented by tourists.It is also an area known for and catering to the demographic group we are targeting. Here our target customers are Students, families and couples. So through this we categorize our customers up to certain segments: | |Students |Families |Couples | |Customer Characteristics |Limited buying power. |Affordable buying power. |Maximum level of buyin g power. | |Customer needs |Well accommodation facilities. Accommodation conveniences. |Better accommodation, safety and | | |Better and unique recreational |Tourism related facilities and |honeymoon related services. | | |activities. |Securities. | | |Customer buying decision | |Try to get minimum benefit at an |Try to get maximum level of benefits | | |Low cost products & services. |affordable price. |at an affordable price. |Competitive Analysis: â€Å"The new competition is not between what companies produce in their factories, but between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value. † An industry is the manufacturing of a good or service within a category. The New Camp is considering under tourism industry and it will be a medium size industry. This business is starting as a partnership or joint venture business.The main goal of th is business is to provide tourism related outdoor facilities for friends and families with in local & foreign tourists. As we are stating these sort of business for the first time in perspective of our country in a sense the market will be monopoly. But in other sense here there are lot hotels and motels providing almost same facilities so we can call the make as well as oligopoly. If we are going to start our business in Cox’s Bazaar for New camp there are many competitors specially the hotels.But primarily competitors are Hotel Sea Palace, Hotel Corel reef, Hotel Holy day and Sea Hill Guest House. Now individual analysis of each competitors is very complex because on might have one step ahead in one factor and another might have one step ahead in another on the other hand the total description of each competitors will be very lengthy. To make this analysis more fruitful we develop a table where the primary 4 competitor’s names are mentioned with some key factors. New Camp as a base for comparison, the table is given below: Name |New Camp |Hotel Sea Palace |Hotel Corel Reef |Hotel Holy Day |Sea Hill Guest | | |[pic] |[pic] |[pic] |[pic] |House | | | | | | |[pic] | | | | | | | | |Factors | | | | | | |Target customer |Middle, Upper class. | |Upper and Middle |Middle class |Middle- lower | | | |Upper-top Class |Class. | |class. | |Price Level |Comparatively Low |Too High |High |Medium |Low medium | |Specially For |Local & foreign tourists|Local & specially |Local and foreigners |Local tourists. Local peoples | | |with friends and family |foreigners. |with family | | | | |facility. | |facilities. | | | |Promotional |Website, Television |Website, Local |Website, Billboards. |Local newspapers. |unknown | |Activity |& newspaper |Newspaper, | | | | | |advertisement, Campaign,|Billboards. | | | | | |Billboard. | | | | | |Accommodation, Foods, |Accommodation, |Accommodation, |Only Accommodation |Accommodation. | | |Rest room with warm bath|Foods, GYM, Swi mming|Restaurants, Room |Facility. | | | |space, Party space, Camp|pools, Bill board. |service | | | |Products & |Fire, Outdoor Movie |Bar. | | | | |Services |theater etc. | | | | | |Distance from |Laboni point near beach. 1 km from beach |1 km from sea beach |2 km from beach |1 km from beach | |beach | | | | | | SWOT Analysis: SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. We are mentioning the SWOT analysis of new camp through a table, which will give a perfect view and in a glance all the factors can be analyze through this table: |SWOT analysis |Factors |Internal | |S (Strengths) |Ensuring quality product & services with all tourism facilities. | | |Online service facilities. | | |Affordable price within customer’s income level. | | |Administrative office locally and in the capital. | | |Providing service for both local and foreign tourists. | | |Psychological price (Ex. Tk 695). | |W (Weaknesses) |Lack of proper training, we are offering part -time jobs for some employees. | | |Target customer (especially middle and upper class people). |External | |O (Opportunities) |Public relations (Donation, allow part-time jobs for students). | | |Building image by organizing conferences in different districts. | | |Now consumers are aware of quality products & services and New camp can assures quality with 0 defect | | |policy. | |T (Threats) |Competitors – Hotels like Corel reef, Hotel Sea Palace. | | |Any natural calamities or disasters. | | |Government inconvenience. | | |Chances in price war with its close competitors. | Strategy:For the attraction and make it valuable to the potential customers we are going to follow two types of strategies according to Porters Gen eric strategies. One is Cost leadership strategies and another is Differentiation strategies. In the following how we can implement in our business are explain briefly: Cost leadership strategies: To make our product and services competitive among the competitors we will go for the cost leadership strategies. Companies that choose a cost-leadership strategy offer relatively standardised products with features or characteristics that are acceptable to customers in other words, with a minimum level of differentiation–at the lowest competitive price.This means that companies offer standardised products to an industry's typical customer. Customers receive value when a company successfully implements a cost leadership strategy. We are going implement this strategy by following Points: †¢ Building efficient-scale facilities. †¢ Establishing tight control of production and overhead costs. †¢ Minimising the costs of sales, product research and development, and service. Differentiation strategies: We will differentiate the products someway in order to compete successfully. Like for accommodation facilities we are proving tents that really differentiate from our close competitors. We are going to implement this strategy by following some aspects: ? By cost differentiation. Same product and service in diverse form. ? Providing exceptional services. Like all the facilities means products and services in one price. Services: Here we will divide our products and services into two portions one is regular basis and special. So the packages we are going to offer here we will count it as a special for the peak season and all other services for regular basis. Services: According to our business type we categorize our service into three types. They are Couples package, Family package and Friendly package. ? Couples package: Couples package is that tent for two people with other services. This package will cost 1500 taka per day with all services.Under this p ackage normally we will offer food for breakfast, lunch, dinner and other services like party places, rest room area etc. For this package in extra we will also provide 2 round free Jet Ski rides and free movie tickets. ? Family package: Family package is that tent for four to six people with related services. For this package we decide to take 2000 taka per day. Here we will provide all the services as usual with play ground for children and 1 BBQ dinner for whole family. But we will afford a service as bonus that is free movie tickets for outdoor movie theater. ? Friendly Package: Friendly package is that tent for six to eight people.In favor of this package we will come to a decision for the cost is 2300 taka per day by provides all the services. As we are going to start the business for the first time as a bonus here also we will provide some services that are free movie tickets, free Jet Ski rides for 2 rounds, free entry to one DJ party, 1 BBQ dinner free. Additional Services: ? Breakfast – Fruits, eggs, pancakes, bread and jam, fresh juices, cold drinks, and other beverages etc. ? Lunch – Fast foods like burgers, hotdogs, French fries, sandwiches/ Indian cuisine/ Bangladeshi cuisine. ? Dinner – BBQ/ Thai cuisine/ Chinese cuisine. ? Refreshments- tea, coffee, soft drinks, mineral water, fresh fruit juice.For the purpose of recreation and excitement we will make available some other services related with tourism. Other services are: †¢ Rest room area with swimming pool †¢ Camp fire †¢ Party Space †¢ Jet skis †¢ Children’s play ground †¢ Outdoor movie theater According to our product and services we are going to provide to fulfill the need of local and foreign tourist in Cox’s Bazaar during the peak season because it is difficult to get the room services and other facilities. As it’s a new business in perspective of Bangladesh completely a new experience for our countries people specia lly. Also able to accomplish all the purpose at a time they are living, recreation, low cost facilities and new experience in comparison to other providers.That’s how make our product competitive and unique. During this time in Cox’s Bazaar people have to pay only the room service in this amount what we are going to provide in our products with other services. So in that point of view by maintaining 30% profit margin in total and these products & services competitively it is healthy situation for us. In viewpoint of Bangladesh all the time it is pretty much difficult to get the license from government to lunch a business, also transportation problems and sometimes difficult to necessary materials too. So we are hoping to face these sorts of obstacles to start out business with these products and services. Marketing & SalesHere we target people as our customers mainly college & university student, families & couples, foreigners and In focusing on the unique aspect of ou r product & service theme and customer a mix of marketing vehicles will be created to convey our presence, our image and our massage. So in the following we are showing the mediums will be use to market our product: ? Print media: We will use print media as our first choice to implement the marketing of our product. As a print media we will go to use Newspapers, Magazines and Student publications. ? Broadcast media: We will broadcast local programming and interest shows as a promotional activity through television and radio advertisement. ? Web: We will build our own website with online booking systems; other details will include contact info, package and service info and price details. ? Trade shows: We will campaign in different universities and colleges in Bangladesh.Through which we can make our product and services notorious to people. ? Miscellaneous: We will use some other intermediates for the purpose of promotion like billboards, seminars, one to one sales and leaf lets. A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. For this purpose our budgeted cost will be 800000 Taka per year at the start. Sales Tactics: Selling and sales results are pretty clear cut: you get what you put into your sales efforts. If your employees are unhappy, or if you do little to sell your product, you’ll likely do just that: sell little of your product.So for the sales purpose of our product and service we develop the sales tactics through using the 4P of marketing. |Product: |As we are going to stat such a business that is related to tourism so our products & services are | | |designed such a way that is related to this particular industry. Most important as a tactic is the | | |things we will provide some products that are never before introduced in perspective of Bangladesh and | | |it varies from its primary competitors. So it is completely new and people will really appreciate to | | |take such initiative experience. |Place: |We will provide such facilities through our website and our administrative office they can easily make | | |sure their booking. So for these purpose we develop websites of our own and two administrative offices | | |in Dhaka as well as in Cox’s bazaar initially. | |Promotion: |For make our product aware we are using varieties of promotional activities that already motioned. We | | |will make sure known to all level of customers. | |Price: |We are going to offer such price which is really affordable for the customers in terms of locals and | | |foreigners too. That really differs from the particular competitors. | Promotion Mix:A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. So to make our product & service attractive we create the following promotional mix: |Types of Promotion |Explanation | |Advertising: |Here we are using non personal paid form of communication some sort of mass media like Radio, | | |Television and billboard. | |Public relations: |We will pay intimate stimulation of supply for a product & service by planting significant news | | |about it or a favorable presentation of it in the media.Like Newspaper, Magazines and Student | | |publications. | |Personal selling: |As we will selling our product one to one that is persuading one or more prospects to purchase a| | |good or service or to act on any idea through the use of an oral presentation. | |Sales promotion: |To market our product we will go for campaign in different educational institution that is Media| | |and non-media marketing communication are employed for a pre-determined, limited time to | | |increase consumer demand, stimulate market demand or improve product availability. |Internet marketing: |Also we will promote our products and services through our own website with contact info, | | |package and service info and price details. | Human R esource Plan: In contest of our business we have to operate a lot of activities to make our product & services available to the customers. To operate the whole business we need the following employees: |Post |Number of vacancy |Skills required |Roles & responsibilities |Education & experience | |Security guards |10 |Able to communicate well, |Providing safety & |Minimum class 8 with 1 year | | | |able deal with crowd people,|securities |experience. | | |must willing to work day or | | | | | |night shift. | | | |Chefs assistant |6 |Better communication |Helping cooking work , |Minimum education up to HSC | | | |abilities with customers. |serving & ordering food |with 1-2 year experience. | |Life guards |6 |Must have excellent oral and|Monitor the day-to-day |Job experience 2 years with | | | |written communication |operations of the beach, |minimum education up to HSC. | | |skills, must be familiar |Create a fun and socially | | | | |with sea beach program & |rewarding environment fo r | | | | |procedure |our Members and their Guests| | | | | |etc | | |Musicians |2 |Operate dJ instruments |Make a chill out parties. At least educated and | | | | | |experience 2-3 year | |Care takers |20 |Must have skill specially |Cleaning, maintenance and |Minimum education class 8 | | | |maintaining equipments. |other management | | | | | |responsibilities. | | We will advertise into particular print Medias like newspaper and monthly magazines to recruit these categories of people.For any particular post and job they have to contact in our administrative offices with necessary documents on HRM department. Customer service/ supports: For better customer service we will ensure some quality management that adds value to our products and services to satisfy our customers. In the following these points are given: ? We will give the customer satisfaction as top priority by providing quality products & services. ? Continuous improvement of our products and services ? Proper maintenanc e of play grounds, movie theaters, dance floors and toilets. ? Foods will be cooked with healthy oil. ? Securities and lifeguards will be available 24/7.Equipments: To support our potential customers we need following Tents, ovens, official furniture’s, large LCD monitor, umbrellas, Commercial Mt Rainier Structure, Spring Whale Spring Rider, Table 30†³ Magna Surface Mount, jet skies, swimming pool related equipments etc. Purchasing: As we have to provide all this products and services as package for customer satisfaction so to make it available all the purchasing items we will con tact or have agreement with particular suppliers. |Categories |Suppliers | |Raw food stuffs |Agora super shop, Chittagong |Development: In the terms of development we need to build up some infrastructure like swimming pool, party place with necessary equipments, rest room areas with well potential stuffs etc. Organization Structure Financial Data: Promoters Investment or Owners Equity is 12000 000 taka and total Contribution Margin 40%. Rest of the money will be apply for bank loan taka 18000000. In total 30000000 taka authorized capital. Estimated Projected list |Column1 |Column2 |Column3 |Column4 | |Lease for 3 years |10000000 |(Approximately) |41. 67% | |Land Development |1500000 |(Approximately) |6. 5% | |Fixed Setup |5000000 |(Approximately) |20. 83% | |Logistics |1000000 |(Approximately) |4. 17% | |Marketing Cost |1500000 |(Approximately) |6. 25% | |Modern Technology & |4000000 |(Approximately) |16. 67% | |machineries | | | | |Working Capital |1000000 |(Approximately) |4. 17% | |Total |24000000 | |100. 00% | Income Statement Column1 |Column2 |Column3 |Column4 | | |2012 |2013 |2014 | |Turnover: | | | | |Regular |21600000 |27540000 |31590000 | |Special |9800000 |11466000 |15750000 | |Net Turnover |31400000 |39006000 |47340000 | |Operating Expenses: | | | | |Stuff & employee Cost |6000000 |7000000 |8000000 | |Marketing Cost |800000 |700000 |600000 | |Maintenance Cost | 1000000 |1000000 |1000000 | |Accumulated Depreciation |835000 |835000 |835000 | |Rent Cost |3333333. 33 |3333333. 33 |3333333. 33 | |EBIT |19431666. 67 |26137666. 67 |33571666. 67 | |Financial Expences |9858192 |9858192 |9858192 | |EBT |9573474. 67 |16279474. 67 |23713474. 67 | |Tax Exp. 20%) |1914694. 934 |3255894. 934 |4742694. 934 | |Net Income |7658779. 736 |13023579. 74 |18970779. 74 | Notes: Turnover – Regular (500*270* Number of customers) Special (1500+2000+2300)* 90* (Number of customers) Break Even Analysis |Column1 |Column2 |Column3 |Column4 | | |2012 |2013 |2014 | |Net Turnover |21826525. 33 |22726525. 33 |23626525. 3 | |Operating Expenses: | | | | |Stuff Cost |6000000 |7000000 |8000000 | |Marketing Cost |800000 |700000 |600000 | |Maintenance Cost |1000000 |1000000 |1000000 | |Accumulated Depreciation |835000 |835000 |835000 | |Rent Cost |3333333. 33 |3333333. 33 |3333333. 33 | |EBIT |9858192 |9858192 |9858192 | |Financial Expenses |9858192 |9858192 |9858192 | |EB T |0 |0 |0 | |Tax Exp. |0 |0 |0 | |Net Income |0 |0 |0 | Conclusion:If we are able to successfully set up this business, we believe we could bring an exciting change and make tourism in Bangladesh Cox’s Bazaar more fun and interesting. We want our potential customers to have the utmost fun and make sure they check out of The New Camp with a smile in their face. This is just the start of our new adventure and we want to add more features like a shelter booth for our customers during storms and disasters and attractions like paragliding and scuba diving. Appended Part: NOTES ? Monopoly: A monopoly is a market condition in which a single seller controls the entire output of a particular good or service. A firm is a monopoly if it is the sole seller of its product and if its product has no close substitutes. Oligopoly: An oligopoly is a market condition in which a firm is doing business not with the same product and service like your business but those products & services serve t he same purpose similar to your product. ? Psychological price: Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as â€Å"odd prices†: a little less than a round number, e. g. 19. 99 Taka. REFERENCES ? Joseph T. Straub & Raymond F. Attner, 2006, Introduction to Business, 2nd edition, Kent Publishing Company, Boston, Massachusetts, USA. ? Philip Kotler & Kevin Lane Keller, 2006, Marketing Management, 12th edition, Prentice – Hall of India Private Limited, New Delhi. ? William J.Stevenson, 2005, Operations Management, 8th edition, McGraw Hill Companies Inc, Avenues of Americas, New York, USA. ? James C. Van Horne & John M Wachowicz JR, 2001, Fundamentals of Financial Management, 12th edition, Prentice Hall Inc Financial times, Edinburg Gate, Harlow Essex, England. ? Fred R. David, 2009, Strategic Management Concepts & Cases, 12th edition, Prentice †“ Hall of India Private Limited, New Delhi. [pic] ———————– Chairman Vice Chairperson Vice Chairman Director Director Director Managing Director Deputy Managing Director Deputy Managing Director Manager (management) Operation Administration Accounting & Finance Marketing