rural tourism venture business plan final.pptx

7/23/2019 RURAL TOURISM VENTURE BUSINESS PLAN FINAL.pptx

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WELCOMETO THE LAND OF

BACKWATERS FESTIVALS& HISTORY


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The story of Kerala is bound to itsculture, diversity, heritage, villages,

traditions and the people.

With naturally blessed resources,attractions and climate, Kerala isdeemed as a tourist haven.

To bring about the best of Keralathrough a startup venture, KNOWKERAA puts for!ard a customi"ablepac#age based campaign !hich !illsho!case the best of Kerala$s rural

atmosphere in its most pristine form tothe tourists.

Thus, in simple !ords, !e are apremium rural tourism provider !ith anedge for %uality, culture and delivery ofe&periences.

INTRODUCTION

KNOWKERALA


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PRIMARY SERVICE

'ost tourism providers focus on thebac#!aters or the hill stations orbeaches. Our business venture

capitali"es on the e&istence of villagesand their potential.

The business is a service(orientedestablishment that shall provide

tourism pac#ages in and around )ai#omtalu# in Kerala.

The ma*or service !ill be customi"ed

rural pac#ages for the customers. Theseac#a es shall include their


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+econdary +ervice

interaction !ith the natives,promotion of eco(tourism along!ith village tourism etc.Above all, the company !ishesto generate more *obs for thelocal people !ho can act as

guides, drivers, homestayproviders, coo#s, translators etc.We consider this as a mutuallybenecial scheme bet!een thesociety and the company.

The secondary range of services include the facility forthe customers to participate in the local cottage industries,training them to ma#e local dishes, helping them to ndother attractions !ithin the state-country, provision ofe&tended pac#ages, tic#eting and pic# up services,


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+ervice ife ycleThe life cycle shall sho! gradualdevelopment in the rst t!o years for brand

establishment, mar#et orientation etc.

The third year shall sho! gro!th from theestablished brand base and this !ill be seento be faster, both in terms of monetarybenets and company development. Oncethis gro!th starts, then more and more ruralareas !ill be identied and innovativelydesigned programs shall be underta#en to

diversify the business.

The services rendered !ill have enteredinto a more mature stage and constant

diversication and development shall #eepthe service from saturation.


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he 'ar#et

/. Market Size an Str!"t!re#The mar#et si"e !ill be a portion of theNon(Keralites visiting Kerala. This portion!ill depend entirely on the mar#etinge0orts of the company. The mar#etstructure in tourism !ill be an oligopsonicstructure !ith many providers servinglesser number of customers. 1ut !ithin theselected niche and destination, thestructure can be seen as oligopolistic.

2. Tar$et Market%#The target mar#ets !ill consist of Non(Keralites customer base !ho areinterested e&tensively in the cultural

heritage and #no!ing the real essence ofthe Kerala countryside.

3. Market Canne'%#The mar#et channel !ill be direct to

customer techni%ue as !e are directservice providers. This direct service !ill


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SWOT Ana'(%i%

WEAKNESSES#

/. ate mover in the tourism industry.

2. Already established companies may have putfor!ard entry barriers.

3. ac# of developed infrastructure in the stateand region.

4. 'ar#eting needs to be done outside the region.

STREN)THS#/. The company !ill have strongindustry tie(ups.

2. +trong and e&perienced!or#force !ill be used.3. +tate(of(the(art pac#ages andservices.


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WOT Ana'(%i%OPPORTUNITIES#

/. )ai#om is a strategically locatedtourist destination !here the tourismbusiness is bound to reap success.

2. Ne! providers of di0erent services are

emerging !hich implies moreopportunities and pac#age possibilitiesto tourism providers.

THREATS#

/. egal Ris#s forestablishment.2.ompetition can becomestronger and maybepositioned economically

!hich may reduce our


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MARKET POSITIONIN) ANDFUTURE )ROWTH PROSPECTS

/. MARKET POSITIONIN)#

The business shall position itself in the %uality(providing sector,and above the economy range of services. The service shall

render the best in class in services !ith a demanded premium.

5ence the image of the company shall be on a higher scalethan the average tourism providers.

2. FUTURE )ROWTH PROSPECTS#

6ro!th of the business !ill refer to geographic e&pansion,

e&pansion in services and o0erings. Within the second year ofrunning, the company shall loo# for!ard to anchor itself in thecurrent mar#et and shortlist other prospective rural tourismlocations !here !e can capitali"e upon the opportunities

available.


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ompetition andompetitive Ris# Analysis

E+ISTIN) COMPETITION ARE OF THREE KINDS#

o /. 5otel hains-5ome stays providing services7 The competition fromsuch providers are of a higher concern because, they are alreadyestablished and !ill have support from the local community. Thisendangers our position as a ne! entrant into the eld.

o 2. Tourism 8roviders7 These !ill act as direct competitors to us. 1ydesigning and delivering similar services to ours, they !ill give a highcompetition in mar#eting and establishing.

o 3. KT9 : Allies7 The +tate o!ned KT9 has the deepest reach in thetourism business. Although not e&tremely aggressive, their capitalinvestment and resources are of high importance. 'oreover they o!nseveral properties, monuments etc. managed by the state such as the;1olghatty 8alace< at ochin. 5ence, they are parallel providers !ho are

not direct competitors to us, but by providing certain services, they canbe vie!ed as our competitors.


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1=+>NE++ 9E)EO8'ENTA. Strategy for identifying and marketing market segments:

The enterprise shall identify customers !ho are in need of a customi"able,

need based, %uality, entertaining and educational travel pac#ages !ith anassured level of satisfaction. The venture focuses primarily on a middleupper class to higher level tourists !ho are !illing to pay a premium for%uality service. The assurance is very !ell maintained and served aspromised.

B. Market Penetration and development strategy:

Tourism mar#et develops through the increase in identied spots,governmental norms and innovation in services. We !ould focus onidentication of destinations !here !e can do business. +ince it is villagebased tourism, locals of the identied areas !ill be associated !ith ourcompany. As the business mar#ets itself !ithin the village, a locallyestablished support can be gained.

This !ill avert competition to an e&tent as the rst mover in thedestination being us. The other strategy is mar#eting the ethnic culture tothe outside !orld and e&posure of the countryside to outsiders. These

uni%ue services and other pac#age(based services !ill help establishourselves in the mar#et. 'oreover, !e$ll establish tie(ups !ith hotels and


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1=+>NE++ E@8AN+>ON

a. Location Expansion

Our company has pro*ected e&tending our services to destinationsother than )ai#om. urther number of villages-areas !ill beresearched upon and !ill be tapped after a feasibility study.

b. Services Expansion

The business shall increase the number of services it provides afterevery nancial %uarter based on the current trends. The company!ill ta#e e&perience based previe!s and innovate ne! pac#ages,services and facilities accordingly priced, to its valued customers.

c. Increase in apital Investment!Asset B"ying

The inception stage of our business !ill !or# !ith most secondaryactivities being outsourced to e&ternal parties based on contracts.As time passes and the company establishes itself in the mar#et,validating its brand image, !e shall loo# for!ard to buying upassets such as home(stays and vehicles so as to become a selfsustained tourism provider in the region.


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'ar#eting +trategy

Our core activity being mar#eting, a good percentage of our capital shall beemployed for the same. 'ar#eting shall be four folded7

i. >nternet mar#eting 7 Through +ocial net!or#s, Through !eb pages and travelsites such as ;tripadvisor.com


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1usiness 8romotion+trategy

As discussed before, the business shall be promotede&tensively through the internet, travel maga"ines,natives-local providers and !ith a strategic tie(up !ith hotelchains.

9uring the inception, !e shall provide pac#ages !ith freeadd(ons giving more benet for the customer$s money. Wedo not position ourselves by giving discounts, instead, !e

!ish to create a value added service image to the customerbase. 'oreover, !e !or# on the principle of ;A satisedcustomer is a silent advertisement


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+ales +trategy

+ales !ill be preceded, accompanied and succeeded byour mar#eting e0orts. The brand shall try to establishitself in the mar#et !ell in advance of the productlaunch assuring customers from the very beginning.

+ales shall follo! the philosophy of money for %ualityand assurance. Each and every pac#age delivery !ill bemade sure to address every tiny need of the customergiving them ultimate satisfaction at every step.

The customer oriented business philosophy shall resultin the sales directed for a longer period of time.


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Niche Area :

Revenue 'odel

lass and %uality sets us apart from any other tourism brandavailable in the mar#et. Our pac#ages are set in the mostinnovative, time saving manner so that customers reap the best fortheir money spent. A fully responsible management of tourists isour benchmar#. The companies that !e outsource to are al!ays in

chec# by our o!n professionals and hence ma#e sure that thetourists are assured of safety and comfort.

REVENUE MODEL7

The company !ill establish a price relationship !ith DF advancefrom its customers and DF on arrival. The pac#ages designed !illhave at least 2DF margin per pac#age. The revenue generatedshall be used to meet the costs incurred rst. The payment of duesshall !or# on the basis of 3 days(G days credit payment in thecase of credit. The revenue generation shall also happen in case ofalliances formed !ith hotels or home stays. A premium price !ill becharged and the margin shall be divided in a ratio bet!een the


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'ar#et Alliances

MARKET ALLIANCES &ASSOCIATIONS:

Our business e&tensively uses outsourcing for its operations.Thus, !e e&pect alliances to be formed bet!een7

a. Transport providers-ta&i agencies-pic#up services etc. b. 5ome stays for accommodation of tourists.

c. Authentic cuisine providers such as restaurants, toddybased

restaurants etc.

d. 5otel hains so as to assure customers for both parties. e. ocal support by employing after training the natives.

f. ottage industries

g. 8erforming Arts clubs-associations-developing boards.


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ompetition-+ubstitute +trategy :Huality Accreditations

1ased on the analysis of the competition in the niche, thestrategies adopted for meeting the competitive barriers !illbe di0erent. +ince !e !ould have established long termcontract based relationships !ith hotels and other entities inthe industry, !e !ill have an advantage of establishedindustry lin#ages. Every alliance !ill be contract based and!ill include clauses dening the relationships.

,UALITY ACCREDITATIONS#

After establishing ourselves in the mar#et and commencingour operations, !e !ish to introduce a uni%ue pac#age servicetermed as ;Kno! Kerala ampaign< !hich !ill be an e&tensivepac#age based on e&periencing the very best Kerala has too0er. This !ill act as a Iagship service of the business and !illbe trademar#ed-registered after its introduction. 'oreover,

after e&panding ourselves into another region, !e !ish to loo#into >+> accreditation for ualit !hich !ill reinforce our brand


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Ris#s in the 1usiness

Entry barriers established by competition

ost based competition

Operational Ris#

Environmental Ris# inancial Ris#

egal Ris#

Outsourcing Ris#

Kno!ledge 1ased Ris#


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5uman Resources

1oard Of 9irectors -E.!a''( Sarin$ /01 23 Ca4ita'5 De6t5 Pr27t &L2%%8

Abhay +ingh 8arihar

Augustin 9sou"a

1idhu 'ishra

Jeshin 8

Advisory 8anel#

egal Advisor7 We !ill appoint an ocial legal advisor !ho can assist usin the legal formation, general legal activities : guide us through theroutine legal proceedings : establishment.

>ndustry advisor : 'entor7 Mr.$oopes% &'aikom (o"rism Promotiono"ncil). As an e&perienced professional in the tourism industry,particularly in the )ai#om area our mentor !ill guide us through thedi0erent phases of our organi"ations establishment : its businessprocess design.


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1OAR9 O 9>RETOR+

CMO

Marketing Manager

Advertisment & Promotion Executives Sales Executives Customer Care Executives

CFO

Budgeting Officer Acoounts Assiststant

Accounts Manager Payroll Treasurer Purcasing executives

COO

Security & Safety Officer Food & Safety Officer

Trans!ort & "esources Manager Programme & Services Managers#x$%

" 'irector

" Manager Trainers( )uides(

'rivers( Oter *orking Personnel


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>NANE9: MEANS OF FINANCE#

The nancing of the company shall primarily be based onpersonal funds. The capital !ill be e%ually shared amongthe four directors !ith 2DF sta#e in the business for each ofthe investors. There shall be a loan availed for the purchaseof a vehicle in the rst year.

/: CAPITAL STRUCTURE#

The company shall function based on the o!ned funds.

Total O!ned unds7 Rs./2

8ercentage of share per investor7 2DF B Rs. 3C

8ercentage of prot-loss share7 2DF per investor. A company vehicle shall be ac%uired using a loan from a

nationali"ed ban#.

Total borro!ed funds7 Rs. D

Total >nterest for D years7 Rs. /


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1AANE +5EET 8ROJET>ON OR DLEAR+


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E&it 8lan

>f in the future, there comes a scenario !herein thecompany cannot sustain itself due to e&treme competition,lac# of funds, lac# of returns, employee turnover or threatsin the mar#et, the follo!ing e&it plan !ill be adopted7

ollo!ing initial retrenchment plans by cutting costs andreducing the number of non(critical employees, thecompany shall resort to either a merger agreement or beac%uired by another provider. The e&it plan !ill be e&ecutedonly if the company is assured that by no feasible meanscan the business be carried for!ard protably.

The company !ill negotiate for the best mutual benets inthe case of a merger. The established contract !ill put do!nthe essential re%uirements by the rm such as maintainingits Iagship campaign under the brand name etc.


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T5ANK LO=

rural tourism venture business plan final.pptx

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