ContentsAbout Bungee2History of Bungee2Highest in the world2Some famous bungees4Popular bungee taglines5Analysis of The Last Resort6Background6Rates of the bungee67ps followed by TLR7Commission for agents8Marketing channels9Highground Bungee10What we know so far?10Pricing10Market as? Extreme or not?10Competition analysis10Comparison with other similar 80m bungee11Channels for marketing?12SWOT of HGAN Bungee12Strategies12

About BungeeHistory of BungeeBungee jumping is a recreational sport in which a participant jumps from a high bridge, building, etc., secured only by a rubber cord attached to the ankles so that the body springs back just short of hitting the ground or water. Typically, bungee jumping involves leaping from jumping points that are several hundred feet or meters high. The elastic cord used in this activity is designed to stretch during the jumper's fall and snap back up repeatedly. This causes the jumper to bounce up and down over the length of the jumping area until the energy from the jump has been depleted.

The first modern bungee jumps were made on 1 April 1979 from the 250-foot (76m) Clifton Suspension Bridge in Bristol, by members of the Oxford University Dangerous Sports Club. Organized commercial bungee jumping began with the New Zealander, A J Hackett, who made his first jump from Aucklands Greenhithe Bridge in 1986.

Highest in the worldRoyal Gorge Suspension Bridge, USA

The highest bungee in the world is the SkyCoaster located at Royal Gorge Suspension Bridge, USA. It has a vertical drop of 1053 ft (321m). One to three people can be harnessed in per ride. Riders can reach speeds of up to 50mph. It opened in 2003. However the bridge has been closed down for repairs and so the bungee is not operating at present.

Macau Tower, China 764 ft (233 m)

Macau Tower Convention & Entertainment, also known as Macau Tower, is a tower located in the Special Administrative Region of the Peoples Republic of China. The tower measures 338 m (1,109ft) in height from ground level to the highest point. It offers the best view of Macau and in recent years has been used for a variety of adventurous activities. At 233 meters, the Macau Tower's tethered "skyjump" and Bungee jump by AJ Hackett from the tower's outer rim, is the second highest commercial skyjump in the world, after Vegas' Stratosphere skyjump at 260 meters.

Some famous bungees

1. Stratosphere Skyjump, Las Vegas -- 829 ft (253 m) SkyJump Las Vegas holds the Guinness World Record for highest commercial decelerator descent with an official height of 829ft (253m) and is located at Stratosphere Las Vegas. SkyJump Las Vegas is a controlled decelerator descent. Riders of SkyJump Las Vegas are given a short safety lesson and suited up in a Stratosphere custom jump suit. The rider is then connected to a patented high-speed descender machine and led to the edge of a small platform where they will leap out and descend the Stratosphere Tower. The effect is similar to bungee jumping. Guide wires keep riders from straying off course. Just prior to reaching the rapidly approaching ground, the machine slows the rider down, bringing them to a controlled landing.

2. Golden Eye Bungee, Val Verzasca, Switzerland 721 ft (220 m)

It is also called the 007 jump. It was made famous after Pierce Brosnan did a jump from the Verzasca Dam as the opening scene in the James Bond 007 movie GoldenEye. The jump lasts 7.5 seconds, as the height of the dam is 220m. The jumping station is in the middle of the dam wall.

3. Bloukrans Bridge, South Africa - 710 ft (216 m)Bloukrans Bridge Bungee is located at 709ft (216m) above the Bloukrans River. The Bloukrans Bungee is the worlds highest commercial bungee bridge. They have enjoyed a 100% safety record ever since their establishment in 1990. They have played host to the likes of Prince Harry, Jack Osbourne, Thabk Mbeki, The Zuma family, KellySlater, Andy Irons, The Amazing Race,and many more famous and not so famous visitors.

Popular bungee taglines

Analysis of The Last ResortBackgroundIt was founded in 1999. The company built a 160-meter high suspension bridge as the entrance to the resort to link up a remote area with the Kathmandu-Lhasa road. The resort is a three hour ride from Kathmandu and is located on top of a gorge close to the Tibetan border. They offer bungee, canyon swing, high ropes, hidden canyons and a host of other activities.

Rates of the bungee

Nepali Bungy or swing day trip NPR 4200Bungy & swing day trip NPR 6800Bungy or swing only NPR 3500Relax & Bungy or swing (1 night) NPR 6500

Foreigner Bungy or swing day trip 75 Euro sBungy & swing day trip 95 EurosBungy or swing only 30 EurosRelax & Bungy or swing (1 night) 95 Euros

SAARC CountriesBungy or swing day trip NPR 6500Bungy & swing day trip NPR 8000Bungy or swing only NPR 5500Relax & Bungy or swing (1 night) NPR 8500

(All the rates mentioned are per person. The day trips include transport and lunch. Overnight packages include transport, accommodation and all meals.) Operational dates (Season/Off season) No of clients handled everyday

7ps followed by TLRProduct Bungy Nepal Canyon Swing High Ropes Hidden Canyons Provides tailor-made courses in professional development and team building. Organizes school programs, family activities, corporate programs, events and workshops.

Price Nepali NPR 3500 (jump only) NPR 4200 (including transportation and lunch) Foreigner 75 euros

PlaceThe resort is a three hour ride from Kathmandu and is located on top of a gorge close to the Tibetan border.

Promotion Maximum promotion through agencies Flyers/posters Advertisement in ECS magazines and other tourism related magazines Facebook page Very attractive and user friendly website Posters in various restaurants around Kathmandu They have recently started taking part in the international travel marts They organize events throughout the year like the Sundance festival. They are aggressively marketing in the corporate sector for teambuilding.

People More than 80 staffs including at Bhotekoshi and Thamel. They have used the local manpower in Bhotekoshi.

Physical evidenceTheir sales office in Thamel. All the staff members of The Last Resort wear shirts branded with their company logo.

The Last Resort itself is a very attractive site located 12 km from the Tibetan border. They provide luxurious tents for those clients who wish to stay the night. They also have a well stocked bar, Karma bar. They have a swimming pool and sauna facility as well.

ProcessThe process followed by The Last Resort is simple. They pick up their clients from their sales office in Thamel, take them to the resort on their own vehicle, the clients spend some time at the resort, do the jump, have lunch and finally drop off at Thamel. This entire process is a daylong activity as the drive to the resort itself is three hours long. Here clients can also choose to spend a night at the resort. They have a package for one day activity and for overnight activity as well.

Commission for agentsStandard 10% for all agents. Different for Israeli clients. Marketing channelsWebsiteFacebookPosters in restaurants across Kathmandu

Highground BungeeWhat we know so far? HighGround bungee will have a drop of 80m. It will be located in Hemja, about half hour drive from Lakeside, Pokhara. We have a target opening date of September, 2013.

PricingAfter much discussion we have decided to recommend the pricing of our bungee as NPR 3000 for Nepalese. The Last Resort has prices of NPR 4200 for the Nepali people which includes transportation and lunch. As we saw from our experience with ZipFlyer Nepal, we had a surge of Nepali clients after reducing our rates to NPR 2500. We do not want to make the same mistake and keep revising our rates multiple times in a year. Our bungee (80m) is less extreme than Bungy Nepal (160m) and we will not be providing lunch as well so NPR 3000 seems reasonable.

Market as? Extreme or not?Since we are going to advertise our Zipline as an eco adventure we should market out bungee as an extreme sport. This way HighGround will have something to offer everyone. HighGround bungee for the adrenaline junkies and thrill seekers and ZipFlyer for those who enjoy a little less extreme sport.

Competition analysisThe main competitor for HighGround bungee is Bungee Nepal by The Last Resort. They have been operating for the last ten years and have a strong foothold in the industry. However one major point in our favor is that HighGround bungee will be located in Pokhara, the most famous destination for all the tourists arriving in Nepal.

Comparison with other similar 80m bungee

1. Corinth Canal, Greece 260 ft (79 m)Zulu Bungee is located in Greece with the length on 79m, they have had 70,000 clients from all over the world, ever since they were established in 1991. Their price for the jump is 60euro and 10euro for the jump in DVD.

2. Colorado River, Costa Rica 279 ft (85 m)Tropical Bungeeoffers bungee jumping since 1991. We are located in the Old Colorado River Bridge, it is 265 feet high, making it one of the highest bungee bridges in America. Tropical Bungeeis NABA certified to manufacture bungee cords. They dont have an age limit, the young jumper that they have received has been of 4 years old and their oldest jumper has been 80 years old. Their first jump costs $75, scond jump is $45 and transportation is free. Non-jumpers who come just for the ride pay $10 for transportation.

3. AltaVila Tower, Brasil/BH 233 ft (71 m)AltaVila is located in Brasil, their bungee is 71m in length. The price of their jump is $70.

4. Graskop Gorge, South Africa 197 ft/262 ft (60 m/80 m)Graskop located in South Africa is 1400m above sea level, its bungee length is 60m/80m

5. Longqing Gorge Bungee, China 164 ft ( 50m )Eighty kilometers north of Beijing lies Longqing Gorge Scenic Area,it is possible to bungee jump from a 58-metre-high platform. This jump roughly costs $20 each.

Channels for marketing?

3. SWOT AnalysisStrengthsWeaknesses

Well be located in Pokhara Itll be located amidst the beautiful nature, best views and clean environment No other bungees in Pokhara Hemja is close from Pokhara, just a half hour drive. Well market it as an eco adventure, the latest tourism trend We have zip line as a supportive activity, so could come up with various packages Well have a cost advantage over the Bungee Nepal

HighGround Bungee is not as extreme as Bungy Nepal We do not yet have skilled manpower for the job. Dont have much knowledge about its operations process Management difficulties

OpportunitiesThreats

Pokhara is a tourist hub. More than 70% of the trekkers choose ACAP for the trekking and Pokhara is the gateway. Since we will be the first bungee in Pokhara we have a considerable advantage of being leaders in the field in Pokhara before any other competitors crop up. The agencies and hotels in Pokhara are very co-operative and supportive . The location of the bungee is very ideal to market it as an eco-adventure. , there are frequent inquiries about the bungee in Pokhara, so it is in demand The bungee is a very popular activity in Nepal. HGA is initiating in social and environmental responsibilities which will create good impact on the companys reputation leading to the affect on sales of the product. Technological advances can be used to advantage Changing consumer wants Competition (Bungee Nepal, The last resort and the paragliding companies in Pokhara) There are talks about other new bungees coming up. Possibilities of natural disasters Political issues Changing consumer wants

4. Target MarketGeographic SegmentationThe primary target market for the HGA bungee jumping would definitely be British, Americans and Europeans. The westerners are more into adventure activities. British, Americans, French, and Germans are the most important visitors in Nepal after India and China. Israelis are also the biggest potential target for the extreme adventure. Recently, there has been huge increase in Indian and Chinese tourists in Nepal. The recent trend indicates that the Indians and Chinese are also inclined towards adventure activities. Besides, the domestic people are also huge potential clients as more people are doing adventure stuffs at present.Psychographic SegmentationThe psychographics of the primary target market for the HGA bungee jumping experience are younger extroverted people with an enthusiastic, energetic, adventurous, and youthful attitude towards life. Further, the primary target market generally enjoys outdoor and high excitement/ exhilarating activities that provide them with a rush of enjoyment and fun.,Behaviouristic SegmentationThe primary target market for the HGA bungee jumping experience is seeking for an affordable yet extremely exciting, entertaining, and fun outdoor activity. In addition, this target market is looking to enjoy a unique and special outdoor activity that they can share with the people they socialize with such as friends and families. Further, our younger target market is somewhat price conscious as they dont have much money to invest in these kinds of activities. Demographic SegmentationThe primary target market for the HGA bungee jumping experience is young, energetic and enthusiasts. Basically age group between18-35 is more interested in these kinds of extreme adventures. Surprisingly, the data from the bungee Nepal indicates that, the people over 40 are also doing this adventure in great number. That means we have wide range of age groups to target for promoting our bungee.

6. Strategic Marketing Plan:This Section outlines the major strategies in the marketing mix that HGA will be using in pursuit of this new venture.Product StrategyHGA bungee is an outdoor bungee jumping service that allows you to witness the natural beauty of Hemja, the beautiful Yamdi river with the breath taking views of majestic mountain ranges while experiencing a high-thrills and adventure. The product elements are as follows:

LayerDescription

Core HGA bungee is a tourism product; it is a leisure activity that provides entertainment and adventure for people all over the world.

ActualAn extreme adventure involving harnessed customers to jump from a engineered platform overtop the Yamdi River at Hemja,Pokhara supervised by trained professionals

AugmentedHGA bungee will offer professional photography accessibility, gift shop and food service, certificate of accomplishment, membership, etc.

BrandingBranding is an important aspect in todays marketing. HGA bungee plans to encourage brand loyalty with our customers by offering unparalleled quality and consistency throughout our service. Effective branding definitely helps to boost the sales of the product. The branding of the Zip-Flyer Nepal is good and we need to work hard for the better branding of HGA bungee.

Pricing StrategyPricing is also a critical aspect of marketing strategy. HGA bungee should have variety of prices based on seasonality like season/off season price. There should be different prices for Nepali, SAARC and Europeans. And there should be special price for the students as these youngsters are the most potential clients but they dont have enough money to spend.Pricing strategy example: Nepali SAARC Foreigners Studnets (Nepali)Season price Rs 2800 Rs 3500 Rs 5000 Rs 2500 Off season price Rs 2500 Rs 3000 Rs 4500 Rs 2200

Pricing of Picture Cds and videos should also be strategically determined.

Place Distribution/Marketing channels1. HGA uses a direct marketing channel, this means that the service shall be provided by few outlets of HGA which includes the corporate office, Thamel office and Lakeside office. Thamel and Lakeside office are important for direct sales as these places are important tourist hub of Nepal.1. HGA will sell the products through various travel agencies, hotels and other mediums from Kathmandu and Pokhara.1. The bookings can also be made through personal contacts with the authorized staffs in case of urgency.1. For the additional photography and a video feature, the marketing channel is straight from producer to the consumer. The CDs with both photo and video will be produced and sold on the adventure site.Strategies

Target Segmentation like focusing on Europeans, Israelis as they are more into the adventure stuffs and special planning for the upcoming big markets like China, India and some other Asian markets. Need to come up with the best combo packages at a competitive price. Its evident that price is an important factor. Promotion through various printed materials like brochures, leaflets, posters etc. It would be more effective, if we could include zip-flyer and the bungee in the same with appealing design. The last resort has already marketed the bungee Nepal as an extreme adventure, so we need to be different. For instance, we can use the words like the thrilling and exciting experience amidst the nature or jump in the adventure and enjoy the thrilling moments amidst the nature and similar. Need to make wise decisions while selecting the merchandises. For instance, the Zip-Flyer T-shirt is a big hit whereas mug didnt do well. Need to strategically market the location as the beautiful location that offers a true encounter with nature for everyone. We are marketing it as an eco-adventure so the people need to sense it. It should be the opportunity for them to cherish the beauty of nature, they should enjoy the greenery around and also the local culture is an important part of the eco-tourism. We need to work on marketing this special combination to make it a place with a heart. Whether you are an individual nature lover, a romantic couple or a happy family, our eco-adventure is valuable for all. HGA offers unique thrilling experiences to be shared together with your wonderful family. The staff welcomes you in what feels like a more authentic gentleness and freshness than in other tourist destinations. They are keen to share with you their habitat, culture and vast knowledge of nature. 100%safety ensured by high skilled and professionally certified installations. The adventure activities are built with full respect of the nature and trees. Since, the company has good number of local empowerment, our warm hearted staffs will be more than happy to assist you throughout your adventure tour and guide you with all the information about the locality, culture and nature. The organization is very aware of the need for preserving the local culture and environment. We need to strategically market the CSR in the companys favor. Many existing companies are utilizing their CSR as an advantage. The last resort also follows this strategy.

Strategies for targeting students

Marketing activities Special presentations in tourism colleges so that we can attract them and utilize their networks for further promotion Presentations/ kiosk set up in colleges Promotion through students scheme posters Forming certain package for the students at minimal costs, we can co-ordinate with some agents for this purpose.

Offers & Schemes Student discounts Group discounts vacation offers & schemes Complementary pictures with the rides etc. Discount on souvenirs and packages